Understanding Globalization

• Globalization connects the world through economic, political, and cultural exchanges.
• This affects national economies, international relations, and cultural interactions.

Dimensions of Globalization

• Economic: increasing linkage of national economies through fast trade, global organizations (IMF, WTO, World Bank), multinational corporations, trade blocs (EU, ASEAN, NAFTA), free trade, privatization, and reduced tariffs.
• Apple manufactures parts in different countries and assembles them to reduce costs as an example.
• Political: challenges national sovereignty via regional blocs (EU, ASEAN), global norms, multilateral relations, international laws, and global governance.
• The United Nations helps mediate conflicts and set policies.
• Cultural: the world becoming a "global village" through cultural exchange, reduced communication barriers, spreading cultural influence, and adopting different cultures.
• K-pop and Japanese anime are popular outside of Asia.

Expert Definitions of Globalization

• Immanuel Wallerstein: triumph of capitalist world economy
• David Harvey: compression of time and space.
• Anthony Giddens: intensified worldwide social relations.
• Martin Albrow: process of incorporating people into a single world society.
• Peter Dicken: integration of economic activities across international borders.
• Arjun Appadurai: global cultural process.
• Robert Cox: internationalizing production, migration, and competition.
• Paul Bairoch & Richard Kozul-Wright: financial interlinking through cross-border transactions.
• James H. Mittleman: varied phenomena.
• Charles Oman: accelerated growth across political boundaries.

Attributes of Globalization

• Various Forms of Connectivity: economic, political, cultural, and technological connections are facilitated by media, policies, and organizations, with varying impacts across regions.
• Amazon connecting global sellers and buyers is an example.
• Expansion & Stretching of Social Relations: growth of international NGOs, sister-city relations, and multinational corporations occurs.
• The Red Cross provides global disaster relief.
• Intensification & Acceleration of Social Exchanges: shift to instant messaging, live telecasts, real-time communication, and increased travel due to lower airfares occurs.
• Social media platforms like Facebook, Instagram, and TikTok have risen.
• Occurs Objectively: involves awareness of global trends, promoting responsibility.
• Climate change activism and international cooperation aim to reduce carbon emissions.

Six Core Claims of Globalization

• Markets are liberalized and integrated.
• It is inevitable and irreversible.
• No single entity controls it.
• Everyone benefits in the long run.
• Democracy is promoted worldwide.
• It requires a global war on terror.

Arguments Against Globalization

• Rejectionists: view globalization as vague and meaningless and too broad.
• Skeptics: globalization is limited, centered in certain regions (Europe, East Asia, North America), emphasize national economies, and view the economic dimension as primary.
• Modifiers: it exists but isn't new, with roots in centuries of trade and modernization.
• The Silk Road is an example.

Summary of Globalization

• A complex ongoing process with economic, political, and cultural dimensions.
• Scholars offer different perspectives on its definition and impact.
• Debates continue about whether it benefits or harms societies.
• The world evolves under globalization, with real-life examples illustrating its impact.

Definition of Economic Globalization

• Increasing interdependence of world economies due to cross-border trade, investments, and technology is important.
• The world economy relies on each other for goods, services, and capital.
• Apple Inc. designs products in the U.S., manufactures in China, and sells globally.

Indicators and Manifestations of Economic Globalization

• General analysis focuses on international trade, financial transfers, and foreign direct investment.
• International Trade and Development: trade agreements like NAFTA, CAFTA, and FTAA facilitate trade, reduce barriers, and increase the flow of goods/services.
• The U.S. imports avocados from Mexico under NAFTA.
• Multilateral Agreement on Investment (MAI): treaties to protect investors and ensure fair treatment across borders are key.
• Transnational Corporations (TNCs): companies that operate in multiple countries, like Coca-Cola in over 200 locations are important.
• Foreign Direct Investment (FDI): a company invests in a business in another country is evident.
• Toyota building car factories in the U.S. is an example.
• World Trade Organization (WTO): sets and enforces international trade rules.
• The WTO mediates trade disputes between the U.S. and China.
• World Bank and International Monetary Fund (IMF): the World bank provides loans to poor countries for development, requiring economic liberalization.
• The IMF acts as a lender during economic crises, imposing austerity measures.
• Greece received bailout funds from the IMF that had strict economic reforms.
• Global Taxes: taxes on international transactions fund climate change and poverty initiatives, requiring democratic oversight.

Actors of Economic Globalization

• Entities, both public and private, influence global economic processes.
• International Chamber of Commerce (ICC): promotes liberalization, related to WTO, G20, OECD, and advocates reducing trade barriers.
• Bilderberg Group: privately facilitates international capitalist coordination with members from governments, corporations, and labor organizations like IMF, World Bank, Trilateral Commission, EU, and NAFTA.
• The group discusses global economic policies.
• Trilateral Commission: promotes collaboration among North America, Europe, and Japan involving the Council on Foreign Relations (CFR), G7, and G8.
• The commission works on policies stabilizing the global economy.
• World Economic Forum (WEF): gathers global leaders to discuss strategies linking the World Bank, IMF, and GATT.
• The annual WEF meeting in Davos addresses global challenges.
• World Business Council for Sustainable Development (WBCSD): coalition focused on sustainable development and protection.
• UNEP and UNCTAD are related organizations.
• Unilever and Nestlé are part of WBCSD which work on environmental impact.

Theories of Economic Globalization

• Neoliberalism: advocates for free markets, privatization, and reduced government intervention.
• Dependency Theory: argues poorer countries are exploited by richer countries through the economic systems.
• World-Systems Theory: divides the world into core, semi-peripheral, and peripheral regions.

Crises of Global Capitalism

• Economic Inequality: the gap between rich and poor is widening because of globalization.
• Financial Crises: interconnected markets mean a crisis in one country (e.g., 2008 U.S. housing) affects the entire world.
• Environmental Degradation: globalization often leads to overexploitation.

Key Takeaways

• Economic globalization: driven by trade, investment, and technology which make economies interconnected.
• The key players: TNCs, international organizations (WTO, IMF, World Bank), and economic forums (WEF, Trilateral Commission).
• Challenges: inequality and environmental issues arise from globalization, despite economic growth.

Theories of Global Economy

• The global economy refers to interconnected economic activities.
• Neo-Marxism and World Systems Theory analyze global capitalism and its structure.
• Global capitalism faces multiple crises, influencing political, economic, and social dynamics.

Neo-Marxism

• Developed by Immanuel Wallerstein, focusing on capitalism's negative effects.
• Highlights the divide between capitalist elites and disenfranchised workers.
• Labor commodification exacerbates inequality.
• Sweatshops are an example.

World Systems Theory

• There is one world economy divided into core, semi-peripheral, and peripheral groups:
• Core economies are dominant and industrialized.
• Semi-peripheral economies rely on and support core economies.
• Peripheral economies provide raw materials and cheap labor.
• The U.S. and Germany (core) rely on China (semi-peripheral) for manufacturing and African nations (peripheral) for raw materials.

The Multiple Crises of Global Capitalism

• Crisis of Overproduction: supply exceeds demand, leading to economic downturns stemming from globalized production.
• The Great Depression and 2008 crisis resulted from overproduction.
• Crisis of Legitimacy: neoliberalism struggles to justify its dominance amid rising inequality.
• Protests against austerity measures demonstrate economic instability.
• Crisis of Liberal Democracy: economic disparity fuels discontent.
• The rise of populist leaders demonstrates popular dissatisfaction.
• Overextension (Imperial Overstretch): expansion of military and political influence without sufficient resources occurs.
• U.S. military interventions in Afghanistan and Iraq led to prolonged conflicts.

Rise of Anti-Corporate Globalization Movements

• Public backlash: corporate control, free trade agreements, and neoliberal policies occur.
• Anti-globalization protests during G20 and WTO summits promote fair trade and worker's rights.
• World Social Forum and the Construction of a Global Community: alternate movements promote social justice.
• It encourages collaboration between activists, labor unions, and indigenous groups.

Summary

• The global economy is shaped by core, semi-peripheral, and peripheral nations.
• Neo-Marxism and World Systems Theory highlight capitalism's inequalities.
• Global capitalism faces crises that create economic instability, political unrest, and military overreach.
• Anti-globalization movements challenge corporate dominance to build equitable structures.

Notes on the Market Integration

• Market integration refers to the interconnectedness of global economies through trade, finance, and corporate expansion.
• International financial institutions play a key role in shaping market structures and economic stability.

International Financial Institutions

• Macroeconomic and Microeconomic Policy: restore market confidence.
• Countries in financial crises receive IMF assistance to stabilize currencies.
• Financial Restructuring: challenges in restructuring banking systems include limited capacity, fewer strong banks, and complex involvement.
• The 2008 financial crisis led to major banking reforms.
• Corporate Governance: governments correct tax policies to reduce debt-equity ratios.
• Transparency: regulations require companies to maintain transparency in financial reporting to avoid crises like Enron.
• Preventing Crises by Controlling Capital Flows: create strong policies and control measures in Malaysia.
• The Importance and Limitations of Information: monitoring and surveillance become more challenging.
• The Role of the World Bank: Focuses on long-term development.
• The World Bank funds infrastructure projects in developing nations.

History of Global Corporations

• Trade and Exchanges (17th Century): trading companies facilitated global commerce.
• East India Company exploited trade with India, East, and Southeast Asia between 1600-1708.
• Colonialism and Imperialism (19th Century): colonial powers expanded economic and political control with increasing use of the terminology of Imperialism.
• Rodelf Hilferding discusses the new phase of capitalism and financial capitalism in his book, explaining holding and sister companies.
• More economic research shows that Germany and Japan raise-up economic process of globalization

Types of Corporations

• International Companies: trade but do not invest outside their home country like a small business that exports products.
• Global Companies: invests in multiple countries and adapts to each market like Coca-Cola.
• Multinational Companies: have investment in other countries, adapt products, and services, and focus on products and services.
• Transnational Companies: invested in foreign operations with powers for all individual markets.
• Unilever allows each country to manage its own marketing strategies.

Summary

• Market integration is driven by financial institutions, strategies, and policies.
• Financial institutions regulate economic stability and development.

Notes on the Global Interstate System

• The global interstate system refers to how states interact under international norms and institutions.
• Globalization affects government decisions, sovereignty, and cooperation.

Effects of Globalization on Governments

• Governments must adopt neoliberal policies.
• There is a growth of treaties/universal principles like The Paris Agreement.
• There is a rise in global civil society that influences policies beyond borders like Greta Thunberg's climate change policies.
• New communication networks and more efficient communication occur.

Institutions that Govern International Relations

• Intergovernmental Organizations (IGOs): created by treaties where states work on common issues.
• IGOs require states to abide by agreements.
• The United Nations facilitates cooperation on human rights.

Attributes and Functions of IGOs

• IGOs are not replacements for government, as they do not govern.
• They help manage international relationships and resolve disputes.
• Member states use IGOs to create norms, enforce laws, and support operations.
• The IMF provides aid for policy reforms.

IGOs as Instruments of International Policy

• Provide forums for international discussion/negotiation.
• Influence/impact state policies.
• Sustain through treaties and agreements.
• The World Trade Organization sets global trade laws.

Internationalism and Globalism

• Internationalism: focuses on cooperation.
• it encourages agreements and global institutions.
• Globalism: seeks interconnections and underlying patterns.
• The world has become more interconnected with different operations.

Summary

• Globalization has reshaped the role of governments, requiring them to adapt to international norms.
• IGOs play a crucial role in maintaining global stability by enforcing agreements and encouraging cooperation.
• Internationalism promotes closer relations between states, while globalism examines the broader interconnected world.

Notes on Contemporary Global Governance

• Global governance: balancing different interests via stability.
• Effective depends on cooperation.

UN Organs and Roles

• General Assembly: main policymaking body composed of 193 member states.
• Security Council: maintains international peace and security.
• Economic and Social Council (ECOSOC): coordinates policies on issues.
• International Court of Justice (ICJ): settles disputes between countries.
• Secretariat: executes UN mandates.
• Trusteeship Council: provided supervision for self-government.

Role of the UN

• Confronts challenges.
• Has a space for voices and prospective opinions.

Functions of the UN

• Maintains peace and security by deploying peacekeeping missions.
• Protects Human Rights by monitoring potential global abuses.
• Delivers aid to people/areas that are in conflicted or disaster situations.
• Promotes sustainable development.
• Upholds International Law in various regions and international relations.

Challenges of Global Governance in the 21st Century

• Veto Power limits global action.
• No direct enforcement mechanisms so some members ignore sanctions and continue practices.

Relevance of the State Amid Globalization

• States remain in governance.
• International organizations result to state cooperation and legal frameworks.
• Example: The Paris Agreement is led by state's commitments.

Summary

• Is reliant on institutions that encourage security & peace.
• Continual challenges of security and veto power.
• Globalization: States are always key in the world.

The North and the South.

• The world is made up of the Global North and South: which is based on political stability as well as industrialization.
• The North is consistent of developed countries, yet the South includes the less developed

Global North

• Key regions are in US, Canada, Western Europe, Australia, and parts of Asia.
• Home to "economically powerful" members.
• 90% own manufacturing industries.
• 95% of population has basic elements such as safety and basic housing.

Division Notes

• The North is more aligned with developed countries and the South is more associated with the opposite .

Global South

• is made up of Africa, Latin, and developing parts of Asia.
• More undeveloped and less wealthy areas.
• Only 5% of the population has safety factors.

More division notes

• South has little power to compete with global trading.
• The North can still get ahead while others try to compete.

Migration Pattern

• Many south migrate to the north due to the promise of a better lifestyle.
• Most of the south goes to central America and more parts across Europe.

Zone of Turmoil

• The Global South goes through many challenges from being hurt by natural disasters and other similar situations.
• Still struggling though democracy has spread around since 1980s.
• The South struggles to adapt/create their own technology.

Summary Notes

• The division is a result of inequalities within the South.
• The north has come a long way and as it progresses it will continue to favor the North.

Theories Explaining Economic Disparities

• Internal Factors: Classical Economic Development Theory- due to internal deficiencies, the wealthy nations can provide aid/ supply aid components.
• There has to be progress, no matter what, for economic standards.
• There will always be global inconsistencies.

Theories explained pt 2.

• Global inequalities persist because developing nations specialize in primary products with limited market demand.
• South Korea and Taiwan have changed into manufacturing economies.

Summary.

• The South continues to struggle as it has many components holding it back.
• While the North and South divide, The South will be held in economic and financial systems.

Notes on Asian Regionalism

• Asian regionalism refers to the process of cooperation.
• Key learning objectives includes- differentiation, identify and analyze Asian response.

More notes on division and analysis.

• Globalization is the integration of social relations etc.
• There is an integration economically.
• Regionalism is when countries have a natural connection.

Asian Integration

• This is driven more by the market and key economical areas.
• The market has exchanges/trade for economics.
• There is a key amount of institution that uphold these systems.

Final Asian Notes

• Each country has different special areas such as the Philippines and Indonesia.
• The Asian bond Initiative is one of the key areas.
• This Asian model puts different ideas/systems together making it complex.

Third way Asian

• This wave in Asia puts the middle class in a stage of formation in the making of being regional.
• States/societies act as the backbone to the regional formation.
• Japan engages in Asia through different ways of the key elements.

Final notes of Asia

• The class plays a key role in shaping the landscape/ecosystem.
• Globalization has its part in aspects.
• The Asia mode puts all elements together for more cohesion.