GLOBALIZATION

GLOBALIZATION

1. Globalization refers to the technological, political, economic, financial, and cultural exchanges between peoples and nations that have made and continue to make the world a more interconnected and interdependent place.

2. In the business world, this includes increased trade and investment flows, currency exchange, and the rise of multinational corporations.

   • Communication and transportation technologies are capable of linking people who are physically distant from one another, thereby facilitating the exchange of culture, knowledge, and ideas. 1

3. History

   • 1990s
     • Although the phenomenon of globalization is not new, political, economic, and technological developments in the 1990s accelerated the processes of globalization and contributed to the emergence of a public debate about its advantages and disadvantages.
       • With the collapse of the Soviet Union in 1989 and the end of the Cold War in 1991, the world became more interconnected.

4. The effects of globalization have been uneven, with some people, industries, and countries benefiting more than others.

   • Technological advances, including mobile phones and especially the internet, have contributed to globalization by connecting people all over the globe.
     • Free trade agreements, such as the North American Free Trade Agreement (NAFTA), which the governments of the United States, Canada, and Mexico signed in 1992, removed barriers to the free flow of people, goods, and services, thereby facilitating greater trade, investment, and migration across national borders.