Introduction to Globalization

• The contemporary world is globalized.
• The lesson will look at what it means to be global.

Key Terms

• National: Within national boundaries or within a country
• International: Between national boundaries or between two or more countries; "inter" prefix means 'among/between"
• Continental/Intercontinental: Within a continent or between continents
• Global: Across the globe or worldwide, across the seas and continents

Globalization

• Globalization is the process that makes the contemporary world globalized.
• "Izaition" is a suffix which means "process, act or result"
• Globalization means a process across the globe/worldwide

Definition of Globalization

• A process in which goods, services, beliefs, and political ideology move from one national boundary to another
• Integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology
• Is a multifaceted field that encompasses economics, politics, and social structures
• A multidimensional phenomenon referring to the increasing integration of economies around the world
  • Particularly through the movement of goods, services, capital, labor, and technology across borders
• It is seen as the widening, deepening, and speeding up of worldwide interconnectedness in all aspects of contemporary social life.

Globalization Terms Defined

• Integration means a process of combining and/or mixing different entities
• Interconnectedness means a process in which different entities are connected or related with one another

Manfred Steger Definition

• Most scholarly definition of Globalization
• Globalization is the expansion and intensification of social relations and consciousness across world time and world space.

Expansion

• Creation of new social networks and multiplication of existing connections
• Expansion cuts across traditional, political, economic, cultural, and geographical boundaries.
• The "reach" transcends geographic and political borders
• People became more linked/connected to one another

Intensification

• Social relations are strengthened, resulting in "World Shrinkage"
  • "World Shrinkage (Larsson, 2001)" - destroyed distance and boundaries
  • People are now more connected
• Human interaction became more frequent and influential
• Human engagement becomes more meaningful and impactful

Stiglitz, Friedman, Held, and McGrew Definition

• Globalization is the increasing openness of borders and interdependence of countries
• Allows for the free flow of goods, services, information, and people across the globe

Openness and Interdependence Defined

• Openness means the free or unrestricted movement
• Interdependence means being reliant on one another

Early Roots of Globalization

• Humans have a natural tendency to trade
  • Due to scarcity of resources
  • For the satisfaction of needs and wants
• Trade - exchange of goods and services
• Gills and Thompson (2006) suggest that globalization processes have been ongoing since Homo sapiens

Reasons to Trade

• Advantage: The ability to produce goods and services at a lower cost (opportunity cost), and competitiveness
• Specialization: Focusing resources on the production of a limited range of goods or services

Early Accounts of Trade

• Silk Road
  • The longest and oldest trade route
  • Trade between Eurasian countries
  • International
• Galleon Trade
  • Spanish Empire trade; Manila to Acapulco to Spain
  • Global
• Trade is not just about the transfer of goods and services
  • When goods and services move, a story joins its journey

Economic Process

• Globalization is an economic process
• Economic process in which globalization is the integration of national markets to a wider global market signified by the increase in free trade

Process of Globalization

• Globalization can be seen in various lenses
• It is a multitude of processes which involves economics, politics, culture and social structures

Dimensions of Globalization

• Complex and multifaceted
• Dimensions deal with either economic, political, and social dimensions

Effects of Globalization

• Industry
  • System of production of goods and services
  • Worldwide production markets
  • Broader access to foreign products -Increased movement of material good between and within national boundaries
  • Enhanced opportunities for growth and innovation
• Finance is a system of money and financial management involving financial resources (investments, savings, capital etc.)
  • Emergence of worldwide financial markets
  • Increased flow of capital
• Economy is the system of production, distribution, and consumption of goods and services
  • Realization of global common market
  • Worldwide exchange of goods, services, and capital
  • Resource exchange
• Politics is the system of governance, use of power and authority
  • Increased relationships and cooperation among governments
  • Spread of political ideologies
• Language is a system of communication that consist of set of sounds, symbols, and gestures to communicate
  • Expansion, growth and dominance of languages, most popular language is English
• Market competition is a system of rivalry among firms to gain market shares, attract customers, and maximize profits
  • Improved productivity and efficiency
  • Industries have to upgrade their products and technology to skillfully improve
  • Innovation and quality
• Culture
  • System of beliefs, values, customs, and behavior of a particular group of people
  • Growth of cross-cultural contacts
  • Adoption and enjoyment to foreign products and ideas
  • Spread of culture
• Environment
  • All the natural surroundings that affect living things, including air, water, land, plants, and animals
  • Environmental challenges: Environmental degradation, deforestation, climate change, and pollution
• Social refers to the system of interactions and relationships within a society ie aspects of human life
  • Spread of multiculturalism and cultural diversity
  • Greater international travel and tourism
  • Worldwide fads and pop culture
  • Changing norms
• Technology is the systems that solve problems or enhance human capabilities
  • Rapid development and innovation
  • Development of global telecommunication
  • Technology transfer
  • Increased well-being and convenience

Because of Globalization

• The world is more connected than ever.
• The standard of living has drastically changed.
• Consumers can enjoy and have more choices.
• The world experienced unprecedented growth.
• The world is also challenged more than ever.

Overall

• Globalization is a concept that is not easy to define
• Globalization is a reality; it is changing as human society develops and it is still happening today and still expected to continue in the future