GLOBALIZATION AND ITS ASPECTS
Through a worldwide network of commerce, communication, immigration, and transportation, globalization refers to the integration of global economies, industries, markets, cultures, and laws that liberate the globe from socio-political control and shorten travel distances between regions and nations.
HOW DOES GLOBALIZATION WORK?
Globalization in international economics refers to the web of connections formed by investments and trade across nations' economies. Although there has always been globalization, the modern period only really started in earnest in the early nineteenth century.
Beginning with the Industrial Revolution, improvements in communication (like the telegraph) and transportation (like railways and steamships) allowed for more cross-border commercial engagement and collaboration.
Economic protectionism, which seeks to shield home enterprises from international competition and labor markets by enacting trade obstacles like tariffs, is the antithesis of economic globalization, or free-market commerce across borders.
Global integration, which was fueled by technology, transportation, and international cooperation, produced the interconnected world we live in today.Many nations experienced prosperity as a result of increased cross-border movement of people, information, and products, which helped many people escape poverty.
As members of the global economy, countries gain comparative advantage by specializing in what they do well and manufacturing more items at cheaper costs that lower-income people can purchase, boosting their quality of living.
Although the word "globalization" became increasingly popular in the 1980s, it is not a 20th century concept. This reference list provides resources for researching the long- standing history of globalization.
HISTORY OF GLOBALIZATION
Although many people think of globalization as a twentieth-century phenomenon, it has really been occurring for thousands of years. Several examples are as follows:
The Empire of Rome:
The Roman Empire, which dates back to 600 B.C., conquered a sizable section of the ancient globe throughout its long reign.
Silk Road commerce:
From 130 B.C. until 1453 A.D., these trade routes marked a further phase of globalization. Through Central Asia and the Middle East, they transported traders, products, and tourists from China to Europe.
Prior to World War I:
In the years leading up to World War I, European nations made large investments abroad. The era known as the "golden age of globalization" ran from 1870 to 1914.
Post-World War II:
The United States took the lead in creating a system of international norms that serve as the foundation of a global economic order. International cooperation and free trade are promoted by multilateral institutions like the World Trade Organisation (WTO), International Monetary Fund (IMF) and United Nations (UN).
- The 1980s saw the rise of the word "globalization" as it is used today, reflecting a number of technology developments that boosted cross-border connections. The 1981 release of the personal computer by IBM and the following development of the contemporary internet are two instances of how technology has aided in promoting globalization, trade, and worldwide communication.
- Throughout history, there have been ups and downs in terms of globalization, with periods of expansion and contraction. The twenty-first century has seen both. After the terrorist events of September 11, 2001, in the United States, the world's financial markets fell, although they later rose.
- Nationalist political groups have accelerated trade protectionism, restricted borders, and restrained immigration more lately. Recent trade protectionism, border restrictions, and immigration restrictions have all been accelerated by nationalist political groups. Overall, nevertheless, the speed of global integration has dramatically accelerated in the first decade of the twenty-first century. Much of this transformation is a result oF the quick development of technology and telecommunications.
WHAT IS THE G20?
By tackling global economic challenges including financial stability and climate change, the G20, or Group of Twenty, is an international conference that seeks to promote international collaboration. The majority of the world's greatest economies are represented in the G20, which is made up of 19 nations plus the European Union.
The engaged countries control 80% of global commerce, 60% of world GDP, and 60% of the world's population. It was established in 1999 in the wake of the financial crisis of 1997, and since then, it has had annual meetings.
Since 2008, the G20 has convened a summit every year when leaders of state meet to address crucial economic concerns. The summit is held by the president of the G20's home nation, who is chosen yearly on a rotating basis.
The summit took place in Osaka, Japan, in 2019 and included topics including climate change, artificial intelligence, and women's empowerment. Due to the epidemic, the 2020 meeting, which was scheduled to take place in Riyadh, Saudi Arabia, was only convened digitally.
Empowering people, particularly women and young people, protecting the environment, and developing long-term plans to spread the advantages of innovation and technological progress were three of the major topics discussed. The recovery from the pandemic and climate change will be the main topics of discussion at the Rome, Italy, summit in 2021.
Argentina, Australia, Brazil, Canada, China, France, Germany, Greece, Italy, Mexico, Russia, South Africa, Saudi Arabia, South Korea, Turkey, United Kingdom, United States, and the European Union are the other members of the G20. Spain is a frequent visitor to the company G20.
THREE INSTANCES OF GLOBALIZATION
Globalization examples include:
Organizations of governments:
International organizations may now be established by agreements between several nations thanks to globalization. The World Bank, the World Trade Organisation (WTO), the European Union, the United Nations, and the International Monetary Fund (IMF) are a few examples.
Agreements between nations:
To facilitate international commerce and investment, several nations have signed treaties or adopted trade regulations. The North American Free Trade Agreement (NAFTA) and the Comprehensive Economic and Trade Agreement (CETA) are examples of these accords, which are also known as free-trade agreements.
An organization that conducts business in several nations is known as a multinational corporation. Multinational corporations exist due to globalization. Globalization, for instance, enables major US businesses will export their goods to China, Mexico, and Europe.
WHAT ADVANTAGES DOES GLOBALIZATION OFFER?
The economy of a nation can gain from globalization in various ways:
Stimulates economic expansion:
Globalization accelerates economic development in every nation involved in the global economy by expanding the interchange of commodities, innovations, and knowledge on a worldwide scale. A country's general well-being, or improved living standards, greater earnings, increased wealth, and, frequently, reduced poverty, are all indicators of economic progress.
Enables more cheap manufacture:
Because firms have more access to customers and production possibilities because of a global market, more products are accessible at more affordable price points.
They grow interconnected and frequently start to rely on one another for certain commodities and services when various nations come together to trade and invest in a global financial market.
Provides impoverished nations with opportunity:
Due to globalization , businesses may relocate their manufacturing from high-cost regions to less expensive ones overseas, which creates employment possibilities, access to information technology, and other economic benefits for nations with limited resources.
WHAT IMPLICATIONS DO GLOBALIZATIONS HAVE?
Globalization has a number of drawbacks in addition to its positive benefits for countries. The drawbacks of globalization include:
Uneven economic expansion:
Even though many nations see faster economic development as a result of globalization, wealthy countries frequently gain more from this growth than underdeveloped countries.
Lack of nearby establishments:
A local New York hamburger joint may find it difficult to compete with the prices of a multinational corporation that produces hamburgers because policies promoting globalization tend to favor businesses that have the infrastructure and resources to operate their supply chains or distribution in a number of different countries.
Possibility for worldwide recessions rises:
Because if one country's economy starts to struggle,this might start a chain reaction that can affect many other countries at once, triggering a global financial crisis ,The probability of a global recession rises drastically as more and more countries' economic systems become intertwined.
Using less expensive labor markets:
Businesses may expand employment and economic prospects in emerging nations, where the cost of labor is frequently lower, thanks to globalization. However, these nations' overall economic development may be sluggish or stagnant.
Causes the loss of jobs:
Instead of creating more jobs, globalization redistributes existing ones by shifting production from high-cost to low-cost nations. This means that when production shifts elsewhere, high-cost nations frequently experience employment losses as a result of globalization.
Globalization is the process of increasing interconnectedness among the countries in the most popular areas of economics, politics, society, and culture. All of these areas are key aspects of each country, which is what makes them individualized. Globalization allows countries to be individuals without the conflict of their differences because of the power used to work as a whole.