Globalization is an established process of increasing interconnectedness between societies driven by international trade and investment and facilitated by information technology.
Although widely used, different meanings exist. Thus, we will compare two perspectives of the concept; the economic and the political points of view.
Liberalisation is a driving factor in globalisation, it facilitates trade by removing restrictions on transnational flows, such as trade barriers. From a political point of view, this can be problematic because national authority becomes increasingly irrelevant. In fact, some argue that globalisation ‘refers broadly to the process whereby power is located in global social formations and expressed through global networks rather than through territorially-based states’. (Clark, I 1998:479) and that ‘transnational market forces have become so strong that it was no longer possible for national economic management to control them.’ (Jones, 2014: 22). The world seems to be shrinking in a sense, however ‘this compression is extremely uneven with some areas of the globe left behind. […] Globalization is not occurring at the same rate and same pace in all countries or regions.’ (O’Brien & Williams: 2013, 27)
From an economic point of view, globalisation has reinforced global trade and investment with governments adopting free-market economic systems to facilitate cross-border trade and develop their productive potential and opportunities for foreign trade and investment. These policies have opened economies internationally and created tremendous increases in global trade flows that. Some describe globalisation as ‘the capacity of the world economy to operate as a unit in real time’ (Held, 2005:53-58)
Globalisation has many economic advantages however it threatens national sovereignty and the current global political system by redefining international borders.