DEFINING GLOBALIZATION

A. It is usually refers to the integration of the national markets to a wider global market signified by the increase
free trade.
According to Manfred Steger the international scholar globalist, that process of globalization, is the
expansion and intensification of social relations and consciousness across world – time and across world –
space.
▪ Expansion – refers to both the creation of new social networks and the multiplication of existing connections
that cut across traditional, political, economic, cultural, and geographic 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 definition of globalization must be differentiated with an ideology he called it globalism. If a
Globalization represents the many process that allow the expansion and intensification of a global
connections.

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. Globalization – is also a process
that refers to a larger phenomenon that cannot simply be reduced to the ways in which global markets have been
integrated.

According to anthropologist Arjun Appadurai, there are different kinds of globalization occurring on multiple and
intersecting dimensions of integration that he calls ‘scapes’.

▪ Ethos cape – refers to the global movement of people.

▪ Medias cape – about the flow culture
▪ Techno scape – refers to the circulation of mechanical goods and software.
▪ Finances cape – denotes the global circulation of money.
▪ Ideas cape – is the realm where political ideas move around.

B. Some more definitions of globalization & encompasses a multitude of process that involves the economy,
political system, and culture. (Social structure)
• Is trans planetary process or a set of processes involving increasing liquidity and the growing multi
directional flows of people, objects, places, and information as well as the structures they encounter and
create that are barriers to or expedite those flows.

C. How can we understand the globalization?

The perspective of who defines globalization shapes its definition.

The overview definition implies that globalization is many things to many different people. According to Arjun
Appadurai that globalization is a world of things that have different regions nations or societies.

To paraphrase, the sociologist Cesare Poppi that globalization is the debate, and the debate is the globalization.

The meaning of the concept is self-evident, in another is vague and obscure as its reaches are wide and constantly
shifting.

Globalization is a reality. It is changing as human society develops. It has happened before and is still happening
today. We should expect it to continue to happen in the future. The future of globalization is more difficult to predict.
What we could expect in the coming years is what has what happened over.
WHAT IS ECONOMIC GLOBALIZATION?

• Economic globalization refers to the increasing interdependence of world economies because of the
growing scale of cross-border trade of commodities and services, flow of international capital and wide and
rapid spread of technologies.

• Globalization decreases the cost of manufacturing. This means that companies can offer goods at a
lower price to consumers. The average cost of goods is a key aspect that contributes to increases in the
standard of living. Consumers also have access to a wider variety of goods.

• Globalization is associated with rapid and significant human changes. The movements of people from rural
to urban areas has accelerated, and the growth of cities in the developing world especially is linked to
substandard living for many. Family disruption and social and domestic violence are increasing.

• Globalization allows many goods to be more affordable and available to more parts of the world. It helps
improve productivity, cut back gender wage discrimination, give more opportunities to women and
improve working conditions and quality of management, especially in developing countries.

What is sustainable development?

• Sustainable development is the organizing principle for meeting human development goals while
simultaneously sustaining the ability of natural systems to provide the natural resources and ecosystem
services on which the economy and society depend.

• This sustainable development goal focuses on developing and expanding renewable energy resources
such as sun, wind, hydropower, liquid and solid biofuels, biogas and geothermal. These renewable sources
of energy don't emit greenhouse gases to the atmosphere and therefore are ideal for the environment and
human health.

The concept of Sustainable Development has in the past most often been broken into three constituent parts:

• Environmental sustainability is the rates of renewable resource harvest, pollution creation, and non-
renewable resource depletion that can be continued indefinitely. If they cannot be continued indefinitely
then they are not sustainable.

• Economic sustainability refers to practices that support long-term economic growth without negatively
impacting social, environmental, and cultural aspects of the community.

• Social sustainability is the least defined and least understood of the different ways of approaching
sustainability and sustainable development. Social sustainability has had considerably less attention in
public dialogue than economic and environmental sustainability.

Main features of sustainable development

• it respects and cares for all kinds of life forms.

• it improves the quality of human life.

• it minimizes the depletion of natural resources.

• it enables the communities to care for their own environment.

The united nations and contemporary governance

• The leading institution in charge of global governance today is the United Nations. It was founded in
1945, in the wake of the Second World War, to prevent future conflicts on that scale. The UN's main
mandate is to preserve global security, which it does particularly through the Security Council.
Role of united nations to global governance

• The primary role of the United Nations in global economic governance is as a political forum for dialogue
concerning the major issues on the global economic agenda and as an integrator of the different
perspectives on the economic, social, and environmental pillars of sustainable development.

What is contemporary global governance?

• Global governance encompasses activity at the international, transnational, and regional levels, and refers
to activities in the public and private sectors that transcend national boundaries.

Challenges of global governance in the 21st century?

• At the beginning of the century, threats such as ethnic conflicts, infectious diseases, and terrorism as
well as a new generation of global challenges including climate change, energy security, food and water
scarcity, international migration flow, and new technologies are increasingly taking center stage.

Ex. include financial market regulation through the Bank for International Settlements and the
guidelines for multinational enterprises set by the Organization for Economic Cooperation and
Development (OECD).

What is an international organization?

• The role of international organizations is helping to set the international agenda, mediating political
bargaining, providing a place for political initiatives, and acting as catalysts for the coalition- formation.
They facilitate cooperation and coordination among members nations.

Main functions of international organization

• International organizations serve many diverse functions, including collecting information and
monitoring trends (e.g., the World Meteorological Organization), delivering services and aid (e.g.,
the World Health Organization), and providing forums for bargaining (e.g., the European Union) and
settling disputes (e.g., the World Trade Organization). By providing political institutions through which
states can work together to achieve common objectives, international organizations can help to foster
cooperative behavior. IGOs also serve useful purposes for individual states, which often use them as
instruments of foreign policy to legitimate their actions and to constrain the behavior of other states.

Examples of an international organization

• Bank for International Settlements (BIS)

• European Central Bank (ECB)
• Food and Agriculture Organization of the United Nations (FAO)
• International Labor Organization (ILO)
• International Monetary Fund (IMF)
• International Telecommunication Union (ITU)
• Organization for Economic Cooperation and Development (OECD)

Most important international organization?

• United Nations
• North Atlantic Treaty Organization (NATO)
• European Union (EU)
• World Trade Organization (WTO)
• Group of Twenty (G20)
• International Criminal Court (ICC)
The united nations
• The United Nations is an international organization founded in 1945 after the Second World War by 51
countries committed to maintaining international peace and security, developing friendly relations
among nations, and promoting social progress, better living standards and human rights.
• The United Nations (UN) is an organization between countries established on 24 October 1945 to promote
international cooperation. It was founded to replace the League of Nations following World War II and to
prevent another conflict. To keep world peace. To help countries get along.

What does the UN do?

• The United Nations is an international organization founded in 1945 and committed to maintaining
international peace and security, developing friendly relations among nations, promoting social progress,
better living standards and human rights.

Four pillars of united nations

• Peace and Security
• Human Rights
• Rule of Law
• Development

What are the challenges of the un?

• threats from poverty, disease, and environmental breakdown (the threats to human security identified in the
Millennium Development Goals) threats from conflict between states. threats from violence and
massive human rights violations within states.

A world of regions
• The standard elements of the world-regional model include North America, Latin America, Europe, the
Middle East and North Africa, Sub-Saharan Africa, Central Asia, South Asia, East Asia, Southeast Asia, and
often the Caribbean, by those names; the remaining regions are some variations of a Russian sphere.

12 regions of the world

1. Greenland 8 geographic regions of the world
2. North America 1. Africa
3. South America 2. Asia
4. Europe 3. The Caribbean
5. The middle East 4. Central America
6. North Africa 5. Europe
7. Sub- Saharan Africa 6. North America
8. Asia 7. South America
9. Southeast Asia 8. Oceania
10. The pacific islands
11. Australia
12. Central America

Countries affected by globalization.

• Developing countries such as India, China, Iraq, Syria, Lebanon, Jordan, and some Africa's countries, have
been affected by globalization, and whether negatively or positively, the economies of these countries have
improved under the influence of globalization.
Country that is against globalization

• The anti-globalization movement has been spurred by the huge trade deficits that developed countries
have with China and India. China has a huge trade deficit of $375 billion with the US, the EU and India.
(India is already acting against the surge in Chinese imports).

How does globalization benefit poor countries?

• Economic growth is the main channel through which globalization can affect poverty. What researchers
have found is that, in general, when countries open to trade, they tend to grow faster and living standards
tend to increase. The usual argument goes that the benefits of this higher growth trickle down to the poor.

Which country started globalization?

• Trade links between China and Europe first grew during the Hellenistic Age, with further increases in
global market convergence occurring when transport costs dropped in the sixteenth century and more
rapidly in the modern era of globalization, which Messrs. O'Rourke and Williamson describe as after
1750.

Top countries in the globalization index 2020

 NAYAN CHANDA HISTORY OF GLOBALIZATION

A. HARDWIRED-according to Nayan Chanda (2007) It is because of basic human need to make our lives
better that made globalization possible. Therefore, one can trace the beginning of globalization from our
ancestors in Africa who walked out from the said continent in the late Ice Age. This long journey finally led
them to all known continents today, after roughly 50,000years.
• Chanda mentioned that commerce, religion, politics, and warfare are the “urges” of people toward a
better life.

These are connected to the 4aspects of globalization, and they can be traced all throughout history:
1. Trade
2. missionary work
3. Adventures
4. Conquest

B. CYCLES- For some, globalization is a long-term cyclical process. Finding its origin is a daunting task.
What is important is the cycle that globalization has gone through (Scholte 2005) Subscribing to this view
will suggest adherence to the idea that other global ages have appeared. There is also the notion of
suspicion that this point of globalization will soon disappear and reappear.

C. EPOCH- according to Ritzer (2015) cited Therborns (2000) there are 6 epochs of globalization, and these
are called as “waves” and each has its own origin:
1. Globalization of religion (4th to 7th century)
2. European Colonial Conquest (late 15th century)
3. Intra-European wars (late 18th to 19th centuries)
4. Heyday of European Imperialism (mid- 19th century to 1918)
5. Post- World war II period
6. Post- Cold War Period

D. EVENTS - 4th viewing of the origin explaining the origin of globalization.

1.Gibbon (1998) –argued that Roman conquest centuries before Christ were its origin.
2. Magazine economist- considered rampage of the armies of Genghis Khan into Eastern Europe in the 13 th
century.
3. Rosenthal (2007) gave premium to voyage discovery of the following
a. Christopher Columbus’s discovery of America in 1942, Vasco de Gama in Cape of Good
Hope in 1948, and Ferdinand Magellan’s completed circumnavigation of the globe in
1522.

Recent years could also be regarded as the beginnings of globalizations with reference to specific technological
advances in transportation and communication.

Examples:

1.First Atlantic Telephone Cable (1956)

2. First Atlantic Television Broadcast (1962)
3. Modern Internet in 1988
4. Terrorist attack on the Twin Towers in New York (2001)

RECENT CHANGES:
Half of the 20th Century- Scholars point of view 3 notable changes as the origin of globalization that we
know today:
1. The emergence of the United States as the global power (post world war II)
2. The emergence of multinational corporation
3. The demise of the Soviet Union and the end of the cold war.
 INTERNATIONAL TRADE AND BRETTON WOODS SYSTEM

WHAT IS INTERNATIONAL TRADE?

▪ It is also known as International Trade, the exchange of capital goods and services across
international borders or territories because there is a need or want of goods or services.
▪ International trade was key to the rise of the global economy. In the global economy, supply, and
demand—and thus prices—both impact and are impacted by global events.
▪ International trade, economic transactions that are made between countries. Among the items
commonly traded are consumer goods, such as television sets and clothing; capital goods, such as
machinery; and raw materials and food. Other transactions involve services, such as travel services
and payments for foreign patents.
▪ Political change in Asia, for example, could result in an increase in the cost of labor. This could
increase the manufacturing costs for an American sneaker company that is based in Malaysia,
which would then result in an increase in the price charged for a pair of sneakers that an American
consumer might purchase at their local mall.

2 KINDS OF INTERNATIONAL TRADE

EXPORT IMPORT

▪ A product that is sold to the global market.
▪ The goods and services that are purchased
from the rest of the world by a country’s
residents, rather than buying domestically
produced items.
▪ Imports lead to an outflow of funds from the
country since import transactions involve
payments to sellers residing in another
country.
▪ refers to buying goods and services from
foreign sources and bringing them back into
the home country.
▪ A product that is bought from the global
market.
▪ Goods and services that are produced
domestically, but then sold to customers
residing in other countries.
▪ Exports lead to an inflow of funds to the
seller’s country since export transactions
involve selling domestic goods and services
to foreign buyers.
▪ refers to selling goods and services produced
in the home country to other market
(countries).

THE ADVANTAGE AND DISADVANTAGE OF INTERNATIONAL TRADE

ADVANTAGES DISADVANTAGES

▪ Increased revenues ▪ Shipping Customs and Duties

▪ Decreased competition ▪ Language Barriers
▪ Longer product lifespan ▪ Cultural Differences
▪ Easier cash-flow management ▪ Servicing Customers
▪ Better risk management ▪ Returning Products
▪ Benefiting from currency exchange ▪ Intellectual Property Theft
▪ Access to export financing
▪ Disposal of surplus goods
FREE TRADE PROTECTIONISM

- Free trade is the simpler of the two theories.
This approach is also sometimes referred to
as laissez-faire economics. With a laissez-
faire approach, there are no restrictions on
trade. The main idea is that supply and
demand factors, operating on a global scale,
will ensure that production happens
efficiently.
▪ Protectionism holds that regulation of
international trade is important to ensure that
markets function properly. Advocates of this
theory believe that market inefficiencies
may hamper the benefits of international
trade, and they aim to guide the market
accordingly. Protectionism exists in many
different forms, but the most common are
tariffs, subsidies, and quotas.

BRETTON WOODS SYSTEM

▪ The Bretton Woods Agreement and System created a collective international currency exchange regime
that lasted from the mid-1940s to the early 1970s.

▪ The Bretton Woods System collapsed in the 1970s but created a lasting influence on international currency
exchange and trade through its development of the IMF and World Bank.

▪ The Bretton Woods Agreement was negotiated in July 1944 by delegates from 44 countries at the United
Nations Monetary and Financial Conference held in Bretton Woods, New Hampshire. Thus, the name
“Bretton Woods Agreement.

▪ Under the Bretton Woods System, gold was the basis for the U.S. dollar and other currencies were pegged
to the U.S. dollar’s value. The Bretton Woods System effectively came to an end in the early 1970s when
President Richard M. Nixon announced that the U.S. would no longer exchange gold for U.S. currency.

▪ WTO (WORLD TRADE ORGANIZATION) - is the only global international organization dealing with
the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk
of the world’s trading nations and ratified in their parliaments. The goal is to ensure that trade flows as
smoothly, predictably, and freely as possible.

▪ Created in 1995, the World Trade Organization (WTO) is an international institution that oversees the
global trade rules among nations. It superseded the 1947 General Agreement on Tariffs and Trade (GATT)
created in the wake of World War II.

▪ The WTO is based on agreements signed by the majority of the world’s trading nations. The main function
of the organization is to help producers of goods and services, exporters, and importers protect and manage
their businesses. As of 2021, the WTO has 164 member countries, with Liberia and Afghanistan the most
recent members, having joined in July 2016, and 23 “observer” countries.

BENEFITS

▪ Significant expansion in international trade and investment.

▪ Better macroeconomic performance.
▪ Inflation rates are average low for every industrialized country except Japan.
▪ Real per capita income growth is higher.