Definition
It defines the interaction and dependency of one country’s economy to another in the world. The interactions are different and can include production, financial transactions, trade, education, politics and many other aspects. The impact of globalization increased when newer and faster invention were made in the communication and transport sectors ( Kriesi, Grande, Lachat, Dolezal, Bornschier, & Frey, 2008) . Globalization can be traced to ancient history when different kingdom depended on other kingdoms for the development of certain products such as swords and shields. However, it became fully developed in the 19 th and 20 th centuries. Globalization has truly changed all the global operations. The challenges that initially hindered human’s ability to interact or communicate with other people across the globe have greatly diminished. It has become ingrained in all sectors of the global economy: social, economic, business and government.
Extent of Globalization
The past few decades have seen major milestones in information technology as well as advancements in globalization. Innovation has been the primary drive behind globalization in the world. Economies have become interdependent, and an effect on one country has various impact on the economies of other countries e.g. BREXIT. Globalization initially benefited the global north countries in Europe and America, but it later benefitted the global south countries in Africa and Asia. The developed countries such as the Britain and Germany can sell their machines and equipment to the less developed countries while the countries in the less developed regions can export their agricultural and raw mineral produces to the developed countries ( Pauly & Reich, 2007) . When certain countries go bankrupt, they can receive financial aid from the countries with a surplus. The cultures and local traditions of different people change while they interact with people from different economies. Currently, people can speak different languages from different countries because of globalization. Hence, globalization is based on four main aspects:
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Free transfer and movement of human labor among the different countries.
Free transfer of technology among different countries.
Free movement of services and goods because of the minimized trade barriers
Creating environments that enhance the free flow of investment and capital among the various countries.
Advantages and Disadvantages of Globalization
Globalization has various merits such as increased employment opportunities. As more corporates are setting up bases in different countries, they increase the employment opportunities that are available for the local population. Globalization has improved education opportunities in the developing nations because they can travel or get scholarships to study in Europe or the US. There has been increased trade and flow of information ( Amin, 2007) . The prices of series and goods have reduced because of comparative costs. Competition has made the various companies to reduce the prices of their goods in comparison the major global prices. It has also led to minimized cultural barriers as people move from one area to another. When different cultures interact, some of the negative perceptions or myths can be demystified.
Nevertheless, globalization has different demerits such as environmental degradation. The weak regulatory policies in the developing nations can be misappropriated by multinationals. There have also been unfair working conditions when different multinationals take advantage of developing countries to cut their production cost while offering poor working standards and pay. It is a major belief that globalization increases employment but the latest machinery reduce the need for human labor. Globalization has increased income and household inequalities across the world ( Amin, 2007) . Furthermore, globalization threatens the existence of small scale industries that do not have the resources to compete with the larger companies. Globalization has led to the transfer of deadly diseases that are endemic in one region of the world to other regions e.g. AIDS and Zikka Virus.
References
Amin, S. (2007). Capitalism in the age of globalization: The management of contemporary society . Zed Books.
Kriesi, H., Grande, E., Lachat, R., Dolezal, M., Bornschier, S., & Frey, T. (2008). West European politics in the age of globalization (pp. 154-182). Cambridge: Cambridge University Press.
Pauly, L. W., & Reich, S. (2007). National structures and multinational corporate behavior: enduring differences in the age of globalization. International Organization , 51 (01), 1-30.
