PROCESSES OF GLOBALIZATION — EFFECTS OF GLOBALIZATION ON

DEVELOPED AND DEVELOPING COUNTRIES DEFINITION/EXPLANATION

PROCESS OF GLOBALIZATION
okay. so lets move on to the Process of Globalization. I'm sure we all know that
globalization drives global interconnectedness but in what way? Louis has
already explained that thoroughly, wherein interconnectedness is achieved
basically through the interaction of different regions around the world! leading
to more significant progress, in which this is the progress which describes the...
continuous development of countries. So what happens in this... progress? we
all know that globalization entails progress but what exactly happens within it?
So, According to IMF or the International Monetary Fund, there are four basic
processes of globalization.

First is International Trade and Transactions, of course Trading is the essence

of Globalization, as said by Louis, it is the speedup of movements and
exchange. and also, globalization first began with trading so it is no doubt the
first process of or step to globalization. Furthermore, trade promotes economic
resilience and flexibility because economies around the world can recover from
a setback it comes across through exchanging goods or services that will help
them get back up. And of course, this is where Exports and Imports come in
too, wherein more Imports offer a wider variety of goods to consumers at
lower prices which also makes businesses want to remain competitive in terms
of how to take advantage of large amounts of customers because of the
lowered prices of their products. whereas more exports means more job
opportunities for mostly developing countries. and combined, imports and
exports make up international trade.

next is Migration and Movement of People Around the World. a great

example of this is the OFWs in which they contribute their skills and knowledge
to other parts of the world, providing more manpower to its businesses and
especially creates a flow of remittances which is an important source of income
for families all over the Philippines.
so a part of Globalization is the exchange of goods and services, but it also
involves cultural exchange as well, which brings us to the next process of
globalization which is The Spread of Knowledge and Culture. Of course, when
we're talking about migrants, we're also talking about bringing their
knowledge and culture to other parts of the world! For example, we all know
that Jollibee is a Filipino restaurant but its branches are all over the world, with
people wanting to curiously try the Filipino food they offer which benefits not
only for our culture to expand and reach towards other areas of the globe but
also the economic growth of our country, Philippines, in terms of creating more
job opportunities.

And of course, the Capital and Investment Activities, globalization is formed

when there's investments involved. it's driven by investments and international
trade because it creates a greater interconnectedness among markets around
the world. Countries that have a good relationship in terms of their
transactions are able to unify their economies by more effective and efficient
trading and investments, a great example is NAFTA or the North American Free
Trade Agreement which was a trade pact that gradually eliminated most tariffs
on the products and services that circulate through the United States, Mexico,
and Canada.

IMPORTANCE OF GLOBALIZATION
So, let's proceed to the Importance of Globalization. first off, we have
Interdependence. Through globalization, countries can depend on each other
through the means of, for example, trading. There are certain goods that
countries cannot produce that efficiently, or does not have the same high
quality as much as other countries do. So, these countries depend on each
other to fill the gaps of what they lack which results in a more stable economy
in not just one, but on all the countries involved.
Globalization also creates Job Opportunities which we all know is very
important in making our economy more stable. Because globalization entails
economic growth, this has also enabled consumers to spend more on products
and services, increasing its demand which requires an increase in production
and eventually, needing more manpower which will create more Job
Opportunities.

Moreover, Globalization is also important because it Increases the Standard of

Living, it's all connected naman diba? globalization lowers the prices of
products through more imports, which creates more job opportunities because
of demand, and through these jobs, people can better sustain and improve the
life they are living.

Next is it brings more Variety. As i mentioned before, more imports offer a

wider variety of products to consumers, which not only entails cultural
exchange for the people but also opportunities for business owners to take
advantage of these various products, such as making products that similarly
depict the appearance or characteristics of those imported products too to
create more demand or to create more varieties of it which only further
increases competition between firms which is good.

lastly, globalization means more Global Cooperation. This is connected to the

first one which is Interdependence wherein areas all around the globe will
always end up cooperating with each other because of globalization to create a
more stable economy for themselves and a constant development or growth in
their country.
next, let's move on to THE EFFECTS OF GLOBALIZATION ON DEVELOPED AND
DEVELOPING COUNTRIES

first is the Spread of Technology and Knowledge, a great example of this is

how we, a developing country, depended on a more developed country for
vaccines during the COVID-19 Pandemic. Their Research and Technology are
more improved compared to ours, spreading their knowledge and technology
throughout the far corners of the world which helped the countries and its
people rise from the setbacks of the pandemic.

and of course, again, Globalization Lowers the Costs of Products which mostly
helps the developing countries because the more they import, the more the
prices lower, making it easier for consumers in developing countries to buy the
goods they need or want. As for developed countries, it further develops their
improvement in the market because more and more people are buying their
products throughout the globe the more they invest in or export to those
developing countries.

Although yes, it lowers the costs of products, Globalization also has its
downsides. Lower prices of products can also result in Cheap Labor which has a
significant effect especially in developing countries because, for example,
Filipino famlies mostly depend on remittances from their relatives abroad, this
is either because of the unavailability of jobs in the Philippines or the low
salary which forces Filipinos to become OFWs and contribute their skills and
knowledge to other countries instead of the Philippines.

Next is Market Dominance. This is good for Developed countries but not as
good for Developing countries because products made by *Developed*
countries dominate the market which is good for them but it also doesn't make
much room for the products that are made by developing countries to gain that
much attention.
Though, despite this, globalization can still Solve Poverty Problems somehow
because there's always going to be improvement in the different areas that are
within a country. We wouldn't be where we are today if not for Globalization.