by Aniruddha

Created on: October 08, 2009   Last Updated: October 09, 2009

Globalization is a process model by which the regional economies and societies have become integrated with each other to create a globe spanning network of exchange. Globalization can refer to manufacturing as well as service industries. Globalization is not a new phenomenon but has its root since the middle ages when Indian and Chinese goods like silk and spices were sold in the European markets.

Globalization as we know it now, began with the start of the Industrial age. Industries started producing in mass quantity and with no regional market for their products, they started to export goods to other regions. As the transportation became more efficient and more affordable, companies wanted to move their production location at places with affordable labor.

Hence, they can produce at less cost and selling in a demanding market. This results in more money getting generated in the economy. With Free Trade Agreement, the industries were free to move between different countries, thus bringing prosperity and wealth to all.

People who say no to globalization are people with a myopic view of the economy and fail to see the prosperity that globalization brings. It is because of globalization that companies are able to offer their customers better products at affordable prices. It is because of globalization that the companies are able make more profits and then pass it on to the investors and employees as salary increase or bonuses.

It is because of globalization that the developing countries are able to offer better jobs and thus avoid emigration of its citizen to developed countries. It is because of globalization that the world is becoming less polar with an more even distribution of wealth and power.

With globalization, comes the dependency of one country on other. It is getting to know a different country better. This causes the countries of the world to get a share of the world wealth and the power and increase the diversity. Due to this, it gives the countries less incentive to attack the other country and hence creating an atmosphere of peace and harmony.

The example of this is the relationship between India and China. More the trade happens between these two countries, more are the chances that they resolve their difference with bilateral talks rather than armed conflict.

Thus, globalization creates a level playing field for all world economies. As globalization opens more opportunities, it will bring more diversity and thus creating world peace and prosperity and make the world a better place to live.

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