CONM - GLOBALIZATION

• Globalization is derived from the word “globalize” which refers to the emergence of an international network of economic systems.
• Globalization is also a process of interaction and integration among the people, companies, and governments of different nations.
• Manfred Steger described the process of globalization as “the expansion and intensification of the social relations and consciousness across the world time and across world – space.”
• On the mid-1990s, Martin Khor once regarded globalization as colonization.
• Economic Globalization – refers to interconnectedness of economies through trade and exchange of resources. It also refers to the widespread international movements of goods, services, capital, technology and information.
• Economic globalization primarily comprises the globalization of products, finance, markets, technology, organizational regimes, institutions, corporations, and labor.
• Social Globalization – it pertains to human interaction within cultural communities, encompassing topics like family, religion, work and education.
• Social Globalization – It is a global interconnectedness between the people.
• Social Globalization - It is also a measure of how easily information and ideas pass before people in their own country and between different countries (includes access to internet and social media networks.)
• Political Globalization – refers to the amount of political co-operation that exist between different countries.
• Political Globalization refers to the growth of the worldwide political system, both in size and complexity.
• Political Globalization – It also refers to the organization of different countries intro trade blocs.
• Broad and inclusive definition according to Ohmae 1992 – “globalization means the onset of the borderless world.”
• Broad and inclusive - It can include a variety of issues that deal with overcoming traditional boundaries.
• ADVANTAGES of Broad and inclusive

  • Equal opportunities for everyone

  • Secured opportunities for everyone

  • Growth for the countries

  • Development of the nations
• DISADVANTAGES of Broad and inclusive

  • Reshaping of government institutions to cater for everyone

  • Economic processes need to be reorganized

  • Social processes require reorganization

  • Failure to focus on the country’s own people and policies
• Narrow and exclusive defined by Robert Cox as “the characteristics of the globalization trend include 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 the states into agencies of the globalizing world”.
• ADVANTAGES of Narrow and exclusive

  • Focuses on the development of the country

  • Enhancement of the policies in a country

  • Supported by people

  • Gives importance to the people and the cultures inside the country
• Narrow and exclusive - This definition of globalization focuses on one spot, particularly its own.
• Narrow and exclusive - It has a very limited point of view because of the lack of reference. It fails to recognize the role of other parties as a potential partner.
• DISADVANTAGES of Narrow and exclusive

  • Results to trade wars with other countries

  • Limited perspective

  • Failure to establish connections with other countries
• Liberalization: It stands for the freedom of the entrepreneurs to establish any industry or trade or business venture, within their own countries or abroad or in short “removing of controls”.
• Free trade or the free market: It stands for free flow of trade relations among all nations.
• Globalization of Economic Activity: It stands for the process of integrating the domestic economy with world economies.
• The features of the globalization of economic activity include an international development of trade, production, investments and flow of workforce.
• Economic activities are to be governed both by the domestic market and also the world market.
• International Trade: relates to the exchange of capital and goods in the global market.
• International trade is an exchange involving a good or service conducted between at least two different countries.
• The exchanges can be imports or exports.
• An import refers to a good or service brought into the domestic country.
• An export refers to a good or service sold to a foreign country.
• Production: It is a process of transforming tangible and intangible inputs into goods or services.
• Raw materials, land, labor and capital are the tangible inputs, whereas ideas, information and knowledge are the intangible inputs. These inputs are also known as factors of production.
• Investment: It is an asset or item accrued with the goal of generating income or recognition.
• In finance, an investment is a financial asset bought with the idea that the asset will provide income further or will later be sold at a higher cost price for a profit
• Workforce: is the number of people who are employed plus the unemployed who are looking for work.
• The labor pool does not include the jobless who aren't looking for work.
• Privatization: Keeping the state away from ownership of means of production and distribution and letting the free flow of industrial, trade and economic activity across borders.
• Privatization is a way to equalize the proper distribution of goods and services not only within one’s jurisdiction but also outside to avoid that instance of concentration of goods in the hands of one person.
• Increased Collaborations: Encouraging the process of collaborations among the entrepreneurs with a view to secure rapid modernization, development and technological advancement.