What is globalisation and is it a new phenomenon?

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What is globalisation and is it a new phenomenon?

Many argue that the phenomenon of globalisation is new and that it is present in our lives only the past 20 years.  This essay will research the phenomenon of globalisation, pointing at its advantages and disadvantages.  This document is going to discuss how globalisation affects the global economy and how it is caused, as well as if it benefits only the developed world or if the developing countries gain as well.

Globalisation can be defined as the ability of firms to transfer raw material, capital and labour anywhere in the world, take advantage of domestic conditions where they might locate and sell wherever they wish (usually internationally) make profits and transfer them wherever they want. Another definition of globalisation is ‘‘The innumerable interconnections – economic, cultural, technological, political – which bind the local and national into the global community; the consequence of neo-liberal economic policies which see everything, including education, as a commodity to be sold to the global market place’. (Hicks D, in Hicks, D. & Holden, C.2007)

Also, as Garlake states, another opinion about what globalisation is, is the following: ‘…..the process through which individuals, groups, companies and countries become increasingly interdependent.  This growing interconnection has accelerated since the end of the Cold War in the late 1980s, and today we can feel its impact on our lives.’ (Garlake T. 2003)

         The OECD defines globalization as The geographic dispersion of industrial and service activities, for example research and development, sourcing of inputs, production and distribution, and the cross-border networking of companies, for example through joint ventures and the sharing of assets”. The International Monetary Fund defines globalization as “The process through which an increasingly free flow of ideas, people, goods, services and capital leads to the integration of economies and societies”. As regards if globalisation is a new phenomenon most books will tell you that it is not, but if you take into consideration soft drink companies or the automobile companies, which they have gone global in the decades of the 40s and 50s.  

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      However, according to an article that was published in the ‘Economist’ in July 20th 2009, globalisation is the more or less simultaneous marketing and sale of identical goods and services around the world. So widespread has the phenomenon become over the past two decades that no one is surprised any more to find Coca-Cola in rural Vietnam, accenture in Tashkent and Nike shoes in Nigeria.  According to Nick Stern the former Chief Economist of the World Bank globalisation is not new.  He actually suggests that there are three waves of globalisation among the years.   The first wave ...

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