The Contemporary World: Globalization

 Globalization: An Introduction
 1
Increasing interdependence of national economies in trade; 2diffusion of practices,values, technology
influencing people;3Configuration of social geography marked by growth of trans planetary & super territorial
between people; Increased cross-border flow of goods; Development structure of geography is close interrelated
w/ concurrent developments in structures of production, governance, identity, knowledge.
 Principles of Globalization
1. Internationalization-Most common opinion of glob’n;Global-cross-border relations;globalization-intr’l exchange/
interdependence
2. Localization-process of planning/implementing products easily adopted to local languages and cultures
3. Liberalization-removing state imposed restrictions in movements between countries; create open/borderless world
economy
4. Universalization- global=worldwide, sending various object/experiences all people;standardization& homogenization
w/ world.
5. Americanization- glob’n as Westernization/ modernization;
6. Imperialism-Social Structure of modernity(capitalism, rationalism)are spread; destroying earlier existent cultures/local
self determination; Glob’n in this way is often interpreted as colonization, Americanization, “westoxication”

Lesson 1: Globalization and its Definition from Different lenses

 The Concept of Globalization
 Common Concepts attached to the definition of globalization
1. Global Dominance of Anglo- 3. Incomplete 6. Increase global interconnectedness
American Idea 4. Contradictory set of ideas 7. Unimpeded of capital, people,
2. Fragmented 5. Time space compression ideas, beyond borders
 Globalization according to:
1. Organization for Economic Cooperation and Development-Geographic dispersion of industrial and
service activities
2. Peterson Institute for Inter’l Economics- [Globalization] is “the word used to describe the growing
interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in
goods and services, technology, and flows of investment, people, and information.”
3. World Health Organization- [Globalization] is “the increased interconnectedness and interdependence of
peoples and countries, 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”.
4. Anthony Giddens-[Globalization] can thus be defined as “the intensification of worldwide social relations
which link distant localities in such a way that local happenings are shaped by events occurring many miles
away and vice-versa. This is a dialectical process because such local happenings may move in an obverse
direction from the very distanciated relations that shape them”
 The Three Arguments to Globalization
1. Rejectionist-Rejectionists are the scholars who dismiss the usefulness of the term “globalization”.
2. Skeptics- Contrary to the rejectionists, the skeptics are the scholars who emphasize the limited nature of the
concept of globalization.
3. Modifier- The modifiers argue that globalization is a historically imprecise concept.
 Globalization &its definition- process which world, previously isolated through physical &technological
distance increasingly interconnected.
1. Academic Perspectives 3. Economists
2. Political analyst 4. Scholars of culture and communication
 Four dimensions of Globalization

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 The Contemporary World: Globalization
 Manfred Steger- Manfred Steger, professor of Global Studies atthe University of Hawaii at Manoa argues that
globalization has four main dimensions:  Economic, Political, Cultural, Ecological, with ideological aspects of
each category.
1. Econmic Dimension- Intensification and stretching of economic interrelations around the globe;
a) Economic globalization is the intensification and stretching of economic interrelations around the globe. It
encompasses such things as the emergence of a new global economic order, the internationalization of trade
and finance, the changing power of transnational corporations, and the enhanced role of international
economic institutions.
2. Political Dimension- Intensification/expansion of political relations around the globe;
a) Political globalization is the intensification and expansion of political interrelations around the globe.
Aspects of political globalization include the modern-nation state system and its changing place in today’s
world, the role of global governance, and the direction of our global political systems.
 Military- intensification/ stretching of military power across the glove through various means of
military power
 Military globalization, as subdomain of political globalization, is defined as the intensification
and stretching of military power across the globe through various means of military power. This
form of globalization occurs across offensive and defensive uses of power and survival in
international field.
3. Cultural/ Social Dimension- intensification and expansion od cultural flows across the globe
a) Cultural globalization is the intensification and expansion of cultural flows across the globe. Culture is a
very broad concept and has many facets, but in the discussion on globalization, Steger means it to refer to
“the symbolic construction, articulation, and dissemination of meaning.”
4. Ecological Dimension- Population growth, access to food, worldwide reduction in biodiversity the gap
between rich and poor, global north and south, human induced climate change, and global environmental
degradation.
a) Ecological globalization include population growth, access to food, worldwide reduction in biodiversity,
the gap between rich and poor as well as between the global North and global South, human-induced
climate change, and global environmental degradation.
 Three views of Globalization: Underlying philosophies and ideologies in globalization
1. Market-pursues to grant globalization w/neoliberal meanings &free market norms. Mar. globalists promise
consumerist, neoliberal,free-market world;advocates powerful individuals claims globalism spreads democracy
&benefits everybody.
2. Justice- political left contests Mark.globalism. Political left/left-wing is that which supports equality
egalitarianism and usually in opposition to social hierarchy.
3. Religious-endeavors for global religious community w/dominance over secular structures;fight against
market &justice glob.,seeking to champion religious beliefs &values(severe attack by power of
consumerism&seculiarism in glob’zd world

Lesson 2: Historical Foundation of Globalization

1. Archaic Globalization- time of earliest civilizations until 1600; describes the relationships between communities &
states.
a) Archaic globalization is a phase in the history of globalizat ion, and conventionally refers to globalizing events
and de velopments from the time of the earliest civilizations until roughly 1600. Archaic globalization
describes the relation ships between communities and states and how they were created by the geographical
spread of ideas and social nor ms at both local and regional levels.
2. Proto- Globalization- early modern glob. period of history of glob,1600-1800; A.G.Hopkins&Christopher Bayly
“modern globalization” in 19th century.

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 The Contemporary World: Globalization
a) Proto-globalization or early modern globalization is a peri od of the history of globalization roughly spanning
the yea rs between 1600 and 1800, following the period of archaic globalization. First introduced by historians
A. G. Hopkins and Christopher Bayly, the term describes the phase of inc reasing trade links and cultural
exchange that characterize d the period immediately preceding the advent of so-called "modern globalization"
in the 19th century.
3. Modern-Industrialization allowed cheap production of household items using economies of scales, while rapid
population growth created sustained demand for commodities.
a) Modern Globalization. The 19th century witnessed the adv ent of globalization approaching its modern form.
Industri alization allowed cheap production of household items usi ng economies of scale, while rapid
population growth crea ted sustained demand for commodities. Globalization in th is period was decisively
shaped by nineteenth-century imp erialism.
 Brief Historical Timeline of globalization
1. 5,000 BCE: Movement of humans- The movement of humans outside of Africa to other parts of the world in
5000 BC was important because it allowed for new resources to be discovered and trade to occur.
2. 200 BCE: Silk Road-cThe Silk Road, used in 200 BC, was a series of routes which connected China to the
Mediterranean. It allowed for trade between the two major regions of the time.
3. 1440: Creation of the Printing Press-The creation of the printing press in 1440 allowed for the spread of
information between regions. It changed the way humans saw the world around them and influence the spread of
knowledge.
4. 1492: The Colombian Exchange- During the 15th and 16th century there a lot of transfer between the products
and materials from the New World and the Old World. It affected the culture of society.
5. 1600: Atlantic Slave TradeThe movement of slaves from Africa to other parts of the world showed development
in integrating economies. The Slave trade connected the New World, Europe, and Africa together.
6. 1814: Invention of Steam Train-The creation of the stream train made it possible to trade materials faster as well
as letting humans move from one place to another faster. It helped advance the economies of the world.
7. 1929: The Great Depression- The Great Depression hit all parts of the world at once. The decline of stock prices
which caused the stock market crash drove the economy down and future changes were made to the banks.
8. 1945:The creation of the United Nations in 1945 showed connect ions and interdependence between the
economies of the world. It allowed for the promotion of institutions.
9. 1991: Introduction of the World Wide Web- The creation of the World Wide Web in 1991 allowed for humans all
around the world to connect via on the web. It was used as a connection to keep information spreading and for
communication between people.

Lesson 3: Attributed of Globalization The Global interstate System:

 “Globalization” Its Origin
1. 1897, Charles Russel- the largely national trusts and large enterprises during the time
2. 1930: “globalize” “towards new education”
3. 1970- “globalization” was first used
4. 1981- “Globalization”- economic perspective. Theodore Levitt introduced the word in his business
5. 2000 IMF- 4 basic aspects: Trade Transaction; Capital&investment movements; migration of knowledge;
dissemination
 Globalization Theories
1. The Hyper globalist Approach- ‘truly global age’ legalizing the dominance of global capitalism (Tikly,2001);
neoliberal agenda (Held, 2004); In terms of open market(Waks,2003)
i. Presents the stance in the globalization theory which claims that the world has entered a 'truly global age'
legalising the dominance of 'global capitalism' (Tikly, 2001).

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 The Contemporary World: Globalization
ii. • The logic of hyperglobalist stance is underpinned by 'neo-liberal agenda' (Held, 2004) which views
globalization 'in terms of open market' (Waks, 2003).
2. The Skeptical Approach- questions the effectiveness of trading blocs and views the issue through histories
perspective (Tikly, 2001); the world is just the same
i. Questions the effectiveness of trading blocs and views the issue through historic perspective (Tikly, 2001).
ii. • Sceptics do not perceive globalization as a novelty and do not observe any global changes. The world is
just the same.
3. The Transformational Approach- hyperglobalists about an intensification of global interconnectedness.
i. Represents intermediary, more balanced stance towards globalization. They do agree with the
hyperglobalists about an intensification of 'global interconnectedness' and recognize the allpervasive nature
of globalisation process (Tikly, 2001). However, they doubt the novelty of the phenomenon and view it as
'an historically contingent process replete with contradictions' (Tikly, 2001).
 Structures of Globalization
 Two Types of Economic Principles with regard to Globalization
1. Protectionism- policy of systematic government intervention in foreign trade w/ objective of domestic
production
2. Trade liberalization/freetrade-good&services move around the world easily
 3 Theories of Global Stratification- Division into social classes or layers
 Modernization-Emerged in America in the 1940s, and argued that the ‘third world’ was poor because of a
number of internal barriers to development. They needed assistance from Western business and
governments in order to provide the fuel for industrialization and to kick start the process of economic
growth
 .Rostow’s 5 stage of development model
1. Traditional society- pre-developing era, investments focus on agriculture, religion, military
2. Transitional stage- investments on technology, infrastructure to stimulate increase of GTP
3. Take-off- limited number of economic industries take off, produce wide range of products
4. Drive to maturity-few industries spread to wide varieties
5. High mass consumption- economy shift to production of heavy industry (steel and energy - motor
vehicles)
 Variations - diff. Theories stress importance diff. Types of assistance/intervention( jolt countries out of
their traditional way and bring change)
1. Hoselitz- importance of education to speed up introduction of western values (universalism,
individualism) breaking link between family and children
2. Inkeles- media, importance to diffuse ideas non traditional, family planning, democracy
3. Hoselitz urbanization. Population closely together, new ideas are likely to spread than rural population
1. Dependency- third world countries’ poverty is not because they lack but because the west is dependent to
them.; defines globalization in connection to capitalism and exploitation of labor& resources in exchange of
products.
a) Joshi (2005) states that the theory of dependency points out that the Third World countries’ poverty is
actually not by their lack but is instead because the West has been dependent on the Third World countries
in order tobe able to grow and prosper. Dependency theory defines globalization inconnection to capitalism
and exploitation of labor and resources in exchange of products from the west (Joshi, 2005).In Prebisch’s
model of development, there are three principal points to avoid this dependency to happen. One of the
principal points is “to control the monetary exchange rate, placing more governmental emphasis in fisca
rather than monetary policy and to focus on taxation of the government forthe society” Another principal
point is “to create a platform of investments giving a preferential role to national capitals” And lastly, “to
generate a larger internal demand by increasing the wages of workers, which will inturn positively affect
aggregate demand in internal markets” (Reyes).
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 The Contemporary World: Globalization
 3 Principal points
1. To control monetary exchange rate, placing gov’tal emphasis in fiscal rather monetary policy, focus
taxation
2. Create a platform of investments giving a preferential role to national capital
3. Generate larger internal demand by increasing wageswork,turn positively affect aggregate demand in
inter’l market
2. Theory of world Systems- formulated by wallerstein, emerged due to different form of capitalism, struggle
of third world countries to alleviate their social conditions;
 Model of the world divided into three systems (Chase-dune, 1997)
1) The core- powerful countries/states have capability of monopolizing the third world countries
(periphery states)
2) Periphery-nations depend on core; how core exploit peripheral for cheap labor,raw materials;16 th
cent.ry
gain colonies
3) Semi Periphery- have been improving overtime/catching up with core countries; contain characteristic
of both systems and act as buffers that fill the big gap between the core and periphery.
 Barriers to Economic Development
 Lack of infrastructure; technology; skills in the work force; capital in the country. Political Instability.

Lesson 4: Global Economy

 Global Economy- free movement of goods, capitals, services, technology, information
 Globalization affects markets of three kinds
1. Commodities 2. Labor 3. Assets and debts
 International Trading System-The international trading system comprises many thousands of unilateral, bilateral,
regional, and multilateral rules and agreements among more than two hundred nations. Trade negotiations.
 Importance
1) Enables fuller utilization of the resources; 2) Trading partners get goods cheaper than otherwise because
every country produces those goods in production of which it has to occur at less comparative cost
 Foreign Trade- exchange of capitals, goods, services across international borders/ territories
 Advantages
1) Help each country to specialize in production of those goods; 2) leads to maximum use of natural
resources;
3) country obtain goods by importing
 Foreign Trade Policy- government actions, especially tariffs, import quotas, and export subsidies, designed
to increase net exports by promoting exports or restricting imports.
 8 benefits of trading internationally
1. Variety of goods 4. Lower costs 7. Innovation
2. Outlets for surpluses 5. Production efficiency 8. investment
3. Reduction pf market fluctuations 6. Resource specialization
 8 Man-made barriers in several forms
1. Tariffs 4. Export licenses 7. Voluntary export restraints
2. Non- tariff barriers to trade 5. Import qoutas 8. Local content requirements
3. Import licernses 6. Subsidies
Bretton Woods Sytem-The Bretton Woods system of monetary management established the rules for commercial
and financial relations among the United States, Canada, Western Europe, Australia, and Japan after the 1944
Bretton Woods Agreement.
Purpose of BWS- set up new system of rules, regulations, procedures for major economies ensuring economic
stability

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 The Contemporary World: Globalization
Bretton Woods Conference- officially known as the United Nations Monetary and Financial Conference, was a
gathering of delegates from 44 nations that met from July 1 to 22, 1944 in Bretton Woods, New Hampshire, to agree
upon a series of new rules for the post-WWII international monetary system.
Objective of BWS- achieve exchange rate stability and promote international trade and development

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