M.

SARFRAZ KHAN (Roll#41)

Summary for Globalization

The phrase “World has become a global village” is very common now a days. The multinationals
also stress upon “Think global”. These concepts relates to the globalization process that refers
towards an ongoing process by which regional economies, societies, and cultures have become
integrated through a globe-spanning network of communication and execution. The concept
was first described by Charles Taze Russell in 1897 but the term was widely used after 1960s.

There were four aspects of globalization as indicated by the presenters i.e. economic aspects
are the economic integration of the world economies that is said to lead the world toward
prosperity and economic excellence. Environmental aspects such as global warming etc also
lead to the unification of the world to think about the whole world about environmental issues.
Political aspects of the globalization stress upon the cross country political cooperation and
understanding of other political systems of the globe and the last cultural and social aspects of
the globalization relate to the understanding of the other cultural norms and social patterns.

The history of the globalization is very much old indeed starting from the colonizing the people
in other regions of the world as the British did. Australia and America were colonies of the
Europe in the beginning. Moreover, golden Islamic age also laid the foundation for the
globalization as the Muslim traders and preachers travelled across the world to trade and
spread their ideology. In British Empire the East India Company and various other companies
exploited the potential and richness of the sub continent but this thing also contributed
towards the concept of globalization. After World War II, the evolution of the global financial
institution such as IMF and World Bank also led towards the unification of the world. The recent
developments include the inauguration of WTO and European Union.

The things contributed towards the globalization also include free trade areas under different
treaties as NAFTA, SAFTA etc; evolution of the custom unions and alliances; development of
common markets and economic unions. European Union is the most popular example of all
this.

The global institutions supporting this concept are WTO main function of which is to liberalize
trade, elimination of various quotas and settlement of trade disputes among the countries of
the world; and IMF which formed 1944 as result of Bretton woods conference to oversee the
monitory issues of the world and supporting the under developed countries by providing them
loans; and UNCTD United Nations Conference on Trade and Development established in 1964
M. SARFRAZ KHAN (Roll#41)
as a permanent intergovernmental body. It is the principal organ of the United Nations General
Assembly dealing with trade, investment, and development issues

The most quoted example of the financial and economic integration is European Union which
constitutes 27 member countries sharing common currency (for 16 countries), monetary policy,
trade mechanism, and foreign policy.

Companies go global because they want to be reactive as to respond to the low trade barriers,
customer demand in global market, local competition etc or some companies adopt proactive
approach to exploit growth opportunities, economies of scale and recourse assess and cost
saving such as utilizing the cheap labor force.

The hurdles faced by the globalization process on its way are political and regulatory constraints
of each country, currency and market differences, cultural and social disparity, ethical and
environmental perspectives which largely are country specific.

Some talk about the fruits of the globalization that can be reaped in the shape of economic and
political excellence and other have some reservation regarding the destructive effects of the
globalization on the world as it is argued that the all upsides are for the developed countries
who are so called drivers of the globalization, moreover the biased role of the IMF and World
Bank toward the less developed courtiers also raise the question. Some people are of the view
that bubble of the globalization is a conspiracy of the Jews to take over the world and its
resources which are concentrated in less developed Muslim countries.