Meaning of Globalization | Types, Importance, and Benefits

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In this session, we will discuss the meaning of globalization, and the advantages of Globalization, the disadvantages of Globalization, the features of Globalization, the types of Globalization, and the importance of Globalization.

Meaning of Globalization

The meaning of globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. The process has effects on the environment on culture on the political system on economic development and prosperity and on human physical well-being in societies around the world.

The term globalization has therefore four parameters.
  1. Reduction of trade barriers to permit free flow of goods & services among the nation-state.
  2. Creation of environment in which free flow of capital can take place among nation-state.
  3. Creation of environment, permitting free flow of technology.
  4. Last but not the least, from the point of view of developing countries, the creation of an environment in which free movement of labor can take place in different countries of the world.

According to the World Health Organization globalization or the increased interconnectedness and interdependence of people and countries is generally understood to include two interrelated elements. The opening of international borders to increasing fast flows of goods, services, finance, people, and ideas, and the changes in institutions and policies at national and international levels facilities or promote such flow. Globalization has the potential for both positive and negative effects on development and health. (meaning of globalization).

In the session on the meaning of globalization, we will also discuss the advantages of globalization.

The advantages of globalization can be dedicated to the following points.

Cheaper goods and services for consumers:- Globalization encourages both producers and consumers to benefits from trade, based on the division of labor, specialization in comparison to advantage theory. Trade and globalization can lead to cheaper goods and services for consumers. Which increases in terms of incomes increased in profits in business.

More competition in consumer markets:- Globalization can make domestic markets more contestable. Contestability reduces monopoly. (meaning of globalization)

Reduction in extreme poverty rates:- Globalization has been associate with the contribution to a significant fall in extreme poverty.

Gains from the specialization of factors of production:- Essentially the idea that you build deeper division of labor and you build global supply chains to optimize factors of production worldwide in the things that you best at.

Transfer ideas stimulate innovation:- Globalization has brought dynamic efficiency gains flowing from sharing, the fusion, transfer of ideas, skills, technologies and that stimulates the process of innovation.

Gain from improved labor mobility:- The gains also from the movement of labor between countries, nations, cross-border, and labor migration. Increasing the stock of labor in different countries and also making the labor force more diverse.

In the session on the meaning of globalization, we will also discuss the disadvantages of globalization.

The advantages of globalization can be dedicated to the following points.

Trade imbalance:- Seeing the world economy increasing imbalances in trade. Some countries may benefit from this trade imbalance, but other countries are suffering persistent structural trade deficits. (meaning of globalization)

Dominant TNF and less cultural diversity:- Emergence of the dominant global brand, the business which has significant burns. They could be squeeze out the local producers and perhaps move in more standardized as much as global world branded products.

Corporate tax avoidance:- In a world where corporations are finding any ways to avoid paying tax, for example through shadow pricing, through manipulating their cash flows to countries, where corporate taxes, in particular, are lower.

External costs from unsustainable growth:- The challenges and threats to the environment. Extraction of raw materials, increased air pollution, trading taxi waste. The collapsing of diversity, the massive challenge of increased concentration of co2 and no2 emissions. These are huge issues of the age. (meaning of globalization)

Growing relative poverty:- Increased relative poverty in many countries. Which extreme poverty has come down gone up in many countries.

Brain drain effects:- Disadvantages for some countries who lose population. So they may suffer depopulation effect. The loss of younger often skilled workers looking for better work, better pay in other countries.

In the session on the meaning of globalization, we will also discuss the types of globalization.

The types of globalization can be dedicated to the following points.
  1. Economic globalization
  2. Political globalization
  3. Cultural globalization
  4. Technological globalization
  5. Sociological globalization
  6. Geographical globalization
  7. Ecological globalization
  8. Financial globalization
Meaning of Globalization | Types, Importance, and Benefits

Economic globalization:- It refers to the increasing interdependence of world economics as a result of the growing scale of cross-border trade of commodities and services, the flow of international capital, and the wide and rapid spread of technologies. (meaning of globalization)

Political globalization:- It refers to the growth of the worldwide political system, both in size and complexity.

Cultural globalization:- It refers to the transmission of ideas, meanings, and values around the world in such a way as to extend and intensify social relations.

Technological globalization:- It is the speed in large part by technology across borders. Globalization makes the structuration of new forms and types of groups, and social relationships a key conceptual problem for sociology. (meaning of globalization)

Geographical globalization:- It is referred to intensified geographical movements across national borders of commodities, people seeking employment, money and capital investment, knowledge, cultural values, and environmental.

Ecological globalization:- It is referred to global environmental issues including, population growth, access to food, worldwide reduction in biodiversity, the gap between rich and poor.

Financial globalization:- It is the integration of financial markets of all countries of the world into one. The world’s financial systems have become intimately interconnected, the stock market trading in the new york stock exchange can affect Tokyo and Hong Kong.

Sociological globalization:- A single “world” society exists having one set of values, beliefs, like the agreement of different societies about the horror that terrorism brought. (meaning of globalization).

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