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Globalization: what it is and how it works

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By Infal Asmat Ghuman

Globalization, supposedly means the spread of products, technology, information, and jobs across national borders and cultures. In economic terms, it describes an interdependence of nations around the globe fostered through free trade. Internet and modern modes of communication have changed the course of trade. According to Amartya Sen, a Nobel-Prize winning economist, globalization “has enriched the world scientifically and culturally, and benefited many people economically as well”.

How globalization works?

Global expansion which intends to expand the platform for trade and flow of information in all directions throughout the world. Besides all the coruscation of globalization and mass media, it is creating a deep identity vacuum in countries which are underdeveloped or have managed to start developing. This not so free flow of trade is definitely cripple struggling economies. For instance, Global brands harm the economies of developing nations, mutilate rivalry, drive out nearby opponents and make customer yearnings which frequently lead individuals into debt. Multinational consumer products have almost 70-80% profit over local products. They create havoc for locally made products which are usually the only source of income in such struggling economies. Besides that, local culture and heritage suffers at the hands of these international brands. Internationally acclaimed brands make their ways into developing countries’ markets and create an identity crisis for the country.

The point to be raised here is that, how this one-way flow of information, economy and products work in reality. Third world countries are becoming unknown and lost in the sea of brands. This has also started an unspoken competition among the people of developing countries, cultivating materialism in them. Where each person strives to buy more expensive product to earn a respectful position in society. Strange it might sound but it would make sense that multinational companies are taking over third world countries predating on their resources and governments give zero to no care regarding this crisis. Materialism is being encouraged and masses are being exploited for their personal interests. If globalization is a true mode of trade and free flow of economy then it should not paralyze these developing nations economically.

 

Infal Asmat Ghuman is a law student in Quaid-i-Azam University (QAU) Islamabad, and occasionally writes blogs and articles.

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