The phrase “World has become a global village” is very common now a days. The multinationals also stress upon “Think global”. These concepts relates to the globalization process that refers towards an ongoing process by which regional economies, societies, and cultures have become integrated through a globe-spanning network of communication and execution. The concept was first described by Charles Taze Russell in 1897 but the term was widely used after 1960s.
There were four aspects of globalization as indicated by the presenters i.e. economic aspects are the economic integration of the world economies that is said to lead the world toward prosperity and economic excellence. Environmental aspects such as global warming etc also lead to the unification of the world to think about the whole world about environmental issues. Political aspects of the globalization stress upon the cross country political cooperation and understanding of other political systems of the globe and the last cultural and social aspects of the globalization relate to the understanding of the other cultural norms and social patterns.
The history of the globalization is very much old indeed starting from the colonizing the people in other regions of the world as the British did. Australia and America were colonies of the Europe in the beginning. Moreover, golden Islamic age also laid the foundation for the globalization as the Muslim traders and preachers travelled across the world to trade and spread their ideology. In British Empire the East India Company and various other companies exploited the potential and richness of the sub continent but this thing also contributed towards the concept of globalization. After World War II, the evolution of the global financial institution such as IMF and World Bank also led towards the unification of the world. The recent developments include the inauguration of WTO and European Union.
The things contributed towards the globalization also include free trade areas under different treaties as NAFTA, SAFTA etc; evolution of the custom unions and alliances; development of common markets and economic unions. European Union is the most popular example of all this.
The global institutions supporting this concept are WTO main function of which is to liberalize trade, elimination of various quotas and settlement of trade disputes among the countries of the world; and IMF which formed 1944 as result of Bretton woods conference to oversee the monitory issues of the world and supporting the under developed countries by providing them loans; and UNCTD United Nations Conference on Trade and Development established in 1964 as a permanent intergovernmental body. It is the principal organ of the United Nations General Assembly dealing with trade, investment, and development issues
The most quoted example of the financial and economic integration is European Union which constitutes 27 member countries sharing common currency (for 16 countries), monetary policy, trade mechanism, and foreign policy.
Companies go global because they want to be reactive as to respond to the low trade barriers, customer demand in global market, local competition etc or some companies adopt proactive approach to exploit growth opportunities, economies of scale and recourse assess and cost saving such as utilizing the cheap labor force.
The hurdles faced by the globalization process on its way are political and regulatory constraints of each country, currency and market differences, cultural and social disparity, ethical and environmental perspectives which largely are country specific.
Some talk about the fruits of the globalization that can be reaped in the shape of economic and political excellence and other have some reservation regarding the destructive effects of the globalization on the world as it is argued that the all upsides are for the developed countries who are so called drivers of the globalization, moreover the biased role of the IMF and World Bank toward the less developed courtiers also raise the question. Some people are of the view that bubble of the globalization is a conspiracy of the Jews to take over the world and its resources which are concentrated in less developed Muslim countries.