What is globalization?
The IB Geography guide uses the IMF's definition of globalization:
“The growing interdependence of countries worldwide through the increasing volume and variety of cross-border transactions in goods and services and of international capital flows, and through the more rapid and widespread diffusion of technology” (source: IMF).
The key word is interdependence. This is not a new process - in fact, for centuries the world has become more and more globalized. But it is only in the last century that the connections between places have become fast enough and reliable enough for a truly global economy to open up. This has had social, cultural, political and environmental impacts.
Is it good or bad?
This depends on your perspective. In many ways it is a good thing - social development such as gender equality, improved healthcare, higher standards of education, better housing technology, and much more, often follows when a country becomes more globalized.
However, the current state of globalization is significantly linked to capitalism, and in particular the free market Western (meaning, European and North American) model of capitalism.
Major features of globalization
Globalization can be recognised as part of the 'global shift' in which industrialisation has moved from the traditional core of Europe and North America (along with some other places such as Japan) into newly industrialised countries (NICs) such as Malaysia and now China. Trans-national corporations (TNCs) are a major cause of this, as they look to produce their goods in the cheapest locations possible. The second driver of this is the shrinkage of distance - linked to the friction of distance theory - in which it is now increasingly possible to manufacture products thousands of miles from where they will be sold.
The IB Geography guide uses the IMF's definition of globalization:
“The growing interdependence of countries worldwide through the increasing volume and variety of cross-border transactions in goods and services and of international capital flows, and through the more rapid and widespread diffusion of technology” (source: IMF).
The key word is interdependence. This is not a new process - in fact, for centuries the world has become more and more globalized. But it is only in the last century that the connections between places have become fast enough and reliable enough for a truly global economy to open up. This has had social, cultural, political and environmental impacts.
Is it good or bad?
This depends on your perspective. In many ways it is a good thing - social development such as gender equality, improved healthcare, higher standards of education, better housing technology, and much more, often follows when a country becomes more globalized.
However, the current state of globalization is significantly linked to capitalism, and in particular the free market Western (meaning, European and North American) model of capitalism.
Major features of globalization
Globalization can be recognised as part of the 'global shift' in which industrialisation has moved from the traditional core of Europe and North America (along with some other places such as Japan) into newly industrialised countries (NICs) such as Malaysia and now China. Trans-national corporations (TNCs) are a major cause of this, as they look to produce their goods in the cheapest locations possible. The second driver of this is the shrinkage of distance - linked to the friction of distance theory - in which it is now increasingly possible to manufacture products thousands of miles from where they will be sold.