Globalization means different things to different people. The three important perspectives of globalization are as follows: • To a business executive, globalization refers to a strategy of crossing national boundaries through globalized production and marketing networks. • To an economist, globalization refers to an economic interdependence between countries covering increased trade, technology, labor, and capital flows. • To a political scientist, globalization refers to an integration of a global community in terms of ideas, norms, and values. Because of these differences in perspectives, globalization has been defined in many different ways. The following are the widely used definitions of globalization: • "Globalization is a free movement of goods, services, people, capital, and information across national boundaries." • "Globalization is a process by which an activity or undertaking becomes worldwide in scope." • "Globalization is a process of integration of the world as one market." Form these definitions; it is clear that globalization leads to an integrated global economy. The process of globalization ultimately converts the huge globe into a small global village.
Forms of Globalization
Globalization is a multi-dimensional process. It has four important dimensions: economic, cultural, political, and environmental. The process of globalization is now influencing these aspects of an economy. A brief description of these forms of globalization is as follows:
ECONOMIC GLOBALIZATION: Economic influence is the most obvious part of globalization. Economic globalization is contributed by liberalization, deregulation, privatization, and declining costs of the markets in goods, services, capital, trade, and finance. Economic globalization has speeded up in the recent past. A free-trade doctrine removes the barriers to the flow of goods between countries. The formation of the World Trade Organization (WTO) has given impetus to this process. Multinational companies are another force to boost up economic globalization.
CULTURAL GLOBALIZATION: Different countries have different sets of national beliefs, values and norms. The expanding process of globalization has brought these cultural diversities together to form a global culture. Advances in communications, television networks, transportation technology have been reducing the barriers of distance and culture. Over the last several years, global communications have been revolutionized by developments in satellites, digital switching, and optical fiber telephone lines. As a result of such developments, reliable system of commercial jet travel has reduced the time it takes to get from one location to another. This has tremendous impact on the flow of tourists across the globe. Television programmers have made people aware of other cultures and languages. These have reduced the cultural distance between countries. The process of globalization has increased mutual understanding, peaceful coexistence, and learning from each other's experiences.
POLITICAL GLOBALIZATION: Nations today are more inter-dependent. They are joining hands to participate in creating macro-political framework for development. There are exchanges of views and experiences between nations regarding the establishment of good governance system, legal system, human rights, free media, property rights, decentralized pattern of governance, relatively free access to state information, and so on. The regional grouping of nations has promoted the integration further and created pressure for democracy and human rights. Because of these global influences, the political system worldwide made a shift away from command and mixed economies to the free-market model.
ENVIRONMETAL GLOBALIZATION: The globe today is facing unprecedented problems of global warming, depletion of the ozone layer, acute loss of bio-diversity, and trans-border pollution. In fact,...