Contemporary world

Eder, Jhon Mark M. BSCE II-B

INDICATORS OF GLOBALIZATION

1. Increased cross-border trade of goods and services

refers to the growth of trade between countries, facilitated by improvements in transportation,

communication, and technology. This leads to a greater exchange of goods and services between
countries, leading to increased economic interdependence and globalization.

2. Increased foreign direct investment (FDI)

Increased FDI indicates a growing globalization of economies and businesses, as companies seek to
tap into new markets and resources.

3. Greater flow of information, technology, and culture across borders

The greater flow of information, technology, and culture across borders refers to the increasing
ease of sharing and exchanging information, technology, and cultural practices between countries
as a result of advances in communication and transportation technology.

4. Greater interconnectivity and interdependence of national economies

Greater interconnectivity and interdependence of national economies refers to the increasing

interconnectedness and dependence of different countries' economies on each other.

5. Growing role of multinational corporations

The growth of multinational corporations is driven by globalization, which has made it easier for
companies to expand their operations into new markets and access new resources.

6. Expansion of international institutions and agreements

The expansion of international institutions and agreements refers to the growth in the number and
scope of international organizations and agreements aimed at addressing global issues and
promoting cooperation between nations.

7. Rising immigration and cultural exchange.

The rise in immigration and cultural exchange is a result of globalization, and reflects the
growing interconnectedness of the world and the increasing ease of movement and exchange
across borders.

NATURE OF GLOBALIZATION

Globalization is the process of increasing interconnectedness and interdependence between countries in

terms of trade, investment, finance, culture, and technology. It is driven by advances in communication
and transportation technology, the growth of international institutions and agreements, and the
increasing role of multinational corporations. The nature of globalization is complex and multifaceted, and
its effects can be both positive and negative. On the one hand, globalization has brought significant
benefits, such as increased economic growth and prosperity, greater access to markets and resources, and
the spread of technology and knowledge. On the other hand, globalization can also lead to unequal
distribution of benefits and burdens among nations, cultural conflicts, and pressure on the environment.
Overall, the nature of globalization is characterized by its dynamism, diversity, and the ongoing debate
over its benefits and drawbacks.

DIMENSION OF GLOBALIZATION

Economic: This dimension refers to the increasing interconnectedness of national economies through
trade, investment, and financial flows.
Political: This dimension refers to the increasing role of international institutions and agreements in
shaping global economic and political systems, as well as the growing influence of multinational
corporations.

Cultural: This dimension refers to the increasing flow of information, technology, and cultural practices
across borders, and the resulting impact on cultural diversity and exchange.

Technological: This dimension refers to the increasing integration and exchange of technology between
countries, and the role of technology in driving globalization.

Environmental: This dimension refers to the impact of globalization on the environment, including issues
such as climate change, deforestation, and pollution.

Social: This dimension refers to the impact of globalization on social and economic inequality, as well as
on cultural and political identity

REASONS OF GLOBALIZATION

Technological advancements: Advances in communication and transportation technology have made it

easier for countries to connect and exchange goods, services, and ideas.

Liberalization of trade and investment: The reduction of trade and investment barriers, such as tariffs and
quotas, has facilitated the flow of goods, services, and capital across borders.

Expansion of international institutions and agreements: The growth of international institutions, such as
the World Trade Organization, and the conclusion of trade agreements, such as the North American Free
Trade Agreement, have facilitated the integration of national economies.

Growth of multinational corporations: The expansion of multinational corporations has enabled companies
to access new markets and resources, and to shape global economic and political systems.

Political and economic instability: Political and economic instability in some countries has led people to
seek better opportunities and living conditions in other countries.

Pursuit of cheaper labor and resources: The pursuit of cheaper labor and resources has driven companies
to move production to countries where costs are lower.

STAGES OF GLOBALIZATION

Early globalization (1400-1800): This stage was characterized by the growth of trade and the expansion of
empires, including the European colonial era. It was driven by technological advancements, such as the
invention of the compass and the printing press, and facilitated by the discovery of new trade routes, such
as the Silk Road and the maritime routes to Asia.

Industrialization (1800-1945): This stage was characterized by the growth of industrial production and the
expansion of trade. It was driven by technological advancements, such as the steam engine and electricity,
and facilitated by the development of new transportation and communication technologies, such as the
railroads and telegraph.

Post-World War II globalization (1945-1980): This stage was characterized by the growth of international
trade and investment, and the expansion of international institutions, such as the International Monetary
Fund and the World Bank. It was facilitated by the growth of multinational corporations and the
increasing interdependence of national economies.

Contemporary globalization (1980-present): This stage is characterized by the rapid growth of information
and communication technology, the increasing globalization of financial markets, and the growth of
international institutions and agreements. It has facilitated the integration of national economies and has
led to the increasing interdependence of countries and cultures.

MERITS & DIMERITS

Merits of globalization:

Increased economic growth and development: Globalization has led to increased economic growth and
development through increased trade, investment, and competition.

Job creation and higher wages: Globalization has created new job opportunities and improved working
conditions in many countries, especially in emerging economies.

Improved standard of living: Globalization has led to greater access to goods and services, and improved
living standards for many people around the world.

Greater cultural exchange and understanding: Globalization has facilitated the flow of information, ideas,
and cultural practices, promoting greater cultural exchange and understanding.

Increased competition: Globalization has increased competition, leading to improved efficiency, lower
prices, and better quality goods and services.

Demerits of globalization:

Income inequality: Globalization has led to increasing income inequality, both within countries and
between countries.

Loss of jobs: Globalization has led to the loss of jobs in some industries, as companies move production to
countries with lower labor costs.

Cultural homogenization: Globalization has led to the spread of similar cultural practices and values,
which may erode local cultural diversity.

Environmental degradation: Globalization has led to increased pollution and resource depletion, as
companies seek to exploit natural resources in different countries.

Exploitation of workers: Globalization has led to increased exploitation of workers in some countries, as
companies seek to reduce labor costs.