Understanding Globalization

• Globalization is a widely discussed and complicated topic.

Background of Globalization

• Advances in technology, such as mobile phones, aeroplanes, telephones, and the Internet, have facilitated the growth of transport, food, and communication networks.
• These advances enable quicker and less complicated exchange of information and goods between people and countries.
• Globalization originates from "globe," signifying the worldwide coming together of countries and nations.

Example of Globalization

• Companies used to manufacture products solely in their home countries.
• Companies Profile Vie and Super Color, both television producers in country A, were in direct competition.
• Both companies paid the same salaries and production costs, had similar customers and suppliers, and sold televisions at similar prices.
• Technical, cultural, and economic developments through globalization have enabled companies from countries with different production conditions to offer products in country A.
• A company from country B can sell televisions in country A at a lower price due to lower production costs.
• Local firms Super Color and Prophy TV must react to withstand this competition.
• This environment causes the world to grow closer as there's an active exchange of goods between countries, and more affordable products are available to more people.

Effects of Globalization

• Globalization involves the exchange of products, economic goods, services, knowledge, cultural goods, and even languages.
• These elements are closely linked and influence each other.

Disadvantages of Globalization

• Globalization and the intense exchange of goods can negatively impact people and the environment.
• When companies move production to economically disadvantaged countries, people in industrialized countries lose jobs.
• Job opportunities open up for locals in the economically disadvantaged country.
• Many people in these countries work for very little money compared to those in industrialized countries, leading to them remaining poor and often lacking sufficient insurance, social insurance, or health insurance cover.
• Ecological problems, such as climate change, are a further disadvantage.
• The increased use of aeroplanes, ships, and lorries to transport goods internationally causes more carbon dioxide emissions.
• Increasing levels of carbon dioxide into the atmosphere is a primary cause of global warming.
• National environmental standards are sometimes ignored to minimize costs in the worldwide international site competition, making a location more attractive to companies.

Summary

• Globalization affects almost all aspects of life, and the chain of positive and negative effects will likely continue to grow.
• Globalization itself is neither inherently good nor bad.
• The outcome of globalization depends on how people deal with the new possibilities it presents.