Globalization and the Effects on the World

Essay by LilMsScareAll100University, Bachelor'sB+, April 2004

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During the early 20th century the world economy supported high levels of trade and relatively free capital flows between industrialized nations. Therefore it could be said that the process of globalization started along time ago and not recently as it is perceived for most of the people around the world. Usually globalization is taken to mean growing international trade and investment, but there is more than that. Globalization involves economic activity, having to meet international competitive standards: price, productivity, and profitability. Globalization is a broad and complex issue. Something that has become part of our daily lives, economically, politically, culturally and environmentally. It affects wages, how hard people work, interest rates, and the television consumer's watch. It creates losers as well as winners. The process of internationalization of the economy has both positive and negative impacts on firms, people and the world in general.

The last two decades have seen the most rapid and broad institutional transformation in human history.

It is a conscious and intentional transformation in search of a new world economic order in which business has no nationality and knows no borders. Globalization as a process that increases the extent and form of cross-border transactions among crowds, assets, goods and services and that intensifies the economic interdependence between and among globalize entities, which may be private or public institutions or governments. (Giddens 650) This process is driven by economical adoption of the system of free-market economy and economic liberalization, both within and between countries, technological advances in information and communications technology. In the process of understanding international business activities, experts have categorized firms according to the extent and form of their international activities. In a much more broader conception, any individual or corporation appealing in cross-border commercial transactions with others individuals, private firms, or not profit organizations,