Globalization and Its Causes

What is Globalization? Describe the Causes of Globalization:

1. Free Flow: Globalization is free flow of Ideas, Capital, Commodities and People. If we think Globalization in terms of flow then it is not a new thing.

2. Not a New Phenomenon: Flow of Ideas, commodities capital and people has long been around. For example people from China, Central Asia, India, Middle East and Eastern Europe were well connected through the silk route, exchanging commodities like silk, Cotton, dry fruits and spices. Sea routes from western coast of India to the Roman Empire were used to exchange Spices with Roman wine and Gold.

3. What is unique? – The recent developments make Globalization a unique phenomenon because of its Scale and the Speed of the “Flow”

Causes of New Globalization:

1. Technology: Improved communication, Internet, Mobile Phones (Smart Phones), Satellite TV etc.

2. Improved Transport: Air ways, Water ways and Road Ways. Shipping management with technology has enabled commercial ports in dealing with huge amount of shipping goods more rapidly and swiftly.

3. Free Trade Organizations: WTO and IMF (Not UN Institutions- Bretton woods organizations.)

4. Availability of Global Finance: Global banking like World Bank and other banking corporations.

5. Growth of MNCs: Growth of Massive Multi-National Corporations in post war world is a unique feature of New Globalization. With Huge Assets and Turnover, International Operations Through a Network of Branches,  Unity of Control,  Mighty Economic Power, Advanced and Sophisticated Technology,  Professional Management, Aggressive Advertising and Marketing, MNCs are capable in influencing the flow of Money and power in world politics.

6. Most Important : The Awareness among people about the inter-dependency and the acceptance.