Globalisation

The globalization is the process of economic integration of countries, through the increasing flow of goods, services, capital and labour. (Stiglitz, 2003)

But do we clearly realise what is globalisition?

Globalisation characterized by the following processes:

1) Spread of telecommunications and information technology;

2) Reduction of national barriers for trading and making investments;

3) Increase cash flow and interdependence of financial markets.

Globalisation really promotes the growth of human mobility, however migration control now restricted. Global alliances between companies are becoming increasingly common. With a computer you can now communicate with people all over the world. Finally, the recent financial collapses in Asia and Latin America have demonstrated a growing financial and economic interdependence.

We have a lot of advantages of globalisation.

1) Increased mobility and accelerated communications. Despite of increasing in gap between reach and poor, globalisation gave us Internet that made our communications much easier. Also all this technological progress makes simpler all communication in different ways. Lets for example take traveling. Now planes are fast and comfortable. There are even some very cheap airlines.

2) Globalisation can lead to improvements in efficiency and gain economic welfare. Because of improvement in technologies, communications and transporting system job can be done easier, with better quality, and faster (that can lead to more work done, hence more wealth).

3) Cheaper prices. Now boarders are open to foreign companies. That will lead to bigger competition and as a result prices are falling down. Competitive markets reduce monopoly profits and incentivize businesses to seek cost-reducing innovations and improvements in what they sell.

4) Deeper relationships between markets across borders enable and encourage producers and consumers to reap the benefits of economies of scale. It happens on the market because there a lot of companies who are benefiting from economics of scale. So other companies can use there cheap services or products to make new ones and save money. 

However globalisation has disadvantages. Lets focus on them more closely.

1) States losing their sovereignty. Government power has reduced by huge transnational companies on decisions that can affect people wealth.

2) Focus on economy. Economy has become more important than social and politics. This happened because private firms and international local and regional intergovernmental organizations take a leading role in public administration.

3) Loss of culture. Because of globalisation and open borders countries lose their originality. For example traveling all over the world you will see same restaurant chains (McDonalds) or the same museums (Madame Tussauds).

4) Disparity. Developed countries use countries with cheap labor force to produce goods. For example Adidas that is made in Indonesia because of cheap labor force there.

5) Unemployment. Because of open borders companies can easily change their locations. So most successful will move to developing countries and all investments and job places will move with them. That is will be a reason why rich countries become richer and get rid of unemployment and poor countries will become poorer and will suffer from unemployment. For example, Apple, which is returned productions of Iphone back to America.

From the all things considered, I would like to assert that globalisation is globally good. All its benefits are covering disadvantages. Every one gains benefit of it every single day. It makes our life easier, economy more efficient and more power has given to the private firms. It has disadvantages, as any other thing in this world. Nothing can be ideal but it very important point that by all improvements that globalisation brought to the world it improved every single part of our lives.