Textbook- CH 15

• Globalization


  A process of decreasing constraints on the interactions among the nations and peoples of the world
• Dimensions of globalization


  • Economic
  • Political
  • Social or cultural
• Economic globalization


  The integration of fragmented markets into a global economy
• Political globalization


  The process by which world power relationships change and there is a loss of sovereignty by the state
• Social or cultural globalization


  The emergence of a worldwide cultural system
• Issues arising from globalization

  • Damage to the environment
  • Business' alleged support for oppressive governments
  • Criticism of marketing practices
  • Businesses associated with the arms trade
  • Treatment of employees in developing countries
  • Income and gender inequity
  • Genetic modification of plants and animals
  • Corruption and bribery
• Arguments for globalization (Globalists)

  • Trade is encouraged as it leads to the most efficient production of goods and services from which all gain
  • Private corporations and open markets provide better goods and services to society
  • Opportunities for employment and higher incomes are enhanced in developing countries
  • The standard of living has increased in most developing countries
  • The transfer of capital, technology, intellectual property, and even skilled labour occurs
  • Several stakeholders benefit, including owners, consumers, suppliers, and employees
  • Cost of living reduced in developed countries
• Arguments against globalization (Anti-globalists)

  • The expansion of global corporations is undesirable as decisions are based on profit-making or greed
  • Conspiracies exist between corporations and governments resulting in any benefits being received by a few
  • Unemployment is created in developed economies
  • Poverty and inequality increases in the developing economies
  • Periodic financial crises are caused disrupting the economies of many countries
  • There is destruction of local environments as standards are lowered to attract developments
  • The cultures of societies are lost or changed
  • Human rights are violated, in particular in relation to sweatshops
  • Questionable payments are made to governments or their officials to facilitate business
  • Intellectual property is not respected
  • The sovereignty of nations is undermined
  • Worldwide organizations such as the World Bank, the International Monetary Fund, and the World Trade Organization have too much influence
• World Trade Organization (WTO)


  The only global international organization dealing with the rules of trade between nations
• WTO agreements are negotiated and signed by the world's trading nations with the goal of ensuring that trade flows as smoothly, predictably, and freely as possible
• Major trade agreements signed by Canada

  • North American Free Trade Agreement (NAFTA)
  • Comprehensive Economic and Trade Agreement (CETA) with the European Union
  • Comprehensive and Progressive Agreement for Trans-Pacific Trade Partnership (CPTPP) with 11 countries bordering the Pacific Ocean
• Trade protectionism occurs when barriers, such as tariffs and quotas, are imposed, having a negative impact on economic well-being
• Great Britain's decision to leave the European Union and the United States' decision to not participate in some trade agreements and to become more protectionist by imposing tariffs on some goods appear to counter globalization
• Slowbalisation


  The pace of globalization being slowed
• International non-governmental organizations (INGOs)


  Groups that hold shared values and attitudes about the issues relating to globalization and advocate for changes to improve the conditions in developing countries
• Many issues arise in addition to those listed, and INGOs are putting pressure on corporations and governments
• Many INGOs are opposed to globalization and attempt to counterbalance what they consider the excessive influence of multinational corporations
• Some INGOs address all issues of globalization, while others focus on human rights or the environment
• Transnational non-government actors (TNGAs)

  Another term for INGOs
• Transnational social movement organizations (TSMOs)

  Another term for INGOs
• Corporate Watch


  • Its purpose is to hold corporations accountable for their actions
  • It investigates and exposes corporate violations of human rights, environmental crimes, and fraud and corruption around the world
  • It works to foster global justice, to promote independent media activism, and to gain democratic control over corporations
• Oxfam International


  • A confederation of 19 organizations working together with partners and communities in more than 90 countries to find lasting solutions to poverty, suffering and injustice
  • Its vision is "a just world without poverty" by helping to create lasting solutions to the injustice of poverty
• Amnesty International


  • A worldwide organization with 7 million members, supporters, and subscribers in 150 countries and territories
  • It campaigns for internationally recognized human rights
  • One current campaign is "Corporate Accountability" where it maintains that globalization through the existence of multinational corporations has changed the world we live in and presents new and complex challenges for the protection of human rights
• Greenpeace International


  • An independent global organization focusing on worldwide threats to the planet's biodiversity and environment
  • Issues addressed include climate change, the well-being of forests and oceans, food, toxic chemicals, and nuclear energy
• Such organizations have received considerable attention, particularly with demonstrations at world economic gatherings
• A coalition of civil society and environmental INGOs plus labour organizations has disrupted various WTO and World Bank meetings, and G8 and G20 Summits
• INGOs' publications, media events, and websites are influential
• Role of INGOs in globalization

  • Representing those with little or no voice, including the poor, sick, and uneducated; the victims of civil wars; and Indigenous Peoples
  • An important contribution in civil society that cannot be ignored by governments or corporations
• Not all INGOs are alike or hold the same views, and not all are opposed to globalization
• INGOs believe that poverty and inequality must be addressed
• INGOs are concerned that rich countries are becoming better off and that rich persons within countries are becoming richer at the expense of the poor
• INGOs believe that corporate influence is dominating government decision making and that corporate ownership of the media prevents alternative views from being aired
• There is increasing cooperation between corporations and INGOs
• Partnership between INGOs and a corporation in the forestry industry

  • Domtar Corporation, Ecopaper, and INGOs Forest Stewardship Council® and Rainforest Alliance
• Domtar's partnership with INGOs

  • Domtar must maintain forests according to FSC standards relating to biodiversity, protection of water sheds, and support the rights of those whose livelihoods depends on the forest
  • Rainforest Alliance certification assesses Domtar's operations through audits that include species inventories, forest inspections, management plan reviews, and with input from interested parties
  • EarthChoice® Office Paper is also endorsed by the World Wildlife Fund and displays an Ecolabel® and the recycling symbol
• Supranational institution


  An international organization that transcends national boundaries where the member states share in decision making on particular issues pertaining to the members
• Supranational institutions


  • World Bank
  • International Monetary Fund
  • International Labour Organization
  • World Trade Organization
  • World Economic Forum
• World Bank


  • Established with the objective of providing financing to enhance the economic development of countries after the Second World War
  • Today it focuses its financial and technical assistance to developing countries in Africa, Asia, Latin America, and the Middle East
  • Aims to reduce poverty and improve living conditions in developing countries
  • Provides low-interest loans, interest-free credit, and grants for education, health, infrastructure, communications, and other purposes
• International Monetary Fund (IMF)

  • An organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty
  • Although monetary and financial policies are a focus, it is also concerned with the social impacts of these policies
• International Labour Organization (ILO)


  • The United Nations agency that seeks the promotion of social justice and internationally recognized human and labour rights
  • Formulates standards of basic labour rights including the freedom of association, the right to organize, collective bargaining, abolition of forced labour, and equality of opportunity and treatment
  • Has been influential in the area of accountability for sweatshops in developing countries
  • Established the World Commission on the Social Dimension of Globalization to assist people coping with changes brought about by globalization