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1. 
   pohnpei397 Teacher
   Community / Jr. College

   eNotes Editor

   Globalization is the process where the economies of various countries in the world become more and more connected to one another.  In a globalized economy, people from one country can buy goods quite easily from other countries.  Nowadays, people in one country can even buy services from other countries (because of the internet a company can have accountants in India, for example, do its taxes).

   The main advantage (economists say) is that people get more goods and services for a cheaper price.  Instead of having to buy something made in America, I can buy the same thing made in China, but cheaper.  That's good for me.  You can also say globalization helps countries like China get richer and eventually that will mean they'll buy more stuff from us (like computer programs and movies and such).

   The disadvantage that most people see is that this means just about any job (in a rich country like ours) can end up getting sent to another country.  So we have to compete with people who have way lower standards of living and can work for way less pay.  This really annoys a lot of people in the US and that's why we have a lot of calls for less in the way of free trade.

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   Posted by pohnpei397 on Friday November 6, 2009 at 6:40 AM
   
   

2. 
   krishna-agrawala Teacher
   Graduate School

   eNotes Editor

   Globalization refers to in which activities of large number of business enterprises is carried out in many different locations across national boundaries. It is much more than just importing or exporting from one country to another. True globalization involves one firm procuring form, manufacturing in, and selling in many different countries. There has been an increasing trend in the world towards globalization is characterized by trends such as:

   • Increased trade across national boundaries.
   • One company having subsidiary companies and plants in many countries.
   • One company procuring material required from multiple countries.
   • One company selling its products in many different countries.
   • Growth of joint ventures and technical collaborations between companies from different countries.
   • Lowering of trade barriers and simplified import and export procedures.

   Globalization offers many advantages to the people and businesses. These include:

   • Greater employment opportunities for people.
   • Availability of greater variety of goods and services to the consumers.
   • More competitive price to the competitors.
   • Ability of companies to achieve lower costs.
   • Access to bigger markets to business firms.
   • Faster and wider spread of new technologies across the world.

   Globalization gas some disadvantages also:

   • Unrestricted globalization can hamper the development of less developed countries.
   • Smaller firms may lack the resources to compete internationally and therefore may be forced out of business.
   • Countries become increasingly dependent on other countries for meeting their needs for goods and services. This can become a major disadvantage in situations like war.
   • Adverse economic condition in one country can escalate to other countries and may even adopt global proportion.
   • Globalization may also lead to faster spread of infectious disease, for people animals and plants. Such infection may be carried through, people or goods.

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   Posted by krishna-agrawala on Friday November 6, 2009 at 10:49 PM