What is Globalization ? What are the factors and its impact?
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Answer:
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Explanation:
Impact of Globalization And Its Effect on Society
The term “Globalization” has been widely used in the last fifteen years. It is a controversial term and has been defined in several different ways. Globalization indicates that the world today is more interconnected than before. Globalization in its basic economic sense refers to the adoption of open and unfettered trading markets (through lowering of trade barriers, removal of capital controls, and liberalization of foreign exchange restrictions). Large volumes of money movement, increased volumes of trade, changes in information technology and communication are all integral to a global world. There is also a significant movement of people from one country to another for trade and work. Such increases in the movement of goods, labor, and services have weakened national barriers and restrictions that are imposed by a nation state. Some identify a new emergence of a “global village.” In the past two decades, economic globalization has been the driving force behind the overall process of globalization.
Here is what Amartya Sen a Nobel Laureate and Economist has to say:
“Global interaction, rather than insulated isolation, has been the basis of economic progress in the world. Trade, along with migration, communication, and dissemination of scientific and technical knowledge, has helped to break the dominance of rampant poverty and the pervasiveness of ‘nasty, brutish and short’ lives that characterized the world. And yet, despite all the progress, life is still severely nasty, brutish and short for a large part of the world population. The great rewards of globalized trade have come to some, but not to others.”
Answer:
Globalization in its basic economic sense refers to the adoption of open and unfettered trading markets through lowering of trade barriers, removal of capital controls, and liberalization of foreign exchange restrictions..
The important factors are:
(1) Historical:
The trade routes were made over the years so that goods from one kingdom or country moved to another. The well known silk-route from east to west is an example of historical factor.
(2) Economy:
The cost of goods and values to the end user determine the movement of goods and value addition. The overall economics of a particular industry or trade is an important factor in globalisation.
(3) Resources and Markets:
The natural resources like minerals, coal, oil, gas, human resources, water, etc. make an important contribution in globalisation.