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It is defined as a process of rapid economic integration among countries driven by the liberalization of trade, investment and capital flows, as well as technological change or it is a shift toward a more integrated and interdependent world economy.

The term "globalization" has been used by economists since the 1980s although it was used in social sciences in the 1960s; however, its concepts did not become popular until the latter half of the 1980s and 1990s. The earliest written theoretical concepts of globalization were penned by an American entrepreneur-turned-minister Charles Taze Russell who coined the term 'corporate giants' in 1897. Formal process of liberalization led toward Globalization After world war more liberalization of trade

Component of globalization
Globalization of market Globalization of production

Globalization of Market
It refers to the emerging of historically distinct and separate national market into one huge global market. Falling barriers made it easier. Tastes and preferences of help to create global market. Not only giant company go for globalization Global market competition

Globalization of Production
It refers to the sourcing of goods and services from location around the globe to take advantage of national differences of cost and quality of factors of production. In order to take advantage of Low costs structure Improve quality Compete more effectively


Consequences of production and market

Trade grow FDI increase Import penetrate world industrial nation Competition increase

Forces of Globalization
Political Technology Market Cost Competition

Benefits and Opportunities

Eliminate poverty Faster Diffusion productive ideas Create Employment Opportunities Rapid Communication

In the past century, globalization was triggered by advancement in industrialization, transportation network and telecommunication technologies. The globalization trend escalated in the 1990s with introduction of cable television. Television has been major factor in influencing cultures. For example, fashion trend in Nepal, especially in cities like Kathmandu and Pokhara were mostly influenced by characters in soap operas telecasted in the televisions, and lately, it was influenced by fashion trend of Korean actors. Recently, the Korean song Gangnam Style has become a world phenomenon and has been copied by many people. It has even influenced by Parodies suiting peoples taste and requirements. Even more, there is a Newer version of Gangnam style. Such is the influence of globalization. Along with cultural influence, globalization transfers knowledge and capital from one place to another. The introduction of mobile phones, the Internet etc. is some examples of technology transfer. People migrating from countries like Nepal to countries like Japan, USA, and Australia for further education, employment opportunities are also some examples of globalization. With such migrations, people transfer their knowledge and culture. For example, it is not surprising that more than 50% percent of the employees of the NASA are of non-US origin. We shouldnt be surprised to see restaurants serving momos and typical Nepali food in countries like Japan, USA or the UK. Globalization can provide access to investment capital to countries or localities that


they could not have achieved on their own. This can induce development activities in such countries or localities. For example, Gujarat implemented laws that enabled easy entrance for foreign industries which helped foreign companies like BMW, Toyota, and Coca-Cola etc. to set up factories there. This gave Gujarat access to vast foreign direct investment which it could use for the developing the state and hence has achieved tremendous economic growth because of this reason in the last decade. Today, Gujarat is taken as a model state for development activities. Not just introduction of new technologies and knowledge, countries like Nepal have benefitted from globalization with the employment opportunities that it brings. Hundreds of Nepalese youths migrate to countries like Malaysia, the Middle East, Europe and the Americas for employment opportunities. This brings huge amount of foreign currency in the country. Remittance from people employed abroad is 40% of the GDP of Nepal. Remittance has established as a reliable source of income for people especially in rural areas of Nepal and they have immensely benefitted from it. Therefore, there is no denying that globalization creates different kinds of opportunities for people, be it for education or employment or settlement.

Disadvantages of Globalization
Create inequalities Environmental deregulation Dominance of rich Dependence increase If mismatch country will with draw from globalization regime Environmental impacts like climate change Cultural trespassing Change in society structure Negative impact on domestic industry among others

In todays world, we no longer are isolated; our every action affects the lives of others no matter how far apart we are. For example, global warming, climate change have become major issues and subject of concern for everybody. Since the last century, the consumption of fossil fuels have dramatically increased thereby resulting in higher percentage of carbon dioxide gas in the atmosphere, which is the major cause for the effect called global warming. Another negative impact of globalization is cultural trespassing. In countries like Nepal, where most of the population is young, there is high probability that the people will learn and adapt to culture of other countries to which they are exposed to. For example, in context of Nepal, cultures like St. Valentines Day, Christmas do not exist at all, but more and more youths are


celebrating these festivals every year simply because they are bombarded with information about these from different channels like the Internet, FM or the television. This has induced people not celebrating their own festivals, but enjoying in the festivals of cultures totally unknown to them. Another threat induced by globalization is change in society structure. With globalization, people have become more aware and have become more independent. This gives them economic freedom and hence people are opting to live alone. As people get economic freedom, they do not have to rely on their family for their expenses and hence opt for living alone. This has affected the architecture of society in culture like ours. Another threat that we get from globalization is suffering of the domestic industries. The primary interest of any consumer is to pay less and get the best quality product. With globalization, it is very likely that someone can produce better goods at even cheaper prices. Consumers will eventually opt for such goods as they are cheaper and hence, domestic industries producing the same good at higher cost will definitely suffer.

Managing in the global market place

Managing is different from home country by following four reasons 1. 2. 3. 4. Courtiers differences Problem are complex and their rang is wider Differences in legal system Currencies conversion

In a whole, globalization is a movement that no country can be apart from. It brings opportunities to prosper and grow, but in the meantime, can bring threats. In case of Nepal as above taken as an example, though it provides us access to funds for development, technologies made by others, globalization still threatens our society and domestic industry. Therefore, it is necessary that the concerned department (the government) have strict policies on regulating and controlling the globalization process so that the country benefits from it and yet the society fabric stays intact.