Globalization
usually refers to the increased flow of trade,
people, investment, technology, culture and
ideas among countries.
- The term globalization is used to refer to
the increased role of large, multinational
corporations in the world economy.
How new is globalization
• probably coined the term in 1960s.
• international migration is on the rise
• Businesses are expanding their
operations in other countries
what has led to the increase
globalization?
• trade barriers have gradually been
reduced around the world
• growth of sharing of technology
• methods of transportation
• methods of communication
• fall of communism
Globalization 2.0
mail-order brides” for foreign men living
in other countries
• Governments that decide to
welcome the foreign investments on
the belief that they provide jobs and
capital for the country offer public
lands as a factory or industrial sites.
“urban poor
communities”
2 premises
1.Globalization is a complex phenomenon
that occurs at multiple levels.
2. It is uneven process that affects the
people differently
Globalization: A Working Definition
•Globalization described the process as “the
expansion and intensification of social
relations and consciousness across world-
time and across world-
space. (Manfred Steger)
Expansion
•refers to both the creation of new social
networks and the multiplication of existing
connections that cut across traditional,
political, economic,
cultural, and geographical boundaries.
Intensification
• refers to the expansion , stretching, and
acceleration of these networks.
•Not only are global connections multiplying,
but
they are also becoming more closely-knit
and expanding their reach.
Steger notes:
•“ globalization processes do not occur
merely at an objective, material level but
they also involve the subjective plane of
human consciousness”
People begin to feel that the world has
become a smaller place and distance has
collapsed from thousands of miles to just a
mouse-click away.
•If globalization represents the
many processes that allow for
the expansion and intensification of global
connections then
Globalism
• Globalism is a widespread belief among
powerful people that the global integration
of economic markets is beneficial for
everyone, since it spreads freedom and
democracy across the world.
Conclusion:
• different kinds of globalization
occur on multiple and
intersecting dimension of
integration that he calls
“scapes”
Ethnoscape -refers to the global movement
of people
Mediascape - the flow of culture
Technoscape - refers to the circulation of
mechanical goods and software
Financescape - the global circulation of
money;
Ideoscape - the realm where political ideas
move around
Appadurai’s argument is simple:
• There are multiple globalization.
• depending on what is being globalized, a
different dynamic may emerge
• What are being globalized?
LESSON 2: The Globalization of World
Economic
Economic Globalization (IMF)
• a historical process representing the
result of human innovation and
technological progress increasing
integration of economies movement
of goods, services and capital
across borders
The Bretton Woods System
It was inaugurated in 1944 during the United
Nations Monetary and Financial
Conference
Bretton Woods
• economic crisis occur not when a
country does not have enough
money, but when money is not being
spent and, thereby not moving.
When economies slow down,
• Governments have to reinvigorate
markets with infusions of capital A
system of global Keynesianism
• The active role of governments in
managing spending served as the
anchor.
Delegates of Bretton Woods
agreed to create 2 financials
institutions
• International Bank for
Reconstruction and Development
(IBRD, or World Bank) to be
responsible for funding postwar
reconstruction projects.
• IMF which was to be the global
lender of last resort to prevent
individual countries from spiraling
into credit crises.
• If economic growth in a country
slowed down because there was not
enough money to stimulate the
economy, the IMF would step in.
The General Agreement on Tariffs and
Trade(GATT)
• established in 1947
• a forum for the meeting of
representatives from 23 member
countries.
• It focused on trade goods through
multinational trade agreements
conducted in many “rounds” of
negotiation.
Neoliberalism and Discontents
• 1940- 1970s the high point of global
Keynesianism
• Governments poured money into
their economies, allowing people to
purchase more goods and , in the
process, increase demand for these
products.
as price increased, companies would earn,
and would have more money to hire
workers.
Organization of Arab Petroleum
Exporting Countries (OPEC)
• Saudi Arabia, Iraq, Kuwait, Iran and
Venezuela (major exporters of oil in
the world today)
• Day of Atonement
 • 10 days of repentance (Rosh
Hashana)
Arab-Israeli War
Ramadan War
Egyptian and Syrian forces launched a
coordinated attack against Israel
Oil Embargo
In anger over US support for Israel, most
Arab states began to seek ways to punish
America, and the most effective way was to
damage the US economy by restricting oil
production. The predominantly Arab oil
cartel OPEC (Organization of Petroleum
Exporting Countries) cut back production
and raised prices, leading to a gas shortage
in the US Oil that was $3/barrel in 1973
climbed to $30/barrel by 1980 Increased
fuel costs meant less money to spend on
other things, which led to a recession
The “oil embargo” affected the Western
economies that were reliant on oil
It was formed because member countries
wanted to increase the price oil, which in the
past had a relatively low price and had
failed in keeping up with inflation
“stagflation”- decline in economic growth
and employment (stagnation) takes place
alongside a sharp increase in prices
(inflation)
• They argued that the governments’
practice of pouring money into their
economies had caused inflation by
increasing demandfor goods without
necessarily increasing supply.
• They argued that government
intervention in economies distort the
proper functioning of the market
Neoliberalism
codified strategy of the United States
Treasury Department, the World Bank, the
IMF, and leventually the World Trade
Organization (WTO) Washington
Consensus
The Washington Consensus
dominated global policies from 1980s
until the early of 2000s.
advocates pushed minimal government
spending to reduce government debt.
also called for the privatization of
government-controlled services
They pressured governments particularly
in the developing world, to reduce tariffs and
open up their economies, arguing that it is
the quickest way to progress.
“shock therapy” certain industries would
be affected and die necessary for long term
economic growth.
The Global Financial Crisis and the
challenge to Neoliberalism
Economic Globalization Today
Those benefited the most from free trade
were the advanced nations that were
producing and selling industrial and
agricultural goods.
The rice is “sacred”
TNC
“race to the bottom”