Globalization

Globalization is a series of actions by which a state starts to develop a relationship with other
countries. It is primarily a method of interaction and integration that is associated with social and cultural
aspects.

Globalization is the process by which ideas, goods and services spread throughout the world. It
may be pictured as the threads of an immense spider web that you need to connect to several nations in
order to know what’s cooking globally. Furthermore, it is the process of expanding awareness on a
global scale. Whenever global network is increased through interaction, integration and dependency
amongst nations, growth in international trade and the exchange of ideas and culture goes with it.

“The more that disparate regions of the world become intertwined politically, culturally and
economically, the more globalized the world becomes.”
– Margaret Rouse

International trade relations are aided by advances in technology, especially in infrastructures and
telecommunications. In spite of this, language barrier plays a role in slowing down progress in other
remote countries.

History

People have been trading goods since civilization began. In the 1 st century BC, there was the
transportation of goods from China to Europe. The goods transportation took place along the Silk Road.
The Silk Road Route was very long in distance. This was a remarkable development in the history of
Globalization. This is because, for the first time ever, goods were sold across continents. Globalization
kept on growing gradually since 1st BC.

Another significant development took place in the 7 th century AD. This was the time when the
religion of Islam spread. Arab merchants led to a rapid expansion of international trade. By the 9 th
century, there was the domination of Muslim traders on international trade. Moreover, the focus of trade
at this time was spices. Spice was utilized in mummification and not just in food preservatives.

True Global trade began in the Age of Discovery in the 15 th century. The Eastern and Western
continents were connected by European merchants. There was the discovery of America in this period.
Consequently, global trade reached America from Europe.

From the 19th century, there was a domination of Great Britain all over the world. There was a
rapid spread of international trade. The British developed powerful ships and trains. Consequently, the
speed of transportation greatly increased. The rate of production of goods also significantly increased.
Communication also got faster which was better for Global trade.

In Asia, trading route was established between Spanish America and China through the discovery
of a “return route” from Manila, Philippines to Acapulco, Mexico by Andres de Urdaneta in 1565. This
trading route was later used by the Manila–Acapulco Galleon Trade that lasted until 1815.

Chinese merchants traveled to Manila, Philippines to sell products and commodities, which were
then transported to the Americas through the galleons, and silver was used as the medium of exchange.
 In 20th and 21st–century, Globalization took its ultimate form. Above all, the development of
technology and the internet took place. This was a massive aid for Globalization. Hence, E-commerce
plays a huge role in Globalization.

Contributions to Social and Economic Development

Globalization aims to benefit individual economies around the world by:

a) Making markets more efficient. The more efficient a brand is, the more it would ascend in economic
hierarchy.
b) Increasing competition. Every manufacturer would be hard on research to out best other competitors
to move high in the corporate ladder.
c) Spreading wealth more equally. As the network of clientele spread globally, not concentrated on a
particular region, financial gain would follow.

Globalization has benefits many different areas. It reciprocally developed economies all over the
world and increased cultural exchanges. It also allowed financial exchanges between companies,
changing the paradigm of work. The origin of goods became secondary and geographic distance is no
longer a barrier for many services to happen.

During the Spanish Colonial Era in the Philippines, plow-and-carabao farming was first introduced
by the Jesuit Missionary Orders in the archipelago and new crops from the West such as cabbage,
lettuce, corn, tomato, potato etcetera were tried out on Philippine soil. In return, locally produced from
the Philippines were brought abroad. In this process, products were introduced in different parts of the
world.

In the modern era, manufacturers can sell their commodities at a lower price for the reason that
these companies may import products from other countries on which the main factory was based.
Through this exchange, it will cut down their expenses on constructing factories, acquiring modern
machineries and hiring manpower.

On the other hand, investors that spent money on constructing assembly lines (factories) and
hiring human resources like in the case of the several industrial parks in the southern parts of the
Philippines (Laguna, Batangas and Cavite), and Pampanga, Bataan and Zambales in the northern parts
of the Philippines were in-charge of supplying merchandize to their branches elsewhere, thus, creating
jobs to their huge labor force.

Limitations of Globalization as it is Currently Implemented

Inequality

Globalization leads to inequalities for some reason. As investors continue to flock to highly-
urbanized region, economy will continue to increase due to modern infrastructures and efficient
telecommunication system leaving their remote rural counterparts.

Inflation

As the company continues develop new technology and increasing sales, job-hunters would
congregate to that particular “promise land” to try their luck. Thus, strong demand for food and basic
necessities would cause a rise in commodity prices.
 Unemployment

Ricefields were converted into an industrial area (e.g. Laguna International Industrial Park (LIIP)
in Biñan, Laguna) and some turned into housing subdivisions. As factories mushroom, labor migration
follows to supply manpower leaving the farmers with nothing to plow so were those unskilled and
persons with minimal education acquired.

As Globalization escalates, global transformation is inevitable.

“There will be two types of businesses in the next 5 years, those that are on the Internet, and
those that are out of business”.

– Bill Gates, owner and former CEO of Microsoft

“Imagine there’s no countries, it isn’t hard to do. Nothing to kill or die for and no religion too.
Imagine all the people living life in peace. You may say I’m a dreamer, but I’m not the only one. I hope
someday you will join us and the world will be as one”.

– John Lennon, member of the music band The Beatles