Understanding Globalization

Globalization

• A historical process that began based on trade and migration
• It is the result of opening up the global economy and increase in trade
• Characterized by interconnectedness and integration of the economies of the world
• Involves ongoing growth of interconnection and interdependencies in economics, politics, and culture
• Solidity: characteristics of being limited in one place
• Global age is fluidity, characterized by flows of liquid phenomena like people, objects, decisions, information and places
• Expanding international capitalism through international organizations like the UN, World Bank, IMF and WTO
• Capitalism: privately owned industries that focuses on profit

Conceptual Metaphors and Manifestations

• Phases of matter in globalization: solid, liquid, and gas
• Weight of globalization: heavy (pre-industrial), light (transportation), weightless
• Manifestations include spatial reorganization of production and interpenetration of industries across borders
• Spread of financial markets and diffusion of identical consumer goods to distant countries, accompanied by massive transfers of population

Broad Approaches

• Globalization has been ongoing since the dawn of history (50,000-10,000 years)
• It is liked to the spread and development of capitalism (500 years)
• Associated with post-industrialization (20-30 years)

Core Claims

• Globalization involves the Liberalization and Global Integration of Markets
• It is considered inevitable and irreversible
• Nobody is in Charge of Globalization
• Claims that Globalization Benefits Everyone
• Furthers the Spread of Democracy in the World
• Requires a Global War on Terrors

Dimensions of Globalization

• Economics: international movement of goods, services, tech, info
• Politics: wider engagement in politics from local to international (EU, IMF, WB, WTO)
• Culture: transmission of ideas, meanings and values around the world
• Religion: encourages religious pluralism
• Technology: quicker transfer of information through technological advancements spreading of tech across borders.

Global Issues and Impacts

• Global issues include population, food production, energy - climate crisis, military issues, economy, environmental - pollution and poverty
• Impacts include people in deprived parts of the World-spread of democracy and growing demands for political demands.
• People in Richer Countries - sense of global community and transnational solidarity
• Unskilled and Indigenous People displaced

Theorizing Globalization

• Imperialism: gain control of another country and then exercise political, economic and territorial control
• Colonialism: setting up colonies and settlements then eventually taking over the system
• Decolonization: revealing and dismantling colonialist power in all its forms
• Neo-liberalism: growth of a complex international system of economic independence with free trade, free capital, freedom to invest and Laissez-faire

Structures of Globalization

• Economy is the system of trade by which the industry by wealth of a country is made and used
• Silk Road (1st global trade route) (China), Galleon trade (Spain)
• Commodities: first link, goods that are collected and processed for use (OIL, SUGAR)
• Trade: driving force behind international relations

Great Depression and Bretton Woods

• Great Depression: The stock market crash
• It had negative effects such as unemployment, poverty and widespread bank and business failures
• Bretton Woods Agreement states that gold as the basis for USD and other currencies were attached to the value of the U.S dollar

Breton Woods Institutions

• The World Bank and the International Monetary Fund (IMF) were created to have a stable monetary system

World Bank

• Post-word reconstruction and economic development in developing countries
• Reduce poverty by lending money to the governments of its poorer members to improve their economies and standard of living

International Monetary Fund (IMF)

• Promotes global economic growth and financial stability and encourages international trade

WTO History

• International Trade Organization, unsuccessful
• General Agreement on Trade and Tariffs, trade in goods only
• World Trade Organization focuses on goods and services

Trade Related Measures

• The Trade-Related Investment Measures involve investment measures & restrictions that can affect how multinational corporations (MNCs) invest and operate in a country
• It aims to impose foreign firms to keep them from having a distorting effect
• Trade-Related Aspects of Intellectual Property Rights – intellectual property protection

Global Economy

• Transactions increase in the world's population has led to emerging markets growing economically
• Free trade allows countries to specialize in production of goods which have a comparative advantage

Factors Affecting Global Economy

• Movement of labor is an advantage for the recipient country and for workers
• Increased economies of scale has led to advantageous economic factors such as lower average costs and lower prices
• Increased investment to attract investments to developing countries assisting improve their economies
• Factors that affect the global economy: population and infrastructure

Global Economic Integration

• The number of factors contribute to global economic growth and number of factors and trends
• Market Integration: prices are defined by geographical location

ASEAN Free Trade Area

• ASEAN helps products produced within member nations compete in the global market, attract foreign direct investment in the region and increase trade

Factors that Contribute To Global Economic Growth

• Privatization: Transfer of ownership from the government to private sector
• Deregulation: Process of removing or reducing state regulations
• Foreign direct investment (FDI): Investment in the form of controlling/ ownership of a business in another country
• Trade liberalization: Removal or reduction of restrictions/barriers on exchange of goods between nations

Organizations and Systems

• Wallerstein's World System Theory describes a world that has boundaries, structure and rules
• The Brandt Line (Willy Brandt, 1980) is an invisible line across that divides the rich north from poor south

Organizations in Globalization

• Intergovernmental (International) Organizations: consists primarily of sovereign states or other intergovernmental organizations
• Supranational Organizations: collective governance
• International Non-Governmental Organizations: non-governmental organizations that extend to an international scope

Corporations

• Multinational Corporations (MNCs): global corporation that has business in another country aside from their home country
• Transnational Corporations (TNCs): corporation that has business in another country through subsidiaries

International Political Definitions

• In an international context, a nation is an "imagined community" and does not go beyond a given "official boundary"
• Nationalism is the doctrine and political movement based on the nation being the basis of a political structure especially a state
• Internationalism is the desire for greater cooperation and unity among states and people; liberal internationalism and socialist internationalism
• State is a community of persons occupying a definite territory and encompasses citizens, territory, government, and sovereignty

UN Main Organs

• Secretary General: represents UN
• Security Council: maintenance of international peace and security
• General Assembly: policymaking organ
• International Court of Justice: Settling disputes between states
• Economic and Social Council: Coordinating the economic and social fields of the organization
• Trusteeship Council: Supervising the administration of Trust Territories

Globalization and Globalism

• Globalization occurs as national/regional economies have become integrated through global network of trade, communication, immigration, transportation
• Globalism is an ideology based on the belief that ppl, goods, and info are able to cross national borders