Globalization is a process of interaction and integration among
the people, companies, and governments of different nations, a
process driven by international trade and investment and aided by
information technology. ... Likewise, for centuries, people and
corporations have invested in enterprises in other
countries.
In
simple words, globalization means the spreading of a
business, culture, or any technology on an international level. ...
For instance, it needs the other countries to come to a mutual
agreement in terms of political, cultural, and economic
policies.
Globalization
is about
the interconnectedness of people and businesses across the world
that eventually leads to global cultural, political and economic
integration. ... Due to the increased demand in the high tech
industry around the world, business and industry have potential for
huge profits working globally.
Large-scale
globalization began in the 1820s. In the late 19th century and
early 20th century, the connectivity of the world's economies and
cultures grew very quickly. The term globalization is recent, only
establishing its current meaning in the 1970s.
The aim of
globalization is to secure socio- economic integration and
development of all the people of the world through a free flow of
goods, services, information, knowledge and people across all
boundaries.
There
are mainly three types of globalization:
· Political
globalization.
· Social globalization.
...
· Economic globalization.
Factors leads to
Globalization
Containerization. The
costs of ocean shipping have come down, due to containerization,
bulk shipping, and other efficiencies. ...
· Technological change. ...
· Economies of
scale. ...
· Differences
in tax systems. ...
· Less
protectionism. ...
· Growth
Strategies of Transnational and Multinational
Companies.
Phases of Globalization
- In Phase 1, consumption and production take
place together because the “hunter-gather” lifestyle meant
consumption moving to “production” (i.e. food sources).
- In Phase 2, consumption and production
remained together but it was because people “brought” the food to
themselves by developing agriculture.
- Phase 3 was when modern globalization started
in the 19th century. Steam ships and railroads (and world peace
called Pax Britannica) made it economical to consume goods that
were made faraway. With things being made in one country and
consumed in another, trade boomed.
- Phase 4, the one we are in today – started
when production itself got broken up and shifted around to
different nations. This is known as off shoring and it radically
transformed world trade and manufacturing.
Features of
Globalization.
1.
Liberalization
2. Free
trade
3.
Globalization of Economic Activity
4.
Liberalization of Import-Export System
5.
Privatization
6.
Increased Collaborations
7.
Economic Reforms
8.
Several dimensions of Globalization
Advantages of
Globalization
1. Globalization allows us to pool all our
resources together.
2. Globalization would also reduce labor
exploitation issues.
3. Globalization reduces the prospects of
tyranny.
4. Globalization improves communication
access.
5. Globalization would remove tax havens
for wealthy individuals and businesses.
6. Globalization would help the developing
world progress faster.
7. Globalization would reduce currency
manipulation problems.
8. Globalization encourages free
trade.
9.
Globalization could create more employment
opportunities
Disadvantages of
Globalization
1. Globalization may encourage more
offshoring instead of less.
2. Globalization benefits the wealthy more
than the poor.
3. Globalization would encourage disease
transfer.
4. Globalization could reduce social
safety net programs.
5. Globalization would create a new system
of politics.
6. Globalization would not prevent
resource consumption.
7. Globalization would make it easier for
people to cheat.
8. Globalization doesn’t fix a lack of
skills.
9. Globalization changes how humans would
identify themselves.
10.
Globalization would negatively impact the environment
Globalization refers to
several different concepts all rolled into one package. It may
refer to the ease in which businesses conduct operations in
different countries other than their own. Some look at this subject
as a way to create a world without national borders. There are
concepts of communication, information access, and technology
development to consider when looking at this subject matter
too.
Even
though the geographic size of our planet remains consistent, how we
interact with each other is changing by the minute. Despite more
than 200 countries independently working for their best interests,
we all come together in ways to make the world a better place. If
you have access to a computer or mobile device with data or an ISP,
then you can communicate with anyone else in the world with the
same setup.
Challenges Faced by
Global Community Today
1. Growing Income
Inequality
People
have an age-old tendency to compare themselves to their neighbors,
especially when it comes to wealth. We are less concerned about our
absolute level of wealth, but look more at what we have and own in
relative terms to the people around us. Global private wealth
reached a record $166.5 trillion in 2016; an increase of 5.3% over
the previous year, according to a report by the Boston Consulting
Group (BCG).1 in 2015, the increase was 4.4%. Faster economic
growth and stock price performance mainly drove the rapid
increase.
But this
growth is not spread equally. Private wealth in Asia-Pacific is
likely to surpass that of Western Europe by as early as the end of
this year, BCG’s analysis shows. This could be an economic shock
for many citizens of traditional western powerhouses. Such changes
need to be watched and managed carefully as they tilt economic and
political power. British geographer and politician Sir Helford
Mackinder used to say: “Unequal growth among nations tends to
produce a hegemonic world war about every 100 years.” We can only
hope he is worn
Many
simple inequalities can be solved by adding, subtracting,
multiplying or dividing both sides until you are left with the
variable on its own. But these things will change direction of the
inequality: Multiplying or dividing both sides by a negative
number. Swapping left and right hand sides.
1. Increase
the minimum wage. ...
2. Expand the
Earned Income Tax. ...
3. Build
assets for working families. ...
4. Invest in
education. ...
5. Make the
tax code more progressive. ...
6. End
residential segregation.
2. Technology Driving
Change in Jobs
How
disruptive will the effect of globalization and technological
advances be on labor markets? That is a key question today. Over
the last three decades, advanced economies have seen
labor-intensive sector jobs move to emerging markets. In other
cases, new technologies have made certain occupations obsolete.
UNCTAD (United Nations Conference on Trade and Development)
released a policy brief last year that said robots could take away
two-thirds of jobs in developing countries.
We see
some of these shifts already. Today’s five largest global companies
are: Apple, Alphabet (Google), and Microsoft, Amazon, and Face
book. They employ around 720,000 people. A decade ago, the big five
were completely different: Petro china, Exxon Mobile, General
Electric, China Mobile, and Bank of China. They employed around 1.3
million people. What a decade can do! Today’s five biggest
companies are all technology companies. Their market capitalization
is 30% higher than that of the top five a decade ago; they achieve
that with a whopping 44% less staff (figure 2). This has a large
impact on labor markets and jobs.
Here
are changes digital is bringing to today's job roles: 1) You
will need new skills, and will be exposed to opportunities for new
skills. Digital technologies demand a range of skills, from cloud
architecture to social media. Many occupations, such as scientists,
now require some level of programming skills
3. Rising Protectionism
G20
countries have become more protectionists. The total number of
discriminatory protectionist measures implemented by G20 countries
has increased over the past five years (figure 3). The main driver
has been the U.S. According to the Global Trade Alert report, had
the United States been excluded, the total number of protectionist
policy instruments imposed by the G20 would have been lower in 2017
than in 2016. The U.S. has implemented the most protectionist and
trade restrictive measures of its peer group, the European Union
the least (figure 4). This sounds counter-intuitive for the country
that prides itself as an open economy, but it seems that it is
Europe that is championing trade barrier reductions and the
avoidance of protectionist measures.
The rise in
protectionism implies that a progressively larger share of global
trade has been affected by trade distortions. Data from the Global
Trade Alert database show that by 2017 more than 50% of exports
from G20 countries was subject to harmful trade measures, up from
20% in 2009In the long term, trade protectionism weakens the
industry. Without competition, companies within the industry have
no need to innovate. Eventually, the domestic product will decline
in quality and be more expensive than what foreign competitors
produce. Increasing U.S. protectionism will further slow economic
growth A key effect of trade protectionism is that consumers will
have a limited choice of products and goods since there may be
quotas on how much may be imported. ... Domestic firms may also be
hurt financially since they may have to purchase parts to make
their products and then pass the increased cost on to the
consumer..
4. Increasing
Migration
The
recent refugee crisis in Syria and the resulting arrival of more
than one million migrants in 2015-2016 in Germany presented a
formidable challenge to political and social stability. In addition
to tougher checks on the EU’s external borders, and a controversial
refugee pact with Turkey, the EU is investing more in the migrants’
countries of origin. The refugees from Syria have been fleeing a
brutal civil war. They are escaping violence, as many also are from
Iraq and Afghanistan, and, in such cases, humanitarian reasons
should always prevail over other considerations. Wars, climate
change, and broader economic and social inequalities are the root
causes of migration flows. While these increases in migration are
all easy to understand, they nonetheless cause issues in the
countries of arrival: integration problems, absorption limits and
skills-mismatches.
Migration is often
associated with poverty, but other factors also drive the
phenomenon, including youth unemployment, climate change and
urbanization. Employment-seeking migration accounts for the biggest
share of intraregional mobility as youth migrate from one country
to another looking for better job opportunities. In the terms of
economic theory, this means that trade and migration are
substitutes – countries with relatively cheaper labor can export
labor-intensive goods or workers. Over time, differences in the
prices of goods and the wages of workers should be reduced with
freer trade, reducing emigration pressures.
1. Base it on
evidence. ...
2. Adopt a
participatory approach. ...
3. Interact
with the target audience. ...
4. Take
advantage of digital media. ...
5. Do not
neglect in-person activities.
5. Growing Influence of Social Media and the Post-truth
World
Social media pose the final major challenge to international
organizations. According to a recent analysis by the Reuters
Institute for the Study of Journalism, 51% of people with online
access use social media as a news source. Social media is the
primary source for news for 44% of smartphone users in the U.S. and
38% in the U.K. (figure 7). Coupled with the proliferation of
so-called fake news, which became so prominent in last year’s U.S.
elections, as well as social media’s favoring of ever shorter and
catchier messages, it is no wonder that many observers are saying
we are living in a post-truth world.
The
global vision that has brought improved travel and trade and
increased interdependency among countries also calls for a common
vision of health around the world. All countries are vulnerable to
the ever-present threats of infectious disease, outbreaks, and
epidemics. At the same time, there are opportunities for shared
innovation and universal purpose as many countries that suffer from
similar disease burdens strive to develop best practices and strong
health systems for their citizens. The leadership of the
Centre has done an outstanding job of restoring organizational
cohesion, morale and stability after a period of internal turmoil
and uncertainty. The Director General, Board of Trustees, the
Senior Management Team and the entire staff deserve credit for this
turnaround and for working together to steadily expand and
strengthen the Centre's output, productivity and impact. IFPRI now
has effective governance. The initiative under way for further
organizational strengthening is a step in the right direction.
keosha answered 1 month ago