Dimensions of Globalization.

Economic dimension of globalization:

                                     

      

           A general accepted definition of economic globalization is “the increasing integration of national economics into expanding international market". This expansion of markets means that the free movement of goods, services, labor and capital is likely to result in a single global market in inputs and outputs. It is understood as major increases in worldwide trade and exchanges in an increasingly open, integrated international economy. Economic globalization is based on the ideology of neo-liberalism.

 
Benefits of economic globalization:

          The growth in global markets has helped to promote efficiency through competition. Global markets also offer greater opportunity for people to tap into more diversified and larger market around the world. It means that they can have access to more capital, technology, cheaper imports and larger exports market.

           Trade liberalization increases economic opportunity for consumers and producers. It acts  as an instrument to combat poverty. It usually tends to increase not only income but also provide some additional resources in order to overcome the issue of poverty.

          Openness to foreign direct investment (FDI) can contribute to economic growth by stimulating domestic capital formation and improving the efficiency and productivity with the help of greater access to new technologies.

          Economic globalization can enhance the opportunities for the poor countries to assess the formal financial system. It is widely accepted that openness has long been seen as important element of good economic policy and trade liberalization as necessary step for achieving it.

          Economic globalization increases the income of the people and hence increases the GDP of the nation. It enables to create more employment.

 

Political dimension of Globalization:

          With more and more integration of global economy and other global trends, political activities are increasingly taking place at the global level. Under globalization, politics can take place above the state through political integration schemes such as through intergovernmental organizations like the international monetary fund (IMF), the World Bank and the world trade organization (WHO). Political activity can also transcend national borders through global movements and NGOs. Civil society organizations act globally by forming alliances with organization in other countries, using global communication systems. The political dimension of globalization looks at political arrangements beyond the nation-state. Political globalization is the intensification and expansion of political interrelations around the globe.

          According to David Held, by political globalization we mean “the shifting reach of political power, authority and forms of rule.” He clarifies three characteristics of political globalization.

First, political relation become closely and deeply linked presenting a challenge to domestic/international distinction of politics.

Second, there are international organizations and regimes, non-state actors, transnational bodies or national pressure group, whose activities spill over into the international arena.

Third, the present arena of global politics also involves the emergence of regional and global laws which challenge state sovereignty.

 

Consequences of Globalization on state:

          The state’s role is changing as a result of globalization. States are now more concerned about their role as actors in global markets to protect national economic well-being. They are less concerned with political sovereignty and security than they were earlier. Foreign trade investment or finance can play a contradictory role with respect to national sovereignty. Globalization can have different consequences foe different states. As states differ in the degree of international power, they can assume the role of agents of globalization as well as become its passive victims. Some underdeveloped countries have to sacrifice their hard-won independence require rigid state boundary while the demand of economic growth require porous or at least, opening up of state boundaries.

 

Cultural dimension of globalization:

         Globalization is also a social and cultural process in which individuals of different cultural backgrounds interact with each other in all spheres of life more intensively than before. This integration is increasingly exposing people to different ways of thinking, different cultural values and new forms of family life. Globalization also covers the increasing international trade in cultural products and services such as food, fashion, movies, music, sports, luxury goods, publication etc. Exposure to foreign cultural goods frequently brings about changes in local cultures, values and traditions.

 

Impact of globalization on culture:

          The impact of globalization on culture is immense and diverse. It has influenced the cultural aspect of people in different ways. Globalization offers the potential to enrich the world culturally. The opportunities for cultural exchange brought about by globalization can help promote tolerance and diversity among different communities. It gives a vision of multi-cultural “global village” where ideas and practices can be freely exchange.

          Global culture is opposed to the idea of unified locality, a bounded entity, occupying a fixed political territory predominantly the nation state. Global connectivity furnished people with a cultural resource that was lacked before its expansion.

 

Technological dimension of Globalization:

           The most important development in the context of globalization is the rise of information and communication technology (ICT). In fact, it is the ICT which has turned the world into a global village. It is the driving force behind globalization. The advancement in internet based tools over the past three decades, such as social networking websites and other applications are changing the way, people use and share information for personal, political and commercial purposes.

          Developments in information and communication technology have changed our way of life whether it is at work, at home or at leisure. The growing success in  ICT initiatives have also brought the global community closer. It has radically changed our views about boundaries between organization and the boundaries within the organization. Development in the ICT has facilitated efficiency gains in all sector of the economy. IT (information technology) drives the innovative use of resources to promote new products and ideas across nations and cultures regardless of geographical locations.