Globalization is a buzzword and became popular in the late 20th century. Globalization can be defined broadly as the integration of local economies into global economy. It is form of free economy and markets. In globalization in addition to internationalization of trade, finance and investment we have internationalization of production. Multinational corporations collect resources in several countries, process them in other several countries and finally export the finished products to the rest of the world. For example, a compaq computer is no longer entirely American or a Toyota car fully Japanese. The final product of both these items have components made in several countries.
Globalization can also be defined as the growth of political, economic and cultural relations across the borders. Globalization is also universalization, the examples of which are the television, mobile and phones, internet/Computer network, trade and tourism.
Globalization is also modernization or some say the Americanization of the world. American fast food restaurants like Mcdonalds, Kfc are spreading fast in America as well as the rest of the world. American Political theorist Banjamin Berber warns the readers against the cultural imperialism of what he calls 'Mcworld'--- a souless consumer capitalism that is rapidly transforming the diverse population into a uniform market. Music, video, theatre, books and theme parks are all created as an American image.
Many markets have been globalizing fast e.g, some tastes and fashion clothing have become universal to young people. American soft drink brands, Jeans and Hollywood thriller movies television programs have been universalized and have affected local cultures and norms. Consumerism and consumer society has developed while fellow feeling and community sentiments have declined.
However, the supporters of globalization say that it has the following advantages.
(1) Globalization leads to increased foreign trade, travel, tourism and breaking down of artifical barriers to the flow of goods, services, capital and knowledge.
(2) Over the past quarter century, the global economy has doubled every 10 years from $31 trillion in 1999 to $62 trillion in 2008.
(3) Globalization through Multi-national corporations not only sends capital and goods across the border but also technology.
(4) Through Globalization U.N, ILO and WHO are doing a wonderful job. No one wants to see his child die when knowledge and medicine are available somewhere else in the world.
(5) Information and communication have made the world a global village and physical distance has almost become irrelevant.
(6) IMF and World Bank etc despite their faults have brought benefits to millions.
The critics have the following arguments against Globalization.
(1) U.S and its European and Japanese allies through globalization are imposing on the third world a new political and economic order. The new order consists of lower trade and tariff barriers, eliminating state subsidies, degregulating economies, establishing a free market system and dismantling public ownership of means of production and distribution.
(2) With globalization , the nation states are being undermined and challenged enormously.
(3) Institutions such as world bank, IMF, WTO, etc promote new liberalism without regard to ethical standards.
(4) Champions of globalization do not allow labour to move freely among countries.
(5) Labour unions and environmental groups claim that due to globalization, indebtedness of south to the north has increased and there has been unemployment and ecological degradation.
The activists against globalization ask for the reform of the world Bank, IMF, WTO. The protest slogan of anti-globalization activists are , "People and Planet before profits, "The earth is not for sale" etc.
According to Joesph E. Stiglitz ( a nobel laureate) globalization can be re-shaped and a new global economy can be equitably shared.
But despite globalization, the poverty for most of the people in Asia, Africa and Latin America has not decreased. The world Bank estimates that 1.1 billion people live in the world in extreme poverty
So according to the exponents of globalization, over the past three decades market based growth and globalization have brought prosperity and lifted hundreds and millions of people out of poverty. Howver, recession in 2009 came from the heart of capitalism i.e Wall street.
