Economic Globalization

• Globalization involves the spread of people, ideas, and goods, fostering interaction and integration among cultures, governments, and economies, driven by international trade, investment, and information technology. Globalization impacts the environment, culture, political and economic systems, and overall societal well-being.
• Manfred Steger defines globalization as the expansion and intensification of social relations and consciousness across "world-time and world-space."
• Expansion refers to the creation of new social networks and increasing existing connections.
• Intensification involves stretching and accelerating these social networks.
• Social relations include interactions between people, groups, or organizations that create a basis for exchanging feelings and ideas.
• Time and space are being compressed, making the world seem smaller as distances collapse due to technology.

Characteristics of Globalization

• Involves creating social networks that cross traditional boundaries.
• It's reflected in expanding and stretching social relations, activities, and connections.
• Involves the intensification and acceleration of social exchanges and activities.
• It involves objective and material levels along with subjective human consciousness.

Historical Periods of Globalization

• Prehistoric Period (10000 BCE-3500 BCE): characterized by geographically limited contacts among hunters and gatherers due to a lack of advanced technology.
• Pre-modern Period (3500 BCE-1500 CE): The invention of writing and the wheel significantly boosted globalization, improving the transportation of people, goods, and the spread of ideas.
• Early Modern Period (1500-1750): The European Enlightenment project, along with the rise of European centers and material accumulation, strengthened globalization and the capitalist world system.
• Modern Period (1750-1970): Innovations in technology, population growth, increased migration led to cultural exchanges, social transformations, and accelerated industrialization.
• Contemporary Period (from 1970 to present): Characterized by the rapid creation, expansion, and acceleration of global interdependencies.

Dimensions of Globalization

Economic Dimension

• Extensive development of economic relations through technology and capital flow, stimulating trade.
• Major global players include international corporations such as General Motors, Walmart, and Mitsubishi, as well as institutions like the IMF, WTO, and World Bank.

Political Dimension

• Refers to strengthened political interrelations.
• Involves issues like state sovereignty, the impact of intergovernmental bodies, and the future of global governance.

Cultural Dimension

• Increase in cultural flows
• Results in hybridization like visible in food, music, dance, film, fashion, and language.
• Media empires such as Yahoo, Google, Microsoft, and Disney facilitate cultural flows.

Religious Dimension

• A set of beliefs and practices
• A defining element of civilization and a central factor in global conflicts.

Ideological Dimensions

• A system of shared ideas and values used to legitimize political interests or defend power structures.

Arjun Appadurai's "Scapes"

• They describe different dimensions of integration:
• Ethnoscape: Movement of people like refugees or those seeking jobs or tourism.
• Technoscape: Technologies that speed up cross-border movements.
• Financescape: Movement of money across borders.
• Mediascape: Global reach of media
• Ideoscape: Spread of ideas, symbols, and narratives worldwide.

Miscellaneous

• Globalization is a process while globalism is ideology that gives meaning to globalization.
• Globalization enables global connections, while globalism is a belief that global economic integration benefits everyone.

Structures of Globalization

The Global Economy

Economic Globalization

• Increasing interdependence of world economies through cross-border trade, capital flow, and technology.
• The IMF defines economic globalization as an integration of economies through movement of goods, services, and capital, including labor and knowledge.
• Economic globalization turns the world economy into an organic system.

Two Major Driving Forces

• Information growth
• Marketization

Dimensions of Economic Globalization

• Trade of goods and services
• Financial and capital markets
• Technology and communication
• Production

International Monetary Systems (IMS)

• Systems for countries to trade.
• Helps reallocation
• Global network that determines exchange rates

Evolution of the International Monetary System

• 1870-1914 trade was without support.
• Gold standard functioned only with gold reserves.
• 1944 Bretton Woods created a new system.
• Since the US held most of the gold, nations valued currency with US dollars.
• The system ended in 1971.
• 1973 floating exchange rate system was developed.

European Monetary Integration

• Cooperation to reduce influence and create monetary union
• The (EMS) helped stabilize exchange rates.
• European Bank est. 1998, euro in 1999.
• EU had to provide aid due to crisis.

International Trade and Trade Policies

International Trade

• Exchange
• Affected
• It gives others opportunity to sell.

Two Key Concepts

• Comparative advantage
• Specialization

Types of Economies in International Trades

• Protectionism
• Trade liberalization

Types of Trade Policies

• National
• Bilateral
• International

Global Economy Outsourcing

• Finding a partner
• This contract does not do much

Three essentials

• Firms must search for partners with the expertise that allows them to perform the particular activities that are required.
• They must convince the potential suppliers to customize products for their own specificneeds.
• They must induce the necessary relationship-specific investments in an environment with contracting.

Possible Determinants of the Location of Outsourcing

• Size of the country can affect the thickness of its markets
• Technology affects the cost and likelihood of finding a partner.
• The technology for specializing components determines the willingness of a partner to undertake the needed investment
• The contracting environments can impact on a firm's ability to induce a partner to investin the relationship.

Structures of Globalization

Global Market Integration

Market Integration

• Market integration is how to trade
• Phenomenon of those goods will rise or decrease
• May see prices in patterns
• Change or shift in markets

Types of Market Integration

• Negative
• Positive

Global Corporation

• Buisness that operates in two or more countries.
• Expanding revenue

Foreign Direct Investment

• Made to control another company.
• Infulence over making descions

BRICS Economies

• Brazil, Russia, India, China, South Africa

• China and India become dominant suppliers.

• Brazil and Russia will become raw material suppliers.

• The Brics have lowest costs.

GENERAL AGREEMENT ON TRADE IN SERVICES (GATS)

• The GATT agreement came into force in 1995
• They have goals for countries.

Structures of Globalization

Global Interstate Systen

• Philosophers said states are govered and sovereign.

Nation and State

• Share the same ideas
• Piece of land with the country

Nation State

• Citizens identify

• They have equal concepts.

• Belief that globalization imposes to free states.

• Illustrates how the world works. There things will happen in Golden Straitjacket: the economy grows and politics shrinks.

NEOLIBERALISM AND ECONOMIC SOVEREIGNTY

Neoliberalism

• Ideology that emphasizes free market.
• Eliminating price controls

Economic Sovereignty

• Control of national government.

• Increases international integration.

• There are different concepts of Sovereignty

• Legal

• Westthialian

• Interdependence

• Domestic

• More international organizations restrict individual countries.

• The world banks are involved.

• Some can effect economic sovereignty. There are powers and states that still dictate.

EUROPEAN INTEGRATION

• Process
• EU

ECONOMIC INTEGRATION

• Countries strive to increase wellfare.

SEVEN STAGES

Preferential Trading Area (PTA)

• Agreement
• Bilateral

Trade areas FTA

• Two or more reduce trade.

Custom Union

• Common in accepting external tariff.
• Defined

Common Market

• Remove tariff
• Make it easy to be able to get to.

ECONOMIC UNION

• Policy with a single currency.

Economic and Monetary Union (EMU)

• Main step in integration

Complete Economic Union

• Free from money
• Involves legal integration.

POLITICAL INTEGRATION.

• To implement the powers of the system

THEORIES OF EUROPEAN INTEGRATION

Neo functionalism

• Integrating the dividual areas of policy.

• Explains euro integration. Logic of diversity to set limits.

• State-society relations.

• This helps give them what they need

NEW INITIONALISM

They have three strands: rational choice There is now authority.

TRANSNATIONAL ACTIVISM IN STATES

• Actors in more than one country.
• Organizations operates around the world.

SOCIAL MOVEMENT

• Challenges against a person.
• There is resistance.

GLOBAL JUSTICE MOVEMENT

• Trade rules for the global economics.

NEW TRANSNATIONAL ACTIVISIM

• Domestically rooted activists.

SOCIAL MEDIA AND TRATES

• Technology sharing of ideas.

SOCIAL MEDIA AND STATES

• Allow to have voices
• Communication often
• Make things better.

Structures of Globalization

Contempary GLOBAL GOVERNANCE

• Integration of countries.
• Problems get complex.

Two organization

• Universal organization limited.
• Institutions to mediate.

The UNITED NATIONS

26 agreed to fight axis.

• Unite to prevent world wars (1945).
• 50 countries to draw charter (26 June 1945).
• Joined UN on 24th 1945.

Purpose

• Keep peace.
• Cooperation.
• Between nations.

Main Organs

GENERAL ASSEMBLY (GA)

• Make decisions

SECURITY COUNCIL SC

• Keep peace around the world.

Economic and Social council (ECOSOC)

• Implement the economic issues.

INTERNATIONAL COURT OF JUSTICE

• Based in the Hague

SECRETARIAT

• Secretary-General

TRUSTEESHIP COUNCIL

• Help international relations.

CHALLENGES OF Global Governance

• Involve domestic/foreign challenges.
• Difficult to effect
• Tight on operation.

GLOBALIZATION'S IMPACT ON THE STATE

• Increase
• Make the world better
• World is facing tough times.
• Shape the activities.
• The government improves wellbeing
• State needed for justice.

This content covers economic globalization, its driving forces like marketization and decentralization, and the impact of Friedman's 'Golden Straitjacket' theory. It also explores neoliberalism and the influence of the 'Electronic Herd' on nation-state policies, and globalization's impact on national economic sovereignty.