Globalization is a buzzword in the new era of international relations. Basically it is a process of global business expansion by creating a limitless market. But now it has far-reaching implications in many areas of life. Under the influence of globalization the whole world has squeezed and people have come closer to one another.
What is Globalization?
The term “Globalization” means integration of economics and societies through cross-country flows of ideas, goods, services, capital, finance and people, a process driven by international trade and investment and aided by information technology.
Definition of Globalization
Many authors have attempted to define globalization in a variety of ways.
According to Nayef R. F. Al-Rodhan and Gerard Stoudmann – “Globalization is a process that encompasses the cause, course and consequences of transnational and transcultural integration of human and non-human activities.”
According to UNESCO – “Globalization can be defined as a set of economic, social, technological, political and cultural, structures and processes arising from the changing character of the production, consumption and trade of goods and assets that comprise the base of the international political economy.”
Read more: Impact of Globalization on Public Administration
Historical Background of Globalization
Historically, globalization is not a new phenomenon but its changes can be investigated in terms of scale, speed and knowledge.
Within the framework of scale, economic, political and social relations between nations have become greater than before. Within the framework of cognition it considers the globe as a smaller space where every phenomenon and events has some consequences on economic, social and political life.
The term ‘globalise’ and ‘globalism’ have been offered and coined by Reiser and Davis in their work on planetary democracy in 1944 first and it has become a catchword for most scholars from all parts of the world after the collapse of Soviet Union and the end of Cold War in late 20th century. In the 1970s, the term evolved into ‘global village’ to reflect advances in technology that made international exchange and trade easier and faster.
In the publication of ‘War and Peace in the Global Village‘ written by Marshall McLuhan and Quentin Fiore the term globalization formally used in 1970.
Capitalism emerged in Europe and the Americas during the mid to late eighteenth century, accompanied by the development of democratic political systems. In the nineteenth and twentieth centuries, colonialism in Europe and Asia gradually declined and gave rise to new nations with trading ties to their former colonizers.. In the first half of the twentieth century, shifts in political power created a flow of international trade and it led to increased economic cooperation, legislation and military conflict. More nations began to utilize the necessity of the settlement of internation disputes.
In 1945, the World Bank was established, followed by the International Monetary Fund and General Agreement on Tariff and Trade and its first negotiation with 23 other participating countries in 1947. These all organization have provided the ground for globalization. On the other hand, the establishment of some organization and the joining of countries to this organization are considered as the start of accepting globalization. Especially the development of radio, television and most recently technology in some areas such as transportation, telecommunication and more importantly, informatics revolution in1980s and following spread of internet and network provided proper tools for development of this phenomenon.
