When different nationalities begin to manage their economic decisions along the same procedures or guidelines or when the economy becomes internationally interconnected globalization of economy is believed to have taken place.
There are different viewpoints as to whether the globalization of economy is beneficial or not. In a study conducted by IMF it was discovered that in the last two decades income inequality has risen thanks to financial globalization and technological advancements (which is a factor of Economic Globalization). However it was also discovered that the per capita income has also seen an increase even in the poorer classes. Inequality is on the rise between the different income classes as the well-to-do have a steeper rise in their per capita income as compared to the middle classes. Globalization has raised the eyebrows of even its supporters as they believe that its gains must be more widely distributed to actually encourage other countries to promote globalization. (Falk, 2007)
Initially the responsibility of national governments was to protect the citizens of the state by outsiders, provide shelter and to take care of their needs. But as the global scenario has been changing over time the responsibility of the governments has also included becoming members of global organizations for their survival. This has been due to the global ecological changes, an integrated global economy and other global trends decision making has progressed to the global arena. Institutions such as IMF, European Union, United Nations, and World Bank are the major decision makers and enforcers of policies which should be established by member countries.
This factor of globalization is the most related to International Relations. With the entrance of America into Afghanistan and Iraq, the boycott of Denmark by Iran and Sudan over the cartoons depicting the Prophet and other such global decisions being made the effect of globalization on international relations can be evident. (Seabrook, 1999)
3. Globalization of Culture
Thanks to the advancement in technology and the improvement of communication channels the concept of a global culture has become a possibility. The Internet, TV and radio is breaking down cultural barriers and even the most conservative nations are noticing the change in cultural values. The entertainment industry is currently the most influential in changing cultural values. This raises some ethical issues as to whether using media cultural values are being lost, the languages are losing their importance as English is becoming the universal language and how consumer values may overwhelm the people's sense of social solidarity and community. (Carvajal, 2007)
As far as International Relations is concerned, Globalization of Culture stands at a precarious situation. This form of globalization may help the countries to have a better understanding of each other and more tolerance towards each other. As immigration from one country to another is increasingly