Globalization assignment

                                                       Globalization

The worldwide movement toward economic, financial, trade, and communications integration called globalization.

Globalization implies the opening of local and nationalistic perspectives to a broader outlook of an interconnected and interdependent world with free transfer of capital, goods, and services across national frontiers. However, it does not include unhindered movement of labor and, as suggested by some economists, may hurt smaller or destroyed economies if applied indiscriminately.

Features:

The features of  globalization may be discussed as follows:

·         Free trade between countries; absence of excessive governmental control over trade.

·         It means free access to markets in the world without any physical (quota) or fiscal (tariff) or any other governments restriction. Hence, global consumers emerges demanding high quality products and more value for their money without any restrictions like parochial, regional or  national consideration.

·         In globalization, globally standardized products needs be marketed ail over the world. There are already many such products having world market.

It includes the “lead” products in a region taking care of dominant needs of that region.

·         Globalization requires resources like raw material, finance and technology. Free access to quality raw material, latest technology and cheap finance are important characteristics of this process at less cost.

·         In globalization free mobility of managerial personnel and entrepreneurs  result into mergers, takeovers and structural regrouping in countries across the globe.

·         Control of economics activities by domestic markets and international markets; coordination of national economy and world economy.

·         The major economic feature of globalization is the dominance of the Transnational Corporation, and the international division of labor in which the world economy can be organized as a global assembly line.

The world economy has been reorganized so that high tech and knowledge-                                                                                             based industries are located in the developed center, particularly in the G- 7, while the developing world provides low tech, low wage production processes.

·         To find the right balance between benefits and costs associated with globalization, citizens of all nation needs to understand how globalization works and the policy choices facing them and their societies.

·         The most important social feature of globalization is the growing disparity between the rich and the poor. The ratio of the income of the top 20% in the world to that of the poorest 20% rose from 30:1 to 84:1 in 1995.

Example:

·         Blending of culture.

·         Companies outsourcing.

·         Technology.

These things happen because of countries competing and/or working together to get more money.

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