Globalization refers to a growing sense of interconnectedness. It is the ways in which developments in one region can rapidly come to have significant consequences for the security and well being of communities in quite distant regions of the globe. It expresses the widening scope, deepening impact and speeding up of interregional flows and networks of interaction within all realms of social activity from the cultural to the criminal. It is not just an economic phenomenon, but includes all the key arenas of modern life: the economic, political, legal, cultural, military and the ecological.
The Four Dimensions of Globalization.
Globalization is characterised by four types of change:.
• It involves a stretching of social, political and economic activities across political frontiers, regions and continents. National sovereignty is becoming increasingly irrelevant.
• It suggests the intensification, or the growing magnitude of interconnectedness, i.e. flows of trade, investment, finance, migration, culture, etc.
• The growing intensity of interdependence as world trade systems of transport and communication increases the speed of the diffusion of ideas, goods, information, capital and people.
• The growing intensity of interdependence with the deepening impact such that the effects of distant events can be highly significant elsewhere and even the most local developments may come to have enormous global consequences. In this sense, the boundaries between domestic matters and global affairs is becoming blurred.
Aspects of Globalization.
• The tendencies for the trans-national corporations to organise production on a global basis: .
(a) TNCs now comprise over 500,000 foreign affiliates established by some 60,000 parent companies based mainly in developed countries. N.b. the expansion of offshore financial markets.
(b) the world's largest non financial TNCs together held U.S $ 1.8 trillion in foreign assets, sold US $2.