Globalization

Globalization is the process by which businesses or other organisation develop international influence or start operating on an international scale.

How did globalization start?

Following centuries of European colonization and trade activity, that first "wave" of globalization was propelled by steamships, railroads, the telegraph and other breakthroughs and also by increasing economic cooperation among countries. 

How does globalization affect you?

Globalization is a longstanding trend that is in the process of changing and possibly slowing.  There are advantages to the more open border and free trade that globalization promotes, as well as negative consequences.  In a modern, post-pandemic world, individuals, businesses and countries must consider both sides of the globalization issue.

Is globalization here to stay?

Steve Jones is a professor of history at Southwestern Adventist University specializing in teaching and writing about American foreign policy and military history.

Globalization, for good or ill, is here to stay. Globalization is an attempt to abolish barriers, especially in trade. In fact, it has been around longer than you might think. 

Globalization is a social, cultural, political and legal phenomenon. Socially, it leads to greater exchange interaction among various populations. Culturally, globalization represents the exchange of ideas, values and artistic expression among cultures. 

Globalization is the spread of products, technology, information and jobs across national borders and cultures. In economic terms, it describes an interdependence of nations around the globe fostered through free trade. 

Effects of Globalization 

Globalization has both positive and negative effects. On an individual level, globalization affects both the standard of life and the quality of life. On a business level, globalization affects an organisation's product life cycle and an organisation's balance sheet. Globalization also affects how governments throughout the world create policies affecting areas such as monetary regulation and trade.

Individual Effects 

On an individual level, globalization has affected the standard of life and quality of life of individuals and families throughout the world. Standard of living is the level of wealth, comfort, material goods, necessities available to a certain socio-economic class in a certain geographic area. Quality of life is the degree to which a person enjoys the important possibilities of his or her life. For many developing nations, globalization has led to an improvement in standard of living through improved roads and transportation, improved health care and improved education due to the global expansion of corporations.  However, globalization has had a negative effect on individuals who live in developed nations. This is due to the fact that corporations now have the option of establishing manufacturing  operations in nations where manufacturing and production costs are less expensive. As a result, many manufacturing jobs leave developed nations and move to developing nations.

Corporate Effects

On a corporate level, globalization has had an effect on organisations' product and service life cycle. Product life cycle is the period of time over which an item is developed, brought to the market and eventually removed from the market place. One such example of globalization having a positive effect on a product's life cycle would be the Kinder Egg. Kinder Eggs are egged- shaped chocolate candies with tiny toys inside and are very with children.  However, due to globalization, the Kinder Egg is still a popular candy sold i Canada and several countries throughout Europe.

However, globalization could have a negative effect on corporation's balance sheets. An example of globalization having a negative effect on a corporation's balance sheet can be found in the United States steel industry.  For years, steel from Asian nations has come into the United States. This steel from Asian nations is cheaper thanthe steel manufactured in the United States.