Importance Globalization in Modern World and in Company Success

The importance of Globalization is a phenomenon that involves the free movement of humans among different regions of the world, exchange of information, and open market for businesses. World Health Organization (WHO) defines globalization as “The increased interconnectedness and interdependence of peoples and countries. It is generally understood to include two interrelated elements: the opening of international borders to increasingly fast flows of goods, services, finance, people, and ideas; and the changes in institutions and policies at national and international levels that facilitate or promote such flows.”

With the emergence of the internet and advancement in technology, the world’s ways due to globalization have changed drastically. The internet has made it easy for people to connect and share information. The ease of traveling has made it easy for people to travel worldwide and meet new people. Similarly, the trade between countries had increased because of the advanced technology in automobiles. All in all, globalization has changed the lifestyle of people around the globe significantly. Therefore, the importance of globalization cannot be denied in collective development. Here is an explanation of why and how globalization is important.

Importance of Globalization in Modern World

The concept of geographical boundaries in the world was necessary for a state’s security. It was also serving as an obstacle for the exchange of knowledge, hence decelerating collective development. Therefore, it was important to introduce a system catering to all the needs of security and intellectual, social and financial exchange. Globalization was fulfilling all of these perimeters successfully. With few guidelines and forming international law, it was good to practice globalization. With the progress in technology, it became easy for everyone to be a part of a new global world.

The modern world has weaved its system so that it has become essential to practice globalization on an international level. Countries like North Korea that do not follow like a part of the global network have to participate in some trade activities for survival. It highlights the importance of globalization for every states’ survival.

1. International Recruiting and Immigration

The scale of the job market under globalization has increased incredibly. Candidates can apply for jobs across borders as well. This provides opportunities for the citizen of underdeveloped countries to find a job in today’s leading markets. It creates competition in the job market, but it also improves the services and pays rates. Similarly, many people apply for immigration to other countries. The process ends up in cultural diffusion and removing prejudices of different groups.

2. Studying Abroad

The world is familiar with the concept of foreign scholarships and study programs. As globalization progressed, countries, specially developed countries like the USA and UK, started giving international students scholarships. This gives students a chance to get advanced knowledge and get exposure to different cultures.

3. Global Coverage of Events and Protests

In the past few years, the world has seen many events going viral throughout many countries and making a global impact. One such example is the unfair death of George Floyd in the US that started a worldwide protest supporting Black lives. The protest spread like wildfire, and many people joined hands for social, moral, and financial support for the cause. This was possible because of social media and the impact of globalization. Globalization gives individuals the freedom to make them heard using any platform, which surely can be used for a good cause.

4. International Politics

The emergence of globalization has widened the scope of many things, including politics. Now, the impact of politics in one region affects all. This influence has given rise to the importance of international politics in the global scenario. This has made way to improve political as an institute worldwide by promoting democracy and transparency of the election process. Moreover, international organizations like the UN, SAARC, OIC, etc., take important global issues and try to find a solution by mutual agreement through these platforms. This way, each state has a right to decide; however, it is beneficial for them.

5. Global Crisis

The biggest on-going crisis – pandemic imposed due to covid19 – was under researchers’ keen eyes to fight the spread of the virus globally. Under these situations, WHO and other reputed research centers continuously carried their responsibility to spread valid information regarding the situation. This could have been made possible because of the open interaction through media and social media. A common could easily get the information and participate in keeping safety measures. Further, the preparation for a vaccine for the virus was also available to the general public. The distribution of vaccines to different parts of the world is possible because globalization has made it easy to exchange humans, information, and products among countries.

6. Globalization and Global Economy

The global economy – that is, the interlinked economic and financial activities between several countries – has gained new momentum due to globalization. Therefore, the impact of economic activities has increased. The international economic impacts every country’s domestic economic activities that can either result in positive or negative performance.

7. Interlinked Market

With the increase in the global population, the need to grow the economy by increasing the market’s size has become highly important. For this purpose, the countries have extended their market to other countries as well. It is beneficial for companies to sell and customize their products as per different cultures and needs. It yields more benefits and increases trade ties within the countries.

Importance of Globalization on Society

Any phenomenon, either global or at a domestic level, always has an impact on society. Likewise, as globalization’s importance increased along with its function in international politics and the global economy, its impact on societies amplified in many ways.

1. Cultural Diffusion

In the past, cultures were specific to an area and its people. But after globalization made its debut, the interaction of people has increased tenfolds resulting in cultural diffusion. Even if people cannot experience different cultures, they can see glimpses through media and social media. this has developed an interest in exchanging knowledge, cuisines, customs, dresses, and languages.

2. Fights Xenophobia

The second-hand experience of living in different cultures through exposure to media has made it easy for people to understand them. Often, people end up adopting some aspects of or complete culture of other nations. This cultural and ethnic interaction has played a big role in fighting xenophobia from people’s minds. Often, xenophobia occurs due to the prejudices one has about another culture because of the lack of interaction. Globalization has decreased this communication gap resulting in removing prejudices and stereotypes towards other cultures.

Importance of globalization in Company success

The importance of globalization in a company’s success is irrefutable. Because of international trade, there is more competition to sell a product in the open market. Every company tries its best to make a place in the international market by manufacturing products that can have a comparative advantage. This competition helps the companies improve the product’s quality while selling the product at a lower cost. When a company secures a place in the international market, it can yield double profits, also make its name. It also increases the chances to become a leading company that customers value. Companies like Apple and Samsung in the tech market are such examples.

Conclusion

The impact of globalization is huge on every sector including, society, economy, and politics. Many old systems and traditions are replaced with newer ones to facilitate positive change in the world that could have been possible because of globalization. The transformation in the global system and luxuries people enjoy in the modern world is because of globalization. Therefore, the importance of globalization cannot be denied to progress and bring positive change for humanity.