Explain the concept of globalization. Critically discuss the main Essay

Explain the concept of globalization. Critically discuss the main features of globalization - Essay Example globalisation is also a product of investment and cultural exchange between nations. Although globalisation possesses many economic, amicable and political benefits it has negative impacts on most global economies as fountainhead as the environment e.g. befoulment and tampers with the sovereignty of unlike nations. sphericisation can be divided into five categories internationalisation, universalisation, modernalisation, liberalisation and respatialisation (Ferendinos, 20094 Clayton, 2004 274-294). internationalization portrays globalisation as an aspect of cross-border relationships while liberalisation discusses the aspect of creating open world economy by elimination of interstate movement restrictions among countries. Universalisation views globalisation as a process of distributing a wide flow of knowledge and products all over the world. International avocation as pects such as capitalism and industrialism determine the modernization aspect of globalisation (Egan, 2005 55964). Globalisation amplifys global economic interdependence. This involves the rise in the sensitivity of individuals and companies on the changes victorious place around the global business circle and the measures necessary for curbing possible challenges emanating from such changes. Global dependence can be unilateral i.e. a country depending on the global economy, or reversible i.e. a country benefitting from the global economy and the global economy benefitting from that country, in return. The free movement of goods created by the globalisation process provides multi-national corporations with an opportunity to establish a global competitive advantage. Globalisation is caused by various factors. The prominent cause of globalisation is the enhancement in technology which most multinational corporations have adopted in a bid to improve production. Technological progr ession has led to reduced cost of channelise as well as communication. The availability of cheap, rapid and reliable communication channels is the key to integrating of the international capital markets. This nurtures the growth of multinational corporations as they exploit intellectual property efficient in various locations from a central point. The change in lifestyle has also led to increasing make that makes most enterprises establish branches in other locations. The dimensions of globalisation include economic, political, psychological, sociological, anthropological, geographical and communications. The economic perspective of globalisation focuses on economic drivers such as trade, money, banking, corporations and capital. Economic dimension posits that globalisation has returnn the form of an increase in trade liberalisation, expansion of world markets and the increase in the international mobility of capital. This has made many countries to get along together under sup ranational trade unions such as the European Union as well as the formation of multinational institutions such as the World Trade Organisation (Ingham, 2004). Economic globalisation has also enabled firms gain the ability to locate their production facilities everywhere in the world. Most of these multinational firms take advantage of globalisation to target less developed countries that provide cheap labour which, in turn, reduces running(a) costs. Economic globalisation enables multinational corporations to establish their business close to the sources of raw materials, capital, technology and other business components thus improving