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    Globalization PDF

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    Ahtisham Ahsan
    Globalization can be defined as the increasing integration and interdependence of national economies through trade, investment and capital flow, cultural exchange, and technological advancement. It involves three types - economic, social, and political. The main causes of globalization are trade liberalization, improvements in technology, reduced costs of communication and transportation, deregulation of financial markets, and the increased significance of transnational corporations. Globalization leads to both advantages such as cheaper goods, increased skilled workers, and lower production costs, as well as disadvantages like increased commodity prices, exploitation of cheap labor, increased vulnerability and instability, and uneven wealth distribution.

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    Globalization PDF

    Uploaded by

    Ahtisham Ahsan
    66 views3 pages
    Globalization can be defined as the increasing integration and interdependence of national economies through trade, investment and capital flow, cultural exchange, and technological advancement. It involves three types - economic, social, and political. The main causes of globalization are trade liberalization, improvements in technology, reduced costs of communication and transportation, deregulation of financial markets, and the increased significance of transnational corporations. Globalization leads to both advantages such as cheaper goods, increased skilled workers, and lower production costs, as well as disadvantages like increased commodity prices, exploitation of cheap labor, increased vulnerability and instability, and uneven wealth distribution.

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    Globalization can be defined as the increasing integration and interdependence of national economies through trade, investment and capital flow, cultural exchange, and technological advancement. It involves three types - economic, social, and political. The main causes of globalization are trade liberalization, improvements in technology, reduced costs of communication and transportation, deregulation of financial markets, and the increased significance of transnational corporations. Globalization leads to both advantages such as cheaper goods, increased skilled workers, and lower production costs, as well as disadvantages like increased commodity prices, exploitation of cheap labor, increased vulnerability and instability, and uneven wealth distribution.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    66 views3 pages

    Globalization PDF

    Uploaded by

    Ahtisham Ahsan
    Globalization can be defined as the increasing integration and interdependence of national economies through trade, investment and capital flow, cultural exchange, and technological advancement. It involves three types - economic, social, and political. The main causes of globalization are trade liberalization, improvements in technology, reduced costs of communication and transportation, deregulation of financial markets, and the increased significance of transnational corporations. Globalization leads to both advantages such as cheaper goods, increased skilled workers, and lower production costs, as well as disadvantages like increased commodity prices, exploitation of cheap labor, increased vulnerability and instability, and uneven wealth distribution.

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    © All Rights Reserved
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    GLOBALIZATION

    WHAT IS GLOBALIZATION?
    • Globalization can be defined as a process of rapid economic, cultural, and institutional
    integration among countries.
    • This unification is driven by the liberalization of trade, investment and capital flow,
    technological advances, and pressures for assimilation towards international standards.
    • Globalization makes the world more accessible to everyone.

    TYPES OF GLOBALIZATION
    1. Economic: Countries that trade with many others and have few trade barriers are
    economically globalized.
    2. Social: A measure of how easily information and ideas pass between people in their own
    country and between different countries (includes access to internet and social media
    networks).
    3.Political: The amount of political co-operation there is between countries.

    CAUSES OF GLOBALIZATION
    • Trade liberalization • Improvements in technology • Reduced cost/improvement of
    communications and transportation • Deregulation of financial markets. • Increased
    significance of TNCs (transnational corporations)
    TRADE LIBERALIZATION: Trade liberalization refers to a reduction of trade barriers, this will
    open up worldwide markets. Trade barriers have fallen since the Second World War. New
    organizations were formed to increase integration – GATT (General Agreement on Tariffs and
    Trade, WTO from 1995)
    IMPROVEMENTS IN TECHNOLOGY: Improved technology makes it easier to communicate
    and share information around the world. The most important development in the recent
    years is the internet.
    REDUCED COST AND IMPROVEMENT OF COMMUNICATIONS AND TRANSPORTATION: Fall
    in the real cost of transporting goods has allowed cheaper importation and exportation of
    goods. Decline in the cost of communications has also helped this. Improvements in
    transportation have also allowed firms to split up the production process to cash in on varying
    cost conditions in different parts of the world. This has helped to facilitate the growth of TNCs.
    DEREGULATION OF FINANCIAL MARKETS: There have been moves towards removing
    restrictions on the movement of financial capital between countries. Many countries have
    removed capital controls – made it easier for firms to operate globally. Reinforced by
    developments in technology that enable financial transactions to be undertaken more quickly
    and efficiently – i.e. the Internet. Financial markets have increased globalization due to their
    being set up in various countries. They allow for more interface and communication between
    different parts of the world over the trade of financial assets.
    INCREASED SIGNIFICANCE OF TNCs: After the Second World War more economic power was
    shifted to corporations – accelerated growth. TNCs have grown even further due to favorable
    corporation tax rates in many countries and tax breaks, as TNCs supposedly bring in more
    jobs. TNCs partake in foreign direct investment, which increases the integration of economies.
    Many TNCs want to gain entry to, for example, the EU due to its single market, and China due
    to its large and growing market.

    EFFECTS OF GLOBALIZATION
    Globalization has led to increase in competition.
    Globalization causes exchange of technology. Globalization helps in knowledge and
    information transfer across the globe.
    Globalization has led to increase in investment levels and rise in opportunities.
    Globalization has led to vast Multinational and multicultural management.
    Globalization leads to Procurement & Outsourcing. Accenture provides Procurement &
    Outsourcing services includes sourcing, demand management, invoice processing, travel and
    expense processing, contract administration and many more.

    ADVANTAGES OF GLOBALIZATION
    Cheaper Goods For Consumers and Better Product Quality: Increased competitiveness may
    also lead to decline in the price of goods, improvements in quality of goods and choice of
    goods.
    Increase In Skilled Workers: Increased international labor mobility has led to an increase in
    skilled workers.
    Lower Cost of production: Nike shoes are made in Vietnam due to lower cost of production.
    Improvement In Education: The spread of the internet has helped to improve education.
    Cultural Diversity: Increased movement of labor leads to an increase in the spread of different
    cultural ideas.
    Poverty Reduction: GDP of the developing countries has increased twice as much as before.
    Transportation: Globalization has led to tremendous increase in transport services across the
    globe.

    DISADVANTAGES OF GLOBALIZATION
    Increased Commodity Price: Prices then and now have increased tremendously.
    Exploitation of Cheap Labor: Workers working day and night to produce goods for very little
    money.
    Cause of Diseases: It is the cause of very serious health problems all over the globe.
    Increased Relative Poverty and Inequality: We have everything by globalization, we have
    nothing by globalization.
    Increased Vulnerability and Instability: The international Coffee chains are causing a serious
    threat to local coffee shops.
    Disparity: The Economic system that has generated tremendous wealth disparity that really
    seems unfair.
    Uneven Wealth Distribution: The rich are getting richer and the poor are getting poorer.

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