Globalisation can be described as the flow of ideas, commodities, capital and people from one nation to another. It is an important concept since it impacts the world in many ways – political, economic and social. This article explores the broader meaning of globalisation and how it might affect us in the future. Even in a country like India, which has traditionally been isolated, there is no escaping the effects of globalisation: Yoga, Ayurveda, and Bollywood are some examples of the Indian culture that has found global acceptance over the years. Nevertheless, we are yet to see what the future holds for us.
Objective of Globalisation
Globalisation is a general term for the increasingly global nature of business, economics and politics. The number of multinational corporations has risen sharply in recent decades, and the world’s economy has become increasingly interdependent. Developments in transportation, communications and information technology have enabled closer integration between countries on every continent, though there are still many barriers to the free flow of people, services, money and goods around the globe.
The theory of economic globalisation is that the global economy can be viewed as a gigantic marketplace. Just like a local marketplace, every country will have some resources or products which it can offer at a lower cost than other countries can. Countries may decide to import goods, technologies and even human labour from other countries that are offering these things at a lower price. The possibility of these labour imports is the most controversial part of this theory. In addition to these, there are also rules that govern the movement of capital between countries, which are formulated by organisations such as the World Trade Organisation.
Impact of globalisation
Globalisation is a concept with many faces. Many have an idea of globalisation, but each will have a different interpretation of what it is. One form of globalisation may be that of the economy in a community, while another may be that of cultures melding together, forming one ‘super’ culture. Their impact on us personally will also vary depending on location, culture, and the part of the world you live in.
The impact of globalisation has been heavily debated. Proponents argue that globalisation increases the standard of living in developing countries by increasing efficiency through specialisation in production and offering access to new markets for less-developed countries. Critics argue that globalisation produces inequality within nations, causes environmental damage; increases cultural homogenisation; undermines local labour markets; puts pressure on local farms that cannot compete with larger farms that benefit from subsidies in wealthy nations, etc.
It is argued that one of the most important effects of globalization is the movement of labour. As a result of this movement, many Western countries are beginning to experience a significant increase in social conflicts dealing with racism and discrimination. With globalisation, more people now move from emerging countries to rich countries to live, work and seek higher living standards than they could at home.
Causes of globalisation
Globalisation is not caused by any one factor but by a complex combination of many factors. Technology remains an important element of globalisation. The use of computers, the internet, and smartphones allows for greater communication between people worldwide. Over the last one hundred years alone, technological innovations like the telegraph, radio, telephone, television, the internet and smartphones have been introduced. These inventions allowed for greater communication and fostered global connections among people.
Globalisation is not new. It has been in force for thousands of years. However, our world has recently become more globalised than ever before. While any single factor does not cause globalisation, technology remains critical.
Factors contributing to globalisation
- The development of financial markets around the world, such as stock markets and money markets, has allowed individuals and corporations to manage their risk exposure and, at the same time, permit investors to diversify their portfolios by investing across borders.
- A second factor is a decline in political barriers and increased political cooperation among countries. A case in point is the emergence of international organisations such as the United Nations (UN), the World Trade Organisation (WTO) and the International Monetary Fund (IMF). These international organisations play an important role in providing a forum for improving bilateral relationships between countries and promoting peace and stability in the world.
Globalisation is an essential force in the modern world because of its far-reaching effects on virtually every aspect of our lives. The companies we work for, the way we shop, and the languages we speak are all influenced by globalisation. It’s so powerful that we often take it for granted. Globalisation is a big thing, and it will not stop exploiting the power of modern technologies. So, what do we expect from globalisation in the future? It will be a lot more than we can expect.