CAUSES AND EFFECTS OF GLOBALIZATION

“Globalization is a dynamic process which regional economies, societies, and cultures have become integrated through a global network of communication, transportation, technology, and due to increased interdependence among countries around the word” Globalization produces the systematic unification of markets, societies and cultures; It as a result of the biggest chances in transportation costs, new technologies and global competition. Globalization effects are favorable and unfavorable, it depend what you think? One effect is that it promotes greater cultural homogeneity. A second effect is that changes the role of the government.

The transportation has come in the most efficient an inexpensive media to transport people and thing around the world. The rapid growth of globalization process was caused for this chance in the transportation costs, for example, sea transport is cheaper that other time. Global competition for new markets is other cause of globalization process. Nowadays, Japan and other Far East countries like Singapore, rapidly developed a number of technical advantages, based on improved manufacturing West methods. Those countries are coming into ever more direct competition for American Countries.

The new technology like Internet and cheap wide-band width international communication has been a new force that the growth of the globalization process. Nowadays, many design activities, business decisions, and complex transaction like manufacturing and software development are doing independent of specific locations. Those are possible for the globalization process.
For example, transnational corporations had become a global system in this globalization times. They corporation can respond instantly, for global questions or problems, from thousands of miles away them original countries. Those are possible because the Internet and other new technologies having the world more small of the time.

The results of globalization are positive or negative. From the perspective of business, it is a process to improve the worldwide economic integration, and this is good for Business. Economies of scale, increased production on the average cost of production, and; consequently, more money for the companies are good news for everybody. I know, it has many opportunities to make money for us, increase production and open new markets for companies, and a as result, more people in our countries can buy things, at an affordable price.

But other expert said: “globalization increases the gap between the rich and poor. “…this gap is especially pronounced in Latin-American, and for this reason, many people are unfavorable a globalization process. For example, “68% of the Brazil’s population survived on less than $100 U.S. per mouth. The problem is this process is an inevitable and irreversible process.

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GLOBALIZATION. Website of infed.org; Retrieved November 15, 2010, from http://www.infed.org/biblio/globalization.htm

Consequences of globalization. Website of country-data.com; Retrieved November 15, 2010, from http://www.country-data.com/cgi-bin/query/r-1688.html