Course - Sociology sub topic Globalization

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Date: 15th April 2012
INTRODUCTION
There many different definitions of the term globalization as given by different sociologists. The most common definition refers to globalization as a process of integrating the communities of the world into a common system which is either social or economic. It aims at reducing the geographical inequalities through spreading job opportunities allover the world. It is an interaction system that brings together all countries of the world and aims at achieving one global market. It is comprised of economic, political, cultural and technological exchanges that are brought about by communication, infrastructure and transportation advances.Integration could be of two types either negative or positive. Negative integration refers to the breakdown of protective and trade barriers for example tariffs and quotas. This could be beneficial to a country in the event that it allows important and useful products into the economy. On other hand, positive integration usually aims at standardizing the international economic law and policies. If a certain country has set its own policies on tariffs it could trade with another country that also has its own set policies. These countries will with time set similar tariff policies due to globalization influence. Globalization refers to the increase in number of cultural relationships, people and economic activity. It`s mainly used in reference to economic globalization which deals with the global distribution of goods and services production, the reduction of trading barriers imposed on trade and export fees and import quotas. Globalization plays a major role in boosting economic growth in both developed and developing countries mainly through the comparative advantage principle and increased specialization. The term globalization could also refer to circulation of ideas and languages and popular culture across different countries.All in all one must try to incorporate the aspect of sharing goods, cultures and services between people and different countries so as to have a comprehensive definition of globalization. (Brittan, 1998).
This is entire process has become much faster due to improvements in technology which have made exchange much simpler.
Drivers of globalization
Businesses act as drivers to globalization and these businesses refers mainly to multinationals that is those big businesses that usually operate in more than one country. These businesses aim at maximizing profits, sales and the value of shareholders. Through this, the process of globalization becomes more rapidly. Another driver for globalization is the barriers to international business that have been lowered are falling by the day, it has now become much easier for countries to engage in trade and increase the trading territories particularly those businesses that are providing services. The governments also try to encourage local and domestic businesses to expand the territories and to become international. Any businesses interested in expanding may acquire support from the government. Other factors that can be considered as globalization drivers include digital communication, rising standards of living, lower transportation costs, reduced protectionism, market liberalization and divergence in consumer cultures.
The lowered transportation costs has made it cheaper for people from different parts of the world, the costs of shipping commodities has become cheaper resulting from the introduction of containers, shipping in bulk and other efficiencies. The cost of flights has also gone down thus making it cheaper for people to travel overseas. With lower transportation the manufacturer`s prices are brought closer to the prices in the export market. Technological advancements have also played a major role in the growth of globalization this is especially in the communication sector this includes the internet. Digital communication systems make it simpler for people from different cultures and countries to freely interact since it has lowered communication costs and costs of transmission. Digital communication has also contributed to the stimulation of global trade in product knowledge of products such as software. Less protectionism has also played a major role in opening up trade worldwide; different countries can trade freely with fewer restrictions. The government can also introduce trade blocks and reduce trade and non-trade barriers. Other drivers include the increased formation of strategic alliances the ever increasing levels of world trade the increasing number of business competitors globally. Another driver of globalization is the increased ownership of corporations by foreign acquirers and more companies are now moving from being nationally centered to being globally centered. There is increased growth in global networks and this has made countries become interdependent in some particular industries.
The ongoing strive for economies of scale and the accelerating rate of technological innovation and also the rise of highly productive countries with relatively low labor costs. Others include the introduction of global brands that are produced in almost all countries; there is the desireby companies to advertise products globally. Employment is another factor that has contributed largely to globalization especially the people from countries with no natural resources; these countries concentrate more on training and providing labor to other countries. People from these countries move from their country and go to areas where their services may be required. These are some of the many drivers of globalization suggested by various scholars.
Impacts of globalization on developed and developing countries
Developed countries are those countries that are highly industrialized and have developed economically thus they meet a certain socio-economic criteria such as industrialization and human development index and gross domestic product. The World Bank and other international organization have renewed interests in developing country and have started investing in them; therefore this brings about new investment opportunities in developing countries (Julie-Anne, 2003).
The frequent exchanges made to developed countries have led to technological transfer hence improved living standards and higher productivity in the developing countries. On the other hand, most developing is left out of the globalization process. Most developing countries view globalization as their way out of poverty though this is not always the case, the developed countries make more money out of international trade as opposed to the developing countries therefore some developing end up as poor as they were or even more. Consequently, the gap in income distribution between the developed and developin...