Which Statement Best Describes How Globalization is Affecting The World

Assuming you are on an exam, let’s give you the correct answer without making you wait:

The world is becoming more globalized and connected.

Effects of Globalization

We can examine the impact areas of the phenomenon of globalization on the world in five different dimensions:

  • Economic Globalization
  • Political Globalization
  • Socio-Cultural Globalization
  • Geographical and Ecological Globalization
  • Technological Globalization

Economic Globalization

The developments and growths in world trade in the last century are the most striking aspects of globalization. Since the 1970s, the world economy has started to move away from stable growth, decrease in growth rate, unemployment, and poverty along with mechanization. The activities and controls of national states in economy and trade have decreased, and the effectiveness of international companies in the world economy has increased.

The main actors in this system change are international companies and international organizations involved in foreign capital investments. In order for a company to be considered an international organization, it is not enough to sell its products to cross-border countries, it must have moved a part of its economic activities to other countries by investing.

As we always say, globalization has further increased the material gap between the rich and the poor. While the income gap between the richest 20 percent of the world and the poorest 20 percent in 1960 was 1/30, this rate increased to 1/60 in 1990. While there has been a further increase in the incomes of the high-wage group in industrialized countries in the last 10 years, more families have been deprived of social security, their wages have decreased and they have become even poorer.

It is clearly seen that this injustice in income distribution, globalization affects the world and people not only economically, but also in many ways such as education, socio-cultural life, and politics.

Political Globalization

With the collapse of the USSR in 1990, the state, which is a political and spatial organization in search of new world order, has become frequently discussed, and these discussions intensified with the economic crisis in the 1970s. The power, position, functioning, and actions of the state lie at the heart of the discussions.

Let’s examine the situations that weaken the state in the process of globalization:

  • With the globalization of capital in the world economy, state sovereignty has begun to decline.
  • The developments between the independent and sovereign states and hegemonic powers and power blocs have gradually weakened and limited the sovereign state.
  • International organizations such as the IMF and the World Bank, whose influence and a number have increased since 1945, on the one hand, caused the intensification of global ties, on the other hand, affected the decision-making processes of nation-states.
  • The fact that international law accepts individuals and non-state organizations as subjects besides nation-states is another factor limiting state sovereignty.
  • Global dynamics gradually eliminate the distinction between domestic and foreign policy.

Other factors that corrode the state include the internationalization of illegal activities, global health problems (Covid-19 epidemic), global economy, global culture, environmental degradation, international interventions in the internal functioning of the state, science, and technology.

Globalization has weakened the nation-state and reduced its role in the international arena, making non-state international organizations active. Unfortunately, another inevitable political consequence of globalization is global terrorism.

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