Associate Professor 1 GLOBALIZATION viewed as primarily an economic process that affects the integration of national products to the world markets refers to the continuing integration of technological processes to many countries and the uprising of business from the developed, developing and under develop countries. refers to the development of global or worldwide business activities, competition and markets and the increasing global interdependence of national economies the process by which the world, previously isolated through physical and technological distance, becomes increasingly interconnected. the process of intensification of economic, political, social and cultural relations across international boundaries which principally aimed at the transcendental homogenization of political and socio-economic theory across the globe. process of growing exchange, interaction and integration between people, governments and private organizations across the globe. International trade, capital flows, migration, technological transfer and cultural exchanges are some of the typical manifestations of this process it represents the global integration of international trade, investment, information technology and cultures equated with progress and economic growth and generally supported. the expansion (both the creation of new social networks and the multiplication of existing connections that cut across traditional political, economic, cultural , and geographic boundaries) and intensification (expansion , stretching and acceleration of these networks)of social relations and consciousness across world-time and across world-space--Manfred Steger PHILOSOPHIES OF GLOBALIZATION Globalization is about the Liberalization and Global Integration of Markets. This is anchored in the neo-liberal idea of the self- regulating market as the normative basis for a future global order. According to this, the vital functions of the free market- its rationality and efficiency , as well as its alleged ability to bring about greater social integration and material progress -can only be realized in a democratic society that values and protects individual freedom. (Steger, 2005) Globalization is Inevitable and Irreversible
According to the market-globalist,
globalization reflects the spread of irreversible market forces driven by technological innovations that make the global integration of national economies inevitable.(Steger, 2005) Nobody is in Charge of Globalism
Globalization hinges on the classical liberal
concept of the “self-regulating market”. According to Rebert Hormats (1998) vice chairman of Goldman Sachs International, the great beauty of globalization is that no one is in control. The great beauty of globalization is not controlled by any individual, any government, any institution (Steger, 2005). Globalization benefits everyone in the long run.
This lies at the heart of market globalism
which is unpacked on in material terms such as economic growth and prosperity. In terms of the globalism concept, it taps not only liberalism progressive worldview, but also draws on the powerful socialist vision of establishing economic paradise on earth (Steger, 2005). Globalization Furthers the Spread of Democracy in the World
This links ‘globalization’ and ‘markets”
to the concept of democracy which plays a significant role in liberalism , conservatism, and socialism. Globalist tend to treat freedom, free markets, free trade and democracy as synonymous terms. According to Francis Fukuyama (2000) ‘ there exist a clear correlation between country’s level of economic development and successful democracy”. Though it is true that globalization and capital development do not automatically create democracies, Fukuyama believe that the “level of economic development resulting from globalization is conducive to the creation of complex civil societies with a powerful middle class which facilitates democracy”. (Steger, 2005:32) CHARACTERISTICS/FEATURES OF GLOBALIZATION An increase in imports and exports Growing importance on MNCs Increased foreign investments Increased movement of labour Increase in capital transfers across national borders Globalization of technology Increased in tourism Global interdependence ELEMENTS OF GLOBALIZATION A. GLOBALIZATION OF MARKETS
-refers to the merging of historically
distinct and separate national markets into one huge global marketplace (Ex: same products offering worldwide like McDonald’s, Starbucks, Cars, Computer software) B. GLOBALIZATION OF PRODUCTION
-outsourcing (hiring other
companies to do some of their work) of productive activities to different suppliers results in the creation of products that are global in nature C. FALLING BARRIERS TO TRADE AND INVESTMENT
-A government imposed restriction on the free
international exchange of goods or services.
Trade barriers are generally classified as:
a. import policies reflected in tariffs and other
import charges, quotas, import licensing, customs practices, b. standards, testing, labeling, and various types of certification c. direct procurement by government d. subsidies for local exporters e. lack of copyright protection f. restrictions on franchising, licensing, technology transfer g. restrictions on foreign direct investment D. TECHNOLOGICAL INNOVATION
-technological changes have
achieved advances in communication, information processing, and transportation technology, including the internet MAJOR TYPES OF GLOBALIZATION Economic Cultural Political Financial Technological Ecological sociological WHAT ARE THE PROS OF GLOBALIZATION? IT ENCOURAGES FREE TRADE. Without borders in place, consumers can purchase items from anywhere in the world at a reduced cost. There would be fewer barriers in place, like tariffs, sales taxes, or subsidies because there wouldn’t be nations in place that could add restrictions. That goes away with true globalization, which means free trade will be encouraged. MORE TRADE MEANS THE POTENTIAL FOR MORE JOBS.
When there are fewer barriers in place to
purchase items, then consumers will generally purchase more things. This creates the foundation that businesses need to create more jobs. Globalization with free trade increases competition as well, which means innovation must be part of the equation. Consumers benefit from that innovation with lower pricing, which means more products can be purchased, and that can stimulate further growth. IT ELIMINATES CURRENCY MANIPULATION.
With globalization, countries no
longer have a need to manipulate their currencies to obtain price advantages, so it is the consumer who can benefit from the outcome. OPEN BORDERS MEAN MORE OPPORTUNITIES TO DEVELOP POOR AREAS OF THE WORLD.
Through the process of globalization,
the removal of borders allows the people in these areas to experience greater prosperity because each area gains the ability to access what they need. BUSINESS TAX HAVENS GO AWAY IN GLOBALIZATION.
Through the process of globalization,
the tax havens go away because the borders go away. IT ALLOWS FOR OPEN LINES OF COMMUNICATION.
When borders are removed, people have
the ability to communicate with one another more freely. There is a greater intermingling of cultures, which allows people to have a greater perspective about the world. When we have access to more information, we have an ability to make better decisions. IT COULD STOP THE ISSUE OF LABOR EXPLOITATION.
One of the ways that goods are produced
cheaply in the world today is because of labor exploitation. This can be seen with child labor, prisoner labor, and human trafficking. Workers are further exploited through the implementation of unsafe working conditions because they may have entered a country illegally and face jail time or worse if they report on their conditions. By opening borders, it becomes possible to open business activities, thereby removing the need of a black market for cheap goods or services. IT LIMITS THE POTENTIAL FOR ABUSE BECAUSE THERE ARE FEWER STRUCTURES IN PLACE. The levels of accountability that can be in place to stop these abuses are usually implemented at the leisure of those who are in charge. That is how dictators can come into power and then stay in power. Globalization limits those structures and introduces a global system of accountability, creating a safety net which could potentially stop violent conflicts before they start. CONS OF GLOBALIZATION IT GENERALLY MAKES THE RICH BECOME RICH AND THE POOR TO BECOME MIRED IN POVERTY. Globalization is supposed to be about free trade, but the reality of the situation is that only true globalization which removes national borders can do this. Under our current planetary structure, there are value-added taxes that can exceed 20% for some countries, which limits the access that people have to imported products. This means the rich can access what they want or need to become richer, but the poor get trapped in poverty because they don’t have the means to access success. JOBS GET TRANSFERRED TO LOWER- COST AREAS.
Jobs can be created through globalism, but
they tend to be created in the areas where labor costs are the cheapest. Even in a world that is completely without borders, the cost of doing business is going to be cheaper in some areas than in others. Businesses will transfer or create jobs in these low-cost areas so they can remain competitive. GLOBALISM CREATES A CULTURE OF FEAR.
Business owners can hold the threat of doing
exported jobs to cheaper areas over the heads of their current workers to gain salary concessions. It creates an environment where workers, especially those who would be in the current Middle Class around the world, would be unable to have any leverage when it came to their take-home pay or working conditions. People would be forced to either freelance their skills, create their own business, or accept the race to the bottom of the pay scale to keep their employment. IT CREATES A POLITICAL SYSTEM WHERE THE BIGGEST AND THE RICHEST HAVE INFLUENCE.
In many developed countries today, there are
large companies, lobbyists, and wealthy individuals who are highly involved in politics so that they can have a favorable set of regulations and laws. If national borders were to disappear, this issue would become a global problem. The largest businesses and wealthiest people could hoard global resources for themselves through whatever government was put into place, enhancing the social inequalities that are already being seen on smaller scales. RICHER REGIONS WILL ALWAYS CONSUME MORE RESOURCES.
Regions that are wealthy will also
consume more resources under the guise that they produce more for the rest of the world. DISEASES TRAVEL FASTER IN A WORLD THAT IS GLOBALIZED.
When people stay within their own regions,
there are fewer problems with communicable diseases. The open access that we have today already increases the threat of a new disease being spread to all corners of the planet in less than 14 days. If there were no borders and people could travel freely to wherever they wished to go, this issue would cause even the most remote parts of the planet to be exposed to potentially deadly health concerns. IT COULD LEAD TO GREATER WORKER EXPLOITATION.
If there is a race to the bottom for
worker wages globally, then there would be nothing to stop organizations from exploiting workers so that goods could be created cheaply. Households in such a scenario would be earning less, so they’d be demanding lower prices. IT WON’T BE A LEVEL PLAYING FIELD FOR EVERYONE WHEN IT HAPPENS.
The countries of the world which currently
have the most input on global affairs would be the loudest voices at the negotiation table. The smallest countries that exist today would likely struggle to even get a seat at that table. This means going borderless would create an uneven playing field that might eliminate nations, but would still create pockets of people who are more privileged than others. NEGATIVE IMPACT ON THE ENVIRONMENT.
The globalization negative impact can be seen
in two different scenarios. Let’s say that production levels increase because everyone sees a boost in their economic circumstances. This would potentially increase pollution levels that could acidify the air, the ocean, and cause more issues with global warming. Or we could say that fewer people are buying things because their economic circumstances have worsened due to lower job salaries. LOSING BORDERS COULD MEAN LOSING AN IDENTITY.
We often identify ourselves from our
nationality, ethnicity, and family background. In a world that goes borderless, that nationality would merge into a person’s ethnicity, which would mean large swaths of culture would lose their identity and a loss of that culture would be a great loss for humanity. THERE’S A REASON WHY WE SAY THAT “ABSOLUTE POWER CORRUPTS ABSOLUTELY.” (LORD ACTON)
When only one person holds all the power over
a governing body, then it corrupts them. There are numerous examples of this. Roman emperors even declared themselves to be gods. Imagine what having one person in control of the entire planet and its unlimited power would be like using our examples from history, especially if that person had some talent or skill that made them seem almost supernatural. ECONOMIC GLOBALIZATION “economic globalization” as a historical process representing the result of human innovation and technological progress. It is characterized by increasing integration of economies around the world through the movement of goods, services, and capital across borders. (PROS) Cheaper prices for products and services (more optimized supply chains) Better availability of products and services Easier access to capital and commodities Increased competition which results to decrease in prices of goods and services Producers and retailers can diversify their markets and contribute to economic growth Better communication and transportation Reduction in cultural barriers IT PROMOTES LOCAL GROWTH BY STIMULATING OVERALL GROWTH.
The theory of trickle down economics
works if it is implemented properly. That’s because it is all about spending. Multinational businesses spend through national businesses. National businesses spend through local businesses. Local businesses provide jobs and dollars to their community. If a business hoards their cash, the whole system comes tumbling down, but the theory is good on the whole. IT WOULD CREATE HIGHER LEVELS OF MUTUAL TRUST.
The only way business opportunities can
grow is if different people are able to trust one another. Different corners of the world have different opinions as to what equates to right or wrong. By working together and learning from the different opinions that people have, the colonial aspects of a growing business empire can be reduced because people will be working with other people to lift each other up. A GLOBAL COMMUNITY REQUIRES A GLOBAL ECONOMY.
Goods and services are already being
purchased from a global perspective. This means that someone with a home computer and a broadband hook-up can be just as competitive as the large multinational corporation when it comes to the initial first impression. IT GIVES UNDEVELOPED COUNTRIES A CHANCE TO JOIN THE DEVELOPED WORLD.
Many countries are struggling to keep pace
with the global changes and economic globalization would undoubtedly bring about a new wave of outsourcing, bringing in new revenues to nations that could use a burst of cash to work on their infrastructure and other internal needs NEW INNOVATIONS WOULD CREATE NEW TECHNOLOGIES IN A NUMBER OF FIELDS.
Whenever innovation happens, new
technologies in a number of different fields happen as well. The end result is a better standard of living for everyone involved with the development process. (CONS): Some countries struggle to compete Extractive behavior of some foreign companies and investors in resource-rich countries preventing economic diversification Strong bargaining power of multinational companies vis-à-vis local governments “Contagion effect” is more likely in times of crises Problems of “social dumping” IT REMOVES THE EMPHASIS OF LOCAL CULTURES.
There is no doubt that the American
business revolution is taking over the lead role on economic globalization. There are other multinational companies that exist to dominate the business world. This means as globalization continues, the emphasis on local culture will be extinguished. IT ENCOURAGES THE DEVELOPMENT AND SPREADING OF DISEASE.
Having a globalized economy means
that there will be more people travelling internationally than ever before. With more people doing this, more diseases are going to spread into places of the world where they generally aren’t seen today. MOST OF THE WORLD GETS IGNORED IN ECONOMIC GLOBALIZATION.
The richest 20% of the world is believe to
consume about 85% of the world’s total resources. That means as the world grows smaller, the undeveloped world is just going to be left behind. Poor nations when combined only get 15% of current resources as it is and as business opportunities take on a global calling, that inequality is likely to continue growing over time. CULTURAL GLOBALIZATION Cultural globalization refers to the dynamic process of interconnection and assimilation of cultures, from which a homogeneous and common culture is generated in the world. It refers to the process of transmission of values, ideas, cultural and artistic expressions. In the era of the Internet and fast communications people can interact more easily with each other. Multiculturalism and cosmopolitanism are to some extent manifestations of cultural globalization. Communities are less insulated than ever in history, even those who cannot travel can have today a good understanding of other cultures and meet virtually people from other parts of the world. People change their views and lifestyle influenced by global cultural and consumption trends. (PROS): Access to new cultural products (art, entertainment, education) Better understanding of foreign values and attitudes. Less stereotyping and fewer misconceptions about other people and cultures Instant access to information from anywhere in the world Capacity to communicate and defend one’s values and ideals globally Customisation or adaptation of global cultural trends to local environment (“mestisage”) Below are the main consequences and changes caused by cultural globalization. From a set of heterogeneous cultures, a homogeneous culture has been generated that encompasses general customs recognized by individuals. Cultural, social and political values in defense of human rights have been redefined. Global interconnections have allowed us to know the great cultural diversity that exists. Every day there are more societies that, however different, share more things in common for globalization. People care about learning the most spoken languages in order to expand their knowledge and development possibilities. The media and audiovisuals have promoted, in various ways, the development of cultural globalization by imposing brands, trends, linguistic expressions, among others, which are recognized by a large number of individuals. Cultural exchange and multiculturalism is increased. Cultural globalization has been a phenomenon that has united millions of people. (CONS): Spread of commodity-based consumer culture Dangers of cultural homogenization Westernization, cultural imperialism or cultural colonialism Some small cultures may lose their distinct features Dangerous or violent ideals can also spread faster (note the international character of the terror group IS) Cultural globalization is a phenomenon that has regularized and standardized cultural expressions. The cultures of regions or towns with fewer people have been influenced by the cultures of larger or more influential regions or countries, leaving aside their own identity. Some customs or cultural traditions that have been displaced by others of greater influence are in danger of loss or forgetfulness. Cultural diversity is reduced by generating a popular culture. The customs of the most developed and influential countries in the world are imposed on less developed countries . Cultural globalization is a dynamic phenomenon that is generated from commercial, political and social exchanges, so it is difficult for culture not to be affected and modified. Cultural globalization can lead to the loss of the sovereignty of a nation. The consumption of major brands takes precedence over the consumption and promotion of what is done and represents the culture of a country or region. POLITICAL GLOBALIZATION The political dimension is a newer feature of the globalization debate, as over the last 30 years there has been a rise in the influence and power of international and regional institutions such as the European Union (EU), Organization for Economic Cooperation and Development (OECD), the United Nations (UN), the World Trade Organization (WTO), and the Association for Southeast Asian Nations (ASEAN). These international and supranational actors increasingly shape domestic politics. (PROS): Access to international aid and financial support It contributes to world peace. It reduces risk of invasions, more checks on big powers and limitation on nationalism International organizations are often committed to spread values like freedom and to fight abuses within countries Smaller countries can work together and gain more influence internationally Governments can learn from each other (CONS): State sovereignty is reduced The functioning of international and supranational organizations is often not “democratic” in terms of representation and accountability Big countries can shape decisions in supranational organizations Sometimes countries can veto decisions and slow down decision making processes Coordination is difficult and expensive FINANCIAL GLOBALIZATION (PROS) Due to the interconnectedness of the world markets, a given country’s market will gain a “deeper degree of financial integration” (Schmukler, 2004). This translates to further market stability and regulation, strengthening investors’ trust in a given country’s market. Financial globalization also bares benefits to investors. For example, it does promote for a “better financial infrastructure” (Schmukler, 2004). As a result, lenders and borrowers operate in a financial system that is more “transparent, competitive, and efficient” (Schmukler, 2004). CONS if a problem occurred in one part of the globe, it would “cascade [and echo] uncontrollably” (Beinhocker et al., 2009) in other corners of the world. TECHNOLOGICAL GLOBALIZATION PROS TECHNOLOGY GIVES US ACCESS TO MORE INFORMATION.
The Internet might be the most significant
social village that humanity has created in history. It is an informational resource that allows us to experience different perspectives, ideas, and cultures from all over the world. YOU CAN SAVE TIME BY USING TECHNOLOGY.
the development of technology, you
can take a trip anywhere and know exactly where to go with line-by-line directions. TECHNOLOGY GIVES US MORE MOBILITY OPTIONS.
Can you imagine what life was like when the
best technology to help with your travel experience was a good pair of shoes? Forget about bicycles and cars when thinking about mobility and technology. In less than a single day, you can hop onto an airplane and travel to almost any point in the world. You can travel thousands of miles across the ocean with a high safety level to visit your favorite countries. WE CAN COMMUNICATE MORE EFFICIENTLY BECAUSE OF TECHNOLOGY. TECHNOLOGY CAN MAKE THINGS CHEAPER. One of the primary advantages that technology provides everyone, everywhere is the fact that it is always looking for a best cost efficiency. We use these processes to make more items or provide additional services while saving time during the creation process. By operating on an economy of scale, it becomes possible to increase the living standards for everyone around the world while maintain an affordable cost profile. Competition can even create lower prices as organizations work to compete with one another over a specific set of customers. IT INSPIRES US TO BECOME INNOVATORS.
Digitization has come to many
industries because of the emphasis on technology. (e.g. GMO) TECHNOLOGY LETS US MANAGE OUR MONEY BETTER. The world is slowly becoming a cashless society thanks to what technology can bring to the table, but let’s not forget that paper money was once cutting-edge tech too. Instead of waiting at the bank to pay a bill or sending a check in the mail, you can just hop online to a specific website to send money instantly. DEVELOPMENT OF BETTER LEARNING METHODS BECAUSE OF TECHNOLOGY.
Software, gadgets, and even pencils
are all technology options that make it easier to learn new skills. It is possible to integrate numerous tools into the modern classroom to facilitate the learning process TECHNOLOGY LETS US FOCUS ON THE ABILITY INSTEAD OF THE DISABILITY.
One of Helen Keller’s most famous quotes
is this: “The best and most beautiful things in the world cannot be seen or even touched – they must be felt with the heart.” Keller made history by becoming the first person who was deaf and blind to earn an undergraduate degree. She is known for her ability to overcome her disability through her personal desire to succeed. CONS
TECHNOLOGY CREATES DEPENDENCIES.
The evolution of technology in our world today has created a dependence on our devices, tools, and processes. There is no longer a need to think or recall information because everything is immediately available to us in a giant database. Even a small tool, like a calculator, reduces the need to perform mental calculations or know how to do mathematics because you can solve equations by punching them into the device. LAWS MUST BE IN PLACED TO PROTECT INDIVIDUAL FREEDOMS.
There are some technologies that we can
all use to benefit our lives, our families, and our communities. You can surf the Internet to find a recipe, investment strategy, or educational philosophy to follow. Most people don’t need supervision to mow their lawn or plant a garden. These processes give us a lot of individual freedoms that were not always available in the past. TECHNOLOGY REDUCES HUMAN EFFORT.
You’ve probably heard someone say the
phrase, “We need to work smarter, not harder.” Most technological discoveries work to reduce the amount of effort that we need to use to create a result. The implication here is simple: machines can do the heavy lifting for us. When there is less work for people to do, then it means humanity is slowly making itself obsolete. Automated processes make jobs redundant, so the new employment fields will be in programming, coding, and similar support services. WE DON’T ALWAYS UNDERSTAND HOW TECHNOLOGY WORKS FOR US.
Imagine if your computer broke down right
now. What could you do to fix the problem? Will you need to fix one of the circuits inside of the device, or is there a software coding bug that you need to manage? The problem with technology today for the average person is that there is no longer an understanding of how the tools operate. Even if you want to fix a car, you need to deal with more electronics than the mechanical issues that may be present. TECHNOLOGY CREATES A SOCIAL DISCONNECT.
People are socializing with each other
through digital means instead of face-to- face opportunities. Even though there is a certain satisfaction that comes from these interactions, digital-only relationships can also create intense feelings of isolation, loneliness, and disconnect. Taking away our ability to be physically social (even if that doesn’t mean intimacy) can be problematic for an individual’s mental health. THERE IS MORE OF A STRUGGLE TO DISCONNECT FROM WORK BECAUSE OF TECHNOLOGY.
There are hundreds of emails that come
through each week, demanding your personal attention. You probably receive a handful of voicemail messages and phone calls that require some juggling to fit them into your schedule. There are text messages from co- workers, supervisors, and clients that want an immediate response. The reality of technology today is that it is almost impossible to escape from work unless you are willing to disconnect from many of the tools that you use all of the time. TECHNOLOGY CAN MANIPULATE INFORMATION TO SUIT PERSONAL NEEDS.
Deep fake videos are becoming more
prevalent today thanks to technologies that make it seem like video content is real when it is not. Photographs and audio recordings are easy enough to edit as well, which means the data we collect is easy to manipulate. If we are unwilling to verify the authenticity of the information we access, then it is very easy to spread false information to others, creating an alternative set of facts. IT BECOMES MUCH EASIER TO COPY OR PLAGIARIZE INFORMATION.
Digital content is remarkably easy to
reproduce. You can even make it seem like it is an authentic piece of information by rewriting a few lines of an article or changing the positioning of paragraphs. Copyright laws are becoming very challenging to enforce because music and movie files are so easy to transfer on peer- to-peer sites. Even when watchdog groups search daily for people who are illegally sharing this information, they can start a new account to do it again once their old one gets shut down. TECHNOLOGY CAN BE ADDICTIVE.