Globalization is the process of going to a more interconnected world. It means doing the things that the other person does but later on, we don’t have any idea about what we are doing. “Globalization is a process of interaction and integration among the people, companies, and governments of different nations.” (Global Workforce Projects, n.d.) It is also a process of increased integration and collaboration of different national economies. The states become interdependent on each other in all spheres of life, where countries go global by adapting universal distinctiveness involving the human race. It is therefore the process of uniting people of the world into one unit with worldwide characteristics. Globalization has effects on the environment, on culture, on political systems, on economic development and prosperity, and also on human physical well-being in societies around the world. Globalization is not new. For thousands of years, people and later, corporations have been buying from and selling to each other in lands at great distances. In today’s world, globalization has brought the entire world together with multinational corporations manufacturing, buying, selling goods across the world.
Globalization may occur on several levels. In a formal sense, “globalization can be talked as a world system.” (James Spradley & David W.McCurdy, 2012). The world system is a market term that links together the nations and the people economically. It is also known as trans-national which consists of companies and patterns of exchange that pass beyond national borders and may get away control by individual governments. The world system affects local people by introducing ideas, producing and providing goods. As a result, people can easily find themselves motivated by world markets. The international movement of people also illustrates globalization. They are Refugees (people who immigrate to other parts of the world because it is too dangerous for them to stay in their homeland and have moved to many countries). Second is Guest workers (people who are granted permission to work in a country other than their own).
The third is Legal immigrants which means illegal. And the fourth is tourism. Tourism is the world’s largest industry and regularly brings people with different backgrounds into contact. Such immigrants result in some societies becoming multicultural where people with different cultural backgrounds live side by side. People who are originated from the same cultural areas often communicate with one another, help each other in terms of sharing money and visiting one another.
Globalization is also marked by cultural diffusion. According to (James Spradley & David W.McCurdy, 2012), “Cultural diffusion is the movement of cultural ideas and tools from one society to another.” Some societies borrow cultural hybridization. For example, Ema that’s made in the restaurant will not taste exactly like the one cooked at the home. Theodore Bestor, explains globalization by showing the connection between American and European fishermen and the Japanese love of sushi (Japanese dish). And it’s popular around the world. Similarly, Dianna Shandy describes the problem faced by Nuer refugees as they attempt to gain rights and establish a life in the United States. Their house in southern Sudan was wracked due to running away from the civil war. Barbara Ehrenreich and Arlie Russell Hochschild discuss an important labor trend where there is the movement of women from poor societies and are working under rich people with low wage rates. Women of poor societies are expected to send money to home and leave their children in the hands of others.
Globalization has two sides: the good side and the bad side. Here, the good side of globalization is all about the efficiencies and the opportunities created in the market. For example, Businesses can communicate efficiently and effectively with their partners, suppliers, and customers and they manage better supplies, inventories, and distribution of the network. Local producers can sell their products in far-off markets like their own country without any difficulty. According to (Mourdoukoutas, 2011), stated that “Good side of globalization is about easy credit because money flows easily across local and national boundaries, and creditors fail to distinguish between good and bad borrowers.” Globalization helps in bringing the whole world into one village. Every consumer has free and frequent reach to the products of foreign countries. Optimum use of natural resources will be possible. It is helpful in cost reduction by eliminating cross-border duties and fees. It is helpful in employment generation and income generation.
The bad side of globalization is all about the new risks and uncertainties brought due to the high degree of integration of domestic and local markets, high competition, and many more. It is also about tight credit, deleverage, and declining money flows across local and national boundaries, as creditors tighten credit to both good and bad borrowers. Globalization is a direct attack on the local, tiny and small industries. Global companies with high infrastructure almost ruin the local traditional small and medium industries. Globalization increases monopoly by countries to prepare someone with knowledge, skill, and power. It increases the gap between the poor and rich people.
For further understanding, Theodore C. Beston explained how Sushi went global. He said that globalization is not new. (James Spradley & David W.McCurdy, 2012) “International trade, or at least intergroup trade, is nothing new.” Long ago, people living in the upper Paleolithic in Inland Europe use shells to make necklaces. And most countries depend on homebound manufacturing and commerce. After Second World War, world trade, global economic and cultural interdependence was destroyed. In today’s world, Theodore Beston explains globalization with an example about Sushi which means eating raw fish. It becomes popular in the rest of the world. Sushi is still a Japanese dish in the minds of its specialist. Next is Bluefin tuna which is another case study in globalization. Tuna trade is a prime example of globalization. It does not require much promotion among Japanese consumers. It is Japanese popular seafood and has a high demand. Outside Japan, Raw Tuna is not so good. Japan is the world’s primary market for fresh tuna for sushi.
Not only this, there is again a benefit of globalization. According to (Pettinger, 2012) Globalization involves greater free trade. Free trade is an exchange of goods and resources. Countries can specialize in producing goods at a lower cost. It also involves the free movement of labor. In this, the increased labor migration gives advantages to both workers and employers. However, this issue is also quite controversial. Some are concerned that free movement of labor can cause excess pressure on housing and social services in some countries. Globalization increases economies of scale where it mainly talks of Production being specialized. It enables goods to be produced in different parts of the world and enables lower average costs and lower prices for consumers.
Globalization is interconnecting with the worldwide. It is interaction and corporation among the people. The growth of developing countries is the main cause of globalization and it brings both opportunities and disadvantages. Globalization is a process and this process makes developments in these countries. The development in industry, economy, and culture gives solutions to social problems. The most problem of all of the governments in the world is unemployment, which leads to poverty, social crime, illiteracy, and many more. Globalization has all the good effects, bad effects and also a point where it benefits all the countries over the world.