Module-1 (Globalization)

• Globalization is derived from the word “globalize” which refers to the emergence of an international network of economic systems. This is also a process of interaction and integration among the people, companies, and government 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.”
• Bauman (2003) states that much has change during time immemorial. Human beings have encountered many changes over the last century especially in their social relationships and social structures of these changes, one can say that globalization is very important change, if not, the most important.
• Thomas Larsson saw the globalization as the process of world shrinkage, of distance getting shorter, things moving closer; it pertains to the increasing ease with which somebody on one side of the world interact, to mutual benefit with somebody on the other side of the world. On the mid-1990s, Martin Khor once regarded globalization as colonization.
• Economic Globalization – refers to interconnectedness of economies through trade and exchange of resources.
• Social Globalization – it pertains to human interaction within cultural communities, encompassing topics like family, religion, work and education.
• Political Globalization – refers to the amount of political cooperation that exist between different countries.
• Social Globalization is also the global interconnectedness between the people. It is also a measure of how easily information and ideas pass before people in their own country and between different countries
• Political Globalization refers to the growth of the worldwide political system, both in size and complexity. It also refers to the organization of different countries intro trade blocs.
• It is very important to study globalization because understanding the contemporary international political economy is an essential part of being an informed citizen.
• The purpose of studying globalization to understand the differences and similarities of different cultures and to understand how we are connected and at the same time separated from the world.
• Broad and inclusive definition according to Ohmae 1992 – “globalization means the onset of the borderless world.”
• 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”.
• . 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 the nations.
• Globalization of Economic Activity: Economic activities are to be governed both by the domestic market and also the world market. It stands for the process of integrating the domestic economy with world economies.
• 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.
• 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.
• Investment: It is an asset or item accrued with the goal of generating income or recognition.
• In an economic outlook, an investment is the purchase of goods that are not consumed today but are used in the future to generate wealth.
• 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.
• Underemployment: lack of paid work or work that makes full use of skills and abilities
• Unemployment: the state of being unemployed
• Liberalization of Import-Export System: It stands for liberating the import- export activity and securing a free flow of goods and services across borders.
• 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.
• Economic Reforms: Encouraging fiscal and financial reforms with a view to give strength to free world trade, free enterprise, and market forces.
• Many anti-globalism activists see globalization as the promotion of a Corporatist agenda, which is intent on constricting the freedoms of individuals in the name of profit.
• Supporters of free trade point out that economic theories such as comparative advantage suggests that free trade leads to a more efficient allocation of resources, with all those involved in the trade benefitting.
• Gross Domestic Product (GDP) is the total value of all final goods and services produced within a country in a given year.
• Gross National Product (GNP) measures the total monetary value of the output produced by a country's residents.
• Employment Considered as one of the most crucial advantages, globalization has led to the generation of numerous employment opportunities.
• Education A very critical advantage that has aided the population is the spread of education.
• Product Quality. The product quality has been enhanced so as to retain the customers.
• Cheaper Price Globalization has brought in fierce competition in the markets. Different business schemes are actually adapted by the business owner to get more, as the law of supply and demand dictates.
• Communication Every single information is easily accessible from almost every corner of the world circulation of information is no longer a tedious task, and can happen a second.