ESSAY: THE CAUSES AND EFFECTS OF GLOBALIZATION

Introduction: Globalization is the integration of world cultures and economies.

Whether aware of it or not people everywhere are witnessing and contributing to the
globalization process everywhere. It effects societies, politics and ways of life around the
world and is driven by human migration, international trade and integration of financial
markets.

Although recently on the rise due to tremendous technological advancements there is

nothing new about globalization. Even in the Middle Ages explorers such as Ibn-e-
batuta and marc-o-polo started it off with epic journeys and returning home with tales
of different cultures and places.

Trade drives globalization today, modern transportation and telecommunications have

made it easier to export and import from faraway places. "United in diversity" this is the
motto of the European Union which began as an agreement between six countries with
the goal of creating lasting regional piece.

The big "star" of globalization today is undoubtedly the internet enabling interpersonal
communication and business transactions in a matter of seconds; it has revolutionized
our world in only a few years.

Migration plays a major role in the world's economy, the World Bank estimates show
that migrants in developed countries sent home more than 223 billion dollars to their
families in developing countries in 2005.

Some traditional descriptions of globalization and economic globalization include:

Definitions

Globalization:
It is the process by which regional economies, societies, and cultures have become
integrated through a global network of political ideas through communication,
transportation, and trade. The term is most closely associated with the term economic
globalization: the integration of national economies into the international economy
through trade, foreign direct investment, capital flows, migration, the spread of
technology, and military presence. However, globalization is usually recognized as being
driven by a combination of economic, technological, socio cultural, political, and
biological factors. The term can also refer to the transnational circulation of ideas,
languages, or popular culture through acculturation. An aspect of the world which has
gone through the process can be said to be globalized.

Economic Globalization:
Economic globalization refers to increasing economic interdependence of national
economies across the world through a rapid increase in cross-border movement of
goods, service, technology and capital. It is the process of increasing economic
integration between countries, leading to the emergence of a global marketplace or a
single world market. Depending on the paradigm, globalization can be viewed as either
a positive or a negative phenomenon.

Economic globalization comprises the globalization of production, markets, competition,

technology, and corporations and industries. Whilst economic globalization has been
occurring for the last several hundred years, it has begun to occur at an increased rate
over the last 20-30 years. This recent boom has been largely accounted by developed
economies integrating with less developed economies, by means of foreign direct
investment, the reduction of trade barriers, and the modernization of these developing
cultures.

Effects of Globalization:
Globalization has various aspects which affect the world in several different ways

Industrial - emergence of worldwide production markets and broader access to a range

of foreign products for consumers and companies, particularly movement of material
and goods between and within national boundaries. International trade in manufactured
goods increased more than 100 times (from $95 billion to $12 trillion) in the 50 years
since 1955.

Financial - emergence of worldwide financial markets and better access to external

financing for borrowers. By the early part of the 21st century more than $1.5 trillion in
national currencies were traded daily to support the expanded levels of trade and
investment. As these worldwide structures grew more quickly than any transnational
regulatory regime the instability of the global financial infrastructure dramatically
increased as evidenced by the financial crisis of 2007-2010.

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 one area could impact other areas. With globalization, companies
can produce goods and services in the lowest cost location. This may cause jobs to be
moved to locations that have the lowest wages, least worker protection and lowest
health benefits. For Industrial activities this may cause production to move to areas with
the least pollution regulations or worker safety regulations.

Job Market- competition in a global job market. In the past, the economic fate of
workers was tied to the fate of national economies. With the advent of the information
age and improvements in communication, this is no longer the case. Because workers
compete in a global market, wages are less dependent on the success or failure of
individual economies. This has had a major effect on wages and income distribution.

Competition - Survival in the new global business market calls for improved productivity
and increased competition. Due to the market becoming worldwide, companies in
various industries have to upgrade their products and use technology skillfully in order
to face increased competition.

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".

Ethical
The creation of the international criminal court and international justice movements.

Crime importation and raising awareness of global crime-fighting efforts and

cooperation.

The emergence of Global administrative law.

Conclusion
Globalization has been happening for centuries and in spite of its dangers it is an
immense force for growth and prosperity.

We will conclude this discussion by presenting an interesting work by Benjamin R.

Barber "Jihad vs. McWorld - How Globalism and Tribalism Are Reshaping the World".

Jihad vs. McWorld is the title of a 1992 article that was later adapted into a book by
political scientist Benjamin R. Barber, in which he puts forth a theory that describes the
struggle between "McWorld" (globalization and the corporate control of the political
process) and "Jihad" (tradition and traditional values, in the form of extreme nationalism
or religious orthodoxy and theocracy).

As economic liberalism is the force behind globalization, this critique is relevant on a

much larger scale. Unregulated market forces encounter parochial (tribal) forces. These
tribal forces come in many varieties: religious, cultural, ethnic, regional, local, etc. As
globalization imposes a culture of its own on a population, the tribal forces feel
threatened and react. More than just economic, the crises that arise from these
confrontations often take on a sacred quality to the tribal elements; thus Barber's use of
the term "Jihad".

Barber's prognosis is generally negative - he concludes that neither global corporations

nor traditional cultures are supportive of democracy. He further posits that McWorld
could ultimately win the "struggle." He also proposes a model for small, local
democratic institutions and civic engagement as a hope for an alternative to these two
forces.