10 Globalization Features You Must Know

Globalization consists of a process in which different nations from around the world come together. This approach may be related to a cultural, economic, political and / or social context.One of the objectives of globalization is to establish international integration between the markets of different countries.According to the IMF (International Monetary Fund), globalization is divided into four basic aspects: trade and financial transactions, capital and investment movements, migration and movement of people and the dissemination of knowledge.

Below are some features that will help you learn more about globalization.

1. Acculturation

The approximation between different countries in the world allows the acculturation of these nations.

Acculturation is a process of changes that occur in a society through contact with cultures different from yours. It is a phenomenon of social interaction that does not necessarily imply the overlap of one culture over another.

Acculturation can also consist of mixing two or more cultures which together form a new culture.

Brazil is an example of a society where acculturation occurred, as it was formed through indigenous, European (especially Portuguese) and African cultures.

2. Creation of economic blocks

The union of different nations in order to establish a strengthened economic relationship with each other gave rise to the creation of economic blocs.

An economic bloc is a group of countries with cultural and commercial affinities that are geographically close, which seek to strengthen trade between them.

The main global economic blocs are:

  • Asia-Pacific Economic Cooperation ( APEC ): formed by the United States of America, Japan, China, Taiwan (Taiwan), South Korea, Hong Kong (administrative region of China), Singapore, Malaysia , Thailand, Indonesia, Brunei, Philippines, Australia, New Zealand, Papua New Guinea, Canada, Mexico, Russia, Peru, Vietnam and Chile.
  • ASEAN ( Association of Southeast Asian Nations ): formed by Thailand, Philippines, Malaysia, Singapore, Indonesia, Brunei, Vietnam, Myanmar, Laos and Cambodia.
  • CIS (Commonwealth of Independent States): formed by Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan.
  • Andean Community of Nations : formed by Bolivia, Colombia, Ecuador and Peru. Brazil, Argentina, Chile, Paraguay and Uruguay interact as associated countries. Mexico and Panama are observer countries.
  • Mercosul : formed by Brazil, Argentina, Uruguay and Paraguay. Bolivia, Chile, Colombia, Ecuador, Peru, Suriname and Guyana are associate members. Mexico and New Zealand are observer members.
  • Southern African Development Community ( SADC ): formed by South Africa, Angola, Botswana, Democratic Republic of Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, Swaziland, Tanzania, Zambia and Zimbabwe.
  • European Union : They are: Germany, Austria, Belgium, Bulgaria, Cyprus, Croatia, Denmark, Slovakia, Slovenia, Spain, Estonia, Finland, France, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands (Netherlands), Poland and Portugal.
  • UMSCA ( United States – Mexico – Canada Agreement – Agreement between the United States, Mexico and Canada). This economic block replaces the NAFTA ( North American Free Trade Agreement ).
  • Benelux : formed by Belgium, Holland and Luxembourg.

Learn more about economic blocs , Mercosur , the European Union and NAFTA .

3. Expansion of capitalism

 

Some theories establish a direct relationship between the expansion of capitalism and globalization.

For economist Paul Singer, for example, globalization was one of the ways in which capitalism developed.

The economist Mário Murteira also argues that globalization is linked to a new form of capitalism, where the “knowledge market” determines the evolution of the world economy.

Globalization has in some ways brought about a narrowing in the commercial relationship of some countries and this has culminated in the increase in the spread of capitalism. An example of this is the increase in purchases of items of technologies such as smartphones , computers, etc.

See the meaning of capitalism .

4. Presence of multinationals

Multinationals are companies that have their headquarters in one country and branches in others.

The industry of some products, such as heavy machinery, is subdivided between branches; sometimes, each part of a product is made in a country.

Globalization has resulted in an approximation between different countries and, as a result, has strengthened trade relations between them.

Because of this approach, there was a considerable expansion of multinationals and commerce now has a greater number of companies competing with each other.

One of the benefits brought about by this competitiveness was the fact that companies gain space in markets where they previously had no time due to the monopoly of state-owned companies.

Globalization has conquered the end of the monopoly and the privatization of various sectors.

In Brazil, one of the sectors impacted was telecommunications. State systems have been privatized through auctions and all companies that have purchased the right to provide their services in certain regions can do so.

5. Greater spread of knowledge

In addition to the impact on trade relations between countries, globalization also has a direct influence on the spread of knowledge and information.With technology at the service of mankind, news about wars, World Cups and territorial invasions is quickly known throughout the world.

In addition, with the boom of the Internet, countries started to have a dynamic integration and society started to acquire data and information almost instantly.This kind of virtual globalization has also brought many advantages for companies, which have now been able to manage employees remotely and organize meetings through applications and online communication programs .

Despite all the mentioned benefits, the spread of knowledge can cause destruction if applied with bad intentions.An example of this is the spread of terrorist ideas, leveraged by the ease of access to respective data on different types of information platforms.

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