Introduction to Globalization

• Globalization

  • global movement towards integration of the economy, finance, commerce and communications.
• World Health Organization (WHO)

  • Define Globalization, “the increased interconnectedness and interdependence of peoples and countries is generally understood to include two inter-related elements:
• Two inter-related elements:

  1. The opening of international borders - to increasingly fast flows of goods, services, finance, people and ideas;
  2. The changes in institutions and policies at national and international levels - that facilitate or promote such flows.
• WHO

  • Globalization has the potential for both positive and negative effects on development and health.
• Thomas Friedman

  • Defined Globalization as the interweaving of markets, technology, information systems and telecommunications systems in a way that is shrinking the world from a size medium to a size small;
• Thomas Friedman

  • Enabling each of us to reach around the world farther, faster, deeper, and cheaper than ever before. That's what globalization is.
• Manfred Steger

  • According to him, “the term globalization applies to a set of social processes that appear to transform our present social condition of weakening nationality into one of globality.”
• Theories of Globalization

  • The World-economy Theory
  • Modernization Theory
  • Dependency Theory
• The World-economy Theory

  • Focus on world as unit rather than looking in an individual countries
  • It divides world in three regions:

  1. Core (Ex. Western Europe, and US)
  2. Semiperiphery (India and Brazil)
  3. Periphery (Africa and Latin America)
• Modernization Theory

  • All countries follow a similar path of development from traditional to a modern society
• Dependency Theory

  • Reaction to modernization theory and uses the idea of a core and periphery countries from the world system theory to look at the inequalities between countries.
  • They have their own structures and features not seen in developed countries and will not accelerate to become developed nation.
• Different ways to look Globalization too:

  • Hyperglobalist
  • Skeptical perspective
  • Transformationalist perspective
• Hyperglobalist

  • Sees globalization as a legitimate process, new age in human history
  • Countries economies become interdependent as the nation -state themselves become significantly less important.
• Global Skepticism

  • Disagree strongly with hyperglobalists
  • The growing internationalization of trade and investment is really the growth of regional economic blocs
  • Countries borders are not becoming less important and the third world countries aren’t being integrated into the global economy with the same benefits as first world country
• Transformationalism

  • It sees that the world order is changing into uncertain pattern
  • They believed that National Government are changing, perhaps becoming less important but it is difficult to describe the change so simply.
• Globalization Advantages:

  1. Proponents of globalization believe it allows developing countries to catch up to industrialized nations through increased manufacturing.
• Globalization Advantages:

  2. Outsourcing by companies brings jobs and technology to developing countries. Trade initiatives increase cross-border trading by removing supply-side and trade-related constraints.
• Globalization Advantages:

  3. Globalization has advanced social justice on an international scale, and advocates report that it has focused attention on human rights worldwide.
• Globalization Disadvantages

  1. One clear result of globalization is that an economic downturn in one country can create a domino effect through its trade partners.
  2. It has created a concentration of wealth and power in the hands of a small corporate elite which can gobble up smaller competitors around the globe.
• Globalization Disadvantages:

  3. It's seen as a major factor in the economic squeeze on the middle class.

  4. For better and worse, globalization has also increased homogenization.
• Globalization

  • participants are from different parts of the world
  • fast flow of goods
• Key Players - participants to make a movement
• Globalization

  • is a social process wherein key players are connecting each other towards the globe
• Regionalization - within a specific region
• Global Governance - helping other countries when needed
• Globalization

  • resulted from the exchange of culture, technology
  • enhancing our opportunity/access to other things
  • existed before B.C
• Silk Road

  • trading networks, introduced by China
  • one of the most expensive item and is popularized
• Archive Globalization - Old Globalization
• Core

  • wealthiest nation
  • leading in international trading
  • first world countries
• Semi-periphery

  • average wealth
  • 2nd in trading
  • Ex. India, Brazil, China
• Periphery

  • low income
  • experience exploitation (small wage)
  • purchasing power where the economy revolves
  • authoritarian government/corrupt officials
• GDP - total income of a country
• Modernization Theory

  • traditional - modernized
  • you can be a core as long as you can adapt/adjust
  • possible to become a core country
• Dependency Theory

  • a country can't become a core country even if they adapt to the modern culture
  • have their own structures and features
• Uncontrollable Factors:

  • where the country is located (ex. Africa)
  • depending on the country climate
  • Peripheral country - colonized countries, being slaves to other countries
• Hyperglobalist

  • believe in Globalization
  • legitimate (New Era)
  • our lives focuses on our interaction with the world
• Skepticism

  • contradicting to hyperglobalist
  • not everyone that participate to globalization benefits from it
• Regionalization

  • only benefits certain regions
  • there are certain regions that are more wealthier compared to other
  • there are different levels among the countries
• Transformationalism

  • there's no certainty
  • changes that occur out but we don't know when and what it is
  • Factor: changing national government