Globalization
Globalization is not new, though. For thousands of years, people--and, later, corporations--have been buying from and selling to each other in lands at great distances, such as through the famed Silk Road. Likewise, for centuries, people and corporations have invested in enterprises in other countries. In fact, many of the features of the current wave of globalization are similar to those prevailing before the outbreak of the First World War in 1914.
Modern Globalization began after the end of World War II. This was largely the result of planning by economists and business houses, who recognized the disadvantages associated with protectionism. This led to the Bretton Woods conference and founding of several international institutions such as World Bank and International Monetary Fund.
Globalization is based on the following principles -
Promotion of free trade:
Reduction or elimination of tariffs; creation of free trade zones with small or no tariffs
Reduced transportation costs, especially resulting from development of containerization for ocean shipping.
Reduction or elimination of capital controls
Reduction, elimination, or harmonization of subsidies for local businesses
Restriction of free trade:
Harmonization of intellectual property laws across the majority of states, with more restrictions.
Recognition of intellectual property restrictions (e.g. patents granted by China would be recognized in the United States)
While it is easy to look at the positive aspects of Globalization and the great benefits it has had on Industrial and Financial sectors, Globalization is deeply controversial. Proponents of globalization argue that it allows poor countries and their citizens to develop economically and raise their standards of living, while opponents of globalization say that the creation of an international free market has benefited multinational corporations in the Western world at the expense of local enterprises, local cultures, and common people. Resistance to globalization has therefore taken shape as people and governments try to manage the flow of capital, labor, goods, and ideas that constitute modern globalization.
To find the right balance between benefits and costs associated with globalization, citizens of all nations should understand how globalization works and the policy choices facing them and their societies.
As a matter of fact we all should try to be global citizens and help each other to become global by use of technology to increase cross-border trade, investment and migration.
Posted by Kirti Lokurkar
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