Globalization

and Its Impact

WEEK 11
Table of Contents

1 2
What is
Causes;
Globalization;

3 4

Types; and, Effects

 1
What is Globalization?
• An economic phenomenon?
• A social phenomenon?
• A cultural phenomenon?
 Globalization

• Globalization is the process by which the world, previously

isolated through physical and technological distance,
becomes increasingly interconnected.

• It is manifested by the increase in the interaction between

people around the world that involves the sharing of ideas,
cultures, goods, services, economic, political, cultural,
ideological, investment environment and processes aided by
information technology.
 It can also be defined as:
• The process of rapid economic, cultural, and institutional
integration among countries.

• This unification is driven by the liberalization of trade, investment

and capital flow, technological advances, and pressures for
assimilation towards international standards.

• Trend toward countries joining together economically, through

education, society and politics, and viewing themselves not only
through their national identity but also as part of the world as a
whole
• According to WHO, globalization can be defined as ” the
increased interconnectedness and interdependence of peoples
and countries. It is generally understood to include two inter-
related elements: the opening of international borders to
increasingly fast flows of goods, services, finance, people and
ideas; and the changes in institutions and policies at national
and international levels that facilitate or promote such flows.”
 Globalization could
involve all these things!
 2

Types of Globaization
Types of Globalization

Economic
globalization
Social/Cultral
globalization
Political
globalization
I. Economic globalization

Countries that trade with many others

and have few trade barriers are
economically globalized.

It refers to the widespread international

movement of goods, capital, services
technology and information.
Economic globalization primarily comprises the
globalization of:

1. Production 6. Regimes
2. Finance 7. Institutional
3. Markets 8. Corporations
4. Technology 9. labor
5. Organizational
• The economic globalization is one most often
mentioned in the media.

• It is associated with massive amounts of financial

traded daily on the different stock markets around the
label “New Economy”.
In order to monitor the economy, 3 economic institutions
were created:

1. The International Monetary Fund (IMF) – would oversee

the international monetary system;
2. The International Bank for Reconstruction and Development
(IBRD) later named the WORLD BANK (WB)- World Bank
would provide loans for European reconstruction but later
expanded its activities to the developing world;
3. The General Agreement on Tariffs and Trade (GATT,
renamed of the World Trade Organization in 1992) - It would
oversee multilateral trade agreements.
• The economic dimension of globalization explores how
the way people have undertaken economic production
has changed.

• The global economic order emerged after World War II,

hen the Bretton Woods Conference laid the foundations
for the IMF, World Bank, and WTO.
 II. Cultural/Social globalization

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).
Cultural Globalization refers to the rapid transmission
of ideas, meanings, and values and cultural products
across around the world in such a way as a to extend
and intensify social relations.
This process is marked by the common consumption of
mono-cultures that have been diffused by the internet,
popular culture media, and international travel,
entertainment transnational marketing of particular brands
and international tourism that transcends local cultural
traditions and lifestyles, and that shapes the perceptions,
aspirations, tastes and everyday activities of people
wherever they may live in the world.
 Examples of Cultural Globalization

1. Migration – is an important aspect of cultural globalization

This process has been going on for several centuries, with languages,
religious beliefs, and values being spread by military conquest,
missionary work, and trade.

In the last 30 years, the process of cultural

globalization has dramatically intensified due
to technological advances in both
transportation and communications
technology.
2. Globalization of Food– is one of the most obvious examples
of cultural globalization. Food consumption is an important aspect of
culture and most societies around the world have diets that are
unique to them. However the cultural globalization of food has been
promoted by fast food giants such as McDonald’s and Coca-Cola.

The spread of these global food corporations

has arguably to the decline of local diets and
eating traditions.
3. Globalization of Sport– is another fairly obvious
example of cultural globalization – think of all the
international sporting events that take place – most
notably the World Cup and The Olympics and Formula 1,
which bind millions together in a shared, truly global,
‘leisure experience’.
4. Converging Global Consumption Patterns – today
you can go to pretty much any major city in the world and share in a
similar ‘consumption experience’.

Also, more and more people in Asia and South-America are coming
to enjoy high-consumption lifestyles like in the West – car ownership
and tourism are both on the increase globally for example.

Central to this is the growth of similar styles of shopping malls, and

leisure parks which provide a homogeneous cultural experience in
different regions across the world.
5. Homogeneity– comes to a society in a numbers of ways-
ethnically, religiously, culturally, politically etc.

Study has shown that the most prominent type of homogeneity is

ethnicity, where everybody share similar physiological characteristics
and cultural behavior.

Ethnic homogeneity still strong among many aboriginal groups in

USA, Latin countries, China, Japan, South Asia, and Africa.
6. Financial Homogeneity– also exists in many countries. It was
prevalent in many communist countries-this type of homogeneous
society is in decline now-a day.

North Korea is a great example of financial homogeneity, at extreme

level, another good example make sure that every citizen of their
country enjoy high living standards.
7. The Global Village/Global Consciousness–
Individuals and families are now more directly plugged into
news from the outside world- some of the most gripping
events of the past decade have unfolded in real time in
front of a global audience.
According to the Giddens this means that more and
more people have a more ‘global outlook’ and
increasingly identify with a global audience - for
example, television reporting of natural disasters in
developing countries result in people in wealthier
countries donating money to charities such as Oxfam to
assist with relief efforts.
8. Global Risks/Global Risk Consciousness– Ulrich Beck
(1992) argues that a fundamental feature of globalization is the
development of a global risk consciousness, which emerges due
to shared global problems which threaten people in multiple
countries. Examples:
• threat to terrorism
• international nuclear war
• threat to global pandemics
• rise of crime
• international drug trafficking
• global warming
 The Cultural Dimension of Globalization

The cultural dimension of globalization explores the

intensification and expansion of cultural flows across the
globe.

Critics of cultural globalization claim that the world is being

homogenized of ‘Americanized’.

However, advocates say that globalization reinvigorates

niche cultures instead of eliminating them.
 The Cultural Dimension of Globalization

The existence of the global imaginary is linked to

the rise of global media networks

These networks are owned by a small

group of transitional corporations,
which can affect journalistic integrity.
 III. Political globalization
It refers to the growth of the worldwide
political system, both in size and complexity.
It includes:
1. National governments
2. Intergovernmental organizations
3. Government-independent elements of global
civil society such as:
a. International non-government organizations
b. Social movement organizations.
 The Political Dimension of Globalization

The political dimension of globalization looks at

political arrangements beyond the nation-state

Traditional politics harbored an ‘us’ and ‘them’

mentality.
Contemporary globalization has led to a
permeation of those borders.
 The Political Dimension of Globalization

The modern nation-state came into being after the

Protestant Reformation, characterized by centralized
government and self-determination.

The rise of organizations such as the United Nations has

threatened the nation-state, according to globalization
sceptics.

However, national governments still hold significant powers.

 3

Causes of Globalization
1. Improved Communications– The development of
communication technologies such as internet, email and mobile
phones have been vital to the growth of globalization.

The development of satellite TV channels such as CNN have also

provided worldwide marketing avenues for the concept and
products of globalization.
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
globalization.
3. Free Trade Agreements – multinational
corporations and rich capitalist countries have always
promoted global free trade as a way of increasing
their own wealth and influence.

International organizations such as the

World Trade Organization also promote free
trade.
4. Global Banking– modern communication technologies
allow vast amounts of capital to flow freely and instantly
throughout the world.
 3

Effects of Globalization
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.
2. Division of Labor– 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.
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.
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.
Air Pollution
Some effects:
Acid rain
Deforestation
Greenhouse effect
Soil degradation
Ozone depletion
Desertification
Water contamination
Loss of Biodiversity
Disposal of Toxic Wastes
6. Increase in anti-Globalization Protest– There is
growing awareness of the negative impacts of globalization.
People have begun to realize the globalization can
challenged by communications supporting each other in
business and society and through public protest and political
lobbying.
 3

Advantages of
Globalization
• Increase free trade between nations.
• Global mass media ties the world together.
• Increase flow of communications allows vital information to
be shared between individuals and corporations around the
world.
• Greater ease and speed of transportation for goods and
people.
• Reduction of likelihood of war between developed nations.
• Increase in environmental protection in developed nations.
 3

Disadvantages of
Globalization
• Increased flow of skilled and non-skilled jobs from the
developed to developing nations as corporations seek out the
cheapest labor.
• Increased likelihood of economic disruptions in one nation
effecting all nations.
• Corporate influence of nation state far exceeds that of civil
society organizations and average individuals.
• Threat that control of world media by a handful of

corporations will limit cultural expression.

• Greater chance of reactions for globalization being violent in

attempt to preserve cultural heritage.

• Greater risk of diseases being transported unintentionally

between nations.
• Threat that control of world media by a handful of
corporations will limit cultural expression.
• Greater chance of reactions for globalization being violent in
attempt to preserve cultural heritage.
• Greater risk of diseases being transported unintentionally
between nations.
 “Every human is like
all other humans,
some other humans,
and no other human”
— Clyde Kluckhon