Carlos Felipe W.

Mendoza

Globalization and Fragmentation

Globalization may be defined by its elements, actors, sources, consequences,
and mechanisms, but in essence, it is about the exchange of people, products
and processes throughout the world, and about the consequences of that trade
(Bhagwati, 2007; Stiglitz, 2007; Wolf, 2004). Globalization is the interdependence of the
countries economics, culture, and populations because of growing trade in goods and services,
technology, people, and etc. An example of this is a shirt sold in a store. The cotton used to
make the shirt may have come from another country such as Africa then shipped to China. The
cotton is later used to make a plain shirt. That shirt may be shipped to sold as is or is again to be
transported somewhere for T-shirt printing and then sold to you or other customers. This of
course does not apply only to cotton, it also applies to people, technology, products,
information, and etc.

Globalization is much more than changes in international economic relations or building of a

global economy. Globalization may also refer to the “centralization” of culture. As it gets easier
for information and media to spread around the world through the internet or other means,
people are slowly being influenced. A culture may be slowly devaluated because of a constant
stream of information from another culture. This can be seen in the lives of us Filipinos. Every
day we see new media and information from other cultures while slowly losing interest in ours.
People are now more looking forward to buying products from other countries than our own.
We may slowly lose our cultural identities by time. In my opinion, this will affect smaller
economies and cultures faster.

Globalization has three main elements: people, products, and processes. Its three main drivers
are technology, economy, and politics. Technological changes and advancements are vital to
globalization. Newer and modern communication allows for easier connectedness to the world
economy. Economy drives globalization due to its constant need or want of newer markets and
more profit. Last is politics, it is too broad for me to discuss but it is the various interests of
country, its leaders, and its people.

Fragmentation in economic terms refers to the breaking-up of vertically integrated production

processes into various components (Görg, H & Ruane, F, 1999). Fragmentation is the breakup
of the processes in production into various components. Because of this, production is located
in different locations or different countries in the world. Components such as some electronic
parts may be made in Vietnam or some other countries but assembled in China. Fragmentation
can take place across borders or within the same country. Fragmentation does not only apply to
the economy, it can also be applied in the field of culture. Fragmentation is caused by
globalization, this is because some people are afraid that the “global culture” may affect their
traditional values. This is why fragmentation can help contribute to the revival of ethnic and
religious groups, and help nurture nationalism for a nation.

Globalization and fragmentation applies to many aspects in our society. I have given examples
in business related matters but both are found in international political, economic and socio-
cultural system.
Advantages and disadvantages of Globalization
The advantages of globalization are increased employment opportunities, better education,
increased free trade, faster flow of communication, decrease in prices of goods and services,
increased quality of goods and a reduction in cultural barriers. As new companies and old set up
their business in other countries they also create more and better employment opportunities in
the country. Also due to globalization, it has become easier for people to migrate or to move
across borders to acquire a better education. Information can be shared between individuals
and corporations at a very fast rate. It has also facilitated in increasing the ease of transporting
people and goods. As a result of globalization, people have easier access to the best quality of
goods and services around the world. Due to globalization there is a decrease in prices of goods
and services. As the competition in the market has increased due to rapid globalization,
producers have to price their products competitively in order to gain an edge over its
competitors. Reduction in cultural barriers: As people move from one country to another,
barriers between various cultures tend to decrease as various people from various cultures and
traditional interact with one another.

Globalization also has its various disadvantages. This are environmental degradation or
pollution, unfair working conditions for workers, fall in employment growth rate, centralization
of culture, and small businesses face greater competition from other business from foreign
countries.

Advantages and disadvantages of Fragmentation.

The advantages of fragmentation in economic terms are cheaper services and products due to
outsourcing work to other locations or countries. Fragmentation in culture helps preserve
cultures and traditions of ethnic, religious and cultural groups.

The disadvantages of fragmentation in economic area is lowered employment opportunities for

some countries due to work being outsourced to other countries instead. The disadvantages of
fragmentation in cultures and politics are slower rate of exchange of information, and
stagnation of some cultures due to fear of their traditions being affected or influenced.
When, if ever, is political authority justified?
Are we living in the rule of law or rule by law?
Do citizens have a moral obligation to obey?