Globalization is a historical process of global combination in the economic, political, technological, social and cultural fields, which has made the world an increasingly interconnected place. In that sense, this process is said to have made the world a global village
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Types of Globalization
Therefore economic globalization involves creating a world market that does not contemplate tariff barriers to allow the free effort of capital, be it financial, commercial or productive.
The emergency of economic blocs, that is, countries that associate to promote trade relations. As is the case with Mercosur or the European Union, is the result of this economic process. Economic globalization intensified more in the 21st century, impacting the labour market and international trade.
Globalization has fostered the creation and development of different mechanisms to respond to and solve endless problems that have become global and affect us all. Some examples of this are climate change, scarcity rates, and the use of natural resources.
For this reason, international organizations have been created, for example, the United Nations Organization (UN), to face these problems and offer the best possible solution.
Technological globalization includes access to information, the Internet and the media, and the various technical and scientific advances in the industrial and health areas.
Cultural globalization has been generate due to international relations derived from exchanging information, technology, economy, and tourism, among others.
Expanding consumer markets and exchanging cultural goods and facilities have been important influences on countries and societies through cinema, television, literature, music, gastronomy, style, theatre, museums, etc.
Social globalization is characterize by the defence of equality and fairness for all human beings. Considering this sense, it can be confirmed that a globalized world, in the social sphere. Remains one in which all human beings are careful equal regardless of their social class, religious beliefs, or cultures.
Characteristics of Globalization
- Internationalization of markets: Goods and services travel quickly to any part of the world, and productive, commercial and also financial capitals circulate freely.
- Implementation of global culture: Communities that have never been in contact with each other are link, pushing them towards a new model of culture. Which leads to the adoption of similar customs, values and also artistic expressions throughout the world.
- Dependence on the new ICTs: The Internet and telecommunications are crucial to the global model. Since operations are carried out in record time worldwide.
- Overcoming geographical barriers: The end of borders and the structure of a global society is the final purpose of the globalization process. So its operations do not pay much care to national boundaries or nationalities.
Causes of Globalization
The Fresh World Geopolitics of the Twentieth Century
Therefore the rise of the United States as a new world power after World War II and the formation of the European Union promoted the growth of free trade. This process accelerated with the dissolution of the Soviet Union and the fall of the Berlin Wall in 1989.
The Growth in World Economic Exchange
The progressive elimination of import tariffs and other trade barriers. And also the incorporation new markets favoured a greater exchange of products between countries.
The Computer Revolution
The development of telecommunications, particularly the Internet, has made it possible to connect markets worldwide with unprecedented speed.
Improvements in Transportation
Advances in commercial aviation and the ground freight industry (trains and trucks) lowered transportation costs and also enabled a greater flow of goods and people. In maritime transport, the widespread use of containers made moving large volumes of products even more accessible.
Consequences of Globalization
Among the main consequences of globalization are
General Improvement of Quality of Life
Globalization has better the quality of life of people, who can access a greater variety and quantity of products and services. Only a minor portion of the population would have had access in another era.
Increase in Wealth
Globalization has increased the Gross Domestic Product (GDP) worldwide and also decreased extreme poverty. Despite this, inequality between countries has increased.
Greater Power of Multinationals
The expansion of large companies across the five continents many of them with diversified production, oriented to different markets has led them to have great power, preventing local companies from subsisting.
Greater Access to Information
The spread of the Internet and communication technologies has allowed more people to access a more significant number of information sources.
Therefore the development of the globalization process has generate a displacement of the world economic and political centre, which is no longer found only in the United States and Europe.
The Future of Globalization
The digital economy, which emerged at the end of the 20th century, constitutes the main impetus for globalization. Electronic commerce, blockchain and mobile communication are the most developed technologies.
However, some factors could slow down the pace of globalization. Notably the resurgence of nationalism and the trend towards conservative policies. In addition, the world economy is threaten by the consequences of climate change, cyber-attacks and – as has happened recently pandemics.
Globalization is an economical, social, political, technological and cultural process on a planetary scale. Characterized by progressive integration and interaction between countries, people and institutions.