Globalization and Industrial Revolutions

• Globalization involves increasing interconnectedness among countries through trade, technology, and cultural exchange.

History of Globalization

• Early trade routes, like the Silk Roads, connected East and West, with silk and spices being major traded goods
• European colonial expansion in the 16th century saw the spice trade dominating international commerce
• The Industrial Revolution, mass migration, as well as the expansion of global trade all occurred during the first wave of globalization in the 19th century

Industrial Revolution

• Steam engines, textile machines, and railroads were hallmarks of the First Industrial Revolution (1760-1840)
• Electricity, the assembly line, and mass production characterized the Second Industrial Revolution (late 19th to early 20th century)
• The Third Industrial Revolution (1960s) introduced the digital revolution, semiconductors, and the internet
• The Fourth Industrial Revolution involves AI, automation, and advanced robotics
• The rise of the digital economy, cyber threats, and climate change impacts are features of Globalization 4.0

Market Globalism

• Market globalism is a political ideology associating globalization with free market policies

Six Core Claims

• Globalization is about market liberalization
• Globalization is irreversible as well as inevitable
• Nobody controls globalization
• Globalization benefits everyone in the long run
• Globalization spreads democracy worldwide
• Globalization requires a war on terror

The Global Economy

• Economic globalization is the integration of economies through trade, investment, and finance

Key Elements

• International trade involves the exchange of goods and services across borders
• Protectionism uses tariffs, import quotas, and bans
• Free trade involves the reduction of barriers to encourage commerce
• Foreign direct investment (FDI) is investments by foreign businesses in another country
• Capital market flows involve the movement of money for investment across countries
• Migration (labor movement) benefits economies by supplying skilled labor but can cause brain drain
• The diffusion of technology involves the spread of innovations globally, which drives industrial growth

Market Integration

• Market integration involves the unification of markets allowing free movement of goods, services, and capital

Key Factors

• Economic globalization consists of trade, investment, and financial interdependence
• Trade liberalization involves the reduction of tariffs and trade barriers
• Financial integration refers to global capital markets enabling cross-border investments
• Technology and innovation includes transportation as well as communication advancements
• Regional economic integration refers to trade blocs like ASEAN, EU, and NAFTA

International Economic and Financial Institutions

• The World Bank supports infrastructure, poverty reduction, and economic development
• The World Bank has five branches, namely IBRD, IDA, IFC, MIGA, and ICSID
• The International Monetary Fund (IMF) promotes global monetary stability, provides financial aid, and monitors economies

IMF's Core Functions

• Surveillance for economic monitoring
• Lending financial assistance to countries in crisis
• Capacity development for economic policy training
• The World Trade Organization (WTO) regulates global trade, handles disputes, and ensures fair trade

WTO's Key Principles

• Most-Favored-Nation (MFN) which means equal treatment of trading partners
• National treatment which means equal treatment of domestic and foreign products

The Global Interstate System

• The global interstate system involves political and economic relations among sovereign states
• A nation-state refers to a political entity with defined borders, government, and sovereignty

The Westphalian System (1648) established key principles

• Absolute state sovereignty
• Non-interference in domestic affairs
• Equality of states
• States compete for economic influence because of globalization and the nation-state
• Intergovernmental organizations like the UN, WTO, and IMF play a role in governance
• Internationalization involves trade and alliances between nations
• Globalization refers to economic integration and free trade across borders

Contemporary Global Governance

• Contemporary global governance is the coordination of global issues through institutions, states, and non-state actors

Major Institutions

• The United Nations (UN) was formed in 1945 to maintain peace and security

UN's Key Organs

• General Assembly: Main deliberative body
• Security Council: 5 permanent members (US, China, Russia, UK, France) + 10 rotating
• Economic & Social Council (ECOSOC): Coordinates economic and social policies
• International Court of Justice (ICJ): Settles international disputes
• Secretariat: Administers UN operations

Specialized Agencies

• WHO (World Health Organization) handles global health initiatives
• UNESCO handles Education, Science, and Culture
• WFP (World Food Program) handles hunger relief

Challenges in Global Governance

• Climate change
• Human rights violations
• Economic inequality
• Geopolitical conflicts

Transnational Corporations (TNCs)

• Transnational corporations (TNCs) are companies operating in multiple countries
• TNCs drive economic growth, influence political policies, and promote technology transfer
• TNCs become TNCs to achieve lower production costs, gain access to target markets, and avoid trade tariffs
• Outsourcing and global supply chains lead to efficiency, cost reduction, and shared risks
• Job displacement and labor exploitation are challenges arising from outsourcing and global supply chains

Conclusion

• Globalization has shaped trade, politics, and culture, promoting interconnected economies
• Globalization leads to inequality and dependence on global markets, despite economic benefits
• Effective governance is needed to balance economic growth, political stability, and social equity

Globalization involves increasing interconnectedness through trade, technology, and cultural exchange. The Industrial Revolution saw advancements from steam engines to AI, automation, and advanced robotics. This era deeply affected trade routes and spurred economic growth.