Globalisation & process Essay Example for Free

Globalisation process Essay Globalisation is the process by which people,knowledge,goods,ideas,money move with increased interconnections among the populations of the world. The international relations and world politics evident in the last half of the of the twentieth century were strongly informed by a global factor known as the cold war. This period coincided with the decolonization of Asia and Africa. The cold war also coincided with the collapse of the socialist movement as it was facing a lot of problems. Its in this period that globalisation reached unprecedented dimension whereby there was the globalization of production,scientific knowledge,technological advances,information,finance and due to this the worlds market economies really started picking up. The falling of the socialist movementment brought about increased openness and thus there was a change of focus from maintaining the balance of power betweeen the east and the west ;to a more global approach style of management . The establishment of an international market economy was marked by unanticipated changes in global affairs that promised to bring another side between states and markets. This was evidenced by the breaking of international barriers whereby trade was boosted in the sense that many companies began to pursue global strategies that would make them to have competitive advantage. However,some of the industries in the world did benefit more from globalisation than others. This was also seen in some countries having comparative advantages over others in certain industries. Trade in goods was accompanied by substantial trade in asssets. Through globalisation, there was large production of goods and services as there was a ready market for them. Innovations in inventory control and better accurate routing made it cheaper for countries to bring locally manufactured goods and services onto the world market. These goods would move between national markets with ease as trade barriers became lowered. This made our economies grow due to the international interactions. The ongoing revolution in computing and communication that started in the second half of the twentieth century did greatly enhance connections between nations. For instance, the speed at which capital could cross national borders became higher and thus these funds could be taken and put to the most profitable uses. All this was brought about by the lowering of the costs of transacting and sharing information,technology (Stiglitz 42). More to that this ,this internationalisation of the information services did contribute much in the exchange of information and technology thus reducing market frictions and this inturn led to the expansion of the world markets as well as the transmission of popular culture. Having looked at the above,its clear that globalisation is inevitable and its being driven by the reduction in the costs of transportation and communication and economic liberization. It has made the world to be interconnected and integrated through improvements in technology,transportation and comunication. All these developments have let to large economic gains,reduced povery,improved living conditions . References Stiglitz, J. (2003). International economy. New york:Ny Capstone publishing