What is Globalization?
Globalization is the process by which businesses, cultures, and governments around the world become interconnected and interdependent through trade, communication, and technology.
- •Economic (trade, finance, markets)
- •Political (international governance)
- •Cultural (ideas, values, traditions)
- •Technological (information flow)
This dimension encompasses trade, investments, finance, multinational companies, and international labor markets.
The Economic Dimension of Globalization
The economic dimension of globalization refers to the integration of national economies into the global market. It encompasses trade, investments, finance, multinational companies, and international labor.
This dimension analyzes economics, including the production system, wealth distribution, and market policies. It provides crucial insight into how economic resources are generated and used, directly affecting individuals, companies, and larger regions alike.
Production is fragmented across different countries to maximize efficiency and reduce costs, shifting focus from national to global markets.
Governed by institutions like the WTO, IMF, and World Bank, which establish rules and standards for global financial interactions.
Connects labor markets, investment flows, and trade relationships across borders, creating interdependence.
Critical Issues We Face
Economic globalization presents significant challenges that affect communities worldwide
Unequal wealth distribution between countries and communities, with small local businesses struggling to compete with multinationals.
Outsourcing to low-wage countries and the exploitation of workers in global supply chains threatens job security and fair wages.
Multinational corporations avoid paying taxes by moving money to places where it costs less, depriving communities of vital resources.
Some countries rely heavily on foreign companies, creating vulnerability to global economic shocks and financial crises.