The Causes Of Globalization

1670 Words7 Pages
ASHE: Task 2 Globalisation is the growing collectiveness of our world economy, tending towards functioning as a singular entity opposed to multiple separate constituents (Longman,2002). Globalisation is not a modern process, and has been taking place for a considerable length of time as stated by Ellwood (2001:12) ‘Globalisation is a new word which describes an old process’. The process itself is fuelled by human innovation and technical progress, this in turn is spearheaded by sizable companies referred to as multinational or transnational companies (MNCs or TNCs), in an effort to expand their operations these businesses expand their global reach in search of new business opportunities, resulting in an interconnectedness between an expansive range of economies. This essay aims to assess the causes of globalisation as well as analysing its effects, not just economically but on a cultural and political level. There is no singular event which caused globalisation, rather a combination of various innovations, created by the human civilization in an endeavour to strive for advancement, along with continued ascension of the human species. Factors that have led to the exponential expansion of globalisation include; heightened social media usage, enhanced capital mobility and simplicity of transactions, growth in complex financial products such as derivatives boasting the global credit market,
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