Definition
Globalization refers to a process where different parts of the world use almost similar methods of social, political, and economic interactions. This term is very ambiguous but can be classified into the above three broad categories. Socially it involves the systems of human interactions that consist of the transfer of cultures and development of subcultures. In this case, social media and networking sites play a very important role in fostering this concept in various communities. Politically it refers to the exchange of policies and rules that govern national borders and the way they relate with each other in terms of sovereignty and diplomacy. Economically it refers to the smooth flow of imports and exports among countries with minimal trade barriers and restrictions (Lechner 2009).
This means that most of the rules that govern this trade are used by all states to ensure there is a similarity in all the trade activities. Over the past thirty years, the world has undergone great change in all the aspects that touch on human interactions with their environment. Change is one of the main reasons why the process of globalization has become a continuous process since the beginning of life on earth. The modern society has seen great stages of globalization in trade, communication, technology, social trends, and politics. The economy has seen a great expansion of trade from just across a country’s boundary to other countries in the world due to the standardization of international trade rules and regulations.
Initially, trade was bilateral, but due to globalization, it has been expanded to multinational trade that involves more than two countries. The volume of imports and exports has also increased remarkably, and each day millions of tones of goods are exchanged among nations of the world (Robertson 2000). There is a great transfer of human labor and technology from one country to another. Many international trading blocks have been formed to necessitate the easy flow of goods among countries through the standardization of trade rules that reduce the restrictions witnessed earlier.
The growth of imports and exports over the years has led to countries specializing in the production and supply of specific commodities. Most western countries deal with commodities that involve high technology, while the developing countries participate greatly in the supply of raw materials and agricultural products. This international trade has led to the establishment of modern seaports and airports that handle imports and exports and, in the process, help in developing infrastructure (Eriksen 2007). Due to the need to have goods delivered quickly, specialized aircraft have been built to ease the delivery of perishable and urgent goods like flowers and drugs, respectively. Most transactions are done online, and the use of paper documentation is disappearing.
Due to globalization, many toy manufacturers in the United States have incorporated the use of modern technology in their products to ensure that their products tally with the development and changes in technology (Lechner 2009). This has forced many of them to carry out research to establish and predict the trends that technology is likely to follow and use them in their manufacturing processes. This helps in ensuring that they stay in the market as far as attracting clients who are fashion conscious is concerned.
Globalization has had a great impact on market competition that has remained constant and unchanging as compared to the trends and fashions that clients prefer having. Companies have struggled to be at the same level with new technology in order to meet the demands of the consumers (Gopinath 2008). Those companies that embrace modern technology faster benefit more than late embracers due to the fact that people are driven by the desire to own or operate gadgets and equipment that involve the use of modern technology. Those companies that are not able to embrace the use of modern technology in their production and manufacturing processes are edged out of the market due to a lack of sufficient sales to cater to their costs of operations. On the other hand, those companies that are quick to incorporate the use of modern technology in their production processes attract a huge percentage of customers hence realize huge sales and profits.
Conclusion
This is a progressive state, and firms need to have a keen interest in monitoring the market trends in order to be up to date with the tastes and fashions of consumers. Innovations and inventions are vital to the various stages of globalization in society.
References
Eriksen, T. H. (2007). Globalization: The Key Concepts. New York: Berg Publishers.
Gopinath, C. (2008). Globalization: A Multidimensional System. California: Sage Publications.
Lechner, F. J. (2009). Globalization: The Making of World Society. Oxford: Wiley-Blackwell Publishers.
Robertson, R. (2000). Globalization: Social Theory and Global Culture. California: Sage Publications.