[MIDTERM] Contemporary

• Globalization


  Increased interaction, interconnectedness
• Globalization


  Primarily focused on the economic process of integration that has social and cultural aspects
• Martin Albrow and Elizabeth King

  
  

  'Globalization is a process by which the people of the world are incorporated into a single world society'
• Anthony Giddens: 'Globalization is the intensification of worldwide social relations which link distant localities in such a way that local happenings are shaped by events occurring many miles away and vice versa'
• Prof. Roland Robertson

  'Globalization as the compression of the world and the intensification of the consciousness of the world as a whole'
• Characteristics of globalization


  • Social mobility of movement of people regardless of reason
  • Intensification of interactions
  • Active process
  • Borderless interaction
  • Spread of ideas, knowledge, technology, culture, religion, etc.
• Indicators of globalization


  • Interdependence of countries in different social aspects
  • Advancement of science, technology, etc
  • Environmental issues across borders
  • Economic globalization, cultural globalization, and political globalization
• Nature of globalization


  • A conglomerate of various multiple units located in different parts of the globe which are linked by common ownership
  • Multiple units draw a common pool of resources such as money, credit, information, patents, trade names, and control systems
  • The units respond to some common strategy
  • Product presence is in different markets of the world
  • Human resources are highly diverse
  • Transactions involving intellectual property such as copyrights, patents, trademarks, and process technologies are across the globe
  • Rapid shrinking of time and distance across the globe
  • Domestic markets are no longer rich as a consequence of many interlocking factors
  • Companies and institutions go global to find political and economic stability which is relatively good in other countries than the country of origin
• The 5 scapes of globalization


  • Ethnoscape - global movement of people
  • Mediascape - flow of culture; flow of media across borders
  • Technoscape - circulation of mechanical goods and software
  • Finanscape - global circulation of money
  • Ideoscape - the realm where political ideas move around
• Aspects of globalization


  • Industrial globalization
  • Financial globalization
  • Economic globalization
  • Political globalization
  • Informational globalization
  • Cultural globalization
• Elements of globalization


  • Trade Agreements
  • Capital Flow
  • Migration Patterns
  • Information Transfer
  • Spread Technology
• Merits of globalization

  • An open economy spurs fast innovation with fresh ideas from abroad
  • Exports jobs often pay more than other jobs
  • Productivity grows more quickly when countries produce goods and services in which they are of comparative advantage
• Demerits of globalization

  • Exploitation of Underdeveloped Countries
  • Widening of Rich-poor Gap
  • Harmful Effects on Small Industries and Small Business
• Global economy


  A system of trade and industry across the world that has emerged due to globalization
• Economic globalization


  The increasing integration of economies around the world, particularly through the movement of goods, services, and capital across borders
• Commodity


  A basic physical asset, often used as a raw material in the production of goods or services
• Capital


  Identified with money, wealth; Growth of wealth, surplus value, formed by the labour; Accumulation of wealth with the help of wage labour
• Labor market


  The supply of and demand for labor, in which employees provide the supply and employers provide the demand
• Global stratification


  The hierarchical arrangement of individuals and groups in societies around the world
• First typology of global stratification


  • First World - Western Capitalist democracies
  • Second World - Nations belonging to the Soviet Union
  • Third World - All the remaining nations, almost all of them from Central and South America, Africa and Asia
• Replacement typology of global stratification


  • Developed
  • Developing
  • Undeveloped
• Popular typology of global stratification


  • Wealthy (or high income)
  • Middle-income
  • Poor or low-income
• Modernization theory


  Rich nations became wealthy because early on they were able to develop the correct beliefs, values, and practices
• Dependency theory


  The poor nations never got the chance to pursue economic growth because early on they were conquered and colonized by European ones
• World system theory


  Some nations become modernized by exploiting other nations
• Types of global poverty


  • Relative poverty - Lacking the minimum amount of income needed to maintain the average standard of living
  • Absolute poverty - Not having the minimum amount of income needed to meet basic living needs
  • Subjective poverty - Actual income does not meet expectations and perceptions
• Global interstate system


  The fundamental basis of the competitive commodity economy at global system level; A system of international relations
• International relations (IR)


  The study of interconnectedness of politics, economics and law on a global level
• Economic interdependence


  A relationship between countries in which each country is dependent on another for necessary goods or services
• Economic integration


  A process whereby countries cooperate to reduce or eliminate barriers to the international flow of products, people and capital
• Political integration


  The integration of components within a political system
• International organization


  An organization established by a treaty or other instrument governed by international law and possessing its own international legal personality
• Types of international organizations

  • Intergovernmental Organization (IGO)
  • International Non-Governmental Organization (INGO)
  • Multinational Enterprises (MNE)
• Intergovernmental organization (IGO)


  An organization composed primarily of sovereign states (referred to as member of states), or of other intergovernmental organizations
• Intergovernmental Organizations (IGOs)


  • Association of Southeast Asian Nation (ASEAN)
  • European Union (EU)
  • World Trade Organization (WTO)
  • North American Free Trade Agreement (NAFTA)
  • Organization for Economic Cooperation and Development (OECD)
• International Non-Governmental Organization (INGO)


  A group having members from more than one country, government or non-governmental, profit or non-profit. An international organization not created by an international treaty
• Types of INGOs


  • BINGO: Business-friendly International NGO
  • ENGO: Environmental NGO
  • GONGO: government-organized non-governmental organization
• Multinational Enterprise (MNE)


  (also Multinational Corporation or MNC) An enterprise producing goods or delivering services in more than one country
• Market Integration


  A state of affairs or a process of involving attempts to combine separate national economies into larger economies. It is a means of stimulating trade and improving the division of labor between participating countries
• Types of Market Integration


  • Horizontal Integration
  • Vertical Integration
  • Conglomeration