The evolution of globalization: benefits and challenges

Globalization is a compelling aspect of the new global system reflecting the future of intercontinental and regional partnerships around the globe. It has complex manifestations: investment, political, security, health, environmental, social and culture. The term "globalization" was made up in the 1980s but the notion is universal depending on the distinctive interpretations by various scholars. Because of these distinctive interpretations, there are different responses to "globalization," with some legislators, researchers, and advocates considering it as energy for propelling the planet economy (Rahman, 2008). On the other hand, others, again each of the three, are seeing it as a genuine risk to the economic system of the world. This study focus on the concept of world globalization, its evolution, benefits and challenges stemming from this concept.

The evolution of globalization

Globalization, from the viewpoint of emerging economies, began in the fifteenth century when the Spanish, Dutch and Portuguese started advancing settlements in Asia, Africa and South America. It was not referred to as globalization then, but was initially called exploration, and later colonization. That was the point at which the natural resources from different parts of the planet started to be paramount to the economies of Europe (McKay, Lawrence, & Rowe, 2010). After that, there was such a modest level of exchange between Europe and different parts of the planet that it was not a major part of Europe's economy. After the sixteenth century, different parts of the world became essential to European economic development. In the meantime, European concepts particularly civil organization, Christianity and science, started to penetrate Africa, Asia and South America. Therefore, the diverse parts of the planet that had been ignorant of one another started a process of integration and communication that might expand through the following centuries. The world started to shrink, and individuals of diverse societies started to know more about one another. McKay, Lawrence, and Rowe, (2010) show

"We stand not as fans or observers of globalization, but as critics. For while globalization may have begun its life as a Universalist utopia of world governance and peace, it has quickly mutated into a battleground for the U.S., Japan, and Western Europe over state and business domination" (page 5),

This process progressed gradually until the eighteenth and nineteenth centuries when new technologies were created. It was just after the French Revolution that the first broadcast message was sent. In this case, the conception of the first electronic data engineering. The main reasonable steam train was created in 1814, which implied that a train could convey individuals and merchandise over a landmass speedier than the speed of a steed (35 mph) without precedent in history (Collier, Dollar & World Bank, 2012). The first steamship crossed the Ocean of Atlanta in 1818, endlessly decreasing the time from London to New York. With the advancement of technologies, economies became more and more integrated and interdependent. In 1848, Karl Marx noticed an advanced industry that built the world market, which has given monumental improvement to trade, communication and navigation by land.

Benefits of globalization

Although globalization has both merits and demerits, this section concentrates on the positive impacts of globalization as attributed to global competition. The next sections will concentrate on the negative impacts that often create potential conflicts among interacting countries. Globalization has expedited increasing competition on a worldwide premise. Rahman, (2011) shows

"…..International Interference is in favor of one of the rival sides the other side, for, sure, will be against it. Political benefits of globalization of regional and national conflicts are not so implicit…." (Page 46).

While some fear it, numerous beneficial impacts of rivalry can build efficiency besides enhancing production. Rivalry and the expansion of business sectors can accelerate division of labor and specialization, which are beneficial to all market systems (McKay, Lawrence, & Rowe, 2010). Division of labor and specialization, with their impacts to increase production, now exist not simply in a country but on a worldwide premise. Other positive impacts include the economic advantages facilitating the reduction of expenses and costs favorable to continuing economic development (Bass, 2010).

More benefits attributed to globalization incorporate trade profits, which both parties mutually benefit in a commonly advantageous trade, where the participants could be people, firms and different organizations, continents, entities, countries or trading blocks. Globalization can also create expanded productivity as an after-effect of rationalized production on a worldwide scale and the spread of innovation and competitive forces for consistent innovation on a global basis (Gugler, 2008). These advantageous impacts of rivalry stemming from globalization reveal its potential value in enhancing the prospects of all partners and likelihood of expanded output and increased income levels. This creates better living standards across world populations. Evidently, distributional issue of those benefiting from these potential profits of globalization arise (Gugler, 2008).

From a business perspective, worldwide innovation has been the driving force behind global associations and Global training. Globalization has assumed a noteworthy function in international business. It opens more markets to global partnerships as the complexity and cost of operating across continents is minimized by globalization. Globalization lessens expenses accelerating an expansion in worldwide business. While improving nations, globalization empowers business organizations to procure cheap resources and labor for development (Collier, Dollar & World Bank, 2012). Besides permitting decreasing costs of their items, this also extends markets for individuals with attractive wages to buy more products and services. (Bass, 2010 shows

"Adaptability of labor markets is important for shaping the current and prospective globalization trends. Globalization requires adaptable labor market institutions and adjusted labor market policies and the various components of LMF may become reordered…"(page 76).

Advanced and new communication technologies have been spreading over the planet; this has encouraged international business campaigns to be conducted at the local base. The web and mobile devices have opened new global businesses with an enlarged potential. Globalization has changed the purchaser buying patterns and behavior (Rahman, 2008). Consumers can effectively look for better deals and make overseas purchasing without the need to view the items first. Globalization uplifts the level of business rivalry, which accelerates expansions to viable worldwide marketing. Organizations can no more act in monopolistic ways in domestic markets as rivals are emerging from all corners around the globe.

Transport and distribution frameworks have ended up additionally efficient, which makes it faster, cheaper and easier for corporations to deliver items to consumers. E-business frameworks have made receiving and making worldwide installments more secure and quicker. Finance has come to be easily accessible to corporations while investors have exhibited their interest towards investing in a wide range of industries all over the world. This reduces their overall level of risks (Collier, Dollar & World Bank, 2012).

Conclusion

It is clear that the benefits of globalization supersede the challenges. Therefore, all countries must acknowledge that globalization is here to stay. The challenge of globalization is not a mechanical but a financial and economic process. It must additionally be a human process, a spiritual procedure, a mental procedure, an expanding of our consciousness, a more sensitivity to other cultures and people, and an extending feeling of wholeness. Since common sense infers that a unified planet is the next phase of humankind's history and the unarticulated goal of globalization, efforts to foster this must be based on a unified self in all global populations (Rahman, 2008).

Globalization is a test to each country, countries must seek to move past the restricting parameters of past groups as the essential form of identity, and expect another worldwide viewpoint. Our historic feeling of race, family, class, religion, and nation will dependably be a part of which we are part of our origins and identity. However, we are currently at a point of global advancement because of our own innovativeness. At this point, our sense of identity is pushed to expand and incorporate life aspects that are not familiar to us. This remains to be a challenge, which all human beings face in diverse ways.