Globalization: Definition, Effects, and Examples

Study.com®

Plans Courses v

Globalization | Definition, Effects & Examples

Lessonare viewing this lossen on a parent account. Please log in to your student account to track your progress.

Author Instructor Ron Petrarca View bio Trunnis Goggins View bio

Expert Contributor Joseph Shinn View bio

What is globalization? Learn about its definition, examples, and impact. Also, see the effects of globalization along with its advantages and disadvantages.

Table of Contents

> What is Globalization > History of Globalization > Examples of Globalization > Globalization Effects > Globalization Advantages and Disadvantages > Lesson Summary

What is Globalization

What is globalization? The World Health Organization defines globalization as "the increased interconnectedness and Report an Error You are viewing lesson 7 in chapter 4 of the course:interdependence of peoples and countries." In other words, it is the process by which the cultures, economies, and political events in the world's many countries have become dependent on one another.

The World Trade Center in New York City

History of Globalization

Globalization did not begin in the 20th century. It is a process that has occurred at different paces and in different ways over the past three millennia. Many of history's great empires, including the Roman and British Empires, created a type of international economy and culture that were, in many ways, analogous to modern-day globalization.

The construction of vast trading networks, including roads and seaways, was one of the hallmarks of early globalization. Ancient empires spread their languages to other people and helped to spread technology, religion, and goods over a wide area. Modern globalization began during the 20th century, most particularly after the end of World War II. The invention of the television allowed images to be transmitted across the globe almost instantaneously. For the first time in history, people could see major news events unfolding before their eyes.

It was also during this time that America rose to be the world's predominant economic, political, scientific, and military power. American imports and exports drove much of the world economy, and its popular culture influenced people the world over.

By the beginning of the 21st century, the proliferation of communications technologies, especially the internet and smartphones, sparked a revolution in globalization. These technologies not only allow people all over the world to conduct business, exchange electronic documents, and enjoy entertainment ina convenient and expeditious manner.

In addition to technological innovation, major political changes took place which allowed globalization to progress. International treaties, such as NAFTA, allowed for the free flow of goods and services from one country to another. One major consequence of this was the outsourcing of manufacturing jobs from industrialized nations like the United States to developing countries such as China and India.

Globalization has greatly influenced the standard of living around the world. The standard of living is the level of wealth, comfort, material goods and necessities available to a certain social economic class in a certain geographic area.

NEW YORK.

New York harbor has long been one of the main trade centers in America.

Examples of Globalization

What are some examples of globalization today? Multinational corporations such as Amazon, Google, Apple, and Facebook are examples of international corporations that have not only benefited from globalization but have been one of the main engines of its success. Each of these products create goods and services that are considered indispensable by people on every continent.

The World Trade Organization (WTO) is the international organization that regulates trade between nations. However, international trade, transportation, and communications is regulated by a number of other institutes as well, including the United Nations.

Globalization Effects

One of the main positive effects of globalization has been the rise of the middle class in developing nations such as India and China. Theoutsourcing of manufacturing jobs from the United States, Europe, and Japan has meant that nations in developing countries have become major production centers for goods needed in other parts of the world.

Another positive benefit is that it allows people in developed countries to have access to goods and services that were produced with very low labor cost. This has made consumer goods much more affordable than they would have been if manufactured in a wealthy country.

Positive Effects of Globalization

• Access to a wider variety of foods
• More education opportunities for people in developing countries
• Scientific research carried out by a larger community of people
• More international cooperation in regards to controlling global warming
• Lowering production costs of products

Just as globalization has had many positive effects, it has had a number of negative ones as well. Within industrialized countries, many blue collar jobs in the manufacturing industry have been sent to other countries. This has led to an increase in unemployment for people without a college degree. In fact, it has become increasingly difficult for men and women in the working class to find meaningful employment.

Another major problem is deforestation. The need to grow food for an ever-growing world population has meant the clearing of forest land in order to make room for agriculture. The clearing of forests has contributed to global warming and has greatly decreased the biodiversity of the planet. The problem of deforestation is especially problematic in tropical countries such as Brazil and Indonesia.

Major Problems from Globalization

• Cybercrime
• Terrorism
• Pollution of the oceans
• Migration of refugees
• Human trafficking

Individual Effects of Globalization

Individually, most people in the world have found that globalization has radically changed their lives. In the industrialized world, almost everyone has access to a smartphone and other types of computer technology. This allows them to conduct their personal and business affairs comfortably from their homes.

Socialization, which was once a process that occurred at the local level, cannot take place in a global virtual community. People can have friends, colleagues, and acquaintances in almost any part of the globe.

Social Effects of Globalization

In regard to society as a whole, people have more interaction with those from other parts of the world on a daily basis. This is not only due to mass migration, but to the fact that many people often work in international corporations with coworkers who come from many other parts of the world.

Cultural Effects of Globalization

One of the major cultural factors that have resulted from globalization is the development of English as the international lingua franca of business and science. English's dominance as a world language began during the days of the British Empire, but the rise of the United States as a superpower in the 20th century cemented the use of the English language as the world's preeminent means of communications.

Music, television, and movies from many countries now have a global audience.

Economic Effects of Globalization

The economies of every country on Earth are at least partially dependent on the economies of the rest of the world. It is now almost impossible to discuss a nation's economy without analyzing in detail international trade and the presence of international corporations on its soil.Countries now compete for international corporations by offering them tax incentives to relocate to their nation. Many companies use the global market to increase the life cycle of their products. Life cycles are the duration of a product's popularity in a particular country. If a product becomes unpopular in one country, it may then be marketed by a company in another nation.

Political Effects of Globalization

The politicians of most countries see globalization as a good and necessary thing. International trade is a major political issue in most countries. However, there has also been a major backlash against globalization, especially by blue collar workers in industrialized societies. Many working class voters resent having their jobs sent overseas. As a result, there has been a growth in nationalist sentiment in Europe and the US.

Technological Effects of Globalization

Besides the technologies mentioned previously, globalization has led to the development of a number of other technologies. Among these are:

• Satellites
• Self-driving vehicles
• Drones
• Immunotherapies

Technological progress over the last few decades is increasingly driven by cooperation among scientists and engineers from all over the world.

Environmental Effects of Globalization

While deforestation and global warming are the two main effects that globalization has had on the environment, there are many others. One of these is ocean acidification. The lowering of the average pH of the Earth's oceans has meant the destruction of the world's coral reefs and the decimation of the organisms that live there. Additionally,forest fires in Australia, Europe, and North America have been attributed to excess CO2 in the atmosphere.

Globalization Advantages and Disadvantages

In all, globalization has had many positive benefits to the people of the world in terms of economics and scientific progress. The disadvantages lie mainly in the emission of greenhouse gasses, increase in pollution, and deforestation. However, scientists, activists, and politicians worldwide are trying to solve these problems by fostering conservation and developing technologies that use renewable energy.

Lesson Summary

Globalization is the process by which all the peoples of the world have become interconnected. It involves world politics, economics, and culture. It has greatly increased the standard of living of people all over the globe. This means that the level of wealth, comfort, material goods, and necessities of people in various countries has risen. Additionally, it has been beneficial to many multinational corporations. One of the reasons for this is it has allowed them to increase the product life cycles of many goods that they produce. In other words, once one of their products becomes unpopular in one country, the company can later market the same product in another part of the world. Corporations also benefit from globalization by gaining access to lower labor costs in developing nations. NAFTA is a good example of an international treaty that is important for allowing the free flow of goods and services between countries.

Important Effects of Globalization

• Technological progress (satellites, self-driving vehicles, drones, and immunotherapies)
• Deforestation (Clearing of forest land to increase space for agricultural use)
• Global warming (Climate change which causes many detrimental effects to the environment)

In short, globalization is an ongoing process, and it is likely to influence the course of events for the rest of the 21st century. It will almost