GLOBALIZATION

GLOBALIZATION
TOPIC OUTLINE
1. What is Globalization
2. How Globalization works
3. The Importance of Globalization
4. History of Globalization and What is the G20
5. Types of Globalization
6. Effects and Benefits of Globalization
7. Negative Consequences and Future of Globalization
Globalization is the process by which ideas, knowledge, information, goods, and services spread
around the world. In business, the term is used in an economic context to describe integrated
economies marked by free trade, the free flow of capital among countries, and easy access to
foreign resources, including labor markets, to maximize returns and benefit for the common
good.
Globalization, or globalization as it is known in some parts of the world, is driven by the

convergence of cultural and economic systems. This convergence promotes -- and in some cases
necessitates -- increased interaction, integration, and interdependence among nations. The more
countries and regions of the world become intertwined politically, culturally, and economically,
the more globalized the world becomes.
HOW GLOBALIZATION WORKS
In a globalized economy, countries specialize in the products and services they have a
competitive advantage in. This generally means what they can produce and provide most
efficiently, with the least amount of resources, at a lower cost than competing nations. If all
countries are specializing in what they do best, production should be more efficient worldwide,
prices should be lower, economic growth widespread and all countries should benefit -- in
theory.
Policies that promote free trade, open borders, and international cooperation all drive
economic globalization. They enable businesses to access lower- priced raw materials and parts,
take advantage of lower-cost labor markets, and access larger and growing markets around the
world in which to sell their goods and services.
Money, products, materials, information, and people flow more swiftly across national
boundaries today than ever.
Advances in technology have enabled and accelerated this flow and the resulting international
interactions and dependencies. These technological advances have been especially pronounced
in transportation
and telecommunications.
Among the recent technological changes that have played a role in globalization are the
following:
1. Internet and Internet Communication

2. Communication Technology
3. IoT and AI
4. Blockchain
5. Transportation
6. Manufacturing
Why is globalization important?
Globalization changes the way nations, businesses, and people interact. Specifically, it changes
the nature of economic activity among nations, expanding trade, opening global supply chains ,
and providing access to natural resources and labor markets. Changing the way trade and
financial exchange and interaction occur among nations also promotes the cultural exchange of
ideas. It removes the barriers set by geographic constraints, political boundaries, and political
economies
HISTORY OF GLOBALIZATION
 THE ROMAN EMPIRE

 PRE-WORLD WAR I
 SILK ROAD TRADE
 POST-WORLD WAR II
WHAT iS G20
The G20, or Group of Twenty, is an international forum that aims to foster international
cooperation by addressing economic issues, such as financial stability and climate change. The
G20 is made up of 19 countries and the European Union, including most of the world’s largest
economies.
The members of G20 are Argentina, Australia, Brazil, Canada, China, France, Germany, Japan,
India, Indonesia, Italy, Mexico, Russia, South Africa, Saudi Arabia, South Korea, Turkey, the
United Kingdom, the United States and the European Union. Spain is a permanent guest of the
organization.
THREE TYPES OF GLOBALIZATION
 ECONOMIC GLOBALIZATION
 POLITICAL GLOBALIZATION
 CULTURAL GLOBALIZATION
EFFECTS OF GLOBALIZATION
 INDIVIDUALS
 COMMUNITIES
 COMMUNITIES
Examples of globalization
Multinational corporations are a tangible example of globalization. Some examples include the
following: McDonald's had 39,198 fast-food restaurants in 119 countries and territories,
according to its Securities and Exchange Commission filing at the end of 2020. It employed more
than 2.2 million people at that time, the filing said. Ford Motor Company reported in 2021 that
it works with about 1,200 tier 1 suppliers around the globe. Amazon's recent expansion has it
using tens of thousands of suppliers and employing more than nearly 1.3 million full- and
parttime employees.
BENEFITS OF GLOBALIZATION
 Solves Economic Problems

 Promotes Free Trade
 Spurs Economic Development
 Encourages positive trends in human rights and the environment
 Promotes shared cultural understanding
NEGATIVE CONSEQUENCES
1. Destabilizes markets
2. Damages the environment
3. Lowers living standards
4. Facilitates global recession
5. Damages cultural identities
6. Increases the likelihood of pandemics
FUTURE GLOBALIZATION
Technological advances, particularly blockchain, mobile communication, and banking, are

fueling economic globalization. Nonetheless, rising levels of protectionism and anti-
globalization sentiment in several countries could slow or even reverse the rapid pace of
globalization. Nationalism and increasing trends toward conservative economic policies are
driving these anti-globalization efforts
Global trade is also made more difficult and facing rising threats from other factors, such as
these:
1. Climate change
2. Decaying infrastructure
3. Cyber attacks
4. Human rights abuses
The Takeaway
Globalization is a longstanding trend that is in the process of changing and possibly slowing.
There are advantages to the more open border and free trade that globalization promotes and
negative consequences. In a modern, post-pandemic world, individuals, businesses, and
countries must consider both sides of the globalization issue. Learn how companies are
rethinking global supply chains to avoid disruption and reap the benefits of globalization.

GLOBALIZATION

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GLOBALIZATION

Globalization, or globalization as it is known in some parts of the world, is driven by the

HOW GLOBALIZATION WORKS

1. Internet and Internet Communication

Why is globalization important?

 THE ROMAN EMPIRE

THREE TYPES OF GLOBALIZATION

 Solves Economic Problems

Technological advances, particularly blockchain, mobile communication, and banking, are

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