In this article, we will discuss the definition of globalization, and its types, and provide some examples. The term “What is globalization” is a common question asked in various exams. If you want to know more about globalization, you can read this article.
What is globalization called?
- Vaishvikaran is the Hindi translation of the English word "globalization," which is also known as "bhoomandlikaran" in Hindi.
- The term "globalization" was first discussed in the book "Jannwires" by a famous author.
- "globalization" (1998) is a book written by sociologist Malcolm Waters.
- The word "Vaishvikaran" is derived from two words: "Vishwa" meaning the Earth with its various countries and "Ekta" meaning coming together in mutual cooperation to help each other.
- globalization refers to the process of unrestricted exchange of goods, services, ideologies, capital, intellectual property, or principles with every other country in the world.
Advantages or Importance of Globalization
Globalization is a global concept that benefits not only India but the entire world. The advantages or importance of globalization are as follows:
Introduction of new technologies: globalization leads to an increase in foreign investments and the introduction of new technologies, which improves labor productivity and product quality.
Improved standard of living: globalization leads to an improvement in the standard of living as consumers get access to high-quality products at affordable prices.
Foreign investments: Developed nations invest their surplus capital in developing and emerging countries. This influx of foreign investments has been significant in these countries.
Opportunities for employment abroad: globalization creates opportunities for people to seek employment in other countries.
Growth in foreign trade: globalization reduces unnecessary trade barriers and promotes growth in foreign trade.
Enhanced international cooperation: Implementation of globalization leads to economic and political improvements in international relations. Today, India's relations with countries like the United States, Germany, and other European nations have improved due to globalization.
Rapid economic development: globalization promotes the exchange of technical knowledge among nations and foreign capital inflow increases. This leads to rapid economic development.
Healthy industrial development: globalization removes various governmental and international barriers in the industrial sector and enables domestic industries to compete globally. It also motivates sick and loss-making units to improve their performance.
Increase in foreign exchange reserves: With increased exports and decreased import restrictions, foreign exchange reserves grow, resolving balance of payment issues.
Improved productivity: Domestic industries enhance their productivity and quality to compete in the international market due to global competition. In India, industries such as electronics, automobiles, and textiles have witnessed significant improvements in this regard.
Effects of globalization
Positive effects of globalization
- Availability of modern technology for the state: States have access to modern technology, allowing them to gather information about their citizens.
- Governance through information: States can govern more effectively by utilizing the available information.
- Enhanced administrative capacity: The implementation of globalization has resulted in an increase in administrative capacity.
Negative effects of globalization
- The idea of a welfare state has been replaced by a minimalist state, with limited functions such as law and order and neglecting social justice.
- States have reduced their decision-making capacity due to globalization.
Economic effects of globalization
Positive effects of globalization
- Increased trade of goods.
- Reduced import barriers.
- Increased capital flow, as investors can invest in any country and earn profits.
- Increased employment opportunities due to foreign investments, resulting in economic benefits for countries and reduced unemployment rates.
- Every country gets a chance to showcase its best performance due to the increasing rate of global trade.
Negative effects of globalization
- Governments are stepping back from certain responsibilities, and attention to social welfare activities has decreased, affecting the situation of dependent individuals.
- Social security coverage (providing education, healthcare, jobs, etc., to economically weaker individuals by the government) should be provided to mitigate the negative effects of globalization.
- Some economists refer to it as "recolonization."
- To safeguard their national boundaries, developed countries have imposed stringent visa policies to protect their citizens from losing jobs to foreign workers.
Cultural effects of globalization
Positive effects of globalization
- Increased options for food, beverages, and clothing.
- Promotion of cultural diversity (incorporating the good aspects of various cultures into one's own culture), leading to the uniqueness of each culture.
- Expanded range of preferences and dislikes.
Negative effects of globalization
- Negative impact on the authenticity of cultures.
- The cultures of developed nations are influencing less-developed nations.
- Westernization through cultural uniformity.
- Powerful cultures are pushing smaller cultures toward extinction. In India, Valentine's Day is becoming more important than Basant Panchami (a traditional festival).
- Homogenization of cultures - The spread of Western culture globally.
- McDonaldization - Western culture dominates other cultures.
Conclusion
In this article, we have discussed what globalization is, the advantages or importance of globalization, its economic effects, cultural effects, and the impact of globalization on society. We hope you found this information helpful in enhancing your knowledge.
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