Understanding Globalization: Key Concepts

• Plagiarism is the use of others' language and ideas without proper acknowledgment.
• It involves adapting or reproducing original intellectual creations without acknowledgment.
• Plagiarism ranges from borrowing phrases to paraphrasing ideas without citation.
• Copying and pasting online material without crediting the source is a common form of plagiarism.
• Students must practice Academic Honesty, and academic misconduct may lead to penalties.

Academic Honesty Pledge

• Students pledge not to submit others' work as their own.
• Students pledge not to take passages from previous work without citations.
• Students pledge not to rewrite someone else's work without citing sources.
• Students pledge not to use quotations or interweave sources without citing.
• Students pledge not to rely too heavily on others' work.
• Students pledge to bring original thought into their work and not disclose exams/questionnaires/activities.
• Students also pledge not to copy material from or share completed outputs with other students.

Globalization Definition

• Globalization involves the growth of transports and communications enabling easy exchange of information and goods. It represents the global integration of trade, investment, technology, and cultures.
• Government policies that open economies to boost development in poorer countries drive globalization.
• Traders historically sought rare commodities, and the Industrial Revolution advanced communication and transportation, leading to increased cross-border trade like the Silk Road

World Health Organization Perspective

• Globalization: Increased interconnectedness and interdependence of people and countries.
• It involves opening international borders and facilitating flows of goods, services, finance, people, and ideas.
• Globalization has positive and negative effects on development and health.

Thomas Friedman Perspective

• Globalization: integration of markets, transportation, and communication, enabling corporations, countries, and individuals to reach around the world.
• It allows corporations, countries, and individuals to reach farther, faster, deeper, and cheaper than ever before

Manfred Steger Perspective

• Globalization should be used to refer to transformative social processes. Transformative processes change our current social conditons into one of globality

Economic Perspective

• Simplified, globalization involves the flow of goods, services, investment and trade between nations with few barriers. Culture is assimilated through the exchange of ideas and traditions.
• The spread of Korean pop culture exemplifies this exchange.
• Globalization allows easy movement of people and goods across borders.
• It gives definition to the world's market

Advantages and Disadvantages

• Globalization is debated as beneficial or detrimental, affecting people differently.
• Standards of living have risen with industrialization in third world countries, enabling cooperation between nations.
• Multinational companies contribute to local economies by investing in products, resources, services, and facilities.
• However, some believe life was better in the past, with potential job losses due to cheaper products from other countries.

Negative Impacts

• Globalization contributes to global warming, climate change, and overuse of natural resources.
• It increases homogenization in countries and economic/political polarization
• Outsourcing leads to international job competition.
• International chains from developed countries dominate cultural exchange, influencing other countries disproportionately.

Economic Globalization Definition

• Economic globalization: Increasing interdependence of world economies through cross-border trade, capital flow, and technology spread.
• It reflects the expansion and integration of market frontiers
• Driving forces: rapid growing significance of information in all types of productive activities and marketization.
• Global trade emerged when heavily populated continents began to exchange products continuously with lasting impacts.
• Companies seek efficient and maximized profits
• New technology will allow the intense movement of information, goods, services and people can create an environment of “new economy" increasing the networks in global production, free trade and capital.
• The engine of globalization provides technological advances and differences between regions, enabling financial market development.

Trade

• Trade occurs due to resource scarcity and the need for resources. Historically, international trade played a significant role in industrial development.
• Imports offer better/cheaper quality or lack alternatives. Technological change and deregulation/liberalization enabled the development of financial markets.

Global Actors

• The multinational corporation: Business with activities in more than two countries, defining foreign direct investment.
• The International Monetary Fund (IMF), founded in 1944: Secures international monetary cooperation via research and monetary advice.
• The North Atlantic Treaty Organization (NATO): Based on the North Atlantic Treaty.
• It considers an attack on one member as an attack against all
• NATO is headquartered in Brussels, Belgium

Institutions

• The World Trade Organization (WTO), IMF, and World Bank: Underwrite the rules of economic, monetary, and trade relations.
• Developing nations have loosened trade rules under pressure from the IMF and World Bank.
• Domestic financial markets in many countries are underdeveloped and lack laws, administrative setup/judicial systems cannot guarantee social stability, and political stability
• As a result, most multinational corporations invest in specific geographic locations.
• Early 20th century events led to desire for a new monetary system to stabilize exchange rates and reduce balance-of-payments deficits.
• Delegates representing 44 countries created the Articles of Agreement for an International Monetary Fund in 1944.
• The Bretton Woods monetary regime aimed to promote world trade by maintaining convertible currencies.

IMF Objectives

• Countries with deficits were expected to borrow from the IMF instead of imposing controls or devaluations.
• The Articles of Agreement entered into force on December 27, 1945 Its headquarters later located in Washington, D.C
• Rapid globalization is based on science and technology advancements, market system spread, and cross-border division of labor.

Market Integration Definition

• Market integration involves fusing many markets into one global market.
• Prices between countries are eliminated so they converge.
• If the costs of trading across the country falls, other firms will take advantage of price differences
• A commodity has a single price within one market area.
• Differences in institutions between countries create trading costs. Differences create trading costs stemming from differences in property rights, legal systems, and regulatory regimes.
• Complete integration requires ironing out legal/regulatory differences.

Harmonization and Political aspects

• Some economists believe global markets drive harmonization of institutions.
• Governments may cut tax rates and loosen regulations to attract multinational investment
• Economic interest became part of a political strategy transforming people into individual political economic subjects.
• The aim is assessing and influencing behavior, governments want to deal with individual interests to serve their own interest.
• The main issue in the politics of states will be to figure out ways to anticipate what might happen in order to influence economic expansion.

Adam Smith Perspective

• There is a need to understand what human being actually is and what can be done in this world with humans as they actually are.
• Social contract and workings of society should be studied on natural human basis.