Globalization

Interaction between people has always been present in our history. The constant migrations over the centuries, although they also generated conflicts, allowed a constant cultural exchange between peoples, sharing languages, customs and techniques. In this article we will describe the characteristics of globalization.

With the emergence of capitalism and its gradual advance, especially in the 20th century, almost all societies became consumer societies, characterized by the mass production of goods and services. To meet the growing consumer demand, the market had to become global.

Globalization is the general integration process experienced by individuals and organizations in all countries, largely enabled by new information technologies. Here we are describing the Globalization Characteristics and its effects.

Globalization takes the form of intense international trade, foreign investment, and a fluid capital market, not without risks. Thanks to globalization, the movement of goods of all kinds outside the borders of each country has multiplied, leading to a huge expansion of markets.

Next, and as a summary, we present the main characteristics of economic and cultural globalization, its advantages and disadvantages.

Globalization in history

The first major event that we could classify as global was the Age of Navigations in the 15th century. The great European nations set out to sea in search of new lands, colonizing America, Oceania, Africa and part of Asia. In this way, Western culture spread across the planet, and trade routes were established.

The 19th century was a period of breakthroughs and discoveries. The expansion of capitalism after the Industrial Revolution , combined with the discovery of electric energy and the use of trains and steamships, made it possible to reduce distances and increase commercial and social relations.

After the Second World War , the first diplomatic agreements appeared in order to prevent new conflicts and bring the countries politically and economically closer. The creation of the United Nations (UN) and the emergence of the first economic blocs helped to bring several countries closer together.

From the 1960s onwards, political and commercial relations became increasingly complex, and the need for commercial expansion increased. The globalization boom was driven by advances in transport technologies, especially air transport, the end of the Soviet socialist bloc (leaving capitalism as the hegemonic economic model) and the arrival of the internet.

What are the main features of the globalization process?

Globalization is not a single, static process. It happens at different levels and intensities according to each country and each season.

In general, globalization has the following  features:

• Constant transformation and development;
• Creation of commercial blocks;
• Social, economic and political integration;
• Increase in the international flow of capital;
• Creation of multinational companies;
• Reduction of barriers (social, political and economic);
• Reduction of distances/reduced travel time;
• Instantaneity in the speed of information;
• Idea of ​​“Global Village” – the world thought of as one big community.

Types of Globalization

The main types of globalization, which end up influencing all others, are:

1-economic globalization

Nowadays, it is possible to drink a Heineken beer, have a snack at McDonald’s or drive a Volkswagen. These products, of Dutch, American and German origin, respectively, are available and can be easily found and purchased in the Brazilian market.

That’s what economic globalization does, it takes you to other countries without you actually being there – or if you prefer, it brings other countries to you. This was only possible thanks to economic blocks and treaties, the emergence of multinationals (the products mentioned, although of foreign origin, are produced here) and advances in communications and transport.

2-globalized information

The emergence of the internet allowed an exchange of ideas and information at a speed never seen before. The news arrives in real time. It is possible to know and follow something that is happening on the other side of the world at the same time as the people who live there.

The internet fits perfectly with the globalized market. Nowadays it is possible to buy a product in China, for example, and have it delivered to your home, with the entire purchase and payment process done over the internet.

3-cultural globalization

Another very important aspect of globalization is culture. The internet itself allows you to take classes in any language, with native teachers, in your own home. The popularization of flights and the reduction of migratory barriers (which, of course, vary from country to country) allows for a large flow of people in different parts of the world.

Characteristics of Globalization

Below are the main Characteristics of Globalization.

Free trade policies

The global integration process is largely supported by the emergence of various free trade agreements with different scopes, such as the FTAA (Free Trade Area of ​​the Americas), the NAFTA (North American Free Trade Agreement), the TLCUEM (Free Trade Agreement of Free Trade between Mexico and the European Union ), MERCOSUR and many others.

Mobilization of goods

Globalization led to a dizzying movement of goods of all kinds outside the borders of each country, that is, to a great expansion of markets. The world trade in goods and services has multiplied by leaps and bounds hand in hand with globalization.

Mobilization of human resources

The internationalization of companies often requires the temporary or permanent transfer of their human resources, which may be required for training functions, fine-tuning, evaluation of new markets, etc.

World financial system

The capital market becomes a decisive factor in the globalized world, in this context international credit institutions such as the World Bank or the International Monetary Fund take on a very important role.

Multinational corporations

With globalization, and for economic-financial reasons, it is common for several companies to come together to form corporations of international scope, which compete (not always as “equals”) with local industries and businesses.

The ability to fund multi-million dollar ad campaigns often exacerbates these gaps.

Industrialization

The globalization process is perhaps the main cause of the strong industrialization experienced by countries in Asia such as China, or in Latin America, such as Brazil or Mexico.

Migration movements

Industrialization increases employment opportunities; This in several cases leads to temporary and permanent migratory movements. Globalization Characteristics and its effects

Telecommunications

In the globalized era, there is the intensive use of telecommunications. Both to carry out commercial transactions and to access information quickly, communication technology is essential, which has taken an unthinkable leap since the development of the Internet.

Triple revolution

Experts affirm that globalization entails three revolutions, one technological, one economic, and one sociocultural, the first being the great facilitator of the process.

Positive and negative effects

It is not yet possible to evaluate the effects that a globalized economic system like the one in which we are immersed can have on the environment, culture, politics, and the fulfillment of people as individuals and as social actors.

At the moment, globalization raises great discussions, as some argue that it has done nothing more than promoting the exploitation of the inhabitants of the poorest countries, producing few benefits and major changes in their way of life and socio-cultural patterns.

Others, on the other hand, consider that hand in hand with the globalized economy, employment has grown and poverty has fallen in densely populated countries with very precarious traditional economies, including Vietnam, China, and India. Globalization Characteristics and its effects