Globalization is an integral process of the modern world. He touched on almost every area of human activity.
What is globalization?
Globalization is a new scientific paradigm of world development. The concept of globalization includes a process during which the whole planet is integrated into a single system, and the borders between states are blurred. It is believed that the processes of globalization began during the period of great geographical discoveries. The well-known economist Kant clearly defined what globalization is. In his opinion, this is the acquisition of a permanent peace by creating the institution of a world government that governs all political and economic processes. Globalization is the result of internationalization and the growth of inter-economic relations, as well as political transformations in the leading countries of the planet. To some extent, this process can be called the next stage in the modernization of modern society and the world.
Processes of economic globalization
The globalization of economic processes is the transformation of world space from small zones enclosed within the geographical framework of states into a unitary system in which the free movement of goods, services, information and other tangible and intangible resources is possible. Within this framework, relatively free movement of information carriers is possible, which stimulates the accelerated pace of implementation of globalization processes everywhere.
What is globalization? What are its consequences? The final result of globalization, scientists and theorists believe the unification into a single system of international international legal, political, cultural, informational and economic spaces. This process should be decisive in building a new world order in the 21st century.
Pillars of globalization. Scientific and technological progress and the international division of labor
With the development of transport, communications, it became possible to operate processes remotely. This has facilitated international investment with faster decision-making. Getting education abroad and getting a job became available for many people. Labor migration complicated competition in the labor market, which favorably affected the growth rate of the world economy.
Pillars of globalization. Liberalization
The second factor that affects globalization is global liberalization. This process is the simplification or abolition of norms that complicate or completely impede the interaction between contractors in different territorial entities. As a result of the limitations of protectionism and the creation of free trade zones, the costs of production and transportation of goods and services have significantly decreased. Due to lower operating costs, many goods and services became available to a wider circle of consumers, which also had a beneficial effect on the global economy. Due to the removal of restrictions, the volume of foreign investments increased, which brought additional profit to investors, as well as the creation of new jobs in countries with developing economies.
Transnational corporations
Transnationalization and globalization of the market led to the emergence of companies whose operational activities lie outside the framework of one state. Due to the accumulation of a gigantic volume of tangible assets in itself, decisions made within the framework of a multinational company can have a significant impact on the share of consumption, production, level of export and import.Therefore, national governments indirectly take into account the interests of large corporations operating in a particular country. This can lead to both positive and negative consequences.
So due to manipulations within the framework controlled by large companies, even a change in the political system and the top leadership in the country can be made.
Transnational corporations themselves appeared in the 1960s and 70s with the emergence of the need for the redistribution of world resources. Modern global companies, unlike the first production ones, operate in the markets of information and financial services, forming a single information and financial space.
Supranational Elements of Globalization
In addition to private corporations, such as Apple or Google-Alphabet, there are interstate supranational economic associations. Usually they are created within certain organizations. The main tasks are the impact on world economic processes and their adjustment, according to the opinion of the main participants and investors of these structures. Among the most famous are the following: the International Monetary Fund, the International Finance Corporation, the International Association of the largest oil exporters OPEC, the International Trust Fund, the International Bank for Reconstruction and Development.
On the whole, the concept of globalization is not fully understood; it cannot be said about all the positive and negative aspects that it brought to the modern world. However, one cannot fail to notice that the integration process had a positive effect on the growth of economies of both developed and third world countries. What is globalization for the average person? Almost everyone has access to jobs around the world, as well as the opportunity to freely choose a place to live, work and study.
