As a business term, globalization refers to the tendency of international trade, investments, information technology and outsourced manufacturing to weave the economies of diverse countries together.It is not an entirely new concept – as far back as ancient times, caravans traveled vast distances to obtain valuables like salt, spices and gold, then traded or sold them once back in their home countries. With today’s technology, globalization has brought the entire world together, with multinational corporations manufacturing, buying and selling goods across the globe. For example, a car company based in Japan might have auto parts manufactured in several different developing countries, then ship the parts to another country for assembly, and then sell the finished car around the world. Globalization has been credited with helping shift wealth to less-developed countries, as corporations take advantage of the lower cost of labor and operation in the developing world, thus creating jobs and economic benefits for the local economy. China is a good example of a country that has benefited immensely from globalization. However, globalization can be a double-edged sword. When countries’ economies are intertwined, economic downturns in one country can cross borders and affect the economies of other countries. Globalization is also often blamed for the loss of jobs in developed nations, as corporations ship manufacturing jobs overseas in order to save costs.
