Examples Of Globalization

Globalization as a process increase the movement of people, culture, technology, ideologies and information across the world. From the song we hear to many of the popular movies and novels, fashion, technology emigrate from one country to another.

The list can go on forever.Tried listing some of these below.

• Mc Donald’s – by the method of franchising they expand their business not only in their country but also overseas.
• Kentucky Fried Chicken(KFC) founded by colonel, is one of the top most food chain in the world.
• Ebay/ Amazon(E commerce companies) – Flow of goods and services, they are not only cheap and fast, but reliable and secure. You can order anything you wish from every part of the world.
• Smart phones, TVs, cars, laptops or computers, ipads, all smart devices.
• Social networking sites like facebook, Goggle, Whatsapp etc.
• Music, fast foods, fashion trends, sports, movies, books.
• Study tutorials- you just need an internet connection and any smart device (computer, laptop or phone) and by sitting in one country you can chat, learn or study from a person sitting in another country. Take live study lessons relating to any subjects, sports or games are another great example of globalization.

Our lives are so deeply influenced by the globalised economy that often we do not even recognize it. It is happening so fast, so it’s difficult for our brain to catch up.Its sometimes sad, that local identities and cultures are slowly disappearing , and now it’s difficult to bring back old good times.

Types Of Globalization

Globalization is a social, cultural, political and economic phenomenon.

Socially and culturally it provides opportunities to greater interaction among various population worldwide. It represents the exchange of ideas, values among cultures. Advancement in internet services and social media has a great role in this.

Good example, in this could include internationally popular films, books and T.V series etc. The Harry Potter film and books have been successful all over the world, making the character famous globally. Though social globalization is often criticized for eroding cultural differences.

Political Globalization means political co operation that is present between different countries. Global organization such as (World Trade Organization), United Nations (UN) and more regional organization such as European Union (EU) have helped to increase the degree of political globalization.

Economic Globalization refers to the integration of world economies through trade and the exchange of resources. As no economy works in isolation which clearly means one country economies influence each other. In terms of economic globalization it is seen that more developed countries sell their technology to countries which lack these (generally developing countries) and natural resources from developing countries are sold to the developed countries. It turns out to be a Two – way structure for technologies and resources.

We can say that Globalization is an unavoidable phenomenon in the history of mankind due to which economies are getting smaller and smaller by increasing the exchange of goods and services, information knowledge and cultures between different countries.

This process of interaction and integration has changed a lot in our everyday lives and is still progressing.This multidimensional and contradictory process brings to life the hopes and achievement that life can bring to it.

There is a run for greater competition, one of the main objective of globalization and this is only possible with market liberalization, economic integration and technology development.

Globalization – A look

In general terms Globalization means integration of the economy of the country with world economy.

It is the process of interaction and integration among people, companies and government worldwide.

It is an outcome of the set of various policies that are aimed at transforming the world towards greater interdependence and integration.

Globalization attempts to establish links in such a way that the happening in one country can be influenced by events happening miles away, it is turning the world into one whole or simply creating a borderless world.

It has grown so much in today’s time mainly due to advancement in transport and communication technology.

With the increased global interaction comes growth of international trade, ideas and culture.

It is the spread of products, technology, information and jobs across national borders.

It can raise the standard of living in poor and less developed countries by providing job opportunities, modernization and improved access to goods and services by developed countries.

Why is there an equilibrium in the economy when AS=AD ?

Answer :

Because in such a situation, planned production in the economy is equal to planned purchases in the economy. The producers do not suffer:

(1) the burden of unwanted supplies or unsold stocks, or

(2) the loss of unfulfilled demand(due to lack of stocks)

When AS=AD, actual stocks with the producers = desired stocks with the producer.

Determinationof Equilibrium Income and output (1)

Determinationof Equilibrium Income and output (2)

State two approaches to the determination of equilibrium level of income in an economy ?

Answer :

Keyensian theory of income determination explains equilibrium level of income in terms of two approaches

1. Aggregate demand-aggregate supply approach

2. Saving- investment approach

In terms of Aggregate demand-aggregate supply approach, equilibrium level of income and output in the economy is the one where aggregate demand for goods and services is equal to the aggregate supply.

In terms of Saving- investment approach, equilibrium level of income is determined at that level of income where planned investment equals planned saving.

Also read:

Determinationof Equilibrium Income and output (1)

Determinationof Equilibrium Income and output (2)

Distinguish between autonomous and induced investment ?

Answer :

Autonomous investment is that type of investment which is not affected by change in the level of income or output .Therefore, it is income inelastic. However, autonomous investment may change in non – income factors like innovation of new techniques of production, discovery of new markets, growth of population, etc.

Induced investment, on the other hand, is that investment which is undertaken as a result of change in the level of income. It varies directly with the change in the level of income.

To know What is investment ?

Distinguish between private and public investment?

Also read : Induced and Autonomous Investment

What is Marginal Propensity to consume? How is it related to Marginal Propensity to Save?

Answer:

The marginal propensity to consume is the ratio of change in consumption expenditure to a change income.

Marginal Propensity to consume = Change in Consumption / Change in Income

MPC = ∆C / ∆Y

The marginal propensity to save is the ratio of change in saving to a change income.

Marginal Propensity to save = Change in saving / Change in Income

MPS = ∆S / ∆Y

Aggregate of marginal propensity to consume and marginal propensity to save is equal to one

MPC + MPS = 1

Also read : 

Consumption function

Saving function