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Definition of Globalization


Definition of Globalization

Globalization is the system of interaction among the countries of the world in order to develop the global economy. Globalization refers to the integration of economics and societies all over the world. Globalization involves technological, economic, political, and cultural exchanges made possible largely by advances in communication, transportation, and infrastructure.

There are two types of integration—negative and positive. Negative integration is the breaking down of trade barriers or protective barriers such as tariffs and quotas. In the previous chapter, trade protectionism and its policies were discussed.

You must remember that the removal of barriers can be beneficial for a country if it allows for products that are important or essential to the economy. For example, by eliminating barriers, the costs of imported raw materials will go down and the supply will increase, making it cheaper to produce the final products for export (like electronics, car parts, and clothes).

Positive integration on the other hand aims at standardizing international economic laws and policies. For example, a country which has its own policies on taxation trades with a country with its own set of policies on tariffs. Likewise, these countries have their own policies on tariffs. With positive integration (and the continuing growth of the influence of globalization), these countries will work on having similar or identical policies on tariffs.

Effects of Globalization

According to economists, there are a lot of global events connected with globalization and integration.

It is easy to identify the changes brought by globalization.

1.   Improvement of International Trade. Because of globalization, the number of countries where products can be sold or purchased has increased dramatically.

2.  Technological Progress. Because of the need to compete and be competitive globally, governments have upgraded their level of technology.

3.  Increasing Influence of Multinational Companies. A company that has subsidiaries in various countries is called a multinational. Often, the head office is found in the country where the company was established.

An example is a car company whose head office is based in Japan. This company has branches in different countries. While the head office controls the subsidiaries, the subsidiaries decide on production. The subsidiaries are tasked to increase the production and profits. They are able to do it because they have already penetrated the local markets.

The rise of multinational corporations began after World War II. Large companies refer to the countries where their subsidiaries reside as host countries. Globalization has a lot to do with the rise of multinational corporations.

4.   Power of the WTO, IMF, and WB. According to experts, another effect of globalization is the strengthening power and influence of international institutions such as the World Trade Organization (WTO), International Monetary Fund (IMF), and World Bank (WB).

5.   Greater Mobility of Human Resources across Countries. Globalization allows countries to source their manpower in countries with cheap labor. For instance, the manpower shortages in Taiwan, South Korea, and Malaysia provide opportunities for labor exporting countries such as the Philippines to bring their human resources to those countries for employment.

6.   Greater Outsourcing of Business Processes to Other Countries. China, India, and the Philippines are tremendously benefiting from this trend of global business outsourcing. Global companies in the US and Europe take advantage of the cheaper labor and highly-skilled workers that countries like India and the Philippines can offer

7. Civil Society. An important trend in globalization is the increasing influence and broadening scope of the global civil society.

Civil society often refers to NGOs (nongovernment organizations). There are institutions in a country that are established and run by citizens. The family, being an institution, is part of the society. In globalization, global civil society refers to organizations that advocate certain issue or cause.

There are NGOs that support women's rights and there are those that promote environment preservation. These organizations don't work to counter government policies, but rather to establish policies that are beneficial to all. Both the government and NGOs have the same goal of serving the people.

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The spread of globalization led to greater influence of NGOs especially in areas of great concern like human rights, the environment, children, and workers. Together with the growing influence of NGOs is the increasing power of multinational corporations. If the trend continues, globalization will pave the way for the realization of the full potential of these two important global actors.


pongwa khamis on January 18, 2015:

thanks very much for it but elaborate more for better understanding

ak on May 07, 2014:

globalization is a term that connect all the economic of the world in a one aspect

Eliud Andrew on January 21, 2014:

thanks to you!!!!!!

GODFRED BROWN on January 12, 2014:



ali mohammed on January 09, 2014:

10 Q

deodatus mbata on December 19, 2013:

nc in4mationnnnnnnnnnnnnnnnnnnnnn

Suma Prasadimath, Gadag.... on August 27, 2013:

thank you very much sir/mdm.... i m a PG student.... this information is very much useful to my studies and to my seminor about GLOBALIZATION....

Thank u once again.....

Suma Prasadimath, Gadag....

pramodgokhale from Pune( India) on July 14, 2013:


Globalization was long overdue and finally, conservative governments across the globe realized to join bandwagon of globalization.

Success and failure of any system is applicable here and it is too early to

expect success and we need to strengthen economies and quest for progress and Eco- conservation which will boost chances globalization's success.

thank you sir

pramod gokhale

prakrati verma on July 05, 2013:

awesomm..... it help soo much in my prjct

amna on May 26, 2013:

thanks nice explanation

john on May 22, 2013:

thank you for this defination of globalisation

kankana bhuyan on May 08, 2013:

A good note on globalisation.Thnx.

MARLON R on May 07, 2013:

thanks for yo supportive explanation of globalisation

MARLON R on May 07, 2013:

thanks for yo supportive explanation of globalisation

oyella ivy on April 07, 2013:

it was so helpful for my test

jemal on April 07, 2013:

thanks i got a wonderful explanation about globalization

nush on March 20, 2013:

Thanks..grasp loads of information and very interesting..(:

jimi on March 13, 2013:

thank a lot

ahlem on March 04, 2013:

nice and useful information thnx

ahamd on March 02, 2013:


vbbb on February 28, 2013:


mainka on February 20, 2013:

it is good

shivani on February 07, 2013:

thanks for this information. Tis is very helpful for my exams

gayatri on February 02, 2013:

Good info but could be much much much more better.....

sandy26 on January 21, 2013:

very nice and detailed information about globalization.. tan Q very much..this is going 2 help a lot in making mi project.. :)

priyanka vilas lokhande on January 21, 2013:

I am Making a Project on Effects of Glottalization On human Resource Management can you please help me form where i can get relevant information

preethi on December 26, 2012:

it was ausom.

jovet on December 10, 2012:

please can any one help me with the challenges of Archie and proto globalisation.

i will really be grateful if any one can help.

thanks and waiting...

komal on November 12, 2012:

It is very useful.


chandara on November 08, 2012:

I'm very happy!

gfhjhkuuuuuuuf on October 24, 2012:

arnav sing rai

jazeeba on October 19, 2012:

good notes though.. appreciate ;)

SONIA on October 16, 2012:


farah on October 15, 2012:

stop globalization.......................

azam on October 10, 2012:

amazing info. it helps me for preperation of my assignments

Shaa on September 30, 2012:

References plz?

aitya on September 30, 2012:


i like it

anonymous on September 24, 2012:

My goodness, the level of English on this forum is remarkably... low!

-No offence-

Hri Subedi on September 06, 2012:

i would like to give special thanks because of your good description about the globalization

999gaggg on August 31, 2012:

seems legit!

9gagger(first poster) on August 30, 2012:

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9fap on August 30, 2012:

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Another one checking the

9gager9 :) on August 30, 2012:

Yeah 9gag link checker ....

ninegag on August 30, 2012:

I´m from the English presentation.

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Not sure if reading the URL wrong and going full retard...

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This page is getting popular.

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I thought i'd be the first 9gagger posting here...

Well you made it fat chick!

9gagger on August 30, 2012:

I'm from 9gag! Problem people?

shahana sherin on August 05, 2012:

thanks...............very much

tamanna on August 01, 2012:

this define is the most appropriate one

Banjoe on July 31, 2012:

useefull thnksss :))

faisal mk on July 18, 2012:

its really usefull

Garima Gawshinde on July 07, 2012:

Thank u sooo muchh for the information regarding globlaliztion..

Jane D on July 03, 2012:

Thnx for wonderfl articl,nc job

N.L. Gcanga on July 02, 2012:

Thanks for your interpretation on globalisation. The information will help me on my stadies.

Sulan on June 25, 2012:

M preparing notes on globalization and indeed very helpful.Thanks for d source.

INDU SAHARAN on June 21, 2012:

Thank you soooooooo much

It is very helpful

Munireddy Bandari on June 16, 2012:

Namaskarmy name is Bandari iam for AP INDIA Thank you very much Sir your article is wonder full it is very very use full for Indian public at the same time your forgotten so many sectors your not discussed that's wat am suggesting particularly in one of the main sector it is none other then Agriculture sector it is one of the impotent sector am very very sorry say that am cultivated family that's what i suggest these things Thank you sir

Nitro on June 08, 2012:

thanx for the valuable information! but I cant use ur name as reference in the academic report!! hotbabefatchicks! lol

thanx anyway

srishti on June 07, 2012:

gr8 work...thanks a lot

nitika on June 05, 2012:

thanku its a gr8 covers almost awl d topic wich i wanted to read n undrstand....i ws facing prob to learn dis frm ma concernd aftr reading dis i cn say dt nw i cn undrstand ....

M.Naeem Qureshi on June 04, 2012:

Very good effort but please submit the references too. Thanks

Imran nadwi on May 31, 2012:

Breaf and very good information

kimmy on May 30, 2012:

Thanks a lot for the great work u did! I am a MBA student and have an assignment work on Globalisation. This article simplies it.

Mushtaq on May 26, 2012:

Thanx for giving such nice information about globalisatiom.i am student of sociology

tooba batool on May 25, 2012:

plz kindly tell me is this a answer of this question ? how globaliazation can change the nature of state in post cold war?

rosemary kasimba on May 22, 2012:

i would like to thank u for dishing out such an indispensable information about globalization

Winzy luv" on May 21, 2012:

Globalization shuld stay 4 eva...@

9ice work...@

ashi on May 19, 2012:

very nice way to explain globalization thanks a lot:-)

dima obol godfrey on May 14, 2012:

thax alot it will be so interesting if u would argue the negative impact of globalisation for academic use since ur explanation is so clear

Lady m on May 10, 2012:

Thanx 2morröw it my submitioñ abt globalisation

NIO on May 09, 2012:

Thanx a lot, I am facillitating on this topic Globalization tomorrow, very helpful

Chipmak on May 09, 2012:

This is wonderful. Thank you

Sanjib Kumar Dey on May 06, 2012:

Thank You very much. It's helpful for me. I hope all the best to you.

Dutta on May 02, 2012:

What are the forcrs of globalization?

Hussein dahir on April 24, 2012:

thnx for giving me this definition bcoz this is my assiment today i best wishes to u

preet on April 24, 2012:

its a very good information................ awesome.

kushagra on April 19, 2012:

really outstanding,& thnxx aton....!!!!

sameera on April 19, 2012:

thanks 4 these informations

Sabika Ali on April 17, 2012:


Pa'cheedah on April 13, 2012:

Thks 4 d info. Phatbaby,pls i wldnt mind d references u used...or do u have any idea on "Globalisation of principles of education"...

Waseem Hussain on April 09, 2012:

Thanks a lot for this contribution.

leonard mapunda on April 09, 2012:

am a civics teacher from TAnzania,this document has helped me a lot in my work of teaching.

Nousin on April 02, 2012:

Thank u very much for giving me those definition it helps me lot.

Pascal on March 30, 2012:

Thank you for your good work. It is very useful for me and my colegues in BBA studies. Thank you very much.

Rehan on March 24, 2012:

This was just like a candle found in dark a night before my examination....... bundles of thanks

mella on March 22, 2012:

highly appreciated for I have completed my whole globalisation assignment. Umbulelo ongazenzisiyo THANK U

babar on March 21, 2012:

i like it. i was searching for this kind of answers. when i read this meaning of globalization i think it is the perfect meaning of globalization. it is short also. great

reshma on March 19, 2012:

helps a lot in understanding the concept,thanks a lot.

sir will on March 11, 2012:

thanks a lot man, useful, simple and true

nadeesha on March 10, 2012:

This is a good view point and very useful for me. Thank you very much for providing this for us.

moses muganga on March 01, 2012:

Thank you so much for giving us the wonderful messages about globalization.l like it very much,You made it.God Bless you much more and more so that you can continue helping people.From Kampala lnternational University-Dar es salaam

sdjbf on February 27, 2012:


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