Globalization Overview

Globalization

• Defined as the expansion and intensification of social relations and consciousness across world-time and world-space (Steger, 2014)
• Represents the increasing flow of ideas, people, goods, services, technology, and capital leading to integrated economies and societies (Danug & Campanilla, 2004)
• Viewed as a complex, multi-faceted phenomenon with factors like intensification of production, compression of time and space, and material power in historical structure (Mittelman, 2006)
• Implies an opening of local and national perspectives to a broader outlook of an interconnected and interdependent world with free transfer of capital, goods, and services across national frontiers
• Includes economic, social/cultural, and political dimensions

Economic Globalization

• Measures long-distance flows of goods, capital, services, and accompanying information in market exchanges

Social and Cultural Globalization

• Measures the spread of ideas, information, images, and people

Political Globalization

• Measures the diffusion of government policies in terms of the number of embassies and consulates in a country, membership in international organizations, participation of a country in UN peace missions and similar advocates

Global Interstate System (GIS)

• An organized institution governing international relations for mutual benefit (Chase-Dunn, 1981)
• Addresses regional or globalized issues beyond the scope of a single nation-state

State

• A community of persons more or less numerous, permanently residing in a definite portion of territory, having a government of their own to which a great body of inhabitants render obedience to, and enjoying freedom from external control

Origin of States

• Divine Right: State created by God, ruler divinely appointed
• Necessity/Force: State formed by a powerful warrior imposing their will
• Paternalistic: State originates from enlarged families under parental authority
• Social Contract: State formed by a voluntary agreement among people for common good

Elements of a State

• Territory: Land, inland waters, seas, and airspace
• People: Permanent population, not nomadic
• Government: Instrument that formulates and implements state policies

Sovereignty

• The supreme power of a state to command obedience to its laws

Effects of Globalization on Governments

• National and local policies are based on local context but also international and global realities
• Creation of international agreements and efforts to fight borderless challenges and issues
• Create job opportunities from major global investors
• Displaced individuals due to industry expansion
• Inequality to incomes from rural and urban areas

Globalism and Internationalism

• Commonly used interchangeably; represent increasing interconnectivity through communications, transport, and technology (Roudometof, 2005)

Global Governance

• The management of global processes in the absence of any form of global government (Weiss, 2013)

United Nations (UN)

• An important non-state actor, international governmental organization (IGO) playing a vital role in the world’s affairs
• Designed to make the enforcement of international law, security, human rights, economic development, and social progress easier for countries around the world
• This organization is the world’s largest voluntary corporate responsibility initiative bringing together companies, national and international agencies, trade unions, and other labor organizations and various organs of civil society to support universal environmental protection, human rights, and social principles

UN General Assembly

• The main decision-making and representative assembly upholding UN principles

UN Security Council

• Can authorize the deployment of UN member state’s militaries, can mandate cease-fires during conflicts, and can enforce penalties on countries if they do not comply within given mandates
• Composed of five permanent members and 10 rotating members

International Court of Justice

• Can settle, according to international law, legal disputes between States and give opinions, mostly advisory, on legal questions brought to it by UN organs and agencies

Economic and Social Council

• Assists the UN General Assembly in promoting economic and social development, as well as cooperation of member states

Secretariat (UN)

• Headed by the Secretary-General, provides studies, information, and other data when needed by other UN branches for their meetings

Gaps in Global Governance

• Jurisdictional Gap: Lack of authority with power/jurisdiction to act
• Incentive Gap: Lack of motivation for international cooperation (closing with globalization)
• Participation Gap: Primarily governmental focus, leaving civil society on the fringes of policymaking

Economic Globalization (Continued)

• Expansion of national economies, the global market driven by modern technologies and institutional set ups that promote faster and easier flow of goods and capital (Sudgen & Wilson, 2005)
• Governed by neoliberal principles with the role of the marker as a central driver of economic activities, with less government interventions (Martin, Schumann & Camiller, 1997)
• Economic globalization entails global industries restructuring and readjustments where developed countries play a dominant role (Shangquan, 2000)
• Focus on increasing economic trade interrelations among countries (Steger, 2010; Al-Rodhan, et al., 2006; Shangquan, 2000)

International Economic Organizations

• G8/G20: Advisory organizations discussing current economic and political problems and transferring ideas to national legislative regulations (Shangquan, 2000)
• Regional Agreements/Standards: Facilitate better trade and exchange of knowledge, human resources, and regional cooperation
• IFIs (International Financial Institutions): Provide support through grants or technical advices to promote a country’s economic and social development (Bhargava, 2006)
• IMF (International Monetary Fund): Promotes international monetary cooperation and exchange stability to foster economic growth and high employment, providing short-term financial assistance to ease balance of payments adjustments (IMF, 2019)
• World Bank: Plays a central role in overseeing economic policy and reforming public institutions in developing countries and defining the global macroeconomic agenda
• Organization for Economic Cooperation and Development (OECD): Promotes policies that support sustainable economic growth and well-being in member countries

Multinational/Transnational Companies (MNCs/TNCs)

• MNCs: Centralized planning and decision-making for all international companies
• TNCs: Decentralized planning, each international company decides individually what is beneficial to its market

Central Banks

• Powerful institutions influencing economic development

Global Civil Society

• Composed of individuals or groups disadvantaged by globalization, protesting and seeking alternatives
• Includes Transnational Advocacy Networks (TANs) promoting causes, principled ideas, and norms, often advocating policy changes

Market Integration

• Economies becoming more interdependent and interconnected in terms of commodity flows including externalities and spillover impacts (Genshel & Jacktenfuchs, 2017)

Horizontal Integration

• Competitive strategy creating economies of scale, increasing market power, product differentiation, and expanding markets
• Merging companies can generate more revenue
• Provides access to new distribution channels

Vertical Integration

• Company involvement in new portions of the value chain
• Useful to neutralize influential buyers' effects

Backward Vertical Integration

• Company moves back/upstream, entering the supplier's business
• Reducing or eliminating supplier leverage

Forward Vertical Integration

• Company moves down the value chain, entering the purchaser’s business
• Neutralizing influential buyer’s effects

Conglomerate (A general term, not defined in provided texts)

History of Global Economy

• First period (pre-1914): Tremendous trade, capital, and immigration flows; limited institutional structure
• Second period (post-WWII to late 1990s): Modern international economic architecture, MNC expansion, liberalization, free flow of capital
• Third period (late 1990s - recent): Modern internet, WTO, China's entry, trade challenges, debt issues
• Fourth period (predicted): Slower growth, political destabilization; recommendations for reforms and cooperation

International Financial Institutions

• Key role in development strategy and ideology for many countries

World Bank Composition (IBRD, IDA, IFC, MIGA, ICSID)

Sustainable Development Goals (SDGs)

• 17 Goals focusing on peace and prosperity for people and the planet
• Comprehensive actions for poverty eradication, improved health & education, reduced inequality, economic growth under mitigating climate change and preserving the environment

SDGs specifics (1-17):

(Specific details for each SDG are listed above, too extensive to summarize further.)

Explore the multifaceted phenomenon of globalization, including its economic, social, cultural, and political dimensions. Understand how globalization connects local and national perspectives to a complex, interdependent world. This quiz delves into the crucial aspects of globalization and its impact on societies and economies.