Globalization

GLOBALIZATION

Falco Rosa, Cerchia Elena, Pianese Francesco, Russo Pierluigi, Ciccarelli Renato 2023/2024

Index

01. Introduction

02. The various types of globalization

03. Quote

04. Advantages

05. Disadvantages

06. Conclusion

07. Thanks

What is globalization?

The word 'globalization' comes from 'globe', that is 'world'. We use this term to indicate the close link that connects all areas of our planet from an economic, cultural, political, social and consumer point of view. Today, in fact, in the world, physical and cultural distances have been reduced, and everything moves easily and quickly from one end of the Earth to the other.

02

The various types of globalization

Globalization of people

With super-fast planes and trains we can reach very distant locations in a short time. In fact, travel times have been greatly shortened.

Globalization of things

Many everyday items come from distant places: our clothes, computers and cell phones are manufactured mostly in Asia; the food we eat is poduced in European countries or other continents; the music we listen to is often American or English.

Economic globalization

The phenomenon of globalization is mainly linked to the economy. In every economic market, goods are produced, which are sold and purchased in a certain geographical area. With globalization, the market has become planetary, that is, it has occupied the entire surface of the globe. This process began towards the end of the twentieth century. At first it only involved developed countries, but later extended to emerging countries such as India and China. In particular, the characteristics of the global market relate to two aspects: goods and companies.

Globalization of information

With the Internet we can know in real time what is happening in every corner of the world, and we can easily dialogue with people who live very far away from us. All this happens thanks to technological and computer innovations, which have transformed the world into a "global village": the Earth, which has a very large surface area, actually seems as small as a village, because everything is connected and moves quickly.

"Even if I knew that tomorrow the world would go to pieces, I would still plant my apple tree"

Mater Luther King

"Earth provides enough to satisfy every man's needs, but not every man's greed"

Mahatma Gandi

04

Advantages of globalization

1. Access to new cultures

Globalization makes it easier than ever to access foreign cultures, including food, movies, music, and art. This free flow of people, goods, art, and information is the reason you can have Thai food delivered to your apartment as you listen to your favorite U.K.-based artist or stream a Bollywood movie.

2. The spread of technology and innovation

Many countries around the world remain constantly connected, so knowledge and technological advances travel quickly. Because knowledge also transfers so fast, this means that scientific advances made in Asia can be at work in the United States in a matter of days.

3. Lower costs for products

Globalization allows companies to find lower-cost ways to produce their products. It also increases global competition, which drives prices down and creates a larger variety of choices for consumers. Lowered costs help people in both developing and already-developed countries live better on less money.

4. Higher standards of living across the globe

Developing nations experience an improved standard of living-thanks to globalization. According to the World Bank, extreme poverty decreased by 35% since 1990. The target of the first Millennium Development Goal was to cut the 1990 poverty rate in half by 2015. This was achieved five years ahead of schedule in 2010. Across the globe, nearly 1.1 billion people have moved out of extreme poverty since that time.

5. Access to new markets

Businesses gain a great deal from globalization, including new customers and diverse revenue streams. Companies interested in these benefits look for flexible and innovative ways to grow their business overseas. A global employer of record (EOR) makes it easier than ever to employ workers in other countries quickly and compliantly. This means that, for many companies, there is no longer the need to establish a foreign entity to expand overseas.

6. Access to new talent

In addition to new markets, globalization allows companies to find new, specialised talent that is not available in their current market. For example, globalization gives companies the opportunity to explore tech talent in booming markets such as Berlin or Stockholm rather than Silicon Valley.

05

Disadvantages of globalization

1. Exploitation

International companies, upon entering a new market, acquire labor and resources. Strong, industrialised countries often sign agreements with developing countries to use their resources uncontrollably. Also, one-sided interest can spark disruption of the environmental cycle in developing countries.

2. Tread Imbalance

When a country cannot establish a balance between its imports and exports, it can have a trade deficit. A country may go bankrupt if it imports more than it exports. This creates a shortfall of funds, which in the end leads to taking out loans. Such trade-deficient countries then make compromising deals with foreign investors in exchange for their assets.

3. Job Displacement

After the intervention of international companies, skilled labor tends to move into those companies. By leaving the country, a vacuum is created, which is also known as the brain drain of a country. This indirectly causes a loss of the country’s strengths. For example, the United States Trade deficit eliminated 3 million jobs in 2001.

4. Competition

Free trade increases a country’s wealth, but it also creates tough competition for local businesses. Consumer purchasing behaviour changes, which in turn creates great competition for local competitors.

5. Global Recession

Being a part of globalization, countries can also be affected by global crises. The dependence on resources, transportation, labor, and several other local or international factors can turn the economic situation around.

The world cannot abandon globalization. Despite the challenges, companies give priority to learning a new culture and language, hiring local staff, and investing in their target country. By taking these steps, companies earn a gigantic profit after managing all the risks. International organizations play an important role in globalization. There are many advantages to globalization. Still, it comes with consequences too. The internet turned the world into a global village. So globalization cannot be stopped. It’s better to adapt and survive in this new world.

THANKS!

Thanks for your attention!