Globalization has been on the rise in recent years. Business wise, companies move out to acquire new markets by setting up new manufacturing plants, service centers or distribution lines in different countries. This has led to increased competitive advantage and economies of scale. More and more companies are fighting to join the global market by working with consumers from different parts of the world. On the social front, people from different parts of the world have an opportunity to connect and share their thoughts. This is good for the world as people get an opportunity to exchange ideas and understand different cultures from different parts of the world. There are a number of factors that have contributed towards the rise of globalization. Though one might hold the view that these factors independently contribute towards globalization, this is not the case as globalization has come as a result of a connection and interdependence between these factors.
One of the factors that have contributed massively towards the growth of globalization is the internet. People from different parts of the world have an opportunity to meet and exchange ideas through a convenient universal medium. Initially, most people knew of mails and website advertisement. However, online social networks have been a major boost when it comes to globalization and multicultural exchange. Take the example of twitter where celebrities from all over the world get to reach out to their fans and people get to connect too. On the other hand, Facebook with a billion users offers a platform for people from different parts of the world, to connect and share experiences. Through this online network, companies can also reach consumers in different parts of the world through ONS advertising. They also allow product purchase and service access through the internet from anywhere in the world. This is something that retail and chain stores couldn’t give them. Therefore, through online marketing, social networking and E-commerce, the internet has played a fundamental part in opening up the doors for globalization and an opportunity for people to connect. The internet supported the rise and continued growth of industrialization by providing a communication platform between stakeholders, consumers and businesses (Reinsdorf & Slaughter, 19).
Apart from the internet, another factor that has contributed to the rise of globalization is industrialization. Though some people might argue that some countries are not industrialized, and they still function within the global network, the impact of industrialization goes beyond the locomotives and huge processing plant. It is essential to look at the issue of the market and expansion. Growth in industrialization has contributed to the massive product development and diversification. Companies need markets for these products, hence the need to go out and explore other regions. The need for new markets comes in because of increased competition and vast production (Tausch, 55). With this company seek to expand to new regions, hence building a global network with a single head. Multinational organizations are a common phenomenon today. They contribute towards cultural exchange and globalization through increasing trade and working with people from different parts of the world to make their endeavor in the global market a success. Through these efforts, they are able to bring people from different parts of the world together and boost international trade. The two have been the center of globalization (Moore, 27).
It is impressive how companies have been able to come up with new products, make production more efficient and reach new markets with ease. This has been possible through innovation. Innovation is not a thing for the technology sector alone but has been at the center of success in most industries today. It has been a driver of technological changes and improvements to the internet. Though innovation, individuals are able to come up with new products and reach their target market in unique ways. The business environment today requires employees and executives to be fast and proactive. This has made innovation the order of the day and it is not letting down those who give it the weight that it deserves. Being innovative is not easy. However, pressures of increased competition and the need to serve consumers better have made the concept a mandate in modern business. Innovation has largely contributed towards the development of the internet and applications that can connect people from different parts of the world. It has helped companies become flexible hence the ability to work in different parts of the world without much tests (Strumsky & Tainter, 3).
The role of innovation in advancing globalization has been massive. Products such as Facebook, Google and email service are all outcomes of innovation. They have been at the center of global interaction and communication. Services such as teleconferencing and e-commerce are all outcomes of innovation. Therefore, it is safe to say that innovation is among the aspects that contribute materially towards the growth of innovation. Finally, there is the issue of capital. Investors and investment institutions in the world today are always on standby to support the growth of a new idea. These new ideas and products require capital and infrastructure so that they can be developed. The availability of capital ensures that these ideas and products are not only developed, but they also reach different parts of the world without much trouble. Therefore, the growth of capital markets and the readiness of investors to support an idea have largely contributed towards globalization. Take the example of Facebook, the latter was started by university students who did not have capital or financial backing to make it a global phenomenon. However, investors stepped in and ensured that the website has all the infrastructure it needs to grow (Strumsky & Tainter, 5).
In conclusion, globalization has come as a result of a number of factors that have a chain effect on each other. Looking at industrialization, it started a lot of years back. However, the cross boarder success of industries has been accompanied by technology and innovation. Through innovation, companies have been able to come up with new products and new and better communication methods have been devised. Furthermore, thanks to innovation, global races and cultures are not only interacting at the marketplace, but they also have an opportunity to share social experiences. Another connection that we can see is the connection between capital and innovation. Through the availability of capital, individuals have had the opportunity to grow their ideas. Companies have also had the opportunity to develop their products and reach different consumers in various parts of the world. Innovation has also helped companies attain production efficiency hence reduce costs, design better products and serve consumers better. Therefore, the connection between internet, innovation, industrialization and capital has been a major contributor towards globalization.
Moore, Karl. Origins of Globalization. New York: Routledge, 2009. Print
Reinsdorf, Marshall & Slaughter, Matthew. International Trade in Services and Intangibles in the Era of Globalization. Chicago: The University of Chicago Press, 2009. Print
Strumsky, D. & Tainter, A. “Complexity and the productivity of innovation”. Systems Research and Behavioral Science 27 (2010): 496.
Tausch, Arno. Multicultural Europe: Effects of the Global Lisbon Process. Hauppauge, New York: Nova Science Publishers, 2008. Print