Contemporary World - Globalization PDF

CONTEMPORARY WORLD The World of Globalization  Introduction BASIC CONCEPTS THE GLOBAL ECONOMY THE MARKET OF GLOBALIZATION INTEGRATION Map of Globalization  Is It……………. Definition ❑An economic pheno...

CONTEMPORARY WORLD The World of Globalization  Introduction BASIC CONCEPTS THE GLOBAL ECONOMY THE MARKET OF GLOBALIZATION INTEGRATION Map of Globalization  Is It……………. Definition ❑An economic phenomenon? What is ❑A social phenomenon? Globalization? ❑A cultural phenomenon? ❑A political phenomenon ❑A technological phenomenon  Globalization refers to the integration of goods, services, and culture among the nations of the world. We have been experiencing globalization since the days of European colonization. Advances in telecommunication and transportation technologies accelerated globalization. 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.  Map of Globalization Some Areas of Globalization A. Integration of Economies ◦ The increasing reliance of It is made possible by: economies on each other ◦ Technology ◦ The opportunities to be able to ◦ Communication networks buy and sell in any country in ◦ Internet access the world ◦ Growth of economic ◦ The opportunities for labor and cooperation – trading blocs (EU, capital to locate anywhere in NAFTA, etc.) the world ◦ Collapse of ‘communism’ ◦ The growth of global markets in ◦ Movement to free trade finance B. Trade versus Aid? Benefits of Trade: ▪ Increased choice ▪ Greater potential for growth ▪ Increase international Trade has led to massive increases in wealth for many countries. economies of scale ▪ Greater employment opportunities ❖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 C. Corporate Expansion ◦ Multi-national or trans-national corporations (MNCs or TNCs) – businesses with a headquarters in one country but with business operations in a number of others.  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. D. Corporate Domination Key Issues: ◦ Damage to the environment? ◦ Exploitation of labor? ◦ Monopoly power ◦ Economic degradation ◦ Non-renewable resources ◦ Damage to cultures  E. Other Issues: Accountability of Global businesses? Increased gap between rich and poor fuels potential terrorist reaction Ethical responsibility of business? Efforts to remove trade barriers  Definitions from Different Sources “globalization represents the triumph ◦ Immanuel Wallerstein, The Modern of a capitalist world economy tied World System Capitalist Agriculture together by a global division of labor.” and the Origins of the European World-Economy in the Sixteenth Century (New York: Academic Press, 1974), as cited in R. J. Holton, Globalization and the Nation-State (London: Macmillan Press, 1998), p. 11. “ …all those processes by which the peoples of the world are Martin Albrow, “Introduction”, in M. incorporated Albrow and E. King (eds.), Globalization, into a single world society.” Knowledge and Society (London: Sage, 1990), p. 8, as cited in R. J. Holton, Globalization and the Nation-State (London: Macmillan Press, 1998), p.15.  ◦ “…process in which the production ◦ Paul Bairoch and Richard Kozul- and financial structures of countries Wright, “Globalization Myths: Some are becoming interlinked by an Historical Reflections on Integration, increasing number of cross-border Industrialization and Growth in the transactions to create an international World Economy”, Discussion Paper division of labor in which national 113 (Geneva: UNCTAD, March 1996), wealth creation comes, increasingly, p.3,http://www.unctad.org/en/docs to depend on economic agents in /dp_113.en.pdf. other countries, and the ultimate stage of economic integration where M. Albrow, The Global such dependence has reached its Age, 1996, p. 88, see spatial limit.” http://www.globalizac “The historical transformation constituted by the sum of particular forms ija.com/doc_en/e0013 and instances of... [making or being made global (i) by the active glo.htm. dissemination of practices, values, technology and other human products throughout the globe (ii) when global practices and so on exercise an increasing influence over people’s lives (iii) when the globe serves as a focus for, or a premise in shaping, human activities.”