Globalization: Economics and Trade

• Globalization describes the growing interdependence of the world’s economies, cultures, and populations.
• This interdependence is facilitated by cross-border trade in goods and services, technology, and flows of investment, people, and information.
• The term "globalization" gained popularity after the Cold War in the early 1990s.
• Globalization can both benefit society as a whole and harm certain groups.
• Globalization involves activating commitments, connecting across differences, forging new relationships, and spreading production, communication, and technologies worldwide.

Economic Aspects of Globalization

• Early capitalist ideas include the "Free Market Economy" described by Adam Smith in "Wealth of Nations" (1776), division of labor, and competition.
• Economies are increasingly linked together through entities like NAFTA (MX, CA, US), the EU, and the WTO.
• The WTO is a global international organization dealing with the rules of trade between nations.
• The WTO began before the end of World War II.
• The WTO provides a legal and institutional framework for national policies affecting international trade and aims to promote freer and more predictable trade conditions.

Multinational Corporations and Globalization

• The Dutch East India Company was an early multinational corporation, founded in 1602.
• The Dutch East India Company had a spice trade monopoly in East Asia.
• The Dutch East India Company had the power to colonize territories and enslave indigenous people in areas like Indonesia & South Africa.
• Modern examples of multinational corporations include Nike, Wal-Mart, and Royal/Dutch Shell.
• Most top 100 multinationals are US-owned companies.
• Royal/Dutch Shell operates in more than 140 countries, employing over 112,000 people.

Technological Aspects of Globalization

• The World Wide Web has grown significantly in recent years.
• Computers facilitate the movement of money around the world, creating "finance capital".
• Silicon Valley is ranked as the 9th largest economy in the world.
• The number of telephones is decrasing.
• There are more computers in Manhattan than in all of Africa.
• Post-colonial infrastructures often do not adequately support technology.

Cultural Aspects of Globalization

• Cultural imperialism is the dominance of one culture over others.
• It is exemplified by Hollywood movies, McDonald’s, Disneyland and Starbucks.
• This includes the dominance of the English language, and the invasion of other languages.
• The "Culture Industry" creates opportunities for Africans to sell their culture in the "global market".

Political Aspects of Globalization

• The United Nations is a global association facilitating cooperation in international law, security, economic development, and social equity.
• The US and the UK were the only nations in support of going to war in Iraq.
• Alternative political gatherings include the Annual World Social Forums since 2001.
• In 2001, US pharmaceutical corporations sued South African companies infringing on AIDS medication patent laws.
• In 2003, President George W. Bush announced the Emergency Plan which was for aids patients, the largest international health initiative in history to improve aid.

Military Aspects of Globalization

• Global alliances become clear during wartime.
• The US has an alliance with Britain in wars against Afghanistan and Iraq.
• The US sold $227 million in arms to Afghanistan in the 1990s.
• The US trains and provides weapons for African armies on both sides of their civil wars.
• The US is the leading exporter of weapons globally.
• The US is the last on the list of exporters of non-military aid to the developing world.