Contemporary World Notes PDF

CONTEMPORARY WORLD NOTES Globalization  Globalization for the  While economic globalization is o Technologists: development of advantageous overall, one downside is the...

CONTEMPORARY WORLD NOTES Globalization  Globalization for the  While economic globalization is o Technologists: development of advantageous overall, one downside is the faster communication tech increased power of nations or international o Economists: growth of unions to influence disadvantaged nations. transnational trade and connections  In the theory of Global Interstate System, o Statesman: decline of nation’s sovereign states establish relationships sovereignty with other states and their collective o Neoliberalist: emergence of global movement influence the flow of world conflicts and institutions economy.  Because of increased trade, globalization  Economic globalization—the extension of increases consumer choices. economic activities of nation-states across borders. Internationalization—functional  Globalization has increased income integration between internationally inequality under the lens of dependency dispersed activities. theory and global systems paradigm. Hence, inequality in not universal. Some  Borderless society refers to a hypothetical places have reduced income inequality; society without geographical boundaries or increased in some regions. restrictions, where movement, trade, and information flow freely across national borders. Features:  Globalization has also led to labor o Minimal restrictions on the outsourcing to lower-wage countries. movement of goods, services, and people.  Factors that contribute to globalization o Unimpeded flow of information, include advances in tech, reduction of trade ideas, and cultural exchange. barriers, and increased mobility of both o Increased economic integration goods and people. Industries that localize and cooperation among nations. do not necessarily contribute to o Reduced importance of globalization. Moreover, barriers to trade geographical boundaries, with a and investments like increased tariffs and focus on global citizenship and over protectionism do not facilitate shared humanity. globalization.  One negative consequence of globalization is environmental degradation. Trade  Economic interchange and interdependence are characterized by the  For firms that look for profit, globalization exchange of trade products that trade opens up new market opportunities, partners respectively lack and have more although they experience tradeoffs in one of. While this may affect individuals at the way or another. micro level, these interchange and interdependence is more of a macro  The global shift from protectionism to free concern and therefore limited to issues of trade / liberalization was triggered by World trade. War II. CONTEMPORARY WORLD NOTES Global Governance  In a global economy, a worldwide network o to facilitate cross-border of trade, communication, and transactions, especially trade and transportation is observed, along with investment transnational movement, and o to facilitate the growth of interconnectedness of worldwide economic international trade and the activities. No country or institution has increase in international trade direct power to oversee and impose rules flows as trade rules are internal and at least  The concept of global governance bilaterally agreed between nations. acknowledges the anarchial nature of the global scene. Thus, it functions as a  Global governance aims to negotiate primary organization for international solutions to problems that affect multiple cooperation, peace and security. states. Hence, to mitigate conflict, global governance has sets of rules, regulations, and principles that govern relations among  The Uruguay Round (1986-1994) was the nations and states. last and largest General Agreement on Tariffs and Trade (GATT) round, which  Some potencies of global governance: ultimately led to the creation of the World o Greater opportunities for Trade Organization (WTO). This round participation aimed to reduce trade barriers, simplify and o Increased legitimacy of strengthen trade rules, and establish a governance more level playing field for international o Increased cooperative work culture trade. among participating organizations o Inter-organizational learning  The agreements of the Bretton Woods System:  The International Court of Justice (ICJ), n o establishment of IMF and World organ of the UN is focused on settling Bank disputes among member countries. o adoption of gold-exchange standard for the US  The United Nations General Assembly o adoption of the US dollar as the (UNGA) is the main policy-making organ of global currency the United Nations. Comprising all 193 Member States, it provides a unique forum  In 1960, the Organization of Petroleum for multilateral discussion of international Exporting Countries (OPEC) was originally issues covered by the UN Charter. comprised of Saudi Arabia, Iraq, Kuwait, Iran, and Venezuela. They are still part of  The United Nations (UN) was created in the major exporters of oil in the world today. 1945 by the Allied Powers, the victors of the OPEC was formed because member Second World War. The mandate of the countries wanted to increase the price of organization is to maintain international oil, which in the past had a relatively low peace and security and to foster price and had failed in keeping up with international cooperation in addressing inflation. Today, the United Arab Emirates, humanitarian, social, economic, and Algeria, Libya, Qatar, Nigeria, and cultural issues. Indonesia are also included as members.  The Kyoto Protocol, an international  These tasks adhere to the principles of the agreement / treaty aimed at reducing International Monetary System: greenhouse gas emissions, has been o to facilitate the rules, customs, widely criticized for its shortcomings and instruments, facilities, and failures. organizations for effecting international payments CONTEMPORARY WORLD NOTES  The United States, a key player of The o China’s rising assertiveness: Kyoto Protocol, opted out of it, making it Beijing’s increasing assertiveness difficult for the agreement to come into in the late 2000s and beyond has force and achieve its intended goals. exacerbated domestic political variables and contributed to the  The primary goals of multinational decline of the East Asian corporations (MNCs): regionalism narrative. o Gaining profit across borders o Regional discrimination: Within through China, regional disparities and ▪ Maximizing Shareholder discrimination exist, with southern Wealth provinces like Guangdong often ▪ Global Brand Recognition having more favorable treatment and Market Presence compared to northern provinces. ▪ Navigating Different This can lead to unequal access to Regulations and Cultures education and economic ▪ Achieving Business opportunities. Objectives o Lack of shared identity and consciousness: Despite efforts to  These issues hinder the development and promote an East Asian regional effectiveness of Asian regionalism: identity, the concept remains o Tensions between the USA and elusive, and countries may prioritize Asian members: The United States’ their own national interests over push for trade liberalization through regional cooperation. tariff reductions and other o Institutional fragmentation: The measures has been met with existence of multiple regional resistance from Asian countries, institutions, such as ASEAN and who perceive the US as unwilling to ASEAN+3, can lead to duplication reform its own trade practices and of efforts and confusion, rather than prioritize consensus-building. a cohesive regional framework. o Historical antagonisms and o Power asymmetry: China’s growing nationalism: Pre-existing tensions economic and military might has and nationalist sentiments, created an imbalance in regional particularly anti-Japanese dynamics, potentially undermining sentiment, continue to undermine the ability of smaller countries to regional cooperation and optimism. participate equitably in regional initiatives. Market Integration  Market integration refers to a situation In other words, firms that operate where separate markets for the same at the same stage of the product or service become one single production or distribution process market, allowing for the free flow of goods, merge or acquire each other. This services, and capital across borders. This can help reduce competition, phenomenon is characterized by increased increase market share, and competition, reduced transaction costs, achieve economies of scale. and improved resource allocation. Prices Examples include department among various locations move in similar store chains acquiring other chains patterns. in different cities or countries, or consulting firms merging to offer a  Types of market integration: broader range of services. o Horizontal Integration: This type of o Vertical Integration: This type of integration occurs when firms in integration links different marketing the same marketing level combine. levels within a single firm or under CONTEMPORARY WORLD NOTES a single ownership. A firm takes o Conglomeration: This type of control of one or more stages in integration combines unrelated the production or distribution business activities under common process, such as manufacturing, ownership. A company acquires or logistics, or retail. This can help a merges with firms operating in company gain greater control over different industries or markets, its production or distribution chain, often to diversify its product or improve quality, and reduce costs. service offerings, reduce risk, or gain access to new markets. Economic Models  Socialism implies priority of the overall market forces, with supply and general public over the interests of demand playing a crucial role. individuals. Hence, socialist o Profit motive: Businesses operate internationalism upscales this to the to generate profits, which drives prioritization of the entire world over the innovation and economic growth. interests of individual nations. Moreover, o Capital accumulation: Wealth and socialist internationalism advocates for the capital are accumulated through unity and the abolition of capitalism. investments, entrepreneurship, and innovation.  Nationalism exalts its own and prioritizes its o Limited government intervention: own interests over other nations. The government plays a relatively small role in regulating the  Capitalism is the private ownership with economy, with a focus on less state intervention. When the state protecting property rights and intervenes to this capitalism by making enforcing contracts. policies that prioritize the welfare of the proletariat, this economic system ceases to  Communism is a political and economic be pure capitalism; becomes instead a ideology that positions itself in opposition to welfare state capitalism. liberal democracy and capitalism. It advocates for a classless system in which  Socialism is an economic and political the means of production are owned philosophy that encompasses diverse communally, and private property is systems characterized by social ownership nonexistent or severely curtailed. of the means of production, as opposed to private ownership.  Communism vs socialism in terms of the ownership of the means of production:  Capitalism is an economic system o Communism: The state owns and characterized by: controls all means of production, o Private ownership: Private distribution, and exchange of individuals or corporations own goods and services. and operate the means of o Socialism: The means of production, such as factories, production are collectively owned mines, and railroads. and controlled by the workers or o Free markets: Production, prices, the community, often through and income are determined by cooperatives or public ownership. CONTEMPORARY WORLD NOTES Global North & Global South  For developing countries, globalization  Less developed countries generally have benefits them in terms economic growth high birth rates and high death rates. and access to global markets.  The knowledge divide of the global north  A developed country has stable and high and the global south is not acknowledged stock of capital and high literacy rates. when groups capable of generating Multinational corporations in a country scientific knowledge, regardless of increase its economic growth. location, is expanded.