Globalization

Globalization is the process of integration and exchange of economic, social, and cultural aspect of people beyond national boundaries. (Also read: Globalization: Meaning of Globalization and its Advantages and Disadvantages)

What causes Globalization?

1. Improved transport system, particularly airways and seaways, have to be credited for massive globalization. Movement between countries has become a matter of few hours.

2. The increased clarity over international laws have promoted businesses to go beyond national limits.

3. The telecommunication infrastructure and internet has made the world even smaller. The recent technological inventions has brought down the cost of voice conferencing. International webinars are held now and then. Due to deep penetration of Internet, even small eCommerce companies are making cross-border transactions.

Economic Globalization

In the present age of globalization, the economy of countries are inter-dependent. If the economy of one country fall in danger, other countries also feel the pain.

Businesses are engage in international transactions. Export-import among countries involves massive amount of money. For example, China has become a massive manufacturing hub. The electronic goods manufactured in China are sold across almost every country of the world.

Multinational-companies have economic interest across several nations. Companies such as Coca-cola, Pepsi, Ford, Unilever, TATA, etc. operate across multiple countries. They have big market and make huge investment in foreign countries. A decline in demand in one country affects the overall performance of these companies.

Cross-border merger and acquisitions

Due to Globalization, there has been an increase in cross-border Merger and acquisitions. For example, Tata Steel, an Indian company, had acquired Corus (British steel making company).

Emergence of India as a service and IT leader

India has emerged as a major player of service and Information Technology (IT) industry. Many Indian IT, ITes, BPO and KPO companies have worldwide presence. Their services are hired by companies around the world. Social Globalization Due to Globalization, the world is getting smaller every day.

Cultural exchange and philanthropic activities

As a result of globalization, we see cultural exchange among communities. People get the opportunity to exchange ideas and adopt better means of living.

Many philanthropic and social organisation are promoting the concept of universal brotherhood. They work for the betterment of entire humanity.

Environmental and other global issues

Various environmental issues have emerged as Global issues. Global warming, air pollution, soil pollution, deforestation, etc. are global issues. The countries are interdependent on each other. The need of the hour is to act together against various environmental and other Global issues so as to ensure a safer world.

Also read: Globalization: Meaning of Globalization and its Advantages and Disadvantages