Worldwide reduction of barriers to trade and investment Globalization has been driven by the lifting of barriers to trade and investment. Nations all over the world have been reducing trade restrictions in the recent past. This has not only entailed international trade but also foreign direct investment (FDI). For instance, China and India have just recently emerged as world leading economic powers largely because they have opened up their borders to foreign direct investments and drastically eased the trading restrictions that were initially in place (Held 2002).
Currently, it is possible to invest in China without fear of restrictions. Today, China is home to internationally acclaimed investment companies because most organizations view the world as their market and can plan production, assembly, and other processes to be carried out in different countries where the relative costs of production are favorable. BP, for instance, now has global operations because of the reduced barriers to trade and investment in most countries of the world. Market liberalization and adoption of free markets The liberalization and adoption of free markets has enabled globalization to advance very fast (Held 2002).
In the past, government regulations and restrictions have tended to hinder the process of globalization. However, as governments become less restrictive and allow for the use and application of free market policies, more markets are becoming available even in very sensitive areas like security and energy. As the government becomes less active in the business arena, it is becoming easier for businesses to expand without limits (Held 2002). The energy sector is this country, for instance, has rapidly advanced since the government liberalized it.
As a result, it has grown almost exponentially and is has become more competitive. The same applies to electricity where there has been a rapid growth since the government decided to privatize it (Held 2002). Industrialization, economic development, and modernization The growth of industry, the associated economic development, and modernization have also enhanced the process of globalization (Held 2002). As more industries come up, it is becoming necessary for new markets to be sought for the final products just like there is a need for the sources of raw materials to be expanded and made more reliable.
That aside, as the economy of the world continues to grow, the demand for goods and services is growing as well. This has been accompanied by an increase in global consumption (Held 2002). In China, for instance, the huge population has forced the country to seek for additional, alternative markets for its industrial products even as the country itself has become a critical market for overseas firms dealing in sectors like technology and automobiles. Modernization has called for development of newer technology to meet the growing demand for new products that best serves the interests of mankind.
The advent of web 2. 0, for instance, has revolutionized business advertising (Held 2002). Integration of world financial markets The financial markets of the world play a critical role in the determination of the state of the world economy. As these markets have been integrating, the need to work together collaboratively in order to minimize adverse global economic effects has been prioritized by firms and nations (Held 2002). This working together has in turn speeded up globalization.
From the stock market to the money market, it is becoming imperative for businesses to be listed among key global markets to enhance their performance globally. Advances in technology Technological advancement has changed the way things are done, particularly how businesses conduct their affairs (Held 2002). With the availability of the internet, it is now possible to do business from the comfort of one’s house or office because internet brings together the market players in one place to do business.
Media companies like the BBC have managed to operate with ease globally because of advanced technology that has allowed for rapid and easier transmission of information. Finally, technical specialists have been moving to new areas of the world, enhancing free movement of labor (Held 2002). Question two Globalization’s effect on culture. Discuss with case. Cons Americanized homogenous culture Globalization has tended to create cultures that are uniform and/or homogeneous.
It has failed to preserve the unique cultural traits of different people (Wall 2005). This has happened as people have tended to move freely and settle in countries or regions where there are greater opportunities for their personal development (Kennedy 2001). In the US, though comprising people from different cultures and ethnic backgrounds, there has tended to be a trend of imposing one standard where all people are expected to behave in a certain manner irrespective of their cultural background.
Issues of faith and religion have caused tensions there just as race has (Wall 2005). All this has been largely because different people are being homogenized and treated as though they are one cultural grouping. Undermining the ideological conformity of nationalism Globalization has contributed to the decline in the natural tendencies of people to be conformed to their nationalism (Kennedy 2001). Nationalism and patriotism go hand-in-hand and both are usually practiced from a person’s individual sense of pride in one’s own country (Ijioui 2009).
However, as globalization has taken effect globally, countries are getting filled up with people who come there just to seek their own benefits as opposed to the country’s good; and who have no such sense of pride in the country because it s not their mother country after all (Wall 2005). Some region’s anti-globalization demonstrations are partly reflection of antihomogeneous cultural movement Protests in opposition to globalization are indicators that people are not comfortable with the merging of different people and cultures into one without paying attention to its effects.
Such demonstrations are not good for countries where they are held, especially where such countries have a large mix of people who are likely to have conflicting opinions (Kennedy 2001). It would, therefore, be safer and more beneficial for such countries to find alternatives to globalization. For instance, the Grassroots Local Justice group found in the USA is an anti-globalization movement that is oppose to the continued existence of multinational corporations in the country that bring in foreigners to take over local jobs (Wall 2005). Pros Unified consuming behavior
Globalization is critical to development because it brings about unified consumer behavior which in turn enables governments to easily plan expenditure ad that enables provision of essential services rather easy. Globalization has made it possible for nations like the US to have an understanding of what its people are and the commodities they like consuming (Kennedy 2001). Increased global communication Globalization has enhanced communication on a global scale. It is now rather easy for people in totally different and remote parts of the world to communicate without any undue barriers.
Information exchange is faster, and movement of people from one place to another is equally fast. In addition, communication has become cheaper and more reliable. It is possible for goods to be moved globally without any loss or damage. Even perishable goods now have a chance of making it to markets located thousands of miles away without getting spoiled owing to the speed with which communication and transportation can now take place. For instance, satellite communication has greatly improved information exchange.
The international space station is the result of the joint efforts by nations to enhance communication. Its benefits have been many. Common commercialization Doing business together as opposed to working independently has proven to be more beneficial to countries throughout the world. For instance, when China remained opposed to globalization and limited its commercial activities to within its national borders, it never managed to rise to the position it now holds after embracing globalization (Kennedy 2001).
The country has emerged as a developing nation into the second largest economy in the world just in a short time largely because it has embraced globalization. Word count: 1,296 References Held, D 2002. Globalization/anti-globalization. Wiley-Blackwell Ijioui, E 2009. Globalization 2. 0: A Roadmap to the Future from Leading Minds. Springer Kennedy, P 2001. Globalization and national identities: crisis or opportunity? Palgrave Macmillan Wall, D 2005. Babylon and Beyond: The Economics of Anti-capitalist, Anti-globalist and Radical Green Movements. London: Pluto.