globalization causes essay

What caused globalisation?

Readers Question: Evaluate the significance of the factors which have contributed to globalisation.

Globalisation is not a new phenomenon. The world economy has become increasingly interdependent for a long time. However, in recent decades the process of globalisation has accelerated; this is due to a variety of factors, but important ones include improved trade, increased labour and capital mobility and improved technology.

Main reasons that have caused globalisation

Improved transport , making global travel easier. For example, there has been a rapid growth in air travel, enabling greater movement of people and goods across the globe.
Containerisation . From 1970, there was a rapid adoption of the steel transport container. This reduced the costs of inter-modal transport, making trade cheaper and more efficient.
Improved technology which makes it easier to communicate and share information around the world. E.g. internet. For example, to work on improvements on this website, I will go to a global online community, like elance.com. There, people from any country can bid for the right to provide a service. It means that I can often find people to do a job relatively cheaply because labour costs are relatively lower in the Indian sub-continent.
Growth of multinational companies with a global presence in many different economies.

Reduced tariff barriers which encourage global trade. Often this has occurred through the support of the WTO .
Firms exploiting gains from economies of scale to gain increased specialisation. This is an essential feature of new trade theory .
Growth of global media .
Global trade cycle . Economic growth is global in nature. This means countries are increasingly interconnected. (e.g. recession in one country affects global trade and invariably causes an economic downturn in major trading partners.)
Financial system increasingly global in nature. When US banks suffered losses due to the sub-prime mortgage crisis, it affected all major banks in other countries who had bought financial derivatives from US banks and mortgage companies.
Improved mobility of capital . In the past few decades, there has been a general reduction in capital barriers, making it easier for capital to flow between different economies. This has increased the ability for firms to receive finance. It has also increased the global interconnectedness of global financial markets.
Increased mobility of labour . People are more willing to move between different countries in search for work. Global trade remittances now play a large role in transfers from developed countries to developing countries.
Internet. This enables firms to communicate on a global level, this may overcome managerial diseconomies of scale. The firm may be able to get cheaper supplies by dealing with a wider choice of firms. Consumers are also able to order more goods online E.G. Dell Computers takes orders online and can meet customer specifications.

Evaluation of globalisation

It is hard to precisely define globalisation there are different interpretations of what we actually mean, therefore, there are different factors that explain it.
Improved technology is undoubtedly very influential in helping globalisation; without technologies such as the internet and global communication, it would not have been possible to witness the increased interdependence of companies and countries.
Increased free trade is important. However, there are various trade barriers still in existence, and this has not stopped the growth of globalisation.
Could there be a backlash against globalisation as people look for local alternatives to multinational products? I think this is unlikely as people prefer the security of buying established brand names but ‘buy local’ has increasing popularity amongst some people.

Video on Causes of globalisation

Growth of exports

Is globalisation irreversible?

Probably not. The history of humanity is one of globalisation. The factors that have been behind globalisation in the past, are likely to continue. However, it is possible to change certain factors. For example, it is possible for countries to place tariff barriers and restrict immigration. But, this is only a partial block to the process of globalisation. In terms of growth of trade as % of world GDP, it may be we have reached a plateau at just under 30% of GDP.

Exports are increasingly important to the world economy.

Exports in real terms

Diagrams for Globalisation

I would draw a diagram for trade creation , showing how the removal of trade barriers increases exports and imports. Also, economies of scale are very important for encouraging increased specialisation of global production.

Notes on Globalisation
Effects of Globalisation
Costs and benefits of globalisation
Effects of globalisation

30 thoughts on “What caused globalisation?”

many things cause globalisation like tarrifs and quotas

Tariffs actually limit globalization by increasing the costs of imported goods. They are often made to promote domestic products by making them able to compete with import´s lower prices.

globalisation is very important nowadays

Sounds more like a problem than importance.

How would you co relate globalisation to old age imperialism ?

You’re right

Great work guys keep it up love the content

Very Accurate!

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✍️Essay on Globalisation: Samples in 100, 150 and 200 Words

Updated on
Oct 25, 2023

Globalisation means the combination of economies and societies with the help of information, ideas, technology, finance, goods, services, and people. It is a process where multinational companies work on their international standing and conduct operations internationally or overseas. Over the years, Globalisation has had a profound impact on various aspects of society. Today we will be discussing what globalisation is and how it came into existence with the essay on globalisation listed below.

Table of Contents

1 How Globalisation Came Into Existence?
2 Essay on Globalisation in 100 Words
3 Essay on Globalisation in 150 Words
4 Essay on Globalisation in 200 Words

How Globalisation Came Into Existence?

For all those unaware, the concepts of globalisation first emerged in the 20th century. Here are some of the key events which led to the development of globalisation in today’s digital world.

The ancient Silk Route as well as the maritime routes led to the exchange of goods, ideas and culture in several countries. Although these were just trade routes, but later became important centres for cultural exchange.
Other than this, the European colonial expansion which took place from the 15th to the 20th century led to the setting up of global markets where both knowledge and people were transferred to several developing countries.
The evolution and exchange of mass media, cinema and the internet further led to the widespread dissemination of cultures and ideas.

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Essay on Globalisation in 100 Words

Globalization, the interconnectedness of nations through trade, technology, and cultural exchange, has reshaped the world. It has enabled the free flow of goods and information, fostering economic growth and cultural diversity. However, it also raises challenges such as income inequality and cultural homogenization.

In a globalized world, businesses expand internationally, but local industries can suffer. Moreover, while globalization promotes shared knowledge, it can erode local traditions. Striking a balance between the benefits and drawbacks of globalization is essential to ensure a more equitable and culturally diverse global community, where economies thrive without leaving anyone behind.

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Essay on Globalisation in 150 Words

Globalization is the process of increasing interconnectedness and interdependence among countries, economies, and cultures. It has transformed the world in various ways.

Economically, globalization has facilitated the flow of goods, services, and capital across borders. This has boosted economic growth and reduced poverty in many developing nations. However, it has also led to income inequality and job displacement in some regions.

Culturally, globalization has resulted in the spread of ideas, values, and cultural products worldwide. While this fosters cultural exchange and diversity, it also raises concerns about cultural homogenization.

Technologically, globalization has been driven by advances in communication and transportation. The internet and smartphones have connected people across the globe, allowing for rapid information dissemination and collaboration.

In conclusion, globalization is a complex phenomenon with both benefits and challenges. It has reshaped the world, bringing people closer together, but also highlighting the need for responsible governance and policies to address its downsides.

Also Read: Essay on Unity in Diversity in 100 to 200 Words

Essay on Globalisation in 200 Words

Globalization, a multifaceted phenomenon, has reshaped the world over the past few decades. It involves the interconnectedness of economies, cultures, and societies across the globe. In this essay, we will briefly discuss its key aspects and impacts.

Economically, globalization has led to increased international trade and investment. It has allowed companies to expand operations globally, leading to economic growth in many countries. However, it has also resulted in income inequality and job displacement in some regions.

Culturally, globalization has facilitated the exchange of ideas, values, and traditions. This has led to a more diverse and interconnected world where cultures blend, but it can also challenge local traditions and languages.

Socially, globalization has improved access to information and technology. It has connected people across borders, enabling global activism and awareness of worldwide issues. Nonetheless, it has also created challenges like cybercrime and privacy concerns.

In conclusion, globalization is a double-edged sword. It offers economic opportunities, cultural exchange, and global connectivity, but it also brings about disparities, cultural tensions, and new global challenges. To navigate this complex landscape, the world must strive for responsible globalization that balances the interests of all stakeholders and promotes inclusivity and sustainability.

The movement of goods, technologies, information, and jobs between countries is referred to as globalisation.

Globalization as a phenomenon began with the earliest human migratory routes, or with Genghis Khan’s invasions, or travel across the Silk Road.

Globalisation allows wealthy nations to access cheaper labour and resources, while also providing opportunity for developing and underdeveloped nations with the jobs and investment capital they require.

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Malvika is a content writer cum news freak who comes with a strong background in Journalism and has worked with renowned news websites such as News 9 and The Financial Express to name a few. When not writing, she can be found bringing life to the canvasses by painting on them.

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Home — Essay Samples — Sociology — Globalization

Essays on Globalization

Hook examples for globalization essays, "the global village" metaphor hook.

"In the age of globalization, our world has transformed into a 'global village.' Explore the implications of this metaphor and how it has reshaped our understanding of interconnectedness and cultural exchange."

The Impact of Digital Connectivity Hook

"In an era where a single tweet can reach millions, digital connectivity has revolutionized globalization. Delve into the profound impact of the internet, social media, and technology on global interactions."

The Paradox of Local vs. Global Hook

"Globalization blurs the lines between local and global identities. Analyze the paradox of preserving cultural heritage while embracing the globalized world and how this tension shapes our societies."

The Global Marketplace Hook

"Globalization has ushered in an era of unprecedented trade and economic interconnectedness. Explore the dynamics of the global marketplace, from multinational corporations to supply chains spanning continents."

Cultural Fusion and Identity Hook

"Globalization has led to a melting pot of cultures, but what happens to cultural identities in the process? Investigate how globalization impacts the preservation and evolution of cultural identities."

The Challenges of Globalization Hook

"While globalization offers numerous benefits, it also presents challenges. Examine issues such as income inequality, cultural homogenization, and environmental concerns that arise in a globalized world."

The Future of Globalization Hook

"As we stand on the brink of a globalized future, what can we expect? Join me in exploring the potential trajectories of globalization, from its impact on politics to the role of emerging technologies."

The Best Globalization Essay Topics

The Impact of Globalization on Local Cultures: Integration or Erasure?
The Impact of Globalization on Cultural Identity in Anthropological Studies
Globalization and Economic Inequality: Bridging the Gap Between Rich and Poor
The Role of Technology in Advancing Globalization and Its Social Implications
Environmental Consequences of Globalization: Challenges and Sustainable Solutions
Analyzing the Advantages and Disadvantages of Globalization
The Influence of Globalization on Education and Cross-Cultural Exchanges
Global Political Dynamics: How Globalization Affects Sovereignty and Governance
Globalization and Health: The Spread of Diseases and Global Health Initiatives
Consumer Culture and Globalization: The Homogenization of Global Markets

The Economic and Social Impact of Globalization

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Social Studies: The Importance of Understanding Globalization

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Good and Bad Impact of Globalization

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Globalization's Theories and Effects in The Modern World

The effects of globalization on health and medicine, a study on globalization and its various sides, overview of five articles about globalization, globalization: two sides of the arguments both for and against, globalization and its positive and negative sides for india, the advantages and disadvantages of the globalization process based on real-life examples, criticism and controversial benefits of globalization, globalization: importance of english nowadays, the impact of globalization, nationalism and protectionism on india, an overview of the overall impact of globalization, research of effects of globalization on the media in the world, globalisation as an economical, political and cultural process, pro globalist and anti globalist view from developed country perspective, how global issues impact individual states, electronic commerce in the globalization era, the effect of globalization and americanization on mass media, components of globalization: concept sociocultural and social globalizations, how the impact of globalization on illicit drug trafficking has affected international security, discussion of whether globalization is good or bad for the indian economy.

1. Halliday, T. C., & Osinsky, P. (2006). Globalization of law. Annu. Rev. Sociol., 32, 447-470. (https://www.annualreviews.org/doi/abs/10.1146/annurev.soc.32.061604.123136) 2. Fischer, S. (2003). Globalization and its challenges. American Economic Review, 93(2), 1-30. (https://www.aeaweb.org/articles?id=10.1257/000282803321946750) 3. Lang, M. (2006). Globalization and its history. The Journal of Modern History, 78(4), 899-931. (https://www.journals.uchicago.edu/doi/abs/10.1086/511251?journalCode=jmh) 4. Spring, J. (2008). Research on globalization and education. Review of educational research, 78(2), 330-363. (https://journals.sagepub.com/doi/abs/10.3102/0034654308317846?journalCode=rera) 5. Scott, A., & Storper, M. (2003). Regions, globalization, development. Regional studies, 37(6-7), 579-593. (https://www.tandfonline.com/doi/abs/10.1080/0034340032000108697a) 6. Jameson, F. (1998). Notes on globalization as a philosophical issue. In The cultures of globalization (pp. 54-78). Duke University Press. (https://www.degruyter.com/document/doi/10.1515/9780822378426-005/html?lang=de) 7. Frankel, J. A. (2003). The environment and globalization. (https://www.nber.org/papers/w10090) 8. Teeple, G. (2000). What is globalization?. Globalization and its discontents, 9-23. (https://link.springer.com/chapter/10.1057/9780333981610_2)

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Globalization: definition, causes, social impact and risks

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Table of content

The causes of globalization

The dark sides of globalization, the pros and cons of globalization.

Globalization is a more than current phenomenon: the emergence of this concept goes back to the twentieth century, but on closer inspection, it was at the beginning of the XXI century that globalization had reached its climax. This is a rather intuitive phenomenon that concerns the progressive and widespread increase in international trade and investment. The globalized world is the world of today, in which national economies are increasingly interdependent. Trade has almost no barriers, and communications are of disarming simplicity, even from one side of the Earth to the other.

The phenomenon of globalization is undoubtedly interesting and must be tackled from different perspectives and points of view. If at first, it was a concept that invested the purely economic sphere, today, globalization invests every area of our life: from the social to the cultural one, from politics to technological development. We are used to buying clothes that are produced in China, watching American films , eating Japanese, Thai and so on. This is now a globalized world. As we will see shortly, the "no-globals" strongly oppose this phenomenon, which is, on the one hand, has certain positive aspects. On the other, it hides limits and dangers that are not indifferent. Let’s have a look at the causes, social impact and risks of globalization.

The engine of globalization is the economy: it was, in fact, due to the growing interdependence of the various local economies that other social, cultural, political, commercial, and other dependencies have been created. However, the causes of globalization are to be traced in different aspects, which all occurred more or less in the same historical period. These causes are as follows:

The abolition of customs barriers, which allowed free trade and, therefore, a sort of unification of the world market.
The development of transport on a global scale, which has made it possible to market products from one part of the world to the other with lower costs but at the same time, has given a significant boost to production delocalization.
The development of new technologies, which has given an impetus to international communications.

As we have mentioned, the no-globals strongly oppose this phenomenon, which has affected the entire planet. The reasons are questionable, but it must be recognized that globalization hides a series of not negligible dark sides. Due to this economic capillarity, the multinationals have started to implement a very risky production relocation process. They have moved parts or even entire productions to less developed countries and have done so to enjoy various advantages: lower labor costs, reduced taxation, and fewer rules to be also respected for the defense of the environment. This last point should not be underestimated: multinationals take advantage of this situation to not respect the strict rules imposed in the most developed countries. This means that they move massive pollution and often without restraint in the areas of the East or the South of the World because here, the governments have not yet adopted strict environmental protection policies. However, the problem of environmental degradation cannot be moved: it affects the whole world, and globalization risks further worsening an already severely compromised situation.

Globalization appears to have contributed to improving the living conditions of the world's populations , but the gap has grown between the economies of the rich and poor countries.

At the same time, globalization has stimulated the mechanism of productive decentralization. In this context, the multinationals have moved parts or entire productions to countries in the South of the world or in those of Eastern Europe to enjoy the following advantages:

the reduced cost of labor, often recruited in economically disadvantaged countries and therefore willing to work with low wages and in any condition in order to fight poverty;
minor union defenses for workers;
less tax to pay for businesses;
weaker legislation in environmental protection.

This is a serious problem because not only does it subject local populations to all the risks of sometimes massive pollution, but it nevertheless increases the overall degradation of our world. Sometimes it is the forests that are attacked: cut down without any conservation criteria, to produce precious wood; other times the rivers are reduced to landfills to dispose of the waste of dangerous processes that the rich societies of the North of the world no longer want on their territory. For years, protest movements have emerged, which is defined as no global, which fights precisely against the politically incorrect management of multinationals.

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Few, therefore, very large companies impose their point of view and dominate the world market at the expense of medium and small companies that struggle to exist on the square, failing to reach a similar level of competitiveness.

Those who save globalization leverage other arguments such as the export of technology even to the most difficult countries on the planet and the increase in work where there are strong precarious and unemployment situations.

This is why for years, the globalized world, apart from being economically split, has been divided into opposite parts also ethically: on the one hand, the proponents of this great universal process called "globalization"; on the other, those who strongly condemn and protest.

However, it is worth noting that discussions and controversies only break out in rich countries because, in really poor countries, one does not even know what globalization is: one simply suffers it.

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Effects of Economic Globalization

Globalization has led to increases in standards of living around the world, but not all of its effects are positive for everyone.

Social Studies, Economics, World History

Bangladesh Garment Workers

The garment industry in Bangladesh makes clothes that are then shipped out across the world. It employs as many as four million people, but the average worker earns less in a month than a U.S. worker earns in a day.

Photograph by Mushfiqul Alam

Put simply, globalization is the connection of different parts of the world. In economics, globalization can be defined as the process in which businesses, organizations, and countries begin operating on an international scale. Globalization is most often used in an economic context, but it also affects and is affected by politics and culture. In general, globalization has been shown to increase the standard of living in developing countries, but some analysts warn that globalization can have a negative effect on local or emerging economies and individual workers. A Historical View Globalization is not new. Since the start of civilization, people have traded goods with their neighbors. As cultures advanced, they were able to travel farther afield to trade their own goods for desirable products found elsewhere. The Silk Road, an ancient network of trade routes used between Europe, North Africa, East Africa, Central Asia, South Asia, and the Far East, is an example of early globalization. For more than 1,500 years, Europeans traded glass and manufactured goods for Chinese silk and spices, contributing to a global economy in which both Europe and Asia became accustomed to goods from far away. Following the European exploration of the New World, globalization occurred on a grand scale; the widespread transfer of plants, animals, foods, cultures, and ideas became known as the Columbian Exchange. The Triangular Trade network in which ships carried manufactured goods from Europe to Africa, enslaved Africans to the Americas, and raw materials back to Europe is another example of globalization. The resulting spread of slavery demonstrates that globalization can hurt people just as easily as it can connect people. The rate of globalization has increased in recent years, a result of rapid advancements in communication and transportation. Advances in communication enable businesses to identify opportunities for investment. At the same time, innovations in information technology enable immediate communication and the rapid transfer of financial assets across national borders. Improved fiscal policies within countries and international trade agreements between them also facilitate globalization. Political and economic stability facilitate globalization as well. The relative instability of many African nations is cited by experts as one of the reasons why Africa has not benefited from globalization as much as countries in Asia and Latin America. Benefits of Globalization Globalization provides businesses with a competitive advantage by allowing them to source raw materials where they are inexpensive. Globalization also gives organizations the opportunity to take advantage of lower labor costs in developing countries, while leveraging the technical expertise and experience of more developed economies. With globalization, different parts of a product may be made in different regions of the world. Globalization has long been used by the automotive industry , for instance, where different parts of a car may be manufactured in different countries. Businesses in several different countries may be involved in producing even seemingly simple products such as cotton T-shirts. Globalization affects services, too. Many businesses located in the United States have outsourced their call centers or information technology services to companies in India. As part of the North American Free Trade Agreement (NAFTA), U.S. automobile companies relocated their operations to Mexico, where labor costs are lower. The result is more jobs in countries where jobs are needed, which can have a positive effect on the national economy and result in a higher standard of living. China is a prime example of a country that has benefited immensely from globalization. Another example is Vietnam, where globalization has contributed to an increase in the prices for rice, lifting many poor rice farmers out of poverty. As the standard of living increased, more children of poor families left work and attended school. Consumers benefit also. In general, globalization decreases the cost of manufacturing . This means that companies can offer goods at a lower price to consumers. The average cost of goods is a key aspect that contributes to increases in the standard of living. Consumers also have access to a wider variety of goods. In some cases, this may contribute to improved health by enabling a more varied and healthier diet; in others, it is blamed for increases in unhealthy food consumption and diabetes. Downsides Not everything about globalization is beneficial. Any change has winners and losers, and the people living in communities that had been dependent on jobs outsourced elsewhere often suffer. Effectively, this means that workers in the developed world must compete with lower-cost markets for jobs; unions and workers may be unable to defend against the threat of corporations that offer the alternative between lower pay or losing jobs to a supplier in a less expensive labor market. The situation is more complex in the developing world, where economies are undergoing rapid change. Indeed, the working conditions of people at some points in the supply chain are deplorable. The garment industry in Bangladesh, for instance, employs an estimated four million people, but the average worker earns less in a month than a U.S. worker earns in a day. In 2013, a textile factory building collapsed, killing more than 1,100 workers. Critics also suggest that employment opportunities for children in poor countries may increase negative impacts of child labor and lure children of poor families away from school. In general, critics blame the pressures of globalization for encouraging an environment that exploits workers in countries that do not offer sufficient protections. Studies also suggest that globalization may contribute to income disparity and inequality between the more educated and less educated members of a society. This means that unskilled workers may be affected by declining wages, which are under constant pressure from globalization. Into the Future Regardless of the downsides, globalization is here to stay. The result is a smaller, more connected world. Socially, globalization has facilitated the exchange of ideas and cultures, contributing to a world view in which people are more open and tolerant of one another.

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Home / Essay Samples / Social Issues / Globalization / The Effects of Globalization: A Comprehensive Analysis

The Effects of Globalization: A Comprehensive Analysis

Category: Economics , Social Issues
Topic: Globalization , Indian Economy

Pages: 3 (1463 words)

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History of Globalization

Features of globalization.

It leads to greater interaction between different populations in social terms.
Culturally, globalization represents the exchange of ideas, values and artistic expression between cultures and even a trend towards the development of a single world culture.
Globalization has paid political attention to intergovernmental organizations such as the United Nations and the World Trade Organization.
Legally, globalization has changed the creation and enforcement of international law.

Factors That Led to Globalization

Globalization on the example of indian economy.

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