Understanding Globalization: Types, Causes, and Effects

Classified in Geography

Written at February 3, 2025 on English with a size of 3.89 KB.

Types of Globalization

Economic Globalization
Economic globalization refers to the increasing interdependence of world economies. This results from the growing scale of cross-border trade of commodities and services, the flow of international capital, and the wide and rapid spread of technologies. Countries that trade with many others and have few trade barriers are considered economically globalized.
Political Globalization
Political globalization refers to the growth of the worldwide political system, both in size and complexity. It involves the increasing number and power of international organizations and agreements. It is the amount of political cooperation that exists between different countries.
Social Globalization
Social globalization pertains to the sharing of ideas and information between and through different countries. It involves the increasing interconnectedness of people through the spread of popular culture, media, and communication technologies.

Improved Communications
The development of communication technologies such as the Internet, email, and mobile phones has been vital to the growth of globalization. These technologies help Multinational Corporations (MNCs) operate throughout the world.
Improved Transport
The development of refrigerated and container transport, bulk shipping, and improved air transport has allowed the easy mass movement of goods throughout the world.
Free Trade Agreements
MNCs and wealthy capitalist countries have always promoted global free trade as a way of increasing their own wealth and influence. International organizations such as the World Trade Organization (WTO) and the International Monetary Fund (IMF) also promote free trade.
Global Banking
Modern communication technologies allow vast amounts of capital to flow freely and instantly throughout the world.
The Growth of MNCs
The rapid growth of big MNCs such as Microsoft, McDonald's, and Nike is both a cause and a consequence of globalization. Globalization allows MNCs to produce goods and services and to sell products on a massive scale throughout the world.

Changed Food Supply
We can buy food from anywhere in the world at any time of the year.
Division of Labor
Because MNCs search for the cheapest locations to manufacture and assemble components, production processes may be moved from developed to developing countries where costs are lower.
Damage to the Environment
More trade means more transport, which uses more fossil fuels and causes pollution.
Cultural Impact
Websites such as YouTube connect people across the planet, facilitating cultural exchange and understanding.

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