Contemporary World
What is Globalization?
It is the modernization of the world.
It is the situation of the world that was shaped by history
It encompasses a multitude of processes that involves the economy,
political systems and culture
Globalization means the onset of the borderless world (Ohmae, 1992).
It is the process of world shrinkage, of distances getting shorter, things
moving closer. It pertains to the increasing ease with which somebody
on one side of the world can interact, to mutual benefit with somebody
on the other side of the world (Thomas Larson, 2001).
Globalization is the liberalization of countries of their impact protocols
and welcome foreign investment into sectors that are the mainstays of
its economy
It is the interconnectedness of people and business across the world
that eventually lead to global, cultural, political, and economic
integration.
It refers to countries acting like magnets attracting global capital by
opening their economies to multinational corporations.
Globalization is the increasing interaction of people, states, or
countries through the growth of the international flow of money, ideas,
and culture.
It is the ability to move and communicate easily with others all over
the world in order to conduct business internationally
It is the free movement of goods and services, and people across the
world in a seamless and integrated manner
Definition
Processes by which the people of the world are incorporated in a single
world - Martin Albrow and Elizabeth King
Intensification of worldwide social relations which link distant localities
in such a way that local happenings are shaped by events occurring
many miles away and vice versa - Anthony Giddens
Compression of the world and the intensification of the consciousness
of the world as a whole - Roland Robertson
Indicators of Globalization
Improvements that people enjoy today in this contemporary world have been
major factors of globalization which have generated further interdependence
in economic and cultural activities among nations
Likewise, environmental challenges such as global warming, cross-boundary
water, air pollution, and over-fishing of the ocean are linked with
globalization. Globalizing processes affect and are affected by business and
work organization, economics, socio-cultural resources, and the natural
environment. Academic literature commonly subdivides globalization in three
major areas: economic globalization, cultural globalization, and political
globalization.
Nature of Globalization
Globalization is a conglomerate of various multiple units located in
different parts of the globe which are linked by common ownership.
Multiple units draw on a common pool of resources, such as money,
credit, information, patents, trade names and control systems. The
units respond to some common strategy.
Product presence is in different markets of the world.
Human resources are highly diverse
Dimensions of Globalization
1. Planning to expand the business in a worldwide scope.
2. Giving up the distinction between domestic and foreign market and
instead developing a global outlook of such business.
3. Locating the production and physical facilities of the business by
considering the global business dynamics irrespective of national
consideration.
4. Creating product development and production planning on a global
market sphere.
5. Global sourcing of the factors of production such as raw materials
components, machinery, technology, finance, and others that are
obtained from the best source anywhere in the world.
Reasons for Globalization
1. Rapid shrinking of time and distance across the globe
2. Domestic markets are no longer rich as a consequence of many
interlocking factors
3. Companies and institutions go global to find political and economic
stability
4. To get technological and managerial know-how of other countries
5. To reduce high transportation cost
6. To be close to raw materials and to markets for their products