Essay 1: The nature of globalization
Globalization entails the process of integration that come as a result of interchange of products, views, ideas and cultural aspects. The economy all over the world has become global in recent times. For instance, international trade has been an important aspect in the economies of various countries all over the world. A good example here is Microsoft Company that relies heavily on international trade in order for them to reap huge benefits.
The fact that their products are conveyed all over the world leads to huge sales for the company’s products. Another example is oil exports in Saudi Arabia (Lecher & Boli, 2011). These exports have been largely boosted by the existence of international trade that is a globalization aspect. This therefore boosts the economy of Saudi Arabia by a large magnitude. Besides, large companies like HSBC have established offices in many different countries all over the world. For instance, HSBC currently operates in about 90 different countries worldwide.
It is true that many countries of the world have copied some activities from the western countries. For instance, most of the restaurants have now provided meals that are available in the western countries. Ideally, this is because they want all people within the region to enjoy whatever they want. Besides, many world countries have also integrated dressing styles from the western countries. The dressing styles used by the westerners have now become the order of the day in parts of the world.
In addition, reduction of barriers of trade has played a great role in the integration of international trade. Investors have engaged themselves in foreign investment since deregulation has enhanced exchange of products and services anywhere in the world. Finally, advancement in technology has seen the developing countries adopt the social media for communication with people from all parts of the world. For instance, the use of Facebook and Twitter is which is applicable everywhere in the world has integrated the exchange of information among the people from developing countries to other countries of the world.
Many countries in different parts of the world tend to copy the economies of western countries.
Example 1: For example, fast food restaurants have had a big effect on the eating habits in several Asian countries. The food consumed in these restaurants is different from their staple food that is rice. Many different varieties of foodstuffs including exotic ones are being offered in these restaurants. This completely changes the eating habits in these countries (Rowntree & Price, 2013).
Example 2: Foreign Direct Investment has also affected the economies of many countries especially the developing ones. This foreign ownership of productive means may directly influence production as well as, livelihoods. The existence of international trade practices like reduction of trade barriers has facilitated the emergence of foreign investors especially in developing countries. This may boost the economy of these countries but it also gives control to foreign firms (Lecher & Boli, 2011).
Example 3: Many countries also copy the consumption patterns of western countries. For instance, the changing dress codes in the west have also been absorbed in many developing countries. These new clothes are being exported to developing countries and they become associated with change in fashion (Chirico, 2013).
Example 4: People in developing countries have adopted modern communication technologies. For instance, most people in these countries have been using mobile phones. In the 21st century, there has been emergence of new technologies in the mobile phone industry (Rowntree & Price, 2013). For example, with the emergence of smart phones in the West, these phones have become the latest fashion in the developing countries recently (Chirico, 2013). Apart from mobile phones, the internet is also largely used in many countries of the world. Applications like Facebook, Twitter, WhatsApp among others have come up and are being used by many people in the developing countries.
Essay 2: Factors driving Globalization
Globalization has been on the rise due to various factors that have made the world become very connected. Most notably, communication has been one of the main factors that have led to globalization. Especially the internet has played a major role in the spread of news and ideas to different parts of the world. People become aware of issues existing in foreign countries as well as, get to know about their own countries. Through the internet, information spreads very fast and people become enlightened on various issues. International travel has been on the rise and this enhances spread of news and information as well.
Using the advanced technology, countries of the world are able to share information and transact business. For instance, using internet an investor in Europe is able to order goods from United States of America and pay them via the internet. In so doing, the investor can arrange for transportation of goods from the U.S. to Europe via the internet without the need of moving all the way from Europe to United States. As a result, technology helps in integrating business transactions thus enhancing economy of time and money.
Western services are available in various countries in order to serve those who travel to these countries from the west. International trade is also a major driver of globalization . Elimination or reduction of trade barriers like tariffs and quotas has opened up the doors for globalization. This has led to the movement of goods as well as, human capital to different countries in the world. In addition, the existence of multinational companies has also boosted globalization. This is because multinational companies operate in various countries all over the world. They employ human capital from different countries of the world. Furthermore, many countries of the West have been able to set up offices in developing countries where they employ many citizens of such countries (Rowntree & Price, 2013). The fact that there have been many investments in many companies all over the world has led to economic downturns replicated in many different countries.
Furthermore, deregulation is another important factor that has played a great role in enhancing globalization. Many countries have reduced barriers to trade thus helping to enhance international trade. Deregulation widens market for goods in various parts of the world. As a result, many countries are able to import what they do produce in plenty and export what they produce in plenty. In so doing, these countries are able to enhance their balance of payments thus experiencing increased economic growth and development. The main idea in this point is that, world countries are able to exchange goods thus enhancing globalization (Chirico, 2013).
As a result, it is true that development of international trade is a major source of globalization. Countries from different parts of the world are able to exchange business ideas and views since international trade has brought them together. Day to day exchange of business ideas is has integrated people from different parts of the world. Nevertheless, it has also integrated products since people are able to source more products that they do not produce. In so doing, this international trade is a major source of globalization.
Finally, the need to be cost effective is also another major driver of globalization in the world. Many firms have seen it better to focus on international trade rather than domestic trade since international trade enhances cost reduction. For instance, through the international trade, an investor is able to reduce taxation costs.
These are some of the examples on factors that drive globalization.
Example 1: On the emergence and growth of multinational companies, companies like the McDonalds have established businesses in many countries of the world. This has contributed to the rise in exchange of foodstuffs across the world. For instance, the McDonald’s has established restaurants in approximately 120 countries all over the world. Fast food restaurants are available in many countries such that many people have found themselves consuming a lot of meat and sugary foods. Menu items for the McDonald’s have been the same in different places of the world.
Example 2: Globalization has also been enhanced by the development in information communication technology (ICT), communications, as well as transport. The internet has also been a key player in this regard since it has enhanced communication across the globe. Global news networks like the BBC and CNN have also led to globalization because they convey news all over the world (Rowntree & Price, 2013).
Example 3: International trade has also led to an increase in the pace of globalization. This is because it has led to an increase in trade activities all over the world. The removal of taxes and tariffs on imports has facilitated the rise in trade all over the world. Trade agreements have been signed among various countries allowing the free flow of goods and services across the countries involved (Lechner & Boli, 2011).
References
Chirico, J. (2013). Globalization: Prospects and Problems. New York: SAGE Publications.
Lechner, F., & Boli, J. (2011). The Globalization Reader. London: Wiley-Blackwell; 4 edition.
Rowntree, L., Lewis, M., & Price, M. (2013). Globalization and Diversit: Geography of a changing world. New York: Prentice Hall ; 4 edition.
