Chapter – 1

Learning Objective:

At the end of the lesson, the learners are expected to demonstrate the following:

• Examine the various conceptions of globalization

• Distinguish the different definitions from experts
• Adapt a working definition of globalization
• Analyze the attributes of globalization

Historical Foundation of the Term “Globalization”

Though many scholars place the origins of globalization in modern times, other trace its history long
before the European Age of Discovery and voyages to the New World, some even to the third millennium BC.
Large scale globalization began in 1820’s. In the late 19 th century and early 20th century, the connectivity of the
world’s economies and cultures grew very quickly.
In 1897, Charles Taze Rusell of (The Watch Tower Bible and Tract Society) coined a related term ,
corporate giants. This term ,refers to the largely national trusts and other large enterprises of the time.
In 1930, the word “globalize” entitled “Towards New Globalization” where it denoted a holistic view
of human experience in education.
In the late 1970’s , the world globalization was coined . In 2013, this term was used to mean “border-less
society” referring to international migration.
In the early part of 1981, the term “globalization” had been used in its economic sense. However, in the
late half of the 1980’s. Theodore Levitt popularized the term “globalization” by bringing it into the mainstream
business audience.
Lately in 2000, The International Monetary Fund (IMF) identified (4)basic aspect of globalization
namely:
(1) trade and transactions; (2) capital and investment movements; (3) migration of knowledge;
(4) dissemination.
It is only in 2017 when the word “globalization” was often used in teaching, in discussions, in meeting
and conferences, in lectures and so on.
This time 2018, the phenomenon of globalization is ow on full swing in all academic disciplines.

Nature of Globalization
Globalization is a conglomerate of various multiple units located in the different parts of the globe which
are linked by common ownership. The multiple limits draw on parts of the globe but all linked by common
ownership. Multiple units draw on a common pool of resources, such as money, credit, information, patents,
trade names and control systems. The units respond to some common strategy. Products presence is in different
markets of the world. Human resources are highly diverse. Transactions involving intellectual properties such
as copyrights , patents , trademarks, and process technologies are across the globe.

Academic literature commonly subdivides globalization into three major areas such as: economic
globalization; cultural globalization; and political globalization.

Indicators of Globalization
The inventions of science and technology are attributable to the spread of globalization. These are some
of the modern offspring of development in our infrastructure system. Like the jet-engine, the intenet, e-banking,
e-books, e-bike, the LRT,MRT and other mechanical inventions that contribute to our modern technology plays a
vital role in globalization. These improvements that people enjoy today in the contemporary world have been a
major factors in globalization which have generate further interdependence in economic and cultural activities
among nations.

Definition of Globalization
There are many varying definitions of the term globalization. These are as follows:
1. Globalization is the increasing interactions of people, states, countries through the growth of the
international flow of money, ideas and culture. It is primarily focused on economic process of
integration that has social and culture aspects.
2. It is the disconnectedness of people and business across the world that eventually lead to global,
cultural, political , and economic integration.
3. It is the ability to move and communicate easily with others all over the world in order to conduct
business internationally.
4. It is a free movements of goods, services, and people across the world in a seamless and integrated
manner. It is the liberalization of countries of their impact protocols and welcome foreign investments
into sectors that are the mainstays of its. Economy.
5. It refers to countries acting like magnets attracting global capital by opening up their economies to
multinational corporations.

Dimensions of Globalization
The following are the dimensions of globalization:
1. Planning to expand the business on a worldwide cope.
 2. Giving up the distinction between domestic and foreign market and instead developing a global outlook
of such business.
3. Locating the production and the physical facilities of the business by considering global business
dynamics irrespective of national consideration.
4. Creating the product development and production planning of a global market sphere.
5. Global sourcing of the factors of production such as raw materials components, machinery, technology,
finance, and others that are obtained from the best source anywhere in the world.
6. Global orientation or organization structure and management culture.

Reasons for Globalization

Why do we have to globalize especially at this contemporary world?
Here are the reasons:
1. Rapid shrinking of time and distance across the globe. One can easily cross the bridge going to the other
side of the market place due to advance tools of technology than before.
2. Domestic markets are no longer rich as a consequence of many interlocking factors.
3. Companies and Institutions go global to find political and economic stability which is relatively good in
other countries than the country of origin.
4. To get technological and managerial know-how pf other countries due to their advancement in science
and technology, education, health , and other fields of discipline. To reduce high transportation costs if
one goes globally using the advance tools of communication and information.

Importance of Studying Globalization

In today’s contemporary world, it is important for students to understand and appreciate the study of
globalization for the following reasons:
1. There is a greater demand in business industry, health, engineering, and technology to have people who
can work with people of other nations and cultures.
2. There is a greater demand of promoting the local business and industry to other countries and if need be,
owners travel independently and internationally for a better promotion.
3. Creating meaningful, harmonious, and workable relationship that link globally is an important aspect of
the merits of globalization, especially if one wish to be the President of the future generation.
4. Enable the students to work as a model of collaborative team in the near future along the areas of
business, education, health, science and arts, etc., and discuss best products in these areas.
Challenges
The contemporary world face global challenges that will take interdisciplinary groups to solve these
challenges. These challenges are; how to provide access to clean water, clean environment, clean renewable
energy that is affordable to everyone and how to deal with the unpredictable climate change; and
unpredictable health issues like COVID 19 pandemic, SARS, and other health problems just to name a few.
These global challenges need to be solved as soon as possible through the gathering and sharing information
across discipline, institutions and other entities in a global scale.

Competition
Even if you want to avoid globalization movement, you often have no choice but to compete. The
influx of foreign competitors in the US. limits the number of companies in some industries that can succeed
domestically. In the same way, if your competitors expand globally, you have to consider following suit.
Any money other companies make in foreign markets, they can bring back to the United States and invest it
in promoting their brands, products an services domestically.

Philosophy Underlying Globalization

Globalization is one of the most widely spread recent cultural, social, economic, and political
phenomenon which has strongly marked the discourse of the humanities and social sciences. This new, not-
yet constituted era poses multiple challenges in which there is room for novel theoretical paradigm in this
new emerging world.
1. The concept of globalization has only recently been widely accepted and adapted- words like global,
globality, globalization, globalism as well as the concepts of global market, global ecology, global
citizen, its more truly unknown up to very end of the 20th century.
2. Discussion of world issues used the derivatives of “international” rather than “global” relations
because of the recent popularized new concept of “globalization” has resulted in innumerable
contradicting definitions of the same.
3. While, normatively speaking, some people associate globalization with progress, prosperity, and
peace, some others consider it to be retrogression, disaster and decay.
4. The common and indisputable characteristics of all its definitions is the view that globalization is “a
process of economic, social, culture, and political activity, which transcends nation-state borders and
that it pertains to the world as a whole.” It is within this context that the multi-conditionality of the
globalization process comes to the fore.
5. Globalization is a complex and controversial process of the building of the world as a whole due to
the creation of global institutional structures and global cultural forms like a free market (economic
unification of the world with uniform patterns of production and consumption; democratic integration
 of the world based on common interest of humankind, such as equality, human rights protection, rule
of law, peace and security, and moral integration of the world based on humanistic values – instead of
national state particularism.
6. Various ideological movements of resistance to globalization have been emerging in response to
globalization such as the violent and destructive mass demonstrations staged in various countries are
a manifestation of resistance.
Finally, based on the above philosophical dimensions underlying globalization is the free movement of
goods, services and people across the world in a seamless and integrated manner. Globalization can be thought
of to be the result of the opening up of the global economy and the concomitant increase in trade between
nations in this contemporary world.
The point here is that, globalization has had positive and negative effects sand therefore, a deep approach is
needed when discussing the concept. What is undeniable is that GLOBALIZATION is here to stay hence it is
better for the countries in the global economy to embrace the concept and live with it in this contemporary
world.