CHAPTER 1: THE CONCEPT OF

GLOBALIZATION
Cecilia N. Padilla
Learning Objectives:
After studying this chapter, the student will be able to:
1. Understand the meaning of globalization.
2. Define Globalization as a theory and phenomenon.
3. Discuss the characteristics and qualities of globalization
as a phenomenon.
4. Analyze the different interpretations and concepts
globalization.
 INTRODUCTION:
GLOBALIZATION
• refers to a multidimensional set of social processes that
create, multiply, stretch, and intensify worldwide social
interdependencies and exchanges while at the same
fostering in people a growing awareness of deepening
connections between the local and the distant (McGrew,
2003).
• For Justine Rosenberg’s definition of globalization, he
argues that globalization as a phenomenon gave rise to
the interconnectedness of human society that replaced
the sovereign state system with multilateral system of
global governance. His definition centers on the process,
condition, time, and age of this condition.
 INTRODUCTION:
GLOBALIZATION
• From the lens of Ritzer (2008), he described this
phenomenon as the spread of worldwide practices,
relations, consciousness, and organization of social life.
The interconnectedness of social segments from macro
institutions to the smallest sectors of the world have
coincided the fabrics of globalization.

• Globalization simply puts it as a social process of

reshaping and remaking the world order.
 GLOBALIZATION

• According to WHO, globalization can be

defined as “the increased interconnectedness
and interdependence of peoples and
countries.
 GLOBALIZATION

• It can also be understood in from two

interrelated perspectives.
1. The opening of international borders to
increase fast flows of goods, services,
finance, people and ideas.
2. The changes in institutions and policies at
national and international levels that
facilitate or promote such flaws.
 DRIVERS OF GLOBALIZATION

1. T E C H N O L O G I C A L
FORCES
• Technology shaped and set the
foundation for modern
globalization. Innovations in the
transportation technology
revolutionized the industry. ICT,
social media platforms
2. MARKET FORCES
• Are the factors that help to determine
the competitiveness of the
environment in which the firm
operates. Increasing income, global
trades, Global competetion
3. POLITICAL FORCES
• Reduced trade barriers, increasing
Liberalization of trade and capital markets
4. SOCIO-CULTURAL FACTORS
• Are the beliefs, customs and practices
within cultures and societies that
affect the thoughts, feeling and
behavior of its citizens.
Qualities and Characteristics of Globalization (Held &
McGrew, 2002)

1. Creation and Multiplication of social networks and

cultural activities which break the traditional norms
and practices in the political, economic, and cultural
realms of most communities.
2. Expansion and Stretching of social operations and
connections which is seen in the financial markets
and trading operations around the globe. (Examples:
World Trade Organization, ASEAN Economic
Community, World Economic Forum and European
Union)
Qualities and Characteristics of Globalization (Held &
McGrew, 2002)
3. Intensification and Acceleration of human activities
which describes the process of world and individual
connection works. Consumer markets and consumerism
continue to rule in this postmodern aera where the
farthest have the access to reach the central portion of
global events.
4. Consciousness and Awareness. People, as the
primary actors of globalization are the frontliners as
reflected in their experiences. The human consciousness
is critical on how they impact the growing outcomes and
markets of globalization.
Is Globalization the same as
Westernization?
NO. The concept of Westernization is deeply rooted in the
Western World where often associated with the Western culture and
values (Sairin, 2011). This concept is famously used in referring the
western value system and it influences countries outside its territory
and sovereignty.
The political, economic, and technological prowess of United
States and European countries are best described in the idea of
Westernization.
Theories of Globalization
1. Idealism - Idealism in general is the belief in a perfect system. In
globalization, idealism means creating a worldwide economy that
benefits all the peoples of the world.
2. Liberalism - sees the process of globalization as a market-led
extension of modernization. At the most elementary level, it is a
result of ‘natural’ human desires for economic welfare and political
liberty.
Theories of Globalization
3. Realism – The realist perspective explaining globalization focuses on the
shifting distribution of power among states (Walt, 1998 andSynder, 2004). They
explained that the core idea of dominating the world through the employment of
power.
-The main principles of realism are that states are the main actors on the
international stage and are led by humans who are naturally selfish and power-
hungry. Realists believe that globalization is not necessarily positive and can be
used by more powerful states to manipulate weaker states for their self-
interests.
Theories of Globalization
Realists argue that countries open their economies to the world is because of two
contending reasons:
1.Financial returns of expanding markets offer new economic opportunities to the
capitalist (origin country). (Examples: McDonald’s, Chevron, Ford, Coca-Cola,
Citibank, Microsoft, and H&M)
2.The continued centrality of political power and military strength are obvious
forces of interdependence and realistic behavior of the more and most powerful
countries.
MCDONALD’S THEORY

The globalization process of the company has been commonly

referred to as Mcdonaldization where the company has made its
mark on various societies around the world. According to Ritzer
(14) the globalization process of McDonald’s can be described
through the use of four key aspects which include
a. efficiency,
b. predictability,
c. calculability and
d. control through the use of technology and automated
machinery.
MCDONALD’S THEORY

These four aspects do not only affect the consumers and

employees of McDonald’s corporation but they also
affect the cultural societies in various parts of the world
that fall under McDonald’s operations. The first aspect
of the company’s globalization effort which is
efficiency has allowed the company to achieve results
through the optimum utilization of its systems and
technology to produce results within the shortest period
of time.
MCDONALD’S THEORY

The aspect of calculability has been used by the

corporation in its globalization process to place
emphasis on the aspect of quantity over quality. The
globalized system of McDonald’s has seen quantity
becoming equivalent to quality with regards to the type
of food being offered in its various world wide outlets.
This dimension allows the company’s customers to
calculate the amount of time it will take to go to a
McDonald’s chain and order for a meal when compared
to going to a grocery store (Ritzer 14).
MCDONALD’S THEORY

The third aspect of the company’s globalization

process deals with predictability where the company
offers products that are similar in taste, quantity,
appearance and quality to those that are found in other
world wide chains. Predictability which goes hand in
hand with standardization has ensured that McDonald’s
has continued to be successful in the fast food industry.
MCDONALD’S THEORY

The uniformity in the company’s products has ensured

that McDonald’s continues to offer a standard menu in
all of its global markets around the world ensuring that
the customer’s demand for the same product has been
met at the various locations of the company’s
establishments. The fourth aspect of the company’s
globalization process deals with control where the
McDonald’s customer is given the opportunity to
perform some of the service functions for themselves.
MCDONALD’S THEORY

McDonald’s has been one of the pioneers of self service

within the fast food restaurant where customers order
for their own food, take it to the table and clear out the
table once they are finished. Control allows the
customers to do most of the tasks themselves without
having to involve waiters or busboys (Ritzer 16).