Globalization and Its Characteristics

Globalization is the process of increased interconnectedness among countries most notably in the areas of economics, politics, and culture. McDonalds in Japan, French films being played in Minneapolis, and the United Nations, are all representations of globalization.

The idea of globalization may be simplified by identifying several key characteristics:

a.     Improved Technology in Transportation and Telecommunications: what makes the rest of this list possible is the ever-increasing capacity for and efficiency of how people and things move and communicate. In years past, people across the globe did not have the ability to communicate and could not interact without difficulty. Nowadays, a phone, instant message, fax, or video conference call can easily be used to connect people. Additionally, anyone with the funds can book a plane flight and show up half way across the world in a matter of hours. In short, the "friction of distance" is lessened, and the world begins to metaphorically shrink.

b.     Movement of People and Capital: a general increase in awareness, opportunity, and transportation technology has allowed for people to move about the world in search of a new home, a new job, or to flee a place of danger. Most migration takes place within or between developing countries, possibly because lower standards of living and lower wages push individuals to places with a greater chance for economic success. Additionally, capital (money) is being moved globally with the ease of electronic transference and a rise in perceived investment opportunities. Developing countries are a popular place for investors to place their capital because of the enormous room for growth.

c.     Diffusion of Knowledge: The word 'diffusion' simply means to spread out, and that is exactly what any new found knowledge does.

d. Non-Governmental Organizations (NGOs) and Multinational Corporations: As global awareness of certain issues has risen, so too has the number of organizations that aim to deal with them. So called non-governmental organizations bring together people unaffiliated with the government and can be nationally or globally focused. Many international NGOs deal with issues that do not pay attention to borders (such as global climate change, energy use, or child labor regulations). Examples of NGOs include Amnesty International or Doctors without Borders.

e.     Global business: One reason that businesses are going global is that some jobs can be done by foreign workers for a much cheaper cost than domestic workers; on the other hand, more complex activities are located in countries, which have skills workers. This practice of transferring production to different places or countries is called outsourcing.

      Go to label "Research and keep on task" - "Globatization" and complete your homework about "outsourcing" By the way, you can not "outsource" it! :)

Departamento de Humanidades

Geography 3º ESO

Unit 5.: A GLOBALIZED ECONOMY

Globalization it is widely discussed topic. It is therefore not all easy to explain such a complicated term in simple words. Lets start from the beginning with the background to globalization.

Advantages in technology such as mobiles phones, aeroplanes, telephones and the Internet have made the growth of transport and communication networks possible. Amongst other things, this means that people and countries can exchange information and goods more quickly and in a less complicated way. This process is called globalization. Globalization comes from globe and means that the word wide comes together of countries and nations.

Let’s look and example: companies used to manufacture products in their home countries, just like the companies PROFI-TV and SUPERCOLOR which produced televisions in country A2. The product are in direct competition with each other [inside of the country], but both companies are paying the same salaries and production cos. They have the same costumers, use similar supplies and send televisions at similar prices. In short, the same conditions apply to both companies, so far so good.

Due to technical cultural and economic development that came about through globalization other companies which manufactures products under different conditions can now offer that product in country A2. That’s why it company from country B can sell televisions here at a lower price, because there were produced from less. The local farm SUPERCOLOR and PROFI-TV have to react to restraint the competition and so the world grows closer together and these reasons actives changes of goods and between countries: more affordable products are available for more people, however, not only does and exchange of products and economic goods take place but all self services, knowledge, cultural goods and even languages. All of these individuals elements are closely linked and influence each other but where there is a light there is also shadow because globalization and its intense exchange of goods, people and the environment often suffer. If the company decides move production to economic disadvantaged country, people in industrialized country lose that jobs at the same time job opportunities open up too many locals in the economically disadvantages countries. Many people in these countries work for very little money in comparison to those in industrialized countries: therefore they often remain poor and more often than not they do not have sufficient insurance social insurance or health insurance company.

QUESTIONS:

1. In the video said that there is a competition between two different companies (SUPERCOLOR AND PROFI-TV) in country A2, however televisions made in these companies are selling at the same price, why?

2. Company in undeveloped country (B2) is able to produce the same television in a lower price, why?

3. Furthermore, explain why is possible to sell these televisions in country A2. How does country A2 react with these purchases?

4. Point out, at least, two negative effects of globalization (linked with the example) in:

-       Developed country

-       Undeveloped country