INTRODUCTION TO

GLOBALIZATION
 LEARNING OBJECTIVES
• At the end of the lesson,
learners are expected to:
 Differentiate the competing conceptions of
globalization;
 Identify the underlying philosophies of the
varying definitions of globalization;
• Agree on a working definition of
globalization for the course.
Let’s begin……….. Does the
picture speak of
realities in the
Philippines and
the world? Why
or why not? If
these pictures
will form a
collage, what
will be its
primary
message?
GLOBALIZATION
 Continue………..

There was a time were most regions were

economically self-sufficient. Locally
produced foods, fuels and raw materials
were generally processed for local
consumption. Trade between different
regions were quite limited.
 Continue………..

• Today, the economies of most countries

are so interconnected that they form
part of a single, interdependent global
economy.
 Continue………..
Globalization is arguably the most
important factor currently shaping the
world economy. Although it is not a new
phenomenon (waves of globalization can
be traced back to the 1800s) the changes
it is bringing about now occur far more
rapidly, spread more widely and have a
much greater business, economic and
social impact than ever before.
 What is globalization?
oIs it the integration of economic, political, and cultural
systems across the globe?
oIs globalization a force for economic growth,
prosperity, and democratic freedom?
oIs it the dominance of developed countries in decision-
making, at the expense of poorer, less powerful
nations?
oDoes globalization only benefit the rich or can the
poor take advantage of it to improve their well-being?
 Defining Globalization

Globalization refers to the increasingly

global relationships of culture, people and
economic activity.
Most often, it refers to economics: the
global distribution of the production of
goods and services, through reduction of
barriers to international trade such as
tariffs, export fees, and import quotas.
 Defining Globalization

Globalization is the homogenization of

people’s tastes and demand patterns
around the world, due to increased access
to international communication of
information about products and services as
well as increased access to transportation
of products and people across borders.
 Defining Globalization

“Processes by which goods, services,

capital, people, information, and ideas flow
across national borders.” (Grewal/Levy)
- “Trend toward greater economic,
cultural, political, and technological
interdependence among national
institutions and economies.”
(Wild/Wild/Han)
 Defining Globalization

“Globalization is both an active process of

corporate expansion across borders and a
structure of cross border facilities and
economic linkages that has been steadily
growing and changing.” —Edward S.Herman
 What do the definitions indicate?

Grewal, D., & Levy, M. (2009). Marketing. New York: McGraw-HillCompanies, Inc.
Wild, J., Wild, K., & Han, J. (2008). International Business: The Challenges of Globalization. Upper Saddle River, NJ: Pearson Prentice Hall.
Globalization Involving Us All

• Nearly 23 trillion dollars • Your Everyday Life:

accounts for the total value – Wake up to a GE alarm clock
of imports/exports that cross made in China
national borders each year. – Slip on Adidas sandals made in
Indonesia
– Put your American Eagle clothes
on from Mexico
– Unplug your Nokia phone made in
the U.S. and Taiwan
– Hop into your Toyota made in
Kentucky
– Listen to Coldplay from England
– Grap a Starbuck’s coffee with
beans harvested in Columbia

Wild, J., Wild, K., & Han, J. (2008). International Business: The Challenges of Globalization. Upper Saddle River, NJ: Pearson Prentice Hall.
Global income is more than $31
trillion a year, but 1.2 billion
people of the world's population
earn less than
$1 a day.
80% of the global population earns
only 20% of global income, and
within many countries there is a
large gap between rich and poor.
 The 3 billion people living in the 24
developing countries that increased
their integration into the world
economy enjoyed an average 5%
growth rate in income per capita, longer
life expectancy and better schooling.
 The digital and information
revolution has changed the way
the world learns, communicates,
does business and treats
illnesses. In 2002, there were 364
people per 1000 using the
internet in high income countries,
while there were only 10 per 1000
in low income countries.
Two billion people, living in countries in
sub-Saharan Africa, the Middle East,
and the former Soviet Union, have been
unable to increase their integration into
the world economy, and their
economies have contracted, poverty
has risen, and education levels have
risen less rapidly than in the more
globalised countries.
What are the characteristics of globalization?

• Connectivity
• Borderless Globe
• Free trade

• Cultural diversity

• Mobility

• Information technology changes

Grewal, D., & Levy, M. (2009). Marketing. New York: McGraw-HillCompanies, Inc.
Wild, J., Wild, K., & Han, J. (2008). International Business: The Challenges of Globalization. Upper Saddle River, NJ: Pearson Prentice Hall.
If there is such thing as globalization,
when did it begin?
Five different ways of thinking about what
turns out to be a very complex issue – the
origin of globalization.
1.HARDWIRED
2.CYCLES
3.PHASES
4.EVENTS
5.BROADER
 HARDWIRED

It argues that globalization stems, among

other things, from basic human urge to seek
better and more fulfilling life. This leads him
to trace the initial globalization of the
human species.
 CYCLES

It argues that it is difficult to find a single

point of origin, but the effort is largely
irrelevant since there long have been cycles
of globalization and it is those that are
utmost importance, not particular phase or
point of origin.
 PHASES
Globalization occurred sequentially each
with its own point of origin:
1. Eurasian Phase
2. Afro-Eurasian Phase
3. Oriental Phase I
4. Oriental Phase II
5. Multicentric Phase
6. Euro-Atlantic Phase
7. 20C Phase
8. 21C Phase
 Eurasian Phase
3000BCE

Agricultural and urban revolutions,

migrations, increased trade, and ancient
empires grew out of Eurasia.
 Afro-Eurasian Phase
1000 BCE
Commercial revolutions commenced in the
Greco-Roman world, West Asia and East
Africa
 Oriental Phase I
500 BCE
The world economy emerged alongside the
caravan trade in the Middle East.
 Oriental Phase II
1100
The improvements in productivity and
technology emerged throughout East and
South Asia, with increased urbanization and
development of the silk routes.
 Multicentric Phase
1500
Trade expanded across the Atlantic Ocean
and into the Americas.
 Euro-Atlantic Phase
1800
The Euro-Atlantic economy developed
through industrialization and the colonial
division of labor.
 20C Phase
1950
MNC’s and global value chains emerged
throughout the US, Europe, and Japan and
the Cold War Ended.
 21C Phase
2000
A new geography of trade encompasses
East Asia and the emerging economies, with
a global rebalancing of power and economic
flows.
Other Perspectives
 1. Germinal Phase

In Europe (early fifteenth century to mid-

eighteenth century). Important
developments during this period were the
sun-centered view of the universe, the
beginnings of modern geography, and the
spread of the Gregorian calendar.
 2. Incipient Phase
(mid-1700s to the 1870s).

Among the key developments in this period

were the “crystallization of conceptions of
formalized international relations,” a “more
concrete conception of humankind,” and
“[s]harp increases in conventions and
agencies concerned with international and
transnational regulation and
communication” (1990: 26).
3. Take-Off Phase (1870s to the mid-1920s

Among the key developments in this period

were the “[v]ery sharp increase in number
and speed of global forms of communica-
tion. Rise of ecumenical movement.
Development of global competitions – e.g.
Olympics, Nobel Prizes. Implementation of
World Time and near-global adoption of
Gregorian calendar. First World war. League
of Nations” (1990: 27).
 Struggle-for-hegemony phase
(1920s to the mid-1960s).

This period was characterized by war (WW

II) and disputes (Cold War) over the still
fragile globalization process. The UN was
formed during this period.
 Uncertainty Phase
(1960s to the early 1990s6).

Many global developments occurred during this

period including inclusion of the Third World in the
global system, end of the Cold War (and bipolarity),
spread of nuclear weapons, world civil society,
world citizenship, and global media system
consolidation.
 4. EVENTS

A fourth view is that instead of cycles or great

epochs, one can point to much more specific
events that can be seen as the origin of
globalization. In fact, there are many such
possible points of origin of globalization,
some of which are:
 4. EVENTS

1. The Romans and their far-ranging

conquests in the centuries before Christ
(Gibbon 1998);
2. The rise and spread of Christianity in the
centuries after the fall of the Roman Empire;
3. The spread of Islam in the seventh century
and beyond;
 4. EVENTS

4. The travels of the Vikings from Europe to

Iceland, Greenland, and briefly to North
America in the ninth through the eleventh
centuries as examples of, and landmarks, in
globalization;
5. Trade in the Middle Ages throughout the
Mediterranean;
 4. EVENTS

6. The activities of the banks of the twelfth-

century Italian city-states;

7. The rampage of the armies of Ghengis

Khan into Eastern Europe in the thirteenth
century (Economist 2006: January 12);
 4. EVENTS

8. European traders like Marco Polo and his

travels later in the thirteenth century along
the Silk Road to China. (Interestingly, there is
now discussion of the development of an
“iron silk road” involving a linked railroad
network through a variety of Asian countries
that at least evokes the image of the lure of
Marco Polo’s Silk Road.8);
 4. EVENTS

9. The “discovery of America” by Christopher

Columbus in 1492. Other important voyages
of discovery during this time involved Vasco
Da Gama rounding the Cape of Good Hope in
1498 and the circumnavigation of the globe
completed in 1522 by one of Ferdinand
Magellan’s ships (Joel Rosenthal 2007);
 4. EVENTS

10. European colonialism, especially in the

nineteenth century;
11. the early twentieth-century global
Spanish flu pandemic;
12. the two world wars in the first half of
the twentieth century.
 4. EVENTS

It is also possible to get even more specific

about the origin of globalization, especially
in recent years. A few rather eclectic recent
examples include:
 4. EVENTS
1. 1956 – the first transatlantic telephone cable;
2. 1958 – while it was possible to fly across the
Atlantic in the 1930s on seaplanes that made
several stops along the way, the big revolution in
this area was the arrival of transatlantic passenger
jet travel with the first being Pan Am’s flight from
New York to London (with a stopover for refueling
required in Newfoundland);
3. 1962 – the launch of the satellite Telstar and
soon thereafter the first transatlantic television
broadcasts;
 4. EVENTS
4. 1970 – the creation of Clearing House Interbank
Payment System (CHIPS) making possible global
electronic (wire) transfers of funds (now $1.5 trillion a
day in 2012) among financial institutions;
5. 1977 – the Society for Worldwide Interbank Financial
Telecommunications (SWIFT) came into being making
possible more global transfers of funds by individuals;
6. 1988 – the founding of the modern Internet based on
Arpanet (which was created in 1969). While it took the
Internet several years to take off, this was a turning
point in global interconnection for billions of people;
 4. EVENTS

7. 2001 – the terrorist attacks on the Twin

Towers in New York and on the Pentagon in
Washington, as well as later terrorist
attacks on trains in Madrid (March 11,
2004) and London (July 7, 2005), among
others.
 4. EVENTS

8. 2009 – due to the highly interconnected

global economy, the Great Recession sent
shockwaves throughout the world.
 4. EVENTS

9. 2014 – mobile-cellular phone subscriptions

reach approximately 7 billion, which is almost
the human population on Earth (International
Telecommunication Union 2014).
 5. Broader, More Recent Changes

The fifth view focuses on broader, but still

recent, changes. There is a sense in this
view that a sea change occurred in the last
half of the twentieth century. Three of
these momentous changes have been
identified by scholars as the point of origin
of globalization as it exists today:
 5. BrOaDer, MOre reCeNt ChaNGeS

1. The emergence of the United States as the

global power in the years following WW II. The US
not only projected its military power throughout
the world (Korea in the early 1950s; disastrously in
Vietnam in the 1960s and early 1970s), it
extended its reach in the economic realm as it
became the dominant industrial power when the
war decimated most of its competitors militarily
(Germany, Japan) and/or economically (the Axis
powers as well as Allies such as France and Great
Britain).
 5. BrOaDer, MOre reCeNt ChaNGeS

2. The emergence of multinational

corporations (MNCs). While the world’s
great corporations can be traced back to the
eighteenth and early nineteenth centuries
in, for example, Germany, Great Britain, and
the United States, they were initially largely
associated with their nations of origin and
did the vast majority of their business within
those countries (Bonanno and Antonio 2012).
Different Views on Globalization
 Globaphilia
(Optimists’ view)

Emphasis on the positive

aspects of globalization,
especially greater economic
success and the spread of
democracy.
 Globaphilia
(Optimists’ view)
The Internet is spearheading a global
communications revolution. It liberates
people from time and space constraints, creating
communities of interest.
 Growth in International travel has widened
experiences and understanding, this is
culturally enriching.
 Can empower local communities to produce
own media products and have the potential to
make possible greater autonomy for different
life worlds. eg multilingual TV. (Cope and Kalantis, 2000)
 Globaphobia
(Pessimists’ View )

Emphasis on the
negative aspects of
globalization, especially
for the less
well-off parts of the globe.
 Globaphobia
(Pessimist’s view)
Rich got richer, poor got poorer. Information
imbalance.
 Manual workers in the west, under threat.
 National culture and identities under threat.
 Less regulated multichannel media systems
undermine the concept of collective audience
or common culture
 Corporate power is restricting individual
freedoms. Increasing invasion of private spaces
by mass media culture, global commodity culture
and communications and information technology
 Academics’ view

Globalization lacks precise definition.

A ‘global shift’ is a better description.

 Types of Globalisation

1. Economic
Countries that trade with many others and have few
trade barriers are economically globalised.
2. Social
A measure of how easily information and ideas pass
between people in their own country and between
different countries (includes access to internet and
social media networks).
3.Political
The amount of political co-operation there is between
countries.
 Causes of Globalisation:
1. Improved Communications
• The development of communication
technologies such as internet, email and mobile
phones have been vital to the growth of
globalisation because they help MNCs to
operate throughout the world.
• The development of satellite TV channels such
as Sky and CNN have also provided worldwide
marketing avenues for the concept and
products of globalisation.
 Causes of Globalisation

2. Improved Transport
• The development of refrigerated and
container transport, bulk shipping and
improved air transport has allowed the easy
mass movement of goods throughout the
world. This assists globalisation.
 Causes of Globalisation:
3. Free Trade Agreements
• MNCs and rich capitalist countries have always
promoted global free trade as a way of
increasing their own wealth and influence.
• International organisations such as the World
Trade Organisation and the IMF also promote
free trade.
 Causes of Globalisation:
4. Global Banking
• Modern communication technologies allow vast
amounts of capital to flow freely and instantly
throughout the world.
• The equivalent of up to $US1.3 trillion is traded each
day through international stock exchanges in cities
such as New York, London and Tokyo.
 Causes of Globalisation:
5. The Growth of MNCs
• The rapid growth of big MNCs such as Microsoft, McDonalds
and Nike is a cause as well as a consequence of globalisation.
• The investment of MNCs in farms, mines and factories across
the world is a major part of globalisation.
• Globalisation allows MNCs to produce goods and services and
to sell products on a massive scale throughout the world.
 The Effects of Globalisation:
1. Changed Food Supply
• Food supply is no longer tied to the seasons.
We can buy food anywhere in the world at any
time of the year.
 The Effects of Globalisation:
2. Division of Labour
• Because MNCs search for the cheapest
locations to manufacture and assemble
components, production processes may be
moved from developed to developing
countries where costs are lower.
 The Effects of Globalisation:
3. Less Job Security
• In the global economy jobs are becoming more
temporary and insecure.
• A survey of American workers showed that people
now hold 7 to 10 jobs over their working life.
 The Effects of Globalisation:
4. Damage to the Environment
• More trade means more
transport which uses more fossil
fuels and causes pollution.
• Climate change is a serious
threat to our future.
 The Effects of Globalisation:
5. Cultural Impact
• Websites such as YouTube connect people
across the planet. As the world becomes more
unified, diverse cultures are being ignored.
MNCs can create a monoculture as they
remove local competition and thereby force
local firms to close.

Replacing
 The Effects of Globalisation
6. Increase in anti-Globalisation Protests
• There is a growing awareness of the negative
impacts of globalisation. People have begun to
realise that globalisation can be challenged by
communities supporting each other in
business and society and through public
protest and political lobbying.
 Impact on the Government
 Positive effects
 Increased economic
development
 Expanded infrastructure
 Transfer of modern
management techniques
 Greater
interdependence among
business partners
o Negative effects
 MNC power increased
 MNCs externalize cost to
countries
 Competition results in too
many concessions
 MNCs influence local policies
 Companies incorporate in low
tax countries
 Pressure to reduce social
benefits
• Positive effects  Negative effects
• Increased job  Job displacement
opportunities  Loss of industries or
• Upgraded economic groups
education system  Lowered labor standards
• Increased training  Downward wage pressure
 Decreased union power
 Diminished social
contract
 The Globalization Debate

Three Positions:

1. The Hyperglobalist Thesis

2. The Skeptics Thesis

3. The Transformationalist Thesis

 The Hyperglobalists' Camp
What’s new?
Dominant features
Power of national governments
Driving forces of globalization
Pattern of stratification
Dominant motif
Conceptualization of
globalization
Historical trajectory
Summary argument
A global age
Global capitalism, global governance,
global civil society
Declining or eroding
Capitalism and technology
Erosion of old hierarchies
McDonalds, Madonna, etc.
As a reordering of the framework of
human action
Global civilization
The end of the nation-state
 The Skeptics' Camp
What’s new?
Dominant features
Power of national governments
Driving forces of globalization
Pattern of stratification
Dominant motif
Conceptualization of
globalization
Historical trajectory
Summary argument
Trading blocs, weaker geogovernance
than in earlier periods
World less interdependent than in
1880s
Reinforced or enhanced
States and markets
Increased marginalization of South
National interest
As internationalization
Regional blocs/clash of civilizations
Internationalization depends on state
acquiescence and support
 The Transformationalists' Camp
What’s new?
Dominant features
Power of national governments
Driving forces of globalization
Pattern of stratification
Dominant motif
Conceptualization of
globalization
Historical trajectory
Summary argument
Historically unprecedented levels of
global interconnectedness
‘Thick’ (intensive and extensive)
Reconstituted, restructured
Combined forces of modernity
New architecture of world order
Transformation of political community
As the reordering of interregional
relations and action at a distance
Indeterminate: global integration and
fragmentation
Globalization transforming state power
and world politics
 On Post-Cold War Order

1. Is there an order that has developed since

the end of the Cold War?
2. What are the elements of the contemporary
order?
3. How does globalization affect this order?
 Typology of World Order
Order Units Characteristics
Globalized Global End of national polities,
system societies and economies
International States Concern with agenda of
sovereignty and stability

World Humanity Concern with agenda of

rights, needs, and justice
Globalized Globalized Agenda of managing
International states relations between states
penetrated by global
system
 Elements of Contemporary Order

Structural Elements Purposive Elements

Polarity Social state

Multilateralism Identity

Regionalism Economic order

Global divide Liberal rights

 Sources:
•
Introduce textbook: Manfred Steger, Paul Battersby,
and Joseph M. Siracusa, eds. 2014.
The SAGE Handbook of Globalization. Two vols.
Thousand Oaks: SAGE.
Steger, M. (2015). Approaches to the Study of
Globalization. United Kingdom: Blackwell Publishing.
Steger, M. (2005). “Ideologies of Globalization
Journal of Political Ideologies 10(1): 11-30. United
Kingdom: Blackwell Publishing.

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