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Globalization is not a new concept in the world. It may be farther along and advancing at a faster rate than ever before, but globalization has been around for hundreds and, arguably, thousands of years. The Silk Road spanned one-sixth the diameter of the planet – literally connecting the West and the East – and began during the Han Dynasty (roughly 200 B.C.).
Globalisation..or rather Globalization.. My spell check shows both of them wrong! I’ll stick with the one containing ‘s’ as that’s considered correct in the UK English. I guess ‘flattening of the globe’ will be one practical definition for it. Sure, physically the earth is round as it has always been, but many other changes taking place are making it flat (of course, not physically!). I suggest you to read ‘The World Is Flat’ by Thomas L. Friedman, which is basic book on globalization, it’s positive/negative effects, what caused the flattening process, and an unbiased look over how different countries can benefit from it, and a chapter devoted to terrorism (which is opposing the flattening process).
According to Friedman, though flattening process is going to benefit majority of the nations across the globe, that’s a big threat for USA. The book gives an indepth look on this. The worst year for many nations of the world, and particularly for USA was 2001. Not because of any bullshit 9/11, but because China joined WTO that year!
There’s been a lot of hullaboo regarding this and how it has impacted India andChina positively is of prime importance. Apart from this, think over what other effects globalisation can possibly have.
Please check it out….
Effects of Globalization
The spectacular change which we have seen in the Indian economy last decade is all credited to globalisation. Particularly, software/IT sector is credited to be the most global. This makes us to think on what good and bad effects globalisation can have. Globalisation has various aspects which affect the world in several different ways. I’ve tried to enlist a few, and please note I’m not an expert to get all these on my own. The major points such as ‘industrial, financial, etc.’ were derived from Wikipedia and I have added my own content and understanding to the same.
• Industrial (alias trans nationalization) – emergence of worldwide production markets and broader access to a range of foreign products for consumers and companies. We have so many foreign brands available here. Be it Nike from US,Adidas from Germany, Nokia from Finland, Samsung from South Koreaor Sony from Japan, we don’t really differentiate.
• Financial – The advent of so many foreign finance firms are a live example of this.ABN-AMRO, HSBC, Barclays, ING Vysya, Citibank and many have established a strong foothold in the Indian market. As a result, the BFSI [banking, financial services and insurance] is seen as growing sector of business.
• Economic – realization of a global common market, based on the freedom of exchange of goods. The co-operation among countries has definitely increased due to globalization. The Euro as a single currency to represent the whole of European Union is a testimony to this. The affiliations among different nations for economic growth is becoming common. Countries like Sudan (where one of the worst ever humanitarian crisis took place), Angola, Egypt, Morocco and several other African, American countries are showing an average of 12% economic growth every year, thanks to the flattening process. The middle classes across the globe are growing rapidly. So,there’s more demand of goods in the market, and space for more industries to come. If human desires are infinite, sure the scope for trade and business is infinite.
• Political – Politically, the US has enjoyed a position of power among the world powers; in part because of its strong and wealthy economy. With the influence of globalisation and with the help of The United States’ own economy, China has experienced some tremendous growth within the past decade (since 2001) to be precise. 2001 was a very important year for globe,not because of a 9/11, but because China joined the world market. If China continues to grow at the rate projected by the trends, then it is very likely that in the next twenty years, there will be a major reallocation of power among the world leaders. China will have enough wealth, industry, and technology to rival the United States for the position of leading world power. The European Union, Russia and India are among the other already – established world powers which may have the ability to influence future world politics. Hegemony of any one country will go down. Particularly, the US.
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