Globalization

Globalization is more often referred to specifically to economic globalization.  The integration of national economics into international economics through trade, foreign direct investment (FDI) capital flows, migration and spread of technology lead to globalization.

Globalization is the process by which regional economics, socities and cultures become integrated through a global network of communication, transportation and trade.  Generally, it is understood that globalization is driven by economic, technological, socio-cultural, political and  biological factors.  Globalization  occurs when trans national circulation of ideas, languages or popular cultures unite.

The impact of globalization and how it affects the world in several ways can be seen as described below:-

Industrial:  World-wide productions and markets have grown and companies and consumers have easy access to products and services.  International trade in manufactured goods have multiplied manifold.

Financial: Borrowers are able to reach financiers and financial markets across the world.  Trading in international currencies has also gone up beyond one`s imagination keeping up with the increase in trade and investment.

Economic: There is a free flow of exchange of goods and capital globally.  It also means a crisis in one market or a nation could impact economically other world markets.  Globalization has resulted in production of goods and services more economically through lowest cost location; the result is jobs get moved to countries where the wages are cheap, least worker protection and poor health benefits.  Also industrial activity moves to countries where pollution regulations are not strict or workers` safety norms regulations can be flouted or avoided easily.

Health Policy:  Globally health needs have become a `commodity`.  There is an increase in privatization and fragmentation.  Health policy is influenced by technological advances and innovative medical trade practices.  National and global priorities are at odds in this.

 Political: Globalization sometimes means creation of world governments which regulate the relationship among governments and guarantees the rights arising from social and economic globalization.  Of late, China with its growth in wealth, industry and technology seem to rival the United States as a leading world power.

There are also negative effects or impacts due to globalization.  Some of these are:-

• Cultural degradation,
• Growth of sweat-shops in under-developed countries,
• Economic liberalization leading to global financial crisis and recession,
• Brain-drain: Talent from poorer countries move to richer postures in other countries,
• Environmental degradation,
• Food scarcity – population is growing and food production is falling down precariously.
• Disease: Globalization has resulted in spreading some deadly diseases across the world,
• Drug and illicit goods trade.  Global drug trade has grown by leaps and bounds.  There    is also international trade of endangered species. In addition, there is the black market of poachers.

Due to globalization the poorer countries suffer many disadvantages.

Questions:

• What do you understand by Globalization?
• What are the areas affected by globalization?