Waves of Globalization

• Globalization is constantly changing the world
• This unit will examine how globalization has shaped and influenced every aspect of human lives and civilizations
• Chapter 1 focuses on defining globalization, identifying its different forms and manifestations, tracing its history and evolution, and explaining its nature and purpose

Waves of Globalization

• Trading goods has occurred since the beginning of humankind

• Intercontinental trade began as early as the 1st Century BC with silk and spices bartered between Asia and Europe

• During the 15th Century, trade expanded due to the Scientific Revolution, which introduced discoveries in astronomy, mechanics, physics, and shipping

• These discoveries led to the discovery of the Americas by Columbus and aided Magellan's circumnavigation

• This connected the East and West, ended pre-Colombian civilizations, and opened roads to the Spice Islands

• Economists don't consider this era the foundation of globalization

• Europeans created a mercantilist economy, but it was an uneven global economy as they built empires and exploited colonies

First Wave (1860-1914)

• True globalization began by the end of the 18th Century with Great Britain's dominance through the British Industrial Revolution

• Innovation of industrial machines gave Britain the ability to produce goods like iron, textiles, and manufactured goods

• Innovation of the steam engine created steamships and trains, allowing goods to be transported within and across countries

• Trade grew an average of 3% per year since the industrial revolution, according to the World Economic Forum (2019)

• Exports rose from 6% of global GDP in the early 19th Century to 14% on the eve of World War I

• Investment also flourished, with entities in New York, Paris, London, and Berlin investing in internationally active joint companies

• Railways were built in India, and mines were managed in African colonies

• The French Compagnie de Suez's construction of the Suez Canal connected the Mediterranean with the Indian Ocean

• Countries like India, China, the Philippines, and Mexico were outcompeted by Western colonial powers

• Workers in industrialized nations experienced commoditization of their work and were undercut by foreign exports

Second and Third Wave (1946-present)

• The first wave of globalization ended with World War I from 1914 to 1918, which ended globalization and the reign of the high societies of the West

• War replaced trade, infrastructures were destroyed, countries closed their borders, and financial markets collapsed

• World War II followed in 1939-1945

• By the end of the World War II, trade fell to 5% of the world's GDP

• Economic integration was championed by international organizations, including the World Trade Organization (WTO).

• WTO encouraged nations to enter free-trade agreements

• In 2001, China became a member of the WTO

Liberalism

• Liberalism is a political and moral philosophy

• Based on individual rights, liberty, consent of the governed, political equality, right to private property, and equality before the law

• Liberals believe that humans have a natural desire to exercise their freedoms and maximize their well-being

• Technological developments, particularly in communication and transportation, and legal and institutional undertakings enable the liberalization of markets

• The explanation of liberalism comes from scholars in the field of Business Studies and Economics

• They promote the necessity of institutional structures to navigate the globalization process

• Standardization of processes, harmonization of administrative bodies, language translation mechanisms, laws of contract, and property rights ensure global relations are easier

Political Realism

• Political realists believe that states are inherently self-serving, making competition for power inevitable
• Some realists believe in the balance of power
• One state will attempt to dominate the world and will be opposed by the collective resistance of other states
• Most realists claim that a dominant state brings stability to the world order
• A hegemon is the dominant state, which is presently the USA
• The hegemon determines international rules and controls international institutions, advances its national interests, and mediates interstate conflicts

Constructivism

• Constructivism has an apolitical tendency

• Constructivists typically come from the fields of Humanities, Sociology, and Anthropology

• The theory concentrates on people's mental construction of the social world

• It holds that one's personal perception and symbolic exchanges with others help them construct ideas of the world and belongingness

• Constructivism is based on the idea that people actively make their own knowledge

• Reality is determined by experiences as a learner

• Learners use previous knowledge as a foundation and buildup on it with new things

• Globalization is a result of people's individual consciousness and inter-subjective communications

• Constructivists perceive themselves as citizens of a particular world with nationality, culture, or religion

• However, constructivists tend to ignore the material conditions and significance of economic, political, socio-cultural, and ecological forces

Marxism

• Marxism is a social, economic, and political philosophy

• Analyses the impact of the ruling class on the laborers

• Leading to uneven distribution of wealth and privileges in the society

• Class is the point of analysis in the study of globalization

• Capitalism is fueled by class struggle

• There is conflict between the capitalists (who own the means of production) and the working class (who provides labor)

• The first class dominates while the latter is subordinated

• Globalization causes inequalities as one class dominates the world

• The bourgeoisie keeps generating income while the proletariat are exploited and alienated from their own products