Cultural and Economic Theories PDF

Globalization : Cultural and Economic Theories Presented By: Vargas, Paul Andrei P. Cando, Rhenz Cesar Z. Cultural Theories on Globalization Cultural aspects on globalization focus on how practices and patterns of s...

Globalization : Cultural and Economic Theories Presented By: Vargas, Paul Andrei P. Cando, Rhenz Cesar Z. Cultural Theories on Globalization Cultural aspects on globalization focus on how practices and patterns of social existence of different societies affect the process of globalization and vice versa. This Section looks at several interpretations of how globalization shapes local cultures and how local cultures respond in turn to this external influence. The Social Imaginary: Global Flows and Scapes Social Imaginary: This concept refers to the way people collectively imagine their social existence and their relationship to others. In the context of globalization, the social imaginary is shaped by global flows, the movement of people, technology, media, ideas, and money across borders. 1. Movement of People 2. Technology 3. Media 4. Ideas and Ideologies 5. Economic Flow  Global Scapes (Arjun Appadurai) Ethnoscapes: Movement of people Ideoscapes: Global flow of political ideas and ideologies Technoscapes: Flow of technology Mediascapes: Spread of media and information across borders Financescapes: Movement of capital and economic resources globally World System Theory Developed by sociologist Immanuel Wallerstein, the World System Theory explains the global economic system as a hierarchical structure divided into three types of states:  Three Types of World System Theory Peripheral States Semi-peripheral States Core States Characteristics: These are the least developed Characteristics: Nations that are intermediate in Characteristics: Highly developed, countries, with weak economies and low terms of development. They have growing industrialized countries with strong industrialization. They are heavily dependent on industrial sectors but are also dependent on core economies, advanced technologies, and core states for capital and resources, and often states for capital and technology. They often dominant political power. These states supply raw materials and cheap labor. exploit peripheral states but are also exploited by benefit the most from global trade and Examples: Many African and some Latin core states. control the majority of the world’s wealth. American countries. Examples: Brazil, China, India. Examples: United States, Germany, Japan. Global Markets Definition: Global markets are created through the integration of national economies, allowing goods, services, and capital to move freely across borders. Global Competition: Countries compete for economic dominance, often leading to international agreements that reduce trade barriers. Challenges: Issues like tariffs, protectionism, and geopolitical tensions can restrict market access. Global Production Global Value Chains: Modern production is spread across multiple countries, with different stages of production (design, manufacturing, assembly) happening in various locations. This reduces costs and increases efficiency. Outsourcing and Offshoring: Core nations often outsource production to semi-peripheral and peripheral states to take advantage of lower labor costs. Impact: This creates jobs in less developed countries but can lead to exploitation and environmental degradation. Global Commodities Definition: Global commodities are goods that are traded internationally, such as oil, coffee, electronics, and agricultural products. Commodity Chains: These are the networks of production and distribution that connect producers (often in peripheral states) with consumers (often in core states). Impacts: The global commodity trade can lead to wealth for some nations but exploitation and resource depletion for others.  Economic Theories on Globalization: Global Economy and Integration Global Economy: A single, interconnected economy where goods, services, labor, and capital move across borders. This has led to the creation of international trade agreements like the WTO (World Trade Organization) and trade blocs like the EU (European Union). Economic Integration: The process by which countries reduce trade barriers and increase cooperation. Examples include free trade agreements and monetary unions like the Eurozone.  Global Business Organizations Multinational Corporations (MNCs): Businesses that operate in multiple countries. They play a central role in global production networks, trade, and investment. Impact: MNCs shape global markets by controlling production, trade, and labor practices. They often influence government policies in both core and peripheral nations. Examples: Apple, Toyota, Unilever.  Global Money and Finance Global Financial System: Involves the flow of money, investments, and capital across countries. Institutions like the World Bank, International Monetary Fund (IMF), and global stock markets are key players in the global financial system. Currency Exchange: Exchange rates between different national currencies affect international trade and investment. Countries with strong currencies (like the US dollar) dominate global financial flows. Capital Flows: Capital moves from investors in core countries to developing economies, impacting growth but also increasing financial risks for peripheral states.