Globalization is an ambiguous word that refers to the ever expanding multi directional flow of people, goods, and ideas beyond their limits and barriers. The concepts under which globalization is achieved are economic, political and cultural.
Economic concept refers to the expansion of global markets and exchange of currencies. It is due to this concept that there are level competitions for global companies. Products made by one company are distributed throughout the world (Williamson). Besides, standardization of the economic concept led to production of similar products by different products. Political concept is the main determinant on matters concerning territories. Through political globalization, states allow international and regional commercialization of processes (Eriksen). Political concept relating to globalization gives room to development of businesses such as tourism. Cultural concept is marked with sensitivity to diverse global cultures. Cultural concept is geared at allowing political and economic globalization because a global cultural concept is continually adopted (Ritzer and Atalay).
Cultural concept is accredited with the intent of ensuring that the dream of globalization is realised. Research and study on diversity of cultures is geared at ensuring that all cultural barriers are broken. Cultural diversity is a deterrent to globalization, “Cultural differences are regarded as immutable and generating rivalry and conflict,” (Ritzer and Atalay 309). Globalization of culture is made impossible by the cultural differences, such as the regional difference between Islamic and European states. The modernization of cultural concepts seeks to ensure these barriers are brought down to allow international free trade, tourism and educational travel (Ritzer and Atalay).
Political concepts allow the international companies to engage in regional trade. Also, this concept allows countries to participate in the international markets as equal competitors (Williamson). When companies deny access of their markets to foreign countries, the countries in turn starve the country of foreign products and aid. The interdependence between countries fosters political peace treaties between participant countries. Governments disregard the open markets. The participants are global; each with personal interests, hence there can be no rules. However, governments have put measures to protect themselves, their products and employees from the dangers of the open market (Ritzer and Atalay).
The economic concept is the main reason for globalization. Theories such the desire for Free Direct Investment (FDI) investments are notably the major contributors. International corporations desire to expand their markets, thereby increasing their revenue. To realize a global economic concept, companies have standardised their production and manufacturing processes especially in cases where manufacturing is in different regions. The standard production is necessary in allowing equal global charges across the states.
For economic purposes, the travel and employment rates of foreigners is globalized. Firms seek to hire the best of the educated in specific area. Due to a convergence of the manufacturing companies in first world countries, the third world countries are left with the semi-skilled and unskilled, “10% of the Sri Lankan labour-force is now abroad,” (Williamson 4). From this example, employment opportunities are thereby globalized to ensure that only the best are employed, irrespective of their countries of origin.
Economic globalization is the reason behind the existence of worldwide companies. The purchase of goods and services is made without regard to the place of business; because of deregulation of barriers in the free market. With increasing imports and exports, the levels of global standards on goods has made it possible for manufacturers to set standard prices. The international open market owes to the economic concept because, “economic freedom leads to the ruthless reallocation of resources to that which is succeeding,” (Ritzer and Atalay 73). The rules surrounding economic concepts are shallow and hence the state governments detach themselves from the open market. The lack of rules is because of diverse business entities with varied rules, hence the rules are disregarded (Ritzer and Atalay).
Works Cited
Eriksen, Thomas Hylland. Globalization-The Key Concepts. 2. London: Bloomsbury Publishing Inc, 2014. Print.
Ritzer, George and Zeynep Atalay. Readings in Globalization. West Sussex: John Wiley & Sonc Ltd, 2010. Print.
Williamson, John. “Globalization: The Concept, Causes, and Consequences.” Peterson Institute for International Economics 1.1 (1998): 13. Print.
