GLOBALIZATION

GLOBALIZATION
Definition:
An economic phenomenon?
A social phenomenon?
A cultural phenomenon?

The movement towards the expansion of

economic and social ties between
countries through the spread of corporate
institutions and the capitalist philosophy
that leads to the shrinking of the world in
economic terms.
 WHAT IS GLOBALIZTION?
• ACTIVATING YOUR COMMITMENTS

• CONNECTING ACROSS DIFFERENT

COUNTRIES

• FORGING NEW RELATIONSHIPS

• SPREAD AND CONNECTEDNESS OF

PRODUCTION, COMMUNICATION, AND
TECHNOLOGIES ACROSS THE WORLD
GLOBALIZATION
 FORCES/ DRIVERS OF GLOBALIZATION

1. ECONOMIC
2. TECHNOLOGY
3. CULTURE
4. POLITICS/MILITARY
5. INDIVIDUALS/PEOPLE/INSTITUTIONS
6. ENVIRONMENT

THESE ASPECTS ARE ALL INTERCONNECTED!

Forces and Drivers of
Globalization
 1. ECONOMIC GLOBALIZATION
Integration of Economies

 The increasing reliance of economies on each other

 The opportunities to be able to buy and sell in any country in
the world
 The opportunities for labour and capital to locate anywhere
in the world
 The growth of global markets in finance
 Economic Globalization
Integration of Economies
 Made possible by:
– Technology
– Communication networks
– Internet access
– Growth of economic cooperation – trading blocs
(EU, ASEAN, etc.)
– Collapse of ‘communism’
– Movement to free trade
 ECONOMIC GLOBALIZATION
MULTI-NATIONAL
CORPORATIONS
 OLD: Dutch East India
Company?
 1602 company of Dutch
merchants & independent
trading companies
 Spice trade monopoly in
East Asia
 Power to colonize
territories & enslave
indigenous people
 Indonesia & South Africa
ECONOMIC GLOBALIZATION

 Benefits of Trade:

– Increased choice
– Greater potential for growth
– Increase international economies of scale
– Greater employment opportunities
 ECONOMIC GLOBALIZATION

 Disadvantages of trade:
– Increase in gap between the rich and the poor
– Dominance of global trade by the rich, northern
hemisphere countries
– Lack of opportunities for the poor to be able to
have access to markets
– Exploitation of workers and growers
 ECONOMIC GLOBALIZATION

Corporate Expansion
Multi-national
or trans-national corporations (MNCs or TNCs) –
businesses with
a headquarters
in one country but with business operations in a
number of others
 ECONOMIC GLOBALIZATION
 Corporate Expansion
 Characteristics:
– Expanding revenue
– Lowering costs
– Sourcing raw materials
– Controlling key supplies
– Control of processing
– Global economies of scale
 ECONOMIC GLOBALIZATION
 Corporate Domination
 Key Issues:
– Damage to the environment?
– Exploitation of labour?
– Monopoly power
– Economic degradation
– Non-renewable resources
– Damage to cultures
 ECONOMIC GLOBALIZATION
 Other Issues:
 Accountability of Global businesses?
 Increased gap between rich and poor fuels
potential terrorist reaction
 Ethical responsibility of business?
 Efforts to remove trade barriers
 2. TECHNOLOGICAL
GLOBALIZATION
• “World Wide Web” has
exploded in last 10 years

• Computers can move money

around world = “finance
capital”

 Silicon Valley is 9th largest

economy in world!
3. CULTURAL GLOBALIZATION

 Cultural Imperialism = Dominance of one

culture over others
 Hollywood movies, MacDonald’s,
Disneyland, Starbucks
 Dominance of the English language and
invasion of other languages
 Do people all over the world have the
same taste?
 4. POLITICAL GLOBALIZATION
The United Nations: Global assoc. of
govts. facilitating cooperation in
international law, security, economic
development, and social equity

• Whose interests does the UN represent?

 The US and the UK were the only nations
in support of going to war in Iraq
 Can a global politics with social values
exist?
 5. MILITARY
GLOBALIZATION
Nuclear Bombs F/A-22 Raptor
 MILITARY
GLOBALIZATION
Smart Bombs Sidewinder Missiles
 MILITARY GLOBALIZATION
 Global alliances become clear during war time
 Ex: Today’s US alliance with Britain in wars
against Afghanistan and Iraq
 What will happen with North Korea and nuclear
weapons?
 US is the #1 exporter of weapons globally
 US is the last on the list of exporters of non-
military aid to the developing world
 DEFINITION
 Globalization refers to a multidimensional
set of social processes that create, multiply,
stretch, and intensify worldwide social
interdependencies and exchanges while at
the same time fostering in people a growing
awareness of deepening connections
between the local and the distant.
 Qualities and Characteristics of
Globalization
 Creation and Multiplication
- of social networks and cultural activities
 Expansion and Stretching
- Of social operations and connections
reflected on how the financial markets and
trading operate around the Globe
 Qualities and Characteristics of
Globalization
 Intensification and Acceleration
- of human activities like the rise of
Consumerism
 Consciousness and Awareness
-Human daily actions as reflected in their
experiences
Globalization and Westernization
 Westernization – adaptation of western
culture and values
 Refers to the western value system as it
influences countries outside of US and
Europe.
 THEORIES ON
GLOBALIZATION
 1. Realism- employment of power in world
domination,
market control- financial profits, manpower;
Political – military and territory
Technology – logistics and systems
Here globalization is related to
Americanization and westernization
 THEORIES ON
GLOBALIZATION
 2. Liberalism- forging of relationships and
negotiations
>spread of democratic institutions
 Global economic ties,
 International Organization (UN, ASEAN)
 THEORIES ON
GLOBALIZATION
 3. Idealism-use of ethical and legal
standards (appropriateness and
transparency)
Keypoints in the Development of
Globalization
 Phase 1, 1800’s - development to of
international networks like the anti slavery
convention, Red Cross, WW1, World Fairs
( period of mercantilism)
 Phase 2, 1950’s- WW 2, League of Nations,
United Nations (devt of Global market)
 Phase 3, 2000’s –Use of technology and
internet (information age)
 Dimensions of Globalization
 1. World Capitalist Economy
 2. Nation –state system
 3. World military
 Three Worlds
 1. First world Countries –high income, high
standard of living, modern infrastructures
aligned with US
 2. Second World Countries – Eastern bloc
aligned with USSR
 3. Third World – Neutral and non aligned
countries not economically developed
 DEBATES
1. Is globalization new or old?

2. Is globalization good or bad?

3. Is globalization really “global” or

inclusive of all people?