Globalization
Globalization is the general integration process experienced by individuals and organizations in all countries, largely enabled by new information technologies. Globalization Characteristics and its effects
Globalization takes the form of intense international trade, foreign investment, and a fluid capital market, not without risks. Thanks to globalization, the movement of goods of all kinds outside the borders of each country has multiplied, leading to a huge expansion of markets.
Next, and as a summary, we present the main characteristics of economic and cultural globalization, its advantages and disadvantages.
Characteristics of Globalization
Free trade policies
The global integration process is largely supported by the emergence of various free trade agreements with different scopes, such as the FTAA (Free Trade Area of the Americas), the NAFTA (North American Free Trade Agreement), the TLCUEM (Free Trade Agreement of Free Trade between Mexico and the European Union ), MERCOSUR and many others.
Mobilization of goods
Globalization led to a dizzying movement of goods of all kinds outside the borders of each country, that is, to a great expansion of markets. The world trade in goods and services has multiplied by leaps and bounds hand in hand with globalization.
Mobilization of human resources
The internationalization of companies often requires the temporary or permanent transfer of their human resources, which may be required for training functions, fine-tuning, evaluation of new markets, etc.
World financial system
The capital market becomes a decisive factor in the globalized world, in this context international credit institutions such as the World Bank or the International Monetary Fund take on a very important role. Globalization Characteristics and its effects
Multinational corporations
With globalization, and for economic-financial reasons, it is common for several companies to come together to form corporations of international scope, which compete (not always as “equals”) with local industries and businesses.
The ability to fund multi-million dollar ad campaigns often exacerbates these gaps.
Industrialization
The globalization process is perhaps the main cause of the strong industrialization experienced by countries in Asia such as China, or in Latin America, such as Brazil or Mexico.
Migration movements
Industrialization increases employment opportunities; This in several cases leads to temporary and permanent migratory movements. Globalization Characteristics and its effects
Telecommunications
In the globalized era, there is the intensive use of telecommunications. Both to carry out commercial transactions and to access information quickly, communication technology is essential, which has taken an unthinkable leap since the development of the Internet.
Triple revolution
Experts affirm that globalization entails three revolutions, one technological, one economic, and one sociocultural, the first being the great facilitator of the process.
Positive and negative effects
It is not yet possible to evaluate the effects that a globalized economic system like the one in which we are immersed can have on the environment, culture, politics, and the fulfillment of people as individuals and as social actors.
At the moment, globalization raises great discussions, as some argue that it has done nothing more than promoting the exploitation of the inhabitants of the poorest countries, producing few benefits and major changes in their way of life and socio-cultural patterns.
Others, on the other hand, consider that hand in hand with the globalized economy, employment has grown and poverty has fallen in densely populated countries with very precarious traditional economies, including Vietnam, China, and India. Globalization Characteristics and its effects
