Essay Globalization

Zhe Xu

GRAD VI/A

Jan 25, 2011

Globalization

Globalization is a process that integrates diverse economies, cultures and societies through connection. It was first mentioned in 1951. Merriam-Webster’s dictionary defines “globalization” as “the act or process of globalizing; especially the development of an increasingly integrated global economy marked by free trade, free flow of capital, and the tapping of cheaper foreign labor markets”. Therefore, it is usually used today to evaluate the extent of national economies, including goods, service, capital and technology.

According to Ball (2006), the most natural definition for this term is a rise in international trade. International trade refers to exchange of goods, service and capital from different countries, which represents as an important share of GDP and becomes a significant standard for globalization. However, the terms internationalization, which indicates the importance of international trade, and globalization are often used in a similar way but the difference occurred.

Economic globalization compasses the fields of production, markets, technology and competition. Though it was named several decades ago, globalization has occurred for hundred years. With the development of technology, the dramatic increase rate is during the recent 20 years. Globalization brings many positive social effects. One issue is that globalization reduces inequality between different nations, especially affecting developing countries. Such countries gain more benefits because their resources can be assigned to use effectively (Michael, 2003). “Economic liberalization” is due to the globalization. As Bhagwati (2005) states, in developing countries, educated workers can compete on the global job market for high salaries; production workers are not only able to compete, but also have an apparent advantage in contrast to their peers in developed countries because they produce more and require less. Workers have opportunity to...