Globalization is an often used word today. If we search in the internet using the search
engine Google turns up 7,340,000 links using the word globalization, during I write these
essay. Despite the fact that the word is used so frequently, it is rarely defined clearly.
Indeed the breadth of meanings attached to it seems to be increasing rather than narrowing
over time. Maybe because of this reason the globalization issues if often debated and
resulted the supporters and contradictors. And also because of this reason, globalization
has become one of the most controversial issues within twenty years because it has more
disadvantages than the advantages.
There are several definitions about globalization. Globalization according to William K.
Tabb (2004) is “The result of advances in communication, transportation, and information
technologies. It describes the growing economic, political, technological, and cultural
linkages that connect individuals, communities, businesses, and governments around the
world.” From the socio-cultural sense, we may have globalization definition as “The
formation of a global village closer contact between different parts of the world, with
increasing possibilities of personal exchange, mutual understanding and friendship
between world citizens” (Wikipedia, 2004). This definition is very broad, but the narrower
and the most common definition of globalization is in the economic sense, “The
observation that in recent years a quickly rising share of economic activity in the world
seems to be taking place between people who live in different countries (rather than in the
same country)” (PREM Economic Policy Group and Development Economics Group
World Bank Group [PREM], 2001, para. 1) or according to Case and Fair (2004), “The
process of increasing economic interdependence among countries and their citizen”
(p.713). Almost all these definitions have similarities. Globalization has been take places
and as the consequences, it cannot be avoided and actually its not necessary to avoid that,
the most important things is how to get the most out of the advantages, and diminish all the
disadvantages of globalization.
There are so many advantages that come along with globalization. Firstly the globalization
will create the economic interconnection; this mean there will be no entry barriers for
countries to market their products or services globally. The markets entry barriers here
usually are the taxes, duties, tariff, subsidies from the local government to protect the local
producers, etc. The elimination of barriers will make the companies easier to reach the
economic of scale. According to Wheelen and Hunger (2004) to reach the economies of