Effects of Globalization
Globalization is one noble initiative. In summarization, globalization is an effort towards making the entire global community as one. All thanks to globalization, the goods that were produced in one part of the world can now be found in the other part of the world as well. Because of this, the underdeveloped countries can enjoy all the facilities that are available in the developed countries. All the discoveries and scientific advancements that the developed countries have made, now the underdeveloped countries and the developing countries can also use.
The biggest benefit of globalization is that the economies of all the countries are being integrated all thanks to the technology. The world as we know it is becoming smaller by the day and more and more employment opportunities are rising. Today, work can be obtained from any part of the world. This has become possible due to the increasing presence of the internet in our lives.
Globalization is that social and economic process with the help of which we can facilitate cross-cultural integration. This has become possible due to a globalized network of trade, commerce and communication. This process of globalization consists of many steps. Steps such as rapid technology, political developments, and most of all, transportation development, due to which we have been able to travel from one play to another. All these steps contribute to greater development opportunities for various companies.
Globalization has caused the new world renaissance. It has come with many benefits. Due to globalization, people can now move from one place to another without much hassle. Trade is becoming easier for people and the restrictions are reducing and domestic markets are opening up for all sorts of foreign investment and trade. Most importantly, countries which have better technology are passing it down to underdeveloped and developing countries. Countries are now sharing innovations with each other.
However, globalization still has a lot of effects. Let us study some of the effects of globalization.
Effects of Globalization
Globalization has been a boon for our age and generation. Let us see some effects of globalization.
Majority of the big companies in the developed countries are a result of state own industrial privatization. Many companies of such type are attempting to increase consumer demand. In order to do that, they need to expand their chains on an international level. This is where globalization comes in. The impact of globalization on the global scene has been huge. It is because of globalization that many privately owned businesses have been able to take it a notch up and expand their market from a national market to an international one. The consumer demand has also become international and they are able to generate more profit and revenue because of globalization now.
The Multinational Companies or MNC’s as we know it are all gifts of globalization. A lot of foreign investment is able to flow in through them. There are no global or geographical restrictions now when it comes to trade, all thanks to globalization.
Globalization has given birth to cross-cultural interactions between people. However, it has mainly facilitated the elite. In other words, globalization has become a playground where only the rich and affluent can play. The reason for that being; only the elite and rich are affluent enough to buy the products out for sale in the global market. The rich and elite classes of the world from very different backgrounds have been able to communicate because of globalization. A wave of westernization has washed over the plant and has become synonyms with affluence, style and power. Because of this, western patterns and languages have become the basics of business interactions.
Globalization has boosted foreign trade like nothing else has done in the past. The products and trends which could earlier be found only in the developed countries can now be found in all parts of the world. There were certain services which were privy to only the rich and elite of developed countries. All thanks to globalization, they can be found all across the world and are available to people of all socio-economic backgrounds.
A lot of nations are now dependent on foreign trade and the capital it brings with it. Because of globalization, the world market has increased by leaps and bounds. In short, Globalization has bridged the gaps between the developed and developing countries, the rich and the poor, and cultures of different countries.