What is globalization and when did it start? The term ?globalization? has been used by economists since 1981 but many agree that the phenomenon really started only during the latter half of 1990's. Many specialists define globalization as a principal economic phenomenon which involves integration of economic systems around the world. This leads to the growth of international trade, investment, and capital. It is also a point where there is a breakthrough in culture, society, and technology between countries. In layman's term it is the ?process by which the experience of everyday life becomes standardized around the world. This term is, perhaps, best understood as the spread of ideas about the environment, democracy, human rights, and less complicated issues like fashion and fads. Because of globalization, the world has become ?flatter? --- removing traditional barriers of language and culture, bridging the enormous geographical divide through science and technology.



Economists and business experts point out that globalization, despite the risk it entails, has already produced tangible benefits. Consumers of goods and services around the world now have the capacity to buy from a the ?world's market.? Increased competition, comparative advantage, and access to wider range of products and services.

International trade, investment and cooperation had actually started more than 50 years ago with the formation of the League of Nations --- the predecessor of the United Nations. International agreements paved way for lower tariffs and enabled tons of goods to be traded around the world. Today, the gap between the rich and poor countries has grown smaller. Even Southeast Asian countries can now compete with its Western counterparts in terms of trade and commerce.

Globalization has also brought unprecedented innovations in technology. Technology has changed the way we work, study, and live our lives. The whole process of doing business had also been revolutionized by technology. Relationships between suppliers, producers, retailers and customers have been transformed by the speed and convenience of technology and 21st century telecommunications. Because of technology, many people have been connected to the world. Expanding technology brings with it new markets, increased demand for products, and greater competition.

Globalization also gave birth to outsourcing which is incidentally one of the reasons why competition in the business sector is now on level ground. Outsourcing, as a business leveraging tool, involves the transfer of management and day-to-day execution of a certain business function to an external service provider. The business company and the outsourcing company enter into a contract that defines the transferred service. Outsourcing providers, design solutions based on the companies background needs. They focus on certain companies' strengths and improve their weaknesses. This enables companies to save time and resources. Outsourcing providers evaluate companies and find out if they possess the right technology and enough capabilities to excel in that particular field. These providers improve companies' chances to sell more products and formulate future solutions, and promote forth coming events and sales. Outsourcing these days proved to be effective and economical for the small and upscale businesses.

Indeed, globalization is a phenomenon or, more appropriately, a immense force for effecting great change through technology, communications, and economics. Time, distance, and geography are no longer seen as walls that divide but opportunities for exploration. Because of globalization, sustainable development of communities and poor countries have also been placed in the center of the world's attention. Aside from bringing enormous profits for the business sector, globalization had also become a means for entire nations to improve their economy, culture, and way of life.