Globalization: Terminologies and Descriptions

Terminologies

• Solidity means being limited to one place
• Fluidity is the persistence of barriers preventing free flow of people, information, etc, before the global age
• Discursive is the global age, where solid things melt away and become adaptable; also, a machine eating anything
• Globality is the condition or quality of being global or worldwide

Globalization Descriptions

• Worldwide integration of economic, technological, political aspects between countries (Hamilton, 2008)
• It reshapes how the social world and human culture are studied (Appelbaum & Robinson, 2005)
• A "discursive" regime functions as texts, ideas, goals, accessible to those with access (Schirato & Webb, 2003)
• Its manifestation includes the reorganization of production, spread of financial markets, etc (Mittelman, 2000)
• Interactive movement in political, social, cultural spheres, etc.
• Flow of liquid phenomena including people, objects, information, etc
• Result of opening the global economy and increasing trade among nations
• Historical process accelerated by the international spread of capitalism, rationalism, and industrial production

Globalization Metaphors

• Heavy represents pre-industrial and industrial societies
• Light represents the era marked by advancements in technology and transportation
• Weightlessness is another metaphor

Core Claims of Globalism

• Globalism involves liberalization and integration of markets
• A global war on terror is needed
• Globalization is inevitable and irreversible
• No one is in charge of globalization
• Globalization benefits everyone in the long run
• Globalization furthers the spread of democracy

Dimensions of Globalization

• Culture is the transmission of ideas to extend social relations
• Religion creates a single social unit, fostering pluralism and influencing politics/culture
• Economics is the international movement of goods/services and increasing economic integration
• Politics involves political activities transcending national borders via global movements and NGOs
• Technology is driven by diffusion and improvement in technology transfer

Global Issues [PPEEEFM]

• Population growth
• Poverty
• Energy consumption and production
• Economic stability
• Environmental concerns
• Availability and stability of food production
• Military conflicts and security issues

Additional Information

• Great inequality characterizes the world despite increased liquidity
• Globalization flows more easily through developed countries, bypassing less developed areas.
• Important international political organizations include the UN, World Bank, IMF, World Trade Organization
• Countries liberalize import protocols and welcome foreign investment
• Politics occurs above the state through integration like the EU or organizations like the IMF
• The globalization in culture is characterized by the common consumption of culture via the internet
• Wider globalization effects increase global awareness and cross-border activities
• Global awareness in deprived areas raises expectations and lowers tolerance, potentially leading to democracy and demands for freedoms
• The information revolution in rich areas fosters global community and transnational solidarity
• National disasters and inflation disrupt food production, import of food products helps maintain supply
• Economic policies like taxes and tariffs promote actions that reduce global inequality
• Development leads to using up natural resources
• Environmental issues are dealt with through the UN Environment Programme

Terminologies: Theories of Globalization

• Decolonization: revealing and dismantling colonialist power that remained after political independence
• Laissez-faire ideology: minimal government interference, trusting free markets, and efficient results
• Modernization Theory: the West viewed as a map of global development

Theories of Globalization

• Colonialism: settlers and formal mechanisms of political control, hard power
• Imperialism: methods to gain and exercise control, setting up an empire, soft power
• Neo-Liberalism: free trade, freedom to invest, growth of economic interdependence

Additional Information: Theories of Globalization

• The northern part of the globe results from human activity, spread and impact from capitalism, and modernization addressing class struggles
• Some approaches manifest globalization: (Robinson,2007)
  • Globalization is a process since the dawn of history, taking place over 5000-10000 years
  • Globalization has occurred with the spread of capitalism and modernity, taking place over 500 years
  • Globalization is a result of post-industrialization, taking place over 20-30 years

Terminology: Global Economy

Economic is a foundation that influences society and politics, a country's status and mobility are crucial to compete Silk Road is the oldest trade route where goods transported to other sides of globe Depression refers to the post-war recession Bretton Woods System(1944-1971) aimed to create a stable international monetary framework, including the IMF, supports the economic recovery US Dollar from the Bretton System, it was adopted as a standard, almost a "global currency", to establish stable exchange rates Richard Nixon stated that the Bretton Woods System collapsed, excessive production of US dollars caused inflation, leading other countries to abandon the system

Additional Information: The Global Economy

• The IMF was created under the Bretton Woods system, which aimed to create stable global monetary
• Philippines "Golden Era" (1950s-early 1960s) the Bretton Woods system played a key role in fostering economic growth
• The US held a portion of global gold reserves, and a major share of global exports
• Unable to operate, the ITO was not successful, it lacked US support due to GATT continue

Terminologies: Global Economy and Global Economic Flows

Epoch is a significant period marked by notable events or changes Remittance occurs when migrants send money back to their country of origin Autarky is when a nation-state turns inward and becomes economically self-sufficient (Italy & Germany, 1930s) July 1944 is when the Bretton Woods System meeting was held in New Hampshire, USA TRIPS (Trade-Related Aspects of Intellectual Property Rights) protects the interest of those who create the ideas TRIMS (Trade-Related Investment Measures) are WTO-imposed trade measures on foreign firms GATT (General Agreement on Trade and Tariffs) facilitates trade liberalization by lowering tariff barriers and restrictions of currency WTO (World Trade Organization) is located in Geneva, Switzerland, it has 152 member nations IBRD (International Bank for Reconstruction and Development) is an agency of the UN, that promotes facilities in less-developed countries and encouraging international investment IMF (International Monetary Fund) promotes macroeconomic stability TNC (Transnational Corporation) operates in multiple countries but decentralizes management MNC(Multinational Corporation) operates in multiple countries, but branches follow a global strategy directed by headquarters Portfolio Investment involves the purchase of equities in other countries for financial gain Greenfield Investment is building corporate facilities in another country Offshore is transferring activities to entities in other countries Outsourcing is transferring activities once performed by an entity to a business in exchange for money

Elements of the Bretton Woods System

The state sets a par value for its currency, expressed in gold The monetary authority exchanges its own currency The IMF oversees exchange rates The state eliminates restrictions on currency use for international trade The entire system is based on the US dollar

Economic Chains in Global Trade by Gary Gereffi

Supply Chains are a general label for value-adding activities in production International Production Networks are networks of producers involved in making products Global Commodity Chains are value-adding chains and the global organization of industries Global Value Chains are the label for all chain work, it stresses the relative value of economic actions through production and delivery

How a Corporation Becomes Transnational and Multinational by Thomas Dicken

Greenfield investment Merger and acquisition Strategic collaborations

Additional Information: Global Economy and Global Economic Flows

• The US pegged its currency at 35 dollars per ounce of gold, Nicaragua pegged at 175 cordobas per ounce of gold
• The US had 3/4 of the world's gold supply and 1/5 of world exports
• Bretton Woods helped establish global trade, global monetary order, and global investment
• The World Bank consists of 184 nations and provides development for less-developed countries
• The Nine Dragons Paper in China recycles US waste paper with their partner in America
• The Organization of Petroleum Exporting Countries (OPEC) was formed in 1960, and it ensures a regular supply of petroleum
• TNCs in the Philippines are Unilever, Nestlé, and Procter & Gamble
• MNCs in the Philippines are Toyota, Coca-Cola, Samsung, Honda, and PepsiCo

Terminologies Global Economy

Macroeconomics the study of the behavior of households, individuals, and firms concerning the allocation of resources and decision-making Transactions explains the functioning of global economy and helps the the continuance of economy Contract manufacturing permits a local manufacturer in a foreign country to produce their products Brandt Line divides the rich north from the poor south Brandt Report reviews international development issues

Categories of Organization

International Trade (exchange of goods and services) helps with the specialization of products International Finance helps with the transfer money between countries Global Investment takes place via foreign direct investment

Benefits of Global Economy

Free Trade allows countries to specialize in the production of goods Increased Investment attracts countries due to global economy Increased Economies of Scale include lowers average cost and cheaper price Movement of Labor solves unemployment and lowers geographical inequality

Factors Affecting Global Economy

Modern World System has boundaries and member groups and is made up of conflicting factors Actors in Globalization are the interconnecting forces in globalization Global Economic Integration involves privatization, deregulation, trade, liberalization, and regional integration

Factors Affecting Global Ecomony Growth

Privatization the transfer of ownership of business from the government to private Deregulation the process of removing state regulations Foreign Direct Investment (FDI) is the investment in a business by an entity based in another country Regional Integration two or more nation states agree to cooperate to achieve peace, stability, and wealth. Trade Liberalization the removal of restrictions on free exchange of goods

Organizational Catergories

Intergovernmental Organizations compose of sovereign states and established by treaty Transnational Corporations operate facilities in multiple countries Supranational Organizations extend beyond borders of 2 or more states that seek to unity International Non-Governmental Organizations are produced by extending NGOs Multinational Corporations are known as global corporation, own and control production of goods

Additional Info Global Economy

Economics is based on the production and exchange of goods and services Treaties are formed when lawful representatives of states go through ratification, and provide the IGO personality Transnational corporations (1) import an export (2) significant investments (3) buying and selling licenses (4) engaging in contract manufacturing (5) opening facilities The semi-periphery is a place for middle trading groups in empires The northern part of the Brandt Line is wealthier due to early industrialization and technological advancements Countries that do not belong to the World Bank includes Monaco, Liechtenstein, Andorra, and North Korea

Terminology: Market Integration

Market Integration is when markets of related goods experience increases or decreases together (Tatum,2020) a situation in which prices of related goods sold in a geographical location began to move (Mofatt,2020) the central banks given a task to maintain a fixed exchange rates by intervening foreign exchange market

Qualities of Global Corporations

Advantages include healthy competition, investment of foreign countries, generation of employment, exports and inflow exchange, growth of ancillary units Advantages include less concern for priorities of host countries, adverse effect on domestic enterprises, change in culture

Market Development Effects

Integration provides opportunity to expand market coverage Market Integration helps to reduce market failure Difference in prices in integrated market=well integrated

Attributes of Global Systems

Countries are independent and self- governing Countries cooperate through diplomacy International organizations promote interaction Organizations take on their own lives

Additional Info:

• Surviving is effective marketing
• Powerful effects on trade, money, and investment

Terminology: Global Interstate System

Nation-state origin dated back to The Treaty of Westphalia leading their system to be autonomous interchangeable Nation-state consist of interchangeable terms nation and state Porosity has border and system openness for nation-states Formed through collective identification of individuals in shared symbols and media (Benedict Anderson) Is limited, sovereign, and does not go beyond given official boundary (Benedict Anderson) State has territory free of external control with an organized government Interstate System has competing and allying states Thirty Years is a conflict involving multiple nations. There was religious and political disputes The Treaty of Westphalla was agreements to end Thirty Years and control over affairs International institutions shaping policy and cooperating

Comparison: Global Interstate System

Internationalism is nation cooperation in aspects to promote goods Globalism ideology movement in people, prioritizing global

Additional Info

Global relationships are independent Diplomacy creates interactions Organizations facilitate and take on lives of their own

Terms of Global Government

Governance is the implementation of policies (defined by Kams and Mingst Global Governance are rules and mechanisms today The U.N. promotes cooperation among countries (192) Governance gaps hinder critical issue effectiveness

Reasons U.N. was created

Ensure peace To promote relations Encourage cooperation Uphold right

Parts of the U.N.

The general assembly The secretariat International court The trusteeship And economic A security council

Accomplishments

Promotes peace and democracy Clean water for nations Combats drug and helps children Literacy promotion Farmer support Protects environment Helos millions from war Monitors weapons

Global Gaps

Compliance Policy Institutional Normative Knowledge