How globalization affects our daily life and how important it is for the stablity of the country? International Monetary Fund indeed uses globalization for the ease of conducting transactions between countries. However, people also need to know more about the meaning of globalization according to the IMF and other explanations. Therefore, the following is a review regarding this matter:
What is Globalization According to the IMF?
The definition of globalization according to the IMF is a group of people whose job is to regulate the international financial system. In other words, this globalization can indeed be used as a matter related to transactions between countries.
Therefore, activities such as trade, investment, or other economic needs between countries can be easier. As a result, there will be interactions or relationships that are getting better and closer globally.
Types of Globalization
After knowing the information related to the meaning of globalization according to the IMF, then people also need to know the type of globalization. That way, the public’s knowledge about this matter will be increasingly widespread. Then, as for the types of globalization, namely as follows:
1. Globalization of Transportation
This field will continue to experience changes along with the development of globalization. The developments caused by globalization can occur in land, sea, and air transportation. That way, the delivery of a product to the intended location can be done quickly.
2. Economic Globalization
The next type of globalization is the economic field, which is certainly very much needed by people. This type can indeed be seen because of international trade carried out between countries. With this globalization, one does not need to leave the house to buy a product.
3. Cultural Globalization
This type of cultural globalization is indeed one of the most influential in a country. Therefore, people are encouraged to follow a culture that only has a positive impact. That way, globalization can provide good benefits for the country.
4. Globalization of Science and Technology
It is well known that science and technology continue to progress at all times. For this reason, this field is included in the type of globalization. That way, this science and technology can be put to good use to help smooth transactions between countries.
5. Globalization of Communications
A financial transaction, of course, also requires good communication between countries. Therefore, with the globalization of communication, interactions between countries can be established smoothly in terms of this transaction. As a result, this process can run without any misunderstandings.
How Globalization Affects Our Daily Life
Positive Effects of Globalization
It has been explained in the definition of globalization according to the IMF that the main point of this matter lies in the spread of international trade. With globalization, import activities will increase.
Then, import activities will also encourage domestic industries to be able to compete in producing better products and services. Meanwhile, export activities can later become a source of income for developing countries and also create new jobs.
Negative Effects of Globalization
Even though it provides a lot of benefits that are very influential for the country, globalization can also have a negative impact. This will usually be experienced by countries that are not open and limit the expansion of world trade.
As a result, globalization will actually make it difficult for the poor in the country if there is an increase in the price of imported goods. In addition, the variety of products produced will also be increasingly limited.
Process of Globalization
This globalization process certainly cannot happen by itself without any effort being made. Related to this, in fact, globalization can emerge because of the development of science that continues to be carried out by humans.
That way, everything in the world can continue to progress. Therefore, knowledge is indeed very important for people to continue to develop things that already exist in the world.
Characteristics of Globalization
The next explanation regarding globalization that needs to be known as well, is its characteristics. This of course will make people more familiar with the existence of this globalization. With that said, the following are its characteristics:
- There is an increasing number of joint problems.
- Progress of cultural interaction between countries.
- There is interdependence in each country.
- The occurrence of international trade.
- There is a change in the concept of space and time.
That is a review regarding the definition of globalization according to the IMF along with other explanations that are very important to understand. By knowing this information, the public can find out more about developments in international trade.