GLOBALIZATION

Definition Name for the process of increasing the connectivity and
interdependence of the world's markets and businesses. This process has
speeded up dramatically in the last two decades as technological advances
make it easier for people to travel, communicate, and do business
internationally. Two major recent driving forces are advances in
telecommunications infrastructure and the rise of the internet. In general,
as economies become more connected to other economies, they have increased
opportunity but also increased competition. Thus, as globalization becomes a
more and more common feature of world economics, powerful pro-globalization
and anti-globalization lobbies have arisen. The pro-globalization lobby
argues that globalization brings about much increased opportunities for
almost everyone, and increased competition is a good thing since it makes
agents of production more efficient. The two most prominent
pro-globalization organizations are the World Trade Organization and the
World Economic Forum. The World Trade Organization is a pan-governmental
entity (which currently has 144 members) that was set up to formulate a set
of rules to govern global trade and capital flows through the process of
member consensus, and to supervise their member countries to ensure that the
rules are being followed. The World Economic Forum, a private foundation,
does not have decision-making power but enjoys a great deal of importance
since it has been effective as a powerful networking forum for many of the
world's business, government and not-profit leaders. The anti-globalization
group argues that certain groups of people who are deprived in terms of
resources are not currently capable of functioning within the increased
competitive pressure that will be brought about by allowing their economies
to be more connected to the rest of the world. Important anti-globalization
organizations include environmental groups like Friends of the Earth and
Greenpeace; international aid organizations like Oxfam; third world
government organizations like the G77; business organizations and trade
unions whose competitiveness is threatened by globalization like the U.S.
textiles and European farm lobby, as well as the Australian and U.S. trade
union movements.


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