Globalization

Globalization is the word used to describe the growing interdependence of the

world’s economies, cultures, and populations, brought about by cross-border
trade in goods and services, technology, and flows of investment, people, and
information.
Globalization is driven by the convergence of cultural and economic systems. This
convergence promotes -- and in some cases necessitates -- increased interaction,
integration and interdependence among nations. The more countries and regions
of the world become intertwined politically, culturally and economically, the more
globalized the world becomes.

According to WHO, globalization can be defined as ” the increased

interconnectedness and interdependence of peoples and countries. It is generally
understood to include two inter-related elements: the opening of international
borders to increasingly fast flows of goods, services, finance, people and ideas;
and the changes in institutions and policies at national and international levels
that facilitate or promote such flows.”

What Is Globalization in the Economy? According to the Committee for

Development Policy (a subsidiary body of the United Nations), from an economic
point of view, globalization can be defined as
“ “the increasing interdependence of world economies as a result of the
growing scale of cross-border trade of commodities and services, the flow of
international capital and the wide and rapid spread of technologies. It reflects the
continuing expansion and mutual integration of market frontiers (…) and the rapid
growing significance of information in all types of productive activities and
marketization are the two major driving forces for economic globalization.”

What Is Globalization in Geography? In geography, globalization is defined as the

set of processes (economic, social, cultural, technological, institutional) that
contribute to the relationship between societies and individuals around the
world. It is a progressive process by which exchanges and flows between different
parts of the world are intensified.

Globalization is a social, cultural, political, and legal phenomenon.

 Socially, it leads to greater interaction among various populations.

 Culturally, globalization represents the exchange of ideas, values, and
artistic expression among cultures.
 Globalization also represents a trend toward the development of a single
world culture.
 Politically, globalization has shifted attention to intergovernmental
organizations like the United Nations (UN) and the World Trade
Organization (WTO).
 Legally, globalization has altered how international law is created and
enforced.

THE HISTORY OF GLOBALIZATION:

Globalization is not a new concept. Traders traveled vast distances in ancient

times to buy commodities that were rare and expensive for sale in their
homelands. The Industrial Revolution brought advances in transportation and
communication in the 19th century that eased trade across borders.

The think tank Peterson Institute for International Economics (PIIE) states
globalization stalled after World War I, and nations moved
toward protectionism as they launched import taxes to more closely guard their
industries in the aftermath of the conflict. This trend continued through the
Great Depression and World War II until the U.S. took on an instrumental role in
reviving international trade.

One of the critical steps in the path to globalization came with the North
American Free Trade Agreement (NAFTA), signed in 1993. One of NAFTA's many
effects was to give American auto manufacturers the incentive to relocate a
portion of their manufacturing to Mexico where they could save on the costs of
labor. NAFTA was replaced in 2020 by the United States-Mexico-Canada
Agreement (USMC).
Governments worldwide have integrated a free market economic system
through fiscal policies and trade agreements in the 20th century. The core of
most trade agreements is the removal or reduction of tariffs.

This evolution of economic systems has increased industrialization and financial

opportunities in many nations. Governments now focus on removing barriers to
trade and promoting international commerce.

What Is an Example of Globalization?

A simple example of globalization would be a car manufactured in the U.S. that

sources parts from China, Japan, South Korea, Sri Lanka, and South Africa. The
car is then exported to Europe, where it is sold to a driver who fills the car's gas
tank with gasoline refined from Saudi oil.

Types of Globalization
There are 8 types of Globalization:

 Social globalization
 Technological globalization
 Financial globalization
 Economic globalization
 Political globalization
 Cultural globalization
 Ecological globalization
 Sociological globalization
Through these 8 aspects, we can see how our world is becoming more integrated
on many different levels. This article will define, explain and examine all 8 types of
globalization.

1. Political Globalization

Political globalization refers to the diplomatic negotiations between nation-states.

It includes the standardization of global rules around trade, criminality, and the
rule of law. International bodies including the United Nations, European Union
and World Trade Organization are key multinational organizations designed to
facilitate increasing political globalization. This includes growing free trade and
multilateral agreements on investment. One of the biggest positives of political
globalization is that it creates international rule of law. It helps prevent war
crimes and polices bad actors on the international stage. It can also help speed up
other forms of globalization, like economic globalization, because standardized
rules around food and trade standards makes it easier for companies to sell their
goods overseas. An argument against political globalization is that it involves
countries meddling in each other’s business. Many people think we shouldn’t
interfere in the decisions of other nations. Another criticism is that it led to the
spread of the political ideology of neoliberalism that increases the gap between
the rich and the poor.

2. Social Globalization
Also known as sociological globalization, social globalization refers to the
integration of our societies.
Not to be confused with cultural globalization, sociological globalization refers to
the idea that we now live in a shared society. (There are many
different cultures within a society. But a society is a group of people who all live
together).
And now more than ever, it feels as if we all live in one society instead of a group
of different societies. For example:

 What happens in Afghanistan can affect what happens in the United

States.
 A contagion in China spreads to all corners of the world.
 A nuclear weapon in North Korea can threaten lives in New Zealand.
So, it appears, we are now all a common society who need to learn to get along
despite our different cultures and beliefs because what we do affects people all
around the world. Another aspect of social globalization is the movement of
people. People can go from one country to another easily, and those who are
most highly educated can get jobs in different nations with more ease than ever.

3. Economic Globalization
Economic globalization refers to the ways corporations do business as
multinational organizations nowadays.
Whereas once McDonald’s only existed in the USA and HSBC only existed in the
UK, now these companies are all over the world in a ‘globalized economy’. You
will also notice the movement of manufacturing industries to developing nations
to make the most of low wages and lowers the price of goods. This can help
developing nations increase overall employment but can be considered
exploitation of nations with poor working conditions. It also takes good paying
jobs away from developed nations.

4. Technological Globalization
Technological globalization refers to the spread of technology around the world.
Examples of this include the spread of the internet, solar panel technology and
medical technologies – which can all help improve the lives of people around the
world. The spread of technologies can be interpreted as the ‘rising tide lifts all
boats’ argument. Globalization means we can make the most of the best
technologies from all around the world to make everyone’s lives better and
improve everyone’s economies. Technological globalization is closely connected
to the anthropological “scapes of globalization” theory by Arjun Appadurai. He
came up with the term “technoscapes” to explain how technology spreads around
the world.

5. Financial Globalization
Financial globalization refers to the ease at which money can be spread around
the world.
The growth of stock exchanges like the NYSE and FTSE as well as
internationalization of financial markets has made it easier for people to transfer
money internationally. The benefit of this is that it’s easy and cheap to get
investments for new business ventures. You can find a Chinese, French or
Canadian investor to wire you some money to start your business instead of just
relying on local investors! But many nations also face backlash because of the
sense that overseas companies buy out too much of their businesses, real estate
and farming land – which could be a threat to a nation’s sovereignty.

6. Cultural Globalization
Cultural globalization refers to the spread and mixing of cultures around the
world.
Arjun Appadurai talks about the possible effect of homogenization of culture,
where dominant nations like the United States spread their cultures through
television and movies, which leads to the dilution and loss of local and indigenous
cultures and the rise of a global culture.
One example is the spread of punk music from the UK and USA around the world
in the 1970s. Other examples include the spread of Disney music, secularism and
consumer culture.
Concepts related to cultural globalization include cultural adaptation, cultural
diffusion, and hierarchical diffusion. We can also see that, as migrants move
around the world, people are increasingly developing transnational identities.

7. Ecological Globalization
Ecological globalization refers to the idea that the world needs to be considered
one interconnected ecosystem.
This means that the world needs to work together to address ecological issues
that cross the borders of nation-states

Examples include:

 The hole in the Ozone layer, which required the world to ban CFCs.
 Climate Change, which will affect the poorest nations (particularly low-lying
nations in the Pacific and South-East Asia) even though much of the
damage is caused by developed nations like the United States.
To address these issues, climate accords like the Kyoto Protocol and the Paris
Climate Agreement have been put into place, where each nation agrees to invest
in lowering its carbon emissions.

8. Geographical Globalization
Geographical globalization refers to the idea that the world is no longer seen as
groups of distinct nations as much as it once was.
We now work in multinational blocs to make decisions, and nations work together
to solve problems. It also refers to the fact that we’re now able to travel between
nations with increasing ease. You can go from the United States to Europe within
a day, for example. Furthermore, people can identify as belonging to multiple
geographic regions, especially if they hold multiple passports. Heritage and
familial ownership of territory is getting weaker and weaker.

Globalization and its impact on Pakistan

Globalization has had serious impact on Pakistan’s economy, politics, society, law
and religion. Like many other developing countries, Pakistan is experiencing both
positive and negative effects of the globalization.

Every Society has its own culture and way of life. It is established by the group of
people who live together and adhere to some principles in their society. Pakistan
has a rich and unique culture that has preserved established traditions
throughout history. Many cultural practices, food, monuments and shrines were
inherited from the rule of Muslim Mughal and Afghan Emperors.

The national dress of Pakistan is Shalwar Qameez, but cultural globalisation is

having impact on the dressing of Men and Women. Wearing T-shirts, sunglasses,
long shoes and jackets is not a part of Pakistan’s culture. People are becoming
more conscious about their dressing styles and Fashion. Now, they see if a fashion
is suitable for them or not. Women have become more brand conscious. The
trend of wearing western clothes like jeans and shirts is increasing in women.

Pakistan has its own deep rooted desi cuisine but as a result of globalization, fast
food culture is wide spread in Pakistan. International Food Chains such as KFC,
Mc Donald’s, Pizza Hut, Hardeesetc. can be easily located on the corners of
streets, Airports, Malls, Shopping Centers, schools and Gas stations. In Pakistan,
first fast food chain was opened in 1997, that was KFC and just after a year, Mc
Donald’s opened in 1998. There is no looking back since then. Pakistani people
love to eat inter-continental and Chinese cuisines. Pakistani cuisine is also being
recognized due to globalized world.

The variety of Pakistani Music ranges from diverse provincial folk music and
traditional styles such as Qawwali and Ghazal Gayaki to modern forms fusing
traditional and western music, such as synchronization of Qawwali and western
music by the world renowned Nusrat Fateh Ali Khan. Various American,
European, and Asian Television channels and films are available alongside state
owned PTV and other privately owned channels. People have wide variety to
choose, what they like to listen and watch. They have access to latest movie and
music releases, making it more competitive for the Pakistan’s Movie and Music
industry.

Economic globalization has provided opportunities for developing countries, that

it expands the size of their markets for export and attract foreign capital, which
aids development. Foreign investment is a conducive to a transfer of technologies
and knowhow, which increases productivity.

Another positive effect of globalization is greater competition among firms,

which benefits consumers who have access to products at increasingly lower
prices. Those who gain most from free trade in both developed and developing
countries are very often poorest since they can buy good at more affordable
prices, and therefore have a higher standard of living. In this way, free trade can
be seen as an indirect way to reduce poverty. Pakistan liberalized its economy as
a part of adjustment but Pakistan’s trade expansion has not been as spectacular
as some of the fast globalizers. Pakistan’s exports, merchandize exports, have not
kept pace with that of the rest of the world.

Pakistan is facing challenges due to rise in competitive conditions so the industry

has to be improved to compete with foreign competitors. Trade sector is lead to
growth because trade barriers are reduced by globalization. Manufacturing
industry is growing now exports are more in manufacturing industry. The
communication technology revolution also brought life to the economy of
Pakistan. Now this sector is growing fast and taking part in economic
development. For winner of the process, Globalization becomes an integrating
phenomenon, one that brings together markets, ideas, individuals, goods and
services and communication. For the losers, it can be a marginalizing
phenomenon. Just as the winners come closer to each other they become more
distant from losers.

Pakistan is right now an example of hybrid society as a result of globalization,

trying to find its balance between Islamisation and modernism. Globalization
has tremendously changed the dressing, cuisine, cultural values, purchasing
power and socio-economic system of Pakistan.
THIS country has tried — unsuccessfully — to evade globalisation. However, the
technological era, especially the internet, means we must deal with the delayed
effects of globalisation.
As mediums such as the social media and the electronic media become dominant,
our traditions are facing its consequences. French sociologist Pierre Bourdieu gave
the concept of habitus, which refers to the physical aspect of cultural capital,
socialized habits and the characteristics we acquire due to our experiences:
indicators such as food, music, films, clothes and house decoration help in
determining this habitus.
This theory stands true if we observe the Pakistani youth of today. The use of
WhatsApp, Facebook and Instagram every hour is common. Eating out regularly
or ordering fast food is not for special occasions anymore; clothing trends have
also changed. These changes have slowly integrated into Pakistani culture. It was
earlier thought that traditional roots could not easily be broken; the clear effects
of the media have shown that this is not true.

What will drive the future of globalization?

A host of factors, many unforeseeable, will determine the course of globalization.
But it is useful to try to isolate the most important drivers and those that are
already apparent. Here are five, encompassing economics, politics, and
institutions.

Economic logic

In the rush to declare the end of globalization, it is important to remember that

the theory of comparative advantage hasn’t gone away. It remains both cost
effective and efficient for firms to source their supply chains from across the
globe. Lower transport costs and technology have made that easier and that will
remain the case. Digitalization is driving that process even faster in the
globalization of services. These compelling reasons for the huge investment in
global supply chains will continue to drive firm behavior. The COVID-19 pandemic
has shown us how costly and difficult it can be to unwind these chains. And the
recent bounce back in trade (other than travel and tourism) is already
demonstrating that re-shoring expectations are probably inflated. It would be a
mistake to conclude that firms will be willing to bear the often-higher costs and
competitive risks of sourcing everything locally in the post-pandemic world.
Politics may play more of a role going forward in shaping supply chains, but it will
not supersede economics.

Demographics

The scale of both migration and displaced populations has become a major source
of international debate and domestic political tensions in a growing number of
countries. Yet, migration and labor mobility are an essential feature of a world
where populations are stagnant and aging in some countries but young and
growing elsewhere. They also reflect the human cost of conflict and climate
induced displacement, neither of which is likely to diminish in the near term.
Properly managed, migration can be a major, even critical, source of opportunity
with shared benefits for sending and receiving countries – as shown by CGD
research.

Unfortunately, the global system was mostly built around flows of goods and
services and, to a lesser extent, capital. The lack of international cooperation and
political and financial burden sharing on migration is becoming increasingly
untenable. Common standards and rules for treatment of asylum seekers,
multilateral resources for helping receiving countries bear the costs of conflict- or
climate-driven migration surges, standardized and efficient guest work programs,
multilateral support for economic policies that help migrants become growth-
drivers, all these are possible if governments perceive their common interest in
collectively managing migration to maximize gains and minimize costs.

The rise of global public goods (GPGs)

Recognition is growing that our own lives are impacted by events that can only be
managed effectively through global coordination. Pandemics and climate change
are the most obvious, but biological and cyber terrorism, combatting illicit
financial flows, data privacy rules, and rules on the use of artificial intelligence,
are all examples where we need nearly everyone to act on the same or parallel
path for the world to be safe. But the difficulties we are seeing in mounting an
effective global response to even the most pressing problem of ending this
pandemic or reaching carbon agreements at COP26 in a month, reflect two other
forces that have also become stronger.
The populist backlash from both right and left

While the two sides approach it from opposite ends and have very different
values, they attribute some common problems to globalization. For both,
globalization is associated with across-the-board liberalization, growing
inequality, financial crisis, and a sense of not being able to control one’s own
economic and social destiny. COVID-19 has in many ways reinforced the belief
that the pandemic wouldn’t have been as bad if we weren’t so open.

Intensifying rivalry between China and the US

The worsening tensions and rhetoric on both sides are making it much harder for
the two largest economies to cooperate even on the issues where such
cooperation is in their own national interest instead choosing to engage
in “strategic competition”. And the strains are increasingly compelling other
countries to choose sides, re-dividing the world at a time when collective success
depends more than ever on collective action. It does not bode well when
the White House hosted a Global COVID-19 Summit, with representatives from
more than 100 governments and other partners, and did not invite China, the
world’s largest producer of vaccines. In theory, the two countries could insulate
their common efforts to combat climate change from differences on most other
issues. But, as we saw in the Cold War, in practice such exceptions are very rare
and highly vulnerable to ongoing political risk.
Where does this leave us? Long-term policy and institutional implications
Reconciling globalization with national security

Globalization must mutate to suit the national interest more broadly defined.
Economic realities will be part of the national interest as will the need to
cooperate on global threats, but these will need to be balanced against the need
to reduce linkages with countries that are less reliable as they move away from
the market democracy model and to respond to domestic political pressures from
left and right. We need better, evidence-based, and trusted public decision-
making mechanisms for weighing short-term vs. long-term economic impacts and
security benefits vs. economic costs.

Trade: Widening the aperture

Rules and policies have traditionally focused on benefits for global consumers
based on comparative advantage. Going forward, countries will need trade rules
and rule adjustments that allow them to also pursue other national objectives –
labor and environmental standards, urgent health needs, and gains for job-
creating, green, and socially beneficial producers. This could mean allowing well-
targeted subsidies not subject to countervailing duties, border carbon adjustment
mechanisms that help low-carbon firms compete on a level playing field,
intellectual property protection waivers for vaccine production, or common
disciplines for protecting data privacy.

Migration: Collective action

New international agreements and governance structuctures will have to be built

to help manage and share the short-term costs of migration for receiving
countries, along with better strategies for integrating migrants into productive
employment. This is probably unrealistic at the global level. Progress may be
more feasible in certain regions that could then serve as models for global policies
(just as trade liberalization started as—and is increasingly returning to—a regional
phenomenon).

Helping capital flow where it is most needed

Clamping down on global flows of private capital as part of the anti-globalization

fervor is inefficient for the same reasons as clamping down on goods/services
trade. The IMF has already recognized that some regulation is needed depending
on the stage of capital market development and has moved a considerable
distance in supporting capital controls of certain types and under certain
conditions. But poorer countries are still largely left out of cross-border private
investment flows, and even emerging markets receive relatively little green
investment. Official capital to support private investments with positive
externalities needs to be enlarged and better targeted. This means bigger
international financial institutions (IFIs), and more catalytic, efficient use of their
capital. It also means major changes in the business models of multilateral
development banks. Especially for MDB private finance arms, the volume of their
own transactions should no longer be the central focus. Their success should be
measured chiefly by the volume of the private capital they mobilize for GPGs and
poverty reduction. IFI shareholders need to lead the way.

Global architecture for GPGs

Individual IFI governance and G20 governance fragmented across finance, health,
education, migration, and anti-terrorism channels are no longer sufficient, as we
are seeing in the global COVID-19 vaccination failure. This doesn't mean
eliminating IFI boards or downgrading the G20 finance channel. Rather it means
building new workable governance structures that bring together all the actors
needed to effectively address the different GPG challenges. One such example is
the proposal to create a body bringing together health and finance ministers from
the G20 and some other countries to regularly review the status of pandemic
preparedness and to ensure that critical gaps are identified and filled. More
broadly, there is a need to augment the voice and representation in the G20 of
poor countries, among the most vulnerable to cross-border challenges.

The bottom line is that globalization will have to evolve with a more
comprehensive concept of national interest, defined in broader terms than
economic efficiency to include pressing social and environmental challenges
confronting both rich and poor countries. In parallel, the management of global
flows will require new and augmented multilateral structures that bring together
disparate ministries, poorer vulnerable countries, and key private actors. This will
certainly make globalization and its management more complex, but it is far
better than trying to erect barriers in a vain attempt to stop irresistible, and
potentially very beneficial, global forces.

The Impact of Globalization in the Developing Countries

Introduction

Globalization is a process of global economic, political and cultural integration. It

has made the world become a small village; the borders have been broken down
between countries. ''The history of globalization goes back to the second half of
the twentieth century, the development of transport and communication
technology led to situation where national borders appeared to be too limiting for
economic activity'' (Economic Globalization in Developing Countries, 2002).
Globalization is playing an increasingly important role in the developing countries.
It can be seen that, globalization has certain advantages such as economic
processes, technological developments, political influences, health systems, social
and natural environment factors. It has a lot of benefit on our daily life.
Globalization has created new opportunities for developing countries. Such as,
technology transfer holds out promise, greater opportunities to access developed
countries markets, growth and improved productivity and living standards.
However, it is not true that all effects of this phenomenon are positive. Because,
globalization has also brought up new challenges such as, environmental
deteriorations, instability in commercial and financial markets, increase inequity
across and within nations. This paper evaluates the positive and negative impact
of globalization on developing nations in the following proportions;

1- Economic and Trade Processes Field

2- Education and Health Systems

3- Culture Effects

1- Economic and Trade Processes Field

Globalization helps developing countries to deal with rest of the world increase
their economic growth, solving the poverty problems in their country. In the past,
developing countries were not able to tap on the world economy due to trade
barriers. They cannot share the same economic growth that developed countries
had. However, with globalization the World Bank and International Management
encourage developing countries to go through market reforms and radical
changes through large loans. Many developing nations began to take steps to
open their markets by removing tariffs and free up their economies. The
developed countries were able to invest in the developing nations, creating job
opportunities for the poor people. For example, rapid growth in India and China
has caused world poverty to decrease (blogspot.com.2009). It is clear to see that
globalization has made the relationships between developed countries and
developing nations stronger, it made each country depend on another country.
According to Thirlwall (2003:13) " Developing countries depend on developed
countries for resource flows and technology, but developed countries depend
heavily on developing countries for raw materials, food and oil, and as markets
for industrial goods". One the most important advantages of globalization are
goods and people are transported easier and faster as a result free trade between
countries has increased, and it decreased the possibility of war between
countries. Furthermore, the growth in the communication between the
individuals and companies in the world helped to raise free trade between
countries and this led to growth economy. However, globalization has many
economy and trade advantages in the developing countries, we must also note
the many disadvantages that globalization has created for the poor countries.
One reason globalization increases the inequality between the rich and poor, the
benefits globalization is not universal; the richer are getting rich and the poor are
becoming poorer. Many developing countries do benefit from globalization but
then again, many of such nations do lag behind." In the past two decades, China
and India have grown faster than the already rich nations. However, countries like
Africa still have the highest poverty rates, in fact, the rural areas of China which
do not tap on global markets also suffer greatly from such high poverty
(blogspot.com.2009). On the other hand, developed countries set up their
companies and industries to the developing nations to take advantages of low
wages and this causing pollution in countries with poor regulation of pollution.
Furthermore, setting up companies and factories in the developing nations by
developed countries affect badly to the economy of the developed countries and
increase unemployment.

2- Education and Health Systems

Globalization contributed to develop the health and education systems in the

developing countries. We can clearly see that education has increased in recent
years, because globalization has a catalyst to the jobs that require higher skills set.
This demand allowed people to gain higher education. Health and education are
basic objectives to improve any nations, and there are strong relationships
between economic growth and health and education systems. Through growth in
economic, living standards and life expectancy for the developing nations
certainly get better. With more fortunes poor nations are able to supply good
health care services and sanitation to their people. In addition, the government of
developing countries can provide more money for health and education to the
poor, which led to decrease the rates of illiteracy. This is seen in many developing
countries whose illiteracy rate fell down recently. It is truth that, living standards
and life expectancy of developing countries increase through economic gains
from globalization. According to the World Bank (2004) " With globalization, more
than 85 percent of the world's population can expect to live for at least sixty years
and this is actually twice as long as the average life expectancy 100 years ago". In
addition, globalization helped doctors and scientists to contribute to discover
many diseases, which spread by human, animals and birds, and it helped them to
created appropriate medicines to fight these deadly diseases. For example,
HIV/ADIS, swine flu and birds' flu whole world know about these diseases and
they know how to avoid it. By globalization, there are many international
organizations, such as, Non-governmental Organization (NGO), World Health
Organization (WHO) and UNESCO, trying to eliminate illiteracy and deadly
diseases in the world and save the life. In spite of these positive effects of
globalization to the education and health fields in the developing countries.
However, globalization could have negative impacts also in these fields;
globalization facilitates the spread of new diseases in developing nations by
travelers between countries. Due to increased trade and travel, many diseases
like HIV/ADIS, Swine Flu, Bird Flu and many plant diseases, are facilitated across
borders, from developed nations to the developing ones. This influences badly to
the living standards and life expectancy these countries. According to the World
Bank (2004) "The AIDS crisis has reduced life expectancy in some parts of Africa to
less than 33 years and delay in addressing the problems caused by economic".
Another drawback of globalization is, globalized competition has forced many
minds skilled workers where highly educated and qualified professionals, such as
scientists, doctors, engineers and IT specialists, migrate to developed countries to
benefit from the higher wages and greater lifestyle prospects for themselves and
their children. This leads to decrease skills labour in the developing countries.

3- Culture Effects
Globalization has many benefits and detriment to the culture in the developing
countries. Many developing countries cultures has been changed through
globalization, and became imitate others cultures such as, America and European
countries. Before globalization it would not have been possible to know about
other countries and their cultures. Due to important tools of globalization like
television, radio, satellite and internet, it is possible today to know what is
happening in any countries such as, America, Japan and Australia. Moreover,
people worldwide can know each other better through globalization. For example,
it is easy to see more and more Hollywood stars shows the cultures different from
America. In addition, today we can see clearly a heavily effect that caused by
globalization to the young people in the different poor nations, it is very common
to see teenagers wearing Nike T-Shirts and Adidas footwear, playing Hip-Hop
music, using Apple ipad and iPhone and eating at MacDonald, KFC and Domino's
Pizza. It is look like you can only distinguish them by their language. One the other
hand, many developing countries are concerned about the rise of globalization
because it might lead to destroy their own culture, traditional, identity, customs
and their language. Many Arab countries such as Iraq, Syria, Lebanon and Jordan,
as developing countries have affected negatively in some areas, their cultures,
Developing Country Studies www.iiste.org customs and traditional have been
changed. They wear and behave like developed nations, a few people are wearing
their traditional cloths that the used to. Furthermore, globalization leads to
disappearing of many words and expressions from local language because many
people use English and French words. In addition, great changes have taken place
in the family life, young people trying to leave their families and live alone when
they get 18 years old, and the extended family tends to become smaller than
before (Kurdish globe, 2010).

Conclusion

In conclusion, as we can see, the process of globalization has involved all the
countries around the world. Developing countries such as India, China, Iraq, Syria,
Lebanon, Jordan and some Africa's countries, have been affected by globalization,
and whether negatively or positively, the economies of these countries have
improved under the influence of globalization. The size of direct foreign
investment has increased and a lot of bad habits and traditions erased, but also
globalization has brought many drawbacks to these countries as well. Many
customs and cultures are disappeared such as traditions clothes and some
language and expressions have changed. In addition, the violence and drugs
abuse are increased and a lot of deadly diseases have spread under the influence
of globalization. However, although globalization has many disadvantages, we
believe that globalization has brought the developing countries many more
benefits than the detriments. For example, we can see there is more and a
biggest opportunity for people in both developed countries and developing
countries to sell as many goods to as many people as right now, so we can say this
is the golden age for business, commerce and trade.

How Globalization Affects Developed Countries

Components of Globalization

The components of globalization include GDP, industrialization, and the Human

Development Index (HDI). The GDP is the market value of all finished goods and
services produced within a country's borders in a year and serves as a measure of
a country's overall economic output. Industrialization is a process that, driven by
technological innovation, effectuates social change and economic development
by transforming a country into a modernized industrial, or developed nation. The
Human Development Index comprises three components: a country's
population's life expectancy, knowledge and education measured by the adult
literacy, and income.2
The degree to which an organization is globalized and diversified has bearing on
the strategies that it uses to pursue greater development and investment
opportunities.

The Economic Impact on Developed Nations

Globalization compels businesses to adapt to different strategies based on new
ideological trends that try to balance the rights and interests of both the
individual and the community as a whole. This change enables businesses to
compete worldwide and also signifies a dramatic change for business leaders,
labor, and management by legitimately accepting the participation of workers and
the government in developing and implementing company policies and
strategies. Risk reduction via diversification can be accomplished through
company involvement with international financial institutions and partnering
with both local and multinational businesses.
Globalization brings reorganization at the international, national, and sub-
national levels. Specifically, it brings the reorganization of
production, international trade, and the integration of financial markets. This
affects capitalist economic and social relations, via multilateralism
and microeconomic phenomena, such as business competitiveness, at the global
level. The transformation of production systems affects the class structure, the
labor process, the application of technology, and the structure and organization
of capital. Globalization is now seen as marginalizing the less educated and low-
skilled workers. Business expansion will no longer automatically imply increased
employment. Additionally, it can cause a high remuneration of capital, due to its
higher mobility compared to labor.
The phenomenon seems to be driven by three major forces: the globalization of
all product and financial markets, technology, and deregulation. Globalization of
product and financial markets refers to an increased economic
integration in specialization and economies of scale, which will result in greater
trade in financial services through both capital flows and cross-border entry
activity. The technology factor, specifically telecommunication and information
availability, has facilitated remote delivery and provided new access
and distribution channels, while revamping industrial structures for financial
services by allowing entry of non-bank entities, such as telecoms and utilities.
Deregulation pertains to the liberalization of capital accounts and financial
services in products, markets, and geographic locations. It integrates banks by
offering a broad array of services, allows entry of new providers, and increases
multinational presence in many markets and more cross-border activities.
In a global economy, power is the ability of a company to command both tangible
and intangible assets that create customer loyalty, regardless of location.
Independent of size or geographic location, a company can meet global standards
and tap into global networks, thrive and act as a world-class thinker, maker,
and trader, by using its greatest assets: its concepts, competence, and
connections.

Beneficial Effects
Some economists have a positive outlook regarding the net effects of
globalization on economic growth. These effects have been analyzed over the
years by several studies attempting to measure the impact of globalization on
various nations' economies using variables such as trade, capital flows, and their
openness, GDP per capita, foreign direct investment (FDI), and more. These
studies examined the effects of several components of globalization on growth
using time-series cross-sectional data on trade, FDI, and portfolio investment.
Although they provide an analysis of individual components of globalization on
economic growth, some of the results are inconclusive or even contradictory.
However, overall, the findings of those studies seem to be supportive of the
economists' positive position, instead of the one held by the public and non-
economist view.34

Trade among nations via the use of comparative advantage promotes growth,
which is attributed to a strong correlation between the openness to trade flows
and the effect on economic growth and economic performance.5
Additionally, there is a strong positive relation between capital flows and their
impact on economic growth.6
Foreign Direct Investment's impact on economic growth has had a positive
growth effect in wealthy countries and an increase in trade and FDI, resulting in
higher growth rates.7
Empirical research examining the effects of several components of globalization
on growth, using time series and cross-sectional data on trade, FDI and portfolio
investment, found that a country tends to have a lower degree of globalization if
it generates higher revenues from trade taxes. Further evidence indicates that
there is a positive growth-effect in countries that are sufficiently rich, as are most
of the developed nations.
The World Bank reports that integration with global capital markets can lead to
disastrous effects, without sound domestic financial systems in place.8
One of the potential benefits of globalization is to provide opportunities for
reducing macroeconomic volatility on output and consumption via diversification
of risk.

Harmful Effects

Non-economists and the wide public expect the costs associated with
globalization to outweigh the benefits, especially in the short-run. Less wealthy
countries from those among the industrialized nations may not have the same
highly-accentuated beneficial effect from globalization as more wealthy countries,
measured by GDP per capita, etc. Although free trade increases opportunities for
international trade, it also increases the risk of failure for smaller companies that
cannot compete globally. Additionally, free trade may drive up production and
labor costs, including higher wages for a more skilled workforce, which again can
lead to outsourcing jobs from countries with higher wages.
Domestic industries in some countries may be endangered due to comparative
or absolute advantage of other countries in specific industries. Another possible
danger, and harmful effect, is the overuse and abuse of natural resources to meet
new higher demands in the production of goods.

The Bottom Line

One of the major potential benefits of globalization is to provide opportunities for

reducing macroeconomic volatility on output and consumption via diversification
of risk. The overall evidence of the globalization effect on macroeconomic
volatility of output indicates that although direct effects are ambiguous in
theoretical models, financial integration helps in a nation's production base
diversification, and leads to an increase in specialization of production. However,
the specialization of production, based on the concept of comparative advantage,
can also lead to higher volatility in specific industries within an economy and
society of a nation. As time passes, successful companies, independent of size,
will be the ones that are part of the global economy.

IMPACTS OF GLOBALIZATION
Globalization has benefits that cover many different areas. It reciprocally
developed economies all over the world and increased cultural exchanges. It also
allowed financial exchanges between companies, changing the paradigm of work.
Many people are nowadays citizens of the world. The origin of goods became
secondary and geographic distance is no longer a barrier for many services to
happen. Let’s dig deeper.
The Engine of Globalization – An Economic Example

The most visible impacts of globalization are definitely the ones affecting the
economic world. Globalization has led to a sharp increase in trade and economic
exchanges, but also to a multiplication of financial exchanges.

In the 1970s world economies opened up and the development of free trade
policies accelerated the globalization phenomenon. Between 1950 and 2010,
world exports increased 33-fold. This significantly contributed to increasing the
interactions between different regions of the world.

This acceleration of economic exchanges has led to strong global economic

growth. It fostered as well a rapid global industrial development that allowed the
rapid development of many of the technologies and commodities we have
available nowadays. Knowledge became easily shared and international
cooperation among the brightest minds speeded things up. According to some
analysts, globalization has also contributed to improving global economic
conditions, creating much economic wealth (thas was, nevertheless, unequally
distributed – more information ahead).

Globalization Benefits – A Financial Example

At the same time, finance also became globalized. From the 1980s, driven by neo-
liberal policies, the world of finance gradually opened. Many states, particularly
the US under Ronald Reagan and the UK under Margaret Thatcher introduced the
famous “3D Policy”: Disintermediation, Decommissioning, Deregulation.

The idea was to simplify finance regulations, eliminate mediators and break down
the barriers between the world’s financial centers. And the goal was to make it
easier to exchange capital between the world’s financial players. This financial
globalization has contributed to the rise of a global financial market in which
contracts and capital exchanges have multiplied.

Globalization – A Cultural Example

Together with economic and financial globalization, there has obviously also been
cultural globalization. Indeed, the multiplication of economic and financial
exchanges has been followed by an increase in human exchanges such as
migration, expatriation or traveling. These human exchanges have contributed to
the development of cultural exchanges. This means that different customs and
habits shared among local communities have been shared among communities
that (used to) have different procedures and even different beliefs.

Good examples of cultural globalization are, for instance, the trading of

commodities such as coffee or avocados. Coffee is said to be originally from
Ethiopia and consumed in the Arabid region. Nonetheless, due to commercial
trades after the 11th century, it is nowadays known as a globally consumed
commodity. Avocados, for instance, grown mostly under the tropical
temperatures of Mexico, the Dominican Republic or Peru. They started by being
produced in small quantities to supply the local populations but today guacamole
or avocado toasts are common in meals all over the world.

At the same time, books, movies, and music are now instantaneously available all
around the world thanks to the development of the digital world and the power
of the internet. These are perhaps the greatest contributors to the speed at which
cultural exchanges and globalization are happening. There are also other
examples of globalization regarding traditions like Black Friday in the US, the
Brazilian Carnival or the Indian Holi Festival. They all were originally created
following their countries’ local traditions and beliefs but as the world got to know
them, they are now common traditions in other countries too.

Why Is Globalization Bad? The Negative Effects of

Globalization
Globalization is a complex phenomenon. As such, it has a considerable influence
on several areas of contemporary societies. Let’s take a look at some of the main
negative effects globalization has had so far.

The Negative Effects of Globalization on Cultural Loss

Apart from all the benefits globalization has had on allowing cultural exchanges it
also homogenized the world’s cultures. That’s why specific cultural characteristics
from some countries are disappearing. From languages to traditions or even
specific industries. That’s why according to UNESCO, the mix between the
benefits of globalization and the protection of local culture’s uniqueness requires
a careful approach.
The Economic Negative Effects of Globalization

Despite its benefits, the economic growth driven by globalization has not been
done without awakening criticism. The consequences of globalization are far from
homogeneous: income inequalities, disproportional wealth and trades that
benefit parties differently. In the end, one of the criticisms is that some actors
(countries, companies, individuals) benefit more from the phenomena of
globalization, while others are sometimes perceived as the “losers” of
globalization. As a matter of fact, a recent report from Oxfam says that 82% of the
world’s generated wealth goes to 1% of the population.

The Negative Effects of Globalization on the Environment

Many critics have also pointed out that globalization has negative effects on the
environment. Thus, the massive development of transport that has been the basis
of globalization is also responsible for serious environmental problems such as
greenhouse gas emissions, global warming or air pollution. At the same time,
global economic growth and industrial productivity are both the driving force and
the major consequences of globalization. They also have big environmental
consequences as they contribute to the depletion of natural
resources, deforestation and the destruction of ecosystems and loss
of biodiversity. The worldwide distribution of goods is also creating a big garbage
problem, especially on what concerns plastic pollution.

Interdependence

Interdependence between nations can cause local or global instability. This occurs if
local economic fluctuations end up impacting a large number of countries relying on
them.5 For example, in 2020, Ukraine was the fifth larger exporter of wheat. When
Russia invaded the country, it threatened food supply chains for countries like
Pakistan, Lebanon, and Vietnam that import Ukrainian wheat.

national Sovereignty

Some see the rise of nation-states, global firms, and other international
organizations as a threat to sovereignty. Ultimately, this could cause some leaders to
become nationalistic Two prominent examples of the rise of nationalism as a
pushback to globalism include the 2016 election of Donald Trump in the U.S. and the
British vote to leave the European Union (known as "Brexit"). These events
contributed to the anti-globalization movement and stoked anti-immigration
sentiments.

Equity Distribution

The pros of globalization can be unfairly skewed toward rich nations or

individuals, creating greater economic inequalities.8 For example, in the wake of
NAFTA, the average net weekly pay for maquila workers was $55.77 in 1998—less
than $2 more than the average cost for basic needs in the maquiladora trade
zone.

Dani Rodrick, author of Straight Talk on Trade: Ideas for a Sane World Economy,
argues for a rebalancing of globalization.

Globalization, Sustainable Development, and CSR

Globalization affects all sectors of activity to a greater or lesser extent. By doing

so, its gap with issues that have to do with sustainable
development and corporate social responsibility is short.

By promoting large-scale industrial production and the globalized circulation of

goods, globalization is sometimes opposed to concepts such as resource savings,
energy savings or the limitation of greenhouse gases. As a result, critics of
globalization often argue that it contributes to accelerating climate change and
that it does not respect the principles of ecology. At the same time, big companies
that don’t give local jobs and choose instead to use the manpower of countries
with low wages (to have lower costs) or pay taxes in countries with more
favorable regulations is also opposed to the criteria of a CSR approach. Moreover,
the ideologies of economic growth and the constant pursuit of productivity that
come along with globalization, also make it difficult to design a sustainable
economy based on resilience. On the other hand, globalization is also needed for
the transitioning to a more sustainable world, since only a global synergy would
really be able to allow a real ecological transition. Issues such as global warming
indeed require a coordinated response from all global players: fight against CO2
emissions, reduction of waste, a transition to renewable energies. The same goes
for ocean or air pollution, or ocean acidification, problems that can’t be solved
without global action. The dissemination of green ideas also depends on the
ability of committed actors to

The Road from Globalization to Regionalization from a

globalization perspective, regionalization means a world that is less
interconnected and has a stronger regional focus. Regionalization can also be
analyzed from a corporate perspective. For instance, businesses such as
McDonald’s or Starbucks don’t sell exactly the same products everywhere. In
some specific stores, they consider people’s regional habits. That’s why the
McChicken isn’t sold in India, whereas in Portugal there’s a steak sandwich menu
like the ones you can get in a typical Portuguese restaurant.

Politically speaking, when left-wing parties are in power they tend to focus on
their country’s people, goods and services. Exchanges with the outside world
aren’t seen as very valuable and importations are often left aside.

CONCLUSION.
Globalization Quotes by World Influencers

Many world leaders, decision-makers and influential people have spoken about
globalization. Some stand out its positive benefits and others focus deeper on its
negative effects. Find below some of the most interesting quotes on this issue.

Politic Globalization Quotes

Globalization quote by the former U.S President Bill Clinton ??

No generation has had the opportunity, as we now have, to build a global

economy that leaves no-one behind. It is a wonderful opportunity, but also a
profound responsibility.

Globalization quote by Barack Obama, former U.S. president ??

Globalization is a fact, because of technology, because of an integrated global

supply chain, because of changes in transportation. And we’re not going to be
able to build a wall around that.

Globalization quote by Dominique Strauss-Kahn, former International Monetary

Fund Managing Director ??

“We can’t speak day after day about globalization without at the same time
having in mind that…we need multilateral solutions.”

Globalization quote by Stephen Harper, former Prime Minister of Canada ??

“We have to remember we’re in a global economy. The purpose of fiscal stimulus
is not simply to sustain activity in our national economies but to help the global
economy as well, and that’s why it’s so critical that measures in those packages
avoid anything that smacks of protectionism.”

Globalization quote by Julia Gillard, Prime Minister of Australia ??

“My guiding principle is that prosperity can be shared. We can create wealth
together. The global economy is not a zero-sum game.”

Other Globalization Quotes

Globalization quote by the spiritual leader Dalai Lama ??

“I find that because of modern technological evolution and our global economy,
and as a result of the great increase in population, our world has greatly changed:
it has become much smaller. However, our perceptions have not evolved at the
same pace; we continue to cling to old national demarcations and the old feelings
of ‘us’ and ‘them’.”

The famous German sociologist Ulrich Beck also spoke of globalization ??

“Globalization is not only something that will concern and threaten us in the
future, but something that is taking place in the present and to which we must
first open our eyes.”

Globalization quote by Bill Gates, owner and former CEO of Microsoft ??

“The fact is that as living standards have risen around the world, world trade has
been the mechanism allowing poor countries to increasingly take care of really
basic needs, things like vaccination.”

Globalization quote by John Lennon, member of the music band The Beatles ??

Imagine there’s no countries. It isn’t hard to do. Nothing to kill or die for. And no
religion, too. Imagine all the people. Living life in peace. You, you may say I’m a
dreamer. But I’m not the only one. I hope someday you will join us. And the world
will be as one