CHAPTER I

Introduction of Globalization
Globalization is the process by which the world, previously isolated through
physical and technological distance, becomes increasingly interconnected. It is
manifested by the increase in interaction between peoples around the world that
involves the sharing of ideas, cultures, goods, services and investment.
The last sixty years have witnessed a huge increase in globalization, but the
phenomenon has been going on for much longer. Thomas Friedman describes the
current trend as the third great wave of globalization in human history.
Globalization implies the continuing expansion and intensification of economic,
political, social, cultural and judicial relations across borders. It is furthered by
reductions in transportation and communication costs, the rise of new information
technologies, such as the internet, and liberalizations in the markets for goods, services,
labor, capital, and technology. Although it also occurs within existing legal structures,
globalization in many cases involves political decisions about deregulation, free trade,
and the integration of markets. It changes the life styles and living conditions for people
around the world, presenting new opportunities to some, but risks and threats to
others. Individuals, firms, governments, and transnational organizations that are lifted
out of the framework of the nation state, like the World Bank, United Nations, the
European Union, and multinational firms all face challenges of how to respond to
globalization. The present volume provides important information to private and public
decision makers who are choosing strategies for production, investment, and public
policy in the increasingly globalized society.

Six Core Claims of Globalization

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