Globalization in the Past Few

¶ … Globalization

In the past few years, globalization has sparked a revolution in information and communication technology, dramatically and irreversibly changing society and civilization. As a result of globalization, new levels of interconnectedness between countries previously thought unimaginable have emerged. Globalization has been defined as the development of extensive worldwide patterns of economic relationships between nations, and the generalized expansion of international economic activity which includes increased international trade, growth of foreign investment, international migration, and increased creation of technology among countries. In other words, globalization is the increasing world-wide integration of markets for goods, services, labor, and capital. This paper will discuss what globalization is and why it is important to domestic firms and the individual consumer. It will also analyze the ways in which globalization is a benefit and how it can operate as a threat. Finally, it will conclude with a discussion of the manner in which globalization affects a society's beliefs, economy and politics.

Importance of Globalization to Domestic Firms and the Individual Consumer

Globalization is important to domestic firms because it allows them the opportunity to expand into international markets, thus growing their business and increasing their revenue potential. It gives domestic firms the opportunity sell their goods online through ecommerce worldwide, without having to establish a company in a foreign country. Domestic firms can also set up factories overseas and outsource the production of their manufactured goods, at a much lower price than before. Outsourcing also benefits the foreign country that the goods are outsourced to, because it creates previously unavailable jobs in poorer countries. Globalization affects the end consumer because people in other countries are able to make purchases online without having to travel to another country. Through the Internet, the domestic consumer now has the opportunity to purchase foreign products and goods not previously available to them. Technology has also allowed for the rapid shipment of goods between countries, connecting countries through global commerce.

Benefits of Globalization

Globalization has many benefits; a majority lying in the areas of technology and communication. For example, the technological advances offered by the Internet have come to serve as a bridge between cultures and countries. The Internet is available worldwide at fairly low prices, enabling even some of the poorest countries to have widespread access to the Internet (McChesney, 1998). This operates as a benefit to more advanced nations, because the hegemony of media giants and advertisers will soon end, and be replaced by a wide-open, decentralized, diverse, fast-changing, and competitive media culture lacking the requirement of government regulation (McChesney, 1998). In addition, the Internet and digital communication have had a significant impact on education. Students everywhere benefit from the research tools and resources available online; educational technology has positively impacted student achievement. For example, in studies of large-scale statewide technology implementations, these efforts have been correlated with increases in students' performance on standardized tests (Egendorf, 2004). In addition, software supporting the acquisition of early literacy skills, including phonetic awareness, vocabulary development, reading comprehension, and spelling can support student learning gains (Egendorf, 2004).

Furthermore, technologies offer teachers and students opportunities that would otherwise be extremely difficult to realize in classroom contexts. Assessment, information access, collaboration, and expression are four areas where educational technologies demonstrate particular promise (Egendorf, 2004). There is also a broad consensus among school reformers regarding the central importance of these issues for improving student achievement (Egendorf, 2004). Technologies also create new opportunities in which children can express and communicate their ideas. It is no longer uncommon for schools to encourage reports in multimedia format or for students to build web resources that can be used by others. Thus, the benefits of globalization are numerous; it produces extra wealth for domestic and international firms; it allows the end consumer the possibilities of purchasing goods manufactured in sold worldwide; and it supports educational resources available to students everywhere at reduced costs.

The Threats Posed by Globalization

Just as globalization has many benefits, it is also argued that it presents many threats, most to underprivileged countries. A significant threat to underdeveloped nations is that globalization has destroyed potential and previously held jobs and their lives become more insecure (Stiglitz, 2002). Most of these countries that view globalization as a threat are poorer and have not been able to keep up with the technological advances offered by globalization. Jobs are lost and domestically generated income is depleted when large global companies enter into a poor country and set up shop. These countries have felt increasingly powerless against forces beyond their control; they have seen their democracies undermined, their cultures eroded (Stiglitz, 2002). Research in this area indicates that if globalization continues to be conducted in the way that it has been in the past, it will create poverty and instability. For example, rich countries have created seeds to produce genetically modified goods in an attempt to cure world starvation. However, poor farmers are unable to purchase the seeds, and the richer countries own all of the patents. Thus, the farmers in poorer countries are unable to farm these crops. In addition, when food is donated by large global companies, poorer countries are negatively impacted once again because food is not purchased internally, enabling many to lost jobs and become even poorer. Thus, it appears that globalization provides many benefits to economically advantaged countries, but to poorer ones.

The Affects of Globalization on a Society's Beliefs, Economy & Politics