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Definition of Globalization

Updated on April 21, 2010

Definition of Globalization

Globalization is the system of interaction among the countries of the world in order to develop the global economy. Globalization refers to the integration of economics and societies all over the world. Globalization involves technological, economic, political, and cultural exchanges made possible largely by advances in communication, transportation, and infrastructure.

There are two types of integration—negative and positive. Negative integration is the breaking down of trade barriers or protective barriers such as tariffs and quotas. In the previous chapter, trade protectionism and its policies were discussed.

You must remember that the removal of barriers can be beneficial for a country if it allows for products that are important or essential to the economy. For example, by eliminating barriers, the costs of imported raw materials will go down and the supply will increase, making it cheaper to produce the final products for export (like electronics, car parts, and clothes).

Positive integration on the other hand aims at standardizing international economic laws and policies. For example, a country which has its own policies on taxation trades with a country with its own set of policies on tariffs. Likewise, these countries have their own policies on tariffs. With positive integration (and the continuing growth of the influence of globalization), these countries will work on having similar or identical policies on tariffs.

Effects of Globalization

According to economists, there are a lot of global events connected with globalization and integration.

It is easy to identify the changes brought by globalization.

1.   Improvement of International Trade. Because of globalization, the number of countries where products can be sold or purchased has increased dramatically.

2.  Technological Progress. Because of the need to compete and be competitive globally, governments have upgraded their level of technology.

3.  Increasing Influence of Multinational Companies. A company that has subsidiaries in various countries is called a multinational. Often, the head office is found in the country where the company was established.

An example is a car company whose head office is based in Japan. This company has branches in different countries. While the head office controls the subsidiaries, the subsidiaries decide on production. The subsidiaries are tasked to increase the production and profits. They are able to do it because they have already penetrated the local markets.

The rise of multinational corporations began after World War II. Large companies refer to the countries where their subsidiaries reside as host countries. Globalization has a lot to do with the rise of multinational corporations.

4.   Power of the WTO, IMF, and WB. According to experts, another effect of globalization is the strengthening power and influence of international institutions such as the World Trade Organization (WTO), International Monetary Fund (IMF), and World Bank (WB).

5.   Greater Mobility of Human Resources across Countries. Globalization allows countries to source their manpower in countries with cheap labor. For instance, the manpower shortages in Taiwan, South Korea, and Malaysia provide opportunities for labor exporting countries such as the Philippines to bring their human resources to those countries for employment.

6.   Greater Outsourcing of Business Processes to Other Countries. China, India, and the Philippines are tremendously benefiting from this trend of global business outsourcing. Global companies in the US and Europe take advantage of the cheaper labor and highly-skilled workers that countries like India and the Philippines can offer

7. Civil Society. An important trend in globalization is the increasing influence and broadening scope of the global civil society.

Civil society often refers to NGOs (nongovernment organizations). There are institutions in a country that are established and run by citizens. The family, being an institution, is part of the society. In globalization, global civil society refers to organizations that advocate certain issue or cause.

There are NGOs that support women's rights and there are those that promote environment preservation. These organizations don't work to counter government policies, but rather to establish policies that are beneficial to all. Both the government and NGOs have the same goal of serving the people.

The spread of globalization led to greater influence of NGOs especially in areas of great concern like human rights, the environment, children, and workers. Together with the growing influence of NGOs is the increasing power of multinational corporations. If the trend continues, globalization will pave the way for the realization of the full potential of these two important global actors.

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    • profile image

      pongwa khamis 2 years ago

      thanks very much for it but elaborate more for better understanding

    • profile image

      ak 3 years ago

      globalization is a term that connect all the economic of the world in a one aspect

    • profile image

      Eliud Andrew 3 years ago

      thanks to you!!!!!!

    • profile image

      GODFRED BROWN 3 years ago

      NICE DEFINITION ON GLOBALIZATGION

      VERY GOOD FOR MA RESEARCH

    • profile image

      ali mohammed 3 years ago

      10 Q

    • profile image

      deodatus mbata 3 years ago

      nc in4mationnnnnnnnnnnnnnnnnnnnnn

    • profile image

      Suma Prasadimath, Gadag.... 4 years ago

      thank you very much sir/mdm.... i m a PG student.... this information is very much useful to my studies and to my seminor about GLOBALIZATION....

      Thank u once again.....

      Suma Prasadimath, Gadag....

    • pramodgokhale profile image

      pramodgokhale 4 years ago from Pune( India)

      Sir,

      Globalization was long overdue and finally, conservative governments across the globe realized to join bandwagon of globalization.

      Success and failure of any system is applicable here and it is too early to

      expect success and we need to strengthen economies and quest for progress and Eco- conservation which will boost chances globalization's success.

      thank you sir

      pramod gokhale

    • profile image

      prakrati verma 4 years ago

      awesomm..... it help soo much in my prjct

    • profile image

      amna 4 years ago

      thanks nice explanation

    • profile image

      john 4 years ago

      thank you for this defination of globalisation

    • profile image

      kankana bhuyan 4 years ago

      A good note on globalisation.Thnx.

    • profile image

      MARLON R 4 years ago

      thanks for yo supportive explanation of globalisation

    • profile image

      MARLON R 4 years ago

      thanks for yo supportive explanation of globalisation

    • profile image

      oyella ivy 4 years ago

      it was so helpful for my test

    • profile image

      jemal 4 years ago

      thanks i got a wonderful explanation about globalization

    • profile image

      nush 4 years ago

      Thanks..grasp loads of information and very interesting..(:

    • profile image

      jimi 4 years ago

      thank a lot

    • profile image

      ahlem 4 years ago

      nice and useful information thnx

    • profile image

      ahamd 4 years ago

      like

    • profile image

      vbbb 4 years ago

      gghh

    • profile image

      mainka 4 years ago

      it is good

    • profile image

      shivani 4 years ago

      thanks for this information. Tis is very helpful for my exams

    • profile image

      gayatri 4 years ago

      Good info but could be much much much more better.....

    • profile image

      sandy26 4 years ago

      very nice and detailed information about globalization.. tan Q very much..this is going 2 help a lot in making mi project.. :)

    • profile image

      priyanka vilas lokhande 4 years ago

      I am Making a Project on Effects of Glottalization On human Resource Management can you please help me form where i can get relevant information

    • profile image

      preethi 4 years ago

      it was ausom.

    • profile image

      jovet 4 years ago

      please can any one help me with the challenges of Archie and proto globalisation.

      i will really be grateful if any one can help.

      thanks and waiting...

    • profile image

      komal 5 years ago

      It is very useful.

      thanksssssssssssss

    • profile image

      chandara 5 years ago

      I'm very happy!

    • profile image

      gfhjhkuuuuuuuf 5 years ago

      arnav sing rai

    • profile image

      jazeeba 5 years ago

      good notes though.. appreciate ;)

    • profile image

      SONIA 5 years ago

      NICE AND EASY NOTES

    • profile image

      farah 5 years ago

      stop globalization.......................

    • profile image

      azam 5 years ago

      amazing info. it helps me for preperation of my assignments

    • profile image

      Shaa 5 years ago

      References plz?

    • profile image

      aitya 5 years ago

      cool

      i like it

    • profile image

      anonymous 5 years ago

      My goodness, the level of English on this forum is remarkably... low!

      -No offence-

    • profile image

      Hri Subedi 5 years ago

      i would like to give special thanks because of your good description about the globalization

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      999gaggg 5 years ago

      seems legit!

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      brazzers yourselves 9fappers are coming...

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      hotbabefatchicks OK!

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      9gager9 :) 5 years ago

      Yeah 9gag link checker ....

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      ninegag 5 years ago

      I´m from the English presentation.

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      dafuq did i just read...

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      Just another random comment saying that i came from 9GAG !

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      hello

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      I'm from 9gag! Problem people?

    • profile image

      shahana sherin 5 years ago

      thanks...............very much

    • profile image

      tamanna 5 years ago

      this define is the most appropriate one

    • profile image

      Banjoe 5 years ago

      useefull thnksss :))

    • profile image

      faisal mk 5 years ago

      its really usefull

    • profile image

      Garima Gawshinde 5 years ago

      Thank u sooo muchh for the information regarding globlaliztion..

    • profile image

      Jane D 5 years ago

      Thnx for wonderfl articl,nc job

    • profile image

      N.L. Gcanga 5 years ago

      Thanks for your interpretation on globalisation. The information will help me on my stadies.

    • profile image

      Sulan 5 years ago

      M preparing notes on globalization and indeed very helpful.Thanks for d source.

    • profile image

      INDU SAHARAN 5 years ago

      Thank you soooooooo much

      It is very helpful

    • profile image

      Munireddy Bandari 5 years ago

      Namaskarmy name is Bandari iam for AP INDIA Thank you very much Sir your article is wonder full it is very very use full for Indian public at the same time your forgotten so many sectors your not discussed that's wat am suggesting particularly in one of the main sector it is none other then Agriculture sector it is one of the impotent sector am very very sorry say that am cultivated family that's what i suggest these things Thank you sir

    • profile image

      Nitro 5 years ago

      thanx for the valuable information! but I cant use ur name as reference in the academic report!! hotbabefatchicks! lol

      thanx anyway

    • profile image

      srishti 5 years ago

      gr8 work...thanks a lot

    • profile image

      nitika 5 years ago

      thanku its a gr8 help....it covers almost awl d topic wich i wanted to read n undrstand....i ws facing prob to learn dis frm ma concernd book...bt aftr reading dis i cn say dt nw i cn undrstand ....

    • profile image

      M.Naeem Qureshi 5 years ago

      Very good effort but please submit the references too. Thanks

    • profile image

      Imran nadwi 5 years ago

      Breaf and very good information

    • profile image

      kimmy 5 years ago

      Thanks a lot for the great work u did! I am a MBA student and have an assignment work on Globalisation. This article simplies it.

    • profile image

      Mushtaq 5 years ago

      Thanx for giving such nice information about globalisatiom.i am student of sociology

    • profile image

      tooba batool 5 years ago

      plz kindly tell me is this a answer of this question ? how globaliazation can change the nature of state in post cold war?

    • profile image

      rosemary kasimba 5 years ago

      i would like to thank u for dishing out such an indispensable information about globalization

    • profile image

      Winzy luv" 5 years ago

      Globalization shuld stay 4 eva...@

      9ice work...@

    • profile image

      ashi 5 years ago

      very nice way to explain globalization thanks a lot:-)

    • profile image

      dima obol godfrey 5 years ago

      thax alot it will be so interesting if u would argue the negative impact of globalisation for academic use since ur explanation is so clear

    • profile image

      Lady m 5 years ago

      Thanx 2morröw it my submitioñ abt globalisation

    • profile image

      NIO 5 years ago

      Thanx a lot, I am facillitating on this topic Globalization tomorrow, very helpful

    • profile image

      Chipmak 5 years ago

      This is wonderful. Thank you

    • profile image

      Sanjib Kumar Dey 5 years ago

      Thank You very much. It's helpful for me. I hope all the best to you.

    • profile image

      Dutta 5 years ago

      What are the forcrs of globalization?

    • profile image

      Hussein dahir 5 years ago

      thnx for giving me this definition bcoz this is my assiment today i best wishes to u

    • profile image

      preet 5 years ago

      its a very good information................ awesome.

    • profile image

      kushagra 5 years ago

      really outstanding,& thnxx aton....!!!!

    • profile image

      sameera 5 years ago

      thanks 4 these informations

    • profile image

      Sabika Ali 5 years ago

      THNNXXX....... ITS AN OSOME ARTICLE & HELPED ME A lot....

    • profile image

      Pa'cheedah 5 years ago

      Thks 4 d info. Phatbaby,pls i wldnt mind d references u used...or do u have any idea on "Globalisation of principles of education"...

    • profile image

      Waseem Hussain 5 years ago

      Thanks a lot for this contribution.

    • profile image

      leonard mapunda 5 years ago

      am a civics teacher from TAnzania,this document has helped me a lot in my work of teaching.

    • profile image

      Nousin 5 years ago

      Thank u very much for giving me those definition it helps me lot.

    • profile image

      Pascal 5 years ago

      Thank you for your good work. It is very useful for me and my colegues in BBA studies. Thank you very much.

    • profile image

      Rehan 5 years ago

      This was just like a candle found in dark a night before my examination....... bundles of thanks

    • profile image

      mella 5 years ago

      highly appreciated for I have completed my whole globalisation assignment. Umbulelo ongazenzisiyo THANK U

    • profile image

      babar 5 years ago

      i like it. i was searching for this kind of answers. when i read this meaning of globalization i think it is the perfect meaning of globalization. it is short also. great

    • profile image

      reshma 5 years ago

      helps a lot in understanding the concept,thanks a lot.

    • profile image

      sir will 5 years ago

      thanks a lot man, useful, simple and true

    • profile image

      nadeesha 5 years ago

      This is a good view point and very useful for me. Thank you very much for providing this for us.

    • profile image

      moses muganga 5 years ago

      Thank you so much for giving us the wonderful messages about globalization.l like it very much,You made it.God Bless you much more and more so that you can continue helping people.From Kampala lnternational University-Dar es salaam Campus.julias_moses@yahoo.com

    • profile image

      sdjbf 5 years ago

      horrible