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Published by Erin Parker
Globalization in short is how our world is becoming more and more like one country each and every day
Globalization in short is how our world is becoming more and more like one country each and every day

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Published by: Erin Parker on Dec 11, 2009
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Globalization in short is how our world is becoming more and more like onecountry each and every day.There are several definitions and all usually mention theincreasing connectivity of economies and ways of life across the world. TheEncyclopedia Britannica says that globalization is the "process by which the experienceof everyday life ... is becoming standardized around the world." While some scholars andobservers of globalization stress convergence of patterns of production and consumptionand a resulting homogenization of culture, others stress that globalization has the potential to take many diverse forms.In economics, a broad definition is that globalization is the convergence of prices, products, wages, rates of interest and profits toward developed country norms.[2]Globalization of the economy depends on the role of human migration, internationaltrade, movement of capital, and integration of financial markets. The InternationalMonetary Fund notes the growing economic interdependence of countries worldwidethrough increasing volume and variety of cross-border transactions, free internationalcapital flows, and more rapid and widespread diffusion of technology.Theodore Levitt isusually credited with globalization's first use in an economic context.Any material not supported by sources may be challenged and removed at any time. Thisarticle has been tagged since April 2007.
Globalization has various aspects which affect the world in several different ways:
Industrial (alias trans nationalization) - emergence of worldwide productionmarkets and broader access to a range of goods for consumers and companiesFinancial - emergence of worldwide financial markets and better access to externalfinancing for corporate, national and subnational borrowersPolitical - spread of political sphere of interests to the regions and countries outside theneighbourhood of political (state and non-state) actors and the potential formation of aglobal citizens movementInformational - increase in information flows between geographically remotelocations Cultural - growth of cross-cultural contacts; advent of new categories of consciousness and identities such as Globalism - which embodies cultural diffusion, thedesire to consume and enjoy foreign products and ideas, adopt new technology and practices, and participate in a "world culture". Ecological- the advent of globalenvironmental challenges that can not be solved without international cooperation, suchas climate change, cross-boundary water and air pollution, over-fishing of the ocean, andthe spread of invasive species.Globalization has become identified with a number of large trends, most of which mayhave developed or accelerated since World War II. These include the greater internationalmovement of commodities, money, information, and people; and the development of technology, organizations, legal systems, and infrastructures to allow thismovement.Greater international cultural exchange,Spreading of multiculturalism, and better individual access to cultural diversity. 
Development of a global telecommunications infrastructure and greater transborder data flow, using such technologies as the Internet, communication satellites,submarine fiber optic cable, and wireless telephonesIncrease in the number of standards applied globally; e.g. copyright laws, patents andworld trade agreements.The push by many advocates for an international criminal courtand international justice movements.
Promotion of free trade
Reduction or elimination of tariffs; construction of free trade zones with small or no tariffs Reduced transportation costs, especially from development of containerizationfor ocean shipping. Reduction or elimination of capital controlsReduction, elimination, or harmonization of subsidies for local businessesIntellectual property restrictions Harmonization of intellectual property laws across themajority of nations, with more restrictions. Supranational recognition of intellectual property restrictions (e.g. patents granted by China would be recognized in the UnitedStates)Globalization can also be defined as the internatonalization of everything relatedto different countries [Internationalization however, is a contrasted phenom to that of Globalization.
Historical precedents
The term "globalization' was coined in the latter half of the twentieth century, andthe term and its concepts did not permeate popular consciousness until the latter half othe 1980s. Various social scientists have tried to demonstrate continuity betweencontemporary trends of globalization and earlier periods.Globalization is a centuries long process, tracking the expansion of human population and the growth of civilization, that has accelerated dramatically in the past 50years. Earlier forms of globalization existed during the Mongol Empire, when there wasgreater integration along the Silk Road. Global integration continued through theexpansion of European trade, as in the 16th and 17th centuries, when the Portuguese andSpanish Empires reached to all corners of the world. The effects on European industrieswere notable, e.g. the Silver Mining in Schwaz, Austria was partly abandoned, as silver was available from the Spanish colonies for lower prices.Globalization became a business phenomena in the 17th century when the firstMultinational was founded in The Netherlands. During the Dutch Golden Age the DutchEast India Company was established as a private owned company. Because of the highrisks involved with the international trade, ownership was divided with Shares. TheDutch East India Company was the first company in the world to issue shares, animportant driver for globalization.
Globalization in the era since World War II has been driven by advances intechnology which have reduced the costs of trade, and trade negotiation rounds,originally under the auspices of GATT, which led to a series of agreements to removerestrictions on free trade. The Uruguay round (1984 to 1995) led to a treaty to create theWorld Trade Organization (WTO), to mediate trade disputes and set up a uniform platform of trading. Other bi- and trilateral trade agreements, including sections of Europe's Maastricht Treaty and the North American Free Trade Agreement (NAFTA)have also been signed in pursuit of the goal of reducing tariffs and barriers to trade.The world increasingly is confronted by problems that can not be solved byindividual nation-states acting alone. Examples include cross-boundary air and water  pollution, over-fishing of the oceans and other degradations of the natural environment,regulation of outer-space, global warming, international terrorist networks, global tradeand finance, and so on. Solutions to these problems necessitate new forms of cooperationand the creation of new global institutions. Since the end of WWII, following the adventof the UN and the Bretton Woods institutions, there has been an explosion in the reachand power of Multinational corporations and the rapid growth of global civil society.TheGlobal scenario group, an environmental research and forecasting organization, viewsglobalization as part of the shift to a Planetary Phase of Civilization, characterized byglobal social organizations, economies, and communications. The GSG maintains that thefuture character of this global society is uncertain and contested.
Measuring globalization
Looking specifically at economic globalization, it can be measured in differentways. Goods and services, e.g. exports plus imports as a proportion of national income or  per head of population .Labor/people, e.g. net migration rates; inward or outwardmigration flows, weighted by population .Capital, e.g. inward or outward directinvestment as a proportion of national income or per head of populationTechnology, e.g. international research & development flows; proportion of populations(and rates of change thereof) using particular inventions (especially 'factor-neutral'technological advances such as the telephone, motorcar, broadband)To what extent a nation-state or culture is globalized in a particular year has until mostrecently been measured employing simple proxies like flows of trade, migration, or foreign direct investment, as described above. A multivariate approach to measuringglobalization is the recent index calculated by the Swiss Think tank KOF. The indexmeasures the three main dimensions of globalization: economic, social, and political. Inaddition to three indices measuring these dimensions, an overall index of globalizationand sub-indices referring to actual economic flows, economic restrictions, data on personal contact, data on information flows, and data on cultural proximity is calculated.Data are available on a yearly basis for 122 countries. Myanmar the Central AfricanRepublic and Burundi.

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