Globalization Meaning, concept, Definition, Types & Benefits

Introduction: The collapse of communism in 1989 led to a number of new development and made those that were already underway more conspicuous. Economists noted the rapid advantages being made by the market economy.

The expansion of trade between countries even more investment in others, deregulation, privatization of former state enterprises and the liberalization of capital flows.

In other words, the market mechanism was being embraced on a worldwide scale phenomenon often referred to now as economic globalisation.

People everywhere were confronted with the effects of the emergence of modern communication technologies and electronics. Every country assumed to want to associate with the first world, a decision in favour of the market economy and democracy.


The term globalisation of the economy implies that the becoming and making worldwide of various phenomena has accelerated at such a pace that is giving rise to a variety of new phenomena.

We should first be clear with the three components of the primary globalization process i.e political, economic, and technological globalization.

The Primary Globalization Process:

The becoming and making worldwide that was outlined in the introduction is an age-old process. However, the word globalization has only gained currency since 1989, the year in which globalization became manifest. Its roots were examined as if it was a new plant, a new tree, and the roots extended faster and deeper than the visible part of the plant. From a historical perspective, it can be compared with voyages of discovery. Some people call globalization westernization.

In the period after world war 2, the emergence of the concept of globalization was marked by a number of signals, each of which proclaimed that in a figurative sense the world was getting smaller.

The perception of globalization is currently defined as a primary globalization process that has importance for society and administration.

A. Political Globalization:

Although technology is often considered the driving force behind the globalization process, here we shall start with politics ( or ideology ) because the word globalization only gained currency after the demise of communism.

The end of the communist era, which became tangible with the destruction of the Berlin wall at the end of 1989 was also the end of an era in which politics divided the world into three worlds.

  • The first world, the so-called free world.
  • The second world is that of communism.
  • The third world is that of developing countries. 

The division has dominated the political map since the united nations charter of 1945. Having defeated the Axis powers, the allied forces, which comprised the soviet union under the leadership of Joseph Stalin collapsed. This was the start of the cold war.

political globalization

An important component of political globalization is international organizations. As the contacts between nations intensified because of the increasing mobility and internationalization of trade, capital, and citizens. There was a growing need for durable and basic contacts and consultative bodies.

Diplomats and embassies were the first steps in that direction. Then as the need for contacts got stronger, there was also an explosive growth in the number of specific inter-governmental organizations and institutions,

The result of the institutions that were exclusively intended for their own world Nato, Warsaw, G7 etc.

B. Economic Globalization:

It is time to examine the globalization of the economy in more detail where we stand in the third decade of the present century, and why so many analyze the theory of globalization with economic globalization.

The historic survey called for the shift of the economic power centre, long ago, from the Middle East to Europe, then from Europe to the US and now possibly from the USA to East Asia is only a norm of economic history. With each move of the power centre, a greater economic interwovenness appeared in the world economy. Rapid economic globalization taking place.

After world war 2 economic globalization was given an enormous boost. Not only did trade become worldwide but also production and consumption.

As a result of the enormous significance and weight of the economy in our present society, the aspect of globalization stands out. Trade over enormous distances has long been a feature of the economy.

When during world war 2, the stock was taken in the dark first half of the 20th century, the decision was made at least in the first world to systematically promote free trade by establishing the GATT. Trade and Development Conference of the United Nations (UNCTAD). In the tradition of the United Nations, this was a political forum.

economic globalization

Free trade and the free flow of capital both helped to further the globalization of the economy. The creation of a global capital market has been made feasible by this deregulation.

The North American Free Trade Association (NAFTA) was established in America. In Latin America Mercosur and in Asia the equally modest Asean was created for economic globalization.

C. Technological Globalization:

Both the economic world and the process of globalisation, or the process of being and creating on a global scale, are impacted by technological advancement. These two have always interacted with one another.

The improvement of communication from sailing the oceans to radio-telephony, satellites, and glass fibre has made a direct contribution to becoming worldwide and assisted in the globalization of the economy.

Technological globalization

Technological globalization is at the heart of the triangle of the primary globalization process. Remember that economic and political globalization were the other elements in the triangle.

D. Cultural Globalization:

Some people also speak of cultural globalization. What exactly is meant by this? We might assert that the phenomenon known as the “Americanization” of our consumer and entertainment cultures is already implied by the globalisation of the market economy and, by extension, of the consumer society.

So, this type of globalisation is a result of the globalisation of commerce and technology. However, cultural globalization has no roots, people prefer to think in terms of our neighbourhood, our city, and our country rather than in terms of our world.

This implies that cultural globalization remains something superficial. Although people’s cultural identity may sometimes cause them to react violently against globalization.

Consequences of Globalization:

Having had a close root at the primary globalization process in the preceding section, we shall now pay attention to the consequences of this process. 

We can distinguish a number of frictions, which subsequently produce societal counter-effects and administration reactions. If in a globalized economy countries are compelled to enter into political and administrative consultation, there will be reasonable friction. We’ll briefly discuss the causes of these conflicts as well as some pertinent issue areas.

1. Weaker Administration Power Of Nation States:

Globalization weakens the administrative power of states. Why do governments get weaker?

  • Borders are no longer boundaries, especially with respect to info, crime, and the flow of money.
  • A number of disputes can only be pushed forward in collaboration with other countries.
  • Short-term thinking caused by the election method.
  • There is also an assessment with respect to extortion and lack of integrity.
  • There is the disappearance of external threats, especially communism.

2. Need For International Coordination Between Nation States:

  • Because there are phase differences in economic development.
  • Because there may be distinctions in priority with respect to political-social aims.
  • Because there is a difference in cultural background and social discipline that is deemed necessary.

3. Uncertainty About the Delimitation Of Government Tasks:

The third type is the result of uncertainty about what democracies and governments are to do in new globalized situations outside their own territories.

The most important example of this has to do with the fundamental task of governments which is to reduce and prevent violence wherever it occurs. Generally, this disturbed the responsibility of states for security within their own borders and mutually among states. Nowadays Tv images seem to force a sense of responsibility on governments for violence in other countries ( the former Yogoslavia, Somalia, Rwanda ).

In addition, there is a tendency in large countries especially the USA, to claim the right to extraterritorial application of their laws because of their leading role in the field of security.

4. Establishment Of Social And Environmental Standards:

There are many reasons for creating international norms and standards. They may pertain to anything from human rights to making conditions with respect to the latter.

We see that first slavery was abolished and later labour are apartheid. This is now generally accepted. The International Labour Organization (ILO) has been operative since 1917 of much more recent date but analytically comparable to social standards is the development of environmental standards.

5. Regionalization:

Regionalization results from problems connected with free trade, on the one hand, countries want to open up their borders, promote free trade, and want to profit from economies of scale, on the other hand, they have administrative and political problems to cope with, which have already mentioned above under 2 heading.


In such a situation regional blocks are the valid choice. The most important of these is the European community, which is now the European Union. In addition, there are the North American Free Trade Association (NAFTA), Mercosur, ASEAN and others.

6. Equity:

A number of highly developed economies appear to be experiencing significant employment issues as a result of economic globalisation. In the sense that particular groups are denied the right to employment, this is frequently referred to as exclusion.

The extent to which this is felt to be a problem differs greatly between the US and Europe. In any case in Europe and perhaps in Japan, in the future exclusion or the lack of inclusion discredits economic globalization and engenders fear.

7. Security, Human Rights & Development:

The UN together with the security council was founded in 1945, its aim was the promotion of peace (non-violence), development, and human rights. Keep in mind that the responsibility for peace is the first category specified in the UN charter. This might come in many different shapes.

First, there is frequent talk nowadays of conflict prevention, conflict resolution and exit policies in international politics. The issue of the non-proliferation of military nuclear technologies and chemical and bacteriological warfare is a second concern connected to security and globalisation.

Thirdly, there is the issue of so-called rogue states, who engage in state terrorism by committing crimes and using terrorism outside of their own boundaries to achieve their own political objectives.

Counter Effects:

Globalization gives rise to counter effects in society. In order to understand these societal counter effects, one should realize that there are three important aspects to globalization.

  • Individualization leads to me society which takes first place.
  • The ever-growing significance of the economy and technology.
  • The increasing influences from the rest of the world.

The following phenomena can be observed and classed under counter effects.

  • A revival of a national and cultural sense of identity.
  • A reaction against the surfeit of political thinking at a great distance from the citizens.
  • A reaction against market-oriented thinking.
  • A religious revival (for example sects, fundamentalism, and new age etc).

A revival in the science of institution-oriented and holistic thinking.

Administration Reactions:

In the light not only of these last mentioned societal development which swims against the tide of globalization but also in the light of the previously mentioned frictions, we can mention a number of measures that aim as far as possible to counteract these frictions and counter effects.

The globalization of justice has not only given rise to a spectacular increase in the number of international treaties, covenants, and agreements but also to the international comparison of judicial systems becoming an important field of research for lawyers and in line with this international arbitration.

The following processes are examples of more societally oriented administrative reactions.

  • In contrast to administrative sealing up, there is a tendency towards bringing politics as close to the citizens as possible.
  • At the business level, there is decentralization. Industrial organizations are getting less hierarchical they are becoming flattered instead.
  • Regional trade blocks can create a level playing field, so that social and environmental dumping between member states is driven back. 

What is globalization example?

Good example of globalization is that, for example most of the oil is produced in Middle Eastern countries but it is consumed across many countries of the world. So we can call it globally consumed commoditty.

What are the 3 types of globalization?

Political, Economical, and Cultural globalization are the 3 types of globalization.

What is the purpose of globalization?

With lower operational expenses and a stronger competitive position, globalisation aims to give businesses access to more markets for their goods, services, and customers.