DEFINING THE MEANING OF GLOBALIZATION

Broadly speaking, the process of globalization is an inevitable phenomenon in human history which has been bringing the world closer through the exchange of goods, products, information, jobs, knowledge and culture. In fact, what is unique from this phenomenon of globalization is the emergence of a modern form of international trade in recent decades, which is aided by the pace and scope of worldwide integration resulting from the unparalleled advancements, as well as the reductions in the cost of technology, communications, science, transport, and industry. As a result, the global markets have become more intertwined and the production process has been made far more efficient by the option to create "world competitive products" whose components are made in different locations along with the ability to ship information and advertise those products easily from one country to the next, whereby locating the manufacturing process is becoming less expensive and this in turn has changed the pattern of overall productions and consumptions across the globe.

First of all, globalization in theory is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. To put it in simple terms, globalization actually refers to processes that promote world-wide exchanges of national and cultural resources, including a string of technological advancements in transportations, telecommunication infrastructures, and the rise of the internet which have become the major factors of globalization; resulting in generating further interdependence of economic, and cultural activities. Although several scholars place the origins of globalization in modern times, there are others who trace its history long before the European age of discovery and voyages to the New World (some even trace the origins to the third millennium BCE since the beginning of the 20^th century where the pace of globalization has intensified at a rapid rate, especially during the Post War era).

Second of all, the International Monetary Fund (IMF) in the year of 2000 identified four basic aspects of globalization, in which they are trade and transactions, capital and investment movements, migration or the movement of people, and the dissemination of knowledge. What’s more, such environmental challenges as climate change, cross-boundary water or air pollution, and over-fishing of the ocean are linked with globalization where its processes affect business and work organization, economics, socio-cultural resources, and the natural environment.

Globalization, in addition to the above subject matter, can also be defined as the process of change to increase interconnectedness and interdependence among countries and economies; bringing the world closer through better world-wide communication, transport and trade links. Hence, this process is not only changing the world dramatically and quickly, but also affecting economic, social, political and cultural aspects of life.

Meanwhile, globalization is manifested in these four interrelated developments:

1. The increase of international exchange of goods and services despite all the restrictions therein.

2. The internalization of production and real investments.

3. The increase of integration of financial markets.

4. The relatively high degree of policy convergence or joint agreement among countries.

The statistical evidence on these developments is arguably impressive. In the trade area, for example, the ratio of international trade to the GDP of all countries has been practically more than doubled over the last two decades. Although trade at this stage has substantially outpaced the growth of the GDP in all facets, however, the major new phenomenon is seemingly placed within the size of services in total trade, particularly in the financial services. After all, globalization encompasses some key dimensions such as helping local businesses to plan and expand globally, sourcing the factors of production (e.g. raw materials, components, machinery, technology, finance) which can be obtained from the best source anywhere in the world, basing the product development and product planning on the global market considerations, and so forth.