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Thursday, September 19, 2024

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Have We Reached Maximum Globalization?

Economics

2023/03/15

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March 15, 2023

In the early 1900s, people born in countries with relatively high income, or the nations we now refer to as the Group of Twenty (G20), had a substantial predominance in the nation’s literacy rate over countries that were yet to be developed. Now, a century later, the country of origin is a persisting factor that affects people’s education, though the gap between nations with high literacy rates and those with low literacy rates has diminished significantly. In 1900, during which the Netherlands recorded around 90% literacy rate, Peru executed a 24% literacy rate. Now, the Netherlands is approaching a unanimous 100% literacy rate and Peru’s literacy rate finds itself around 90%. Comparing the data from then to now, as time progresses, less originality has an impact on a country’s literacy rate or education-- this is a byproduct of globalization.

Globalization is “the spread of the flow of financial products, goods, technology, information, and jobs across national borders and cultures,” (Fernando). Interpreting the textbook definition, this novel definition is produced: the generalization of the world in which countries are standardizing to a higher level than before. The gap between nations with a high GDP and those with low GDP is decreasing continuously over the years, forming a general trend in modern sociology.

Globalization began in 1492 when Christopher Columbus began the interaction between continents located thousands of miles away. The first result of Columbus’s voyage was the Columbian Exchange, the name patently derived from Christopher Columbus. The Columbian Exchange comprised the global flow of people, animals, crops, and diseases–the first glimpse of globalization. Now, since the internet is virtually borderless, people obtain information regardless of their location in the world, under the premise of having a network connection. The formation of cyberspace has greatly contributed to globalization, by contributing to shaping the globe as egalitarian. When Russia struck Ukraine on the 24th of February, 2022, the world was notified in seconds. As the world is notified of the same information, the knowledge of the globe becomes standardized to a higher level, thereby contributing to globalization.

Not only news but also products are imported and exported to and from all nations. Even North Korea, a country that prohibits trade without authorization, imports petroleum, vehicles, aircraft, and more. It is clearly visible in photos that Kim Jong-un, the supreme leader of DPRK, enjoys his ride in his German sedan, Mercedes Benz. Zooming into the imports and exports of vehicles, Hyundai, a Korean automobile company, exports to 193 countries globally–essentially every recognized nation in our world.

In 2023, we confront the inquiry of whether or not we have reached maximum globalization, and whether globalization is beneficial or detrimental. Maximum, or extreme globalization could mean a number of things, such as the world operating under a single monarchy–unlikely–or the world’s GDP equalizing to the same amount–also unlikely. Supposedly, as extreme globalization is highly unlikely, it implies that “maximum” globalization exists. While we have not yet reached the apex, the world is still approaching the zenith. The speed in which we reach utmost globalization would decline over time, as the impacts of the factors driving globalization–such as the cyber media or trade–would decrease as such factors are less significant due to more globalization taking place–a similar notion to the logic behind the production possibilities curve in macroeconomics. Globalization has progressed to an extent that we believe this globalized society is the way it has been since the beginning. As mortals are hastily engaged in their jobs and roles in a rapidly evolving society, it is important to reflect on which direction our global community is heading.

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