What is Globalization?

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What is Globalization?
Globalization is a term that has several meanings and applications but generally refers to the increased cooperation between different countries in terms of trade and commerce. Most people agree that the term “globalization” started as an economic term which covers the unification of the world’s economies for better trading of goods and services. But some people also refer to globalization as a general sense of being one with the world in a variety of aspects in life.

In its economic sense, globalization has resulted in countries having access to products of other countries. This literally means that manufactures in one country are now able to distribute their products to other international markets. Because of market growth and diversity, many companies became more successful as more and more people gained access to their products. Because of this trading activity, there is also an increase in terms of raw material movement between countries. As more and more people need certain products, more raw materials are also needed in order to supply the market demand. And with globalization, one country may be able to source out resources from other countries.

Because of increased economic activities between countries, many people claim that the concept of globalization has created jobs for people and has reduced poverty around the globe. Since more products are in demand, more people are also employed by various companies. These jobs were a result to globalization and one of its effects would be the reduction in poverty levels of a certain country. But not all is well with globalization. Many people also claim that the entry of foreign and bigger companies in a particular country resulted in the closure of smaller organizations and businesses. This means that while the national economy may have become better for a particular country, some of its smaller business and citizens may have suffered instead from the increased economic ties with other countries.

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