Causes of effect of Globalization
The present globalization is founded the policies of Gorbachev’s “perestroika’ and “Glasnost. Gorbachev wanted reform of the world i.e., liberalization of the world trade, Peace for all, co-operation among the super powers. Ending the cold war and new world order, Gorbachev wanted the social and economical existence of the Soviet Union. But it became the boomerang for the Soviet Union. Later the George Bush Senior ensured the several applications and use of globalization.
The causes of effect of Globalization are:
Expansion of Power: Globalization has highly affected the power of the world the influential and powerful countries and groups of the world have extended their roots widely. Their power and strength was concentrated within the own boundary, but now they have extended their influence to other countries by the help of globalization.
Giving internal Strength to one government: Globalization gives the internal strength to a Government by the help of the other countries.
Increasing the cultural Exchange: Cultural exchange has increased remarkably among the countries due to globalization. In present world all the countries have come closer to one another; that leads the globalization of culture.
Expansion of Terrorism: Expansion of terrorism has ill effect of globalization. The arms market has expanded for globalization. It is increasing the terrorist activities all over the world.
Spreading the Environment Pollution: Globalization affected the world environment too. Pollution of one country is also polluting other countries.
Created Global Market: Globalization mostly affected the world economy. Every country is making the relationship with other countries for trade and economy.
Eliminating the limitation of small domestic market: Through the globalization the domestic market can became very strong with the exporting facilities, assisting the multinationals to the international market.
International specialization: To meet the international demands of the worldwide Consumers, the globalization is broadening the scope of the international specialization of the labor and the products.
Global use of Labor: Manpower is one of the most important factors of the production. So the standard that means the skilled manpower is the demand of the present world. The globalization creates the field of using the global standard products.
Developing international relation: The favorable international trading relation is the precondition of the global business success. So to develop the global fair relations, the global countries should be co-operative in nature.
So world is becoming the global market by the effect of globalization. For the Globalization business is becoming more global now a day.