GLOBALIZATION

• Early modern or proto-globalization

  The phase of increasing trade links and cultural exchange that characterized the period immediately preceding the advent of high "modern globalization" in the late 19th century
• Period of early modern or proto-globalization

  1600-1800
• Early modern globalization


  • Characterized by the rise of maritime European empires in the 15th and 17th centuries, first the Portuguese Empire (1415) followed by the Spanish Empire (1492), and later the Dutch and British Empires
  • Marked by trade arrangements like the East India Company
  • Shift of hegemony to Western Europe
  • Transfer of animal stocks, plant crops, and epidemic diseases associated with the Columbian Exchange
  • Involved European, Muslim, Indian, Southeast Asian, and Chinese merchants, particularly in the Indian Ocean region
• Modern globalization (1815-1870)


  • Conclusion of the Napoleonic Wars brought an era of relative peace in Europe
  • Innovations in transportation technology reduced trade costs substantially
  • New industrial military technologies increased the power of European states and the US, allowing them to forcibly open up markets and extend their empires
  • Gradual move towards greater liberalization in European countries
• Industrialization


  1. Allowed standardized production of household items using economies of scale

  2. Rapid population growth created sustained demand for commodities
• Transportation revolution


  1. Occurred sometime between 1820 and 1850

  2. More nations embraced international trade
• Globalization after World War II

  1. Bretton Woods Conference laid down the framework for international monetary policy, commerce, and finance, and the founding of several international institutions intended to facilitate economic growth by lowering trade barriers

  2. GATT led to a series of agreements to remove trade restrictions

  3. GATT's successor was the WTO, which provided a framework for negotiating and formalizing trade agreements and a dispute resolution process
• Technological changes since 1970s

  1. Aviation became increasingly affordable to middle classes in developed countries

  2. Open skies policies and low-cost carriers brought competition to the market

  3. Growth of low-cost communication networks cut the cost of communicating between countries

  4. More work can be performed using a computer, including accounting, software development, and engineering design
• Student exchange programs


  1. Became popular after World War II

  2. Intended to increase participants' understanding and tolerance of other cultures, improve language skills, and broaden social horizons

  3. Number of students studying in a foreign country increased 9 times between 1963 and 2006
• Globalization


  A process of interaction and integration among the people, companies, and governments of different nations, driven by international trade and investment and aided by information technology
• Globalization (WHO definition)


  The increased interconnectedness and interdependence of peoples and countries, the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas, and the changes in institutions and policies at national and international levels that facilitate or promote such flows
• Globalization (UN definition)


  The increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, the flow of international capital and the wide and rapid spread of technologies
• Globalization (geography)


  The set of processes (economic, social, cultural, technological, institutional) that contribute to the relationship between societies and individuals around the world. A progressive process by which exchanges and flows between different parts of the world are intensified.
• Advantages of globalization


  • Transfer of technology
  • Better services
  • Standardization of living
  • Development of infrastructure
  • Foreign exchange reserves
  • Economic growth
  • Affordable products
  • Contribution to world GDP growth rate
  • Extensions of market
  • Better education
• Disadvantages of globalization


  • Growing inequality
  • Increasing unemployment rate
  • Brain drain
  • Trade imbalance
  • Environmental problems
  • Spread of diseases/viruses
  • Territorial dispute
  • War
  • Loss of cultural identity
• Economic globalization


  The development of trade systems within transnational actors such as corporations or NGOs
• Financial globalization


  The rise of a global financial system with international financial exchanges and monetary exchanges
• Examples of financial globalization


  • Stock markets
  • When one stock market has a decline, it affects other markets negatively as well as the economy as a whole
• Cultural globalization


  The interpenetration of cultures which, as a consequence, means nations adopt principles, beliefs, and costumes of other nations, losing their unique culture to a unique, globalized supra-culture
• Political globalization


  The development and growing influence of international organizations such as the UN or WHO means governmental action takes place at an international level
• Sociological globalization


  Information moves almost in real-time, together with the interconnection and interdependence of events and their consequences. People move all the time too, mixing and integrating different societies
• Technological globalization


  The phenomenon by which millions of people are interconnected thanks to the power of the digital world via platforms such as Facebook, Instagram, Skype or Youtube
• Geographic globalization


  The new organization and hierarchy of different regions of the world that is constantly changing. Moreover, with transportation and flying made so easy and affordable, apart from a few countries with demanding visas, it is possible to travel the world without barely any restrictions
• Ecological globalization


  Accounts for the idea of considering planet Earth as a single global entity – a common good all societies should protect since the weather affects everyone and we are all protected by the same atmosphere