Globalization's Effects on People

Topics: Third World, First World, Developing country Pages: 5 (1629 words) Published: October 17, 2010

‘’Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology’’.( Globalization has effects on the environment, political views, economic development, and culture in the societies in all over the world. In recent years, due to the developed technology, reduction of barriers made globalization much faster. Today, apparently, globalization provides a lot of opportunities for us like reducing poverty and improving life standards. For example, China reduced its poverty by manufacturing cheaper imports. However, beside of benefits, there are some disadvantages of globalization ‘’Some countries have been unable to take advantage of globalization and their standards of living are dropping further behind the richest countries. The gap in incomes between the 20% of the richest and the poorest countries has grown from 30 to 1 in 1960 to 82 to 1 in 1995’’. ( Although, globalization has a lot of advantages, it also has some disadvantages in terms of economy and society. For thousands of years, people have been buying and selling each other at great distances such as silk roads which is started in China and continued onwards towards Europe is one of the oldest commercial links between countries. From China to Europe, people have done trade. Actually, the current way of globalization came up with the before the first outbreak of the First World War.’’ Since 1950, for example, the volume of world trade has increased by 20 times, and from just 1997 to 1999 flows of foreign investment nearly doubled, from $468 billion to $827 billion’’. ( Since the World War II, many governments have adopted free market economy. Then, governments have established international agreements to promote trade in goods, services and investment. These agreements provide new opportunities in foreign markets to build foreign factories and make production in these factories and new arrangements with foreign partners. Apart from these, technology is another significant issue for globalization. ’’Information technologies have given all sorts of individual economic actors—consumers, investors, businesses—valuable new tools for identifying and pursuing economic opportunities, including faster and more informed analyses of economic trends around the world, easy transfers of assets, and collaboration with far-flung partners’’. ( Thus, advanced in information technology provides benefits to pursuit in economic acts by informing about economic trends all over the world. Globalization has many positive effects on economy and the interaction between cultures. Firstly, "Globalization" will be understood here to mean major increases in worldwide trade and exchanges in an increasingly open, integrated, and borderless international economy’’. (Michael D. Intriligator). That is, because of globalization, a significant increase in trade and exchanges is observed. People can travel easily in all over the world, they communicate with each other from America to Asia thanks to the developing communication devices such as the internet, iphone, teleconference and etc. There is also a forces business to compete on a global scale. For example, like many big business such as Adidas and Nike compete with each other and another coffee shop in many country and also open many shops in many places. This helps the market to really work and gives consumers a better advantage. Many business compete each other and this situation have benefit mostly for consumer because consumer have not to buy overpriced goods from America and they can buy same equality for less price from China. Then, competition starts between brands by developing their standards and customer satisfaction...
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