CW

• Globalization 1.0


  The primary drivers were maritime exploration, the search for new trade routes, and the establishment of colonial empires. European powers, such as Spain, Portugal, England, and France, played a central role in this phase.
• Impacts of Globalization 1.0


  It led to the exchange of goods, cultures, and ideas between the Old World (Europe) and the New World (the Americas), but it also resulted in exploitation, colonization, and the forced labor of indigenous populations.
• Globalization 2.0

  Globalization 2.0 is often associated with industrialization, technological advancements, and the growth of global trade. It began in the 19th century and extended through much of the 20th century.
• Driving Forces of Globalization 2.0

  The key drivers included the Industrial Revolution, the development of steamships and railways, the expansion of telegraph and communication networks, and the rise of multinational corporations.
• Impacts of Globalization 2.0


  It resulted in increased global trade, urbanization, the spread of consumer culture, and the emergence of global economic powers like the United States. However, it also contributed to inequalities between industrialized and non-industrialized nations.
• Globalization 3.0


  Globalization 3.0 is the contemporary phase of globalization, characterized by the rapid flow of information, ideas, technology, and capital across national borders. It began in the latter half of the 20th century and continues into the 21st century.
• Driving Forces of Globalization 3.0


  This phase is driven by advancements in information technology, the internet, digital communication, and the liberalization of financial markets.
• Impacts of Globalization 3.0


  Globalization 3.0 has had profound effects on various aspects of society, including economics, culture, politics, and communication. It has facilitated global supply chains, the outsourcing of jobs, the spread of social media, and the rise of multinational tech companies. It has also brought about debates on issues like income inequality, cultural homogenization, and the role of global institutions.
• Some scholars argue that we are now entering a potential "Globalization 4.0," characterized by emerging technologies like artificial intelligence, biotechnology, and sustainable development as new drivers of global change.
• Globalization as "Globaloney"


  Proponents of this view contend that existing accounts of globalization are incorrect, imprecise, or exaggerated. This is because globalists view everything that can be linked to some transnational process as evidence for globalization and its growing influence.
• Categories of "Globaloney"

  • Rejectionists dispute the usefulness of globalization as a sufficiently precise analytical concept
  • Sceptics point to the limited nature of the globalizing processes, emphasizing that the world is not nearly as integrated as many globalization proponents claim
  • Modifiers dispute the novelty of the process while acknowledging the existence of moderate globalizing tendencies
• Globalization as a process


  Globalization is the process that is making the world's citizens increasingly interdependent
• Economic Globalization


  Affects not only the economic aspects of your life, it also affects the way you live your life.
• Economic Globalization


  • Lunch in McDonalds because it's quick, you shop online because it has wide variety of goods
• Focus of Economic Globalization

  • Trade Liberalization
  • Foreign Direct Investment (FDI)
  • Global Supply Chains
  • Financial Globalization
• Trade Liberalization


  The reduction of trade barriers, such as tariffs and quotas, promotes the flow of goods and services across borders.
• Foreign Direct Investment (FDI)


  Companies invest in and operate businesses in foreign countries, contributing to the global expansion of multinational corporations.
• Global Supply Chains

  The production of goods often involves multiple countries, with components and materials sourced from various locations, making supply chains global in scope.
• Financial Globalization


  The internationalization of financial markets allows for the flow of capital, investments, and the integration of global banking and financial systems.
• Economic accounts of globalization convey the notion that the essence of the phenomenon involves the "increasing linkage of national economies through trade, financial flows, and foreign direct investment ... by multinational firms".
• Globalization is a real phenomenon that signals an epochal transformation in world affairs and that, a quantum change in human affairs has taken place as the flow of large quantities of trade, investment, and technologies across national borders has expanded from a trickle to a flood.
• Multinational firms/corporation (MNC)


  A corporation that has facilities and other assets in at least one country other than its home country. A multinational company generally has offices and/or factories in different countries and a centralized head office where they coordinate global management.
• Key characteristics and aspects of multinational firms

  • Global Operations
  • Diverse Business Activities
  • Global Workforce
  • Global Supply Chains
  • Global Markets
  • Transfer of Technology and Knowledge
  • Economic Impact
  • Market Expansion
  • Political and Regulatory Challenges
  • Corporate Social Responsibility (CSR)
  • Global Competition
  • Risk Management
• The historical narratives that trace the gradual emergence of the new post-war world economy to the 1944 Bretton Woods system and its post-war evolution are usually the core of studies of economic globalization.
• Bretton Woods system


  A post-World War II international monetary system that was established during the United Nations Monetary and Financial Conference held in July 1944 in Bretton Woods, New Hampshire, USA. Key features include fixed exchange rates, the gold standard, the establishment of the IMF and World Bank, and capital controls.
• International Monetary Fund (IMF)


  Key institution of the Bretton Woods system, promoted international monetary cooperation, provided temporary financial assistance to member countries facing balance of payments problems, and facilitated the stability of exchange rates
• World Bank (IBRD)


  Provided financial support for the reconstruction and development of war-torn Europe and other developing nations
• Fixed but Adjustable Exchange Rates

  Exchange rates were fixed, but countries were allowed to adjust their par values if they experienced persistent trade imbalances, subject to IMF approval
• Capital Controls


  Many countries implemented to manage the movement of funds across borders and maintain exchange rate stability
• US Dollar Dominance

  The Bretton Woods system made the US dollar the world's primary reserve currency, giving the US significant economic and financial influence
• The Bretton Woods system succeeded in promoting exchange rate stability and facilitating post-war reconstruction and economic growth
• By the late 1960s, imbalances in international trade and the accumulation of US dollars by foreign central banks led to concerns about the US ability to maintain the fixed exchange rate of the dollar
• In 1971, President Richard Nixon announced the suspension of the US dollar's convertibility into gold, effectively ending the gold standard and leading to the collapse of the Bretton Woods system
• The IMF and the World Bank continued to play significant roles in global finance and development after the collapse of the Bretton Woods system
• International Organizations


  The rise of international bodies like the United Nations, the World Trade Organization, and the International Monetary Fund reflects efforts to address global challenges collectively
• Diplomacy and International Relations


  Nations engage in diplomatic relations, treaties, and negotiations to address global issues such as climate change, terrorism, and human rights
• Global Governance


  The idea of global governance seeks to manage global challenges through international cooperation and the rule of law
• Political Globalization


  The organization of different countries into trade blocs, such as the European Union, the WTO and G8, to spread ideologies like democracy, protect human rights, intervene to solve misunderstandings and aid in international agreements
• Cosmocracy


  World government, global government or cosmocracy is the concept of a common political authority for all of humanity, giving way to a global government and a single state or polity with jurisdiction over the entire world
• Suprastate


  Institutions and multidimensional processes that interact, and have political and social effects on a global scale, existing above or beyond the traditional nation-state