GLOBALIZATION

Globalization refers to the increasingly global relationships of culture, people and economic activity. Most often, it refers to economics: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import quotas. Globalization accompanied and allegedly contributed to economic growth in developed and developing countries through increased specialization and the principle of comparative advantage. The term can also refer to the transnational circulation of ideas, languages, and popular culture.

Globalization gives companies access to wider markets and consumer’s access to a greater variety of goods and services. But the benefits of globalization are not always shared by all of the parties involved in trade. Unfortunately, developing countries—which need the potential benefits of globalization the most—are often the losers.

Some advantages of globalization: Increased free trade between nations, increased liquidity of capital allowing investors in developed nations to invest in developing nations, the corporations have greater flexibility to operate across borders and the global mass media ties the world together. Some disadvantages: Increased flow of skilled and non-skilled jobs from developed to developing nations as corporations seek out the cheapest labor, increased likelihood of economic disruptions in one nation affecting all nations and the corporate influence of nation-states far exceeds that of civil society organizations and average individuals.