Definition of Globalization

Definition of Globalization

Globalization is surely the most hotly contested buzzword of all the prominent buzzwords of the new millennium. It looks like every new economic development, good or bad, is because of globalization, and people like to take sides for or against it. World leaders hold meetings to promote the positive effects of globalization, while the opposers of it protests against the negative effects it has on the world. Whether for or against the process, few people are able to give and exactly definition of globalization.

Defining Globalization

Certain politicians have defined globalization as an increase in world trade. This simple definition fails to take into account the many other reasons for increase in trade between nations. For example, if an inventor made a technological breakthrough to increase worker productivity, the global supply of goods would also increase. This would increase world trade in turn, but not because of globalization.

Others, chiefly the opposers of globalization, have attempted to to define globalization by the frictions it causes in the global economy. They use politically weighted phrases like fair trade and race to the bottom, but these describe their critical opinion rather than the process itself.

Finally, scholars generally have a definition of globalization that sees it as an increase in world integration. The emphasis is mostly put on economic integration, because most scholars believe that globalization is caused by the removal of trade barriers and works mostly through economic channels. But they also recognize that the process has and effect on cultural, social and political systems.

An Example of Globalization

As an example of the above integration, consider the global market in milk and milk products(powdered milk, cheese, butter). A recent drought in Australia lessened the amount of grass on which Australian dairy cows feed, thereby limiting the amount of milk these cows produced for export.

At the same time a tax was levied by Argentina on milk products which caused an increase in milk prices, which caused a decrease in milk exports. These two events caused a shortage of milk worldwide which European dairy farmers could not fill due to strict production quotas enforced by the European union.

Meanwhile, in China, higher per capita consumption is caused by rising income levels, which in turn caused and increased demand of milk products. All these events may have seemed isolated and incosequential to the average consumer, but they were actually closely related in terms of globalization and resulted in a strong upward pressure on the price of milk everywhere.

Definition of globalization - Globalization is best defined as an increase in world integration. It relates most directly to national economies but also affects cultural, social, and political systems.


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Leave Me a comment About the Definition of Globalization 4 comments

thevoice profile image

thevoice 6 years ago from carthage ill

The world is closing in because people care more about money then human life thanks great great hub work


Sage Williams profile image

Sage Williams 6 years ago

You did an amazing job on this hub. Very well written on such a very important topic. Supply and demand, like ebb and flow they both go hand in hand. I myself prefer ebb and flow.

Great Job!

Sage


nick247 profile image

nick247 6 years ago from United Kingdom

All very true - one thing that both critics and champions of globalization often miss is that it's not actually that new - look at the British Empire! As soon as trade went global everything started to be interconnected - it's just all faster now..


Dorine Ngaka 22 months ago

Globalisation is the increasing process of interconnectedness between different political, social, and economic components of the world. It is the way in which the world is seen as the global village, intergrating people across their national borders.

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