Process of Globalisation

Explanation of the process of globalisation

The process of globalisation is the accelerating techniques, movements, and exchanges of goods, services, technologies, cultures, and human capital worldwide.

In other words, globalisation drives global interconnectedness through increased interaction of these processes and movements, leading to more significant progress in the regions.

Globalisation increases relationships between regions worldwide, connecting all societies so that events in different places are no longer isolated but are recognised and shaped by what happens miles away.

Globalisation promotes the convergence of the world's different cultural and economic systems. That results in significant interaction and integration of the countries—the greater the interconnection between countries, the greater the level of globalisation.

Features of the globalisation process

Let's dive a little deeper into the features and consequences of globalisation, just mentioning the most common ones to understand the globalisation process much better.

The features of globalisation, include:

• Free trade

• Global products standardisation

• Economic reforms

• Sharing of culture and ideas

• Increased collaborations between people, countries, and industries

• Freer movement of labour

• Global production networks

• Spread of democracy

The following are some of the consequences of the globalisation process:

• An increase in the global commodity market

• Reduction of import regulations

• Cultural homogenisation

• The imposition of Western customs on the rest of the world

• Its market determines economic and social needs

• Entry and growth of the role of transnational corporations

• Reduction of the decision-making power of governments

• Global interconnectedness in communications and technology

• Impact on the environment

Transnational corporations' role in the globalisation process

Transnational corporations play a crucial role in globalisation because they have been the drivers of interaction between regions by relocating, trading, and manufacturing in different countries.

Transnational corporations also consider external factors that can influence business, such as national procedures, how the government has conducted its internal and external trade, etc. This is very important because a country's customs and procedures can influence international and national trade.

The current economic and trade interaction system results from the acceleration of globalisation—transnational corporations from the world economy through international business and trade.

Due to the influence these corporations have on the economy, corporations build new commercial interactions, integrating the world economy and expanding their power, from regional interconnection to import and export transactions of goods and services and unifying markets. When a transnational corporation enters a market, it creates new opportunities to attract resources and investment in international markets.

So, to simplify the role of transnationals in globalisation, we can conclude that transnational corporations affect our lives due to the globalisation process. They determine how to solve economic and social problems, and their influence represents a form of economic globalisation.

According to the conditions shaped by governments, transnational organisations will adapt to different laws, markets and knowledge to function optimally in a territory and thus shape the requirements of the functioning of world trade.

Corporations have a significant influence on the world economy, growing every day. Foreign investment is a tool to foster industrialisation and progress in developing countries, achieving savings, resources, and increased capital for those countries due to their entry into new markets.

Overall, as part of its process, globalisation has brought trade between industries in different regions, which has created opportunities and reduced the economic and accessibility gap to goods and services between other areas.

Examples of transnational corporations and their influence on the globalisation process

Some examples of globalisation with transnational companies are visibly known in all parts of the world. Perhaps most known is McDonalds.

Fig. 1 McDonald's, a transnational example of the process of globalisation

Importance of political globalisation

There are several consequences of political globalisation which show why it has such great importance. Firstly, political globalisation means that politics has begun to take a higher place than just “the Nation State”. They were no longer seen as an organised nation but as part of political integration schemes and international organisations.

Fig. 2 The European Union as an example of political globalisation

Now, political activities and issues are concerned within and beyond national borders through global movements and non-governmental organisations.

Civil society has also organised itself into international movements with global alliances with different organisations, whereby activists have formed among citizens with particular purposes and an organised way to achieve goals.

They use an extensive global communication system and exert pressure on different political actors to achieve what they want and be heard by national governments and the integration of countries.

As for the importance of political globalisation, the development and influence of international organisations reflect political and governmental action at the international level.

Thanks to globalisation, governments' efforts are not isolated or known only to their nationals. The whole world has access to data on the political management of each country, and the political situation of the territory, whether good or bad, is also recognised worldwide.

That is important because it allows for international monitoring of good political and governmental practices and allows organisations or other countries to take action concerning a nation and its political context.

Political globalisation began its rise after the Cold War when the leaders of nations began to create systems that extend national functions to the level of international debate.

A major impact of political globalisation is that world leaders are interconnected and can easily communicate in times of crisis or tension. It is also possible to solve problems and promote democracy through globalisation. The process of globalisation has contributed to the spread and promotion of democracy.

It has reduced boundaries and borders due to wars, making it much easier to avoid or resolve national and international conflicts because the whole of society will be aware that such conflict exists. Governments and organisations will make decisions to solve it.

Before globalisation, governments and politics were dealt with at the national level, so each country had complete jurisdiction over its policies and had full control over its regulations. But now, not only can each government's information be easily accessed, but it can internationally interfere or issue warnings when a government is violating the rights of its citizens.

Globalisation brought a significant differentiation for politics and the integration of nation-states after the Second World War. However, in general terms, political globalisation also has a particular concept. To define it, we use R. Thompson's idea:

Merits and demerits of the globalisation process

The process of globalisation has brought about different changes in the history of the world as we know it. It has influenced technology, economics, politics, and communications.

It is also essential to know that globalisation is a process that cannot be "labelled" as good or bad. However, it is a fundamental part of the development of humanity, and it is well worth studying it objectively for what it is to make the most of the concept.