ORIGIN OF WORD “GLOBALIZATION”

Globalization derives from the word globalize, which refers to the emergence of an
international network of economic systems. The term globalization had been used in its
economic sense at least as early as 1981, and in other senses, probably as early as
1944.

HISTORY
From ancient trade routes to the formation of international organizations, the exchange
of ideas and trade has, in one way or another, existed as long as us.

There is some debate about what stage in history we should call the beginning of
globalization. Some believe that globalization has been around since human migratory
routes were formed (as early as the 1st century BC). Certainly, humans have been
trading goods forever, but when it comes to moving goods across borders, the creation
of the Silk Road is widely acknowledged to be one of the earliest large-scale examples
of globalization.

The Silk Road was a trade route between China and Europe which saw Chinese goods
being sold in Europe for the first time. From spices to silk, early global trade routes
thrived over land and sea into the 14th century, but it was at the end of the 15th century
when global trade truly took off in the Age of Discovery.

During this time, European explorers linked the East and West and discovered the
Americas, and now common-place foods like potatoes, tomatoes, coffee, and chocolate
became available in Europe.

DEFINITION OF GLOBALIZATION
Globalization is the process whereby the world’s people are becoming increasingly
interconnected in all facets of their lives—cultural, economic, political, technological,
and environmental”

What are the different types of globalization?

Despite the common understanding of globalization as a solely economic or financial
concept, globalization relates to our lives in a wide variety of ways. Ideas and traditions
from around the world are traded as cultural globalization, and we fly from country to
country freely due to geographical globalization.
Examples of Globalization

Economic globalization
The ongoing development of processes, seizing of opportunities, and solving of the
challenges of economic activity around the world. Examples include the spread of
capitalism, an increase in market trading and exports, and the forming of global
economic policies.

Cultural globalization
The sharing and trading of cultural beliefs, traditions, and ideas. Examples of this
include the rise of K-Pop (Korean pop music).

Digital globalization
The sharing of data and information on digital platforms speeds up and improves how
we connect to people around the world. Examples include big tech platforms like
Facebook, Instagram, and YouTube.

 E-commerce is electronic business transactions conducted by systems such as the

internet or mobile
 E-tailing is a type of retailing that consumers can purchase products or services using
electronic systems such as the internet or mobile

Financial globalization
The rise in global financial systems and the exchange of money globally. Examples
include the global stock market, which relies on the economy as a whole and where a
decline in one market has a knock-on effect on others.

Geographic globalization
The ever-changing organization of different regions and countries around the world.
Examples include the sharing of visas between certain countries which enable people to
work, live, and travel easily in countries other than their own.

Political globalization
The development and influence of international organizations which decide on actions
and laws at an international level. Examples of such organizations include the European
Union, the UN, and even the World Health Organization.
Ecological globalization
Refers to the growing movement towards seeing the Earth (and its upkeep) as a single
entity for which we must all be responsible. Examples include the COP26 summit which
saw countries from around the world come together to tackle climate change as one
global team.

Globalization has both positive and negative effects.

Positive Effects of Globalization
1. Economic Advancement: Globalization leads to economic growth and
prosperity. It boosts output in countries, raises productivity, creates more jobs,
and lowers prices of products in the world economy
2. Poverty Reduction: It has contributed to poverty reduction by increasing the
volume of trade and creating new jobs
3. Cultural Diversity and Tolerance: The increased flow of people across borders
has enabled societies to experience diverse perspectives and embrace
multiculturalism
4. Technological Advancement: The rapid spread of technological advancements
is another hallmark of globalization
5. Improved Standards of Living: Access to a broader range of goods and
services from different parts of the world has become more accessible to people
at varying income levels
Negative Effects of Globalization
6. Increased Competition: Globalization results in increased trade and lower
prices, heightening competition within domestic product, capital, and labor
markets
7. Environmental Impact: The increased transport of goods as a result of
globalization can have negative effects on the environment
8. Inequality: While globalization can lead to economic growth, it can also increase
inequality within and between nations
It’s important to note that the impacts of globalization can vary widely depending on a
variety of factors, including a country’s political and economic policies, its level of
development, and its specific circumstances.