How globalization affects us and how it is useful

What is globalization

It is a process during which connections between different parts of the world are strengthened.Globalization / National Geographic thanks to the development of trade, transport and communication. People get acquainted with the discoveries and culture of other nations, buy previously inaccessible goods and move to live abroad. Two people from different parts of the planet can listen to the same music, wear the same clothes, and even think similarly.

Globalization has always happened. Even in the era of Antiquity, trade caravans connected the West and the East along the Great Silk Road. And medieval sailors, such as Christopher Columbus, discovered new lands and told Europeans about previously unseen things and customs.

The development of science in the 19th and 20th centuries only accelerated globalization. There were trains, planes, telegraph, telephone, radio. As a result, news began to spread almost instantly, and in order to find yourself in another part of the world, you no longer need to spend weeks or even months. By the end of the 20th century, globalization had become so large-scale that everyone started talking about it, and for the process they finally came up with a term.

Benefits of globalization

Here are some examples of how she makes life better.

Products become more affordable

This is because globalization makes production cheaper and increases competition.

Thus, in a world without globalization, companies would not be able to build factories abroad or use resources from other countries to create goods. Same Apple would have to hire Californian workers and search across the United States for rare earth metals that are used to create microchips. In this case, the prices for new phone models would skyrocket.

With globalization, corporations can saveGlobalization / World Bank Student Resources on salaries and materials. For example, collecting gadgets in China, where there is a lot of cheap labor and large reserves of rare earth metals. This means that the cost of the final product decreases.

Another way to save moneyEffects of Economic Globalization / National Geographic - to produce components in different countries, most often developing ones. So, cotton for your T-shirt could have been picked in Uzbekistan, made into fabric in Bangladesh, and sewn clothes in China, Vietnam or Indonesia.

Finally, thanks to globalization, companies are able to sell products virtually all over the world. This factor, of course, has a positive effect on competition. Now it is almost impossible, for example, to sell poor quality brick phones for fabulous money just because there are no competitors on the market. A company with such business model bankruptcy will certainly await. Corporations have to improve products and compete for customer attention, including by cutting prices.

Political conflicts between countries are less often resolved through wars

The European Union, a shining symbol of globalization, did not come about by chance. European governments were afraid of repetition World War II wars and looked for ways to prevent such events. As a result, politicians focused on strengthening economic contacts. After all, the closer the ties between states, the more they dependGlobalization / National Geographic apart.

So, if the chassis for tanks are produced in one country, the hulls in another, and the shells in the third, it will be much more difficult for aggressive politicians to unleash a war. In addition, when the economy is mainly based on the sale and purchase of goods abroad, armed conflicts become extremely unprofitable. After all, the country can leaveJ.-W. Lee, J. H. Pyun. Does Trade Integration Contribute to Peace? / ADB Working Paper not only companies from a hostile state, but also international corporations.

This logic works all over the world, albeit in places and weaker than in the European Union. Most governments fear trade and economic isolation, and national leaders are forced to pursue a more cautious foreign policy. It is significant that over the past 70 years, the number of wars between countries with developed trade links decreased significantlyJ.-W. Lee, J. H. Pyun. Does Trade Integration Contribute to Peace? / ADB Working Paper.

Poverty rates are falling

International corporations create jobs in developing countries, and local companies adopt new technologies and often enter the global market. As a result, the earnings of the inhabitants of poor countries are growing.

Just 30 years ago, almost 57% of the population lived in ChinaGDP per capita (current US $) / The World Bank less than $ 1.9 a day is an indicator of absolute poverty, according to the World Bank. In 2016, only 0.5% of Chinese with such incomes remained.

This happens almost everywhere. Thus, according to the World Bank, the number of people living below the poverty line has declined worldwide.Poverty / The World Bank over the past 30 years from 36% to 9.3%.

Achievements of culture and science spread faster

Not only technologies are developing, but also connections between people and states. It has become much easier to travel around the world, and any open information almost immediately becomes available to all inhabitants of the planet. Is happeningA. A. Galkin. Globalization / Great Russian Encyclopedia active cultural exchange: you can go to the Louvre to look at the Mona Lisa, or turn on Netflix to understand why the South Korean drama “Squid game"Became a worldwide sensation.

People themselves get new opportunities for joint creativity and science. International teams make films, develop computer programs and conduct research together. And it brings results. Thus, the creation of the Large Hadron Collider would have been impossible if scientists from only one country participated in the project, which is too large-scale enterprise.

What is globalization scolded for?

Despite all the advantages, globalization has many opponents. This is what they are unhappy with.

International corporations are crowding out local production

The competition created by globalization also has negative consequences. So, a small traditional trade or small business can notWhat Is Globalization? And How Has the Global Economy Shaped the United States? / Peterson Institute for International Economics compete with large corporations.

A craftsman who sews traditional clothes works for a long time, and his labor is expensive. Not everyone will go to him when there is a huge selection of jeans and T-shirts in a nearby store, and prices are several times lower. In addition, large companies can afford huge expenses for advertising. Therefore, small-scale industries disappear, and corporations take over the markets of underdeveloped countries.

The problem of inequality persists

Although the number of poor people in the world is declining, the gap in living standards both between citizens of different states and between representatives of different social strata remains significant and even growing.Z. Lu, G. C. Hufbauer. Has Global Trade Fueled US Wage Inequality? A Survey of Experts / Peterson Institute for International Economics.

For example, a textile worker in Bangladesh works 10-12 hours six days a week. Moreover, in a month he can earnEffects of Economic Globalization / National Geographic less than an American worker per day. Moreover, a Bangladeshi cannot just get a job in another company: there are few vacancies. This means that he actually has no choice. Either work in difficult conditions for low pay, or give up your place to a more accommodating candidate, and be left with nothing.

Many critics are convincedGlobalization / World Bank Student Resourcesthat globalization is beneficial only to developed countries. Corporations exploit workers, move the dirtiest industries to developing countries, and don't care about working conditions. And most of the profits go to the headquarters of the companies.

Some people, on the other hand, lose their jobs.

Until the 1990s and 2000s, the American proletariat lived well. The workers were confident in the future, received good wages and had no doubt that, if necessary, the trade unions would defend their rights. But by the beginning of the XXI century, the idyll came to an end. Enterprises began to close because it turned out to be more profitable for American companies to buy finished goods where it was cheaper to produce them. For example, in Mexico or China.

In the United States manufacturing industry alone, jobs began to decline from 2001 to 2016What Is Globalization? And How Has the Global Economy Shaped the United States? / Peterson Institute for International Economics by 156 thousand annually. Those who have not lost their jobs are forced to put upGlobalization's impact on employment and the EU / European Parliament News with a low salary.

Diseases are spreading rapidly around the world

If COVID-19 appeared not now, but, for example, in the XIV century, it is quite possible that it would not have spread so quickly. So, the "black death" gotP. Slavin. Death by the Lake: Mortality Crisis in Early Fourteenth ‑ Century Central Asia / The Journal of Interdisciplinary History from Asia to Europe for at least 7-8 years. The thing is that in those days few people could overcome such a path. First, the journey - both by land and sea - took months. Secondly, it was very dangerous.

Compare this with the current state of affairs, when a flight from Paris to Beijing lasts only 10 hours, and millions of people use international flights every day. It is not surprising that in such conditions, any traveler turnsGlobalization / National Geographic into a potential epidemiological threat.

Cultural differences are blurring

Opponents of globalization lamentA. A. Galkin. Globalization / Great Russian Encyclopediathat people watch the same Hollywood movies, eat the same burgers in fast food chains, buy almost identical clothes and strive to be like world celebrities. Anti-globalists believe that national differences disappear, and people become the same - "one-dimensional".

Some critics go further and blameJ. L. Watson. Cultural globalization / Britannica Western countries in cultural imperialism. They say they impose their ideology on the rest of the world and destroy unique traditions other nations.

New international conflicts arise

Although there are fewer armed clashes between states, the competition between them has not disappeared anywhere.J.-W. Lee, J. H. Pyun. Does Trade Integration Contribute to Peace? / ADB Working Paper. She just moved on to other areas. For example, countries seek to capture new markets or protect old ones - this is how trade wars such as those waged by the United States and China begin. And due to the development of technology and international relations, it has become easier for states to conduct cyberattacks and run propaganda campaigns.

New threats are emerging that are not related to the struggle between countries. So, not all people are happy with the onset of globalization and the change in culture, which is becoming global. It is precisely because of such sentiments that international terrorism emerged.

People are polluting nature more and more

Due to globalization, the production of goods becomes cheaper, and they can be sold all over the world. The very concept of using things has changed. Smartphone models, for example, become outdated every 3-4 years, and it would never occur to anyone to sew up a torn T-shirt: it's easier to buy a new one.

Consumption and production are constantly drivingN. Leitão, M. Shahbaz. Carbon Dioxide Emissions, Urbanization And Globalization: A Dynamic Panel Data / Economic Research Guardian each other. Demand is increasing and companies are spending more and more resources on creating new products. Factories work, and old things are thrown away - the planet gets polluted, harmful emissions enter its atmosphere, is accelerating global warming process.

Is globalization inevitable

It has slowed down a lot in recent yearsP. Goldberg. IFS Annual Lecture 2019 / Institute for Fiscal Studiesbecause more and more people are unhappy with its consequences. Some are losing their jobs, others are afraid of cultural change, and still others are angry about growing inequality. Globalization itself createsJ. Blatter. Glocalization / Britannica anti-globalism.

Annoyed people vote for anti-globalization politicians, and the latter try to stop or slow down the processes of globalization. For example, introduce new trade duties or refuse international cooperation. This is exactly what happened with Brexit - Britain's exit from the European Union.

However, attempts resist change usually do not bring much success, because the countries are already strongly connected to each other. For example, former US President Donald Trump is a well-known opponent of globalization. He introducedDid Trump's tariffs benefit American workers and national security? / Brookings Institute duties on various Chinese and European goods to save more industrial jobs. As a result, it hit trade, prices rose, and the president did not achieve the desired results.

Globalization can be slowed down, but it can hardly be stopped.

How to benefit from globalization

In fact, it is not difficult at all. You just need to use the benefits that it gives.

Buy goods abroad

So you can find rare things that are not sold in Russia, or buy something cheaper.

The easiest way is to order on AliExpress. It is also worth looking for products on Ebay and Amazon or elsewhere. online stores with international delivery. If it is not there, you can resort to the services of intermediary companies.

Enjoy the freedom to disseminate information

You can watch Netflix, read foreign bloggers on Facebook, or get news from The New York Times mailing list. The Internet offers unprecedented opportunities to get information from wherever you want.

Get an overseas education

The first option is to learn from the teachers of the best universities in the world or representatives of cool companies through online courses. Interesting lectures are worth looking at Coursera or edX.

The second option is to participate in student exchanges or foreign internships. So you can not only learn something new, but also see the world.

Work in an international company

It is possible that after the internship you will be offered a job abroad, but this is not the only way to get into a multinational company.

So, many corporations have representative offices in Russia, and you can try to make a career there. Or start working remotely: Due to the development of technology, there are more and more options.

Open an international business

For example, start selling products abroad or, conversely, bring foreign goods. It is only important to make sure that there is really a demand for them.