Name: Shivangi Jaiswal

Tutorial group: Group J

Exam Roll No:19241774099
Subject: International Business
Semester: II (M.Com Section B)

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Globalisation

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Emergence and Concept

• The pressures of de-regulation have forced the nation-states to give up protective

barriers on a large scale to provide the underlying economy with sufficiently large
markets
• Globalization is essentially a spatial concept. It presumes with itself boundaries, i.e.,
geographical – regional or national boundaries
• In globalization, the restrictions of boundaries are attenuated
• De-territorialization refers to a far reaching change in the nature of economic, socio-
cultural and political spaces
• Further, the proliferation and spread of superterritorial, or what we can alternatively
term trans-world or trans-border connections brings an end to what could be called as
Territorialism

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Emergence and Concept (Cont.)

• Globalization overlaps to some degree with related ideas of integration,

interdependence, multilateralism, openness and interpenetration

• In an ideal sense, people from different countries with different cultural backgrounds
are connected with each other economically, socially and politically

• Globalization is about the intensification of worldwide socio-politico-economic

relations which link distant localities in such a way that local happenings are shaped
by events occurring many miles away and vice versa

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Drivers of Globalisation

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Drivers of Globalisation : Market Drivers

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Drivers of Globalisation : Market Drivers

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Drivers of Globalisation : Market Drivers

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Drivers of Globalisation : Market Drivers

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Types / Dimensions / Manifestations
Economic Globalization :

• Economic Globalization is manifested in the emergence of international economic

institutions, global businesses, transnational companies and the emergence of
common markets around the world, growth of world trade as a proportion of
output, explosion of foreign direct investment (FDI), national markets becoming
increasingly integrated, goods which are increasingly standardized and invariant to
the location of production

• Today large companies are run no longer in a ‘national’ way, but are strongly
influenced by global management styles

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Types / Dimensions / Manifestations
Cultural Globalization :

• Globalization, in its fundamental sense, also means universalization of values. One of the
non-economic dimensions include ethical and cultural aspects which is termed as the
‘globalization of values’ and refers to the gradual spread of shared ethical principles as
manifested in declarations on human rights with a globalized conception of: civil and
political rights; economic, social and cultural rights

• Gradual emergence of Global civil society whose capacity for mobilization and the
exchange of information has multiplied by the new information and communication
technologies

• Cultural globalization constantly seeks to integrate local and national cultures with global
culture mainly dominated by the West. It becomes clear that the expansion of the capitalist
market hinges on the integration of local markets facilitated by the global transformation 11
of local cultures in terms of languages, food, clothing, and other aspects of life styles
Types / Dimensions / Manifestations
Political Globalization :

• Reordering of the nation-states in a manner that adheres to global integration. The

sovereignty of nation-states is expected to be subsequent to that of the global order.
A global state order is supposed to be the desired goal
• Marginalization of the nation-state is the biggest challenge in the process of
globalization of the world
• The globalization of the world is upheld in a complex system of global laws and
regulations
• Emergence of UNO and other institutions; the regulatory regimes of the IMF, World
Bank and other international finance institutions (IFIs), GATT and then WTO are fast
emerging as a new world government for enforcing uniform policies, obligations,
and conditionalities around the world
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Types / Dimensions / Manifestations
Geographical or Environmental Globalization :

• Global consciousness of unified geography in the name of economic development

and current development (infrastructure) and projects and policies, have brought
the tremendous loss of resources such as forest, land, money and government

• The Geographical or environmental dimension of globalization refers to the world

being a highly fragile ecological system

• An imbalance has caused effects on both local and global level. Acknowledgement
of natural resources in a country as global resources is expected

• Global warming will affect the world irrespective of the source. 13

Positive Consequences

• Diffusion of technology
• Perception of human right values such as equality, freedom, justice
• Enhanced standard of Living
• Relative affluence
• Enhanced opportunities
• Responsive welfare states
• Better institutional framework
• Global management practices
• Global approach towards national problems

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Negative Consequences

• Individualism
• Fast food culture
• Consumer culture – waste disposal, pollution
• New evils - crime, drugs, alienation, suicides
• Identity threats
• Economic Competition – monopolization, price war, trade wars
• Global risks – recession, pandemics, terrorism, energy wars
• Erosion of moral values

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Globalisation and Covid Crisis

• One of the first steps most governments took during the current crisis was to shut down
their borders
• ‘Nation first’ approach: Although all world leaders have acknowledged the global
imperative in dealing with the COVID, they have put their respective nations first. Are all
nations now for themselves?
• Sovereignty is certainly back. Solidarity is under stress, but not dead. The drift is
towards a middle path between extreme globalism and hyper-nationalism
• The last few decades have seen the growing awareness of ‘global problems’ like climate
change and the need for ‘global solutions’
• The covid pandemic certainly adds to that consciousness. But as in the case of climate
change, collective action is not easy to come by

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Globalisation and Covid Crisis (Cont.)

• US, Canada and Europe were outbidding each other in buying medical material from China. They
were ready to pay a hefty premium if Chinese suppliers break from an earlier commitment

• Nations banning medicines: Many nations had banned the export of much needed medicines
and equipment to combat the virus

• US, which initially criticized other countries for limiting exports of essential drugs, has had no
option but to go down that path as the toll from covid rose rapidly

• Many countries are likely to move to the diversification of external production, short supply
chains and stockpiles of essential materials to limit vulnerability during times of such potential
crisis 17
Arguments against Globalisation

• Globalization is asymmetrical: It favors developed countries in the form of trade

advantages, capital flows, controls, etc.

• The efficiency argument of the globalists has been countered in the West by many who say
societies are not merely economic units; they are also political and social communities

• While expansive globalization has helped generate super-profits for the capital, it has put
the working people at an increasing disadvantage in terms of symmetry

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Arguments against Globalisation
• The uneven distribution of the benefits from the dispersal of production and free
movement of labor is often one sided, putting developed countries at a disadvantage in
terms of labor movement. This has undermined political support for economic globalization
in the West

• Some countries are misusing global economic interdependence for unilateral political
advantage. Example: adamancy of China and there are strategic consequences to China’s
emergence as the world’s factory

• Local cultures need not to disappear, asymmetrical relations lead to cultural hegemony and
suppression of cultural experiences

• Globalization has not superseded national interests even for developed countries leading to 19
uncompetitive economic interests resulting into terrorism, cultural clashes etc.
Thank You !

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