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Economic globalization 3. Globalization as universalization.

Process of spreading
ideas and experiences to people at all corners of the earth
 refers to increasing economic interdependence of so that aspirations and experiences around the world
national economies across the world through a become harmonized.
rapid increase in cross-border movement of 4. Globalization as westernization or modernization. The
social structures of modernity (capitalism, industrialism,
goods, service, technology and capital.
etc.) are spread the world over, destroying cultures and
 It is the process of increasing economic
local self-determination in the process.
integration between countries, leading to the 5. Globalization as deterritorialization. Process of the
emergence of a global marketplace or a single “reconfiguration of geography, so that social space is no
world market. Depending on the paradigm, longer wholly mapped in terms of territorial places,
globalization can be viewed as both a positive territorial distances and territorial borders.”
and a negative phenomenon.

Economic globalization comprise of the


globalization of : Although the debates on the definition and importance
of globalization have been vigorous over time, we believe
 production, that the truly relevant policy questions today are about
 markets, who benefits and who does not; how the benefits and the
costs of these processes can be shared fairly; how the
 competition opportunities can be maximized by all; and how the risks
can be minimized. In addressing these questions, one can
understand globalization to be a complex set of dynamics
 technology
offering many opportunities to better the human
condition, but also involving significant potential threats.
 Corporations and industries. Contemporary globalization manifests itself in various
ways, three of which are of particular relevance to policy-
Whilst economic globalization has been makers.
occurring for the last several thousand years They also comprise signify cant environmental
(since the emergence of trans-national trade), it opportunities and risks.
has begun to occur at an increased rate over the 1. Globalization of the economy. The world economy
last 20-30 years. This recent boom has been globalizes as national economies integrate into the
largely accounted by developed economies international economy through trade; foreign direct
integrating with less developed economies, by investment; short-term capital flows; international
means of foreign direct investment, the movement of workers and people in general; and flows of
reduction of trade barriers, and the technology. This has created new opportunities for many;
but not for all. It has also placed pressures on the global
modernization of these developing cultures.
environment and on natural resources, straining the
capacity of the environment to sustain itself and exposing
human dependence on our environment. A globalized
What is Globalization? economy can also produce globalized externalities and
There are nearly as many definitions of globalization as enhance global inequities. Local environmental and
authors who write on the subject. One review, by Scholte, economic decisions can contribute to global
provides a classification of at least five broad sets of solutions and prosperity, but the environmental costs, as
definitions:4 well as the economic ramifications of our actions, can be
1) Globalization as internationalization. The “global” in externalized to places and people who are so far away as
globalization is viewed “as simply another adjective to to seem invisible.
describe cross-border relations between countries.” It 2. Globalization of knowledge. As economies open up,
describes the growth in international exchange and more people become involved in the processes of
interdependence. knowledge integration and the deepening of non-market
2. Globalization as liberalization. Removing government connections, including flows of information, culture,
imposed restrictions on movements between countries. ideology and technology. New technologies can solve old
problems, but they can also create new ones. We get to know more about the other's cultural
Technologies of environmental care can move across preferences.
boundaries quicker, but so can technologies of  As we feed to each other's financial needs, the
environmental extraction. Information flows can connect ecological imbalance is also meted out.
workers and citizens across boundaries and oceans (e.g., Governments of countries show concern about
the rise of global social movements as well as of each other.
outsourcing), but they can also threaten social and
economic networks at the local level. Environmentalism Cons Of Globalization
as a norm has become truly global, but so has mass
consumerism.  Globalization is causing Europeans to lose their
3. Globalization of governance. Globalization places great jobs as work is being outsourced to the Asian
stress on existing patterns of global governance with the countries. The cost of labor in the Asian countries
shrinking of both time and space; the expanding role of is low as compared to other countries.
non-state actors; and the increasingly complex inter-state  The high rate of profit for the companies, in Asia,
interactions. The global nature of the environment has resulted in a pressure on the employed
demands global environmental governance, and indeed a Europeans, who are always under the threat of
worldwide infrastructure of international the business being outsourced.
agreements and institutions has emerged and continues  Companies are as opening their counterparts in
to grow. But many of today’s global environmental other countries. This results in transferring the
problems have outgrown the governance systems quality of their product to other countries,
designed to solve them. Many of these institutions, thereby increasing the chances of depreciation in
however, struggle as they have to respond to an ever- terms of quality.
increasing set of global challenges while remaining  There are experts who believe that globalization
constrained by institutional design principles inherited is the cause for the invasion of communicable
from an earlier, more state-centric world. The relationship diseases and social degeneration in countries.
between the environment and globalization— although  The threat that the corporate would rule the
often overlooked—is critical to both domains. world is on high, as there is a lot of money
invested by them.
Pros of Globalization  It is often argued that poor countries are
exploited by the richer countries where the work
 With globalization, there is a global market for force is taken advantage of and low wages are
companies to trade their products and a wider implemented.
range of options for people, to choose from
among the products of different nations.
Globalization means increasing the interdependence,
 Developing countries benefit a lot from
connectivity and integration on a global level with respect
globalization, as there is a sound flow of money
to the social, cultural, political, technological, economic
and thus, a decrease in the currency difference.
and ecological levels.
 To meet the increasing demands that follow
globalization, there is an increase in the
Advantages of Globalization
production sector. This gives loads of options to
the manufacturers as well.
- Goods and people are transported with more easiness
 Competition keeps prices relatively low, and as a
and speed
result, inflation is less likely to occur.
 The focus is diverted and segregated among all
- The possibility of war between the developed countries
the nations. No country remains the single power
decreases
head; instead there are compartmentalized
power sectors. The decisions at higher levels are
meant for the people at large. - Free trade between countries increases
 Communication among the countries is on the
rise, which allows for better understanding and - Global mass media connects all the people in the world
broader vision.
 As communication increases amongst two - As the cultural barriers reduce, the global village dream
countries, there is interchange of cultures as well. becomes more realistic
o there is a o the standards applied globally like patents,
propagation of copyright laws and world trade agreements
democratic ideals increase
o the
interdependence o corporate, national and subnational borrowers
of the nation-states have a better access to external finance
increases
o worldwide financial markets emerge
o as the liquidity of
o multiculturalism spreads as there is individual
capital increases,
access to cultural diversity. This diversity
developed
decreases due to hybridization or assimilation
countries can
invest in o international travel and tourism increases
developing ones
o worldwide sporting events like the Olympic
o the flexibility of Games and the FIFA World Cup are held
corporations to
operate across o enhancement in worldwide fads and pop
borders increases culture

o the communication o local consumer products are exported to other


between the countries
individuals and
corporations in the o immigration between countries increases
world increases
o cross-cultural contacts grow and cultural
o environmental diffusion takes place
protection in
o there is an increase in the desire to use foreign
developed
ideas and products, adopt new practices and
countries increases
technologies and be a part of world culture
Effects of globalization o free trade zones are formed having less or no
o enhancement in the information flow between tariffs
geographically remote locations
o the global common market has a freedom of o due to development of containerization for
exchange of goods and capital ocean shipping, the transportation costs are
reduced
o there is a broad access to a range of goods for
consumers and companies o subsidies for local businesses decrease

o worldwide production markets emerge o capital controls reduce or vanquish

o free circulation of people of different nations o there is supranational recognition of intellectual


leads to social benefits property restrictions i.e. patents authorized by
one country are recognized in another
o global environmental problems like cross-
boundary pollution, over fishing on oceans, Advantages of globalization in the developing world
climate changes are solved by discussions It is claimed that globalization increases the economic
prosperity and opportunity in the developing world.
o more trans-border data flow using
The civil liberties are enhanced and there is a more
communication satellites, the Internet, wireless
efficient use of resources. All the countries involved in
telephones etc.
the free trade are at a profit. As a result, there are
o international criminal courts and international lower prices, more employment and a better standard
justice movements are launched of life in these developing nations. It is feared that
some developing regions progress at the expense of
other developed regions. However, such doubts are
futile as globalization is a positive-sum chance in
which the skills and technologies enable to increase
the living standards throughout the world. Liberals
look at globalization as an efficient tool to eliminate
penury and allow the poor people a firm foothold in
the global economy. In two decades from 1981 to
2001, the number of people surviving on $1 or less
per day decreased from 1.5 billion to 1.1 billion.
Simultaneously, the world population also increased.
Thus, the percentage of such people decreased from
40% to 20% in such developing countries