Globalization – Impacts & Effects

Globalization is the unification of the economies across the world beyond the barriers forged by the geographies, so as to to stimulate wealth generation, exchange of goods and services and mutual inclusive growth through an division of labor across nations characterized by efficiencies arising from international relations, specialization and competition. Typically the forces of globalization are driven primarily by economic, sociocultural, political, and technological factors although other factors have also played a significant role in the process.

Although the empirical evidence on the benefits of globalization on inclusive development is not very clear, the share in aggregate world exports and in world output of the developing countries has definitely increased due to this phenomenon. The emergence of global markets which has triggered a much wider access to a range of products both for consumers and firms has definitely triggered a kind of major industrial revolution. There has also been a stimulated growth triggered by access to better financial resources due to the liberalization of economies and thus the increased liquidity of financial resources.

A major impact of the globalization has been the stimulation of the Green Revolution, which has managed to address the needs of the burst in population globally. It is felt that without the green revolution, stimulated by the exchange of information, agro-products, fertilizers, seeds, bio-technology and expertise, much of the sudden burst of population growth would have suffered severely from lack of access to food, clothes and medicines.  The development of agriculture and agro-based industries has had a major positive effect on the lives of billions of people on this planet directly and even more so indirectly.

The realization of a global market, based on the freedom of exchange of goods, information and capital, and thus setting up the preconditions for perfect market conditions  has been one of the major benefits of globalization. This has actually stimulated a shift of monopolistic economic power from the United States (and European nations) to fast developing economies like China, India, Brazil and other similar countries, which are growing at a rate exceeding 8% year on year. The emergence of China and the Eastern tigers (Vietnam, Malaysia, Singapore) as a manufacturing super-power and the emergence of India and Brazil as a services hub has been extremely significant in this shift of political power.

A major trigger in the impact of globalization has been the adoption of internet based products and services. This has triggered a substantial increase in information flows between geographically dispersed locations and stimulated the formation of global markets. Today, consumers of lesser developed economies have access to all the products of developed economies through the establishment of e-markets like Amazon and e-Bay.

The social effects have been significant too in the context of globalization. English, although the third most popular language in the world, after Mandarin and Spanish, has become the Lingua Franca (official language) of the global economies. The access to global information, products and services has triggered the growth of cross-cultural relationships and facilitated the development of a new order consciousness and life-style stimulated from cultural diffusion, improved standards of living and access to foreign products, services and ideas. This development of “World culture” has been most significant among the Netizens triggered by fraternity shared on online forums which has stimulated the exchange and diffusion of ideas.

However, globalization has also triggered the brain drain from developing economies to developed economies to access better employment opportunities and also the formation of Sweatshops by the advanced economies in developing economies to take the benefits of cheap labor. The globalization of the jobs has a negative impact in developed countries where many of the jobs (especially the low knowledge centric ones like BPOs and KPOs) have been outsourced to economies where labor is comparatively much cheaper. Also, many argue that globalization has actually a negative impact on inclusive development of backward economies and the rich gets richer by taking advantage of the resources in the disposal of the poor by utilizing it better. Also, globalization has triggered many illicit trade activities involving drugs and trafficking and this has added to the woes of under-developed economies.

 

 

Top searches in the Internet in this year

For all those who follow Google trends, this would barely come as a surprise. From a research done by a group in the United States, it has been disclosed that the following articles have been the source for the hottest search globally in 2010 and is also expected to reign till mid 2011 to a large extent. The group analyzed the searches done in Google, Yahoo, Bing, ASK and AOL Search. These collectively account for 99% of the total search engine usage and are ranked as the top search engines in order, as per usage.

What was actually less anticipated was the lower rankings of the FIFA world cup, as compared to few other unexpected rank holders.

And finally, without any more ado, we present you the top 10 searched topics in the internet in 2010.

1. Haiti
2. Malema Julius
3. Earthquake
4. Bafana
5. Nelson Mandela
6. World Cup
7. Cape Town
8. Soccer
9. Zuma
10. Kaizer Chiefs

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This Article is authored by Jake Mazan, who is a guest author at Business Fundas. He is a Senior Research Analyst cum Manager at NG-Online News.

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