1.

Introduction
Globalization refers to the spread of the flow of financial products, goods, technology,
information, and jobs across national borders and cultures. In economic terms, it describes
an interdependence of nations around the globe fostered through free trade.

Globalization means the speedup of movements and exchanges (of human beings, goods, and
services, capital, technologies or cultural practices) all over the planet. One of the effects of
globalization is that it promotes and increases interactions between different regions and
populations around the globe.

According to WHO, globalization can be defined as ” the increased interconnectedness and

interdependence of peoples and countries. It is generally understood to include two inter-
related elements: the opening of international borders to increasingly fast flows of goods,
services, finance, people and ideas; and the changes in institutions and policies at national
and international levels that facilitate or promote such flows.”

The term globalization as it's used today came to prominence in the 1980s, reflecting several
technological advancements that increased international interactions. IBM's introduction of
the personal computer in 1981 and the subsequent evolution of the modern internet are two
examples of technology that helped drive international communication, commerce and others

1.1 History of globalization

Although many people consider globalization a twentieth century phenomenon, the process has
been happening for millennia. Examples include the following:

 The Roman Empire. Going back to 600 B.C., the Roman Empire spread its economic and
governing systems through significant portions of the ancient world for centuries.

 Silk Road trade. These trade routes, which date from 130 B.C. to 1453 A.D., represented
another wave of globalization. They brought merchants, goods and travelers from China
through Central Asia and the Middle East to Europe.
 Pre-World War I. European countries made significant investments overseas in the decades
before World War I. The period from 1870 to 1914 is called the golden age of globalization.

 Post-World War II. The United States led the effort to create a global economic system with
a set of broadly accepted international rules. Multinational institutions were established such
as the United Nations (UN), International Monetary Fund, World Bank and World Trade
Organization to promote international cooperation and free trade.

1.2 Types of globalization: Economic, political, cultural

There are three types of globalization.

1. Economic globalization. Here, the focus is on the integration of international financial

markets and the coordination of financial exchange. Free trade agreements, such the North
American Free Trade Agreement and the Trans-Pacific Partnership are examples of economic
globalization. Multinational corporations, which operate in two or more countries, play a
large role in economic globalization.

2. Political globalization. This type covers the national policies that bring countries together
politically, economically and culturally. Organizations such as NATO and the UN are part of
the political globalization effort.

3. Cultural globalization. This aspect of globalization focuses in a large part on the

technological and societal factors that are causing cultures to converge. These include
increased ease of communication, the pervasiveness of social media and access to faster and
better transportation.

These three types influence one another. For example, liberalized national trade policies drive
economic globalization. Political policies also affect cultural globalization, enabling people to
communicate and move around the globe more freely. Economic globalization also affects
cultural globalization through the import of goods and services that expose people to other
cultures.

1.3 Effects of globalization

The effects of globalization can be felt locally and globally, touching the lives of individuals as
well as the broader society in the following ways:
 Individuals. Here, a variety of international influences affect ordinary people. Globalization
affects their access to goods, the prices they pay and their ability to travel to or even move to
other countries.

 Communities. This level encompasses the impact of globalization on local or regional

organizations, businesses and economies.

 Institutions. Multinational corporations, national governments and other organizations such

as colleges and universities  are all affected by their country's approach to and acceptance of
globalization.

 Examples of globalization

Multinational corporations are a tangible example of globalization. Some examples include the
following:

 McDonald's had 39,198 fast-food restaurants in 119 countries and territories, according to its
Securities and Exchange Commission filing at the end of 2020. It employed more than 2.2
million people at that time, the filing said.

 Ford Motor Company reported in 2021 that it works with about 1,200 tier 1 suppliers
around the globe.

 Amazon's recent expansion has it using tens of thousands of suppliers and employing more

than nearly 1.3 million full- and part-time employees.

1.4 Benefits of globalization

Globalization enables countries to access less expensive natural resources and lower cost labor.
As a result, they can produce lower cost goods that can be sold globally. Proponents of
globalization argue that it improves the state of the world in many ways, such as the following:

 Solves economic problems. .

 Promotes free trade

 Spurs economic development. 

 Encourages positive trends in human rights and the environment. 

 Promotes shared cultural understanding. 

 Destabilizes markets. 

 Damages the environment. 

 Lowers living standards. 

 Facilitates global recessions. 

 Damages cultural identities. .

 Increases the likelihood of pandemics. 

1.5 Future of globalization

Technological advances, particularly blockchain, mobile communication and banking, are
fueling economic globalization.

Nonetheless, rising levels of protectionism and anti-globalization sentiment in several countries

could slow or even reverse the rapid pace of globalization. Nationalism and increasing trends
toward conservative economic policies are driving these anti-globalization efforts.

Global trade is also made more difficult and facing rising threats from other factors, such as
these:

 climate change

 decaying infrastructure

 cyber attacks

 human rights abuses

What Is Globalization in the Economy?

According to the Committee for Development Policy (a subsidiary body of the United
Nations), from an economic point of view, globalization can be defined as:
“(…) the increasing interdependence of world economies 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. It reflects the continuing expansion and mutual integration of
 market frontiers (…) and the rapid growing significance of information in all types of productive
activities and marketization are the two major driving forces for economic globalization.”
What Is Globalization in Geography?
In geography, globalization is defined as the set of processes (economic, social, cultural,
technological, institutional) that contribute to the relationship between societies and individuals
around the world. It is a progressive process by which exchanges and flows between different
parts of the world are intensified.
examples of Globalization (Concept Map)
Because of trade developments and financial exchanges, we often think of globalization as an
economic and financial phenomenon. Nonetheless, it includes a much wider field than just
flowing of goods, services or capital. Often referred to as the globalization concept map, some
examples of globalization are:

 Economic globalization: is the development of trade systems within transnational actors such as
corporations or NGOs;
 Financial globalization: can be linked with the rise of a global financial system with
international financial exchanges and monetary exchanges. Stock markets, for instance, are a
great example of the financially connected global world since when one stock market has a
decline, it affects other markets negatively as well as the economy as a whole.
 Cultural globalization: refers to the interpenetration of cultures which, as a consequence, means
nations adopt principles, beliefs, and costumes of other nations, losing their unique culture to a
unique, globalized supra-culture;
 Political globalization: the development and growing influence of international organizations
such as the UN or WHO means governmental action takes place at an international level. There
are other bodies operating a global level such as NGOs like Doctors without borders or Oxfam;
 Sociological globalization: information moves almost in real-time, together with the
interconnection and interdependence of events and their consequences. People move all the time
too, mixing and integrating different societies;
 Technological globalization: the phenomenon by which millions of people are interconnected
thanks to the power of the digital world via platforms such as Facebook, Instagram, Skype or
Youtube.
 Geographic globalization: is the new organization and hierarchy of different regions of the
world that is constantly changing. Moreover, with transportation and flying made so easy and
affordable, apart from a few countries with demanding visas, it is possible to travel the world
without barely any restrictions;
 Ecological globalization: accounts for the idea of considering planet Earth as a single global
entity – a common good all societies should protect since the weather affects everyone and we
are all protected by the same atmosphere. To this regard, it is often said that the poorest
countries that have been polluting the least will suffer the most from climate change.

At the same time, books, movies, and music are now instantaneously available all around the
world thanks to the development of the digital world and the power of the internet. These are
perhaps the greatest contributors to the speed at which cultural exchanges and globalization are
happening. There are also other examples of globalization regarding traditions like Black Friday
in the US, the Brazilian Carnival or the Indian Holi Festival. They all were originally created
following their countries’ local traditions and beliefs but as the world got to know them, they are
now common traditions in other countries too.

1.6 Pros and Cons of Globalization

 Pros
Proponents of globalization believe it allows developing countries to catch up to industrialized
nations through increased manufacturing, diversification, economic expansion, and
improvements in standards of living.

Outsourcing by companies brings jobs and technology to developing countries, which helps
them to grow their economies. Trade initiatives increase cross-border trading by removing
supply-side and trade-related constraints.

Globalization has advanced social justice on an international scale as well, and advocates report

that it has focused attention on human rights worldwide that might have otherwise been ignored
on a large scale.
  Cons
One clear result of globalization is that an economic downturn in one country can create a
domino effect through its trade partners. For example, the 2008 financial crisis had a severe
impact on Portugal, Ireland, Greece, and Spain. All these countries were members of
the European Union, which had to step in to bail out debt-laden nations, which were thereafter
known by the acronym PIIGS.

Globalization detractors argue that it has created a concentration of wealth and power in the
hands of a small corporate elite that can gobble up smaller competitors around the globe.

Globalization has become a polarizing issue in the U.S. with the disappearance of entire
industries to new locations abroad. It's seen as a major factor in the economic squeeze on
the middle class.

For better and worse, globalization has also increased homogenization. Starbucks, Nike,
and Gap dominate commercial space in many nations. The sheer size and reach of the U.S. have
made the cultural exchange among nations largely a one-sided affair.
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