Globalization is the worldwide movement toward economic, financial, trade, and communications integration. 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 fragile economies if applied indiscriminately. Globalization is the system of interaction among the countries of the world in order to develop the global economy. Globalization refers to the integration of economics and societies all over the world. Globalization involves technological, economic, political, and cultural exchanges made possible largely by advances in communication, transportation, and infrastructure. It is an elimination of barriers to trade, communication, and cultural exchange. The theory behind globalization is that worldwide openness will promote the inherent wealth of all nations.
Example of Globalization
Some examples of globalization are things like: blending of cultures, companies outsourcing, and technology. These things happen because of countries competing and/or working together to get more money (that's what most people want). Most people think it’s a good thing, but some think it’s bad. I think it is good but only to an extent. Poorer or underdeveloped countries get left behind in many ways because they can't afford things like new technologies that North American's can afford. China opening to the free market had a big impact on everyone. Some good, some bad. Concept of globalization
Globalization – the growing integration of economies and societies around the world – has been one of the most hotly-debated topics in international economics over the past few years. Rapid growth and poverty reduction in China, India, and other countries that were poor 20 years ago, has been a positive aspect of globalization. But globalization has also generated significant international opposition over concerns that it has increased inequality and environmental degradation. Globalization, as a term, is very often used to refer to economic globalization, that is integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and spread of technology. The process of globalization had its origins in Europe, through the Portuguese, Spanish, Dutch, French, and English territorial and maritime expansion into all habitable continents, and included the discovery and colonization of the New World. Since World War II, barriers to international trade have been considerably lowered through international agreements - General Agreement on Tariffs and Trade (GATT). Particular initiatives carried out as a result of GATT and the World Trade Organisation (WTO), for which GATT is the foundation, has included: Promotion of free trade:
Reduction or elimination of tariffs; construction of free trade zones with small or no tariffs Reduced transportation costs, especially from development of containerization for ocean shipping. Reduction or elimination of capital controls
Reduction, elimination, or harmonization of subsidies for local businesses Restriction of free trade:
Harmonization of intellectual property laws across the majority of states, with more restrictions. There are two types of integration—negative and positive. Negative integration is the breaking down of trade barriers or protective barriers such as tariffs and quotas. In the previous chapter, trade protectionism and its policies were discussed. You must remember that the removal of barriers can be beneficial for a country if it allows for products that are important or essential to the economy. For example, by eliminating barriers, the costs of imported raw materials will go down and the supply will increase, making it...