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Meaning of Globalization
Globalization is a process whereby goods and services are sold without any barrier around the globe. It is one where markets are integrated with the global economy increasing the interconnectedness and interdependence of national economies on each other. Globalization leads to widespread of product, information, technology, and jobs among several nations fostering free trade. Today’s world is highly interconnected because of globalization resulting in more trade and cultural exchange. The production of products or services has increased enormously due to established networks among countries. Corporations running on a large scale are no longer national firms but operate internationally with many subsidiaries in different parts of the world.
Globalization is a multifaceted aspect in which multiple strategies are collected for transforming world towards development. Connections around the world is created in pursuit of removing all barriers such as economic, social and geographical. Globalization by doing so, unionize distinct peoples, government and corporations universally. In addition to providing economic benefits to countries, globalization also avoids war and bring peace among nations via strengthening their relations with one another. Countries get access to cheaper materials from around the world and, share knowledge and technology with one other.
Features of Globalization
Various features of globalization are as discussed in points given below: –
Free Trade
Globalization creates free trade relations among countries around the world. Countries buy and sell goods from each other freely without any government interference. With the growth in trade among nations, their economies also get flourished. It eventually leads to overall growth in the gross national product of the nation. Globalization also improves mutual relations and cooperation among countries in addition to their growth and development.
Liberalization
Liberalization refers to the freedom of corporations or business people to establish business ventures, trade, or commerce in their own country or anywhere abroad. Globalization gives liberalization to industrialists allowing them to set up business across several geographies. For example-Google, Samsung, Mi, Apple, and Nestle are some of the reputed firms operating in different parts of the world, which becomes possible due to liberalization and globalization.
Liberalization and globalization are two inter-related terms where one cannot grow without the support of one another. A more liberal a country is, better will be trading in that country.
Economic globalization
Globalization is one that integrates the domestic economies with the world economy. The economic interdependence on different economies increases as a result of globalization. Countries are more rapidly exchanging goods, services, technology, and capital with other economies. Globalization focuses on maintaining regulated taxes and tariffs for trader in business. Economic globalization relates to production globalization which means procuring materials from several nations to benefit from cost differences. Technology incorporation and competition also form the part of economic globalization.
Connectivity
Providing worldwide connectivity to distinct countries and places is one of the crucial features of globalization. It enables peoples present in different parts of the world to remain connected such that they can freely exchange ideas, information, and culture. There are many prosperous agreement and treaties which are decided by nations and is beneficial for both participating parties. There is an establishment of a free flow of literature, technology, and cultural knowledge on an international level. The business of the country flourishes with the increase in connectivity thereby adding to the national revenue of nations.
Connectivity work as a key growth factor for industries as well as business organizations. Higher the connectivity, more will be the boost in industrial sector, creating large jobs for people. Also, this will enhance the standard of living with the rise in money flow.
Increased collaboration
Globalization accelerates the process of collaboration among entrepreneurs in order to achieve technological advancement, rapid development, and modernization. With open doors and no bars on trade, corporations form a collaboration with each other where they share knowledge and expertise. This raises the level and quality of manufacturing operations contributing to the overall development and modernization of economies around the world.
Cultural globalization
Cultural globalization involves the transmission of values, ideas, and meaning around the globe which leads to strengthening the present relations. When the culture is circulated across the globe, the social behavior of peoples gets exchanged across national as well as regional borders. People from varied cultures and backgrounds came together because of cross-cultural communications and relations, enabling them to contribute towards cultural globalization. A cultural diffusion where distinct religious styles, languages, ideas, and technologies are diffused for spreading in many cultures is a key component of cultural globalization.
Product Advantage
It is one of the key benefits provided by globalization to business organizations operating around the world. Companies are easily able to source cheap raw material due to open trading. They set up their manufacturing plants in such locations where they get cheap labor and land thereby bring down the production cost for the company. The company produces products at lower prices in one country and sells them at good prices in other nations. Also, employment opportunities get an increase in countries where the factories are set up. This way the living standard of people working in those factories gets improved.
