Globalizatio

What is globalization?
Globalizationisatermusedtodescribethe
changesinsocietiesandtheworldeconomy
thataretheresultofdramaticallyincreased
tradeandculturalexchange.Inspecifically
economiccontexts,itrefersalmostexclusively
totheeffectsoftrade,particularlytrade
liberalizationor"freetrade".

It is a common belief that globalization

playsarolejustatinternationallevelsoftrade
andcommerce,butthefactisthatithasplayed
an important role in making our lives much
more comfortable too. The phones, apparels,
gadgetsoraccessoriesthatweuseinourdayto-day life are be available to us through
globalization. Knowingly or unknowingly, we
are all under the impact of globalization, and
more importantly it has helped in bringing
internationalpeaceandjusticetomankind.

Globalization can
mean:

Theformationofaglobalvillage-closercontact
betweendifferentpartsoftheworld,with
increasingpossibilitiesofpersonalexchange,
mutualunderstandingandfriendshipbetween
"worldcitizens",
Economicglobalization-"freetrade"and
increasingrelationsamongmembersofanindustry
indifferentpartsoftheworld(globalizationofan
industry),withacorrespondingerosion
ofNationalSovereigntyintheeconomicsphere.

Signs of globalization

Increaseininternationaltradeatafasterratethanthegrowthintheworld
economy
Increaseininternationalflowofcapitalincludingforeigndirect
investment
Greatertransborderdataflow,usingsuchtechnologiessuchas
theInternet,communicationsatellitesandtelephones
Greaterinternationalculturalexchange,forexamplethroughtheexport
ofHollywoodandBollywoodmovies.
Somearguethateventerrorismhasundergoneglobalization.Terrorists
nowhaveattackedplacesallovertheworld.
Spreadingofmulticulturalismandbetterindividualaccesstocultural
diversity,withontheotherhand,somereductionindiversity
throughassimilation,hybridization,Westernization,AmericanizationorSi
nosizationofcultures.
Erosionofnationalsovereigntyandnationalbordersthroughinternational
agreementsleadingtoorganizationsliketheWTOandOPEC

Greaterinternationaltravelandtourism
Greaterimmigration,includingillegalimmigration
Developmentofglobaltelecommunicationsinfrastructure
Developmentofaglobalfinancialsystems
Increaseintheshareoftheworldeconomycontrolledby
multinationalcorporations
Increasedroleofinternationalorganizationssuch
asWTO,WIPO,IMFthatdealwithinternational
transactions
Increaseinthenumberofstandardsappliedglobally;
e.g.copyrightlaws

Anti- globalization

Manyanti-globalismactivistsseeglobalization
asthepromotionofaCorporatistagenda,
whichisintentonconstrictingthefreedomsof
individualsinthenameofprofit.Theyalso
claimthatincreasingautonomyandstrengthof
corporateentitiesincreasinglyshapethe
politicalpolicyofnation-states.
globalizationimposescreditbasedeconomics,
resultinginunsustainablegrowthofdebtand
debtcrises.

Pro-globalization (globalism)

Supportersoffreetradepointoutthat
economictheoriessuchascomparative
advantagesuggeststhatfreetradeleadstoa
moreefficientallocationofresources,with
allthoseinvolvedinthetradebenefitting.In
general,theyclaimthatthisleadstolower
prices,moreemploymentandbetter
allocationofresources.

Globalization in the Philippines

Thecountryistakingpartintheprocessof
globalizationeversincethecountrysigned
agreementswithWorldTradeOrganization
in1995.
Now,globalizationisveryeffectiveinthe
Philippines,ithasallowedmajorchangesin
thenationlikemorelabor,andmore
Filipinoandforeigncompanieshasemerged
inthenationinordertohelpthecountrys
developingeconomy.

GlobalizationcanmakethePhilippinesintoabetternation
ifthePhilippineleaderstomaketheireconomymore
advancethroughglobaltradingandallowingmoreforeign
investorstothehelpboosttheeconomy.Andby
accomplishingthosegoals,thePhilippinesshouldbeable
toreducethepovertylevelaswellasincreaselaborforce
forjobopportunitiesforthosethatareinneedforaliving.
However,sincethepovertylevelisstillincreasing,most
Filipinoshasmanagedtofindworkoverseasandthey
havemanagedtoseekbetterlivingthaninthePhilippines.
ThemosteffectivefactorinthePhilippinesiseducation.
Thesocietysmentalityistobeeducatedanditswith
educationthatpeopleinthenationseetheiropportunity
forabetterlifeinthefuture.

Advantages

PeacefulRelations
Mostofthecountrieshaveresortedtotraderelations
witheachotherinordertoboosttheireconomy,
leavingbehindanybitterpastexperiencesifany.
Employment
Consideredasoneofthemostcrucialadvantages,
globalizationhasledtothegenerationofnumerous
employmentopportunities.Companiesaremoving
towardsthedevelopingcountriestoacquirelabor
force.

Education
Averycriticaladvantagethathasaidedthepopulation
isthespreadofeducation.Withnumerouseducational
institutionsaroundtheglobe,onecanmoveoutfrom
thehomecountryforbetteropportunitieselsewhere.
ProductQuality
Theproductqualityhasbeenenhancedsoastoretain
thecustomers.Todaythecustomersmaycompromise
withthepricerangebutnotwiththequalityofthe
product.Loworpoorqualitycanadverselyaffect
consumersatisfaction.

CheaperPrices
Globalizationhasbroughtinfiercecompetitionin
themarkets.
Communication
Everysingleinformationiseasilyaccessiblefrom
almosteverycorneroftheworld.Circulationof
informationisnolongeratedioustask,andcan
happeninseconds.TheInternethassignificantly
affectedtheglobaleconomy,therebyproviding
directaccesstoinformationandproducts.

Transportation
Consideredasthewheelofeverybusinessorganization,
connectivitytovariouspartsoftheworldisnomorea
seriousproblem.Todaywithvariousmodesof
transportationavailable,onecanconvenientlydeliverthe
productstoacustomerlocatedatanypartoftheworld.
GDPIncrease
GrossDomesticProduct,commonlyknownasGDP,is
themoneyvalueofthefinalgoodsandservices
producedwithinthedomesticterritoryofthecountry
duringanaccountingyear.

FreeTrade
Freetradeisapolicyinwhichacountrydoes
notlevytaxes,duties,subsidiesorquotaon
theimport/exportofgoodsorservicesfrom
othercountries.Therearecountrieswhich
haveresolvedtofreetradeinspecific
regions.Thisallowsconsumerstobuygoods
andservices,comparativelyatalowercost.

TravelandTourism
Globalizationhaspromotedtourismtogreatheights.
Internationaltradeamongdifferentcountriesalso
helpsinincreasingthenumberoftouriststhatvisit
differentplacesaroundtheworld.
ExternalBorrowing
Withthehelpofglobalization,thereisopportunityfor
corporate,national,andsub-nationalborrowerstohave
betteraccesstoexternalfinance,withfacilitiessuchas
externalcommercialborrowingandsyndicatedloans.

Disadvantages

HealthIssues
Globalizationhasgivenrisetomorehealthrisks
andpresentsnewthreatsandchallengesfor
epidemics.
thedawnofHIV/AIDS.Havingitsorigininthe
wildernessofAfrica,thevirushasspreadlike
wildfirethroughouttheglobeinnotime.
Fooditemsarealsotransportedtovarious
countries,andthisisamatterofconcern,
especiallyincaseofperishableitems.

LossofCulture
Withlargenumberofpeoplemovingintoandoutofa
country,theculturetakesabackseat.Peoplemay
adapttothecultureoftheresidentcountry.Theytend
tofollowtheforeignculturemore,forgettingtheir
ownroots.Thiscangiverisetoculturalconflicts.
UnevenWealthDistribution
Itissaidthatthericharegettingricherwhilethepoor
aregettingpoorer.Intherealsense,globalizationhas
notbeenabletoreducepoverty.

EnvironmentDegradation
Theindustrialrevolutionhaschangedtheoutlookofthe
economy.Industriesareusingnaturalresourcesbymeans
ofmining,drilling,etc.whichputsaburdenonthe
environment.
Disparity
Thoughglobalizationhasopenednewavenueslikewider
marketsandemployment,therestillexistsadisparityin
thedevelopmentoftheeconomies.Structural
unemploymentowestothedisparitycreated.Developed
countriesaremovingtheirfactoriestoforeigncountries
wherelaborischeaplyavailable.

Conflicts
Ithasgivenrisetoterrorismandotherformsof
violence.Suchactsnotonlycauselossofhumanlife
butalsohugeeconomiclosses.
Cut-throatCompetition
Openingthedoorsofinternationaltradehasgiven
birthtointensecompetition.Thishasaffectedthe
localmarketsdramatically.Thelocalplayersthereby
sufferhugelossesastheylackthepotentialto
advertiseorexporttheirproductsonalargescale.
Thereforethedomesticmarketsshrink.