Introduction to Globalization
Globalization is more than just ships filled with occurring many miles away and vice
goods sailing around the world, or information versa.
bouncing around the globe at cyber-speed. It is
• Manfred Steger Pertains to the
also the movement and mixing of biology, races,
multidimensional set of social relations
cultures and ecology. As well, it is about the
that create, multiply, stretch, and
globalization of ideas and values, of theories
intensify worldwide social
about what it means to be a human being in the
interdependence and exchanges while
21st century.
at the same time fostering in people a
In this course we will ask some major questions: growing awareness of deepening
How globalized is our world and how did this connections between the local and the
come to be? What are the most salient issues of distant.
global politics, economics, and history in terms
• Roland Robertson and Kathleen White
of understanding a “shrinking” world? In what
Composed of two directional
ways are ethics and economics inextricably
tendencies that include increasing
linked? What are the major opportunities and
global consciousness. Connectivity
challenges related globalization?
implies getting in touch with the outside
Globalization is a term used to describe how world while consciousness means
trade and technology have made the world into awareness and familiarity with the
a more connected and interdependent place development in the international
Globalization also captures in its scope the community.
economic and social changes that have come
about as a result.
Why study globalization?
Studying globalization is essential in
Scholarly definitions of Globalization
understanding how the world is interconnected
• David Held and Anthony Mcgrew and how economic, political, social, and cultural
Refers to expanding scale, growing forces shape our lives. Globalization is one of
magnitude, speeding up and deepening the most significant forces shaping our world
impact of interregional flows and today. Understanding it helps us navigate
patterns of social interactions. It also economic, political, social, and technological
refers to the shift of transformation in changes that impact individuals, businesses, and
the scale of human organization that nations. Here are key reasons why studying
links distant communities and expands globalization is essential:
the reach of power relations across the
• Globalization is everywhere and is
world’s major regions and continents.
certainly impossible to escape with.
• Anthony GiddensPertains to the
• Encourages unity and harmony among
intensification of world – wide social
several states and non – state actors.
relations which connects distance
localities in such a way that local • Enhances the consciousness of
happenings are shaped by events individuals about global community.
• Facilitates the linkages or connections knowledge and information transfer
of the different institutions in the global across the globe. Globalization has
community. significantly contributed to the exchange
of technology across countries,
• Provides an understanding on the industries, and societies. This exchange
nature of competition in the global has driven innovation, improved
community. efficiency, and transformed the way
people live and work. However, it also
• Bridges the differences among the local presents challenges such as digital
communities of the contemporary inequality and security risks.
world. .
• Promotes acceptable social practices or • Globalization has led to increase in
activities among the different local investment levels and rise in
communities. opportunities - Globalization has
significantly contributed to the growth
• Provides an avenue to appreciate the
of global investment and the expansion
changes and developments that are
of opportunities across various sectors.
sweeping the international community.
As countries and businesses become
more interconnected, investment flows
have surged, leading to greater
Effects of Globalization
economic development, new job
Globalization has significantly shaped the opportunities, and expanded markets.
modern world by increasing connectivity
• Globalization has led to vast
between countries in terms of trade, culture,
Multinational and Multicultural
technology, politics, and the environment.
management - Globalization has had a
While it has contributed to economic growth
profound impact on the way businesses
and cultural exchange, it has also created social
operate, leading to the rise of
inequalities and environmental challenges.
multinational corporations (MNCs) and
Below is a discussion of the major effects of
an increasingly diverse, multicultural
globalization:
workforce. As businesses expand across
borders, they face new challenges in
managing diverse teams, navigating
• Globalization has led to increase in
cultural differences, and aligning global
competition - Globalization has
strategies.
significantly increased competition in
various sectors, affecting businesses, • Globalization leads to Procurement &
economies, and individuals worldwide. Outsourcing - Concentrix provides
The removal of trade barriers, Procurement & Outsourcing services
advancements in technology, and includes sourcing, demand
improved transportation have made it management, invoice processing, travel
easier for companies and countries to and expense processing, contract
compete on a global scale administration and many more.
Globalization has drastically reshaped
• Globalization causes exchange of
the way companies manage their
technology - Globalization helps in
procurement and outsourcing globe. As companies expand their reach
strategies. By expanding global supply and markets become more
chains and enabling businesses to tap interconnected, the demand for skilled
into international markets, globalization labour rises, creating opportunities for
has made procurement more efficient workers to gain new skills, access better
and outsourcing more accessible. education, and work in diverse
However, it has also introduced new industries.
challenges in terms of quality control,
• Lower Cost of Production - Nike shoes
dependency, and ethical concerns.
are made in Vietnam due to lower cost
of production. One of the key
advantages of globalization is the
Advantages of Globalization
reduction in the cost of production for
Globalization has brought about significant businesses. As companies expand
changes to economies, businesses, and societies globally, they can take advantage of
across the world. By connecting countries, various opportunities to cut costs,
cultures, and markets more closely than ever increase efficiency, and improve their
before, globalization has opened up new competitive edge.
opportunities and transformed various sectors.
• Improvement in Education - The spread
Below is an exploration of the key advantages of
of the internet has helped to improve
globalization:
education. Globalization has had a
transformative impact on education
systems worldwide. It has opened up
• Cheaper Goods For Consumers and new opportunities for learning,
Better Product Quality - Increased in increased access to diverse educational
competitiveness may also lead to resources, and fostered the exchange of
decline in the price goods, knowledge and ideas.
improvements in quality of goods and
choice of goods. Globalization has • Cultural Diversity - Increased
brought numerous benefits to movement of labour leads to an
consumers, especially in terms of lower increase in the spread of different
prices and improved product quality. As cultural ideas. Globalization has
companies expand their reach across significantly contributed to the rise of
borders, they face increased cultural diversity around the world. As
competition, which drives down prices people, ideas, and cultures have
and pushes businesses to innovate and become more interconnected, the
offer better products. ability to share, appreciate, and
understand a variety of cultural
• Increased in Skilled Workers - Increased expressions and practices has increased.
international labour mobility has led to This cultural exchange is reshaping
an increase in skilled workers. societies, economies, and workplaces in
Globalization has had a profound profound ways.
impact on the labour market,
particularly in the development and • Poverty Reduction - GDP of the
increase of skilled workers across the developing countries has increased
twice as much as before. Globalization • Exploitation of Cheap Labour - Workers
has had a significant impact on poverty working day and night to produce goods
reduction across the globe, particularly for very little money.
in developing nations. By fostering
• Cause of Diseases - It is the cause of
interconnectedness, economic growth,
very serious health problems all over
and social development, globalization
the globe.
has opened up new avenues for tackling
poverty. However, it also presents • Increased Relative Poverty and
challenges that need to be addressed to Inequality - We have everything by
ensure that its benefits are equitably Globalization, we have nothing by
shared. Globalization.
• Transportation - Globalization has led to • Replacing Increased Vulnerability and
tremendous increase in transportation Instability - The international coffee
services across the globe. chains are causing a serious threat to
Transportation is one of the most local coffee shops.
critical factors in the process of
• Disparity - The Economic system that
globalization. It plays a fundamental
role in the movement of goods, has generated tremendous wealth
services, and people across borders and disparity that really seems unfair.
has a direct impact on economic • Uneven Wealth Distribution - The rich
growth, trade, cultural exchange, and are getting richer and the poor are
the interconnectedness of societies. The getting poorer.
evolution of transportation
technologies, systems, and • Decline of Local Markets - People are
infrastructure has dramatically ready to shell out extra money for a
influenced how countries and regions product that may be available at a lower
engage with the global economy and price. This is because of the modern
interact with one another. marketing techniques like advertising
and branding. The local players suffer a
huge loss as they lack the potential to
Disadvantages of Globalization. advertise or export their products on a
larger scale. Therefore, the domestic
While globalization has brought many benefits markets shrink.
such as economic growth, improved standards
of living, and cultural exchange, it also has its
share of disadvantages. These downsides can How Can Companies Can Enter Foreign
impact economies, societies, and individuals, Markets?
and must be addressed to ensure a more
balanced and equitable global system. • Export – Direct & Indirect
• Increased Commodity Price - Prices • JV – Joint Ventures
then and now have increased • Mergers and Acquisitions
tremendously.
• Licensing, Franchising
• Strategic Alliances
• Management Contracts
• Contract Manufacturing
• FDI – Foreign Direct Investments
• Globalization is the key factor for
international business.
• This new era of Globalization brings
with its opportunities and also new
considerations and challenges with the
dynamics of a free market.
• Globalization grant access to benefit
from the international division of
labour, technologies, international
specialization, inter-cultural exchange
and the consumers enjoy a wider
variety of products at lower prices.
• With Globalization, there comes higher
level of thinking and strategizing.
Business evolves in a new ways.
References:
Bihasa, Carmelo. The Contemporary World
Looking Through the Lenses of Globalization.
Books Atpb. Publishing Corp. 2022
Claudio, Lisandro & Abinales, Patricio. The
Contemporary World. C & E Publishing, Inc.
2018
explainitychannel. 2013. Globalization explained
(explainity® explainer video). Youtube.
[Link]
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