The process of world shrinkage, of distances getting shorter, things moving closer. It pertains to the increasing ease with which somebody on one side of the world can interact to mutual benefit with somebody on the other side of the world.
Globalization has gained many connotations pertaining to progress, development and integration
Globalization is seen by some as occurring through and with regression, colonialism and destabilization
Metaphor for globalization
Solid and Liquid
Solidity
Barriers that prevent or make difficult the movement of things, or people; can be natural or man-made
Natural Solids
Landforms and Bodies of water
Man-made Solids
The Great Wall of China, The Berlin Wall, the "nine-dash line" used by China in the South China Sea
Liquidity
The increasing ease of movement of people, things, information, and places in the contemporary world
Liquidity is the one increasing and proliferating today, so the metaphor that best describes globalization is Liquidity
Flows in globalization
The movement of people, things places and information brought about by the growing porosity of global limitations
Flows in globalization
Foreign cuisines being consumed by Filipinos
Global financial crisis affecting regions worldwide
Poor illegal migrants flooding many parts of the world
Virtual flow of legal and illegal information
Job migration like Filipino communities abroad and Chinese community in the Philippines
Globalization can be traced back to when humans first put a boat into the sea, and key events like the Roman conquest, voyages of Columbus and Magellan
Notable changes that are origins of globalization today
Emergence of the US as global power (post WWII)
Emergence of Multinational Corporations (MNCs)
Demise of the Soviet Union and end of the Cold War
Core claims of globalization backers and supporters
Globalization is about liberalization and global integration of markets
Globalization is inevitable and irreversible
Nobody is in charge of globalization
Globalization benefits everyone
Globalization furthers the spread of democracy
Globalization requires war on terror
Prominent promoters of globalization
Thomas Friedman
Martin Wolf
Mustafa Akyol
Theodore Levitt
Fareed Zakaria
Lee Kuan Yew
Hillary Clinton
Emmanuel Macron
Jose Manuel Barroso
Positive aspects of globalization
Multi-culturalism and multi-lingualism
Free trade
Cultural and educational exchanges
Migration
Global cooperation
Multi-Culturalism and Multi-Lingualism
Free exchange of goods and services need swift communication, hence the need to learn different culture and as many language as possible
Free Trade
Reduced costs on selling products almost worldwide provided huge profits for a number of big trans-national corporations, resulted in cheaper prices of some consumer goods such as: cell phones and computers
Cultural and Educational Exchanges
The rise of multi-lingualism inevitably leads to the study of diverse cultures and eventually, more educational exchanges such as EU's Erasmus Mundus Program between universities of all countries
Migration
(at least within EU member countries) citizens can freely visit and work in any country; and at least before the 2008 crisis hit, the Third World migrants can relatively easily find jobs in and eventually migrate to more developed countries
Global Cooperation
Globalization's rules and mechanisms are created and governed by global entities such as WTO- where almost all countries are represented, and global institutions such as the United Nations encourage global cooperation on many issues ranging from climate change, poverty eradication and presently this pandemic Covid 19
Linguistic Hegemony of English
As the US and the then very much UK- influenced the EU utilize English, (as the universal language) globalization compels other countries to use it as well, with some former colonies such as the Philippines and Malawi, even prioritizing it over their own national language
Cultural Homogenization
Big corporations such as: fast food chains like McDonald's, consumer item giants like Nestle, and Hollywood film companies like Pixar, Marvel, and Disney dominate markets in many countries because of their enormous financial power and presence in almost every country
Third World dependence on the First World
Despite globalization's obvious contribution to the successful leap of some countries from Third to First World status, more Third World countries complain that the current setup favors developed countries more, especially with regard to rules that prohibit developing countries from providing massive state subsidies or aid to their farmers – while EU heavily subsidies their agricultural sector, and the way global financial institutions fail to help many developing countries jumpstarting their industrialization
Global Income and Wealth Inequality
As only the biggest corporations seem to benefit from stiff competition and unbridled free trade
Tax Injustice
Under globalization, countries compete for foreign investment and are forced to lower corporate tax rates, thereby reducing the expected government income which can be used for social services that can shield the most vulnerable sectors from the negative effects of globalization
Racism and Anti- Migrant sentiments
As corporations in many First World countries hire more migrants to save on wages, First World working-class citizens complain about being left behind in their own countries, hence partly fueling the rise of racism and anti-migrant sentiments
Reasons why globalization is more favorable to developed countries
Developed countries investments in developing countries earn profits which the former typically repatriate, rather than re- invest in the latter
Developed countries control multi -lateral financial institution such as: IMF, World Bank, and even the biggest private banks that are capable of bankrolling or frustrating any effort towards industrialization contemplated by progressive developing countries governments
Technology transfers on a massive scale seldom happens, hence developed countries tend to retain a monopoly on innovations vital to the growth of the manufacturing sector
The bulk price of the developing countries main exports (raw materials and semi-manufactured goods) is lower than the bulk price of their typical imports from developed countries (technology/machinery and high value products)
The migration of workers and professional from developing countries to the developed countries depletes the former's human resources which they need to free themselves from poverty and dependency
The education system of developing countries is aligned with the needs of developed/capital rich countries which are also typical destinations of migrant workers from the developing nations
Economic globalization (UNCTAD definition)
Closer integration of national economies through trade and financial flows as well as cross-border migration of people
Four Freedoms of the European Union
Free movement of goods or products
Free movement of capital
Free movement of persons
Free movement of services
Liberalization
The abolition of tax on imported goods (tariff)
Deregulation
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
Liberalization and Deregulation are economic processes that typically require special laws and / or policies
20 nations signed General Agreement on Tariffs and Trade (GATT) which primarily aims to regulate international trade
October 30, 1947
In 1995, GATT was formally supplanted by the World Trade Center (WTO)
The WTO-GATT describes itself as "the only global international organization dealing with the rules of trade between nations"
The WTO-GATT was negotiated and signed by the bulk of the world's trading nations and ratified in their parliaments to help producers of goods and services, exporters, and importers conduct their business
The WTO-GATT systems came under intense criticism in 2008 after a major financial crisis hit the United States, with the contagion reaching Europe and other parts of the world because of the strong financial and economic ties of countries under globalization