The Contemporary World

GLOBALIZATION
What is 'Globalization'?
• It is a process of interaction and integration among t
he people, companies and governments of different
nations, a procesd driven by international trade and
investments and aided by information technology.

• Globalization can be also be defined as the free mov

ement of goods, services and people across the worl
d in seamless and integrated manner.

• It makes the world more accessible to everyone.

• World Health Organization define globaliz
ation, is generally understood to include tw
o inter-related elements:
1. the opening of international borders to inc
reasingly fast flows of goods, services, fina
nce, people and ideas.
2. the changes in institutions and policies at
national and international levels that facili
tate or promote such flows.
Meaning, it has the potential for both positiv
e and negative effects on development and he
alth.
• Thomas Friedman define globalization as, a
s the inexorable integration of markets, nat
ion states, and technologies to a degree nev
er witnessed before in a way that is enabli
ng individuals, corporations and nation-sta
tes to reach around the world farther, faster
, deeper, and cheaper than ever before.
• Meanwhile, according to Manfred Steger,
“the term globalization applies to a set of s
ocial processes that appear to transform our
present social condition of weakening nati
onality into one of globality.”
The Benefits of Globalization are:

• More international trade.

• More wealth in the world.
• Improve living standards.
• Increased creativity and innovation.
• More goods & services generally availabl
e at lower prices.
• Easy access to foreign culture.
Types of Globalization
Economic Globalization

• Economic globalization refers to interconnecte

dness of economies through trade and exchang
e of resources.
• It also refers to the widespread international m
ovements of good, services, capital, technology
and information.
• Economic globalization primarily comprises th
e globalization of production, finance, markets,
technology, organizational regimes, institution
s, corporations, and labour.
Social Globalization
• It pertains to human interaction within cultural communitie
s, encompassing topics like family, religion, work and educa
tion.
• It is a global interconnectedness between the people.
• It is also a measure of how easily information and ideas pas
s between people in their own country and between differen
t countries (includes access to internet and social media net
works).
Political Globalization
• Refers to the amount of political co-operation that exist bet
ween different countries.
• Political globalization refers to the growth of the worldwide
political system, both in size and complexity.
• It also refers to the organization of different countries into tr
ade blocs.
What causes globalization
?
The primary components that led to the interg
ration of international market are:
• International finance—sometimes known as internatio
nal macroeconomics—is a section of financial economi
cs that deals with the monetary interactions that occur
between two or more countries. This section is concern
ed with topics that include foreign direct investment a
nd currency exchange rates.
• Multinational production, defined as production that is
carried out by firms outside of their country of origin.
• Trade is a type of economic globalization and a measur
e (economic indicator) of economic integration. It repre
sents the proportion of all production that crosses the
boundaries of a country, as well as the number of jobs
in that country dependent upon external trade.
How does technology DRIVE GLOB
ALIZATION?
Technological advancement drives globali
zation by making it easier for people, goods, and ideas t
o move across borders. For example, people from all over
the world can now share their ideas in just a second or m
inute through the internet, which has enhanced commun
ication and connectivity.
The Pros and Cons of gl
obalization
Pros Of Globalization

1. It encourages free trade. Without borders in place, consum

ers can purchase items from anywhere in the world at a re
duced cost. There would be fewer barriers in place, like ta
riffs, sales taxes, or subsidies because there wouldn’t be n
ations in place that could add restrictions.
2. More trade means the potential for more jobs. When there
are fewer barriers in place to purchase items, then consum
ers will generally purchase more things. This creates the f
oundation that businesses need to create more jobs.
3. It eliminates currency manipulation. Many countries today
manipulate their currencies to benefit their local economy.
Even the three “primary” currencies of the world do this: t
he pound, the euro, and the dollar. 
4. Open borders mean more opportunities to develop poo
r areas of the world. There are many nations in the wor
ld today that are in a state of entry-level industrializati
on. Poverty is a feature in many of these developing co
untries. Through the process of globalization, the remo
val of borders allows the people in these areas to exper
ience greater prosperity because each area gains the ab
ility to access what they need. 
5. It allows for open lines of communication.
When borders are removed, people have the ability to c
ommunicate with one another more freely. There is a
greater intermingling of cultures, which allows peo
ple to have a greater perspective about the world. 
6. We could begin pooling resources to do great
things. Multiple countries are running space p
rograms right now. Some private businesses a
re doing the same thing. If they could pool the
ir resources and combine talents to work towa
rd one single goal instead of having multiple
agencies all trying to do the same thing, we co
uld be more efficient with our innovation in t
he area of space exploration. The same princip
le could be applied to virtually any industry o
r idea.
Cons of globalization
1. It generally makes the rich become rich and the poor
to become mired in poverty. This means the rich ca
n access what they want or need to become richer,
but the poor get trapped in poverty because they d
on’t have the means to access success.
2. Jobs get transferred to lower-cost areas. 
Jobs can be created through globalism, but they te
nd to be created in the areas where labor costs are t
he cheapest. 
3. Globalism creates a culture of fear. 
Even in jobs aren’t exported to cheaper areas of the
planet, business owners can hold the threat of doin
g so over the heads of their current workers to gain
salary concessions.
4. It creates a political system where the biggest and the rich
est have influence. The largest businesses and wealthiest pe
ople could hoard global resources for themselves through
whatever government was put into place, enhancing the so
cial inequalities that are already being seen on smaller scal
es.

5. Diseases travel faster in a world that is globalized. 

When people stay within their own regions, there are fewe
r problems with communicable diseases. If there were no b
orders and people could travel freely to wherever they wis
hed to go, this issue would cause even the most remote par
ts of the planet to be exposed to potentially deadly health c
oncerns.
6. It could have a negative impact on the environmen
t. Let’s say that production levels increase because e
veryone sees a boost in their economic circumstance
s. This would potentially increase pollution levels t
hat could acidify the air, the ocean, and cause more
issues with global warming.
Conclusion
• Globalization is the key factor for international business.
• Globalization is an event occurred in unprecedented pace and gives definit
ion to the world market. It is still public debate whether it is beneficial or
detrimental most especially to the average citizens. It may directly on indir
ectly affect everyone, but not everyone gets the same benefits.
• With globalization, there comes a higher level of thinking and strategizing
.
• Globalization has contributed to global warming, climate change and the
overuse of natural resources. An increase in the demand for good has boos
ted manufacturing and industrialization.
• The globalization pros and cons show that there would be many benefits t
o a borderless world, but there would also be great challenges which woul
d need to be solved for it to be a workable solution. Whether one supports
a world without borders or supports the current state of affairs, one truth c
an be found: we have a responsibility to help each other. When a minority
of the world consumes a vast majority of its resources, that is evidence whi
ch shows we must heed the call to help people in need.