Globalization

Globalization: is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture.

Today modern communication technology and mass media like radio, TV, phones or internet are global standards. This means that information can be distributed worldwide in real time at affordable prizes. For example:

- A call from New York to London has decreased in prize a 99% since 1930

The cost for transportation of products and persons has dropped by 65% since 1930

- Sea freight –65%

- Air Freight –88%

This all contributes to globalization.

Economy: The most affected area

- International exports have increased a 30 fold since 1950

- Foreign direct investments of companies and governments

o 1970: 13 billion US $

o Today: 1,800 billion US $

- Many companies are searching for new markets and opportunities for cheap production in countries with low wages and soft environmental regulations

- MNC (multinational corporations)

o 1990s: 7,000

o Today : 65,000

Politics:

Most important polices issues such as climate change (global warming) financial prizes of terrorism do not care about borders. Such problems can’t be solved by a single state alone. Politics try to react by attempting making decisions in group of countries such as:

- EU

- G-20

- Uno

There are more and more international pressure groups which don’t belong to a particular state this so called non-governmental organizations or NGO’s are able to exert influence in politics related to their field of work like:

- Greenpeace

- Amnesty international

- Attac

Culture

One aspect if often referred to as Macworld. The term describes how western cultures become dominant and destroys cultural diversity. The global distribution such as western music, news, products and even the English language promotes these effects.

Good sides

Globalization gives a larger market. You can sell more goods and make more money. You can create more jobs. (500,000 Chinese to leave extreme poverty)

Consumers also profit from globalization.

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