The Four Phases Of Globalization

Globalization can be defined as the growing interconnection of the various nations worldwide through the increasing volume and variety of cross border transactions which results in capital flow , and also through the more rapid and widespread dispersion of technology (Hill, 2011). Globalization is the harvest of human modernization and technological progress. It refers to the increasing amalgamation of economies across the globe though trade and capital flows. The term also refers to the migration of people (labor) and technology across international borders. It has the potential of making societies richer through trade and creates an environment of knowledge and understanding across the world. Globalization can be viewed at from five different

The four main forces of globalization that quickly brought us to this global age are technology, travel, trade, and television. These four T’S have bought the whole world together (Marquardt and Berger, 2003). Globalization occurred in four phases. The first phase of globalization mainly occurred due to the advancement in automation and transportation that implemented long distance and firm trade. The first phase enabled cross border trading of commodities. The second phase saw some overseas development by American corporations into commercial European markets. The third phase was established on lowering of tariff barriers which promoted an increase in international trade. This phase also saw rise of Japanese multinationals. The fourth and the final phase have build upon largely on two changes. These are first changes in technology; these are extensive availability of personal computers linked to the World Wide Web and the increasing use of mobile communication. The second is the change in the economic policies and political attitudes which have enabled the companies to take advantage of these technological

The developing countries have achieved this progress by reforming their policies, institutions, and infrastructure. The existing market structure, the market potential and the expected increasing returns are the leading criteria for firms for investment. With the growing global competition, the world economy provides a large source of supply and demand, so that international trade increases the possibilities for an adequate through specialization and complementary strategies. Economies of location can be seen as a prominent factor in globalization of industries. The transnational co-operations (TNC) are important market players in world trading system. They are aimed on the specialization and internationalization of supply being induced from the production centers across the world and the international confluence of demand as consumers get acquainted about the worldwide available products. Globalization has developed rapidly and profoundly. All humans are formally tied to all others through their countries membership in United Nations (UN) and various trade organizations. In today’s world every major international issue affects us. When World Trade Organization (WTO) talks breaks down, when Organization for Petroleum Exporting Countries (OPEC) changes its production quotas, when American stock market crashes down, these all things affects us directly or indirectly