Causes and Effects of Globalization

Study Notes

Improved communication technologies enhance global connectivity.
Advanced transportation systems facilitate the movement of goods and people.
Free trade agreements promote international trade without tariffs.
Global banking systems enable financial transactions and investments across nations.
Growth of multinational corporations (MNCs) drives economic expansion globally.

Changes in food supply chains affect local and global food systems.
Division of labor optimizes productivity and efficiency across countries.
Job security diminishes as companies relocate and restructure.
Environmental damage intensifies due to increased industrial activity.
Cultural impacts relate to the spread of global norms and practices.
Rising anti-globalization protests highlight concerns over equity and sovereignty.

Positive:
- Increased economic development improves national wealth.
- Expanded infrastructure supports connectivity and growth.
- Modern management techniques enhance efficiency.
- Greater interdependence can stabilize relationships among nations.
Negative:
- MNCs gain significant power, often influencing local politics.
- Externalization of costs harms host countries’ economies and environments.
- Overcompetition may lead to excessive concessions from governments.
- Pressure to reduce social benefits to attract foreign investment.

Positive:
- Increased job opportunities emerge from global markets.
- Education systems upgrade to meet international standards.
- Greater training initiatives improve workforce skills.
Negative:
- Job displacement occurs in industries that cannot compete globally.
- Economic groups may suffer from the loss of traditional industries.
- Labor standards decline as companies seek cost reductions.
- Wage pressures lower earnings for workers and decrease union power.
- The social contract between employers and employees weakens.

Greater demand for promotion of local businesses internationally drives globalization.
Business owners often travel abroad to enhance their market reach.

Addressing contemporary global challenges requires interdisciplinary collaboration.
Forming harmonious global relationships is vital for effective solutions.
Knowledge of globalization’s impacts equips students for future collaborative efforts in various fields like business, education, health, and engineering.

Key perspectives include:
- Hyperglobalist Thesis
- Skeptics Thesis
- Transformationalist Thesis

Characterized by a new global age with intense interconnectedness.
Features include:
- Global capitalism, governance, and civil society on the rise.
- National governments experience declining power.
- Driving forces of globalization are primarily capitalism and technology.
- Patterns of stratification indicate the erosion of traditional hierarchies.
The argument suggests globalization transforms state power and global politics.

Examination of the new order post-Cold War reveals unique contemporary elements.
Globalization significantly affects the dynamics and structure of this emerging order.