The Drivers of Globalization
The Drivers of Globalization
At the dawn of 21st century, information technology, communication, transportation and even banking systems took a great leap of improvement that changed billion of lives around the world. Using a personal computer, an individual could perform a number of trade and banking transactions from anywhere, for as long as there is an Internet connection. People who are fond of traveling around the world could remain in contact with his families and employers, 24 hours a day, 7 days a week.
Important events could now be shared by millions of viewers around the world through satellite connections and the use of the World Wide Web. The world became a small a neighborhood through fast delivery brought about by airplane travel around the world, minute by minute. All of these improvements contributed to the creation of a single thread that connects billion of lives throughout the globe. That thread came to be known as globalization and it is a trend that contributed to the development of the so called global society.
Globalization acknowledges the emergence of a global society in which political, economic and cultural events could easily influence the lives of people from all parts of the world. The so called global society also implies the idea of a global market which allows freer movement of goods, services, investment and capitals across the globe . The global market focuses on economic globalization, a sub field of globalization which focuses on the improvement and changes that occur in the sector of trade and commerce.
Economic globalization suggests diminishing national boundaries and territory to allow freer movement of goods and services . Tariffs and trade regulations are created to further improve and ensure that the flow of goods and services would continue and safe from illegal activities. Along with these and the improvements achieved in the field of transportation, information technology and communication, the cost of transactions and operation of companies around the world and have opened up millions of jobs throughout the world and have reduced the cost of transactions.
An example of this would be the large increase of trade and movement of capital in the form of bonds, stocks and investment. The volume of world export level from 1950 to 2001 grew 20 times from its original level. Analysts have also deduced that investors and shareholders nowadays are so well informed that they could easily manipulate their shares and capitals through Internet to enable them to gain more profit. It was eminent that the consumer himself was an influential catalyst for change; however, there are other factors which contribute greatly to the development, growth and spread of globalization.
It is possible that there are many reasons or factors that have caused globalization spread so fast but it would be best to narrow it down based on the influence and number of changes that it has brought forth towards the globalization as we know of today. As much as possible, these factors would be in touch with market and product globalization. The assessment of these factors would be the key in answering why globalization has spread so fast over the past decades. Lastly, the last part of the paper would be a reflection about the influence of globalization on the lives of normal people such as the author of this paper.
A. The Consumer and the Nature of Man In his endless pursuit of greater pleasure, comfort and perhaps happiness in life, man has always sought to improve the quality of his lifestyle and everything around him. Whether it was accidental, planned or forced, man never failed to bring advancement in his daily life and to his predecessor in the future. In the early years, man was forced to develop and improve his agricultural system and tools to cope up with the growing population and harsh environment that surround him.
The idea for gunpowder and guns that change how wars are fought, were brought by the creation and extensive use of firecrackers by the Chinese. The Industrial Revolution for instance, was a period in which many innovations were introduced that forever changed how goods are being manufactured and also transportation services was the main attraction during that time. Personal computers, cell phones and satellites connections of the 20th century could connect people from any part of the world in a matter of minutes or even seconds. Even couples who are having problems in bearing children could now resolve this through artificial insemination.
These are manifestations of how far man could go when he attempts to further improve his lifestyle and it is for a fact that there is no possible end on how man could go when he wishes to seek more pleasure and comfort in life. This desire of man to further enhance its current lifestyle has pushed the boundaries and possibilities of 20th century world market. Merely supplying people with basic goods and necessities is not enough for a company to stay in the business. They need to be innovative about their product and they need to produce product that will capture the taste of the consumers.
Even services being offer by manufacturer and companies should be top rank in order to ensure that consumers would adhere to their product. Moreover, considering the status of information technology and how easy it is to gain various amount of information, it could be consider that consumer nowadays is more informative and knows what they need not to mention how picky most of then when it comes to the quality of the product they’re going to buy. In the least sense, consumer itself was the one who shaped and pushed the current market to its current level.
Globalization was merely a tool that helped in satisfying the demand of consumers for product that could improve and make life easier. Through a freer movement of capitals and less restrictions concerning importations of foreign goods, people across the globe was able to experience gadgets, goods, services and even infrastructure that usually could only be found in developed countries. Such conditions could be seen in countries in Asia and South America were investors from the so called 1st world countries have invested huge amount of money to penetrate and dominate local markets.
When it comes to infrastructure, one example that could be found is recent spread of high class casinos and hotels in tourist destinations especially in areas such as the Caribbean, Mediterreanan and Hawaii . Globalization for a moment has satisfied the consumers’ needs but at the same time it has invoked greater desire for the consumers to experience and use more product that could further improve their lifestyle. Additionally, the power to avail certain kind of products such as luxury cars and advanced gadgets represent the social status of consumers.
3rd world countries have opened their markets to foreign investors not just to increase revenue but also to provide its people with job opportunities and improve their economy through such investments. Product Innovations It is eminent that there is no permanent product that would dominate a market for long a time. Aside from our basic necessities, everything that we use will eventually come to an end. This is why leading companies and manufacturers are forced to develop and produce new products that would interest the public and would help them stay in business.
Microsoft for instance, continuously creates and develops operating systems for personal computers in order to cope up with the latest programs and software that are being sold in the market today. From time to time, leading cell phone manufacturer like Nokia and Samsung need to release new models of cell phone that are better that its predecessor and could offer new tricks to its user. Everything has its own evolution, even the tiniest gadget that we use started of from a humble beginnings and had been changed in order to cope up with the demands of the public and at the same time stay on course with regards to business operations.
Through product innovations and improvement, leading companies and manufacturers could supply the public with goods that could satisfy their demands . When a product is adhered to by billions of people around the globe, leading companies turn their attention to manufacturers for possible business expansion and reproduction of their product. Manufacturers are either hired or created by those companies who personally want to manage the production of their products. Investment comes in huge amounts of money and it often creates thousands of job opportunities.
Globalization comes into play during these times. Tariffs and trade regulations are lowered in order to accommodate business expansion and to give investors flexibility about they’re investment. Countries who sought to increase their nation’s revenue, turns their heads to foreign investment for possible influx of money and generating jobs that could decrease unemployment level . For an instance, famous clothing lines have opened not only outlet stores but also their own factory outside of their main offices in order to meet the demands of the public.
Clothing lines like Lacoste, Luis Vitton and other famous brand could now be found in various parts of the world. Michelin, the French tire company owns a factory in south California where they produce tire that would answer the demand of the local market. Globalization spread across the globe because of the opportunity that foreign investment could offer to a country. Aside from lowering the cost of foreign product through local manufacturing, foreign investment could boost the economic performance of those poor countries.
University/College: University of Chicago
Type of paper: Thesis/Dissertation Chapter
Date: 18 December 2016
We will write a custom essay sample on The Drivers of Globalization
for only $16.38 $12.9/page