What is globalisation? The term simply explained

What is globalisation? The term has been an integral part of our linguistic usage for many years. The increasing interconnectedness of the world has an influence on many areas of our lives. You can find out exactly what is behind it here.

What is globalisation? The term simply explained

The term globalisation was first used in the mid-20th century, before becoming established in our fixed linguistic usage from 1990 onwards. It describes the increasing worldwide networking and interconnectedness of politics, the economy, culture and the environment.

• Through globalisation, the world is gradually growing more and more together.
• The development of new media, such as telephones or the internet, and the collapse of the Soviet Union in 1991 favoured globalisation.
• The introduction of various media and their spread to all parts of the world allows people to exchange information without much effort and at low cost.
• With the help of the Internet, information and opinions, but also cultural developments, can be brought to areas that were previously excluded.
• An important feature of globalisation is the opening of national markets. Import bans or tariffs that once existed have either been restricted or removed altogether.
• Globalisation also led to the merger of political alliances such as the UN, G-20 and the EU. But also so-called non-governmental organisations (NGOs) such as Amnesty International or Greenpeace emerged as a result of globalisation.
• Transnational companies (global players) established in several states formed. They produce and sell their goods there.
• Global trade has increased more and more as a result – foreign direct investment has grown.
• International competition is stronger than ever. Many large companies are producing in low-cost production locations in order to keep up.
• With cheap transport and low fuel prices, trade can be conducted and expanded to all countries.
• Through globalisation, the industrialised countries can open up many new markets for their production and are increasingly gaining power and money. This allows them to choose their own country of production.
• Former emerging economies like South Korea, Brazil or India also benefit from globalisation. Through foreign direct investment, they can set up and expand factories.
• This makes goods particularly cheap, as the countries want to keep up with the competition. Wages for employees are correspondingly low.
• Some African countries, however, suffer from globalisation. They cannot keep up with the demands and international competition.
• People in poorer countries that depend on the investments of global players often work in very poor conditions for a pittance. Child labour is also not uncommon.
• Western culture is increasingly spreading globally, causing many traditions and cultures to be lost more and more.