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globalization

globalization

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Published by: Amna on Apr 29, 2008
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Globalization:
Introduction:
Globalization is a process of interaction and integration among the people, companies,and governments of different nations, a process driven by international trade andinvestment and aided by information technology. This process has effects on theenvironment, on culture, on political systems, on economic development and prosperity,and on human physical well-being in societies around the worldThe term first appeared in the late 1980s in articles by Japanese economists in theHarvard Business Review. According to the sociologist Roland Robertson, who iscredited with popularizing the term, glocalization describes the tempering effects of localconditions on global pressures. At a 1997 conference on "Globalization and IndigenousCulture," Robertson said that glocalization "means the simultaneity --- the co-presence ---of both universalizing and particularizing tendencies.
Definition:
“Globalization is a term that was invented in order to emphasize that the globalizationof a product is more likely to succeed when the product or service is adapted  specifically to each locality or culture it is marketed in. The term combines the word  globalization with localization. (An earlier term for globalization in terms of product  preparedness for international marketing … is internationalization.)
Jan Aart Scholte has argued that at least five broad definitions of 'globalization' can befound in the literature.
Globalization as internationalization
.Here globalization is viewed 'as simply another adjective to describe cross-border relations between countries'. It describes the growth in international exchange and interdependence. Withgrowing flows of trade and capital investment there is the possibility of moving beyond an inter-national economy, to a 'stronger' version - the globalize economy in which, 'distinct nationaleconomies are subsumed and rearticulated into the system by international processes andtransactions'.
Globalization as liberalization
.In this broad set of definitions, 'globalization' refers to 'a process of removing government-imposed restrictions on movements between countries in order to create an "open", "borderless"
 
world economy’. Those who have argued with some success for the abolition of regulatory trade barriers and capital controls have sometimes clothed this in the mantle of 'globalization'.
Globalization as universalization
.In this use, 'global' is used in the sense of being 'worldwide' and 'globalization' is 'the process of spreading various objects and experiences to people at all corners of the earth'. A classic exampleof this would be the spread of computing, television etc.
Globalization as westernization or modernization
Here 'globalization' is understood as a dynamic, 'whereby the social structures of modernity(capitalism, rationalism, industrialism, bureaucratism, etc.) are spread the world over, normallydestroying pre-existent cultures and local self-determination in the process.
Globalization as deterritorialization
Here 'globalization' entails a 'reconfiguration of geography, so that social space is no longer wholly mapped in terms of territorial places, territorial distances and territorial borders. AnthonyGiddens' has thus defined globalization as ' the intensification of worldwide social relationswhich link distant localities in such a way that local happenings are shaped by events occurringmany miles away and vice versa. . David Held
et al 
define globalization as a ' process whichembodies a transformation in the spatial organization of social relations and transactions -assessed in terms of their extensity, intensity, velocity and impact - generating transcontinental or inter-regional flows and networks of activity'.
History:
The word "globalization" can be traced back to 1944. The term has been used byeconomists since 1981; however, its concepts did not permeate popular consciousnessuntil the later half of the 1990s. The earliest concepts and predictions of globalizationwere penned by an American entrepreneur-turned-minister Charles Taze Russell who firstcoined the term 'corporate giants' in 1897. Various social scientists have tried todemonstrate continuity between contemporary trends of globalization and earlier periods.The first era of globalization during the 19th century was the rapid growth of international trade between the European imperial powers, the European colonies, and theUnited States. After World War II, globalization was restarted and was driven by major advances in technology, which led to lower trading costs.Globalization is viewed as a century’s long process, tracking the expansion of human population and the growth of civilization that has accelerated dramatically in the past 50years. Early forms of globalization existed during the Roman Empire, the Parthianempire, and the Han Dynasty, when the Silk Road started in China, reached the boundaries of the Parthian empire, and continued onwards towards Rome. The IslamicGolden Age is also an example, when Muslim traders and explorers established an earlyglobal economy across the Old World resulting in a globalization of crops, trade,knowledge and technology; and later during the Mongol Empire, when there was greater integration along the Silk Road. Global integration continued through the expansion of 
 
European trade, as in the 16th and 17th centuries, when the Portuguese and SpanishEmpires reached to all corners of the world after expanding to the Americas.Globalization became a business phenomenon in the 17th century when the Dutch EastIndia Company, which is often described as the first multinational corporation, wasestablished. Because of the high risks involved with international trade, the Dutch EastIndia Company became the first company in the world to share risk and enable jointownership through the issuing of shares: an important driver for globalization.Liberalization in the 19th century is sometimes called "The First Era of Globalization", a period characterized by rapid growth in international trade and investment, between theEuropean imperial powers, their colonies, and, later, the United States. It was in this period that areas of sub-Saharan Africa and the Island Pacific were incorporated into theworld system. The "First Era of Globalization" began to break down at the beginningwith the First World War, and later collapsed during the gold standard crisis in the late1920s and early 1930s.
Case Study:American marketers invade France through globalization
To many European consumers, “German made” is a sign of quality engineering, “made inItaly” signals style, and French products are synonymous with chic. If you asked asample of European consumers what “made in U.S.A”. Conveys, you may not get afavorable answer. In fact, many U.S. companies doing business in Europe were carefulnot to flaunt their American roots.One European country in particular where American products have not been prevalent, or even welcome, is France. United States and Franc have been at odds over a number of issues, including trade disputes on products ranging from Hollywood movies to importedFrench foods.A number of American companies are finding ways to narrow the cultural gap withFrench consumers and are making inroads into France like never before. In 1995 theFrench subsidiary of new balance, the Boston-based company that makes high-techrunning shoes targeted a serious runners, had sales of only about $3 million, less than 2 percent market share, and very little brand recognition. However, in 1997, new balancestruck gold. Almost overnight, the 576, a model designed for marathon runners, becamede rigueur……not among marathoners and triathletes but among the Persian fashion elite.Sales for the subsidiary more than doubled in 1998 to $7 million, and the few fashion boutiques that carried the shoe ran out within months as designers, fashionists, film stars,and models rushed to buy the latest color. One French fashion writer stated in trendy Bibamagazine: “this success should have an explanation, but it doesn’t.” However, there is anexplanation according to Martin Tourneau, the director of New Balances subsidiary inFrance.
Resource: extracted from book “
 Advertising and Promotion” 
by George E. Belch &Michael A. Belch

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