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Globalization provides numerous advantages to business and consumers around the world. At the same time, some critics believe globalization is harming various aspects of life and commerce. In what ways is globalization good for firms and consumers? In what ways is globalization harmful to firms and consumers?

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Globalization is a process of interaction and integration among people, companies and governments worldwide. It can be defined as an invisible bridge that connects to all the countries and maximizes the possibility of having intercommunication existing around the world. In general, the existence of globalization helps to build international business in order to let people from different countries be able to exchange their own goods and services. It greatly enlarges the business opportunities as they can promote and explore their markets to other countries and earn more profits. Therefore, this trend makes all the countries being bundled together like a web and form a world economy as each country starts to become necessary to rely on the other countries for getting the resources they do not have, for example the technology development and technological research require a lot of resources.

Of course, technology development is continuously advancing day by day, and it is really common today that everyone hands with at least one mobile phone. Hence, the globalization process will become easier for all of us. For example, like we are studying via online platforms, there are many students who come from different countries too, and the way we participate in the same virtual meeting room and communicate with each other is how we are doing globalization. The barriers to interacting with the people from different countries are being minimized due to technological advancement, as it is not necessary that we must do everything physically, like taking a plane to other countries for discussion or building a physical store for selling, not necessary anymore. So, as intercommunication becomes a trend today, it will gradually make all the countries become syncretic as “one”, with no racism, discrimintion, and prejudices.

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1. Economic Globalization

Economic globalization is like a world economy which supports the whole economic concepts and systems around the world, in order to let the economic flows between different countries be smooth and increased by growing the scale of cross-border trade of commodities and services, flow of international capital and wide and rapid spread of technologies. For example, economic globalization forces the removal of the regulatory rules imposed on economic affairs of a country and to expose the domestic economy to the world, in this case, it will be more understanding about the economic situation of each country and make the processing of spontaneous lending, finance, and investment throughout the world become possible.

2. Social Globalization

Social Globalization is the sharing of ideas and information between different countries. It is always occurring everyday as the global internet and social media provide a really good platform for us to expand our viewsight and communication system with the people who come from different countries. For example, movies and songs can be a kind of social globalization tool.

3. Cultural Globalization

Cultural globalization is the transmission of ideas, beliefs and values around the world in order to extend social relations with other countries. Based on this, even if there are diversified products in the business markets, all these international brands have to do with the dignity of local culture and the touch of social customs.

4. Political Globalization

Political globalization is showing the development and growing influence of international organizations such as the UN or WHO which means governmental action takes place at an international level. When it takes place, it is often extending the boundaries of the single state of the international organization to the international sphere of many states, in order to spread its influential forces.

5. Environmental Globalization

Environmental Globalization is the internationally coordinated practices and regulations which in the form of international treaties regarding the environmental protections. It is important to have the existence of environmental globalization, even though many people think that industrialization is the important part of developing globalization. However, it does not seem all correct as the harmful chemicals from industrialization have been thrown to the environment and it affects the environment dangerously which may consequently destroy the ecological cycles.

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What are the 5 Important Types of Globalization?

The impacts of globalization are multi-dimensional. It affects worldwide societies in the aspects of Economic, Social, Political, Cultural, and environmental. There are the main 5 types of globalization. These are:

1. Economic Globalization [Types of Globalization]

The concept of globalization as a whole is largely economic. Globalization has emerged and developed mainly as an economic concept and system.

Economic globalization is the economic connection of a country with the global economic system.

Globalization in the economic field is free economic adoption. This is to remove the regulatory rules imposed on a country's economic affairs and to expose the domestic economy to the world.

Features of Economic Globalization

Prominent economist Peter Drucker in his New Realities, discusses the economic features of globalization. They are

Due to globalization, international organizations have spread globally to make the entire world a mere production and product-service market.

The main objective of the global economy is to maximize the market.

Investment in the globalization process has become a trade, not an investment in the trade.

Due to globalization, the power to make decisions is transferred from the national state to the regional alliances.

In the globalization economy, the management system dominates as a component of production.

Globalization is mainly driven by the transaction of money. Again, the existence of an individual response to these financial transactions is seen. Unproductive foreign capital creates adverse effects on the global market.

In economic globalization, there is a process of almost spontaneous lending, finance, and investment throughout the world. Information beyond the borders of the national state organizes this process.

What Is Globalization And History Of Globalization [4 Phases]
2. Social Globalization [Types of Globalization]

It is another one of the important types of globalization. Social globalization is a process. As a result of this process, traditional social institutions become weak. The identity of the socialized people is renewed.

People are no longer members of a particular community or nation because of the new identity.

In the pre-modern world, the context of human identity was narrow and limited. In terms of family, ethnicity, tribe, village, religion, etc., the identity of individual people was determined.

The target population is also made up of the population of the state. As a member of the state, the identity of the citizenship or nationality of the people prevails.

According to the opinion of a group of sociologists, as the globalization process expands, the personal and collective identities of people become weaker.

Former identities of the past lose their importance. Relationships with people from distant places developed due to the development and expansion of new technologies, the expansion of business and communication systems, In this case, the Internet, e-mail, website, etc. opens up a new world in front of people.

Advantages and Disadvantages of Globalization

3. Cultural Globalization [Types of Globalization]

The process of cultural globalization is also sometimes called McDonaldization.

Cultural globalization is the process by which a world-class of goods, ideas, and information is produced in one part of the world. As a result, cultural differences between different races, regions, and individuals are removed.

The emergence and development of international or multinational companies and the emergence of global goods have partly driven the process of globalization.

The revolutionary development and expansion of information technology, the expansion of satellite-based communication systems, the Internet, the telecommunication infrastructure, and various global media corporations are highlighting the process of globalization.

However, as culture helps globalization, so does obstruction. As the elements or forces of globalization are enriched by culture, so is resistance.

Hollywood movies are screened worldwide. Adidas sports goods are sold around the world. The Coca-Cola market is worldwide. McDonald's has demanded the world's fast food market.

Such products are many and varied worldwide. But all these international brands have to do with the dignity of local culture and the touch of social customs.

4. Political Globalization [Types of Globalization]

Political ideology is often referred to as one of the characteristics of globalization. That is, the expression of globalization also occurs in political ideology.

The transformation of liberalism is called an example of political ideology in the process of globalization. Moreover, the emergence, development, and expansion of Non- Governmental Organizations (NGOs) as an expression of political globalization; The role of the national states is to refer to the role of climate change and so on.

The expression of political globalization has occurred in international organizations. All these organizations exceed the national boundaries.

Extending the boundaries of the single state of the international organization extends to the international sphere of many states.

There are many and many international organizations in the present world. Most of these were formed in the aftermath of World War II. Notable examples of this are the United Nations Organization (UNO), the European Economic Community (EEC), the World Bank, the International Monetary Fund (IMF), and the World Trade Organization (WTO), etc.

Theoretically, nation-states can take the initiative in organizing international organizations in a coherent and organized manner without sacrificing their sovereignty.

Transnational-state boundaries may force international institutions to impose their will on states.

5. Environmental Globalization [Types of Globalization]

Environmental globalization refers to internationally coordinated practices and regulations in the form of international treaties regarding environmental protection.

The growth of globalization and its impact on the global environment is an important concern to the world.

According to some environmentalists, there is no doubt that the tide of development that has come under the influence of globalization is actually polluting the environment. To them, globalization increases our consumption of a lot of products made through natural resources which is affecting the ecological cycle very badly.

Many think that industrialization is part of globalization and the process of industrialization has been increasing with the help of globalization. Due to industrialization harmful chemicals have been thrown to the environment and it affects the environment dangerously.

It can be easier to understand with an example. 2 nd December 1984, in India, an accident occurred at the Union Carbide pesticide plant in Bhopal (the capital city of the Indian state of Madhya Pradesh).

This plant accidentally released almost 30 tons of highly toxic gas which is called methyl isocyanate and other poisonous gases as well. The gases were spread throughout its surrounding town populated with 600, 000 people and those gasses affect them very badly, around 15000 people founded death and till now those who effect direct or indirectly but alive have given birth to mentally or physically challenged children.

A must-Read- Globalization is a Myth or Reality

Local people fought to clean up the places which affected but this process slowed when a Michigan-based company took over Union Carbide in 2001.

Globalization can increase our standard of living but decrease our standard of life polluting air, water, and other living things. So, environmental responsibility should be established throughout the globe.

In a positive sense, globalization also can decrease the bad effect on the environment by establishing a global regulating system to ensure environmental protection.

Sustainable Development and Environmental Globalization

10 th September 2015, 193 countries gathered at UNO and launched a program called Sustainable Development Programme with 17 goals for the overall development of every human being on the planet by 2030.

Out of those 17 goals, the no 13 was Climate Change. It is said here that the rapid change of climate is a serious threat to the earth which is why every country should reduce its pollution by implementing several regulations.

WTO and Environmental Globalization

Although WTO has no specific agreement to deal with the environment it confirms the government's right to protect the environment. That is why it has met some environmental measures while conducting business deals for sustainable development.

Out of several measures, the green provisions of the WTO refer to countries for the protection of human, animal, or plant life and safeguarding their exhaustible natural resources.

Let me share with you what you have learned from " 5 Types of Globalization ".

Recommended Book

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There are the main 5 types of globalization. They are Economic globalization, Social globalization, Political globalization, Cultural globalization, and...

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Avijit Biswas, (September 2020), 5 Important Types of Globalization. Retrieved from
https://schoolofpoliticalscience.com/what-are-the-5-types-of-globalization/

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In conclusion, we can understand that there is no exact right or wrong in globalization, and it makes sense because everything in this world must be bound with both advantages and disadvantages, it just depends on how we play its role more tendency towards advantages rather than disadvantages. Aside from selling goods and services to other countries, globalization also includes the important terms of exchanging ideas or beliefs and intercultural communication. Exchanging ideas or beliefs are basically based on the traditional beliefs from their history, and we can define it as a knowledge as well as it can let us learn more about the new things that we did not know before, it will greatly help us to grow our mind too to have more exploration on ideas in the future. Hence, after we exchange our ideas and beliefs, we will be able to gain more useful information that will literally provide a breakthrough to us, especially when we are struggling with some hard problems. Besides, intercultural communication is for us to understand the cultures and religions of other countries. This communication is really important to all of us especially when we want to explore markets in other countries, because it is kind of respect and sincerity that we follow their rules when we step into their markets. And with communication, the misunderstandings between different countries will be minimized as well. Definitely, with respect and sincerity will help to build a good relationship between different countries, and lastly build a peaceful world, without war and without any prejudices and discriminition.

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Stobierski, T. (2021, April 1). 6 Pros and Cons of Globalization in Business to Consider. Business Insights Blog. Retrieved May 4, 2022, from
https://online.hbs.edu/blog/post/pros-and-cons-of-globalization

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F.E. (2018, January 25). The Economic Benefits of Globalization for Business and Consumers. Fredrik Erixon. Retrieved May 4, 2022, from
https://ecipe.org/publications/the-economic-benefits-of-globalization-for-business-and-consumers/

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Inspira-Journal of Commerce, Economics & Computer Science (JCECS) 249 ISSN : 2395-7069 General Impact Factor : 2.0546, Volume 03, No. 04, Oct.-Dec., 2017, pp. 249-252，from
https://inspirajournals.com/uploads/Issues/1242329937.pdf

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Biswas, A., sinha, R., hamisu, L., Melkie, E., Turay, E., Jain, A., Mtango, J., Merab, Hailu, Francis, ogwal, Khamis, M., Precious, Samuel, O., & Kutrapali, R. (2020, September 12). 9 advantages and disadvantages of globalization. SCHOOL OF POLITICAL SCIENCE. Retrieved April 2022, from https://schoolofpoliticalscience.com/advantages-and-disadvantages-of-globalization/

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Competitive pricing: Definition, Advantages & Disadvantages. Prisync. (2021, October 18). Retrieved April 2022, from https://prisync.com/blog/competitive-pricing-advantages-vs-disadvantages/

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Benefits and challenges of globalization. Globalization Partners. (2022, February 25). Retrieved April 2022, from https://www.globalization-partners.com/blog/benefits-and-challenges-of-globalization/#gref

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Benefits and challenges of expanding to Mexico. Globalization Partners. (2021, September 9). Retrieved April 2022, from https://www.globalization-partners.com/blog/benefits-and-challenges-of-expanding-to-mexico/

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Not everything about globalization is beneficial. There are winners and losers in any change, and people living in communities have always relied on outsourced work elsewhere and are often affected. 🕴

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Not everything about globalization is beneficial. There are winners and losers in any change, and people living in communities have always relied on outsourced work elsewhere and are often affected. 🕴

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1. Unequal economic growth.

While globalization tends to promote economic growth in many countries, growth is not the same - rich countries often benefit more than developing countries. For developing countries, economic globalization has brought about the exploitation of labor. One of the characteristics of economic globalization is the integration of labor market. A typical embodiment of labor market integration is that multinational enterprises try their best to build a global production chain in order to reduce production costs and improve competitiveness in order to maximize benefits, so as to carry out international division of labor and hand over some low value-added processes to OEM factories in developing countries. However, due to the uneven distribution of processes and profits, the workers in the OEM factory can only get a small profit. According to an overseas report, in the production of an apple mobile phone, American workers contracted the process of appearance design and software development, Japan and South Korea provided hardware technical support, and Chinese OEM factories undertook the main assembly work. However, a small part of the American brain can make 49.4% of the profits, while China's extremely large number of workers can only share 4% of the profits, and the rest is divided by Japan and South Korea. In addition, due to the relatively imperfect labor laws in developing countries, many bosses often take advantage of the loopholes in the law in order to earn more from the originally meager profits, requiring workers to repeat boring work in an inhumane environment for a long time, and in order to save costs and reduce labor benefits, so that they can not get due protection, so that "sweatshops" came into being. Therefore, although the integration of labor market in globalization seems to have brought employment opportunities to developing countries, their people have not improved their quality of life.

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Image

Photograph by Mushfiqul Alam

Put simply, globalization is the connection of different parts of the world. In economics, globalization can be defined as the process in which businesses, organizations, and countries begin operating on an international scale. Globalization is most often used in an economic context, but it also affects and is affected by politics and culture. In general, globalization has been shown to increase the standard of living in developing countries, but some analysts warn that globalization can have a negative effect on local or emerging economies and individual workers.

A Historical View

Globalization is not new. Since the start of civilization, people have traded goods with their neighbors. As cultures advanced, they were able to travel farther afield to trade their own goods for desirable products found elsewhere. The Silk Road, an ancient network of trade routes used between Europe, North Africa, East Africa, Central Asia, South Asia, and the Far East, is an example of early globalization. For more than 1,500 years, Europeans traded glass and manufactured goods for Chinese silk and spices, contributing to a global economy in which both Europe and Asia became accustomed to goods from far away. Following the European exploration of the New World, globalization occurred on a grand scale; the widespread transfer of plants, animals, foods, cultures, and ideas became known as the Columbian Exchange. The Triangular Trade network in which ships carried manufactured goods from Europe to Africa, enslaved Africans to the Americas, and raw materials back to Europe is another example of globalization. The resulting spread of slavery demonstrates that globalization can hurt people just as easily as it can connect people.

The rate of globalization has increased in recent years, a result of rapid advancements in communication and transportation. Advances in communication enable businesses to identify opportunities for investment. At the same time, innovations in information technology enable immediate communication and the rapid transfer of financial assets across national borders. Improved fiscal policies within countries and international trade agreements between them also facilitate globalization. Political and economic stability facilitate globalization as well. The relative instability of many African nations is cited by experts as one of the reasons why Africa has not benefited from globalization as much as countries in Asia and Latin America.

Benefits of Globalization

Globalization provides businesses with a competitive advantage by allowing them to source raw materials where they are inexpensive. Globalization also gives organizations the opportunity to take advantage of lower labor costs in developing countries, while leveraging the technical expertise and experience of more developed economies.

With globalization, different parts of a product may be made in different regions of the world. Globalization has long been used by the automotive industry, for instance, where different parts of a car may be manufactured in different countries. Businesses in several different countries may be involved in producing even seemingly simple products such as cotton T-shirts.

Globalization affects services too. Many businesses located in the United States have outsourced their call centers or information technology services to companies in India. As part of the North American Free Trade Agreement (NAFTA), U.S. automobile companies relocated their operations to Mexico, where labor costs are lower. The result is more jobs in countries where jobs are needed, which can have a positive effect on the national economy and result in a higher standard of living. China is a prime example of a country that has benefited immensely from globalization. Another example is Vietnam, where globalization has contributed to an increase in the prices for rice, lifting many poor rice farmers out of poverty. As the standard of living increased, more children of poor families left work and attended school.

Consumers benefit too. In general, globalization decreases the cost of manufacturing. This means that companies can offer goods at a lower price to consumers. The average cost of goods is a key aspect that contributes to increases in the standard of living. Consumers also have access to a wider variety of goods. In some cases, this may contribute to improved health by enabling a more varied and healthier diet; in others, it is blamed for increases in unhealthy food consumption and diabetes.

Downsides

Not everything about globalization is beneficial. Any change has winners and losers, and the people living in communities that had been dependent on jobs outsourced elsewhere often suffer. Effectively, this means that workers in the developed world must compete with lower-cost markets for jobs; unions and workers may be unable to defend against the threat of corporations that offer the alternative between lower pay or losing jobs to a supplier in a less expensive labor market.

The situation is more complex in the developing world, where economies are undergoing rapid change. Indeed, the working conditions of people at some points in the supply chain are deplorable. The garment industry in Bangladesh, for instance, employs an estimated four million people, but the average worker earns less in a month than a U.S. worker earns in a day. In 2013, a textile factory building collapsed, killing more than 1,100 workers. Critics also suggest that employment opportunities for children in poor countries may increase negative impacts of child labor and lure children of poor families away from school. In general, critics blame the pressures of globalization for encouraging an environment that exploits workers in countries that do not offer sufficient protections.

Studies also suggest that globalization may contribute to income disparity and inequality between the more educated and less educated members of a society. This means that unskilled workers may be affected by declining wages, which are under constant pressure from globalization.

Into the Future

Regardless of the downsides, globalization is here to stay. The result is a smaller, more connected world. Socially, globalization has facilitated the exchange of ideas and cultures, contributing to a world view in which people are more open and tolerant of one another.

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Image Photograph by Mushfiqul Alam Put simply, globalization is the connection of different parts of the world. In economics, globalization can be defined as the process in which businesses, organizations, and countries begin operating on an international scale. Globalization is most often used in an economic context, but it also affects and is affected by politics and culture.

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2. Environmental damage caused by globalization.🗺

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2. Environmental damage caused by globalization.🗺

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For multinational enterprises in developed countries, in order to avoid their own mature environmental protection laws, when building a global production chain and carrying out international division of labor, they will migrate some production links with high energy consumption and high pollution to developing countries, take advantage of the loopholes of local immature environmental protection laws and regulations to avoid their due environmental protection responsibilities. Even if the local laws and regulations are quite perfect, the local government often turns a blind eye to multinational enterprises because it hopes to develop locally and provide them with tax and employment opportunities. Therefore, this will cause great irreversible damage to the local ecological landscape, break the ecological balance and hinder sustainable development. In addition, because the raw material market, labor market and commodity market are all over the world, enterprises around the world need to use more energy for transportation, which will eventually increase greenhouse gas emissions and accelerate global warming. Finally, due to global procurement and international division of labor, the cost will be reduced. Consumers will also be able to buy goods at a lower price. When the cost of acquiring new goods is too low, it is easy for people to form the habit of excessive consumption, resulting in an increase in the amount of solid waste, a large amount of unnecessary waste and damage to the environment.

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Some people believe that the commodity market integration under globalization can make consumers have more choices, which is more beneficial than harmful. Because consumers around the world can ignore geographical restrictions and buy products and services from other countries. For example, Huikang, a chain store of Jardine's in the UK, has a large number of branches in Southeast Asia. In these super department stores, consumers can find chicken wings from Brazil, Chinese cabbage, Thai rice, American corn, potatoes and so on. This has greatly increased their choices. In order to improve their competition, many local manufacturers can only lower their prices or improve their quality, so that consumers can consume better goods at lower prices. However, this is only temporary. In the long run, in the continuous growth and competition of multinational enterprises, powerful basic industries will eventually monopolize. When all small and medium-sized enterprises are kicked out, without competitors, oligarchs can collude in pricing and wantonly raise commodity prices to make huge profits, and consumers can only be forced to accept it, because they really have no choice. Therefore, in the long run, economic globalization not only does not bring benefits to consumers, but also hurts the rights and interests of consumers.

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The economic advantages of globalization to a significant part of the world are difficult to disregard. Increased trade to bigger and more diverse business sectors brings about more noteworthy revenues and increased gross domestic product (GDP). World GDP has developed from about $50 trillion in 2000 to about $75 trillion in 2016, basically because, of economic interdependence and the increased global trade it permits.
For example, India is a country the GDP has gained advantage age from globalization in the technology sector as the United States relies on India for half its computer service imports and has seen an increase in the value of computer service exports from $11 billion in 1995 to almost $110 billion in 2015.
Globalization additionally implies that businesses can understand more prominent benefits by taking advantage of beforehand untouched business sectors and exploiting lower local costs. By venturing into new nations, businesses arrive at business sectors that are ravenous for their original merchandise and eager to pay as much as possible for them. They can accomplish higher revenues in unsaturated business sectors while setting aside cash through the lower cost structure that results from cheaper labor, lease, and materials.

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Image 2: Small Prices with the Best Quality will gain a competitive advantage. 

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Global competition in the business sectors prompts both quality and affordability products. As customers acknowledge they have an assortment of choices from all edges of the globe, they will decide to buy the best and least expensive choices, expecting organizations to upgrade the quality and give reasonable costs assuming that they wish to stay competitive. The outsourcing of work additionally adds to lower costs, as many organizations employ unfamiliar laborers to accomplish the work for lower pay.

Globalization allows firms to find lower-cost ways of creating their products. It additionally increments global competition, which drives costs down and makes a bigger assortment of decisions for customers. Lowered costs help individuals in both creating and as of now evolved nations live better on less cash.

For example, Fitbit watches are priced at RM250.00 whereas else Apple watches are priced at RM1700.00(+), Therefore the quality of FitBit is as good as Apple watches and Fitbit charges considerably reasonable rather than Apple as Apple is an established brand. Therefore due to powerful branding consumers are willing to pay much more than they would with a competitor brand buFitbit'sit quality and features are almost with Apple Watches.

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Image 3 : How technology & Knowledge can be spread through the Internet from all over the Planet. 

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3. The Spread of Technology and Knowledge 

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3. The Spread of Technology and Knowledge 

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Numerous nations all over the planet remain continually connected, so knowledge and technological advances travel rapidly. Since knowledge additionally moves so quickly is implies that scientific advances made in Asia can be working in the United States surprisingly fast.

Apparently one of the top benefits of globalization has been the quick spread of technology around the world. Google, Dell, and Microsoft, for instance, all have workplaces on numerous continents. Non-industrial nations frequently appeal to investors due to the tremendous potential for development. The resulting advancements lead to results like the spread of motorized farm hardware in Southeast Asia, for example, where there had beforehand just been manual work.

NGOs additionally incorporate and spread knowledge. At the point when clinical experts from around the world met up through Doctors Without Borders, in collaboration with the World Health Organization, and attempted to kill SARS in Vietnam, they arranged a "SARS unit" a short time later and created rules for managing the disease. They shared these materials overall to assist emergency clinics with managing the sickness.

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Globalization makes it simpler than at any other time to get to an unfamiliar culture, including food, films, music, and art. This free progression of individuals, merchandise, art, and data is the explanation you can have Thai food delivered to your condo as you pay attention to your #1 UK-based artist or stream a Bollywood film on Netflix.

People who travel all over the planet for business or recreation and attempt various food varieties, pay attention to various music, read various books, gain openness to various news sources and figure out how to communicate their thoughts, even ineffectively, in another dialect gain a more extensive point of view on the world. Their new knowledge creates more grounded empathy and appreciation for individuals of different societies.