Globalization

Globalization is a phenomenon that brings people across the world together with whatever either communication, transportation, trade, or culture. Formally, globalization is defined as the process of operating business or organization on global scale developing influence, thus Globalization promotes the international flow of trade and capital, free movements of goods, services, people, and information across boundaries. Globalization brought people close together. This is possible due to the advancement of technology that makes it easier to reach from one part of the world to another in a short interval of time. Significantly reducing travel time means it's close enough for people's movement with modern transportation means. Quick spreading of information and communication services globally, in no time people can make their response to other people's actions. This helps to command and control world activities from one corner of the world. 

History of Globalization

Globalization is not a new phenomenon. This occurs when trade, communication, and transportation occur with areas far beyond the boundary and oversees. The example of the earliest form of globalization is the trade links between the Sumerian civilization and the Indus valley civilization. The scale of globalization was on a small scale and in a negligible amount. Later, the globalization trend rises. The modern globalization era begins with the Industrial revolution. The Industrial revolution in the 19^th century was one of the major periods in the history of globalization. After the Second World War, the establishment of UNO was also an important aspect in this regard. Similarly, the establishment of WTO led to the growth of a uniform platform to settle trade and commercial misunderstanding and dispute.

Globalization, People global citizen

Characteristics/ Features of Globalization

For there to exist Globalization the fundamental aspect is the interconnection among people for their needs, requirements, and making their living. Globalization also characterized international economic integration with economic production. Globalization demands a transnational media system creating a global culture and global consumption hence, creating a global village. Global tourism and media imperialism occur due to globalization. Globalization categorized under the main four categories. They are:

• Liberalization
• Free trade
• Globalization of Economical activities
• Connectivity

Importance of Globalization

Why is globalization important to us? The main reason is that the more we are interconnected the more we depend on the global community for everyday living. In the past socialization Some of the positive aspects of globalization that reflects its importance are listed as;

• Promotion and exposure of local products in international markets
• Foreign investment and technology transfer
• The national economy is integrated with the international economy
• Competition, skills, efficiency and productivity increase
• Easy transfer of capital, technology, labors, information and culture

Negative Aspects of Globalization

Globalization always is not a good in every sector. Some changes observed due to globalization causes a severe impact on local culture, business, and indigenous techniques. Some of the major negative aspects of globalization can be:

• Small and medium scale industries can be adversely affected.
• The government may be pressurized by foreigners.
• Labors, small-scale capital and indigenous raw materials may be completely displaced.
• People with technical know-how may get employed and other unskilled ones may not.
• Risk of causing income inequality in the society.

 

Globalization and Nepal

Nepal had started implementing the policies of economic liberalization since the mid-1980s and after the restoration of democracy formally adopted the policy of liberalization, privatization, and globalization.  Nepal was the first country from the LDC category to be a member of WTO in 2004.

Nepal has gained some benefits from globalization but there are a lot of works to be done to further receive benefits of globalization. Nepal can't benefit a lot although it has the opportunity to contact with global community. The great difference in export and import quantity has drained away millions of dollars every year.

The per capita GNI has increased from 185$ to about 1000$ in the period between 1990- 2018 and the extent of poverty has reduced to 21 % from 49% in the same period of time which is a quite significant decrease. But, this is not a significant positive change from economic prosperity point of view when analyzed per capita income and trade with the international community. Globalization has more negative impacts on Nepal based on the economic point of view as the country is more likely to depends on other nations even on the product is used to produce sufficient for its consumption before.