Globalization

Globalization
Definition:

An economic phenomenon A social phenomenon A cultural phenomenon Biological phenomenon Political phenomenon

The movement towards the expansion of economic and social ties between countries through the spread of corporate institutions and the capitalist philosophy that leads to the shrinking of the world in economic terms.

A globalized world
Greater freedom of movement of goods, services, capital, people Global citizens The Information Age has only just begun

Globalization and its challenges

Globalization the removal of barriers to free trade and the closer integration of national economies can be a force for good that has the potential to enrich everyone in the world, particularly the poor, but the way it has been managed (especially the international trade agreements) needs to be rethought. Joseph Stiglitz Globalization has been misgoverned. John K. Galbraith

Economic Globalization
Increasing economic interconnectivity International division of labor Rapidly expanding volume of capital flows Capital remains concentrated among the wealthiest nations Mixed evidence as to the effect of economic globalization Unsure whether it exacerbates or reduces economic inequality Economic interdependence is related to more peaceful relations, but those left behind tend to be resentful

Made possible by: Technology Communication networks Internet access Growth of economic cooperation trading blocs (EU, NAFTA, etc.) Collapse of communism Movement to free trade

Trade has led to massive increases in wealth for many countries

How far does trade help children like these? Lack of opportunities for the poor to be able to have access to markets.

No matter where you go in the world, certain businesses will always have a presence.

Politics and Globalization

Nation states are less able to control social and economic events within their territory Global/regional decision-making bodies (UN, EU, etc.) are rising in importance but They are not yet fully democratic/accountable CNN effect pressures governments to intervene on human rights violations

Cultural Globalization
Increases exposure to foreign ideas and practices, but Cultural exports are disproportionately from western countries, particularly the U.S. In some cases, has resulted in commoditization of cultures. Some ethnic and religious groups feel culturally threatened by globalization Has resulted in a sharp increase in reactionary nationalist and fanatical groups Has killed some cultures.

Corporate Domination
Key Issues: Damage to the environment? Exploitation of labour? Monopoly power Economic degradation Non-renewable resources Damage to cultures

Shell and Nikes activities have come under severe criticism in some quarters.

Technology and Globalization

Increases access to information, but Access is unevenly distributed. Has made it easier to seek out like-minded voices and avoid opposing views. Makes surveillance and certain types of control easier.

Some other Other Issues:

Accountability of Global businesses? Increased gap between rich and poor fuels potential terrorist reaction Ethical responsibility of business? Efforts to remove trade barriers

There are plenty of people who believe that globalisation is a negative development, protests at the G8 summits, pollution, poverty and concern over GM crops are just some of the issues.

Some conclusions Globalization is potentially positive, but needs better management: well-designed rules Important to position e-trade in a broader context of economic development, socioeconomic culture in the country, and engineering growth The immediate international environment also plays a role (in terms of partnerships) consequently, look for the right partnerships from a distance too.

Globalization Is Here to Stay!

Globalization does have problems and negative effects, but it is not going to disappear. So We need to learn how to reap its benefits, and minimize its costs. To do that, we must: Understand its impacts Work to remedy the problems Work to spread the benefits as widely as possible

Thank you !

BY: NIKET KAPADIA