Globalization: Economic, Social, and Technological Impacts

This report provides an overview of globalization, defining it as the growing interdependence of countries through trade, technology, and culture. It traces the historical development of globalization, highlighting key periods like the post-World War II era and the rise of multinational corporations. The report delves into the features of globalization, such as large-scale production, increased competition, and technological advancements. It explores the relationship between globalization and international trade, emphasizing the ease of market access and the integration of global markets. Furthermore, it examines the impact of globalization on financial markets, technological development, and the benefits and drawbacks of globalization. The report concludes by acknowledging the positive aspects of globalization, such as increased opportunities, while also considering the challenges it presents, such as inequality and cultural impacts, particularly in developing countries. References are provided at the end of the report.

Globalization
-
A Critical Approach

DEFINITION
• The process of growing interdependency and influence on international
scale by a business or any other organization. (Hoffmann and Kumar
2013. )
• The interdependence includes the integration and interaction among the
world’s trade, culture, economies, service as well as technologies.
• Results in the spread of products, trade, jobs, informations and
technology.

HISTORICAL DEVELOPMENT
• Began when Africans started to move out from their domain to the world.
• In Europe it started in the form of trade and commerce through sea
voyages during the time of Renaissance.
• After the World War 1 there was a collapse in globalization due to the
confrontation in the European dominated networks
• Post second world war era saw a resurgence in Globalization.
• the expanse of MNCs and the active part of USA contributed to the
worldwide expanse of technology and knowledge. (Mackinlay, 2013.)

FEATURES OF
GLOBALISATION
 Production can be done in large scale
 the economies of countries are
interlinked
 increase in competition.
 transfer of technologies as well as
capitals.
 Dissemination of technology and
knowledge.

RELATIONSHIP WITH
INTERNATIONAL TRADE
 Made international trade easy for
companies since knowledge about
international market can be easily
accessible as a result of globalization.
 companies have the opportunity of
expanse and profit
 integration of global market
 Trade relation between companies are
affected by political relation between
the countries.

FINANCIAL MARKET AND
GLOBALISATION
 The capital base of banks are
strengthened by the issues concerning
public equity
 Inflation
 Financial development of developing
countries as a result of outsourcing
 flow of cash resulted in large profits or
reduction of losses.

TECHNOLOGICAL IMPACT
 Flow of knowledge helps in
development of technologies
 technological advancements reduced
the cost of transportation
 Accelerated digital shopping
 Virtual platforms and improved AI helps
any company to have success.

GLOBALISATION
GOOD
1. More profit
2. Productivity is
increased
3. increase in the flow of
foreign capital
4. Cost of production is
decreased
BAD
1. National firms are
taken over.
2. Brings instability and
uncertainty
3. Affects the local and
small industries
negatively
4. Cultural Impact.

Conclusion
• Has been influential in the growth of product
and the standard of living
• Though it has some negative impacts, the
positive sides are more like flow of ideas,
integration of culture, employment
opportunities, global exposure
• However, need to look at the corruption, rural
poverty etc in the developing countries.

REFERENCE LIST
 Potrafke, N., 2015. The evidence on
globalisation. The World Economy,
38(3), pp.509-552.
 Hoffmann, J. and Kumar, S., 2013.
Globalisation–the maritime nexus. In
The handbook of maritime economics
and business (pp. 65-94). Informa Law
from Routledge.
 Mackinlay, J., 2013. Globalisation and
insurgency. Routledge.