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Term Paper: Globalization – Definition & Types | Processes | Economics

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After reading this term paper you will learn about:- 1. Definition of Globalization 2. Phases of Globalization 3. Types  4. Measurement 5. Factors 6. Effects 7. Advantages 8. Disadvantages.

Term Paper on Globalization


Term Paper Contents:

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  1. Term Paper on the Definition of Globalization
  2. Term Paper on the Phases of Globalization
  3. Term Paper on the Types of Globalization
  4. Term Paper on the Measurement of Globalization
  5. Term Paper on the Factors affecting Globalization
  6. Term Paper on the Effects of Globalization
  7. Term Paper on the Advantages of Globalization
  8. Term Paper on the Disadvantages of Globalization


1. Term Paper on Globalization (Definition):

Globalization is the process of organizing the whole world into a single integrated marketing unit. It is also defined as the process of trans border free flow of products, services, people, culture, technology, and finance.

It leads to the integration of economic, cultural, political, and social systems across national borders Globalization is also referred to as internationalization by some persons. Both these terms are used as synonyms. However, some people use these terms separately.

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With various globalization such as phases of globalization, types (kinds) of globalization, global connectivity, measurement of globalization, factors affecting globalization, advantages of globalization and disadvantages of globalization.


2. Term Paper on Globalization (Phases):

Globalization is not a new phenomenon. It started with human civilization.

In the past 130 years, modern historians have identified three stages or phases of globalization, viz.:

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(i) First phase,

(ii) Second phase, and

(iii) Third phase.

i. First Phase of Globalization:

This phase of globalization started from 1870 and ended in 1913 with outbreak of the First World War.

The main features of first phase are given below:

(i) There was marked mobility of capital.

(ii) The labour mobility was high.

(iii) The magnitude of free trade was limited.

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(iv) The global institutions were non-existent.

(v) The National Institutions were heterogeneous and were not well organized.

The First World War had adverse effects on the process of globalization i.e. flow of products, services, labour, and technology across the countries. It started resuming since 1930 gain and got setback from 1940 to 1944 due to Second World War.

ii. Second Phase of Globalization:

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The second phase of globalization started from 1945 and culminated in 1973.

The main features of this phase are given below:

(i) The mobility of capital was low than first phase.

(ii) The labour mobility was low.

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(iii) The magnitude of free trade was low.

(iv) The global Institutions were getting created during this period.

(v) The National Institutions were heterogeneous and were not standardizes.

iii. Third Phase of Globalization:

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The third phase of globalization started from 1974 and is still in progress. It is also known as the current phase of globalization.

Main features of this phase are given below:

(i) The mobility of the capital is high.

(ii) The labour mobility is low.

(iii) The magnitude of free trade is extreme.

(iv) The International Institutes started functioning.

(v) The National Institutions have been standardized.

(vi) The on line global transactions are possible.

(vii) Information technology is being used extensively.


3. Term Paper on Globalization (Types):

There are five main types of globalization, viz.:

i. Economic Globalization:

It refers to trans-country flow of capital/finance or money.

Main effects of economic globalization are:

(a) Enhancement in world-wide economic relationships.

(b) Increase in international trade at a faster rate than the growth in the world economy..

(c) Increase in international flow of capital including foreign direct investment.

(d) Creation, of international agreements leading to organizations like the WTO and OPEC.

(e) Development of global financial systems.

(f) Increased role of international organizations such as WTO, WIPO, and IMF that deal with international transactions.

(g) Increase of economic practices like outsourcing, by multinational corporations.

ii. Production Globalization:

It refers to trans-country flow of goods or products. It leads to transnational production of various goods or products. In such system, a product can be manufactured in several countries of the world with same quality.

iii. Cultural Globalization:

It refers to trans-country flow of culture.

The main effects of cultural globalization are:

(a) Greater international cultural exchange,

(b) Spreading of multiculturalism, and better individual access to cultural diversity,

(c) Greater international travel and tourism,

(d) Greater immigration, including illegal immigration

(e) Spread of local foods such as pizza and Indian food to other countries

(f) Development of a global telecommunications infrastructure and greater trans-border data flow, using such technologies as the Internet, communication satellites and telephones.

(g) Increase in the number of standards applied globally; e.g. copyright laws and patents.

(h) Formation or development of a set of universal values.

(i) Spread of local goods, dresses and language to other countries.

iv. Information Globalization:

It refers to trans-border flow of knowledge, ideas and information. It is also known as communication globalization or technological globalization. It makes use of information technology and permits on line global transactions.

v. Ecological Globalization:

It refers to global protection of ecosystem from degradation and pollution.

Main features of ecological globalization are given below:

(a) It prevents ecosystem from various types of risks.

(b) It requires global collective action.

(c) It is also known as ecosystem globalization or environmental globalization.

(d) It leads to protection of environment globalization.


4. Term Paper on Globalization (Measurement):

The rate or extent of globalization is measured on yearly basis.

Different types of globalizations are measured separately as follows:

i. Economic Globalization:

The data transfer border flow of capital or finance or money and direct foreign investment.

ii. Production Globalization:

The data of trans country mobility of goods and products.

iii. Cultural Globalization:

The mobility of tourist, travellers, and traders across the countries.

iv. Information Globalization:

The data of information flow across the borders.

v. Ecological Globalization:

The work done for the protection of global ecosystem.


5. Term Paper on Globalization (Factors):

The rate of globalization is affected by several factors such as:

(i) Global Atmosphere:

The peaceful global atmosphere promotes globalization, whereas the war situation restricts globalization. The globalization was adversely affected during First and Second World war period.

(ii) Natural Calamities:

Natural calamities such as earth quake, tornadoes, floods and disease epidemic have adverse effects on the rate of globalization.

(iii) International Relationships:

Harmonious relationships among countries enhance the rate of globalization, whereas disharmonious relationships restrict the process of globalization.

(iv) Means of Transportation:

Better means of transportation among countries promotes globalization, whereas poor transportation system restricts the globalization.

(v) Means of Communication:

Better means of communication promotes globalization, whereas poor means of communication restricts the globalization.

(vi) Tourist Places:

Good and large number of tourist places in a country will attract tourists and travelers and vice versa.

(vii) Demand:

The demand of goods, services and information in other countries will enhance the international trade and the globalization.


6. Term Paper on Globalization (Effects):

The globalization has effects on movement of goods, services, information, finance, people, spread of cultures and ideas, markets, export and intellectual properties etc.

These are briefly discussed below:

i. Flow of Goods, Services Information etc.:

There is enhancement in the information flow between geographically remote locations and more trans-border data flow using communication satellites, the Internet, wireless telephones etc.

ii. Markets:

The global common market has a freedom of exchange of goods and capital. The worldwide production and financial markets emerge. The free trade zones are formed having less or no tariffs.

iii. Access to Goods and Finance:

There is a broad access to a range of goods for consumers and companies. Corporate, national and sub-national borrowers have a better access to external finance.

iv. Solution of Global Problems:

Global environmental problems like cross- boundary pollution, over fishing on oceans, climate changes are solved by discussions International criminal courts and international justice movements are launched.

v. Uniform Standards:

The standards applied globally like patents, copyright laws and world trade agreements increase.

vi. Spread of Culture:

Globalization leads to spread of cultures as there is individual access to cultural diversity. This diversity decreases due to hybridization or assimilation. There is enhancement in worldwide fads and pop culture. The cross-cultural contacts grow and cultural diffusion takes place.

vii. Movement of People:

The international travel and tourism increases and immigration between countries increases. The worldwide sporting events like the Olympic Games and the FIFA World Cup are held. The free circulation of people of different nations leads to social benefits.

viii. Export:

The local consumer products are exported to other countries. There is an increase in the desire to use foreign ideas and products, adopt new practices and technologies and be a part of world culture.

ix. Reduction in Transport Cost and Subsidies:

Due to development of containerization for ocean shipping, the transportation costs are reduced. The subsidies for local businesses decrease and there is reduction in capital controls.

x. Recognition of Intellectual Property:

There is supranational recognition of intellectual property restrictions i.e. patents authorized by one country are recognized in another.


7. Term Paper on Globalization (Advantages):

Some important advantages of globalization are listed below:

i. Connectivity:

People around the world are more connected to each other than ever before. Global mass media connects all the people in the world.

ii. Relationships:

The relationships between counties improve and the possibility of war between the developed countries decreases. The interdependence among Nations increases.

iii. Freedom of Trade:

It increases free trade between countries and reduces the international barriers.

iv. Investment Opportunity:

As the liquidity of capital increases, developed countries can invest in developing ones. The flexibility of corporations to operate across borders increases.

v. Integration:

It leads to integration or consolidation of global markets. In other words the markets are interlinked. It is much easier for people to travel, communicate and do business internationally.

vi. Quality and Price:

There is improvement in quality and reduction in price due to competition among different companies.

vii. Flow of Goods and Services:

Information, money, technology and products flow across the border quicker than ever before. Products produced in one part of a country are available to the rest of the world. There is increase flow of communication between the individuals and corporations in the world. The movement of goods and people across the border is faster than ever before.

viii. Standard of Living:

Globalization offers a higher standard of living for people in rich countries and is the only realistic route out of poverty for the world’s poor. It is claimed that globalization increases the economic prosperity and opportunity in the developing world. All the countries involved in the free trade are at a profit. As a result, there are lower prices, more employment and a better standard of life in these developing nations.

ix. Efficient use of Resources:

The civil liberties are enhanced and there is a more efficient use of resources. The environmental protection in developed countries increases.

x. Spread of Culture:

Globalization leads to better cultural understanding and tolerance. Due to improved transport facilities, more and more people are traveling to different countries, thereby spreading their culture to other parts of the world. Reduction of cultural barriers increases the global village effect. There is spread of democratic ideals.


8. Term Paper on Globalization (Disadvantages):

There are some disadvantages of globalization which are listed below:

i. Increase in Population:

Trans country flow of people will lead to increase in the population of certain countries especially in developed countries due to better facilities.

ii. Small Industries:

It will have adverse effects on small scale industries which cannot compete in global market in terms of quality and price, Thus there will be hold of big industries.

iii. Employment:

There will be adverse effect on employment due to close down of small industries.

iv. Monetary Gain:

This will lead to tough competition among companies leading to loss in monetary gain.

v. Terrorism:

Trans border flow of people may lead to increase in criminal activities and terrorism.

vi. Spread of Diseases:

There is greater risk of unintentional transmission of diseases between nations,

vii. This may lead to widening of gap between rich and poor countries.

viii. This may lead to exploitation of workers specially labours.


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