explain any 3 factors that have enabled globalization?
- TECHNOLOGY DEVELOPMENT
all these ensure:
(i) Availability of capital and foreign investment. (ii) Availability of foreign exchange. (iii) Promotion of small scale industries. (iv) Foreign trade and integration of markets. (v) more establishment of MNCs Hope it helps.
(i) Availability of capital and foreign investment.
(ii) Availability of foreign exchange.
(iii) Promotion of small scale industries.
(iv) Foreign trade and integration of markets.
(v) more establishment of MNCs
Hope it helps.
What generates globalization? What makes it happen? Different social theories offer different interpretations of how and why trans-world connections have grown. For example, liberal economics stresses the role of unfettered market forces in a context of technological change and deregulation. In contrast, Marxist political economy highlights the dynamics of the international capitalist system as the engine of globalization. For many sociologists, meanwhile, globalization is a product of modern rationalism. Others find their explanation of globalization in a combination of these causes.
Technological innovation has contributed to globalization by supplying infrastructure for trans-world connections. In particular, developments in means of transport, communications, and data processing have allowed global links to become denser, faster, more reliable, and much cheaper. Large-scale and rapid globalization has depended on a host of innovations relating to coaxial and later fibre-optic cables, jet engines, packaging and preservation techniques, semiconductor devices, computer software, and so on. In other words, global relations could not develop without physical tools to effect cross-planetary contacts.
Next to technology, regulation has also played an enabling role for globalization. Supraterritorial links would not be possible in the absence of various facilitating rules, procedures, norms, and institutions. For example, global communications rely heavily on technical standardization. Global finance depends in good measure on a working world monetary regime. Global production and trade are greatly promoted by liberalization, that is, the removal of tariffs, capital controls, and other state-imposed restrictions on the movement of resources between countries. Tax laws, labour legislation, and environmental codes can also encourage (or discourage) global investment. In short, globalization requires supporting regulatory frameworks.
Capitalism has been a further force for globalization. Already in the 1850s, Karl Marx noted in his Grundrisse der Kritik der Politischen Ökonomie (A Contribution to the Critique of Political Economy, 1859) that “capital by its nature drives beyond every spatial barrier” to “conquer the whole Earth for its market”. More specifically, global markets offer prospects of increased profits through higher sales volumes. In addition, larger production runs to feed global markets promise enhanced profits due to economies of scale. Capitalists also pursue globalization since it allows production facilities to be sited wherever costs are lowest and earnings greatest. Furthermore, global accounting practices enable prices and taxes to be calculated in ways that raise profits. Finally, global connections themselves (telecommunications, electronic finance, and so on) create major opportunities for profit making.
Other impulses to globalization have come from rationalism as the prevailing modern mode of knowledge. With its secular character, rationalist thought orients people towards the physical world of the planet rather than spiritual realms. With its anthropocentrism, rationalist consciousness focuses on the Earth as the realm of the human species. With its faith in positivist science, rationalism posits that modern, objective ways of knowing have universal validity and can (and should) unite the world. With its instrumentalist logic, rationalism provides efficiency arguments for overcoming territorial barriers to solve human and social problems. In short, as a secular universalism, rationalism provides a knowledge foundation for globalization: a way of thinking that spurs the process.
Many theorists identify one of these forces as the primary engine of globalization and treat other elements as having secondary or no causal significance. Other analysts hold that globalization has a multi-causal dynamic involving the interrelation of several forces.