Globalization and cultural diversity


Globalization is the growing interconnectivity of all aspects of the world, especially the world economy,[1] through IT resources.[2] In practical terms, this means that people and businesses can disregard physical distances using IT. Globalization affects many other global issues as well.

Technology affects globalization in many ways. Technological developments are thought to be the main cause of globalization.[3] The Internet has allowed companies to shift jobs away from central offices. As people in developing countries acquire computers and Internet connections, they will be able to integrate into the global economy and global workforce.[4] Technology also changes what kind of work is done and how it is done. In nearly all cases, the jobs created by technology demand more education and training than traditional jobs.

Technology changes the way business operates by transforming relationships between suppliers, producers, retailers and customers.[5] For example, when a Virginian customer orders a computer from an American retailer online, that product might be shipped from a packaging center in California. The different computer components might have been assembled in India and made in China. This would not have been possible without the Internet and IT.

Other things influencing globalization include news, images, and data flowing across continental borders.[6]

For Children

To a twelve year old, globalization means that people from different countries work together. Cultural diversity is what makes you different from someone in China or Afghanistan.


The primary area changed by globalization has been the world economy.

Outsourcing can be defined as "a company that contracts with another company to provide services that might otherwise be performed by in-house employees." [7]Some reasons why companies might prefer outsourcing are the lower costs, the variable capacity, lack of in-house resources, increased flexibility to meet changing businesses, and the tighter control on budget.[8] Outsourcing is the process by which jobs in developed countries such as America, Britain or Germany are replaced by much lower-paying jobs in developing countries such as India, China or Mexico.[9]

Through outsourcing, businesses can cut costs and lower prices.

An Example

IBM, a major computer IT company, has 43000 Indian employees as of June 2006. Indian workers can do the same jobs as American ones at a much lower salary. This lowers costs and raises profits for IBM.[10]

Cultural Diversity

Cultural Diversity is ethnic, gender, racial, and socioeconomic variety.[11] Globalization has had a profound effect on cultural diversity around the world. These effects have been both positive and negative. Negative effects include the fact that the American monopoly on culture has weakened cultural diversity in foreign countries. However, many international organizations try to foster cultural diversity. Some organizations consider it a "global value" and promote it. [12]

An Example

One example of globalization's affect on cultural diversity can be seen in Saudi Arabia. There, women, who are forced to stay indoors most of the day due to religious constraints, enjoy watching "The Oprah Winfrey Show." This shows both a positive and negative effect of globalization. While it is good that Saudi women can enjoy an American TV show about empowerment, some may say that it is corrupting their cultural diversity. [13]

Social Importance

The importance of understanding globalization is evident whenever one walks into a clothing store. All of those clothes are made overseas. Can you trust that those clothes were made by adults and not children? Can you be sure that American jobs were not lost to overseas workers? Do you know if those clothes are of the same quality as American-made clothing? Do you know if workers are being treated well?

The answer to all of these questions is no. Globalization can make Americans lose their jobs. Globalization is putting China on the fast track to world domination. If one does not understand globalization, one cannot make wise decisions when purchasing. One must understand the issues with globalization in order to be part of the solution, not the problem.

An Example

In the Chinese town of Shenzhen, workers must deal with low pay and are overworked. One 19-year-old worker died after a 16-hour shift. Safety standards are inadequate. As of 2002, 1 out of every three pairs of shoes is made there.[14] This shows that consumers are unaware of the conditions in which their products are made. They are part of a large human rights problem, and need to be made aware.

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