Factors affecting globalization

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Globalization is perhaps the most important force that has been shaping the sosioeconomic of a country but what generates globalization? Different social theories offer different interpretations of how and why global connections have grown. As an example, liberal economics focusses on the role of imaginative market forces in a context of technological change. For many sociologists, globalization is a product of modern rationalism. There are many factors that influence globalization in this century including the free trade, technological innovation, and capitalism.

Many barriers to free trade were removed after Word War II. A few trade agreements such as the World Trade Organization (WTO) and the North American Free Trade Agreement (NAFTA) had helped to the spread of globalization. [1] Barriers to international trade have also been considerably lowered through General Agreement on Tariffs and Trade (GATT). The promotion of free trades are including elimination of tariffs, reducing transportation costs, capital contols and subsidies of local business, and creating subsidies for global corporations.

Besides that, technological innovation have obviously helped propagate globalization by providing infrastructure for trans-world connections. Particularly, developments in means of communications, transportation and data processing had produced denser, faster, more reliable and much cheaper global links. Innovations of coaxial and fibre optic cables, jet engines, semiconductor devices, computer software, packaging and preservation techniques have contributed to rapid globalization. In other words, global relations is really depend on the physical tools to improve the global connections.

On the other hand, the change of many states to market-based economies and capitalism has advanved globalization's reaches. Global market offer prospects of increased profit through higher sales volumes. Moreover, higher production runs to feed global markets promise enhanced profits due to economies of scale. Capitalists also follow globalization as it allows production facilities to be sited wherever costs are lowest and earnings highest. In addition, global accounting uses enable prices and taxes to be calculated in ways that increase profits. Finally, global connection themselves incuding telecommunications and electronic finance create major opportunities for profit making.

Types of globalization

There are four types of globalization which are:

  • Cultural
  • Political
  • Economic
  • Social

Cultural globalization

Cultural globalization is the rapid bridging of ideas, behaviour and values which focus on the cultural movement and cultural values across the national borders. The advance usage of science and technology in communications have helped propagate the globalization especially in cultural aspect or we can say that the mass media and communication technologies are the primary tools for cultural globalization. Countries are exposed to foreign ideas, practices, and lifestyles. One of the obvious innovation is the development of computer technology with its social networking sites, blogging sites, video sharing websites, and various other innovations. [2] Using all of the facilities, the people all around the world can connect and communicate each other in just a few seconds. Many people use the facilities of e-mail so that they can chat with their loved ones although they are far from each other. There are plenty of 'chat rooms' or messenger services which can be chosen such as yahoo messenger, gmail, msn, facebook and so on. With the help of such service, it has become very easy to introduce a kind of global friendship where people can share their thought or in other words, they can explore the other cultures of different ethnicity from all over the world. This sharing accelerates the cultural globalization as there are no boundaries on the World Wide Web. [2] Besides that, advances in transportation has also facilitated physical travel to other countries. This encourages cross-cultural exchanges. [2]

Political globalization

By tradition, politics has been undertaken within national political structure. National governments have been eventually in charge for maintaining the security and economic wellbeing of their society, as welll as the defence of human basic needs and the atmosphere within their limits. With worldwide environmental changes, raising of integrated global economy and the other global trends, political action progressively take place at the global stage. Under globalization, politics can goes beyond the world through political integration pattern such as the European Union and through intergovernmental associations. For instance, the International Monetory Fund, The World Bank and The World Trade Organization (WTO). Besides that, political action can also go beyond the national borders through global development and NGOs. [3]

Eonomic globalization

Economic globalization refers to raising of economic interdependent of national economies across the globe as a result of a fast increase in international trade of products, services, technologies and capitals. This process of increasing economic integration between countries, directing to the appearence of a worldwide marketplace or a single world market. This type of globalization consists of the globalization of production, markets, competition, technology, and corporations and industries. [4] It also reflects the continuing expansion and mutual integration of market frontiers, and is irreversible trend for the economic development in the whole world in this millenium era. The major driving force of economic globalization are the fast growing significance of information in all types of productive activities and marketization. In recent years, the rapid globalization of the world's economies is largely based on the fast development of science and technologies, resulted in rapid spreading of market economic system. [5]

Meanwhile, the indicators of economic development are Gross Domestic Product(GDP), Gross National Product(GNP), and Purchasing Power Parity(PPP). GDP refers to the total output of a region and GNP refers to the total output of the nationals of a region. For instance, the income of employees situated in another country would be included in the employees' home country GNP but not its GDP. The Gross National Product of a country can be either smaller or larger than its GDP depending on the amount of its local residents working in the other country and the amount of foreigners working within its country. When it is found that the GDP is larger than GNP, this means the substantal portion of the local economy are foreign-owned. The income earned within a country goes to the foreigners. The GDP may look healthy but GNP may well be anaemic. This situation is very undesirable for a country since the control is ceded to the foreigners.

Social globalization

The social globalization generally focusses on the impact of globalization on the life and people's work, their families and their societies. Social development or the transformation of social cultures in a way which develops the capacity of the public to achieve the goal has improved especially in education system, health services, and laws. The improvement in educational system has contributed to the social globalization because many of the successful leaders or executives comes from a good learning institutions. Many infrastructures and facilities are build and added in the schools and learning institutions in order to improve the ways of teaching and learning. If a long time ago, teachers use chalks to write on the blackboard, today the marker pens are used on the whiteboard. Some schools also have their own computer laboratory for education purposes. Students are introduced to the new technology since they are in school so that they can develop their skills faster. There are also many other education facilities that can be used by the teachers to help in their teaching ways because some facilities can attract the students so that they pay full attention in the class.

Besides that, the health services also plays an important role in social globalization. As the global economy improves, many countries can produce and support more qualified doctors in improving and modernizing health and social care services. Many programmes are organized by health institutions to achieve the target such as organizing the health campaigns in the schools and companies. They also provides better facilities and health equipments in the clinics and hospitals. This services helps to increase the life expectancy of the society.