What is globalization? Explain in detail.
Globalization defined simply as a “borderless world” (Chin and Mittelman, 1997: 25) was not just limited to spread of trade and investment but also spread of popular culture. It is based on the economic theory of comparative advantage (Mourdoukoutas, 2017). It was promoted by the United States as
rational, desirable and inevitable (Kurth, 2007: 148). Globalization, with the spread of capitalism around the world produced two groups of winners. The first group includes the very rich countries (top national and global income distributors) such as USA and England. The latter consists of middle classes of emerging market economies such as China, India, Indonesia and Brazil (Milanovic, 2012). This later on led to the simplistic idea that globalization equals or effectively meant Americanization (Nye 2002). On the other hand, the biggest losers of globalization or “non-winners” were those between the 75th and 90th percentile of the global income distribution which include some
former Communist countries and Latin America (Milanovic, 2012).