Question

1. Explain the main components of Globalization and the cultural flows that it produces, using appropriate examples.

Answer 1

International trade- Imports are committed to an growing share of spending on goods and services, and an increasing proportion of what countries generate is sold as exports. At the heart of a country's economy lies the importance of foreign trade. Countries are now more interdependent than ever on their partners in the continuously evolving business market for exporting, importing, thus keeping the economy of home country afloat and stable. For example , China's economy is heavily dependent on goods being shipped to the United States, and the consumer base of the United States that will purchase these items.

Foreign Direct Investment - Direct investment in manufacturing facilities is distinct from investment in investments that can take the form of short-term capital flows (e.g. loans) or long-term capital flows (e.g. bonds) Since 1980, global foreign direct investment flows have more than doubled in relation to GDP

Capital market flows- For many countries, particularly in the developing world, investors have increasingly diversified their portfolios to include foreign financial assets, such as international bonds , stocks or mutual funds, and lenders are increasingly turning to foreign funds. Capital market flows often include migration remittances which usually flow from industrialized countries to less industrialized countries. Essentially, the businessman has a variety of sources to fund a company.

Migration- Whether it's physicists who emigrate to Great Britain from India and Pakistan or seasonal farm workers who emigrate to the United States from Mexico, labor is increasingly mobile. Migration will help the developed economies as migrants who have gained skills and know-how abroad return home to set up new businesses. Migration, however, may also affect the economy through the "brain drain," the loss of skilled workers necessary for economic growth

The protection of cultural diversity feeds contrary and divisive responses in an increasingly borderless world affected by a globalization of economies. For example, while changes and potential losses imposed on local and traditional cultures by globalization, including those extending to cultural differences, may be harmful and destructive, they may also lead to new opportunities for prospect. Cultural hybridization's primary concept is the ongoing method of combining or merging cultures. The latter resulting from the globalization of ends derived from the convergence of global and local as well as modern, distinctive and hybrid cultures which at their core globalization are fundamentally neither global nor local is a complex blend or mixture of homogenization and heterogenization as opposed to a wide-ranging process of homogenisation.