In simple terms, the phenomenon of globalization is perceived as increased inter-connectedness of the world (Papers4you.com, 2006). However there are three primary defining pillars of globalization that includes cultural, political and economic dimensions (Potter, 2002). It was argued that cultural globalization is increasing convergence of cultural styles on a global norm, with that norm being codified and defined by the global capitalist system. Now cultural values and norms are shared and adopted among people in a way where we are giving rise to one global culture. Similarly it was asserted that political globalization is regarding as erosion of the former role and power of the nation-state.

On the other hand, Potter (2002:192) defines economic globalization as economy where distance has become less important to economic activities, so that large countries sub-contract to branchplants in far distant regions, effectively operating within a borderless world. However Inoguchi (2001) attempted to differentiate between international and global economy. International economy suggests importance of national economies working as units under national states as a result the international economy concerns activities that take place among various national economies. However global economy describes unity of globe where geographical distance is no longer obstacle to economic activities. It also implies aggregation of the movement of goods and services worldwide together with their concomitant activities including movement of technology information and currencies without tyranny of distance.

The economic globalization was flourished in 1990s and many examples can be taken to validate this argument (Papers4you.com, 2006). For instance Western European integration was first step towards economic globalization by European countries through signing Maastricht Treaty in 1991 that lead to creation of single market in 1992 and set base for European Union that was on full operation in 1999. Similarly 12 members of European Community and seven members of EFTA formed European Economic Area for free trade including 380 million people and accounted for 40% of world trade (Meredith & Dyster, 1999).

How ever it was the signature on First Act Embodying the Results of the Uruguay Round of Multilateral Trade Negotiations in April, 1994 that developed the official foundation of first real concept of borderless global economy (LeQuesene, 1996). The primary aim of Uruguay Round was finalizing ways to reduce tariff barriers in developed countries as well as reduce non tariff barriers like elimination of safeguarding, antidumping restrictions and voluntary export restraint (Meredith & Dyster, 1999:291). Currently, WTO is a body looking after ensuring economic globalization primarily through trade liberalization.

These attempts resulted in boom of what is known as global economic convergence, that is global integration of product (through worlds top manufacturing companies global operations by conducting planning, production and joint research with companies of myriad nationalities and outside their home countries) and financial markets through currency trading, baking and loans and investment in bonds and equity leading towards global homogenization (Kenworthy, 1997).

References

Inoguchi, T., (2001), The World Economy, in Inoguchi, T., (eds) (2001), Global Change- A Japanese Perspective, Hampshire: Palgrave.

Kneworthy, L., (1997), Globalisation and Economic Convergence, Competition and Change, 1997, Vol 2

LeQuesne, C., (1996), The Uruguay Round, in LeQuesne, C., (eds) (1996), Reforming World Trade, the Social and Environmental Priorities, Oxford: Oxfam

Meredith, D., & Dyster, B., (1999), International Economic Impacts on Australia in the 1990s, in Meredith, D., & Dyster, B., (eds) (1999), Australia In The Global Economy- Continuity and Change, Cambridge: Cambridge University Press.

Papers For You (2006) "P/B/653. Negative effects of globalisation", Available from http://www.coursework4you.co.uk/sprtbus18.htm [19/06/2006]

Papers For You (2006) "S/M/81. IN THE MIST OF GLOBALISATION: CLASSICAL STRATEGIC MANAGEMENT IN THE 21ST CENTURY-IS IT WORKING?", Available from Papers4you.com [19/06/2006]

Potter, C (2002), Global Convergence, Divergence and Development, in Desai V and Potter, R. (eds) (2002), The Companion to Development Studies, London: Arnold.