Globalization PDF

GLOBALIZATION Globalization is the increasing interaction of people, states, or countries through the growth of the international flo...

GLOBALIZATION Globalization is the increasing interaction of people, states, or countries through the growth of the international flow of money, ideas, and culture. It is the interconnectedness of people and business across the World that eventually lead to global, cultural, political, and economic integration. It is the ability to move and communicate easily with others all over the world in order to conduct business internationally. It is the free movement of goods, services, and people across the world in a seamless and integrated manner. It is the liberalization of countries of their impact protocols and welcome foreign investment into sectors that are the mainstays of its economy. It refers to countries acting like magnets attracting global capital by opening up their economies to multinational corporations..  defined globalization as described globalization in 1992 those processes by which as the compression of the the people of the world are world and the intensification incorporated into a single of the consciousness of the world society. world as a whole. Anthony Rolarnd Martin Robertson, Albrow Giddens UNESCO's Professor of (The approach to and Consequence of Sociology at globalization Elizabeth the Modernity) King University of Aberdeen Defines globalization as the is centered on balancing the GLOBALIZATION intensification of worldwide benefits of global social relations which link distant interconnectedness with the need to preserve cultural localities in such a way that local diversity, ensure educational happenings are shaped by events equity, promote collaborative occurring many miles away and science, and provide fair vice versa. access to information.  INDICATORS OF GLOBALIZATION Globalization refers to the process of increasing interconnectedness and interdependence among countries, cultures, and economies. It encompasses a wide range of dimensions including economic, cultural, political, and technological aspects. Here’s a broad overview of globalization and its key aspects: Economic Technological Globalization Globalization Cultural Environmental Globalization Globalization Political Social Globalization Globalization INDICATORS OF GLOBALIZATION ✓ Trade and Investment Economic ✓ Global Supply Chains Globalization ✓ Market Integration ✓ Cultural Exchange ✓ Media and Entertainment Cultural ✓ Migration Globalization  INDICATORS OF GLOBALIZATION Political ✓ International Institutions Globalization ✓ Global Governance ✓ National Sovereignty ✓ Communication Technologies Technological ✓ Digital Economy Globalization ✓ Innovation INDICATORS OF GLOBALIZATION Environmental ✓ Global Challenges Globalization ✓ Sustainability ✓ Human Rights Social ✓ Health Globalization  DIMENSIONS OF GLOBALIZATION The following are the dimensions of globalization 1. Planning to expand the business on a worldwide scope; 2. Giving up the distinction between domestic and foreign market and instead developing a global outlook of such business; 3. Locating the production and the physical facilities of the business by considering global business dynamics irrespective of national consideration.  DIMENSIONS OF GLOBALIZATION 4. Creating product development and production planning on a global market sphere. 5. Global sourcing of the factors of production such as raw materials components, machinery, technology, finance, and others that are obtained from the best source anywhere in the world. 6. Global orientation or organization structure and management culture.  REASONS FOR GLOBALIZATION Why do we have to globalize especially at this contemporary world? Here are the reasons: 1. Rapid shrinking of time and distance across the globe. One can easily cross the bridge going to the other side of the market place due to advance tools of technology than before. 2. Domestic markets are no longer rich as a consequence of many interlocking factors.  REASONS FOR GLOBALIZATION 3. Companies and institutions go global to find political and economic stability which is relatively good in other countries than the country of origin. 4. To get technological and managerial know-how of other countries due to their advancement in science, technology, education, health, and other fields of discipline.  REASONS FOR GLOBALIZATION 5. To reduce high transportation costs if one goes globally using the advance tools of communication and information. 6. To be close to raw materials and to markets for their finished products which are not available in the country of origin. 7. The creation of the World Trade Organization (WTO) had made it possible in stimulating increased cross border trade. There are other world bodies like the UN and several arbitration bodies where countries agree. In this stage, the company operates STAGES OF GLOBALIZATION globally by adapting its products and A fast-food chain offers unique menu items tailored services to meet the specific needs of to local tastes in each country it operates, like spicy customers in different countries. curry burgers in India and teriyaki chicken sandwiches in Japan. In this stage, the company fully integrates A tech company establishes its own research and into the foreign market by setting up its development center and engineering team in South own R&D and engineering departments to Korea to develop and improve products specifically support its business operations. for the Korean market. In this stage, the company starts managing A smartphone company sets up its own factory, its own production, marketing, and sales marketing team, and sales offices in Germany to directly in important foreign markets. handle all aspects of its business there. In this stage , the company/institution A company that used to rely on local distributors to takes over these activities on its own sell its products in a new country decides to set up its own stores and hire its own staff to manage sales directly. The first stage is when a company that usually works only at home starts selling in A U.S. coffee shop chain starts selling its coffee in a new country by partnering with local Japan by partnering with local Japanese cafes and stores to distribute its products sellers and distributors.  An open economy spur Export jobs often pay more than other jobs. Unfettered capital flow innovation with fresh keeps interest rates low ideas from abroad Global competition and imports keep a lid on Living standards go up prices such that inflation MERITS OF faster is less likely to derail GLOBALIZATION economic growth frees up money for Productivity grows more investment in productive Countries liberalize their quickly when countries areas and boosts exports, visa rules and procedures produce goods and services benefiting the global so as to permit the full flow in which they are of economy of people from country to comparative advantage country  High foreign stake on Several people lose their jobs industries where it is not when companies import necessarily needed could cheap labor or materials or affect the economic growth of shift production abroad domestic enterprise. DEMERITS OF Workers face pay cut GLOBALIZATION demands form employers Sovereignty of a country who often threatens to and company/institution export jobs may be at stake. Unregulated globalization can cause serious problems to poor and developing countries in terms of labor force, wages, benefits, job termination, and others  IMPORTANCE OF STUDYING GLOBALIZATION REASON EXPLANATION EXAMPLE Economic Growth Boosts economies by For example, the expansion of trade between expanding trade, investment, China and Africa has created numerous job and job opportunities opportunities and spurred economic worldwide. development in both regions. Cultural Exchange Learn about the impact of For example, K-pop has become a global sharing cultures and ideas. sensation, introducing new music and fashion trends to audiences worldwide. Job Opportunities Discover how globalization For example, Apple’s global offices and creates new employment production facilities create diverse jobs in tech, possibilities. design, and manufacturing across different countries. Technology See how innovations spread For example, smartphones quickly became quickly across borders. widespread worldwide, transforming Spread communication and access to information everywhere. Global Issues Address worldwide For example, the Paris Agreement brings challenges like climate countries together to fight climate change by change and health. setting global emission reduction targets. PHILOSOPHIES UNDERLYING GLOBALIZATION THEORY EXPLANATION Free-Market Promotes open trade and competition to drive economic Capitalism growth and efficiency. Liberal Advocates for international cooperation, democracy, and Internationalism human rights to foster global stability. Cultural Exchange Encourages the sharing of ideas and values to enrich societies and foster mutual understanding. Technological Supports the spread of innovations and knowledge to improve Progress global connectivity and development. Economic Emphasizes that countries benefit from working together and Interdependence relying on each other’s resources and markets.  IMPACT OF GLOBALIZATION IMPACT EXPLANATION EXAMPLE Economic Understand how global trade and For example, trade agreements like the EU investment drive economic Single Market help businesses in Europe Growth development. export goods more easily, boosting economic growth in member countries. Cultural Enhances cultural diversity through For example, sushi, originally from Japan, has the spread of ideas, languages, and become a popular dish worldwide, reflecting Exchange traditions across borders the global spread of culinary traditions. Technological Accelerates the spread of For example, the widespread adoption of innovations, improving global cloud computing has enabled businesses Advancement connectivity and productivity. globally to access and share data efficiently, boosting productivity. Increased Drives efficiency and lowers prices For example, global competition among as companies compete in a global smartphone manufacturers, like Apple and Competition marketplace. Samsung, leads to more innovative features and lower prices for consumers. Global facilitates cooperative solutions to For example, the Paris Agreement brings issues like climate change and countries together to fight climate change by Challenges pandemics, requiring international setting global emission reduction targets. collaboration.