Globalization

Globalization

Definition: It is the absence of borders and barriers to trade between nations. It also is a business strategy that means doing everything the same everywhere. Others believe globalization is interconnections between overlapping interests of business and society.

Generally, globalization is a process whereby international interconnections in practically every sphere of activity are growing. A number of of these interconnections bring about integration, unity worldwide, others do not. Jointly, global interconnections and the relationship they create symbolize a historically unprecedented process that is quickly remodelling the context for many activities. There are six main spheres of activities where global interconnection can be observed: global business and industry activities; the natural environment; global culture; global politics; global economics and global technologies.

Main characteristic of globalization:

The first characteristic is growing worldwide interconnections. Indeed, technologies like satellite television or internet prove us how global interconnections are involved in people’s life nowadays. However, the path for these interconnections is not constantly clear or steady. Some countries like Sao Tome and Principe or Chad are not well integrated in the global economy due to the “poor geography” or “poor infrastructure”. There are many other different reasons such as natural disasters, political corruption, educational constraints, opportunity and limited resources.

Secondly, globalization has occurred rapidly but has discontinuous changes in growing interconnections. Industries, business, individuals and nations can be affected by interconnections and the consequences of the same global event can be different. For example, during the Asian crisis of 1997, the economy was hurt but the major effects most affected the economy of Thailand, Indonesia and South Korea. This shows that nations, business, industries and individual can experiment these international connections in different ways. That is why globalization can be seen as disorganized and illogical.

Thirdly, another characteristic is that globalization is increased in number and diversity of participants. Indeed, participants in international business activities include now small, medium and large enterprises that are owned privately or publicly. Also, there is an increase in diversity among participants as global markets are characterized by multiple competitors that vary in shape, size, motive and behaviours. For example, spices were imported from Egyptian as early as 2600 BC. Nowadays, spices trade is controlled by small and large companies all around the world mainly in Brazil, India, China, Indonesia and the Seychelles.

Finally, the last characteristic is the growing complexity. The word “globalization” exposes most of us to many more people which have different perspectives on globalization. People are increasingly interconnected but they have different perspectives on global interconnections. In other words, the experience, strength and evaluation of globalisation differ around the world. Indeed, the effects of globalization in Belgium and in a third world country e.g. Cabo Verde, are completely different. The same global event may be perceived to create opportunities for some and create threats for others. Also, some people think globalization benefits the world and some people think it degrades it.