Definition of Globalization
Globalization is the process of integrating the country’s economy with the world economy. The following globalization example gives an understanding of the most common type of areas where globalization exists. There are multiple areas where globalization took place. So, some examples of globalization are given below.
Types of Globalization Example
Below are the different examples of Globalization:
Example 1 – Cultural Globalization
Cultures are also being spread without confining to political boundaries. Like, the Greek culture is being spread over Africa, Asia, and Europe which can be seen in the cities having the name of Alexander in Africa, Turkey, and Egypt.
The Silk Road which was made to encourage trade between China and the countries around the Mediterranean Sea will not only flourish the trade between these countries but at the same time also allow the exchange of culture and knowledge. Satellite television also helps in spreading the cultures globally as the shows of the one country will also be broadcasted in many other countries of the world.
Example 2 – Diplomatic Globalization
Globalization not only took place in different industries but there also exists diplomatic globalization. Many international organizations have been established in the past for different reasons considering many of the countries of the world. For the settlement of disputes and providing guidelines on international matters World trade organization was established, for the governance of global health and disease world health organization (WHO) was established, World Meteorological Organization was established as the specialized agency of the United Nations (UN) for collecting the information and monitoring the trends of the Earth’s atmosphere and its interaction with lands and ocean and the European Union (EU) was established with the motive of promotion of human rights, trade, humanitarian aid, and development, etc. The diplomatic organization also consists of things like treaties and cooperation between two or more countries on different issues. For example, the US and China cooperate to combat piracy off Somalia’s coast.
Example 3 – Economic Globalization
MNC’s are operating globally with satellite offices and branches in numerous locations. Like KPMG is operating its office worldwide with its head office in Switzerland. They might outsource their job to be done by a person residing in struggling countries, bringing much-needed jobs for the person and cost-saving for the MNCs. This would be a win-win situation for the company and the employee as he struggled to get the job. Also, one shirt sold in the United States could have been made using the Chinese cotton by the workers in a factory in Thailand which would be shipped after getting manufactured on a French freighter run by a Spanish crew. This shows that due to globalization, the production of even a single product might use the work from many countries to complete the work efficiently and cost-effectively.
Example 4 – Automotive Industry Globalization
Exports of automotive products have grown tremendously because of globalization as co-operation among countries provides better economies of scale. In America, USA in the past the Big 3; GM, Ford, and Chrysler; all have invested heavily in Mexico for car manufacturing. The point is that there is a low cost of production in Mexico, so these companies manufacture cars in Mexico by investing there and then ship back to the US once it gets manufactured. Following this, they were able to become the price maker. We can see some automobile industry using the parts manufactured in other countries for cost-saving, as in a car being assembled in the United States and their parts coming from Japan, Germany, or Korea.
Example 5 – Food Industry Globalization
Consider the adapting edge of McDonald’s. They have the edge of adopting global demand. They are having a presence in more than 100 countries. They focus on appealing to different cultures over different regions. Their success lies in attention to what will work in any country and what won’t. It has a long tradition of adapting the needs of the global market. Their cultural adapting quality can be apparently seen from their decision of launching only vegetarian burgers at outlets opened in some religious places of India. Food is also one of the important factors of globalization. It can be seen in people eating sushi in Peru and Indian food in Europe.
Example 6 – Technological Globalization
The internet is the major contributor to globalization, and that too is not confined to technology but to other areas as well as it helps in the cultural exchange of arts easily. CNN, the global news network, can spread and telecasting its news globally using the technology. The cell phone connects people of all over the world and that too at a multimedia level.
Example 7 – Banking Industry Globalization
Hongkong and Shanghai Banking Corporation Limited are also known as HSBC, founded in the year 1865, is one of the top banks operating in the world. It holds operations in 85 countries globally with its headquarters located in London. This shows that globalization has a good presence in the banking industry.
Trade across the world has got increased because of the concept of a Letter of credit issued for a person by the bank and acts as a representative for him for a defined level of credit. Now people don’t have the risk of bad debt for a trade done with a person in another country who is stranger to him if it is backed up with the instrument provided by the bank.
Conclusion – Globalization Example
Thus globalization is the process of expanding the system from the regional or national level to encompass the entire planet. This trend can be seen in the Trade, Immigration, Communication, Media, Entertainment, Culture, etc. Generally, globalization could be Financial Globalization, Economic Globalization, Technological Globalization, Political Globalization, Cultural Globalization, Ecological Globalization, Sociological Globalization, etc. the above-mentioned example are some of the examples of globalization in different industries. There are various other examples, which shows that globalization exists in various areas.
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