UNIT 2: THE THEORIES

OF GLOBALIZATION
 THE WORLD SYSTEM THEORY
The World Systems Theory suggests that
wealthy countries benefit from other
countries and exploit those countries'
citizens. This model recognizes the minimal
benefits that are enjoyed by low status
countries in the world system. The theory
originated with sociologist Immanuel
Wallerstein, who suggested that the way a
country is integrated into the capitalist world
Wallerstein’s World System Theory
Model system determines how economic
development takes place in that country.
 Core countries (e.g., U.S., Japan, Germany) are dominant, capitalist
countries characterized by high levels of industrialization and
urbanization. Core countries are capital intensive, have high wages and
high technology production patterns and lower amounts of labor
exploitation and coercion.
 Semiperipheral countries (e.g., South Korea, Taiwan, Mexico, Brazil,
India, Nigeria, South Africa) are less developed than core nations but
more developed than peripheral nations. They are the weaker members
of "advanced" regions or the leading members of former colonial ones.
 Peripheral countries (e.g., most African countries and low income
countries in South America) are dependent on core countries for capital
and are less industrialized and urbanized. Peripheral countries are
usually agrarian, have low literacy rates and lack consistent Internet
access.
Tariff is introduced globally to facilitate the smooth flow of
products from one country to another. However, as the imported
products enjoy low taxes, they compete with the products
produced locally.
 THE GLOBAL VILLAGE THEORY
The late Marshall McLuhan, a media and
communication theorist, coined the term “global
village” in 1964 to describe the phenomenon of the
world’s culture shrinking and expanding at the same
time due to pervasive technological advances that
allow for instantaneous sharing of culture.
McLuhan’s insights were revolutionary at the time, and fundamentally
changed how everyone has thought about media, technology, and
communications ever since. McLuhan chose the insightful phrase
"global village" to highlight his observation that an electronic nervous
system (the media) was rapidly integrating the planet -- events in one
part of the world could be experienced from other parts in realtime,
which is what human experience was like when we lived in small village

McLuhan's second best known insight is summarized in the expression

"the medium is the message", which means that the qualities of a
medium have as much effect as the information it transmits. The
effectiveness of the message lies in its purpose and the appropriate
channel that we used.