Critical Analysis of Globalization 2022

Running head: CRITICAL ANALYSIS OF GLOBALIZATION
CRITICAL ANALYSIS OF GLOBALIZATION
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CRITICAL ANALYSIS OF GLOBALIZATION
Introduction
Globalization is considered to be cross national flow of products, services and
technology. In other words, it is the complex economic, social, and political and culture
aspects which operates freely without the influence of any geographical boundaries or
national distance. It has been argued that development in the world has various positive and
negative consequences. Globalization integrates the national economies of various countries
into international economy through trade, capital flows, advancement of technology and FDI
(Foreign direct investment). The purpose of this essay is to evaluate the evidence of
Globalization and the factors driving globalization. It analyzes the issues of globalization in
terms of market factors, technology, political factors and technology.
Discussion
Arguments in favours and against globalization
It has been argued by Beck (2018), that globalization has entered into a new phase
through the flow of information and data. The digital flows and advancements have larger
impact on the growth of GDP in the countries than the older ways of trading, according to
new McKinsey Global Institute (MGI) report. The new phase or the shift of globalization has
provided additional opportunities to the companies to enter international markets and make
profits out the new risks and challenges. Globalization connects the world together with the
flow of information, effective communication, transactions and intra-company traffic. In

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CRITICAL ANALYSIS OF GLOBALIZATION
additional to data and information exchange, every cross border exchange has digital
component.
According to Croucher (2018), different individual companies and organizations are
able to show case their talents and abilities and have international connections through social
media and taken part in cross border e-commerce industries. The digital eras of globalization
are able to manage their operations globally through efficient ways with the implementation
of digital platforms and tools. This widens participation and creates new efficient markets
supported with increased productivity and flow of data and information. It has increased the
standard of living among the countries and boosts economic growth. However, it has been
heavily criticized due to its negative effects. According to Lechner and Boli
(2020), Globalization has significant impacts pm environment, political aspects of the
country and the social wellbeing of a particular country. There has been increase in income
inequality, increase in social tensions and lack of class mobility.
Factors driving globalization
According to Lund and Tyson (2018), the current pace of globalization is driven by
number of factors such as economic, financial, political and social and technological factors.
The lower trade barriers among the countries are important factors towards globalization. The
political situations among the countries are also designed in a way which facilitates trade and
commerce. It is believed by Rodrik (2018), that technology plays a key role in facilitating
globalization. It has enables the business organization to globalize their product and services
throughout the globe. The social factors bring cultural convergence by reducing
transportation and communication costs. The cost of communicating has reduced with the
advancement of technology. Most importantly the trade agreements among the countries have
enables the business organization to carry out their business operations in the international