Globalization refers to an increasing amount of global interconnection, especially in business and economic activity. Some important aspects of globalization are:
- Communication: Seamless instantaneous global communications in multiple modalities are a key element of the infrastructure of globalization. All other aspects of globalization depend on the ability of people to communicate around the world by means such as telephone, internet, fax, and broadcast media.
- Transportation: For goods to be shipped around the world, a transportation infrastructure, include land, sea, and air transport and accompanying logistical systems, is needed. Just-in-time manufacturing and complex supply chains make multinational companies especially reliant on logistics.
- Supply Chains: A globalized economy is one in which inputs and supply chains are sourced from around the world, taking advantage of low-cost producers and manufacturing in low-wage countries to reduce costs.
- Markets: In a globalized economy, many products and services are sold far from where they are produced.This...
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- allows for economies of scale in production and also creates greater consumer choice.
Globalization exists in many forms and has many aspects. Among them are:
- Economic aspects. This is, perhaps, the best known aspect. The world economy has become more integrated with a great deal more trade going on between countries. More and more kinds of jobs are being done across international borders due to improvements in communications. In addition, the economies of various countries have more of an impact on the whole world economy than they used to. For example, economic troubles in Portugal can shake markets in the US.
- Political aspects. The world is in some ways becoming more politically globalized. Institutions like the International Criminal Court are creating a system in which more and more countries are bound by common laws.
- Social aspects. With more global trade comes more exporting of culture. English and Spanish soccer teams are hugely popular around the world. American movies and the NBA are similarly worldwide entertainment options. This creates a situation in which the cultures of more countries have more in common than they once did.