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What is meant by globalisation? What is the exact definition of globalisation?

Author: Vikram Jain    |
Globalisation can be defined as "integration of a country's economy with world economy, where goods and services as well as capital move across the border, where a country's financial markets are affected by fluctuations in the global market."| |

Globalization is a term that is used to describe the changing world order in which various aspects of a nation that include the economic, social, political, cultural and environmental factors are viewed as being part of a global community and not restricted in their scope.

The term came to be used to describe the phenomenon of global flux in which trade as represented by capital and material can move freely across the world with lesser restrictions with respect to national boundaries.

Globalization though it has been essentially connoted with economic issues synonymous with multi national companies (MNC) and their policies that directly or indirectly affect populations across the world has also consequently ushered in an era of change with respect to social and cultural matters inducing a competitive spirit in world culture for the better or worse according to the social fabric of various communities and their flexibility and adaptability.

Knowledge, with respect to developments in science and technology is perceived to be the driving force behind globalization and continues to be the decisive factor what with the outsourcing trends of several MNCs to offshore destinations in recent times.

Globalization has often been seen as being a subtle factor that tries to undermine welfare policies of governments across the world and individual choice and being elitist in nature but it has also unconsciously forced democratic nations to be more affirmative and inclusive with respect to the betterment of all sections of societies and also to address vital issues like the conservation of the environment.

Types of Globalization
Financial globalization
* Interconnection of the world’s financial systems e.g. stock markets * More of a connection between large cities than of nations * Example: What happens in Asian markets affects the North American markets. Economic Globalization

* A worldwide economic system that permits easy movement of goods, production, capital, and resources (free trade facilitates this) * Example: NAFTA, EU, Multinational corporations
Technological Globalization
* Connection between nations through technology such as television, radio, telephones, internet, etc. * Was traditionally available only to the rich but is now far more available to the poor. Much less infrastructure is needed now. Political Globalization

* countries are attempting to adopt similar political policies and styles of government in order to facilitate other forms of globalization * e.g. move to secular governments, free trade agreements, etc Cultural Globalization

* Merging or “watering down” of the world’s cultures e.g. food, entertainment, language, etc. * Heavily criticized as destructive of local culture
* e.g.  The Simpsons is shown in over 200 countries in the world. Ecological Globalization
* seeing the Earth as a single ecosystem rather than a collection of separate ecological systems because so many problems are global in nature * e.g. International treaties to deal with environmental issues like biodiversity, climate change or the ozone layer, wildlife reserves that span several countries Sociological Globalization

* A growing belief that we are all global citizens and should all be held to the same standards – and have the same rights * e.g. the growing international ideas that capital punishment is immoral and that women should have all the same rights as men.

Negative Effects of Globalization

Globalization is a very controversial issue today. Globalization is the buzzword of today. Economies of the...
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