Globalization is the progression of international incorporation arising from the exchange of world views, merchandise, ideas as well as other characteristics of culture. Advances in transport and communications infrastructure, as well as the rise of the telecommunication and its posterity; the Internet, are some significant issues in globalization (Hopkins, 2004). There are broad classifications of globalization. They include social globalization, which refers to the spread of ideas, connotations as well as values around the globe in a way as to expand and strengthen social relations. Social, cultural globalization has improved cross-cultural acquaintances, but might be accompanied by a reduction in the uniqueness of once-isolated societies (Hopkins, 2004). The other category is economic globalization, which refers to the declining economic incorporation and interdependence of nationalized, regional along with local economies across the world in the course of an intensification of cross-border movement of commodities, services, technologies as well as capital (Berch, 2002).
Capitalistic market is a category of the market in which trade, industry, in addition to the means of production is mainly or entirely surreptitiously owned and operated for profit. Some fundamental characteristics of capitalism include capital amassing, competitive markets as well as wage labor. The parties to a deal typically agree on the prices at which possessions, goods, and services are exchanged. In the western countries, economic matters and the international economy have turned out to be more central to international fiscal and political relationships than at any instant since the late nineteenth century. The other nations have diversified in the industries (Hopkins, 2004). This means that the economy is more industrially efficient rather than agricultural based. China is an excellent example. It has diverted from over-reliance of the agriculture-based economy to an industrial based economy. In addition, trade balance which is a disparity between the fiscal value of exports and imports of output in a market over a certain period, calculated in the currency of that financial system, creeps into the general market. It is the connection between a nation's imports plus exports. An optimistic balance is known as a trade surplus if it consists of exporting more than is imported; a negative balance is referred to as a trade deficit or, informally, a trade gap. The stability of trade is sometimes separated into goods and services balance (Hopkins, 2004).
Capitalist market influences money creation and supply. This has led to globalization. The Commercial bank is immensely attributed to the aspect of money supply. The bank lends and creates cash in the form of demand deposits. The banks are doing the lending, when banks have substantial reserve requirements. The Central bank checks the quantity of money in the circulation by evaluating the monetary aggregates (Hopkins, 2004). The impact of fiscal policy supply of money is signalled by doing a comparison of these quantities on diverse dates. A classic example is in the US, measure of money supply increased from 6407. 3 l USD 2005, to 8318. 9USD billion 2009. The illustration above shows that the money supply has positively affected globalization.
Energy development is a field of endeavor focused on making available sufficient prime energy supply along with secondary energy forms to meet the requirements of society. These endeavors include those which make available the production of conservative, alternative plus renewable sources of energy, and for the recuperation and reuse of energy that would otherwise be shattered (Berch, 2002). Contemporary industrialized societies use primary in addition to secondary energy sources for transport and the making of many contrived goods. Thousands of people in the general public are employed in the energy business, of which subjectively manipulate and impact behaviors. In the western worlds, the energy sector has developed immensely. This has made the other countries follow suit (Berch, 2002). The development of renewable energy has been in the forefront of these countries’ energy development agenda. India, for example, has the second largest onshore wind farm. The wind farm produces 1064 megawatts. This wind farm is second to Alta (Oak Creek-Mojave) in the United States, which produces 1320 megawatts (Ren, 2011).
Production is the work of making goods as well as services. Economic well-being is shaped in a production procedure, meaning all monetary activities that aspire directly or indirectly to gratify human needs (Ren, 2011). For decades, study shows that the vast preponderance of economic escalation in the US since 1947 involves the duplication of existing technologies through investment in paraphernalia, structures, as well as software and development of the work force. Innovation also accounts for about twenty percent of US economic growth. Countries in the east have followed the same trend of production. There has been a lot of innovation in addition to also improve the already existing ones. This has significantly contributed to the globalization of products (Berch, 2002). In addition, the economic status can be affected by the International flow of financial capital. This forms a potential factor that drives globalization.
On a similar note, third world debts. In 1970’s the economic debts of the developing nations were repaid up to the last coin, due to the fact that, the people in these nations developing world could not afford to refund them. The impervious reality of shortage in poorer nations was a preliminary spur for the loans (Ren, 2011). Monetary terms recommended that borrowing money was a serviceable course of action in the 1970s, especially in poor nations, which professed few, if any, substitute ways to solve the financial quandary of their people.
For instance, If total exports were equal to total imports, these monetary transactions would balance at net zero. When a country’s import exceeds its exports, it has a current account deficit. This scenario used to happen back then, since the underdeveloped countries would import more than they could export. Its foreign trading partners who hold net monetary claims and would continue to hold their claims as monetary deposits or currency (REN, 2011). They could also use the money to buy other financial assets, real property, or equities in the trade-deficit countries. This led to underdevelopment of the countries involved. However, this trend has changed. There has been a change in borrowing of countries since their economies have diversified. Also, the country’s wealth has improved, thus it has reduced the amount borrowed
In conclusion, the socio-cultural globalization has improved cross-cultural acquaintances, but might be accompanied by a reduction in the uniqueness of once-isolated societies. Similarly,the economic globalization, has led to the declining economic incorporation and interdependence of nationalized, regional along with local economies across the world in the course of an intensification of cross-border movement of commodities, services, technologies as well as capital.
References
Berberoglu, Berch (2002). Labor and Capital in the Age of Globalization: The Labor Process and the Changing Nature of Work in the Global Economy. Lanham, MD: Rowman& Littlefield
Hopkins, A.G. (24). Globalization in World History. London: Norton, pp. 4–8
REN1 (2011). "Renewables 2011: Global Status Report"
