Globalization

Globalization
 Globalization is a process of integration & interaction among the
peoples, companies and government of different nations. It is a
process driven by international trade & investment and supported
by advancement in transport system & information technology(ICT).
This process has effect on environment, culture, political systems,
economics development, prosperity, and human well-being in
societies around the world.
According to IMF, “globalisation is the growing economic
interdependence of countries worldwide through increasing volume
and variety of the cross boarder transactions in goods & services
and of international capital flows,
 and also through the more rapid and widespread diffusion of
technology”.
Globalization is the worldwide process of homogenizing prices,
products, rate of interest & profit. Globalization relies on three
forces for development:
-the role of human migration,
-international trade
-and rapid movement of capital and integration of financial
markets.
Globalization is primarily of three types:
1.Economic Globalization
2. Cultural Globalization
3. Political Globalization.

1.Economic Globalization:
No national economy is an island now. To varying degrees, national
economies influence one another. One country which is capital-rich
invests in another country which is poor. One who has better
technologies sells to others who lack such technologies. Thus,
globalization is predominantly an economic process involving the
transfer of economic resources from one country to another.
2. Cultural Globalization:
Culture has increasingly become a commodity. Popular books, films,
music, songs etc.. have international markets.
 Traditional & big cultural events are means of attraction of tourist.
This global flow of ideas, knowledge & values is likely to flatten out
the cultural differences between nations, regions& individuals.
3. Political Globalization:
Since long, efforts has been on to bringing the whole world under
one government. It is believed that the world under one government
will be safer freer from conflicts. The UN has been the efforts in that
direction. Globalization encompasses the following:
-Doing/planning to expand business globally,
-giving up the distinction between domestic and foreign market and
developing a global outlook of the business,
 -Locating the production and other physical facilities on a
consideration of the global business dynamics, irrespective of
national consideration,
- Basing product development & production planning on the
global market considerations,
- Global sourcing of factor of production from best sources
anywhere in the world,
- Global orientation of organizational structure &
management culture.
 Benefit of Globalization:
1. Wider market for domestic products,
2. Flow of foreign investment,
3. Technological development,
4. Utilization of domestics resources,
5. Increase in standard of living,
6. Employment opportunity.

Demerits of globalization:
a. Unequal competition,
b. Danger in national sovereignty,
c. Loss of domestic markets,
d. Inequality,
e. Unemployment,
f. Environmental pollution,
g. Cultural degradation.