Types of Globalization
Globalization is no doubt a global phenomenon. It takes place in different types of forms.
Some argue globalization takes place by moving a nation’s economy to the global level, some argue political systems, some social systems, etc. but all these are the forms of globalization.
The major types of globalization take place in five forms. They are:
The shift toward a more linked and interdependent world economy is referred to as economic globalization. A country’s national economy might have an impact on other countries throughout the world. A capital-rich country, for example, might invest in a capital-poor country.
A country with more advanced technologies sells them to countries that don’t have them. Similarly, developing countries’ natural resources are sold to developed countries that require them. As a result, economic globalization refers to the process of developing economic interdependence among nations by transferring economic resources from one to another.
Economic globalization is the result of economic liberalization, deregulation, privatization, transit convenience, and enhanced communication. Free trade, greater foreign direct investment, and the formation and growth of global corporations are all characteristics of this period. It has also been advocated by regional economic groups like SAFTA, BIMSTEC, the EU, and ASEAN, as well as global organizations such as the World Trade Organization.
Economic globalization has two facets, including the globalization of markets and the globalization of production.
- Globalization of Markets: It refers to the merging of historically distinct and separate national markets into one huge global marketplace. The main reason behind the globalization of markets is decreasing barriers to cross-border trade. For example, McDonald, and Starbucks sell their products worldwide. They have created a global market.
- Globalization of Production: It refers to the sourcing of goods and services from locations around the globe to take advantage of the cost and quality of factors of production such as labor, energy, land, and capital. With this, companies can lower their overall cost structure or improve the quality to compete more effectively.
Cultural globalization refers to the integration of the world in terms of values, beliefs, and norms. It results in the development of global culture.
Through cultural globalization, a domestic country’s culture, values, and norms are remembered in global markets. Food habits, dressing, fast foods, outgoing, televisions, etc. of developed countries greatly influence the developing countries.
Popular books and films have international markets. Harry Potter has readers almost all over the world. English and Hindi movies are seen almost in all countries. Western pop music has become popular in developing countries.
Cultural globalization has been facilitated by the information revolution, the spread of satellite communication, telecommunication networks, information technology, and the Internet. The global flow of ideas, knowledge, and values is balancing cultural differences between nations, regions, and individuals.
Political globalization is the process of integrating the world’s political ideologies. It is the process of uniting all political ideologies under a single government. A variety of regional and global organizations, like ASEAN, BIMSTEC, and SAARC, as well as global institutions like the IMF, WTO, and UN, are concerned about democracy and human rights around the world.
The ability to affect future international policies is critical. It has significance for international trade and investment, global warming, societal inequality, and terrorism, among other issues.
One of the best benefits we get from political globalization is peace in terms of no terrorism. It has agenda not to harm any country by flowing social, cultural, and other issues. Violating the international political ideology becomes a threat to the domestic nation.
Environmental globalization refers to the integration of the world in terms of addressing global environmental issues. It aims at addressing global environmental issues such as global warming, ozone layer depletion, loss of biodiversity, acid rain, and global pollution.
It advocates the rational use of natural resources for the sustainable development of the world. Environmental globalization also deals with global environmental laws and policies.
Businesses and industries operating at a global level directly or indirectly affect the surrounding environments where they operate. Such operations undoubtedly produce different chemicals that harm the environment. Today due to globalization, addressing and protecting global environmental issues is not the desire of the countries, industries, and businesses rather it has become a compulsion.
Technological globalization refers to the integration of national technology with the world. Due to this, one country’s technologies are easily available to another country.
Technological globalization has helped to achieve standardized technology. Development of the internet, communication, cloud computing, and smart devices have accelerated the performance of people and businesses and further enhances the standards of people around the world.
Thanks to technological globalization today we get international technologies in the local market. It further accelerated the development of more advanced and updated technologies. As such marketing, business, transportation, supply chains, etc. are now flourished. Transfer of technologies becomes easier and reduced costs because of economic globalization.
All these types of globalization further influence each other such as easy and lower cost of technologies transfer is possible because of economic globalization, and so forth. There are other globalization types such as sociological globalization, geographical globalization, financial globalization, ecological globalization, etc. which are also important to consider.