Globalization...

The world is now a Global Village is a cliché which is used to define Globalization most of the times. The way the world is now interconnected and in some cases interdependent and the influence of one country on another is what Globalization is all about. Culture invasions, creation of excess and mass demand, trends in the way of living, comparative advantage and Industrial revolution are some of the very distinct outcomes of Globalization.

The best example of culture invasion is the westernization of culture in the Asian countries. We see that over the years, way of living and culture has been heavily influenced by the western countries, in the form of the clothes we wear, the food we eat and even our recreational activities. This change in the way of living creates an excess of demand because the more we get exposed to the variety  of products and utilities that are offered the more the demand it creates and hence there is an excess of demand.

This is taken advantage of by large multinationals as they come and setup factories in developing countries  which have been the worst hit as they are the biggest importers of western products. This is because most developing countries have an absolute advantage in Agriculture and they concentrate on the production of agriculture and import industrialized products.

Globalization on the other hand also has its negative impact. The mass production of products has resulted in rapid depletion of the natural resources. It has created a huge market for the trade of Arms and Ammunition which has given rise to terrorism around the world. The race towards industrialization to take advantage of the mass demand has caused Global warming. This has resulted in drastic climatic changes giving rise to deadly natural disasters which remains to be a major concern throughout the world.