GlobalizationFor many centuries now, human societies across the universe have developed more and more close contacts (Scholte, 2000). Presently, the speed states are getting globalized is significantly augmented. Exceptional alterations in transportation, technology as well as communications have presented the process novel impetuses well as made the universe more inter-reliant as compared to before. International corporations deliver products in distinct states as well as sell them to customers all over the world: whilst raw materials, technology and money also move more speedily across national borders. Furthermore, products and finances, ideas as well as cultures also flow more freely and quickly.
It is apparent that, social movements, economies as well as laws are forming their basis at the global level. All this has been driven and catalyzed by globalization. Globalization also includes a number of political, economic and social adjustments (Scholte, 2000). Scholars have defined the term as a process of incorporation and interaction amid individuals, governments and corporations all over the universe; a procedure catalyzed by international trade investment, as well assessed by information technology (Scholte, 2000). Globalization significantly affects culture, political systems, economic development, environment, and on prosperity, all of which affects the wellbeing of personalities both positively and negatively in societies all over the universe.
This paper aims at discussing the benefits and costs of globalization. Moreover, it will evaluate the key challenges that are being posed to the national governments because of globalization. In conclusion, it will focus on the impact of globalization to an organization. Benefits of globalizationIt is apparent that globalization has a number of positive effects universally. Globalization leads to the improvement of the International Trade, due to the unification of trade between countries, the number of states where goods as well as services can be purchased or/ and sold has tremendously increased hence creating a ready large market (Pettinger, 2009).
This is because of the abolishing of custom duties and protective barriers, which in return make it possible for free, trade within the states. This leads to huge gains to these states as well as increased opportunities as the income generated could be invested to other programs such as education or health and safety with the aim of ensuring a continuous economic growth.
Moreover, countries are able to gain access to the market for their technology and exports through the international transfers. The increasing shares of exports and imports in the gross domestic product highlight the growth of the state economies to the universal trade (Pettinger, 2009). Further, continued rationalization of the activities involved in production from the developed to under developed countries gives room for new opportunities to expand trade. This not only applies to trade in goods but also trade in services as it has become the main component to the global trade (Pettinger, 2009).
Globalization as defined unifies the markets, systems of finance, communication, technology commerce, the law that bypasses traditional national, social, ethnic and cultural boundaries as well as commerce (Pettinger, 2009). This has had a greater contribution to greater specialization, higher standards of wealth, improved living, and efficiency of division of labor as well as eradication of poverty. Researchers argue that the current economic growth is greatly responsible for the improved living standards, which are enjoyed by those living in the industrialized world.