Kinds of Globalization

Globalization in a literal sense is international integration. It can be described a process by which the people of the world are unified into a single society. This process is a combination of economic, technological, socio-cultural and political forces.

The term globalization generally means integration of economies and societies through cross country flows of information, ideas, technologies, goods, services, capital, finance a people. The word globalization in what Noam Chomsky calls a doctrinal sense is also used to describe the particular neo-liberal form of economic globalization.

Globalization consists of the liberalization components. First, it is reduction of trade barriers so as to perform free flow of goods across national frontiers. Second, it is creation of an environment in which free flow of capital can take place among.

Essential features of globalization encompasses as follow:

  • Operating and planning to expand business throughout the world;
  • Erasing differences between domestic market and foreign market;
  • Buying and selling goods and services from or to any country in the world;
  • Establishing manufacturing and distribution facilities in any part of the world based on the feasibility and viability rather than national consideration;
  • Product planning and development are based on market consideration of entire world;
  • Sourcing factors of production and inputs like raw materials, machinery, finance, technology, human resources, managerial, skills from entire globe;
  • Global orientation in strategies, organizational structure, organizational culture and managerial expertise;
  • Setting mind and attitude to view the entire globe as a single market.

There are kinds or different aspects of globalization mentioned below:

  • Economic globalization, which the realization of a global common market, investment and production based on the freedom of exchange of goods and capital.
  • Technological globalization, which is related to companies with latest technology enter the foreign market and introduce their latest technology in foreign countries also. Technology elates to transportation, communication and information.
  • Political globalization, which is the creation of a world government which regulates the relationships among nations and guarantees the rights arising from social and economic globalization.
  • Cultural globalization, which leads for the growth of cross-cultural contacts and it embodies cultural diffusion.

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