Causes of Globalization Introduction Means

¶ … Causes of Globalization

Introduction means of trade and financial flows. Specialization is one positive aspect of globalization as well as the basis that globalization plays in promoting peace among countries and borders. However there are those who believe that globalization promotes poverty and inequality. Also it is believed by some who are opposed to globalization that the interdependence of countries is at stake due to the demands of globalization upon policy changes and factors of adherence toward globalization integration. (Shenglia, date unknown) the concept of what is known as globalization is that the entire world, or globe, is interacting with other parts of the world as though the entirety of it were a single-market with production, consumption and response all being independent manifesting itself in the "growth of world trade as a proportion of output" (GWP) showing a 7% growth in 1938 compared to 10% in 1970 and 18% in 1996. (Williamson, 1998)

Globalization is further "reflected in the explosion of foreign direct investment (FDI)" as the FDI has shown a $2.2 billion increase in 1970 to approximately $151 billion in developing countries as well as "national capital markets becoming increasingly integrated" this is demonstrated in the fact of $1.3 trillion per day crossing the markets of foreign exchange transactions. (Williamson, 1998) Other features of globalization that are immeasurable due to their nature are standardization of production and of products available throughout the world Globalization means more choice lower prices and blurred national identities for consumers. While business benefits from lower costs, better supply, and more markets. Developing countries realize benefits from globalization via "increase employment, tax revenues, and international relations." Developed countries experience benefit from globalization due to increase production, important, exports and corporate growth. The social impact of Globalization is evidenced in the fact that globalizations may cause job transitions in developing countries causing wages to go up in developing countries while pressuring unskilled workers wages downward at home. Furthermore globalizations causes entrance of capital and exist of economies both easy and more request crating economic uncertainty. Globalization has meant the use of raw materials, capital and people in accomplishing goals is a result in International business.

I. Capitalism

Sociology professor Williams Robinson wrote the book entitled "The Theory of Global Capitalism: Production Class, and State ion Transnational World" is a development of the thesis of Robinson which states that a new phase of capitalism, the transnational global economy is what globalization is really about. That the move is one from total focus on free-trade to and stated that, "Capitalism is by nature expansionary." Capitalism will survive as long as it has what it needs in order to do so which consists of continual access to new supplies of cheap labor, land, raw materials and markets. Robinson defines globalization as the 500 years of expansionism, including the periods of colonialism and imperialism. Robinson refers to the period that is presently occurring as the "early phases of the fourth epoch of capitalism." Robinson holds that the first epoch was that from which capitalism of feudal Europe emerged, the s3econd epoch was the Industrial Revolution; Corporate Capitalism identifies the third, and fourth is named the "Information Age" by William Robinson. (International Journal on World Peace, 2004) Robinson, 2004 states that the difference in Capitalism and other forms of social systems is that people engage in the system of Capitalism in order to make exchanges on the products that are produced for profit purposes.

II. The Internet: Communications, Technology and Global Integration

International Growth Strategies are addressed in the work of Abboushi (1999) who states that, " as being that of "equity-based expansions of corporations to acquire ownership in foreign firms that can be used to further corporate goals." (Abboushi, 1999) it is the competition of companies that want to compete globally in all locations of the world that were the first to realize the need for globalization but as well the consumer realized this due to limitation in goods in areas of the world. Globalization's roots are stated to have gone back many thousands of years as stated in July 2000 Inc.com entitled, "The Challenges" it was noted that competition which was fierce in relation to space travel is also expensive causing the many countries that are active in space research to pool that research.

The rapid growth of the Internet and other information technology and communications capabilities empowering and enabling complex applications that can take place while the major actors are all hundreds of miles from the location. "Real-time" communications is expedient as well as efficient which are two desired elements in the industry. The pursuit of foreign markets by the United States as well as those of the European and Latin American markets is causative factor in globalization. The companies that compete throughout the world are seeking methods for integration of all aspects of their corporation. Furthermore, companies sue 'international growth strategies for the express purpose of "acquiring suppliers of vital resources." (Abboushi, 1999) Expansion can also be accounted for due to the fact that companies in the United States seek expansion on an international basis because they are unable to obtain certain products in the United States.

II. Necessity: Policy Results

Another viewpoint is that globalization most likely arose out of necessity of some type. One example of the idea presented may be found in the Scandinavian Acta Sociologica in a work entitled" the Future of Advanced Welfare States in the Knowledge Economy" states that a new model of welfare, employment and economic governance has been developed and is based on universal access to fax-financial social services and social insurance, full employments secure by expansive macro-economic policies and active labor market policies, highly organized labor markets, corporatist interest meditation..." (Benner, 2003)

This work has clearly shown that, as stated in the first sentence of this work, globalization formed as a result of interdependency between markets across the globe. Furthermore it is a system that is driven by the profits that are realized through globalization. It is stated in the MIT Press Science & Technology Summer publication of 2003 that:

Globalization is an ever-increasing force. Its consequence for the United States and other countries are not fully understood. It is driven by the profitability it affords companies and as such globalization is insensitive to its effects on individual countries. Profit flows into certain pockets, while wages flow into others.