Introduction to Globalization UNIT 1 PDF

Introduction to Globalization Unit 1 Henry John Prio Course Facilitator Table of Contents Unit One: An Introduction to Globalization Lesson 1: Defining Globalization Lesson 2: Globalization and its Origin Lesson 3: Dimensions of Globalization I. What is Globalization? the spread of pro...

Introduction to Globalization Unit 1 Henry John Prio Course Facilitator Table of Contents Unit One: An Introduction to Globalization Lesson 1: Defining Globalization Lesson 2: Globalization and its Origin Lesson 3: Dimensions of Globalization I. What is Globalization? the spread of products, technology, information, and jobs across national borders and cultures (Harvard Business School, 2021; Oman, 1996). In economic terms, it describes an interdependence of nations around the globe fostered through free trade. What is Globalization? “Globalization represents the triumph of a capitalist world economy tied together by a global division of labour.” World Systems Theory - Wallerstein What is Globalization? “The internationalizing of production, the new international division of labor, new migratory movements from South to North”. “The new competitive environment that accelerates these processes, and the internationalizing of the state...making states into agencies of the globalizing world.” Robert W. Cox (1993) The Concept of Globalization It is not a new concept. Traders traveled vast distances in ancient times to buy commodities that were rare and expensive for sale in their homelands. The Peterson Institute for International Economics [PIIE] (2018), states globalization stalled after World War I and nations' movements toward protectionism as they launched import taxes to more closely guard their industries in the aftermath of the conflict. Globalization: Blessing or Burden? Advantages Disadvantages ∙ Allows for the ∙ Economic downturns catching up of and disruption create a developing countries ‘domino-effect’ ∙ Outsourcing becomes ∙ Huge concentration of viable wealth in some industries ∙ Advancement of ∙ Homogenization of social justice and products and brands human rights II. Globalization and its Origins Can be traced back to major time periods in history. Period Brief Description ∙ Establishment of the Silk Roads (1st ∙ Trade routes to and from Asia and Europe were established. Exchanges between the two became Century BC – 5th Century AD; 13th-14th more intertwined. Centuries AD) ∙ The Spice Routes (7th-15th centuries) ∙ The Maritime silk roads were established to expedite trade and increase access to valuable goods. ∙ Age of Discovery and Exploration ∙ The pursuit of wealth, religion, and prestige by the major European powers kickstarted socio-cultural (15th-18th centuries) and economic exchanges across the New World. ∙ First wave of globalization ∙ The Industrial Revolution, spearheaded by the British Empire, drastically streamlined (19th century-1914) transportation and communication lines. ∙ Second and third wave of globalization ∙ Roughly occurred during the aftermath of World War I and II. It benefited from the rapid (1946-1990s) technological advancements from the ‘arms race’. ∙ Globalization 4.0 ∙ the new frontier of globalization is the cyber world (e- commerce, digital services, 3D printing). Establishment of the Silk Roads (1st Century BC – 5th Century AD; 13th-14th Centuries AD) ‘Luxury products such as silk, porcelain and spices were steadily gaining popularity. (Clove, ginger, turmeric, nutmeg, frankincense, black pepper, cinnamon, and saffron) made their way to Europe. The routes traversed from China through Asia Minor. The Spice Routes & Maritime Silk Road (7th-15th centuries) Spices became a key selling commodity for Europeans during the Middle Ages. Gold became a major medium of trade, and banking was adopted during this time. Age of Discovery & Exploration (15th-18th Centuries) With the fall of Constantinople in 1453, land routes to the original Spice Roads were blockaded by the Ottomans. The West & East Indies and Americas were discovered by the Great Powers (British, Dutch, French, Portuguese, Spanish). “Scrambles” for uncharted territories gave rise to tensions between the European powers. “God, Gold, & Glory” First Wave of Globalization (19th century-1914) ∙ The Industrial Revolution, drastically streamlined transportation and communication lines. ∙ Innovations like the steam engine, telegraph, and electricity ushered for the mass production of goods and products and their transportation to other parts of the world. Second and Third Wave of Globalization (1946-1990s) ∙ Occurred roughly after World War II and greatly benefited from the scientific advancements of the ‘arms-race’. ∙ Institutions like the European Union, United Nations were formed as vehicles for free trade and cooperation. Globalization 4.0 (2000s-present) ∙ Increasing international cooperation and integration. ∙ Increased connectivity and intercultural exchange, interaction. ∙ the new frontier of globalization is the cyber or digital world (e-commerce, digital services, 3D printing). Globalization: Now Interstate and Intercontinental travel is more common. Increased socio-cultural connectivity and hastened generation & death of social trends. Diverging state interests are continuously observed. Key Takeaways: The phenomena of globalization has undergone a continuous process of development. It was primarily driven by trade and industry (economic needs). It was also inherently Euro-centric as it was driven by European & Western expansion and colonialism. Throughout history, increasing integration and cooperation has been a recurring trend. III. Dimensions of Globalization Globalization is a multi-faceted phenomena that encompasses many dimensions of human society. In this lesson, the different dimensions of Globalization and their intricacies will be discussed in detail The Different Dimensions of Globalization Economic Technological Political Ideological Cultural Environmental Economic Dimension ∙ The world is governed by a free world market, without restriction of competition and mobility. ∙ This market fulfills its allocation function to guide flows of goods, services, capital information, and labor to the places wherever they are needed. ∙ Increasing interdependence of enterprises through world trade, foreign investments, and international banking Technological Dimension ∙ Post-industrial firms are now Virtual – a flexible network of cooperative relations that could function through computers and mobile gadgets. ∙ Access to the internet is now a primary need, not want. ∙ Private and public sectors utilize a blend of traditional and digital methods in the delivery of their services and the sale of their products. Political Dimension ∙ Nations and States are actors in the international stage, where governance is enacted through representation in international organizations. ∙ Nation-states engage in many transactions through recognition. ∙ Often done in the form of bilateral, multilateral agreements, treaties, and joint ventures. Ideological Dimension ∙ ‘triumph of liberalism/capitalism’ (Fukuyama, 2022) ∙ Contemporary history in the last 50 years has been grappled between Capitalism and Communism. ∙ The fall of the Soviet Union in 1991 debunked the credibility of Communism as an effective political and economic ideology. Cultural Dimension ∙ Characterized by modernization and hybridization ∙ Globalization of culture is often driven by Western ideas. ∙ Modernization – new improvisations and influences of culture ∙ Hybridization – conjunction of separate cultures, forming another. Environmental Dimension ∙ The world is one ‘fragile ecological system’. ∙ An imbalance will cause effects on both local and global levels. ∙ Technical progress and production of risk for the environment are closely related to each other. Theories of Globalization Primarily viewed through eight perspectives: Liberalism Political Realism Marxism Constructivism Postmodernism Feminism Transformationalism Eclecticism Liberalism ∙ Sees globalization as a market-led extension of modernization. ∙ Result of natural human desires for economic welfare and political liberty. ∙ Best observed through: Creation of Technological Legal Advancements Institutions Political Realism ∙ Focuses on state power and national interest of states ∙ States are inherently acquisitive and self-serving. Hence, some are dominant and subordinate. ∙ Theorists suggest that having a dominant state/s actually establishes world order. This is called a ‘hegemon’. ∙ They maintain and define international rules and institutions. Marxism ∙ Principally concerned with modes of production, social exploitation through unjust distribution of capitalism. ∙ They reject both Liberal and Political realist perspectives. ∙ Marx: “Capital, by nature, drives beyond every spatial barrier to conquer the earth for its market”. ∙ Globalization happens because trans-world connectivity enhances opportunities of profit-making and surplus accumulation. Constructivism ∙ Globalization has arisen because of how people have mentally constructed the social world. ∙ Constructivists concentrate on the ways that social actors ‘construct’ their world: Within the With Mind Others ∙ Conversation and symbolic exchanges lead people to construct ideas of the world, the rules for social interaction, and ways of being and belonging in that world. Postmodernism ∙ Rejects concepts of rationality, objectivity, and universality. ∙ It emphasizes the diversity and plurality of the human experience. ∙ Postmodernism helps expose the many social and structural conditions that have favored globalization. ∙ Globalization cannot be universally defined. ∙ Subjectivity, Deconstruction, and Hyperreality are some main concepts ∙ “There are truths but no truth.” – Albert Camus Feminism ∙ based on the social construction of masculinity and femininity ∙ Throughout history, women tended to have been marginalized, silenced, and violated ∙ Globalization is now an avenue and means for women from the peripheral and vulnerable sectors to be empowered. Transformationalism ∙ Globalization reflects increased interconnectedness in political, social, and cultural matters across the world, creating a “shared social space”. ∙ It is a process or system for which every change in the world is a consequence of the globalization of power, ideas, and institutions. ∙ Changes and transformations are an inevitable consequence of globalization. Eclecticism ∙ Synthesis and weaving together aspects of many current theories. ∙ many issues revolving around the phenomena of globalization, cannot be deemed the source of the other; they are both causes and effects. ∙ This tendency is naturally most apt to manifest itself when established systems are losing their novelty or revealing their defects as changes of historical circumstance or scientific knowledge occur.