Have you ever stopped to think about how we got to where we are, how we are interconnected with the rest of the world in real-time, or how we can, also in real-time, trade even on different continents? Well, that is the process of globalisation.
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Jetzt kostenlos anmeldenHave you ever stopped to think about how we got to where we are, how we are interconnected with the rest of the world in real-time, or how we can, also in real-time, trade even on different continents? Well, that is the process of globalisation.
Globalisation is a process in which we live. We can communicate so easily with people on different continents. This can happen socially, economically, culturally, technologically, and even politically.
The process of globalisation is the accelerating techniques, movements, and exchanges of goods, services, technologies, cultures, and human capital worldwide.
In other words, globalisation drives global interconnectedness through increased interaction of these processes and movements, leading to more significant progress in the regions.
Globalisation increases relationships between regions worldwide, connecting all societies so that events in different places are no longer isolated but are recognised and shaped by what happens miles away.
Globalisation is a process in which there is a worldwide expansion of ideas, knowledge, information, goods, and services. Globalisation is a broad term that can be applied in different areas, such as economics, technology, politics, geography, etc.
Globalisation promotes the convergence of the world's different cultural and economic systems. That results in significant interaction and integration of the countries—the greater the interconnection between countries, the greater the level of globalisation.
A great example to highlight the process of globalisation is the International Monetary Fund (IMF for short). In 20001, The International Monetary Fund identified four basic processes of globalisation:
You can learn more about types of globalisation by checking our entry about "Types of Globalisation".
Let's dive a little deeper into the features and consequences of globalisation, just mentioning the most common ones to understand the globalisation process much better.
The features of globalisation, include:
Free trade
Global products standardisation
Economic reforms
Sharing of culture and ideas
Increased collaborations between people, countries, and industries
Freer movement of labour
Global production networks
Spread of democracy
The following are some of the consequences of the globalisation process:
An increase in the global commodity market
Reduction of import regulations
Cultural homogenisation
The imposition of Western customs on the rest of the world
Its market determines economic and social needs
Entry and growth of the role of transnational corporations
Reduction of the decision-making power of governments
Global interconnectedness in communications and technology
Impact on the environment
Transnational corporations play a crucial role in globalisation because they have been the drivers of interaction between regions by relocating, trading, and manufacturing in different countries.
Transnational corporations (TNCs) are industries whose operations and business transactions operate in more than one country.
Transnational corporations also consider external factors that can influence business, such as national procedures, how the government has conducted its internal and external trade, etc. This is very important because a country's customs and procedures can influence international and national trade.
The current economic and trade interaction system results from the acceleration of globalisation—transnational corporations from the world economy through international business and trade.
Due to the influence these corporations have on the economy, corporations build new commercial interactions, integrating the world economy and expanding their power, from regional interconnection to import and export transactions of goods and services and unifying markets. When a transnational corporation enters a market, it creates new opportunities to attract resources and investment in international markets.
So, to simplify the role of transnationals in globalisation, we can conclude that transnational corporations affect our lives due to the globalisation process. They determine how to solve economic and social problems, and their influence represents a form of economic globalisation.
According to the conditions shaped by governments, transnational organisations will adapt to different laws, markets and knowledge to function optimally in a territory and thus shape the requirements of the functioning of world trade.
Corporations have a significant influence on the world economy, growing every day. Foreign investment is a tool to foster industrialisation and progress in developing countries, achieving savings, resources, and increased capital for those countries due to their entry into new markets.
As a result, foreign investment as a product of globalisation has reduced poverty levels and accelerated the development of countries, generating employment. Although not all countries have benefited proportionately from international trade and transnational corporations, it has been fundamental to global growth and economic stability.
Overall, as part of its process, globalisation has brought trade between industries in different regions, which has created opportunities and reduced the economic and accessibility gap to goods and services between other areas.
Some examples of globalisation with transnational companies are visibly known in all parts of the world. Perhaps most known is McDonalds.
McDonald's has 39,198 restaurants and has employed 2.2 million people worldwide.2
There are several consequences of political globalisation which show why it has such great importance. Firstly, political globalisation means that politics has begun to take a higher place than just “the Nation State”. They were no longer seen as an organised nation but as part of political integration schemes and international organisations.
There are lots of well-known international organisations which act as agents of political globalisation, such as the European Union, the World Bank, the International Monetary Fund, and the World Trade Organization.
Now, political activities and issues are concerned within and beyond national borders through global movements and non-governmental organisations.
International organisations are entities resulting from international treaties and political agreements between different actors and members. They are not "institutions," so they cannot make decisions about a country. They cannot legislate or create policies. However, international organisations can recommend or urge a particular plan of action to be taken at specific times.
Civil society has also organised itself into international movements with global alliances with different organisations, whereby activists have formed among citizens with particular purposes and an organised way to achieve goals.
They use an extensive global communication system and exert pressure on different political actors to achieve what they want and be heard by national governments and the integration of countries.
Non-governmental organisations (NGOs) are organisations that are independent from governments or politics and are often non-profits. They are organised on a community basis and often have a social or humanitarian goal.
As for the importance of political globalisation, the development and influence of international organisations reflect political and governmental action at the international level.
Thanks to globalisation, governments' efforts are not isolated or known only to their nationals. The whole world has access to data on the political management of each country, and the political situation of the territory, whether good or bad, is also recognised worldwide.
That is important because it allows for international monitoring of good political and governmental practices and allows organisations or other countries to take action concerning a nation and its political context.
Political globalisation began its rise after the Cold War when the leaders of nations began to create systems that extend national functions to the level of international debate.
A major impact of political globalisation is that world leaders are interconnected and can easily communicate in times of crisis or tension. It is also possible to solve problems and promote democracy through globalisation. The process of globalisation has contributed to the spread and promotion of democracy.
It has reduced boundaries and borders due to wars, making it much easier to avoid or resolve national and international conflicts because the whole of society will be aware that such conflict exists. Governments and organisations will make decisions to solve it.
Before globalisation, governments and politics were dealt with at the national level, so each country had complete jurisdiction over its policies and had full control over its regulations. But now, not only can each government's information be easily accessed, but it can internationally interfere or issue warnings when a government is violating the rights of its citizens.
Globalisation brought a significant differentiation for politics and the integration of nation-states after the Second World War. However, in general terms, political globalisation also has a particular concept. To define it, we use R. Thompson's idea:
"The expansion of a global political system and its institutions, in which interregional transactions (including but not limited to trade) are managed"3
The process of globalisation has brought about different changes in the history of the world as we know it. It has influenced technology, economics, politics, and communications.
It is also essential to know that globalisation is a process that cannot be "labelled" as good or bad. However, it is a fundamental part of the development of humanity, and it is well worth studying it objectively for what it is to make the most of the concept.
Merits | Demerits |
Technological distribution: Communication and technologies are now accessible globally with minimal time, cost, and effort. | Increased inequality: Increasing the specialisation of trade can increase inequality. |
Better services: Services such as water supply, electricity, internet, and different energies are now accessible to all as they are commercialised. | Increased unemployment: With technology, the need for physical jobs is reduced, and there are more skilled but lower-paying jobs. |
Increased GDP: With globalisation, all countries participate in global GDP growth. | Trade imbalance: An imbalance in export-import trade relations occurs, leading to a "trade deficit." |
Improved infrastructure: As a result of globalisation, governments can provide services to enhance domestic or foreign infrastructure through investment. | Environmental damage: The accelerated economic growth and technology also affect the environment, as industries tend to take harmful actions against nature. |
Market enlargement: Globalisation achieved the growth of markets and the capacity to satisfy needs, internationalising the exchange of goods and services. | Exploits poorer labour markets: Globalisation allows jobs to be developed in developing countries because of cheaper labour costs. |
Globalisation is a process of accelerating global interconnectedness in trade, communications, technologies, culture, and social and political issues.
The four processes of globalisation, according to The International Monetary Fund, are:
The importance of globalisation in politics centres on the fact that national governments worldwide now have an international projection so that their decisions are known to the rest of the international community, thus protecting democracy and reducing violations of rights by governments.
Some examples of globalisation are prominent and recognized multinational corporations, such as Amazon, Mcdonald's, and Ford Motor Company.
The potential and actual results of the globalisation process are many, but here are the most salient:
What is globalisation?
Globalisation can be described as the process that has led to the relationship between individuals, companies and governments throughout the world becoming interconnected.
What is an example of a TNC?
Apple
What has helped cultural globalisation?
FIFA world cup
How can global governance hurt consumers and businesses?
Countries will adopt the same or similar policy in regards to labour and tax policies, they will then have higher costs and then potentially raise the price to consumers for a higher profit margin.
What type of globalisation does NATO help?
Political
What is the aim of globalisation?
The aim of globalisation is to increase the connection between the world, to increase its efficiency and productivity and ultimately make a better world for everyone.
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