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DEFINITION OF
GLOBALIZATIO
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CAMALLERE , DANELYN BSCE 1-B

What is GLOBALIZATION?
 Globalization is a term used to describe
the changes in socities and the world
economy that are the result of dramatically
increased trade and cultural exchange. In
specifically economic contexts, it refers
almost exclusively to the effects of trade,
particularly trade liberalization or “free
trade”.
GLOBALIZATION
 In business, the term globalization is
often used in an economic context to
describe an integrated economy
marked by free trade, the free flow of
capital and corporate use of foreign
labor markets to maximize returns
and benefit the common good.
HOW Globalization works:
 Globalization is driven by the convergence
of political, cultural and economic systems
that ultimately promote ---and often
necessitate ---increased interaction,
integration and dependency amongst
nations.
 The more that disparate regions of the

world become intertwined politically,

culturally and economically, the more the
globalized the world becomes.
 These international interactions and
dependencies are enabled and
accelerated by advances in technology,
especially in transportation and
telecommunications. In general, money,
technology, materials and even people
flow more swiftly across national
boundaries today than they ever have in
the past. The flow of knowledge, ideas
and cultures is expediated through
internet communications.
Three types of
GLOBALIZATION:
 ECONOMIC GLOBALIZATION- this type focuses on
the unification and integration of international financial
markets, as well as multinational corporations that
have a significant influence on international markets.
 POLITICAL GLOBALIZATION- this type deals mainly
with policies designed to facilitate international trade
and commerce. It also deals with the institutions that
implement these policies, which can include national
governments as well as international institutions, such
as the International Monetary Fund and the World
Trade Organization.
 CULTURAL GLOBALIZATION- this type
focuses on the social factors that cause
cultures to converge– such as increased
ease of communication and
transportation, brought about by
technology.
•It’s important to note that all the types
influence each other. For example,
economic globalization is made possible
by certain liberal trade policies that fall
under the category of political
globalization. Cultural globalization is also
affected by policies passed in political
globalization and is affected by policies
passed in political globalization and is
Effects of GLOBALIZATION:
The effects of each type of globalization can be felt both
locally and globally, and can be observed in interactions
at every level of society, from an individual at the micro
level to a society at the macro level.
The individual level includes the way of international
influence affects ordinary people within a nation or region.
The community level includes effects to local or regional
organizations, businesses and economies.
The institutional level includes effects to multinational
corporations, national governments and higher education
institutions that have international students. At this level,
decisions are made at that affect the lower levels.
Advantages of
GLOBALIZATION
 Proponents of globalization argue that it can solve
fundamental problems with the global economy,
such as poverty and unemployment, by promoting
a free market that benefits rich and poor nations
alike.
 Free trade aims to reduce the amount of trade
barriers between nations. A trade barrier is any
imposed restriction on international, including
tariffs and subsidies. This consequently promotes
economic growth, creates job, makes companies
more competitive and lowers prices for consumers.
 It also theoritically gives
poorer countries an
opportunity for economic
development throug
exposure to foreign capital
and tech, resulting in
conditions that foster an
improved standard of
Disadvantages of
GLOBALIZATION:
 The biggest advantages of globalization are also its
biggest disadvantages. While many proponents
view globalization as an avenue for solving cire
economic problems, critics see it as worsening
global inequality.
 For instance, while some proponents say
globalization creates new markets and wealth – and
promotes greater cultural and social integration by
eliminating barriers – critics blame the elimination
of barriers for undermining national policies and
cultures and destabilizing advanced labor markets
in favor of lower-cost wages elsewhere.
 Similarly, some proponents point to
the rising economies of poor
countries benefiting from companies
moving operations there to minimize
costs. Meanwhile, some critics say
such moves could lower living
standards in developed countries by
eliminating jobs.
 While proponents focus on the
increased trade benefits and political
cooperation that come from a united
global economy, critics acknowledge
that tightly integrated global