7 Key Characteristics of Globalization

Globalization is a economic, political, technological, social and cultural process that has transformed the world into an increasingly interconnected place and that has affected, in various ways, global markets, technologies, marketing, communications, policies and industrial developments.

Globalization has been a consequence of capitalism seeking to expand international trade, production and consumption. The internet and technological development have been key to globalization.

See also Globalization.

The key and most important characteristics of globalization are the following:

1. Free trade


As the globalization process grows, the development and implementation of various free trade agreements for goods and services between countries of the same or different continents or regions is encouraged, in order to expand markets and increase the economy and productivity. .

See also Free trade.

2. Industrialization


Globalization promoted the continuous industrial development of countries with strong economies and, in turn, favored the industrialization of a large number of developing countries, especially in Latin America and Asia. This also generated greater international economic integration and jobs.

3. Global financial system


The financial system became internationalized and gave rise to the global capital market, for this reason institutions such as the World Bank and the International Monetary Fund have a very important responsibility in terms of decision-making and financial policy formulation.

Large international corporations have played a fundamental role in the economic and financial process throughout globalization, and have received support from these financial institutions.

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See also Finance.

4. Economic globalization


Economic globalization refers to the expansion of the various economic activities that generated an accelerated exchange of merchandise, goods and services at the national and international level.

For this reason, various market regulations have been created in order to observe and analyze the economic activity of a country and the world in general.

See also Economy.

5. Connectivity and telecommunications


The development of technologies, communications and the internet have been fundamental pieces for globalization.

People, politicians, businessmen, among many others, seek fast and borderless communications, in order to share and exchange knowledge, information, technology and culture between countries and regions.

6. Migratory movement


Globalization promoted the migratory movement of millions of people in search of a better job and quality of life.

Multinational companies or corporations began to expand their facilities worldwide and to generate new employment positions and transfer of personnel from one country to another, depending on the training, education and disposition of the individual.

See also Migration.

7. New World Order


G7 meeting in 2014.A new world order is proposed after the process of globalization due to new policies, treaties and commercial, cultural, technological, political and economic connections, in order to determine an international order and control.

For example, in the economic sphere, new markets are opened, free trade is fostered in order to intertwine national and international economies.

Politically, regulations were established that defined an order, rights and freedoms to trade. And culturally, customs, values ​​and traditions were exchanged.

See also Advantages and Disadvantages of Globalization.

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