Globalization- Definition, Meaning, Effects and Examples

Globalization Definition

Globalization means the exchange or cross-border trade of people, goods, services, capital, technologies, or cultural practices all over the world. Globalization consists of two major directional tendencies, increasing global connectivity and global consciousness which is merely a shared sense of the world as a whole. With globalization, the interchange between different economies and people has increased globally.

One thing that needs to be recalled is that globalization is not a single concept that can be defined and encompassed within a set time frame, nor is it a process that can be defined clearly with a beginning and an end. Globalization involves economic integration; the transfer of policies across borders; the transmission of knowledge; cultural stability; the reproduction, relations, and discourses of power; it is a global process, a concept, a revolution, and “an establishment of the global market free from sociopolitical control.”

Swedish journalist Thomas Larsson, in his book The Race to the Top: The Real Story of Globalization (2001), stated that globalization: “is the process of world shrinkage, of distances getting shorter, things moving closer. It pertains to the increasing ease with which somebody on one side of the world can interact, to mutual benefit, with somebody on the other side of the world.”

Effects of Globalization

The effects of globalization are negative as well as positive. Positive effects can be deemed as an increased collaboration among the countries. While a negative effect can be regarded as procuring cheap labor from developing countries, providing substandard working conditions to them, while producing goods for the developed nations.

Effect of Globalization on the Environment

  1. As globalization has unfurled the markets for goods, raw materials, and labor across the globe, transportation has also increased. Increased travel and transportation of goods have impacted the environment in a very negative way, as it has increased fuel consumption which has resulted in increased carbon emissions. These emissions are one of the major reasons for the most serious environmental issue faced today i.e. climate change.
  2. To facilitate the travel to the farthest geographies, the infrastructure has to be provided. This has resulted in the cutting down of forests to construct the roads and railways. The oceans are getting polluted due to the oil leakages from the ships that transport the goods and people.
  3. Loss of habitats due to the transport activities that disturb the living organism. The introduction of invasive species has also become a major issue as the species get an opportunity to travel to different locations while getting attached to the shipping vessels. They grow and dominate the native species while upsetting the native ecosystems.
  4. Globalization has also resulted in the overuse of resources from one region due to the global demand for the material. For eg. over-fishing in the coastal areas of Southeast Asia has resulted in the decrease of the fish population in this region.

Effect of Globalization on the Society


  1. Globalization has resulted in increased trade among the countries which has caused an increase in the financial exchanges and overall increased the economy across the world.
  2. It has caused the development of industries and technologies globally. New research and technology are shared among the different countries which have benefited the people and increased their standard of living.
  3. Cultural globalization is another benefit that people have realized. As people travel and migrate to different geographies, the cultural exchanges among the people have increased. People have got an opportunity to experience the traditions, food, customs of other communities which has expanded their thoughts and approach.


  1. Globalization has enabled cultural exchanges among people across the world. This has resulted in the disappearance of a certain culture in many regions as people are adopting the new ones.
  2. There is a rise in economic inequalities, as the trade benefits a certain section of the society while it brings a loss or very less benefit to the other section.

Examples of Globalization

  1. Food chains like McDonald’s, KFC, Pizza hut have their branches all over the world; thanks to globalization, people from different continents can enjoy these tastes.
  2. MNCs like Amazon, Facebook, Google, Apple has benefited from globalization and are one of the major drivers of its success.
  3. The trade of commodities like tea, coffee, spices has enabled cultural globalization as people from different continents are inspired and accepted the different cultures which have helped the world to come closer. With the cultural exchanges, people of different regions have started participating in celebrations like Halloween, Good Friday, Carnivals, Indian Holi, and the famous Black Friday.
  4. The Internet has also played a major role in the success of globalization as today information is instantly available all across the world. People sitting in one country can now order things from other countries and get them delivered to their doorsteps, all thanks to digitization.
  5. Education has also been benefited from globalization, as countries are welcoming students from other continents to study in their universities. Education is not confined to just one location, but students from all across now have an opportunity to study in the world’s top universities.

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