Understanding Globalization

Lesson 1: The Concept of Globalization

• Globalization increases the interconnectedness, integration, and interdependence among people, businesses, nations, and economies.
• It is a multifaceted exchange across national boundaries encompassing goods, services, information, technology, capital, and ideas.
• Globalization is the growing interaction of people, states, and countries through increased flows of money, ideas, and culture.
• It involves liberalizing countries' impact protocols to welcome foreign investment into essential economic sectors. Jet engines, e-banking, the internet and e-books, and e-bikes contribute to globalization. – Major factors include infrastructure advancement. This can lead to increased economic and cultural interdependence among countries.
• Globalizing processes impact business/work organizations, economics, socio-cultural resources, and the natural environment. These processes are associated with interconnected challenges like climate change.
• Perspectives on globalization include: "Globaloney" which asserts it doesn't exist or that it exists as an economic, political, and cultural process.

The Meaning Of Globalization

• Globalization impacts cultural identities, practices and experiences in today's world.
• It includes economic systems, policies, and practices worldwide.
• Globalization as a political process impacts political systems, ideologies, and dynamics, especially nowadays.
• Globalization is defined as the expanding capitalist system worldwide.
• It began in the 16th century with strong states supporting elite classes, exploiting labor/resources, and seeking capital accumulation through competing firms.
• Globalization facilitates the shrinking of time and distance.
• It allows greater and more widespread access to science, technology, education or healthcare.
• It can occur to reduce high transportation costs or from the creation of the WTO (World Trade Organization), which allows cross-border trade to occur.
• Globalization is viewed as virtually synonymous with the rise of world capitalism, not a recent phenomenon.

Indicators of Globalization

• Technological advancements like the internet, high-speed trains (LRT, MRT) and e-commerce platforms have spurred globalization.
• This has created further interdependence in economic and cultural activities.
• Environmental challenges need the gathering and sharing of information across disciplines, institutions, and other entities on a global scale.
• International trade makes it easier for consumers to find valuable products while driving multinational and transnational corporations in the country

Theoretical Paradigms

• World Polity Theory focuses on the importance of the state. There is also a strong emphasis on global cultural organization.
• All encompassing societies have world culture and must follow cultural rules to deal with world issues.
• Key elements include a general, legitimized model of state formation. These organizations should help build world culture and world society.
• World Culture Theory considers the world complex.
• Globalization compresses the world into a single entity where humans are aware of this global presence.
• How to coexist within a single worldwide system must be examined.

Misconceptions About Globalization (Jan Aart Scholte)

• Globalization, as defined by Scholte, isn't simply Westernization or Americanization. It includes interactions across diverse global cultures.
• It is not a new development unique to the late 20th century. Processes of global interconnectedness have been ongoing for many years.
• Globalization can enrich cultural diversity with an exchange that fuses global elements and local traditions
• Globalization involves social, political, and ecological concerns, not just economics.
• Globalization's trajectory is driven by human choices and policies that should be managed and directed.
• Benefits aren't equally distributed. Globalization creates winners and losers, with inequality within and across affected countries.

Advantages of Globalization

• Globalization allows for increased trade and investment flows.
• Countries have better standards of living by improving access to a wider variety of goods, services, and resources.
• Improves productivity and innovation by ensuring innovation spreads.
• There is better peace and understanding by exchanging ideas and values and creating diverse perspectives.
• Goods and people are transported with more easiness and speed
• Free trade between countries increases to connect people in the world.

Disadvantages of Globalization

• Can create an income gap between wealthy societies and poorer people
• There is potential for job loss is industries that fall behind in global cooperation.
• Could diminish cultural identities with an over-reliance on global trends.
• Could increase environmental degradation and the over-exploitation of natural resources.
• A rise in population which poses environmental challenges for the future.
• Pollution and climate change caused by trade across oceans and land.

Lesson 2: The Structure of Globalization

• Economic globalization entails widespread international trade in goods, services, capital, technology, and information.
• Global economy refers to the international exchange of goods and money. It also refers to the free trade of necessary factors for success.
• Important trends include trade liberalization, financial flows, technological advancements, and geopolitical dynamics.

World Systems

• The modern world economy is split up to the core of a country. -The Core is used for economic activities where services and institutions are based while the raw materials are sourced in the periphery

Structures of Global Economy

• The IMF (International Monetary Fund) helps countries and monitors global economic issues.
• A group of five institutions works together to reduce property.
• The IBRD (International Bank for Reconstruction and Development) is responsible for providing loans to countries that require them.
• The IDA (International Development Association) provides grants for countries that can face development challenges.
• The IFC (International Finance Corporation) promotes private sectors in countries.
• The MIGA (Multilateral Investment Guarantee Agency) assists lenders and provides political enhancement.
• ICSID (International Centre for Settlement of Investment Disputes) offers a neutral platform for dispute resolutions.
• WTO (World Trade Organization) aims to promote free and fair trade with the goal of economic benefit.
• RTA (Regional Trade Agreements) aims to improve economic cooperation for countries
• Multinational Corporations impact the economy and engage in supply and demand activities to grow global trade.

Neoliberalism

• Advocates for a smaller government and policies like reduced spending.
• Is rooted in free markets with deregulation that encourages competition and globalization in economic development.
• Impacts governance with emphasized individualism, personal responsibility to privatize government spending.
• Criticized for safety nets, healthcare, environmental degradation and eroding social cohesion.

Global Economy Factors

• Macroeconomic policies from central banks and governments have a profound effect
• International Trade plays vital role in the global economy and is affected by things tariffs
• Currency markets, stock exchanges and bond markets are important components

Economic Trade Conflict

• Taiwan has the world's advanced memory ships
• TSMC (Taiwan Semiconductor Manufacturing Company) can impact automotive and electricity industries
• Taiwan Strait is a crucial shipping route
• Russia and Ukraine escalate the economic challenges
• Because Russia and Ukraine export fuels, they can impact energy and prices
• Ukraine declares Independence
• Sanctions influence inflation as well

The Role of Global Corporations

• Creates globalization links for countries as capital increases
• Factories now allow cheap labor and raw materials available to develop as countries

Global Income Equality

• Nations are divided between power with an inequality in monetary policy

Lesson 3: Market Integration

• Market integration integrates related markets to produce related product.
• Call centers in the Philippines cater to the international market
• Market Integration relates different markets
• There are horizontal and vertical integrations

Horizontal vs Vertical Integration

• Horizontal is when a firm gains marketing sequence like a product.
• Vertical is when a company owns procedures with another marketing tool like land for supplies
• Market integrations creates a connect with other parts to make an economy system
• Trade restrictions such as tariffs and quotas are related to economic success in the marketplace.
• There is an increased rate of economic support when it comes to globalization
  • Countries take advantage of global chain where they have an upper edge

International Financial Institutions (IFIs)

• International Monetary Fund (IMF) is an international organization with 183 member countries to promote international monetary cooperation.
  • The primary purpose is to provide global monetary cooperation to monitor the system
    • Prevents trade wars that happen due to state currencies
• World Bank assists investments with countries and is also owned by 187 countries.
  • Works with governments effectively
• European Investment Bank betters the objectives for long term projects
• Islamic Development Bank fosters social progress for members
• Asian Development Bank aids to provide infrastructure for countries in energy and labor.

Market Integrations Key Examples

• Enhances the adoption of euro for each state
  • Eliminates any fluctuations for easy trade
• Makes trading between members countries more efficient with money.
• Euro helps consumers compare prices easily

Asian Integration facts

• Started on August 8, 1967 in Bangkok, Thailand
• Founding Members
  • Indonesia – Malaysia -Philippines -Singapore -Thailand
• Additional Members
  • Brunai (1984
• Vietnam (1985) Lao PDR and Myanmar (1997) -Camboia (1999)

Asian Economic Community (AEC)

• Launched in 2015 in Kuala lumpur and aimed towards economic integration. -Aims to establish cohesive economy where the movement of goods services and investments is possible. -Wants to promote competition with innovation and global market
• ASEAN Community Vision for 2025 aims improve social progress, resource capacity, economic integration and human rights.
• APSC aims to increase security around the world with stable regulations.

5 core Principles ASEAN Single Market

• Create a frictionless and functional flow of goods through trade and enhancement.
• Focuses on minimizing travel distances within ASEAN and enhance efficiency sector.
• Promotes attractive investments world wide in a world of fairness. – Focuses on establishing capital within borders while stimulating access.

Lesson 4: Market Globalization

• Market globalization is driven driven by trade liberalization and corporations
• Market globalization enables businesses to access multiple countries and establish production to enable efficiency.
• Key aspects of its impact include increasing productivity and extensive market access.
• Access to international markets has increased as trade goes global

Factors for a Global Economy

• Globalization has contributed with communication and share.
• The Internet has revolutionized consumer interactions and global commerce.
• MNC enable investment on a global scale.
• As cultures begin to have exchanges a risk homogenization can occur
  • Trade imbalance can create a risk among consumers
• Technological and financial and cultural advancements have brought society closer.
• Climate Change has increased and needs policy changes with environmental and production.
• Technology allows countries to stay open and e-commerce with advanced logistics.
• Trade liberalization encourages stability with reduced tariffs.

Key Historical Context that contributes to globalization market

• Colonialism and imperialism led the development for global trade by introducing colonies for power.
• Industrial revolutions has increased economy as multinational cooperations were formed

From Laissez Faire to Neoliberalism

• Laissez-faire is a government with little interference.
• Neoliberalism proposes to improve well being with free markets.

Lesson 5: Current Trends and Issues in Globalization

• Include technological advancement, economy and environment.
• They help to identify market preferences.
• Issues are those that arise that effect society that are dealt through policies.

Current Trends and Issues in Globalization for 2024

• Artificial Intelligence and Automation can help speed up certain processes but can cause displacements.
• Connectivity helps improve the internet throughout the world but can cause privacy issues.
• Green Economy Transition can promote renewable energy and address climate change.
• Enviromental Regulations policies can help the world preserve trade and reduce resources.
• There is work to ensure stability during health conflicts and strengthen health equality.
• With current trends the is work to improve world access.
• Global social movements with human rights is increasing.

In Conclusion

Globalization is the interaction of multiple different aspects all working towards economic balance and trade improvements to ensure the improvement of society.