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The Causes Of Globalization

Thursday, October 16, 2008

Globalisation,a theme widely used by corporates to market themselves by informing us how global their footprints are,and a world map is a commonly found in many advertisements.Google Trends shows that the query ‘globalisation’ as well as ‘globalization’ is on an upswing since 2000.The highest no. of searches coming for ‘globalisation’ is from Nigeria,and secondly South Africa,whereas for ‘Globalization’,the highest number was from Pakistan 😛 ,followed by Philippines,Malaysia and India.Interestingly,New Delhi has alone has the highest number of searches,followed by Chennai,Adelaide and Johannesburg! 🙂 .Even,in my blog,the highest visits are tributed to the post ‘Effects Of
Globalisation’,as many as 4 times the ordinary posts.[Source]

What really caused this?The causes can be attributed to several political as well as socio-economic changes that took place in the decade of 1991-2001.In Tom Friemdan’s book ‘The World Is Flat’,ten points or rather flatteners are mentioned.Several other points were also mentioned in one of his earlier books ‘Lexus And The Olive Tree’ and ‘Longitudes And Attitudes’.


Fall Of Berlin Wall(9/11!)

Yes,that’s 9/11 in our DD/MM system!
This was the time when the walls fell and Windows opened.This event marked something more,the rise of capitalism and fall of communism.Many countries staretd opting for capitalist concepts in economy as well as opened up to free trade in the coming years.Notable example is India.Out of 200+ nations of the world,almost 150+ opened up,and this meant that any company can work and set up branch anywhere.

Netscape

Netscape was beyond the name of a single company.It was the creation of web browser.The US Department of Defence was working on a common network across USA,but it was the web browser which made it possible to make every computer accesible to this network.Indeed,you are now viewing this on a web browser,and the network across America has spread across the globe now known as Internet.I don’t need to say any importance of internet.

Work Flow Software

The monopolisation of Microsoft Windows in the OS arena did facilitate developers for creating application software.Almost all the major application software were designed for Windows.A chaos of which software works the best on which OS did not arise.This uniformness mattered a lot.If you are in some other part of the world,you can still work on MS Word there,or Notepad even if these softwares are in a different language.You are familiar with the options and the general location where they are placed only because of this uniformity.

Outsourcing

This one word ‘outsourcing’ has brought fortunes for millions of homes in central USA,India,China,Mexico,Brazil and Russia.Due to the advent of internet where location did not matter,outsourcing just got a boost.For certain task,work can be outsourced to a location where it will be done in cheapest and most efficient way.In short,every country was to get it’s deserving pie.India earned it through software and services,China in manufacturing,Mexico in other areas.

Off-shoring

The difference of this term with outsourcing is,in the sense that,in outsourcing only work is shifted to a different location,whereas in offshoring the complete company is shifted.All the Intel chips manufacturing units are now taken away from US and shifted to China.Same has happened with many other manufacturing units of other companies.In offshoring,China is one name which has taken maximum advantage.

In-Sourcing

This concept is right now is used in mostly the developed nations.Suppose,a logistics company like DHL is doing all transport related work of Compaq.A customer of Compaq who has some problem generally calls Compaq,and the HCL does the delivery work.In-sourcing is like doing this engineering work at HCL itself.Engineers are employed at HCL itself,and every piece of Compaq system need not be transported to it’s main office of that particular country.

Supply-Chaining

Due to all the flatteners mentioned above,and especially the internet,many businesses went up and down.But,logistic providers saw a growth.Better logistics,and the use of software in logistics was something which changed the face of this field.Ordering and tracking is done automatically using some business software.You place an order of a book on Rediff or Indiatimes,and the emails to respective publishers for a copy are sent by these business softwares.Better supply chain has only helped globalization.

In-forming

For some discrete piece of information,regarding anything in this world,one had to buy and read encyclopedias,read aplenty of books for some particular piece of info and so on.The internet is one place where Google can just answer all your queries in less than 1second!Anything you need,you just google it.The 9.1 crore daily Google searches,as well as questions asked in Yahoo!Answers,or the articles in Wikipedia is very high.Where did people ask all these earlier?People are getting information like never before on their fingertips sitting at home.

The Steroids

Steroids are nothing but the technological tools which are springing up day by days in larger numbers.Smaller computers,smaller mobiles,faster internet,cheaper internet and then more advancement in al these gizmos is leading to an addiction of all this.This helps world flatten faster.In Japan,one can access the internet almost anywhere using a wireless palmtop device or it’s ilks.More e-tickets are bought than actual tickets.

In short,one can say globalisation is caused by many inter-dependent things.One just can’t say anymore,”I am not dependent on you”!(considering countries in the context)When the oil prices go up,a sudden inflation rise took place across the world.When one market falls down,a repurcussion is found at other places.Places like Dubai have more Indian institutes,where as more foreign companies are found in India.

Image Courtesy:Sam Houston State University

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2 Comments leave one →
  1. Thursday, November 27, 2008 3:16 pm

    great artcle !

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