Globalization Definition, Merits, Demerits, and Perspectives PDF

Studio Shodwe GLOBALI ZATION Definition & Concepts 2024 By: Nove Claire Ente, LPT  What is GLOBALIZATION ? GLOBALIZATION It is the increasing interaction of people, states, or countries through the growt...

Studio Shodwe GLOBALI ZATION Definition & Concepts 2024 By: Nove Claire Ente, LPT  What is GLOBALIZATION ? GLOBALIZATION It is the increasing interaction of people, states, or countries through the growth of international flow of money, ideas, and culture. It focused primarily on the economic process of integration that has social and cultural aspects. GLOBALIZATION It is the interconnectedness of people and business across the world that eventually lead to global, cultural, political, and economic integration. GLOBALIZATION The ability to move and communicate easily with others all over the world in order to conduct business internationally. The free movement of goods, services, and people across the world in a seamless and integrated manner. GLOBALIZATION The liberation of countries of their Refers to countries acting like impact protocols and welcome magnets attracting global capital by opening up their economies to foreign investments into sectors multinational corporations. that are the mainstays of its economy. GLOBALIZATION AS DEFINED BY OTHER AUTHORS Anthony Giddens (The Consequences of Modernity) – the intensification of worldwide social relations which links distant localities in such way that local happenings are shaped by events occurring many miles away and vice versa. GLOBALIZATION AS DEFINED BY OTHER AUTHORS Roland Robertson (1992) – the compression of the world and the intensification of the consciousness of the world as a whole. HISTORICAL FOUNDATION OF GLOBALIZATION HISTORICAL FOUNDATION OF GLOBALIZATION Scholars trace its history long before the European Age of Discovery and Voyage to the New World. Some even to the third millennium BC. Large-scale globalization began in the 1820s. Connectivity of the world’s economies and cultures grew very quickly in the late 19th and early 20th century. HISTORICAL FOUNDATION OF GLOBALIZATION Charles Taze Russell (1897) – coined a related term – corporate giants. This term refers to the largely national trusts and other large enterprises of the time. In 1930, the word “globalize” as noun appeared in a publication entitled Towards New Education where it denoted a holistic view of human experience in education. HISTORICAL FOUNDATION OF GLOBALIZATION In 1970’s – the word “globalization” was coined. Early 1981 – it had been used in its economic sense. Late half of 1980’s, Theodore Levitt popularized the term “globalization” by bringing it to the mainstream business audience. HISTORICAL FOUNDATION OF GLOBALIZATION Lately in 2000, the International Monetary Fund (IMF) identified four (4) basic aspects of globalization: ⚬ TRADE AND TRANSACTIONS; ⚬ CAPITAL AND INVESTMENT MOVEMENTS; ⚬ MIGRATION OF KNOWLEDGE; AND ⚬ DISSEMINATION HISTORICAL FOUNDATION OF GLOBALIZATION In 2013, the term was used to mean “borderless society” referring to international migration. 2017, the word “globalization” was often used in teaching, in discussion, in meetings and conferences, in lectures and so on. In 2018, the phenomenon of globalization is now on full swing in all academic disciplines.  Studio Shodwe INDICATORS AND NATURE OF GLOBALIZATION INDICATORS OF Studio Shodwe GLOBALIZATION Inventions of science and technology are attributed to the spread of globalization. Development of infrastructure system. These improvements generated further interdependence in economic and cultural activities among nations. INDICATORS OF Studio Shodwe GLOBALIZATION Likewise, environmental challenges such as global warming, air pollution, and over-fishing of the ocean are linked with globalization. Globalization processes affect and are affected by business and work organization, economics, socio-cultural resources, and natural environments. NATURE OF Studio Shodwe GLOBALIZATION It is a conglomerate of various multiple units located in the different parts of the globe which are linked by common ownership. Multiple units draw on a common pool of resources, such as money, credit, information, patents, trade names and control systems.  Studio Shodwe  Studio Shodwe  Studio Shodwe NATURE OF Studio Shodwe GLOBALIZATION Product presence is in different markets of the world. Human resources are highly diverse. Transactions involving intellectual properties such as copyrights, patents, trademarks, and process technologies are across the globe.  MERITS AND Studio Shodwe DEMERITS OF GLOBALIZATION MERITS OF GLOBALIZATION Global competition and imports keep a lid on prices such that inflation is less likely to derail economic growth. An open economy spur fast innovation with fresh ideas from abroad. Export jobs often pay more than other jobs. Unfettered capital flow keeps interest rates low. MERITS OF GLOBALIZATION Living standards go up faster. Productivity grows more quickly when countries produce goods and services in which they are of comparative advantage. Countries liberalize their visa rules and procedures so as to permit the full flow of people from country to country. MERITS OF GLOBALIZATION It results in freeing up the unproductive sector to investment and the productive sector to export related activities resulting in a win-win situation for the world economy. DEMERITS OF GLOBALIZATION Several people lose their jobs when companies import cheap labor or materials or shift production abroad. Workers face pay cut demands from employers who often threatens to export jobs. Unregulated globalization can cause serious problems to poor and developing countries in terms of labor force, wages, benefits, job termination, and others. DEMERITS OF GLOBALIZATION High foreign stake on industries where it is not necessarily needed could affect the economic growth of domestic enterprise. Sovereignty of a country and company/institution may be at stake. PERSPECTIVE Studio Shodwe S OF GLOBALI PERSPECTIVES Studio Shodwe OF GLOBALIZATION GLOBALIST is someone who advocates for or supports policies and practices that promote international cooperation. Assumptions ⚬ Fully developed global economy. ⚬ National border has now dissolved. ⚬ Internationally competitive. PERSPECTIVES Studio OF GLOBALIZATION Shodwe TRADITIONALIST emphasize the significance of national borders viewing globalization as a less dominant force in shaping economic interactions compared to regional trade agreements and arrangements. Assumptions ⚬ Trade is not truly global, it is regional. ⚬ There is still separate national economies. PERSPECTIVES Studio OF GLOBALIZATION Shodwe TRANSFORMATIONALIST believes in a dynamic and multidirectional exchange of culture. Highlights the evolving nature of globalization. Assumptions ⚬ There is two-way exchange of culture. ⚬ Intense interdependence and integration.  Studio Shodwe THEORY OF COMPARATIVE ADVANTAGE  THEORY OF COMPARATIVE ADVANTAGE States that countries that are good at producing particular good are better off exporting it to countries that are less efficient at producing that good. Underlying assumption of this theory is that not all countries are good at producing all sorts of goods and hence they benefit by trading with each other.  Studio Shodwe PHILOSOPHY UNDERLYING GLOBALIZATION PHILOSOPHY UNDERLYING Studio Shodwe GLOBALIZATION The concept of globalization has only recently been widely accepted and adapted. Words like global, globality, globalism as well the concepts of global market, global ecology, global citizen are unknown up to the very end of the 20th century. PHILOSOPHY UNDERLYING Studio Shodwe GLOBALIZATION Discussion of world issues used the derivatives of “international” rather than “global” relations because of the recent popularized new concept of “globalization” has resulted to enumerable contradicting definitions of the same. PHILOSOPHY UNDERLYING Studio Shodwe GLOBALIZATION Some people associate globalization with progress, peace, and prosperity, some others consider it to be retrogression, disaster and decay. PHILOSOPHY UNDERLYING Studio Shodwe GLOBALIZATION The common and indisputable characteristics of all its definitions is the view of that globalization is “a process of economic, social, culture, and political activity, which transcends nation-state borders and that it pertains to the world as a whole.”  Studio Shodwe DONE NA PO! Thank You 2024 By: Nove Claire Ente, LPT