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The World As A Global Village

1563 words - 6 pages

The World as a Global Village The term "Global Village" refers to the widening and deepening of the
global system. The International Monetary Fund (IMF) define
globalisation as "The increasing integration of markets both for goods
and services and for capital." The world village also has a hidden
metaphor. It implies a small space in which people live, one where
they know everything about everyone and everything that happens.

It can be argued that there are a total of seven factors contributing
to the globalisation movement. The first element is the breakdown of
the post-War economic order with the oil crisis of 1973-4. This led to
the second point, the liberalisation and deregulation of the financial
institutions in the 1980s and 1990s. Thirdly, the collapse of the
Communist systems of East and Central Europe in the 1990s meant that
there could be greater integration throughout the world. As a result
of the collapse, Germany could be reunited; therefore the economic
power of the West could be integrated with the East. Furthermore the
rise of the "Tiger economies" in Asia and the Far East have made an
impact because it enabled the production of goods for the lowest
possible price. The deepening debt crisis of the Third World has
brought globalisation to the fore.

One aspect of globalisation is the technological changes and advance.
This can be summed up easily by the example of Satellite Television
that beams similar media across the world. It is only a small number
of international organisations that control the stations. So it can
therefore be argued who governs the world when such organisations and
companies have such massive influence. A second element to
globalisation is that of economic flows. This can be split into a
further four groups. First trade, second capital, third finance and
finally labour.

International trade is the buying and selling of goods across national
boundaries. International trade has three forms; Autarky, which
creates complete self-sufficiency; Protectionism, which imposes import
tax and encourages exports; Free Trade, which is free and complete
movement of trade and goods. It does not have to be a solid object; it
can be the sales of services. But it did have a mystery surrounding it
500 years ago, not many things were traded and what was traded were
expensive luxuries i.e. silk and spices. However, it has now lost that
because many things are now coming from the same places, therefore the
world trade and its economy has been drawn closer.

International trade is important because it, at first sight, appears
to be uncontrolled, having companies that are loyal to states. But
there have been attempts to order leadership and discipline, through
three NGOs, the IMF, World...

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