Introduction
Globalization is the process of interaction and integration among people, companies, and governments worldwide. It is used to describe the growing interdependence of world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, flow of investment, people, and information. Countries have built economic partnerships to facilitate these movements over many centuries and years. Globalization has accelerated since the 18th century due to advances in transportation and communication technology. The term gained popularity after the Cold War in the early 1990s, precisely after the fall of the Soviet Union, as these cooperative arrangements shaped the modern daily life.
Importance
This increase in global interactions has caused a growth in international trade and the exchange of ideas, beliefs, and culture. The wide-ranging effects of globalization are complex and politically charged. Economically, globalization involves goods, services, data, technology, and the economic resources of capital. Advances in transportation, like the steam locomotion, steamship, jet engine, and container ships, and developments in telecommunication infrastructure, like the telegraph, Internet, and mobile phones, have been major factors in globalization and have generated further interdependence of economic and cultural activities around the globe. Globalizing processes affect and are affected by business and work organization, economics, socio-cultural resources, and the natural environment. Academic literature commonly divides globalization into three major areas: economic globalization, cultural globalization, and political globalization
Negative Effects
Despite its benefits, the economic growth driven by globalization has not been done without awakening criticism. The consequences of globalization are far from homogeneous: income inequalities, disproportional wealth and trades that benefit parties differently. In the end, one of the criticisms is that some actors (countries, companies, individuals) benefit more from the phenomena of globalization, while others are sometimes perceived as the losers of globalization.
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