Globalization Lecture for SS1D

GLOBALIZATION  GLOBALIZATION Definition: An economic phenomenon? A social phenomenon? A cultural phenomenon? 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 sh...

GLOBALIZATION  GLOBALIZATION Definition: An economic phenomenon? A social phenomenon? A cultural phenomenon? 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. GLOBALIZATION  1. ECONOMIC GLOBALIZATION Integration of Economies  The increasing reliance of economies on each other  The opportunities to be able to buy and sell in any country in the world  The opportunities for labour and capital to locate anywhere in the world  The growth of global markets in finance  Economic Globalization Integration of Economies  Made possible by: – Technology – Communication networks – Internet access – Growth of economic cooperation – trading blocs (EU, ASEAN, etc.) – Collapse of ‘communism’ – Movement to free trade  ECONOMIC GLOBALIZATION MULTI-NATIONAL CORPORATIONS  OLD: Dutch East India Company?  1602 company of Dutch merchants & independent trading companies  Spice trade monopoly in East Asia  Power to colonize territories & enslave indigenous people  Indonesia & South Africa ECONOMIC GLOBALIZATION  Benefits of Trade: – Increased choice – Greater potential for growth – Increase international economies of scale – Greater employment opportunities  ECONOMIC GLOBALIZATION  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  ECONOMIC GLOBALIZATION 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  ECONOMIC GLOBALIZATION  Corporate Expansion  Characteristics: – Expanding revenue – Lowering costs – Sourcing raw materials – Controlling key supplies – Control of processing – Global economies of scale  ECONOMIC GLOBALIZATION  Corporate Domination  Key Issues: – Damage to the environment? – Exploitation of labour? – Monopoly power – Economic degradation – Non-renewable resources – Damage to cultures  2. TECHNOLOGICAL GLOBALIZATION “World Wide Web” has exploded in last 10 years Computers can move money around world = “finance capital”  Silicon Valley is 9th largest economy in world! 3. CULTURAL GLOBALIZATION  Cultural Imperialism = Dominance of one culture over others  Hollywood movies, MacDonald’s, Disneyland, Starbucks  Dominance of the English language and invasion of other languages  Do people all over the world have the same taste?  4. POLITICAL GLOBALIZATION The United Nations: Global assoc. of govts. facilitating cooperation in international law, security, economic development, and social equity Whose interests does the UN represent?  The US and the UK were the only nations in support of going to war in Iraq  Can a global politics with social values exist?  DEFINITION  Globalization refers to a multidimensional set of social processes that create, multiply, stretch, and intensify worldwide social interdependencies and exchanges while at the same time fostering in people a growing awareness of deepening connections between the local and the distant.  Qualities and Characteristics of Globalization  Creation and Multiplication - of social networks and cultural activities  Expansion and Stretching - Of social operations and connections reflected on how the financial markets and trading operate around the Globe  Qualities and Characteristics of Globalization  Intensification and Acceleration - of human activities like the rise of Consumerism  Consciousness and Awareness -Human daily actions as reflected in their experiences Globalization and Westernization  Westernization – adaptation of western culture and values  Refers to the western value system as it influences countries outside of US and Europe.  THEORIES ON GLOBALIZATION  1. Realism- employment of power in world domination, market control- financial profits, manpower; Political – military and territory Technology – logistics and systems Here globalization is related to Americanization and westernization  THEORIES ON GLOBALIZATION  2. Liberalism- forging of relationships and negotiations >spread of democratic institutions Global economic ties, International Organization (UN, ASEAN)  THEORIES ON GLOBALIZATION  3. Idealism-use of ethical and legal standards (appropriateness and transparency)  Three Important Technological Trends that made Significant Changes in the Interaction of Nations and People:  Knowledge and technology are significant determinants of wealth and power.  The fast pace of technological change.  Dispersed knowledge and technology.  Dimensions of Globalization  1. World Capitalist Economy  2. Nation –state system  3. World military World Primary force of globalization. Capitalist Capitalist states are the main engines of global production Economy and distribution of goods and services. Capitalists engage in transnational operation maintaining pool of resources such as labor and capital. Multinational corporations are very powerful in controlling domestic and foreign market. Nation-state Sovereignty of states has been emphasized as a System primary part of independence and autonomy. The concept of sovereignty in a globalized world is understood as the best form of asserting the existence and operation of a state in order to be recognized. It has been used as a major political unit in international relations. Nation-states have the right to make their own collective objectives. World MilitaryStrengthening military power is the priority of the first world countries as well as the developing and third world countries. Budget allotted by governments to defense and military surged hundred folds with the aim of delivering world- class defense operation and services to its people. US maintains the rank as the world’s most powerful military in terms of military spending  Three Worlds  1. First world Countries –high income, high standard of living, modern infrastructures aligned with US  2. Second World Countries – Eastern bloc aligned with USSR  3. Third World – Neutral and non aligned countries not economically developed  DEBATES 1. Is globalization new or old? 2. Is globalization good or bad? 3. Is globalization really “global” or inclusive of all people?