What is Globalization?

 Globalization is the approach to the defninte of prices, products, wages, and free trade that goes between countries. The term “Globalization” was first used by Theodore Levitt, but it’s views can be traced back to the 19 th Century, which at the time was also known as “The First Era of Globalization”. It was disturbingly breaking to a halt when World War I had begun. The term has acquired considerable emotive force. Globalization broadly refers to the expansion of global linkages, the organization of social life on a global scale, and the growth of a global consciousness, hence to the consolidation of world society. (Lechner) Economic “globalization” is a historical process, the result of human innovation and technological progress . Globalization is historically complex; definitions vary in the particular driving force they identify. Today commerce and financial services are far more developed and deeply integrated than they were few decades ago . Globalization started when different countries needed a way to import their goods, rather than throwing them away. (IMF) Due to the scale of change, it intensifies long-standing problems, such as the deterioration of the environment. (Lechner)

Frank Lechner. “The Globalization Website.” Issues. 2000-2001.
http://www.sociology.emory.edu/globalization/issues.html

IMF Staff. “ Globalization: Threat or Opportunity?” What is Globalization? April 12, 2000. http://www.imf.org/external/np/exr/ib/2000/041200.htm#II

The World Trade Organization (WTO) is the organization that at present handles Globalization. It was first stated on January 1, 1995. With the WTO, too many governments do not have to get invovled with in trading goods with others. WTO has helped increase connectivity and trade in the past decade. Other than the World Trade Organization, there are many other organizations. One of them is International Monetary Fund (IMF), which handles the funds for Globalization. Globalization is, therefore, an international industrial and financial business structure.

Globalization has been deeply debated though. Globalization allows poor countries and their citizens to develop economically and raise their standards of living, while opponents of globalization claim that the creation of an international free market has benefited many corporations in the Western world at a great expense. One of the few defects is that when an undeveloped (or developing) country, starts a trade, they will be humbled by a greater country in trade. Globalization offers extensive opportunities for truly worldwide development but it is not progressing evenly. It is due to these small problems that some countries are against Globalization.

Economies are continually evolving and globalization is one among several other continuing trends. One such trend is that as industrial economies mature, they are becoming more service-oriented to meet the changing demands of their population . Economic growth, employment and living standards are all higher than they would be in a closed economy . As globalization has progressed, living conditions (particularly when measured by broader indicators of well being) have improved significantly in virtually all countries . (Lechner)

Frank Lechner. “The Globalization Website.” Issues. 2000-2001. http://www.sociology.emory.edu/globalization/issues.html

National and international institutions, inevitably influenced by differences in culture, play an important role in the process of globalization .   “One possibility in accounting (for this surprise) is the stabilizing role of the institutions built in the interim. At the national level this means social and financial safety nets. At the international level it means the WTO, the IMF, the Basle Committee of Banking Supervisors. These institutions may be far from perfect, but they are better than nothing, judging from the historical correlation between the level of integration on one hand and the level of trade conflict and financial instability on the other .” (IMF)

IMF Staff. ” Globalization: Threat or Opportunity? “ What is Globalization? April 12, 2000. http://www.imf.org/external/np/exr/ib/2000/041200.htm#II

Globalization has given countries many opportunities to increase their standard of living, economy and industry. In the future, its spread will continue going on and affecting each of the person in the world so what we should do is finding the key to increase its advantages and decline its harms. Globalization is a subject that may become the rise of a whole new empire, but at the same time a fall to that same empire. Trade “will” be the key to business and market in the future.