For one to understand the costs and benefits of globalization and localization one first needs to understand what each entails. Globalization is when a country involves itself into international affairs, economically, politically or even possibly culturally. Globalization expands beyond the local boundaries of a nation and spreads into other communities throughout the world. Localization is when a country chooses not to participate in global affairs and confines itself and its people from taking part in any type of involvement with any other country. This means that this country does not participate in any economic, political or culture issues with outsiders.
In many articles addressing business today, one can read about the views toward globalization. Many feel as though globalization is the best process a business should pursue. This process of globalization offers a way in which countries can become involved with a nation for common interests. By using the globalization process, a country can learn new ways of technology. For example, the United States could involve itself with a country that mainly depends on farming for their economic stability and learns from them their enhanced techniques that our farmers could apply to make their crops grow better. In turn the U.S. could set up some kind of, trade with this agricultural country. Possibly, the U.S. could teach this country on how to make their economy stronger by becoming involved in the global free trade markets were they could make excellent profits on their produce. This way the United States and the agricultural country would both earn a great deal from this global involvement.
This leads into another advantage for globalization, trade. Some countries have immersed themselves into the trade markets of the global economy. Nations see this as a way to make money easily and effectively. By trading with one another, countries can build up there economy by producing only what is needed and not waste time and money on products that they can get from other countries that produce it faster and for less money. The global economy is a way in which counties benefit from communication with outside world.
Nations can also benefit culturally from globalization. By immersing, themselves in other cultures people gain a better sense of the world. Globalization does not just deal with the economy and business but also involves the cultural aspects as well. The world is diverse that there are many people who do not know or understand why certain ethnic groups practice or believe in certain customs and religions. With globalization people learn about these different cultures to try and understand the traditions and customs that are unlike their own. Globalization connects the world by a common thread of knowledge so we can understand one another and appreciate differences and not be sheltered from the outside world.
Sheltering its people from the world is what some nations have chosen. This...