Class: MBA 554 Due Date: 9/23/2014
Topic: Globalization
Globalization is the adoption and migration of cultures and processes across traditional
borders. The World health organization defines globalizations as the increased
interconnectedness and interdependence of peoples and countries, is generally understood
to include two interrelated elements: the opening of borders to increasingly fast flows of
goods, services, finance, people and ideas across international borders; and the changes in
institutional and policy regimes at the international and national levels that facilitate or
promote such flows. It is recognized that globalization has both positive and negative
impacts on development. Webster dictionary defines globalization as the act or process of
globalizing : the state of being globalized; especially: the development of an increasingly
integrated global economy marked especially by free trade, free flow of capital, and the
tapping of cheaper foreign labor markets.
Other definitions refer to globalization as the process of international integration arising
from the interchange of world views, products, ideas, and other aspects of culture.
Advances in transportation and telecommunications infrastructure, including the rise of the
telegraph and its posterity the Internet, are major factors in globalization, generating
further interdependence of economic and cultural activities. Globalization implies the
opening of local and nationalistic perspectives to a broader outlook of an interconnected
and interdependent world with free transfer of capital, goods, and services across national
frontiers. Human societies across the globe have established progressively closer contacts
over many centuries, but recently the pace has dramatically increased. In essence
developing countries or organizations benchmark themselves against others that are
developed.
Globalization has in turn affected economies, cultures, politics, health & humanitarian
intervention and many other subsets of the populations.
Globalization of the economy, as advances in communication and transportation,
technology, combined with free-market ideology. This has given goods, services, and
capital unprecedented mobility. This has also seen the dollar become the main trade
currency across the world. This has also created larger trading blocks and processes like
European Union using the Euro; in Africa the East African Community is putting together
a system to use the shilling and trade on one platform. The tremendous growth of
international trade over the past several decades has been both a primary cause and effect
of globalization. The volume of world trade increased twenty-seven fold from $296 billion
in 1950 to $8 trillion in 2005 (WTO, 2007). In recent years world trade has declined in
volume and was down in 2012 and is expected to remain sluggish through 2013. This is a
