Globalization is defined as a system of increased interaction and global relationships between people, cultures and economic activities among the different states in the world. It is generally an exchange of ideas, cultures, behaviors, and language. Many people consider it a form of capitalist expansion that has led to the integration of local and national economies into one global, liberated market economy. As the world experiences rapid development in technology, transportation, and communication, globalization has expanded from its origins before the European Age of Discovery to the modern times.
Early Modern Globalization
The Early modern era commonly identified as proto-globalization is traced back to the years between 1600 and 1800. This phase initially introduced by A.G Hopkins and Christopher Bayly was marked by increasing trade link and cultural exchange (Sheffield, Korotayev, & Grinin, 2013) . The phase witnessed the rise of European maritime empires in the 16 th and 17 th century. The era is distinguished from the modern era based on the method of managing global trade, information exchange, and expansionism. The early modern globalization is also known for the rise of trade in newfound commodities particularly slave trade. During this period, Europe was able to take advantage of most resources within the western hemisphere. The European merchants were not the only ones involved in early modern trade; the era was graced by the Chinese, Indian and merchants from South East Asia.
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Modern Globalization
The modern era of globalization occurred between 1815-1870 (Broadberry & O'Rourke, 2010) . The period witnessed growths in globalization due to several factors. The end of the Napoleonic wars led to peace in Europe which led to most European countries moving towards greater liberalization. The cost of trade significantly reduced due to innovations in transportation technology. Advanced technologies especially I military practice saw the European stated open upmarket across the world, therefore, expanding their empires. The Industrial Revolution in the 19 th century (Sheffield et al., 2013) enabled globalization to take its form, with standardized production, increased demand and the use of economies of scale. Land transportation became cheaper due to the use of railroads and the invention of shipping containers helped advance commerce globally. The expansion of capitalism and neoliberal ideologies led to the rapid spread of globalization in the 1980s. The late 19 th and 20h century saw the increased connectedness of the world economies as well as the growth of culture. The World Wars and the Cold War slowed growth, but liberalization enabled rapid growth of globalization.
Effect of Globalization in the 21 st century
Globalization has ultimately affected all spheres of life in the 21 st century. The increase of human connections globally that is as a result of advances in communication technology has revolutionized the job market in both positive and negative ways.
Increased Competition
During the pre-globalized era, many markets experienced fewer options. Globalized markets, however, have led to big firms competing with smaller firms in the same arena while bringing services directly to people’s households. It has also seen consumers shifting to the role of suppliers and producers offering their services and goods online via social media, auction sites as well as online message boards.
Increased Stability
With the world’s largest markets being integrated, there is a varying degree of dependency between the states involved. This dependency, therefore, makes political instability or any other form of instability extremely undesirable (Bradley, 2013) . Since globalization has created interdependent markets, an occurrence in one market profoundly affects the economy of another market.
Employment and Unemployment
With more local and foreign firms developing further and being integrated, more job opportunities are created. Opportunities resulting from globalization included market research analysts, interpreters and translators, ICT professionals, customer service representatives and many more. All this lead to an increase in the people’s standards of living and eventually economic growth. Globalization has profoundly affected the 21 st -century workplace, as commerce goes increasingly digital, many firms are employing fewer employees. With an integrated job market, large employers may favor employees from other states who may be willing to work online at a lower fee, therefore leaving skilled workers in their countries unemployed
Cultural Erosion
Prior to the advances in technologies, many national cultures were unaffected by the outside world. The 21 st -century globalized world, however, has seen long-standing traditions being replaced by the latest technologies. As economic growth persists due to people purchasing desirable foreign goods, a higher standard of living and change social status emerge. This, however, has led to a decrease in cultural identity. According to Bradley (2013), a case study conducted in Nigeria in 2012 revealed that 40% of the respondents stated that they preferred foreign cultures as well as products.
Importance of Globalization
Many firms think of globalization as something that only affects multi-national corporations. Learning how to leverage globalization to expand a firm’s market is essential for all firms regardless of their size. Globalization is essential for the long-term success of any firm; this is because it opens up international access, lowers customer service cost, breeds more competition, and levels the competitive playing field (Quain, 2013) .
International Access
Globalization has led to the world increasingly becoming a “global village.” Many businesses are no longer restricted to only reaching out customers in their country and neighboring states. The development of digital communication has opened up a world to an international market that many firms can reach out to through social media, mobile marketing, and website content. For this reason, globalization has led to increased sales by firms which leads to increased profits.
Increased Competition
Globalization leads to increased international opportunities therefore increased competition. As a result of greater access to global markets, more businesses seek to gain a piece of these emerging markets. For this to happen, firms are forced to identify different ways to distinguish themselves /stand out from the competition. They mostly do this by finding a particular selling proposition as well as the provision of higher quality good/s services to make themselves worthy of being selected by the target audience.
Lower Customer Service Costs
For people who run e-commerce businesses, it is necessary for them to have a customer service department that is primarily concerned with handling customer’s orders and complaints. Globalization has made it possible for many firms to outsource their customer service especially to remote staff oversees that are responsible for handling customer inquiries at all times. This has proven to cost much less as opposed to hiring a company in the firm’s state to manage the business. Not only does it help cut expenses for firms, but it also ensures that customers in whichever country, receive outstanding customer service.
Level Competitive Field
Globalization has led to equalization in the international markets which allow small companies to compete with the giant players and get a piece of the global buying pie (Quain, 2013) . A good firm that took advantage of this is Uber, a firm that started small but leveraged mobile marketing and social media allowing its customers to hail rides via mobile devices.
Theories of Globalization
There are different perspectives, concepts, and ideas that surround globalization. This could be attributed to the fact that it has affected various aspects of human life including politics, economics, geography, culture, and religion. As a result, different theories have been formulated around it; they include Marxism, political realism, liberalism, constructivism, postmodernism, transformationalism, eclecticism, and feminisms (Pooja, 2014) .
Liberalisms
Liberalism views globalization as a market-led extension of modernization. Globalization according to liberalism is as a result if natural human desires for economic welfare and political freedom. The connectivity, therefore, is derived from people seeking to exercise their fundamental freedom and maximize material well-being. These forces in the form of technology advance and suitable legal and institutional arrangement interlink humanity across the planet.
Political Realism
This theory is derived from advocates who are interested in state powers, national interests, and conflict between countries. These advocates believe that states are naturally acquisitive and self-serving and therefore, headed for the unavoidable competition of power (Pooja, 2014) . Political realism states that the efforts of one state to achieve world dominance are received by collective resistance from other countries. In this case, therefore, globalization is seen as a strategy in the contest of power between different significant states in a contemporary world of politics.
Constructivism
This theory states that globalization is as a result of people mentally constructing the world with different languages, symbols, and interactions. Constructivism views globalization as a result of specific forms and dynamics of consciousness. All these patterns are derived from deeper cultural and socio-psychological forces. Through conversations and symbolic exchanges, people construct ideas of the world, rule that governs social interactions and ways of belonging in that world.
Postmodernism
The activists of this theory strive to understand the world in terms of knowledge power. Postmodernism states that power structure shape knowledge. The existing knowledge structures determine what can and cannot be known in a socio-historical context. Postmodernism goes beyond the superficial accounts is liberalist and political realism to bring to light the social conditions that have favored globalization.
Marxism
This theory is mainly concerned with the ways of production, social emancipation through the transcendence of capitalism and social exploitation that is as a result of unjust distribution. Marxists believe that the emergence of globalization is due to trans-world connectivity enhancing chances of profit-making and accumulation of surplus. The theory highly rejects the liberalist and political realist theories, claiming that globalization is the result of historically unique impulses of capitalist development.
Feminism
Feminism focuses primarily on the social construction of masculinity and femininity. The biological sex of individuals molds their general social order and shapes mainly the course of history globally. Women are mostly addressed in this theory and particularly their structural subordination to men. Feminism states that in global communication, women are violated and marginalized.
Transformationalism
Globalization has been defined ad an interconnectedness in cultural, political and economic factors across the world, given this definition globalization may be defined as a process that embodies a transformation in the spatial organizations of social relations and transactions. Transformationalists Such as Roseneau argue that globalization mainly occurs when states across the world experience advance change as they struggle to adapt to a more interconnected but uncertain world. Transformists view ay change or transformation in societies and nations to be an impact of globalization.
Eclecticism
Most theories state that globalization is as a result of technology advancement, national interest, and competition between states. Eclecticism does not state a single paradigm or assumption to globalization but instead draws knowledge for different theories to gain a greater insight into globalization. Most eclectics are criticized for lack of consistency in their thinking seeing that the theory is viewed as inelegant or complicated. Eclecticism does not provide a real system but derives knowledge from the existing philosophical beliefs with the belief that nothing is guaranteed.
Conclusion
Globalization has had a significant impact on the entire world, and its facet on human history is irreversible. It has affected people economically, politically, culturally and environmentally. From the early modern to the modern era, globalization has taken significant steps, some centuries saw a decrease in global interconnection due to wars, but regardless the process has evolved to what it is today. As technology advances with time, so does globalization, this is because technology leads to better communication and transportation which are all drivers of globalization. Despite the many perspectives of globalization, it is clear that it has led to numerous benefits empowering people, states and most businesses worldwide. However, the interconnectedness brought about by globalization has also led to numerous issues due to cultural and economic development around the world. Globalization cannot be ignored; it is a force that has defined economies and is continuously evolving as new technologies emerge.
References
Bradley, K. (2013, November 26). The Effects of Globalization in the 21st Century. Retrieved May 6, 2019, from https://classroom.synonym.com/effects-globalization-21st-century-13074.html
Broadberry, S., & O'Rourke, K. H. (2010). Trade and empire. In The Cambridge Economic History of Modern Europe: Volume 2, 1870 to the Present (pp. 100-01). Cambridge, England: Cambridge University Press.
Pooja. (2014, November 17). 8 Theories of Globalization – Explained! Retrieved May 6, 2019, from http://www.politicalsciencenotes.com/articles/8-theories-of-globalization-explained/642
Quain, S. (2013, December 11). Why Has Globalization Become so Important? Retrieved from https://smallbusiness.chron.com/globalization-become-important-77671.html
Sheffield, J., Korotayev, A., & Grinin, L. (2013). Globalization: Yesterday, Today, and Tomorrow . Isce Pub.
