Contemporary World 1

• Globalizations refers to circumstances and ideas of the present age, where it deals with problem and issues related to environment, population, wealth, power, tensions, and conflicts
• Globalization


  The changes in societies and the world economy that are the result of dramatically increased trade and cultural exchange
• Free trade


  Exchange or policy of goods and products between nations without tariff or tax
• Social movement


  People and organizations advocating for positive social change through a variety of means and approaches
• Deregulation


  Loosening or lifting of government regulations, usually to favor private corporations' flexibility of operations and profitability
• Liberalization


  Process or policy of removal or reduction of restrictions or barriers on the free trade between nations
• Privatization


  Process or policy of subjecting an industry or service to private control and partnership
• Silk Road (China to Middle East and Europe)


  130BC
• Galleon Trade (Manila to Acapulco)


  1571
• Gold Standard (UK and US)


  1867
• Four freedoms of the European Union

  • Free movement of goods or products
  • Free movement of services
  • Free movement of capital or investment
  • Free movement of persons
• The free movement of goods or products is facilitated by liberalization or the abolition of tax on imported goods (tariff)
• The free movement of capital or investment is implemented through deregulation or the lifting of strict banking and financial regulations aimed at encouraging investors to invest more and retain their ability to pull out their investments at any time with ease
• The free movement of persons is achieved through loosening or abolition of visa restrictions and barriers to migration
• Liberalization and deregulation are economic processes that typically require special laws and/or policies
• Globalization first appeared in the 1940s, but did not gain widespread traction until the 1990s
• Globalization is sometimes mistaken for an unstoppable juggernaut 'Americanizing' the world
• A more nuanced understanding of the interactions between the local, national, regional, and global is needed
• Globalization


  A set of social processes that lead to the social condition of globalism, through the growing consciousness of global connectivity
• There is no consensus on exactly what processes constitute globalization, but common themes include the creation of networks, expansion of social relations, and the acceleration of social exchange
• The early modern period saw the birth of capitalism and regional markets
• The modern period saw the Industrial Revolution provide massive advances in technology at the expense of the environment
• The contemporary era is an era of convergence, with people coming together through deregulated economic and ICT systems
• Issues/Conflict on the Idea of Globalization

  • Migration and outsourcing of jobs
  • Wage hikes
  • Privatization of industries and services
• 3 Components of Economic Globalization

  • Economic globalization
  • Cultural/social globalization
  • Political globalization
• Economic globalization


  The widespread international movement of goods, capital, services, technology and information
• Elements of Economic Globalization

  • Production
  • Finance
  • Markets
  • Technology
  • Organizational
  • Regimes
  • Institutions
  • Corporations
  • Labour
• The economic globalization is one most often mentioned in the media
• It is associated with massive amounts of financial traded daily on the different stock markets around the label "NEW ECONOMY"
• 3 Economic Institutions Created to Monitor the Economy


  • The International Monetary Fund (IMF)
  • The International Banks for Reconstruction and Development (IBRD) later named the WORLD BANK (WB)
  • The General Agreement on Tariffs and Trade (GATT, renamed of the WORLD TRADE ORGANIZATION in 1992)
• All these factors helped lay the rationale for the founding of what came to be known as the Bretton Woods system which replaced the gold standard and aided capitalist countries toward achieving closer economic integration
• In 1944, 44 capitalist countries led by the US met at Bretton Woods, a town in New Hampshire, resulting in agreements that created an international basis for exchanging one currency for another
• Globalization


  • borderless world
• Bretton Woods system


  Precursor to the current global economic setup
• Bretton Woods system


  1. 44 capitalist countries led by the US met in 1944

  2. Agreements created an international basis for exchanging one currency for another

  3. Establishment further stimulated international trade and financed postwar reconstruction

  4. Nations agreed to buy and sell golden age of the US dollar began

  5. US dollar became the world's leading, if not unchallenged, international currency

  6. IMF and the WB both under its control and influence
• International payments


  Payment made by a country to another, or an entity of one country to another country
• De facto currency


  Currency which though not a legal tender/legal representative currency of an economy and still used at large among the country
• Gold standard


  Commitment by participating countries to fix the prices of their domestic currencies in terms of a specified amount of gold
• Cultural globalization


  Rapid transmission of ideas, meanings, and values and cultural products across around the world in such a way as to extend and intensify social relations
• Cultural globalization


  • Globalization of food
  • Globalization of sport
  • Converging global consumption patterns