Globalization

Globalisation or globalization is an umbrella term for a complex series of economic, social, technological, cultural and political changes seen as increasing interdependence, integration and interaction between people and companies in disparate locations. As a term 'globalization' has been used as early as 1944 but economists began applying it around 1981. Theodore Levitt is usually credited with its coining through the article he wrote in 1983 for the Harvard Business Review entitled "Globalization of Markets". The more encompassing phenomenon has been perceived in the context of sociological study on a worldwide scale.

The term "globalization" is used to refer to these collective changes as a process, or else as the cause of turbulent change. The distinct uses include:

* Economically and socially positive: As an engine of commerce; one which brings an increased standard of living -- prosperity to developing countries and further wealth to First World and Third World countries.

* Economically, socially, and ecologically negative: As an engine of "corporate imperialism"; one which tramples over the human rights of developing societies, claims to bring prosperity, yet often simply amounts to plundering and profiteering. Negative effects include cultural assimilation via cultural imperialism, the export of artificial wants, and the destruction or inhibition of authentic local and global community, ecology and cultures.

A typical - but restrictive - definition can be taken from the International Monetary Fund, which stresses the growing economic interdependence of countries worldwide through increasing volume and variety of cross-border transactions in goods and services, free international capital flows, and more rapid and widespread diffusion of technology. While that definition is more narrowly related to economic globalization; others utilize a broader conceptual framework, often emphasizing the interaction between diverse economic, ecological, political, cultural, and technological factors.

Contents

[hide]

* 1 Characteristics

* 2 Historical precedents

* 3 Anti-globalization

* 4 Pro-globalization (globalism)

* 5 Measurement of globalization

* 6 References

* 7 See also

* 8 External links

[edit] Characteristics

Globalization/internationalisation has become identified with a number of trends, most of which may have developed or accelerated since World War II. These include greater international movement of commodities, money, information, and people; and the development of technology, organizations, legal systems, and infrastructures to allow this movement. The actual existence of some of these trends is debated

* Economically

o Increase in international trade at a much faster rate than the growth in the world economy

o Increase in international flow of capital including foreign direct investment

o Creation of international agreements leading to organizations like the WTO and economic cartels such as OPEC

o Development of global financial systems

o Increased role of international organizations such as WTO, WIPO, IMF that deal with international transactions

o Increase of economic practices like outsourcing and offshoring by multinational corporations

* Culturally

o Greater international cultural exchange,

o Spreading of multiculturalism, and better individual access to cultural diversity, for example through the export of Hollywood and Bollywood movies. However, the imported culture can easily supplant the local culture, causing reduction in diversity through hybridization or even assimilation. The most prominent form of this is Westernization, but Sinicization of cultures also takes place.

o Greater international travel and tourism

o Greater immigration, including illegal immigration

o Spread of local consumer products (e.g., food) to other countries (often adapted to their culture)

o World-wide Fads and Pop Culture such as Pokйmon, Sudoku, Numa Numa, Origami, Idol series, YouTube, MySpace, and many others.

o World-wide sporting events such as FIFA World Cup and the Olympic Games.

o Formation or development of a set of universal values

* Technical/legal

o Development of a global telecommunications infrastructure and greater transborder data flow, using such technologies as the Internet, communication satellites, submarine fiber optic cable, and wireless telephones

o Increase in the number of standards applied globally; e.g. copyright laws and patents

o The push by many advocates for an international criminal court and international justice movements (see the International Criminal Court and International Court of Justice respectively).

It is often argued that even terrorism has undergone globalization, with attacks in foreign countries that have no direct relation with the own country.[1][2]

Barriers to international trade have been considerably lowered since World War II through international agreements such as the General Agreement on Tariffs and Trade (GATT). Particular initiatives carried out as a result of GATT and the WTO, for which GATT is the foundation, have included:

* Promotion of free trade

o Of goods:

 Reduction or elimination of tariffs; construction of free trade zones with small or no tariffs

 Reduced transportation costs, especially from development of containerization for ocean shipping.

o Of capital: reduction or elimination of capital controls

o Reduction, elimination, or harmonization of subsidies for local businesses

* Intellectual property restrictions

o Harmonization