Key Aspects Of Globalization

Globalization can be defined as the growing interconnection of the various nations worldwide through the increasing volume and variety of cross border transactions which results in capital flow , and also through the more rapid and widespread dispersion of technology. Globalization is the harvest of human modernization and technological progress. It refers to the increasing amalgamation of economies across the globe though trade and capital flows. The term also refers to the migration of people (labor) and technology across international borders. It has the potential of making societies richer through trade and creates an environment of knowledge and understanding across the world. Globalization can be viewed at from five different aspects;

In recent years the process of globalization has accelerated due to various factors such as increased labor, capital mobility and advancement in technology. Global travel has become easier due to improved transport. There has been a rapid growth in air travel which enables movement of people and goods across the globe. People are more eager to move to different countries in search of work opportunities. Global trade provisions now play a key role in transfers from developed to developing countries. In recent years there has been a general reduction in the capital barriers making it easier for the capital to flow between different economies. The expansion of the multinational companies with a global presence has also resulted in merger of various economies. Financial systems are also increasingly becoming global in nature. For example when USA suffered mortgage crisis, it affected majority of the banks in the other countries who had bought financial derivatives from the USA banks. Due to an increase in the growth of global media and technology it is easier to communicate and share information across the globe. There is a growing exchange of cultural patterns and ideas across the world. The people of the world are incorporated into a single world society. It has promoted trade liberalization of various national economies. Thus the major economic decisions in today’s world are being influenced by the global conditions. Globalization intends the process of removing officially imposed restrictions on the movements of goods between the countries to promote borderless and open world economy (Scholte, J.A. 2008). Globalization is the triumph of capitalism on a universal scale over nationalist and local sovereignty. Globalization is more than a purely economic phenomenon demonstrating itself on a world