Globalization

Description:

Globalization is the growing interconnectiveness reflected in the expanded flows of information, technology, capital, goods, services, and people throughout the world. Therefore the globalization of markets is the growing interconnectiveness of markets, like financial markets, labor markets, trade markets etc.

Globalization has become identified with trends such as: greater international movement of commodities, money, information, and people; and the development of technology, organizations, legal systems, and infrastructures to allow this movement.

Enablers:

• Human Capital (i.e. Immigration, Migration, Emigration, Deportation, etc.)
  
• Financial Capital (i.e. Aid, Equity, Debt, Credit & Lending, etc.)
  
• Resource Capital (i.e. Energy, Metals, Minerals, Lumber, etc.)
  
• Power Capital (i.e. Security Forces, Alliances, Armed Forces, etc.)
  
• Increase in technology especially information technology
  
• Increasing participation of China and India in the global markets
  
• Decreasing power of communism
  
• Increasing power and number of global companies.
  

Inhibitors:

• Increasing disparity of poor and rich
• Increasing difference between islamic and non-islamic countries.
• Pandemic disease
• Cultural differences
• Diminishing of SMEs
• Law regulations differences

Paradigms:

Products from America can be bought in Europe and vice versa. Culture, food, clothingstyles from Asia can be found in the West and vice versa. The internet is the digital marketplace where almost everything from everywhere can be traded. This kind of globalisation needs global standard regulations and rules. Also different companies having different or even contradicting rules and regulations for trading or doing business, which leads to unharmonised understanding.

Experts:

• Academia
• Political scientists
• technologists

Timing:

• World War 1: The "First Era of Globalization"
• Late 1920s and early 1930s: the crisis of the gold standars. Countries that engaged in this era of globalization, including the European core, some of the European periphery and various European offshoots in the Americas and Oceania, prospered. Inequality between those states fell, as goods, capital and labour flowed remarkably freely between nations.
• World War II: trade negotiation rounds, originally under the auspices of GATT, which led to a series of agreements to remove restrictions on "free trade".

Web Resources:

[1] http://en.wikipedia.org/wiki/Globalization