Overview of Globalization

Overview of Globalization

• Globalization relates to an increasingly integrated global economy, characterized by free trade.
• Robertson (1992) defined globalization as "understanding of the world" and an increased perception of the world as a whole.
• It encompasses complex social processes that alter the current social conditions influenced by modern systems.

Perspectives on Globalization

• Barack Obama highlighted that globalization is driven by technology, integrated supply chains, and transportation changes, emphasizing its inevitability.
• Kofi Annan compared arguing against globalization to opposing the laws of gravity, suggesting its fundamental nature.
• Nestor Kirchner advocated for a form of globalization that benefits everyone, not just a select few.

Corporate Expansion in Africa

• KFC, part of Yum Brands, aims to expand in Africa as a response to stagnating American sales, with plans to double its outlets on the continent to 1,200.
• KFC has maintained an outlet in South Africa since 1971 and is now targeting Nigeria, Namibia, Mozambique, Ghana, and Zambia.
• Over 40% of Africans now live in urban areas, supporting the growth of the middle class, which is a key factor for Yum's expansion strategy.

Five Claims of Market Globalism

• Globalization promotes liberation and integration of markets, highlighting the efficiency of free-market functions.
• It is considered inevitable and irreversible due to markets' ability to leverage new technologies to address social challenges.
• There is no single authority governing globalization, emphasizing a "leaderlessness" in global market dynamics.
• It is argued that globalization fosters the spread of democracy, although economic development does not automatically guarantee democratic outcomes.
• Globalization is conducive to creating complex societies with a powerful middle class, bolstering democratic structures.