In economic sphere, globalization brings new opportunities to developing countries through capital injections, new technology and innovative ways of production. After all, the total value of world trade exploded from $57 billion in 1947 to an astonishing $6 trillion in the late 1990s (Easterly 43). In the last few years, the public debate over the alleged benefits and drawbacks of free trade reached a feverish pitch as wealthy Northern countries have increased their efforts to establish a single global market through regional and international trade-liberalization agreements such NAFTA and GATT. Free trade proponents assure the public that the elimination or reduction of existing trade barriers among nations will enhance consumer choice, increase global wealth, secure peaceful international relations, and spread new technologies around the world (Easterly 2001). Following Bhagwati (2001): "Economic globalization constitutes integration of national economies into the international economy through trade, direct foreign investment, short-term capital flows, international flows of workers and humanity generally" (1). There is evidence that some national economies have increased their productivity as a result of free trade. Moreover, there are some benefits that accrue to societies through specialization, competition, and the spread of technology. But it is less clear whether the profits resulting from free trade have been distributed fairly within and among countries. Most studies show that the gap between rich and poor countries is widening at a fast pace (Easterly 34). Free trade proponents have encountered severe criticism from labour unions and environmental groups who claim that the elimination of social control mechanisms has resulted in a lowering of global labour standards, severe forms of ecological degradation, and the growing indebtedness of the global South to the North. The internationalization of trade has gone hand in hand with the liberalization of financial transactions (Webber and Fort, 62). Globalization of financial trading allows for increased mobility among different segments of the financial industry, with fewer restrictions and greater investment opportunities. TNCs (transnational corporations) have consolidated their global operations in an increasingly deregulated global labour market. The availability of cheap labour, resources, and favourable production conditions in the global South has enhanced corporate mobility and profitability. Globalization boosts productivity and improves production processes in LDCs (less developed countries) like China, India, Korea and Singapore. Today, these countries become the core of global production and economic activities (Bhagwat 72).
TNCs and new technology bring new cultural patterns and western style of life changing traditions and values of isolated regions. Cultural globalization refers to the intensification and expansion of cultural flows across the globe. Obviously, 'culture' is a very broad concept; it is frequently used to describe the whole of human experience. In order to avoid the ensuing problem of overgeneralization, it is important to make analytical distinctions between aspects of