The earliest written theoretical
concepts of globalization were
penned by an American
Charles Taze Russell who coined
the term 'corporate giants' in
Globalization was achieved by the
British Empire due to its sheer
size and power. British ideals and
culture were imposed on other
nations during this period.
The 19th century is sometimes
called "The First Era of
Globalization." It was a period
characterized by rapid growth in
international trade and investment
between the European imperial
powers, their colonies, and the
The "First Era of Globalization"
later collapsed during the gold
standard crisis and Great
Depression in the late 1920s and
What is Globalization?
Globalization describes a
process by which regional
economies, societies, and
cultures have become
integrated through a global
network of communication,
transportation, and trade.
The term is sometimes used
to refer specifically to
The term can also refer to the
transnational circulation of
ideas, languages, or popular
culture through acculturation.
According to small business,
globalization is the process by
which the economies of
countries around the world
integrated over time.
Post world war II
Globalization, since World War II,
is largely the result of planning by
politicians to break down borders
hampering trade to increase
prosperity and interdependence
thereby decreasing the chance of
Their work led to the Bretton
Woods conference, an agreement
by the world's leading politicians
to lay down the framework for
international commerce and
finance, and the founding of
several international institutions
intended to oversee the processes
These institutions include the
World Bank, IBRD, and the IMF.
Globalization has been facilitated
by advances in technology which
have reduced the costs of trade,
and trade negotiation rounds,
originally under the auspices of
the General Agreement on Tariffs
and Trade (GATT), which led to a
series of agreements to remove
restrictions on free trade.
Effects of Globalization
• Industrial - emergence of worldwide production markets and broader
access to a range of foreign products for consumers and companies.
• Financial - emergence of worldwide financial markets and better access
to external financing for borrowers.
• Economic - realization of a global common market, based on the freedom
of exchange of goods and capital. The interconnectedness of these
markets, however meant that an economic collapse in any one given
country could not be contained.
• Political - some use "globalization" to mean the creation of a world
government which regulates the relationships among governments and
guarantees the rights arising from social and economic globalization.
• Ecological - the advent of global environmental challenges that might be
solved with international cooperation. Since many factories are built in
developing countries with less environmental regulation, globalism and
free trade may increase pollution.
• Cultural - growth of cross-cultural contacts; advent of new categories of
consciousness and identities which embodies cultural diffusion, the desire
to increase one's standard of living and enjoy foreign products and ideas,
adopt new technology and practices, and participate in a "world culture".
Looking specifically at economic
globalization demonstrates that it
can be measured in different ways.
These center around the four main
economic flows that characterize
o Goods and services,
As globalization is not only an
economic phenomenon, a
multivariate approach to
measuring globalization is the
recent indexcalculated by the
Swiss think tank KOF.
According to the 2006 index,
Singapore, Ireland, Switzerland,
the Netherlands, Canada and
Denmark are the most globalize,
while Indonesia, India and Iran are
the least globalize among
Supporters of free trade claim
that globalization increases
economic prosperity as well as
This leads to lower prices,
more employment, higher
output and a higher standard
of living for those in
Supporters of democratic
globalization are sometimes
They believe that the first
phase of globalization, which
was market-oriented, should
be followed by a phase of
building global political
institutions representing the
will of world citizens.
Advantages And Disadvantages
Increased free trade between Increased flow of skilled and
nations non-skilled jobs from
developed to developing
Increased liquidity of capital nations as corporations seek
allowing investors in out the cheapest labor
developed nations to invest in
developing nations Threat that control of world
media by a handful of
Corporations have greater corporations will limit cultural
flexibility to operate across expression
Greater chance of reactions
Global mass media ties the for globalization being violent
world together in an attempt to preserve
Greater ease and speed of cultural heritage
transportation for goods and International bodies like the
people WTO infringe on national and
Greater interdependence of individual sovereignty
nation-states Increase in the chances of
Reduction of likelihood of war civil war within developing
between developed nations countries and open war
between developing countries.
Made by- Sonali Chawla