Globalization PDF

Course: International Relation
BBA 2 Year, 4 Semester Globalization Globalization Definition: An economic phenomenon? A social phenomenon? A cultural phenomenon? The movement towards the expansion of economic and social ties between countries through the spread of corporate in...

Course: International Relation
BBA 2 Year, 4 Semester Globalization Globalization Definition: An economic phenomenon? A social phenomenon? A cultural phenomenon? The movement towards the expansion of economic and social ties between countries through the spread of corporate institutions and the capitalist philosophy that leads to the shrinking of the world in economic terms. Globalization Martin Albrow and Elizabeth King, sociologists, define globalization as "all those processes by which the peoples of the world are incorporated into a single world society. According to Scholte: Globalization refer to Processes by which social relation acquire relatively distances less and borderless qualities so human lives increasingly play out in the world as a single place. According to Giddens defines: Globalization as the intensification of worldwide social relations which link distant localities in such a way that local happenings are shaped by events occurring many miles away and vice versa. Globalisation Globalisation could involve all these things! Integration of Economies The increasing reliance of economies on each other The opportunities to be able to buy and sell in any country in the world The opportunities for labour and capital to locate anywhere in the world The growth of global Stock Markets are now accessible from markets in finance anywhere in the world! Copyright: edrod, stock.xchng Integration of Economies Made possible by: Technology Communication networks Internet access Growth of economic cooperation – trading blocs (EU, NAFTA, etc.) Collapse of ‘communism’ Movement to free trade Trade versus Aid? Benefits of Trade: Increased choice Greater potential for growth Increase international economies of scale Greater employment opportunities Trade has led to massive increases in wealth for many countries. Copyright: budgetstock, stock.xchng Trade versus Aid? Disadvantages of trade: Increase in gap between the rich and the poor Dominance of global trade by the rich, northern hemisphere countries Lack of opportunities for the poor to be able to have access to markets Exploitation of workers and growers How far does trade help children like these? Copyright: clesio, stock.xchng  Corporate Expansion Multi-national or trans-national corporations (MNCs or TNCs) – businesses with a headquarters in one country but with business No matter where you go in the world, certain operations in a businesses will always have a presence. Copyright: mkeky, stock.xchng number of others.  Corporate Expansion Characteristics: Expanding revenue Lowering costs Sourcing raw materials Controlling key supplies Control of processing Global economies of scale Controlling supplies may be one reason for global expansion. Copyright: rsvstks, stock.xchng Corporate Domination Key Issues: Damage to the environment? Exploitation of labour? Monopoly power Economic degradation Non-renewable resources Damage to cultures Shell and Nike’s activities have come under severe criticism in some quarters. Copyright: Homsel, stock.xchng  Other Issues: Accountability of Global businesses? Increased gap between rich and poor fuels potential terrorist reaction Ethical responsibility of business? There are plenty of people who believe that globalisation is a negative development, protests at the G8 summits, pollution, poverty and concern over Efforts to remove trade GM crops are just some of the issues. Copyright: stock.xchng barriers Features of Globalization Globalization is characterization by increasing in flow of trade , capital and information as well as mobility of individuals signifies: Effort of integration national economies with the global economy. Information and technology revolution , bringing about a sea-change in modes of communication , has resulted in fast movement of capital, goods, information and people around the globe. Features of Globalization Opening up national economies to foreign capital ,foreign direct investment and foreign technologies Free trade meaning free flow of trade and removal of tariff and trade barrier, protective regimes including granting of most favored nation (MFN) status. Global governances is through supera-state agencies such as international and region organization , the united nation, IMF, the world bank, WTO, and host of regional like the ASEAN, European Union and others. Effect of Globalization Globalization connects different cultures and shapes international relations in many ways, such as economically, politically, and socially. It has been used in international relations to better understand different cultures. Globalization affects international relations in various ways. It increases the connections between countries, leading to many changes in the global system. Before globalization, countries and international players acted more independently rather than working together. Multinational companies contribute to local economies by spending foreign currency on local goods and services. The blending of people and cultures from around the world promotes the exchange of ideas and lifestyles, creating rich cultural diversity. It also makes it easier for people to travel to distant places for vacations Globalization and Sovereignty of the state Globalization has significantly changed how independent countries interact and handle their own and international matters. It offers chances for working together and making progress, but it also challenges the traditional idea of full state control and independence. Countries now need to cooperate more on global issues like climate change, trade, and health, which can limit their ability to make decisions independently. Globalization increases economic competition, as countries have to compete with others worldwide, affecting local industries and job markets.