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1 Your web browser (Safari 7) is out of date. For more security, comfort and the best experience on this site: Update your browser Ignore GLO BALIZATIO N For the complete encyclopedic entry with media resources, visit: Globalization is the connection of different parts of the world. Globalization results in the expansion of international cultural, economic, and political activities. As people, ideas, knowledge, and goods move more easily around the globe, the experiences of people around the world become more similar. Globalization in History Globalization has a long history. Ancient Greek culture, for instance, spread across much of southwestern Asia, northern Africa, and southern Europe. The globalization of Greek culture came with the conqueror Alexander the Great. In fact, there are cities named for Alexander in Iraq (Iskandariya), Egypt (Alexandria), and Turkey (Alexandria Troas). The Silk Road, a trade route between China and the Mediterranean Sea, promoted the exchange of ideas and knowledge, along with trade goods and foods such as silk, spices, porcelain, and other treasures from the East. When Europeans began establishing colonies overseas, globalization grew. Many early European explorers were eager to bring the Christian religion to the regions they visited. The globalization of Christianity spread from Europe to Latin America through Christian missionaries working with the local populations. Globalization was accelerated in the nineteenth century with the Industrial Revolution, as mechanical mills and factories became more common. Many companies used raw materials from distant lands. They also sold their goods in other countries. 1 of 11

2 Britain s colony in India, for instance, supplied cotton to British merchants and traders. Madras, a light cotton cloth, was made in the city of Madras (now called Chennai), a major port in India. Eventually, madras cloth was no longer manufactured in Madras at all the Indian labor force supplied the raw material, cotton. Factories in the county of Lancashire, England, created madras cloth. British factories made fabric and other goods from the cotton. British manufacturers could then sell their finished goods, such as clothing and blankets, to buyers all over the world the United States, Brazil, Australia, even India. Globalization sped up dramatically in the twentieth century with the proliferation of air travel, the expansion of free trade, and the dawn of the Information Age. Miles of fiber-optic cable now connect the continents, allowing people around the world to communicate instantly through the borderless World Wide Web. Communication Modern communication has played a large role in cultural globalization. Today, news and information zips instantly around the world on the internet. People can read information about foreign countries as easily as they read about their local news. Through globalization, people may become aware of incidents very quickly. In seconds, people are able to respond to natural disasters that happen thousands of miles away. About 60 percent of the people in the world now use cell phones. A farmer in Nigeria can easily talk to his cousin who moved to New York City, New York. The success of global news networks like CNN have also contributed to globalization. People all over the world can see the same news 24 hours a day. Travel 2 of 11

3 Increased international travel has also helped globalization. Each year, millions of people move from one country to another in search of work. Sometimes, these migrant workers travel a short distance, such as between the Mexican state of Sonora and the U.S. state of California. Sometimes, migrant workers travel many thousands of miles. Migrant workers from the Philippines, for instance, may travel to Europe, Australia, or North America to find better-paying jobs. People do not travel just for work, of course. Millions of people take vacations to foreign countries. Most of these international tourists are from developed countries. Many are most comfortable with goods and services that resemble what they have at home. In this way, globalization encourages countries around the world to provide typical Western services. The facilities of a Holiday Inn hotel, for instance, are very similar, whether the location is Bangor, Maine, or Bangkok, Thailand. Travel and tourism have made people more familiar with other cultures. Travelers are exposed to new ideas about food, which may change what they buy at the store at home. They are exposed to ideas about goods and services, which may increase demand for a specific product that may not be available at home. They are exposed to new ideas, which may influence how they vote. In this way, globalization influences trade, taste, and culture. Popular Culture Popular culture has also become more globalized. People in the United States enjoy listening to South African music and reading Japanese comic books. American soap operas are popular in Israel. India, for instance, has a thriving film industry, nicknamed Bollywood. Bollywood movies are popular both in India and with the huge population of Indians living abroad. In fact, some Bollywood movies do much better in the United States or the United Kingdom than they do in India. 3 of 11

4 Clothing styles have also become more uniform as a result of globalization. National and regional costumes have become rarer as globalization has increased. In most parts of the world, professionals such as bankers wear suits, and jeans and T-shirts are common for young people. There has also been an increasing exchange of foods across the globe. People in England eat Indian curry, while people in Peru enjoy Japanese sushi. Meanwhile, American fast food chains have become common throughout the world. McDonald's has more than 31,000 restaurants in 118 countries. And people all across the world are eating more meat and sugary foods, like those sold in fast food restaurants. The worldwide expansion of McDonald s has become a symbol of globalization. Some menu items, such as the Big Mac, are the same all over the world. Other menu items are specific to that region. McDonalds in Japan features a green-tea flavored milkshake. At McDonald s in Uruguay, a McHuevo is a burger topped with a fried egg. Globalization has brought McDonald s to billions of consumers worldwide. Economy The international economy has also become more globalized in recent decades. International trade is vital to the economies of most countries around the world. American software companies, such as Microsoft, rely on international trade to make large profits. The economy of the country of Saudi Arabia is almost entirely dependent on oil exports. To increase trade, many countries have created free trade agreements with other countries. Under free trade agreements, countries agree to remove trade barriers. For example, they may stop charging tariffs, or taxes, on imports. In 1994, the United States, Mexico, and Canada signed the North American Free 4 of 11

5 Trade Agreement (NAFTA), which eventually ended all tariffs on trade goods between the three nations. This allowed globalization of goods and services, as well as people and ideas, between these three countries. Most large corporations operate in many countries around the world. HSBC, the world s largest bank, has offices in 88 different countries. Originally, HSBC stood for Hongkong Shanghai Banking Corporation, which was founded in 1865 to promote trade between China and the United Kingdom. Today, HSBC has its headquarters in London, England. Economic globalization has allowed many corporations based in the West to move factories and jobs to less economically developed countries, a process called outsourcing. The corporation can pay lower wages, because the standard of living in less developed countries is much lower. Laws protecting the environment and workers safety are less widespread in developing countries, which also lowers costs for the corporation. Often, this results in lower costs for consumers, too. Economic markets are global. People and organizations invest in companies all over the globe. Because of this, economic downturns in one country are repeated in other countries. The financial crisis that began in the United States in 2006 quickly spread around the world. The way globalization allowed this situation to spread led to the nation of Iceland nearly going bankrupt, for example. Politics Cultural and economic globalization have caused countries to become more connected politically. Countries frequently cooperate to enact trade agreements. They work together to open their borders to allow the movement of money and people needed to keep economic globalization working. Because people, money, and computerized information move so easily around 5 of 11

6 the globe, countries are increasingly working together to fight crime. The idea of maintaining international law has also grown. In 2002, the International Criminal Court was established. This court, which handles cases such as war crimes, has a global reach, although not all countries have accepted it. Many problems facing the world today cross national borders, so countries must work together to solve them. Efforts to confront problems such as global climate change must involve many different countries. In 2009, representatives from 170 countries gathered at a conference in Copenhagen, Denmark, to discuss climate change. Other international issues include terrorism, drug trafficking, and immigration. The process of globalization is very controversial. Many people say globalization will help people communicate. Aid agencies can respond more quickly to a natural disaster. Advanced medicines are more easily and widely available to people who may not have been able to afford them. Jobs available through globalization have lifted many people out of poverty. Globalization has increased the number of students studying abroad. Not everyone says that globalization is good, however. Some people worry that Western culture will destroy local cultures around the world. They fear that everyone will end up eating hamburgers and watching Hollywood movies. Others point out that people tend to adopt some aspects of other cultures without giving up their own. Ironically, modern technology is often used to preserve and spread traditional beliefs and customs. Opponents to globalization blame free trade for unfair working conditions. They also say that outsourcing has caused wealthy countries to lose too many jobs. Supporters of globalization say that factory workers in poor countries are making much better wages than they would at other jobs available to them. They also argue that free trade has lowered prices in wealthier countries and improved the economy of poorer countries. 6 of 11

7 Vocabulary Term Part of Speech Definition abroad adverb in a foreign country. accelerate verb to increase speed or velocity. Alexander the Great ( BCE) Greek ruler, explorer, and conqueror. bankrupt adjectiveunable to pay debts. Battle in Seattle (1999) protest of the 1999 meeting of the World Trade Organization in Seattle, Wash. Bollywood mainstream Indian film industry. border natural or artificial line separating two pieces of land. cell phone device that uses radio signals to transmit and receive voice and other data. chili pepper plant native to the Americas whose fruit and seeds are cultivated for food and spice. Christian people and culture focused on the teachings of Jesus and his followers. Christopher Columbus ( ) Italian navigator. civilization complex way of life that developed as humans began to develop urban settlements. climate change gradual changes in all the interconnected weather elements on our planet. colony people and land separated by distance or culture from the government that controls them. communication sharing of information and ideas. confront verb to address a problem or person directly. controversial questionable or leading to argument. business made up of a group of stockholders, or corporation people who own interest in the business. 7 of 11

8 costume traditional clothing of a region or country. cotton cloth made from fibers of the cotton plant. crime unlawful activity. curry decade 10 years. drug trafficking economic downturn economy food associated with India that features spicy sauces, vegetables and sometimes meat. buying, selling and transporting of illegal drugs. part of the business cycle when the exchange of goods and services slows down. Also called a recession. system of production, distribution, and consumption of goods and services. establish verb to form or officially organize. expansion process of enlarging. export good or service traded to another area. fabric cloth. facility a building or room that serves a specific function. factory fiber-optic fiery Term financial crisis one or more buildings used for the manufacture of a product. having to do with the transmission of light through adjective transparent fibers. adjectiveburning or having to do with heat. situation where banks, credit unions, and other institutions suddenly lose much of their value. finished good item assembled and ready for sale. free trade globalization Part of Speech international exchange of goods and services without taxes or other fees. connection of different parts of the world resulting in the expansion of international cultural, economic, and political activities. Definition 8 of 11

9 Term Part of Speech Definition HSBC (HSBC Holdings plc) one of the largest banks in the world. immigration process of moving to a new country or region with the intention of staying and living there. import good traded from another area. incident event or happening. change in economic and social activities, beginning in Industrial the 18th century, brought by the replacement of hand Revolution tools with machinery and mass production. nickname for the current era of humanity, starting with Information Age widespread public access to the internet (the World Wide Web) in the early 1990s. Also called the Computer Age. International organization that tries people accused of war crimes, Criminal Court crimes against humanity, and genocide. Internet vast, worldwide system of linked computers and computer networks. labor force workers or people who are physically and legally able to work. Also called the workforce. Latin America South America, Central America, the Caribbean, and Mexico. Madras type of light cotton cloth. Madras is also the former name of the city of Chennai, India. market central place for the sale of goods. McDonald's largest restaurant chain in the world. merchant person who sells goods and services. migrant, person who regularly moves from place to place, adjective usually in search of work. mill machine used for grinding or crushing various materials. 9 of 11

10 Term Part of Speech Definition an event occurring naturally that has large-scale natural disaster effects on the environment and people, such as a volcano, earthquake, or hurricane. network series of links along which movement or communication can take place. North American (1994) treaty between the United States, Canada, and Free Trade Mexico that reduced tariffs and made trade easier Agreement between the countries. (NAFTA) oil fossil fuel formed from the remains of marine plants and animals. Also known as petroleum or crude oil. outsourcing process of moving jobs and factories to developing countries in order to lower costs. pasta dough rolled or made into shapes and then boiled. popular culture goods, services, ideas, and patterns of their use in a population. port place on a body of water where ships can tie up or dock and load and unload cargo. poverty status of having very little money or material goods. profit money earned after production costs and taxes are subtracted. proliferation very rapid growth or increase in production. raw material matter that needs to be processed into a product to use or sell. religion a system of spiritual or supernatural belief. Silk Road ancient trade route through Central Asia linking China and the Mediterranean Sea. similar adjectivealike or resembling. software electronic programs of code that tell computers what to do. 10 of 11

11 Term Part of Speech Definition standard of amount of goods and services a person in a specific living community or geographic area is able to afford. sushi bite-sized rolls or balls of sticky rice topped with seafood or vegetables. tariff tax imposed on imports or exports. tax money or goods citizens provide to government in return for public services such as military protection. terrorism use of violence and threats of violence to influence political decisions. thrive verb to develop and be successful. tourist person who travels for pleasure. trade buying, selling, or exchanging of goods and services. trade route path followed by merchants or explorers to exchange goods and services. travel movement from one place to another. wage money paid to a person for providing goods or services. wealthy adjectivevery rich. World Trade group that works with governments and international Organization (WTO) organizations to regulate trade and resolve trade disputes between countries. Websites The Levin Institute: Globalization 101 The World Bank: YouThink Globalization Yale University: Yale Center for the Study of Globalization National Geographic Earth Pulse: Globalization National Geographic Society. All rights reserved. 11 of 11