Globalization: Key Concepts

Terminologies

• Solidity represents the characteristic of being limited to one place
• Fluidity explains the persistence of barriers that prevent movement of people before the global age
• Discursive is the age where solid things melt away becoming fluid and adaptable
• Globality signifies the condition of being global or worldwide

Description of Globalization

• Globalization integrates economic, technological, and political aspects between countries [Hamilton, 2008]
• Restructures the study of the social world and human culture [Appelbaum and Robinson, 2005]
• Functions as a set of accessible texts, ideas, and goals [Schirato and Webb, 2003]
• Manifests through reorganization of production and spread of financial markets [Mittelman, 2000]
• Interactive flow of people, objects, and information in political, social, and cultural spheres
• Can result from opening the global economy, increasing trade among nations
• A historical process accelerated by capitalism, rationalism, and industrial production

Metaphors of Globalization

• Heavy Globalization includes pre-industrial and industrial societies
• Light Globalization marks the era of technology and transportation
• Weightless Globalization

Core Claims of Globalism [Steger, 2005]

• Globalization integrates markets
• Requires a global war on terror
• Is inevitable and irreversible
• No one is in charge
• Benefits everyone in the long run
• Furthers democracy

Dimensions of Globalization

• Cultural Globalization transmits ideas to extend social relations
• Religious Globalization creates a single social unit, religious pluralism, and encourages religious influences
• Economic Globalization involves the international movement of goods, services, and increasing economic integration
• Political Globalization enables political activities across national borders through global movements and NGOs
• Technological Globalization spreads technology, improves technology transfer to peripheral nations

Global Issues [PPEEEFM]

• Population
• Poverty
• Energy
• Economic
• Environmental
• Food Production
• Military Issues

Additional Information

• The world has great inequality, the developed world flows more easily than the less developed one.
• Important international political organizations: United Nations, World Bank, International Monetary Fund, and World Trade Organization.
• Countries can liberalize import protocols, welcoming foreign investment to boost their economy.
• Politics occur through regional integrations, such as the European Union and intergovernmental organizations
• Consumption of culture is diffused through the internet, popular culture media, and at an international level
• Wider effects of globalization increased awareness and illicit cross-border activities
• Global awareness raises expectations, lowers tolerance, and spreads democracy
• The information revolution assists in forging a sense of global community and transnational solidarity

Issues and the Global Economy

• Food Production: National disasters and inflation disrupt food production, imports maintain stable supply
• Economic: Fiscal policies such as taxes reduce global inequality
• Environmental: Development can deplete natural resources, consider sustainability and stability through programs through the United Nations Environment Programme

Terminologies for Theories of Globalization

• Decolonization dismantles colonial power even after political independence
• Laissez-faire Ideology advocates for minimal government involvement in economies
• Modernization Theory views the West as a map of global development

Theories of Globalization

• Colonialism settlers in hard powers through political control
• Imperialism uses soft powers to control and exercise control
• Neo-Liberalism encourages economic interdependence, free trade, and investment

The Northern Hemisphere's Development

• The north developed due to early human activity, the spread of capitalism, and modernization

Approaches to Globalization

• Has been occurring since the dawn of history (5000-10000 years)
• Coterminous with the spread of capitalism and modernity (500 years)
• Associated with post-industrialization (20-30 years)

Economic Terminologies

• Economic: Foundation for influencing politics, economy, and society
• Silk Road: Ancient trade route introducing the transport of goods globally
• Depression: Post-war recession period of economic slowdown and reduced production
• Bretton Woods System (1944-1971): Established to create monetary framework to support global economic recovery of the IMF and the World Bank
• US Dollar: Global currency adopted from the Bretton system
• Richard Nixon: US President who collapsed the Bretton Woods system and caused high inflation production

The IMF and the Bretton Woods System

• The IMF was created under the Bretton Woods system that aims to create a stable global monetary system
• The Bretton Woods system stabilized and fostered economic growth in the Philippines during its "Golden Era"
• The US held the most global gold reserves
• International Trade Organization (ITO) wasn't successful because of lack of support

Global Financial Terminology

• Epoch: A period in history marked by changes
• Remittance: Migrants sending money to their homeland
• Autarky: A nation-state becoming self-sufficient in the 1930s with Italy and Germany
• July 1944: Bretton Woods System meeting at Bretton Woods, New Hampshire
• TRIPS: Trade-Related Aspects of Intellectual Property Rights to protect creators' ideas
• TRIMS: Trade-Related Investment Measures that impose on foreign firms
• GATT: General Agreement on Trade and Tariffs to increase trade
• WTO: World Trade Organization to facilitate economical globalization
• IBRD: International Bank for Reconstruction and Development to establish specialized agencies within the World Bank
• IMF: International Monetary Fund to increase economy and balances
• TNC: Transnational Corporations decentralizing operations, independently from branches
• MNC: Multinational Corporations operating under the head office
• Porfolio Investment: Purchase of equities for financial gain
• Greenfield Investment: Building corporate facilities in another country
• Offshore Outsourcing: Transferring activities to other entitites in different countries
• Outsourcing: Transferring business activities in exchange for money

Comparison Between GATT and WTO

• GATT facilitates trade mostly on goods and tariff reduction
• WTO focuses on services, tariffs, and tariff barriers

Key Elements in the Bretton Woods System

• Establish "par value" based on expressed gold
• Monetary authority agrees to exchange its own currency
• IMF created to oversee exchange rates
• States eliminate restrictions of currency for international trade
• System based on the US dollar

Economic Chains in Trade [Gary Gereffi]

• Supply Chains: Value adding activities in production
• International Production Networks: Producers producing a finishing product
• Global Commodity Chains: Value adding chains and organization
• Global Value Chains: Value of economic acts, production, and delivery

Ways for a Corporation to Become Transnational and Multinational [Thomas Dicken]

• Greenfield Investment
• Merger and Acquisition
• Strategic Collaborations

Additional Information on the Economy

• The US dollar was 35 per ounce of gold
• Bretton Woods highly affected global trade, monetary order, and global investment
• The World Bank has 184 nations
• Nine Dragons Paper recycles waste paper out of the business partner
• The Oil Producing Exporting Countries was formed in 1960 and stabilizes oil markets
• There are numerous companies like Unilever performing a global operation
• Toyota follows local operations but is managed under their headquarters

Terminology

• Macroeconomics involves behavior of households, individuals, and firms through resource allocation
• Transactions function to continue growth in a global economy
• Contract Manufacturing involves local manufacturing
• Brandt Line divides the wealthier North from the poorer South
• Brandt Report promotes the development of international development issues

Organization Categories

• Intergovernmental Organizations: Established by treaty with a charter, for example the WTO
• Transnational Corporation: Commercial enterprises that operate and sell in different countries
• Supranational Organizations: Promote economic, political, and cultural unity through its members, for example UN
• International Non-Governmental Organizations: International scope for influencing governments with a specific operational goal
• Multinational Corporation: Global corporation owning the production of goods

Characteristics of the Global Economy

• International Trade: Exchange of goods and is a support to specialize in individual products
• International Finance: Transferring money for different people
• Global Investment: Investment that takes place via foreign direct investment

Benefits of the Global Economy

• Free Trade: Exchange of goods
• Increased Investment: Countries are attracted to invest
• Increased Economies of Scale: Customers see this through increased markets and goods
• Movement of Labor: Increased with reduced geographic inequality

Global Economics Factors

• Modern World System: Social system that connects forces through tension
• Actors in Globalization: Influence on globalizaton
• Global Economic Integration: Trend including liberalism and regional integration

Affecting Factors in Growth

• Privatization: Transfer from government to the privatization sector
• Deregulation: Removing state regulations for trade
• Foreign Direct Investment: Trade through controlling an entity
• Regional Integration: Cooperation for peace, stability, and wealth through trade
• Trade Liberalization: Removal from trade through licensing

Market Terminologies

• Market Integration patterns are related to goods, services, and price increases
• Maintains balances in the currency for the task of intervention [Moffatt, 2020]
• Part II Countries are countries that lack investment
• Business through corporations and facilities that connect facilities

Characteristics of the Global Economic System

• Sovereignty is connected through modern concepts
• Openness is through national borders or in a system
• Countries and governments are free, with defined territories
• A system where the connection comes from competing and allying states

Thirty Years War (1618-1648) and the Treaty of Westphalia

• A conflict fought on the basis of political disputes between Protestant and Catholic European states
• Agreements to end the 30 Years War, exercising control on regional conflicts

Economic and Social Factors through the Cooperation and Aid Between Countries

• Financial stability creates integration between nations
• Countries cooperate politically and economically
• International organizations become established on their own

Market Integration Development

• Increases coverage by selling local products
• Reduces market failure

Survival Strategies

• Global corporations have big budgets
• Effective for marketing.
• International and economical integration

Governing Principles of Globalization

• Nationalism: Political movement connecting the nations
• Internationalism: Principle with global interests

Influences of Globalization

• Political influences and governments
• Losing power, but still handles governments and influences socials
• Nations form integration to discuss dispute issues

Characteristics of Governance

• Implementation of policies through members
• Collection of activities, mechanisms and tasks that are formal and informal

Main Purposes

• Ensure peace and security
• Relations between nations
• Solve problems
• Protect human rights

United Nations' Organs

• The assembly
• The secretariat
• The court
• The trusteeship council
• Economies and socials
• Security Council

United Nations' Benefits

• Promotes Peace
• Safe and water for the population
• Prevents child abuse and substance abuse
• Promotes environments
• Economic help

Economic Risk

• Compliance
• Policy
• Normalities

Global Economy Terms

• Goverance
• Global Divides
• Capital Expansion