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 Woodssystem
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 pricesof 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