Economic and Cultural Globalization
Globalization refers to the aspect where various national barriers are eliminated, and the international communication, as well as trade, are improved. Globalization affects people and countries worldwide, and there are several cultural and economic factors which play a significant role. Industrial and financial globalization increases substantially every day, and it is creating other new opportunities for both developing and industrialized economies. However, it has mainly impacted the developing countries that can attract foreign capital and investors. There are several cultural and economic factors in globalization, and the paper will look into both in addition to the impact of economic globalization as well as cultural awareness in a global context.
Economic Factors in Globalization
There are several economic factors regarding globalization and with the development as well as the growth of the international trade, being a significant one. International trade mainly entails importing and exporting services and goods from and also to other countries (Wiliam, 2018). Trading has been escalating in the recent years attributed to globalization which makes it simpler to move capital and goods among different countries.
Global trading has increased due to transportation and technological development. Many economic governments have responded towards expanding the simplification of global trading through the adoption of the “free trade” system. Belgium, Germany, and France are European Union members which enables the countries to trade much more freely with each other without obstacles such as tariffs (Wiliam, 2018).
Transnational Corporations refer to businesses that are based in a single country with different branches in several countries. They can be a significant factor in the aspect of globalization, and they are snowballing both in wealth and size toward dominating the worldwide markets. The combined sum income of ten large TNCs is much higher than that income of 100 developing countries. An example of a TNC is Krispy Kreme which was started in the U.S to spread across the nation and also other nations around the globe (Wiliam, 2018). There are several financial transactions as well as investments in the foreign countries which have been a significant factor in the aspect of globalization. Speculation of currency is now carried out between different nations, individuals, and businesses.
Globalization has impacted the labor patterns that are continually changing. Highly skilled labor benefits from travel and internet access while the unskilled workers are not. Families get split up more often, and they are forced to live in different countries attributed to the immigration of the unskilled workers who are restricted heavily within the developed countries. It also is not surprising for firms to create goods within foreign countries where the rules are more lenient and allowing them to apply cheap labor where there are inadequate conditions. That is usually referred to as “sweatshop” (Wiliam, 2018). Recently, most of the large companies’ reputation has been negatively affected after they got discovered that they had been exploiting that kind of labor.
Globalization has enabled an increased number of individuals that have different cultural backgrounds to interact and individuals from various parts of the globe are sharing social and cultural values. Cultural factors have included anything in between sport and language to food and movies. Some view that to be a positive effect. They think that globalization has increased tourism allowing more cultures to maintain their values. One such example is the manner in which numerous tourists keep traveling every year to observe the Myanmar Kayan Women as well as Thailand. Tourists usually purchase souvenirs from local handicrafts, and they pay to watch the brass rings that are coiled around the women necks that cause a sticking appearance of having a long neck.
Other people claim that tourism has exploited cultures and globalization has destroyed and changed numerous traditional cultures. It has become a growing belief that cultures are getting dominated by the western culture instead of being shared. TNCs are often blamed for that, and their dominance specifically in regions with cultural products has resulted to many people around the globe to fear that the traditional cultures and national identities are likely to be lost (Wiliam, 2018).
The customary meals are replaced with the TNC American food giant. People no longer listen to the traditional music or even watch films that are spoken in their regional language, but they rather turn towards the new releases from the west such as the 20th Century Fox or Sony. Global communications are as well developing rapidly and that allows the North American cultural aspects to dominate the melting pot of the culture. Through the increase of films, music, television as well as the use of the internet, English became a dominant language that replaced some of the regional languages (Wiliam, 2018).
Impacts of Cultural and Economic Globalization
Effects of Economic Globalization
Economic globalization can increase the living standards as it provides the governments operating in developing nations access to foreign lending. Whenever the funds are utilized on infrastructures such as education, roads, social services and healthcare, the living standard within the country is increased. Globalization also provides the national governments of the developing countries access to the new markets (Mohr, 2018). It leads to free trade among economies while the home industries can enjoy access to the broader markets attributed to the elimination of the trade barriers.
Impacts of Culture on a Global Perspective
It is essential for countries around the globe to develop some intercultural competencies. A gesture or even a word that is acceptable in one’s culture may be offensive to others. The internet can be a good source of relevant info if one is trying to understand a different cultural background theirs (Arau, 2017). Different cultures bring about diversity regarding the viewpoints, and it may bring solutions to issues and also increased the number of talents among individuals resulting in increased production and efficiency (Steps, 2011).
In closing, globalization entails eliminating communication and trade barriers among different countries promoting interactions among different countries. Economic and cultural globalization has several factors and impacts on the involved parties such as improved living standards, access to the wider markets, tourism, increased global trading attributed to developed transportation and technology, as discussed in the text above.
Arau, E. (2017). The importance of cultural awareness in the globalization context | Conversis – Translation Experts. Conversis.com. Retrieved 27 February 2018, from https://www.conversis.com/blog/cultural-awareness-in-the-globalization-context.html
Mohr, A. (2018). The Effects of Economic Globalization on Developing Countries. Smallbusiness.chron.com. Retrieved 27 February 2018, from http://smallbusiness.chron.com/effects-economic-globalization-developing-countries-3906.html
Steps, B. (2011). The Importance of Cultural Understanding in the ‘Global Village’. BlueSteps. Retrieved 27 February 2018, from https://www.bluesteps.com/blog/the-importance-of-cultural-understanding-in-the-global-village.aspx
Wiliam, S. (2018). Economic and cultural factors in globalisation, Globalisation, Global change, SOSE: Geography Year 8, NSW | Online Education Home Schooling Skwirk Australia. Skwirk.com. Retrieved 27 February 2018, from http://www.skwirk.com/p-c_s-16_u-185_t-493_c-1814/nsw/geography/global-change/globalisation/economic-and-cultural-factors-in-globalisation
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