Globalization: what is it? According to the Random House Unabridged Dictionary, globalization is the attempt to “make worldwide” or “to extend to other parts of the globe.” In other words, it is to integrate all nations across the globe.
Globalization is an issue which affects the world, but it is taken lightly by those who know little to nothing about it. Globalization is an increasingly controversial topic that allows poor countries to increase their standard of living, but those who detest globalization say that globalization is only benefiting the western countries at the cost of poorer nations.
Globalization affects many aspects of life such as technology, investments, and even trade.
Globalization is in part where it is today due to the advancements that the world has made in technology in general. Technology is one of the leading factors in the evolution of globalization. Information technology is helping further develop globalization. The cost efficiency of many technology is increasing, and these technologies are beginning to impact everyday life.For example, the cell phones is becoming more and more available to the average consumner who rely on it. Cell phones are used for anything from family conversations to business calls, but for many they have become a way of life. Life might become impossible without the reliance on the cell phone. Another example of information technology is the Internet, which has drastically changed since it’s big debut in the 1990’s. Billions and trillions of terabytes have been transferred in the year 2006 alone. If all this information was written in books it would span from the Earth to the sun thirty-seven times.
Along with technology globalization also affects investments. Analysts agree that rather than just increasing the trade flow, investments are also a powerful force to bringing the integration of the globe. Companies have begun a trend of going overseas to invest. They do this for a couple of reasons. For example, companies are always looking for new clients to invest in their products or to invest in the client’s company. They also go overseas because some products which are produced there are of a finer quality; they buy it in bulk for cheap and then return and inflate the costs to make profit. This type of activity is seen in the clothing, electronic, and automobile industries. Another reason why companies invest overseas is because the resources to produce their products are cheaper than if they were to be built in America. For example, toys are made in Japan with a far smaller price tag and can be exported overseas to be sold for prices almost triple that of the parts it took to build them. The last main reasons companies travel far overseas is because of the cost it takes to pay the employees to manufacture the products. In China, American products are made in sweatshops where the employees have inferior conditions and get paid anywhere from five to six times less than in first world countries. When these companies take the time and money to invest overseas they help move globalization along into further stages. They attempt to improve conditions for less fortunate societies.
Investments tie in with trade. International trade has increased drastically since the 1950’s from 320 billion dollars to 6.8 trillion dollars annually. Some countries have greatly prospered since the late 1900’s due to the boom in international trade; however, many are left in the dust. Countries choose to import and export for a few reasons. For example the U.S. has all the conditions to mine, grow, or produce any product that they would like, but they choose to trade trillions of dollars a year. Countries export because they have a surplus of their product and no one wants to purchase it locally. They go elsewhere where there is a demand for the their product. It works almost the same for imports, except countries import or bring in products that they don’t have access to readily. International trade is an act of globalization in itself. Some countries have hopes in helping the less fortunate while others solely care about profits and revenues.Goto the top of this page.