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What is globalization?

by Aaron Dollhausen

Created on: July 25, 2009   Last Updated: July 26, 2009

Globalization will continue as the forces which drive it become greater in both number and strength. Factors that drive globalization are non-governmental organizations, multinational corporations, and technology. States that choose to participate in globalization benefit.

In previous centuries, the very nature and definition of the term "international" was dominated by nations. Political alliances, treaties, agreements were principally decided upon by the governments of nations. Outside groups, such as humanitarian aid organizations had little influence on the decisions of state. Nowadays, the influence of nongovernmental organizations can be felt at the highest levels of national and international decision making. As Jessica Matthews points out in her article, "Power Shift," the North American Free Trade Agreement was modified to include provisions concerning a broad range of areas, such as health and safety, pollution, immigration, and debt relief at the behest of coalitions of NGOs.

Such influence by NGOs would have been unthinkable a few decades ago, but their financial resources and expertise, as Jessica Matthews also points out, rival those of some governments. Nongovernmental organizations are not limited by national boundaries or budgets limited by domestic economies. Technology, such as the Internet, has allowed their reach to be felt everywhere.

Not only are governments prone to the influence of nongovernmental organizations, but corporations are increasingly feeling pressure from them as well. The practice of certification was a result of such pressure. Certification holds global companies accountable for maintaining acceptable labor practices and minimizing environmental impact, as Gary Gereffi, Ronie Garcia-Johnson, and Erika Sasser point out in their article "The NGO-Industrial Complex."

Within the practice of certification there are four levels: First-party certification occurs when a company is responsible for and answerable to itself for compliance. Second party certification encompasses an entire industry or trade association. The Responsible Care program adopted by the global chemical industry is one such example of the adoption of a single code of conduct and reporting mechanism by the entire industry. Third party certification depends upon the imposition of rules and methods of compliance by organizations outside of companies or industries. The Center for Responsibility in Business monitors corporate behavior, publishes data, and maintains

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