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Video:What Is Globalization?

with Milo De Prieto

Globalization is a media buzzword today, but what does it really mean? Get an introductory summary of globalization, its pros and cons, and elements for further thought in this video from About.com.See Transcript

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Transcript:What Is Globalization?

Hello I'm Milo for About dot com and today we are talking about globalization. 

What is Globalization?

Globalization is a word that we hear constantly nowadays. It can be defined as the trend in the financial markets and businesses to expand beyond national and territorial borders and boundaries. It is a process through which the financial markets, societies and cultures have become interdependent and tend to merge, blurring the boundaries between the local, national, and international.  

It is a dynamic process primarily led by multi-national businesses and organizations. It can also be viewed as the freedom of movement for goods, services, and people across borders. It is a phenomenon caused by the latest developments in mass communication and the technologies that have been developed and continue to be developed to support this new and instant way of communicating between people and organizations.  

The increased ease of mobility has also greatly contributed to this unstoppable trend.There seems to be a disagreement on whether economic globalization is or not an irreversible current. What is certain is that this trend has substantial effects on the world's economies. 

Pros and Cons of Economic Globalization

The Pros of globalization include:

  • Global competition keeps prices low so inflation is less likely to occur
  • An open economy can encourage innovation as people can exchange ideas freely and instantaneously
  • There are more varied and international goods available for consumption everywhere. 

On the negative side:

  • Small businesses have difficulty surviving in an unregulated market and usually get eaten up by larger competitors
  • As economies become interdependent, a crush in a country's economy will affect other countries in a negative way.

Basic Aspects of Globalization

To sum up we must understand that there are some basic aspects to globalization:

  • Internet allows us to be global in the way we exchange information
  • We are more mobile than ever, travel has become less expensive and people move all over the place and get to see and experience different cultures
  • Environmental problems affect us all, issues such as air pollution, acid rain, and climate go beyond national borders
  • Our economy is increasingly global as a result of mass communication and mass transportation. 

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