Introduction to Globalization

Lecture 1: Introduction to Globalization

• Globalization involves the spread of people, ideas, and goods, fostering interaction and integration between cultures and economies.
• Globalization (Cherunilam, Francis) defines the growing interdependence of economies, cultures, and populations through trade, technology, and investment.
• Globalization (Manfred Steger) encompasses accelerating economic, political, cultural, ideological, and environmental processes altering our world experience.
• Globalization is a multi-dimensional process involving economic, political, technological, cultural, religious, and ecological aspects.
• Globalization (IMF) describes the growing economic interdependence of countries via cross-border transactions in goods and services.
• Globalization (Steger, Manfred) represents the compression of the world into a single place, making global the reference for human thought and action.
• The Prehistoric Period of globalization spanned from 10,000 BCE to 3500 BCE.
• The Early Modern Period, from 1500-1750, featured European exploration and trade expansion.
• The Modern Period, from 1750-1970, saw industrialization and economic growth.
• The Contemporary Period, from 1970 to the present, is marked by advanced technology and economic integration.

Five Historical Periods of Globalization:

• Prehistoric Period (10,000 BCE – 3500 BCE)
• Pre-modern Period (3500 BCE – 1500 CE)
• Early Modern Period (1500 – 1750)
• Modern Period (1750 – 1970)
• Contemporary Period (1970 – present)

Four Dimensions of Globalization:

• Economic Dimension
• Political Dimension
• Cultural Dimension
• Religious Dimension

Five Major Ideological Claims of Globalization:

• Globalization involves liberalization and global integration of markets.
• Globalization is considered inevitable and irreversible.
• Globalization is portrayed as a process with no single entity in control.
• Globalization is purported to benefit everyone.
• Globalization is said to further the spread of democracy globally.
• Solidarity means that all members of the human family bear responsibility for one another.
• Distributive Justice includes ensuring resources are fairly distributed among individuals and communities.
• Integral Humanism is a social principle supporting justice and the common good.
• Ideology comprises shared ideas, beliefs, norms, and values within a group.
• Ideology connects human actions with generalized claims.
• Liberalization emphasizes minimal government intervention in markets.

Five Major Ideological Claims of Advocates of Globalism:

• Globalization is about liberalization and global integration of markets.
• Globalization is inevitable and irreversible.
• Nobody is in charge of globalization.
• Globalization benefits everyone.
• Globalization furthers the spread of democracy in the world.

Lecture 2: Structures of Globalization

• Economic Globalization includes the increasing interdependence of world economies due to cross-border trade and technology.
• Marketization involves restructuring state enterprises to operate as market-oriented firms by changing the legal environment.
• The International Monetary System forms rules and standards for facilitating international trade.
• International Trade represents the exchange of goods, services, and capital across national borders.
• The International Monetary System is a governing body setting rules for currency exchange between nations.
• The World Trade Organization (WTO) deals with trade agreements and dispute resolution between nations.
• Trade Liberalization involves reducing trade barriers to facilitate international commerce.
• The International Monetary System governs global financial interactions, and facilitates the transfer of money and investment.
• A Bilateral Trade Policy is a trade agreement between two countries aimed at reducing trade restrictions.
• Financial Capital Mobility highlights the ability of financial assets, investments, and capital to move freely across borders.
• A Multinational Corporation (MNC) operates across multiple countries.
• Offshoring happens when corporations move production facilities to countries with lower labor costs.
• The World Trade Organization (WTO) sets rules for global trade and resolves trade disputes.
• Foreign Direct Investment (FDI) includes a foreign company establishing ownership or control over a business in another country.

Four Dimensions of Economic Globalization:

• Globalization of trade and goods
• Globalization of financial capital markets
• Globalization of technology and communication
• Globalization of production

Three Major Driving Forces of Economic Globalization:

• The rapid growth of information in all types of productive activities.
• Marketization
• Essential features of Modern Outsourcing Strategy involve firms searching for partners with expertise

Four Types of Trade Policies:

• National Trade Policy
• Bilateral Trade Policy
• International Trade Policy

Five Essential Features of Modern Outsourcing Strategy:

• Firms must search for partners with expertise.
• Firms must convince potential suppliers to customize products for their own specific needs.
• Firms must induce necessary relationship-specific investments.

Lecture 3: World of Regions

• The North-South Divide is a socio-economic and political categorization dividing countries into two groups.
• The Global North and Global South describes a grouping of countries along socio-economic and political lines.
• The Global South identifies regions of Latin America, Asia, Africa, and Oceania.
• The Global North is an economic and political term often equated with developed countries.
• The Bipolar World Order represents the Cold War division of countries into capitalist and communist blocs.
• The World-Systems Theory classifies the world into core, semi-periphery, and periphery countries.
• Peripheral Nations provide raw materials and cheap labor to industrialized nations.
• The Association of Southeast Asian Nations (ASEAN) focuses on economic and political cooperation in Southeast Asia.
• The World-Systems Theory separates the global economy into core, semi-periphery, and periphery economic zones.
• Core Nations are economically dominant countries controlling global trade and investment.
• Peripheral Nations are economically weaker countries relying on core nations for investment and markets.
• Semi-peripheral Nations are transitioning between periphery and core, often industrializing.
• The North Atlantic Treaty Organization (NATO) is a security alliance among North American and European countries.
• The Quadrilateral Security Dialogue (QUAD) is a security dialogue among the United States, Japan, India, and Australia.

Five Economic Organizations and Regional Blocs:

• BRICS (Brazil, Russia, India, China, South Africa)
• G7
• G20
• Gulf Cooperation Council (GCC)
• European Union (EU)

Five Regional Security and Political Alliances:

• North Atlantic Treaty Organization (NATO)
• Quadrilateral Security Dialogue (QUAD)
• European Union (EU)
• Gulf Cooperation Council (GCC)
• African Union (AU)

Five Major International Economic Institutions

• International Monetary Fund (IMF)
• World Trade Organization (WTO)
• World Bank
• Organization for Economic Cooperation and Development (OECD)
• United Nations Conference on Trade and Development (UNCTAD)

Two Major Global Divisions Created During the Cold War:

• Western Bloc (United States and Allies)
• Eastern Bloc (Soviet Union and Allies)