Introduction to Globalization PDF

TOPIC 1 INTRODUCTION TO GLOBALIZATION Summary 1. Defining Globalization 2. Interrogating Globalization DEFINING GLOBALIZATION Lesson Objectives At the end of this lesson, you should be able to: 1. Identify the extent of Globalization 2. Define Globalization 3. Differentiate t...

TOPIC 1 INTRODUCTION TO GLOBALIZATION Summary 1. Defining Globalization 2. Interrogating Globalization DEFINING GLOBALIZATION Lesson Objectives At the end of this lesson, you should be able to: 1. Identify the extent of Globalization 2. Define Globalization 3. Differentiate the competing conceptions of Globalization; and 4. Identify the underlying philosophies of the varying definitions of Globalization Definition of Terms a. Globalization Is a process of expanding various sociocultural and socio-ecological processes from national to international and transcultural level. (Al-Rodhan, 2006) It is seen as the process that focuses on the movement of trade, capital, and ideas Keywords: ○ Movement, Integration, free-trade, capital, and world b. Global Connected Index (GCI) Is a measurement of flows and interconnections of a country to other global players through exchanges in trade, capital, people, and information. (Altman, et al., 2018) 1 Socioeconomic Changes in Globalization Scholte (2005) identifies macro-structural changes in a globalize society such as product and services integration through commodity value chains, emerging institutional arrangements, pluralistic identity, and growth of supra-territorial relations. Also, he identifies four key shifts in society: a. Growth of trans- and supra-territorial connectivity b. The shift from capitalism to hyper-capitalism focused on production c. A move from nationalism toward identifying pluralism and hybridity d. From rationalism toward knowledge reflexivity Factors Driving Globalization One of the factors that drive globalization is the reduction of trade barriers. In 1947, richer countries banded together to reduce taxes on imports or tariffs under the General Agreement on Tariffs and Trade (GATT), which was later transformed to the World Trade Organization (WTO) in 1994 (Koopman and Handcock, 2019). Husain (2011) also identified modern technology developments as a key driver of globalization that facilitated faster communication and access to data or information. This further promoted the development of an information society (Castells, 2000). Views about Globalization a. Positive Economic Impact of Globalization i. Level of Employment ii. Balance of Trade b. Negative Economic Impact of Globalization i. Inequity among countries ii. Inequity between rich and the poor 2 INTERROGATING GLOBALIZATION Lesson Objectives At the end of this lesson, you should be able to: 1. Discuss Economic Globalization as a complex process responsible for enormous global and global changes 2. Explain Economic Globalization’s accompanying Cultural and Political Globalization 3. Articulate the assumptions behind globalization; and 4. Critically evaluate the impacts of Globalization especially for poor countries Definition of Terms a. Development Paradigms An idea of a prescribed path to attain development through certain set of activities, according to a defined vision. Economic Globalization, Cultural Globalization, Political Globalization Globalization is mainly conceptualized as intensified transference or exchange of things across existing boundaries. However, globalization is primarily an economic process, the drive toward integration of economies throughout the world. This is achieved through trading and financial flows across countries’ borders. a. Economic Globalization i. Is a complex global process of expanding the market economic system all throughout the world ii. A complex process responsible for enormous global and local changes b. Cultural Globalization i. Refers to the increasing “Contact between people and their culture–their ideas, their values, and their ways of life” c. Political Globalization i. Is the enlargement of the international political system and its establishment, where inter-regional dealings, including trade, are managed 3 International Financial and Trade Institutions ORGANIZATION ROLE IN ECONOMIC GLOBALIZATION World Bank Facilitate investment of capital for member countries Fund large-scale projects by providing loans for member countries Implement the Structural Adjustment Policies (SAPs) for countries borrowing from the World Bank. SAPs are programs imposed on poor countries that require their government to: ○ Reduce spending for social services such as: Education Health Price Subsidies ○ Prioritize repaying debts ○ Increase exports, provide subsidies for foreign export-oriented firms ○ Remove tariffs for imports International Monetary Fund (IMF) Provide short-term emergency loans Help bring enormous flow of foreign money through loans and speculative investment World Trade Organization (WTO) Create rules for global-trade and investment Aim to reduce tariffs Create agreements for member countries regarding multilateral policies that push governments to relax regulations on: ○ Environment ○ Food Safety ○ Product Quality Encourage countries to deregulate economies 4 Impacts of Globalization Economic Deregulation is met with disapproval from different groups such as: Labor Organizations Environmental Groups Indigenous Peoples Consumer Groups Lessening government’s control over businesses led to outcomes such as: Neglect of environment Low Wages and Unstable Employment Under Servicing of Consumers Privatizing Common Resources 5