Term Globalization

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  • Topic: Globalization, International Monetary Fund, Third World
  • Pages : 5 (1662 words )
  • Download(s) : 434
  • Published : January 7, 2007
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Nowadays globalization is present in many aspects or activities we realised, so we are familiarized to it in many different ways and we sometimes do not even realise it. Another fact is that globalization has become one of the most revolution movements of the recent world history. Moreover, globalization as a general concept has been supported by telecommunications which have increase the importance of it, especially internet and also mobile phones. However it presents several problems which causes people would be against this global process, anti-globalization process is a well-known movement that sets the trend to these people who are in disagreeing with it. Some examples of these problems are that countries could lose their culture identity, international, terrorism, mafia organizations, loss of employment, etc. The first part of this essay will be aimed towards understanding the concept of globalization and the major part of the essay will analyze the various advantages and disadvantages that arise as a result of globalization.

First of all and in order to know what Globalization is, a typical definition can be taken from the International Monetary Fund (2001: wikipedia website), which defines globalization as the growing economic interdependence of countries worldwide through increasing volume and variety of cross-border transactions in goods and services, free international capital flows, and more rapid and widespread diffusion of technology'. However and according to a point of view of the transformationalist thesis, defines globalization primarily as a social phenomenon that has brought qualitative changes in all cross-border transactions' (Hoogvelt, 2001: 121). On the other hand, it should be known that the term Globalization can be understood as many different meanings, it depends on the context spoken, such as economic, social, cultural, technological and political anyway these definitions are closely linked. Globalization emerged strongly after the World War II when Governments established new strategies and tactics with the simple aim of increasing trade between nations, such as World Trade Organization (WTO) and Europe's Maastricht Treaty. Moreover it is necessary to know that across the world history nations or civilizations have been in contact trading or dealing. In contrast for many historians Globalization starts with the First Industrial Revolution in late 18th and early 19th century (Aghion and Williamson: 1998) Many years later, in late XX century, with the spreading of internet and apparition of improvement of another kind of communication in real time, it was a revolution not only for business world also to completely all aspect in our lives.

There are various advantages related to globalization as follows, firstly is the existence of a free world trade which has always been present between people and between countries. However since the World War II trade in goods and assets had gained a larger importance everywhere. The economic globalization or increasing the international trade is possible due to open borders policy and then markets will be opened to a free world trade. Other reasons are an opened labour market which is supported by a faster and easier transportation of people and a good net of transports of goods and information which probably the most important is the telecommunication by different tools and in real time (internet, phone, video conference, etc.). That is the economically developed countries have modern industries and technologies (the U.S, Japan and the countries of Western Europe). The developing countries (most of Asia, Latin America, and Africa) have lower incomes and large groups of impoverished people, especially peasants. However some countries are in between and have characteristics of both kinds of economies, for example states of the former Soviet Union and Eastern Europe (Hoogvelt, 2001). In addition, a company can move its production plants to a cheaper...
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