Joseph Paul Verdan - 11671262

Topic: Globalization

Thesis Statement: Globalization refers to a process of intensifying trans-border linkages in all

spheres of economy, politics and culture.

Introduction

Globalization is one of the most overused and misunderstood words in the world today. The term

is quite broad and lack well defined boundaries. As Globalization encompasses a multitude of

disciplines ranging from sociology, economics, international relations, political theories, art and

linguistics (Mooney and Evans 2007). Globalization is often confused with Globalism or

universalism.

Globalization refers to a process of intensifying trans-border linkages in all spheres of economy,

politics and culture (Perlas, 2000, Goldin and Reinert, 2006 and ).

History of Globalization

There is no consensus as to the era that pinpoints the onset of Globalization. It can be best

explained by time frames in which economists suggests shorter time lines whereas historians are

likely to prefer a longer and detailed process. There are five key periods of Globalization

according to MacGillivray (2006), namely these are Iberian Carve up, Britannic meridian,

Sputnik world, Global supply chain and Thermo-Globalization. Iberian Carve up (1490 -1500) is

the period wherein the colonial rivalry of Spain and Portugal started the long-distance trade.

Britannic meridian (1880-1890) portrays the British Empire as the leading imperial power that

sets the tone for world shipping. Next is Sputnik World (1955-1965) that was a period of rapid

economic growth as well as when decolonization took place that started the competition between

for USA and Soviet Union for influence in the world. Global Supply Chain (1995-2005) was the

golden era of globalization as the entire world becomes interconnected by supply chain and the

global free market grew rapidly. Lastly, Thermo-Globalization (2005-till date) covers the current

status that communication and commerce are booming while the global market becomes

competitive. This also involves climate change that can present huge economic, social, cultural

and environmental challenges in the future. On the other hand, Goldin and Reinert (2006)

focuses on the three stages of modern era of globalization. The period of birth of the modern
world economy began from 1870 to 1914, brought about by advancements in transportation (rail

and ship) and communication (telegraph). Like the Britannic Meridian from MacGillivray

(2006), the focus of this era is in European colonial systems. The second modern stage started at

the end of World War II (late 1940s) with the establishment of International Monetary Fund

(IMF), presently called World Bank as well as General Agreement on Tariffs and Trade (GATT).

This enabled increase in capital flows from the United States with the reduction of the trade

barriers under GATT. This period was followed by the third modern stage of globalization in the

late 1970s with the advancement in more flexible exchange rates and the emergence of

industrialized countries in East Asia. This is also a period with rapid technological advancement

in terms of transportation, information, and communication that dramatically lowers the cost of

moving goods, capital, people, and ideas across the globe. The end of Cold War as well as

China’s entry in the world economy marked the third stage of globalization in the late 1980s. In

the 1990s, a new set of developing economies emerged that accelerated the global integration in

this phase. The financial dimensions of Globalization may have been slowed as exhibited by the

“Great Recession” of 2007-2009 but globalization has not certainly ended. With the continuous

acceleration of technological tools, the world became tightly interconnected as demonstrated by

this financial-economic crisis. This highlighted the new dangers associated with globalization in

terms of complexity and systemic risk that should be managed to ensure that globalization works

for development.

Globalization in Economic Perspective

Among non-academics, recent research indicates that the consensus as to the meaning of

globalization is focused on economic issues such as capitalism, money, big business, and the

expansion of large corporations (Mooney and Evans 2007). Capitalism at a global level is a

largely positive, and irreversible, evolution of open societies. The focus is on finance,

production, technology, regulation processes across the globe.

According to Goldin and Reinert (2006), there are five economic dimensions of Globalization

namely: Trade, Finance, Aid, Migration, and Policy Trade is defined as the exchange of goods

and services among nations. Increased trade internationally is beneficial in job creation,
increased competition, improvements in education and in health, and technological learning.

Finance involves the exchange of capital or money through assets or financial instruments

among countries. Capital flows can help to mobilize and deploy savings, develop the financial

sector, and transfer technology. Aid involves the transfer of loans, grants as well as providing

assistance among countries. This is vital especially for developing countries and will help

alleviate global poverty. Migration takes place when persons move between countries, either

temporarily or permanently, to seek education and employment or to escape adverse natural or

political environments. Ideas involve transmission of intellectual constructs. Ideas are the most

powerful influence on development as it provides impact in any field such as production,

organization, management, governance and technological advances. However, this can breed

conflicts in ideologies as each country has their own approach in terms of capitalism, democracy

or communism.

Globalization in Political Perspective

Political Globalization is aimed at globalizing national political and legal processes. An example

of which is the United Nation (UN) as it brings together nation-states as well as World Trade

Organization as it regulates international trades. The presence of NGOs around the world is a

result of globalization where organizations actively participate in developmental efforts and

humanitarian aid among others. Globalization is also very essential in safeguarding developing

countries that are vulnerable to attacks or exploit from the developed nations.

Issues that are of particular global importance such environmental concerns and anti-

globalization are examples of Political Globalization (Mooney and Evans 2006).

Singh (2006) claimed that globalization processes are creating a global economy wherein it is

dominated by transnational corporations and financial markets in which political boundaries are

no longer relevant. However, this is not the case as the world economy is still governed by

nation-states, along with liberation of trade, foreign investment and industrial policies. State

policies are vital for the advancement and sustenance of transnational corporations in a global

scale. It would be impossible to conceive globalization without laws that are binded in the

nation-states. In the end, globalization is fundamentally a democratic process, driven by

individual choices and what most people want are senses of culture, place and nationality

(Micklethwait and Wooldridge 2000).

Globalization in Cultural Perspective

From the perspective of globalization, culture should be seen as the process of cultivation as well

as exchange of a nation’s knowledge, beliefs, traditional values, lifestyle, language, and moral

globally. This is facilitated by the movement of people, objects, signs and symbols through travel

and literature. According to Perlas (2000), this subsystem of society is concerned with the

development of full human capacities with identity and meaning. Identity and meaning affects

human behavior in terms of their cognitive, affective and ethical orientation.

Two common terms in this perspective is Cultural Autonomy and Cultural Imperialism. Cultural

autonomy is then defined as upholding their culture in the face of colonization whereas Cultural

Imperialism is exerting power over others such that practices of more powerful nations and

cultures are forcefully exported to new areas (Mooney and Evans 2006).

Identity Crisis hampers civil society as

The negative effects of globalization in culture is exhibited by consumerism as well as universal

culture. Consumerism as brought about by Cultural imperialism is defined as being interlinked

with products and services that we use. This is due to the global spread of consumerism through

mass media and advertising as well the exponential rise of global brands. Universal culture is

rooted from the idea of homogenization wherein things becoming the same that ranges from

cultural practices, language, consumer products, media and entertainment (Mooney and Evans

2006).

Conclusion

The three approaches have been revolutionary in determining the definition as well as the effect

of Globalization. In summation, there were three alternatives that recognize the interplay among

economics, politics, and culture. While there is variation within each approach with notable areas
of intersection, the central focus of Globalization is consistent. Business cannot truly represent

the idea of culture and politics.

The fate of the world is determined by the three spheres of globalization namely economic,

political and cultural.

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