THE CONTEMPORARY WORLD

Globalization • a process of rapid economic, cultural, and institutional integration

Examples of Globalization
among countries.
• 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.
• process by which people, their ideas and their activities in different
parts of the world become interconnected or integrated.
• It shows how the world has “shrunk” and how people, goods and
information can be moved easily around the world.
• This unification is driven by the liberalization of trade, investment and
capital flow, technological advances, and pressures for assimilation
towards international standards
• The set of processes by which more people become connected in
more different ways across ever- greater distances.
• Can be equated with deterritorialization
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MCDONALDS, SATYA PAUL, HONDA, VERSACE

Positive Effects Higher living standards, development of infrastructure

Negative Effects Cut throat competitions, rise in monopoly

Advantages ○ Globalization gives a larger market

○ increases standard of living,
○ exchange of knowledge,
○ information and culture at international level,
○ selection of choices of goods and services,
○ mutual understanding among the nations increased and world
became a better market

Disadvantages ○ Creates unemployment in developed countries

○ Business and the big companies are the only winner in
globalization
○ Increase spread of communication diseases
○ Harmful effects on small industries and small business
○ Harmful effect of consumerism
○ Companies face much greater competition

Types of Globalization 1. Economic

2. Social
3. Political

Economic Countries that trade with many others and have few trade barriers are
economically globalized

Social A measure of how easily information and ideas pass between people and
their own country and between different countries (Includes access to
internet and social media networks )
Political The amount of political cooperation there is between countries

Economic Impact ○ Improvements in standards of living

○ Increased competitions among nations (Investment and market)
○ Widening income gap between the rich and poor
○ Environmental degradation (Deforestation and related problems, Global
warming, Environmental management)

Social Impact ○ Increased awareness of foreign culture

○ Loss of local culture

Causes of globalization ○ Trade liberalization

○ Improvements in technology
○ Reduced cost/ improvement of communications and
transportation
○ Deregulation of financial markets
○ Increased significance of transnational corporations (TNCs)

Trade liberalization Refers to a reduction of trade barriers, this will open up worldwide
markets

Mercantilism First capitalism, free market competition

GATT General Agreement on Tariffs and Trade

WTO World Trade Organization

ASEAN Association of Southeast Asian Nations

UN United Nations

Improvements in technology ○ Makes it easier to communicate and share information around the
world
○ The most important development in the recent years is the
internet

Reduced costs and improvement of
communications and transportation
○ Fall in the real cost of transporting goods has allowed cheaper
importation and exportation of goods
○ Decline in the cost of communications has also helped this
○ Improvements in transportation have also allowed firms to split up
those production process to cash in on varying cost conditions in
different parts of the world
○ This has helped to facilitate the growth of TNCs

Deregulation of financial markets
○ There have been moves towards removing restrictions on the
movement of financial capital between countries
○ Many countries have removed capital controls-made it easier for
firms to operate globally
○ Reinforced by developments in technology that enable financial
transactions to be undertaken more quickly and efficiently
○ Financial markets have increased globalization due to their being
setup in various countries
○ They allow for more interface and communication between
different parts of the world over the trade of financial assets
Increase significance transnational ○ After the Second World War more economic power was shifted to
corporations corporations-accelerated growth
○ TNCs have grown even further due to favorable corporation tax
rates in many countries and tax breaks, as TNCs supposedly
bring in more jobs
○ TNCs partake in foreign direct investment, which increases the
integration of economies
○ Many TNCs want to gain entry to, for example the EU due to its
single market, and China due to its large and growing market

Effects of globalization ○ Has led to increase in competition

○ Causes exchange of technology- helps in knowledge and
information transfer across the globe
○ led to increase in investment levels and rise in opportunities
○ led to vast multinational and multicultural management
○ Leads to procurement & outsourcing

Factors that affect globalization Universal language,Transportation, Communication

Universal language The language of globalization is english, and English language skills have
turned into one of the major competencies of the person of the knowledge
society, and, therefore, the current approaches to English language
education, which treat English as one of the “foreign language” must be
revised

Transportation Essential in globalization for all countries. Transportation boosts trade in

goods and contributes to the global economy as a cluster of service
sectors. It includes carriage by air, by railway and trucks, and by sea .

Communication Global communication is directly affected by the process of globalization,

and helps increase business opportunities, remove cultural barriers and
develop a global village. Both globalization and global communication
have changed the environmental, cultural, political and economic
elements of the world

Deterritorialization Process through which the constraints of physical space lose their hold or
control to social relations

Global demography The study of the worldwide population rather than the population of a
specific country, region or city (death rate, mortality, migration)

Why does global demography matter? It help government and private companies analyze and predict population-
related social, cultural, and economic trends that is relevant on critical
future plans

Five Big Demographic Trends Shaping The 1. The ratio of children to older citizen is declining
World 2. There has been a sea-change in the nature of illness to non-
communicable diseases;
3. The speed of aging is rising rapidly in emerging economies;
4. Old-age dependency ratio is rising rapidly in Japan, European
countries, but at a slower pace in Anglo Saxon economies;
5. It's getting harder to exploit demographic dividend

Migration movement of people from one place to another with purpose of changing
their residence, either temporarily or permanently
Global Migration Migration for that matter, is also one of the demographic components
advances and innovative transportation and communication technologies
that have driven globalization forward

Types of Immigration 1. Internal migration 2.International migration

Internal migration movement within the country

International migration Movement from one country to another

Factors of Migration 1. Push factor 2.Pull factor

Push factor Refers to any human or nature factors that encourage or force people to
leave a residence or a settlement

1. Social push factor 1. racism, violence, mediocracy

2. Political push factor 2. Political revolutions, civil war
3. Economic push factor 3. Lost of opportunities available jobs with higher wages
4. Environmental push factor quality of education cost-of-living standard living
4. Victims of natural disasters, pollution, tagtuyot

Pull factor Refers to any human or nature factors that attract people to
live a new residential area or location

1. Social pull factor 1. No violence

2. Political pull factor 2. Efficient justice system
3. Economic pull factor 3. Workers right, more opportunities
4. Environmental pull factor 4. Less pollution,no pandemic

Refugees Someone who has been forced to flee his or her country
because of persecution war or violence

69% of those displaced across borders come from just 5 countries Syria ,Venezuela ,Afghanistan ,South Sudan , Myanmar

Cultural Relativism ○ The view that ethical and social standards reflect the
cultural context from which they are derived
○ In international relations, cultural relativists determine
whether an action is right or wrong by evaluating it
according to the ethical standards of the society
within which the action occurs

Exchange of Dollars Considered as world reserve currency; In because its

dominance role as a medium of exchange, the U.S. dollar is
also the dominant currency in international banking

Trade of resources Creation of global market; market integration

Survival Neoliberalization

Neoliberalization - Is the dominant ideology permeating the public policies of

many governments in developed and developing countries
and of international agencies such as the World
Bank,International Monetary Fund, World Trade Organization,
and many technical agencies of the United Nations, including
the World Health Organization

“Structural adjustment”: First wave of the neoliberal offensive
“Good governance”: Second wave of the neoliberal offensive
“Partnerships”:Third wave of the neoliberal offensive
Global Interdependence
- this ideology postulates that the reduction of state
interventions in economic and social activities and the
deregulation of labor and financial markets, as well as of
commerce and investments, have liberated the enormous
potential of capitalism to create an unprecedented era of
social well- being in the world's population
○ Liberalization of trade and investments
○ Privatization of public assets
○ Fiscal austerity are cutting back public spending on
social welfare and services
○ Anti-social deregulation
○ Labor flexibilization
○ Minimizing taxes on corporations and elites
○ Denationalization or breaking down national barriers
of underdeveloped countries to allow entry of foreign
capital, goods and services
○ A focus on price stabilization( monetarism )
This was intended to improve the governance and
transparency of public institutions; enhance competition in
the private sector; and provide safety nets for the people who
are displaced or left out by market reforms
Public- private partnerships (PPPs) are now the
centerpiece of this third wave of the global neoliberal
offensive where governments socialize the risk associated
with the private sector profiteering. “Blended finance” is now
the preferred mode of financing “development”, Where public
resources (such as official development assistance) are used
to subsidize private investments in projects requiring huge
capital outlays such as large infrastructure
Refers to worldwide mutual dependence between countries.
In other words, mutual dependence at a worldwide level. One
nation depends on another for something.That country also
depends on another for either the same thing or something
else. As more countries depend on other nations for things,
especially key things like energy and food, global
interdependence evolves