Essay about Globalization

754 Words Sep 4th, 2012 4 Pages
Globalization has transformed the world into one unified system through advancements in technology and communication systems. According to the IMF work by Masson (2001), globalisation can be defined as the increased integration of economies, reflected by increases in trade, capital, investment and migration flows. This phenomenon has brought about high economic growth (Dreher, 2003) and improved standard of living. It is thus deduced that globalisation will be able to serve as an effective tool to reduce poverty (Nissanke, Thorbecke, 2005). However, heated debate has arise concerning the unequal outcomes in economic gains created by globalization. Despite a decreasing amount of people living in poverty in China, poverty in areas outside …show more content…
This was further supported by The Globalization Index (2007) where it was estimated that “the benefits of globalization rarely reach 68 percent of the population that lives in rural areas”. While Stiglitz (2006) attributed the failure for benefits to reach some people to poor institutions and an unstable global financial system, he maintains that benefits of globalization could reach all as long as it is properly managed.

With information sharing made much easier by globalisation, the culture of each local community has managed to share and promote unique characteristics of its own with other communities. It presented opportunities for local traditional cultures to flourish across regions. Social media networks, such as Facebook and YouTube, provide local cultures a platform to share their unique values and practices (Friedman, 2007). With a greater interest in local cultures, more people are expected to visit and tourism could be boosted. However, as globalisation continues, there is a growing concern that it will weaken local traditional cultures. According to Friedman (2007), there was significant concern across regions that globalisation will create a global identity that is “Americanized” since US goods and services are in the best position to compete during globalisation. “Americanization” will dilute the unique traditional cultures in each community as local cultures start to lean

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