Characteristics
Globalization has become identified with a number of trends, most of which have developed since World War II.
Economically:
– Increase in international trade at a faster rate than the growth in the world economy.
– Increase in international flow of capital including FDI;
– Erosion of national sovereignty and national borders through international agreements leading to organizations like the WTO and OPEC.
– Development of global financial systems.
– Increase in the share of the world economy controlled by MNCs.
– Increase of economic practices like outsourcing by multinational corporations
Culturally:
– Greater international cultural exchange.
– Spreading of multiculturalism, and better individual access to cultural diversity.
– Greater international travel and tourism.
– Greater immigration.
– Spread of local foods such as pizza and Indian food to other countries.
Development of a global telecommunications infrastructure and greater transborder data flow.
Increases in standards applied globally; e.g. copyright laws and patents.
Formation or development of a set of universal values.
The push for an international criminal court and international justice movements.
Some argue that even terrorism has undergone globalization, with attacks in foreign countries that have no direct relation with the own country.
Barriers to international trade have been considerably lowered since World War II through international agreements such as GATT. Particular initiatives carried out as a result of GATT and the WTO have included:
Promotion of free trade
Of goods:
– Reduction or elimination of tariffs; construction of free trade zones.
– Reduced transportation costs, especially from development of containerization for ocean shipping.
Of capital:
– reduction or elimination of capital controls.
– Reduction, elimination, or harmonization of subsidies for local businesses
Intellectual property restrictions
