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