Globalization is a process through which different parts of the world become more connected. In a globalized world, people, goods and information move more easily across national borders. Globalization definition
As displacements become faster, with the advancement of transport, the distances between the most diverse points of the globe seem to get smaller and smaller, resulting in a kind of shared territory.
From an economic point of view, globalization has to do with the integration of markets in a world where there are few barriers to trade and investment.
From a cultural point of view, globalization is a process that promotes the circulation of ideas, customs, values, spreading cultural goods across borders between countries . The advancement of information technologies and the popularization of internet access greatly favor this integration process. Globalization definition
Some positive aspects of globalization are:
- Offers an advantage to companies in international competition;
- It favors investment;
- It favors entrepreneurs who want to export;
- Reduces the price of some products, due to the large amount of competition;
- Increases the quantity of goods available to the consumer;
- Provides access to products that are not locally produced;
- Enables cooperation between countries;
- Favors engagement in social causes;
- It favors cultural exchange between countries.
In contrast, there are some negative points of globalization , such as: Globalization definition
- It does not guarantee benefits to developing countries;
- It maintains or deepens international inequality;
- Increase in the concentration of wealth;
- It generates unemployment in the manufacturing sector in developed countries;
- Increases exploitation of workers in developing countries;
- Globalization allows the free flow of capital, but not of people;
- Increases pollution;
- It promotes cultural homogenization.
Positives of globalization
It offers advantages to companies in the international competition . Globalization makes it possible for companies to seek cheaper raw materials and labor elsewhere, lowering production costs. Globalization definition
It favors investment . For example: a company decides to install a factory outside its country. This will stimulate the economy and generate jobs in the country that will receive this investment.
It favors entrepreneurs who want to export. Companies can earn more. In Brazil, for example, agribusiness is the sector that exports the most. With the devaluation of the real, these transactions tend to be more advantageous.
Lowers product prices . And that benefits consumers. As production costs tend to be lower, companies sell their products at lower prices. Globalization definition
Increases the quantity of goods available to the consumer . In the past, the number of brands and products was much smaller. Nowadays, there is a much larger and more diversified offer of imported products at more affordable prices.
It gives access to products that are not produced locally . For example, in cold countries, you can find tropical products for sale, such as certain types of fruits and vegetables. This means that producers in exporting countries are also managing to sell more.
It favors engagement in social causes . By integrating the world, globalization facilitates engagement with groups concerned with global issues such as climate change and immigration. Today it is much easier to join NGOs and sign petitions. Globalization definition
It favors cultural exchange between countries . It is easier to learn about and adopt practices and habits from other cultures. By “shortening” distances, globalization makes countries that are thousands of kilometers apart seem much closer.
Negative points of globalization
It does not guarantee benefits to developing countries . Neither the countries nor their workers, who are often poorly paid and work in precarious conditions. Overall, profits are returned to host countries.
Maintains or deepens international inequality . This is due to the fact that developing countries become experts in providing cheap raw materials and labor.
Increase in the concentration of wealth . Experience shows that a liberalized world, with greater capital movements and trade flows, has exacerbated the problem of inequality, causing the gap between rich and poor to widen. Today, the richest 1% hold nearly twice the wealth of nearly 7 billion people.
It causes unemployment in manufacturing in developed countries . This is due to the fact that companies choose to open factories in countries where production conditions are more favorable. Globalization definition
Increases exploitation of workers in developing countries. Some transnational companies decide to open factories in developing countries to benefit from low labor regulation. Example: fashion brands hire clothing factories in countries like Bangladesh, where workers earn very little (the minimum wage is 350 reais) and working conditions are precarious.
Globalization allows the free flow of capital, not people . This is one of the biggest contradictions in the liberalization process. On the one hand, entrepreneurs are free to profit by investing in other countries. On the other hand, families are stopped in various parts of the world when they want to cross borders in search of better living conditions. This is the case, for example, of the migration crisis in Europe and the Mexico-US migration crisis.
Pollution increases . Transnational companies decide to send factories to countries where environmental rules are lax or not enforced, allowing them to spend less on emission control equipment. Globalization definition
Promotes cultural homogenization . This occurs through the erasure of local customs and the imposition of dominant cultural items – a process known as acculturation. Critics of globalization accuse it of imposing the Western style on the world, more specifically the North American style (Americanization).