Globalization refers to the process of integrating governments, cultures, and financial markets through international trade into a single world market.
Globalization describes the increased contact between individuals on an international scale. This contact is enacted through the exchange of ideas, products, services, and information. Often the process of globalization begins with a single motive, such as market expansion (on the part of a corporation) or increased access to healthcare (on the part of a nonprofit organization). Usually, there is a snowball effect, and globalization becomes a mixed bag of economic, philanthropic, entrepreneurial, and cultural efforts. Sometimes the efforts have obvious benefits, even for those who worry about cultural colonialism, such as campaigns to bring clean-water technology to rural areas that do not have access to safe drinking water.
Many factors contribute to globalization. Communication technologies reduce the limits distance can place on interactions as well as make communication more affordable. Economic interdependence contributes to globalization as businesses can conduct operations across countries and continents. For example, manufacturing typically occurs in less developed nations while the goods are sold across the world.
There are a variety of perspectives on globalization. The hyper-globalist perspective focuses on how economies of countries become interlinked that the nation itself loses significance in the creation of a large global economy and society. The skeptical perspective is critical of globalization and that third world countries are not being integrated into the global economy and do not have the same benefits as first world countries. The transformationalist perspective argues that globalization causes new patterns of interdependent interactions, but the outcomes cannot be predicted with any certainty.
Countries can also be viewed as core and periphery countries. Countries which are classed as core include major world powers and the countries that contain much of the wealth of the planet, for example, the G7 nations. The periphery nations are those countries that are not reaping the benefits of global wealth and globalization commonly known as developing countries.
In addition to the benefits of globalization, there have also been drawbacks. Some problematic social changes in globalization include terrorism, the concentration of wealth into fewer hands, and increased civil unrest.
MCAT Official Prep (AAMC)
Sample Test P/S Section Question 26
• Globalization refers to the process of integrating governments, cultures, and financial markets through international trade into a single world market.
• Many factors contribute to globalization including communication technologies and economic interdependence.
• There are a variety of perspectives on globalization including hyper-globalist perspective, skeptical perspective, and transformationalist perspective.
• Core countries are developed and contain a lot of wealth and power, periphery countries contribute to globalization but benefit less than core world powers do.
• Some problematic social changes in globalization have arisen like terrorism, the concentration of wealth into fewer hands, and increased civil unrest.
Globalization: the process of interaction and integration among people, companies, and governments worldwide
Communication technologies: Refers to all equipment and programs that are used to process and communicate information.
Economic interdependence: A consequence of specialization or the division of labor. The participants in any economic system must belong to a trading network to obtain the products they cannot produce efficiently for themselves. Any change in such a network affects many participants, so that the demands for various products and the incomes of the participants are interdependent.
Hyper-globalist perspective: Focuses on how economies of countries become interlinked that the nation itself loses significance in the creation of a large global economy and society.
Skeptical perspective: Critical of globalization and that third world countries are not being integrated into the global economy and do not have the same benefits as first world countries.
Transformationalist perspective argues that globalization causes new patterns of interdependent interactions, but the outcomes cannot be predicted with any certainty.
Third world countries: The underdeveloped nations of the world, especially those with widespread poverty.
First world countries: Refers to the developed, capitalist, industrial countries.
Terrorism: The unlawful use of violence and intimidation, especially against civilians, in the pursuit of political aims.
Civil unrest: Disorder caused by a group of people in public, due to a perceived injustice over how resources are distributed.