Globalization has had many impacts on the world. It is so deeply ingrained and entwined in people’s lives that both the negatives and positives can get swept under. The permeation is so watertight, in fact, that several hundred blog posts aim to cite the various forms of globalization.
The following enumeration outlines the major categories of globalization:
Now, let’s delve into each type with a meticulous eye for detail.
1. Economic globalization
The process of economic globalization integrates many liberal, conservative and middle-ground economies into one giant market. More interdependent than independent, these markets constantly influence each other.
One illustration of economic globalization is that a bubble, a boom or a bust in the USA can affect people’s work in Europe and Asia. It is also manifested in the fact that stock markets of one country rise or fall at the mere mention of financial news in another country.
Globalization of the economy, precisely means markets have less regulations. With this in place, companies can trade freely and set up infrastructure here.
Examples of this kind of globalization include the shifting of manufacturing to underdeveloped and developing countries. Globalization eroded the barriers to setting up factories or industries in another land. Affordable and skilled labor was gradually exploited by employers.
Yet despite weaker borders, it is still hard for companies to register branches overseas. This is where global employment answers like EOR help smooth the way to expansion.
Benefits of economic globalization
- Enhanced opportunities for workers in developing countries
- Increased per capita consumption
- Access to better-quality products at lower prices
- Rise in income levels
- Expanded options for unskilled workers
2. Social globalization
Social globalization means integrating the societies of the world.
Before globalization, people were very regionalistic. There were different cultures, tribes, clans and petty kingdoms. The influence of a good or bad economy, technology and even pandemics are limited to the societies from which they arise.
A case in point are long-distance relationships and pen-friends. Because of social networks, we now can find kindred spirits anywhere. Globalization is responsible even for the transfusion of ideas, which has ignited alike embers in people from two different hemispheres.
Benefits of social globalization
- Greater exposure to diverse cultures and lifestyles
- Development of varied human resource pools
- Formation of employee unions
- Initiates discussions on various global issues
3. Political globalization
Political globalization means that political relationships among countries have ripples and there is continuity.
Creating international institutions such as the UN, NATO, WTO are other examples of this style of globalization.
International laws and clauses which protect the rights and interests of the smaller nations also come with globalization. Business is the main force behind modern globalization. As a result, the less-powerful countries with rich natural reserves often come up against wicked companies with stakes in the game. Hence, such countries are protected by international organizations.
Benefits of political globalization
- Establishment of a unified society
- Creation of global organizations
- Positive competition among nations for socio-economic advancement
- Collaborative endeavors to address shared issues
- Dissolution of centralized nation-states
4. Technological globalization
Technology has placed globalization on autopilot. Technology transformed business, marketing, talent acquisition, supply chain and data management.
Technology has been both the source and result of globalization. The Internet, cloud computing and high-speed transportation have sped up globalization. But such globalization can be regarded as a by-product. Knowledge transfer occurred more quickly as a result of economic and political globalization. With economic globalization, the cost of acquiring resources to research new technologies came down.
Benefits of technological globalization
- Expansion of technology-driven startups and small businesses
- Global and local adoption of mobile banking
- Automation advancements
- Rising income levels
- Increased prospects for untrained laborers
5. Environmental globalization
After-effects of other types of globalization Environmental globalization is just the side effect.
Globalization’s tide of development has indeed polluted the environment. Globalization allows our per capita consumption to rise. This is hard on the natural resources, which disturbs the ecological cycle.
Globalization does entail industrialization, but it has also thrown a lot of harmful chemicals into the environment; our climate is consequently being poisoned.
To lower carbon emissions, countries around the world have signed climate accords such as the Kyoto Protocol and the Paris Climate Agreement to direct money into this investment.
Challenges with globalization
Cons of economic globalization:
- Job losses in developed markets: Recently economic globalization has created manufacturing hubs all over the world. The result has been to take first world manufacturing jobs to developing nations. In this way a few countries confront an obvious employment vacuum for their unskilled workers.
- More power to businesses to influence governments: Globalization has strengthened the position of companies. They have more capital, so they can affect people. Thus they can change public opinion.
- Increases exploitation of workers: Globalization has indeed created jobs in developing countries, but not without cost. Wages paid to most sweatshops and mines are highly indignant. Africa is a victim of economic globalization.
- Encourage brash consumerism: Manufacturers are under pressure because of rising per capita consumption in developed countries. Globalization has ushered in an era of high income and production. This increased consumer spending, however, has brought about the rise of various markets.
Cons of social globalization:
- Lack of localization: The process of societies and cultures mixing blurs the line between cultures.
- Increased homogenization of cultures: As the world turns into one great city, cultures will lose their differences. In modernization, Hollywood movies already westernize cultures.
- More prone to contagious diseases: The generation would forever remember the bitter experiences caused by the pandemic. But if we forsake caution, it will cost us heavily in future pandemics. Already railroads for pandemics have been laid by social globalization.
Cons of political globalization
- Softening of national boundaries: With political globalization, mobility has become easier. But this has happened to satisfy business interests.
- Politics and business are getting intertwined: In fact, most companies attempt to exert an influence on the political parties in the country. These are not necessarily home-grown businesses. This gives foreign forces the ability to harness the political wind at will.
Cons of technological globalization
- Increased inequality and digital divide: Yet despite the fact that globalization has placed a communications tool literally in everyone’s hands, there are still wide varieties of technological disparities and digital divides. The result has been unequal access to opportunities.
- Job loss for unskilled workers: Globalization is mostly sparing of skilled workers and white-collar jobs. But manual labor always faces the danger of globalization.
- Increase in fake news: Social media has resulted in a flood of lies and propaganda. This Thai phenomenon affects both local audiences and larger, international audiences.
- Increased consumer spending on impulsive purchases: E-wallets and speedy shipping make people shop on impulse.
Businesses have played a pivotal role in propelling globalization forward, leading to numerous advantages. Paradoxically, globalization also presents an equal share of challenges.
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