Globalization Unit 1: What is Globalization

Globalization and Globalism

• Globalization refers to the expansion and intensification of social, cultural, and economic relations across borders
• According to Manfred Steger, the expansion in globalization refers to the increased connectivity and interdependence of the world's economies and societies

Focus of Globalization

• The primary focus of most people's view of globalization is on economic globalization, but it also encompasses cultural and social aspects

Characteristics of Globalization

• Globalization is described as an uneven process, with both positive and negative consequences, and differing impacts on various regions and populations

Antiglobalization Movement

• The main focus of the 'antiglobalization' movement in the 1990s was to protest the negative consequences of economic globalization, such as exploitation and inequality

Intensification in Globalization

• Manfred Steger defines the intensification in globalization as the rapid growth and deepening of international connections and interdependencies
• Social media intensification refers to the acceleration of global connections and interactions through digital platforms

Globalization vs. Globalism

• Globalization refers to the process of increasing global interconnectedness, while globalism refers to the ideology that promotes and celebrates globalization

'Scapes' and Technoscape

• Arjun Appadurai refers to 'scapes' as the various dimensions of globalization, including technoscapes, which refer to the global spread of technology

Ethnoscape

• Ethnoscape specifically refers to the movement of people and ideas across borders

Historical Globalization

• The Silk Road was primarily known for its ancient network of trade routes connecting East Asia with the Mediterranean region
• The Galleon trade in 1547 marked the beginning of globalization in the modern era
• During the age of mercantilism, a common practice of regimes was to accumulate wealth and power through colonization and trade

International Monetary Fund (IMF)

• The main goal of the International Monetary Fund (IMF) is to promote international monetary cooperation and stabilize exchange rates
• The IMF regards human innovation and technological progress as the driving force behind globalization
• Economic globalization, according to the IMF, represents the increased integration of economies worldwide

Gold Standard and Bretton Woods System

• The primary goal of the gold standard adopted by the United Kingdom, the United States, and other European countries in 1867 was to stabilize exchange rates
• Many countries abandoned the gold standard during World War I due to the increased need for monetary flexibility
• Economists argued that the gold standard caused the worldwide economic crisis during the 1920s and 1930s by limiting governments' ability to implement fiscal policies
• The Bretton Woods System, established in 1944, replaced the gold standard as the basis of the world economy
• The two financial institutions created at Bretton Woods were the IMF and the World Bank
• John Maynard Keynes believed that economic crises occur not when a country does not have enough money, but when money is not being spent and, thereby not moving
• The primary purpose of the IMF established at Bretton Woods was to promote international monetary cooperation and stabilize exchange rates
• Many countries adopted floating currencies that were no longer redeemable in gold during the Great Depression due to the need for greater monetary flexibility
• Fiat currencies refer to currencies that are not backed by any physical commodity but by the government's authority
• The idea that influenced the creation of the Bretton Woods System was the need for international cooperation and economic stability after World War II

Test your knowledge of the concept of globalization and its significance in the contemporary world with this quiz. Explore the integration of national markets, free trade, and the expansion of social relations and consciousness as defined by Manfred Steger.