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Globalization

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Globalization is the trend in which countries seek to integrate and complement themselves driven by technological progress, investment policies and trade reforms.

This process makes all countries maintain a relationship of interdependence in aspects such as culture, the media, the economy, politics and even the environment. With these integrations, distances and time are increasingly shortened to interact with the inhabitants of all countries of the world.

How technology has driven globalization

When we talk about technology we refer to the technological revolution that has allowed and facilitated data processing, the application of computer science, robotics, electronics, biotechnology, among many of the applications we can mention.

All these processes have allowed an increase in large-scale production. These new technologies have radically changed the way of production and of competing in the markets, specially in the international market.

This makes countries redefine their pattern of comparative advantages, because innovation in knowledge and technology has had a strong impact on the entire economy.

Technology has changed and facilitated the way of communication, transportation, production and specially has greatly impacted international trade.

Effects of globalization

- Integration: This process caused by globalization causes national borders to weaken and become citizens of the world, sharing a common culture in music, film, television, sports and language among others.
- Economy: Globalization has led to a structural change in which economic actors and activities have changed radically. In this regard, transnational companies have modified their strategies in terms of their production processes, their commercialization and their organization.
- Location: Companies seek to locate where they find cheaper labor and production factors, to reduce their costs and obtain greater benefits. That's why we say that capital has no homeland, but instead becomes invested in places where it offers the best returns.
- Commerce: In the field of commerce there has been a strong opening, the market is today a global space. In spite of the fact that in recent years these advances have been stopped specially by the application of protectionist policies applied by the countries that represent the world's largest economies, such as the United States and China.

Advantages and disadvantages of globalization

The advantages are:

- Interculturality: globalization allows communication and cultural interaction between the different human groups in the world. Each group has differences in their customs, values, beliefs and traditions; but in the end what is sought is union and harmonious coexistence.
- More integration of countries and markets: it allows the unification both in political and economic terms, in order to benefit relations between the actors, avoid conflicts and, above all, improve the conditions of exchange.
- The economy and the market have been globalized: When the market is globalized, the advantages of specialization are used, applying the diversification of tasks performed by the most competitive countries in the world. These countries produce more efficiently and at lower costs.
- Efficient interaction of people: People interact in the market occupying roles of plaintiffs for inputs, money or services. They also act as labor or knowledge providers ( Know How ).
- Cooperation: Integration allows cooperation in education, research, development, health, tourism and the economy in general.

Among the disadvantages we find:

- Cultural dominance: This process can lead to a loss of cultural identity, by interacting with a dominant culture. Making gradually lose the values ​​and beliefs that identify a social group.
- Impairment of the environment: It can cause an alteration in the environment, if there is a disorderly exploitation of natural resources, which don't achieve sustainable economic development.

Finally we can say that globalization has allowed and allows the expansion in education, research and development of innovation. Which in turn has generated the growth of the economy and the political opening of world trade.

Technology has allowed to change and improve production processes, transportation and communication; what has impacted the trends and consumption habits of all the inhabitants of the world.


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