The paper "The Causes and Impacts of Globalization" is a perfect example of micro and macroeconomics coursework. The global market has experienced a number of changes and issues in the last three decades. In this case, each of the global issues has in their own way arose as a result of different factors, impacted the global market differently, and had their challenges. One such change is globalization. Although many definitions exist for globalization, it can be described as the process of creating an interconnected society across the global nations (Homann, Koslowski & Lütge, 2007).
It is commonly referred to as the emergence of the globe as a small interconnected village. This essay offers an analysis of globalization as a global issue. It evaluates the factors that propelled globalization, its impacts, both positive and negative, as well as any challenges to globalization in the past, present and foreseeable future. The causes of globalization There are a number of causes of globalization. In this case, the causes are mainly determined by the type and nature of globalization. As Robertson (2012) noted, globalization can be categorized into a number of ways.
Among them is economic, social, and political globalization. On one hand, economic globalization includes economic relations and the spread of international trade. On the other hand, social globalization includes culture change and integration process. Finally, political globalization includes the emergence of international political ties and alliances. The main use and stimulation for globalization and its continued spread are technological developments. In this case, the aspect of technology development could be classified into two main aspects, namely communication, and transport developments. On one hand, the emergence of new communication channels such as satellite TVs and communication signals allowed for real-time global communication.
Moreover, technology developments have advanced internet adoption. In this case, Zinkina, Korotayev and Andreev (2013) noted that the global market, including the developing nations in Asia and Africa, have increased their internet connectivity. As such, this supports global communication platforms such as emails and video conferencing. As such, this supported and facilitated organisations to develop and advance their global operations. The management and customers, as well as supply chain partners, could communicate and receive feedback on a real-time basis.
Thus, the communication developments advanced and bridged the geographical gaps in the market. On the other hand, technological developments in transportation have enhanced international trade. In this case, the emergences of modern ships and aircrafts as well as electric trains have facilitated cargo movement. In this case, organisations are able to manufacture products in different nations, and eventually deliver them to customers globally within reasonable lead times. An extension to infrastructure IT development has also advanced storage and warehousing facilities. This has in turn allowed for the development of regional warehouse and storage facilities in the market. The impacts of globalization The impacts of globalization are immense.
In this case, globalization has both positive and negative impacts. This essay section evaluates all the impacts, both positive and negative on the global markets and societies respectively. On one hand, globalization allows for the adoption of a comparative advantages strategy. This theory and production approach as Keuschnigg (2012) argued, involves a nation specializing in the product they have a competitive production edge. This is the product they can produce at a lower cost with equal materials access to other nations.
As such, through globalization, nations are able to optimize their production potential. As such, they produce what they have a competitive edge on and export it to other nations for earnings. On the other hand, they import what they lack a competitive edge on manufactured and produced in other nations. This has been the explanation and rationale behind the ever-rising levels of imports and exports in international trade. Consequently, globalization has had a positive effect of allowing for available resources optimization globally.