GE104

• Globalization


  Increasing interaction of people, states, or countries through the growth of the international flow of money, ideas, and culture. Primarily focused on the economic process of integration that has social and cultural aspects.
• Globalization


  Interconnectedness of people and businesses across the world that eventually leads to global, cultural, political, and economic integration.
• Globalization


  Ability to move and communicate easily with others all over the world to conduct business internationally.
• Globalization


  Free movement of goods, services, and people across the world in a seamless and integrated manner.
• Globalization


  Liberalization of countries of their impact protocols and welcoming foreign investment into sectors that are the mainstays of its economy.
• Globalization


  Countries acting like magnets attracting global capital by opening up their economies to multinational corporations.
• 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 as 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. One can easily cross the bridge going to the other side of the marketplace due to advanced tools of technology than before
  • 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
• Reasons for Globalization


  • To get technological and managerial know-how of other countries due to their advancement in science, technology, education, health, and other fields of discipline
  • To reduce high transportation costs if one goes globally using the advanced tools of communication and information
  • To be close to raw materials and to markets for their finished products which are not available in the country of origin
  • The creation of the World Trade Organization (WTO) made it possible to stimulate increased cross-border trade. There are other world bodies like the UN and several arbitration bodies where countries agree
• Merits of Globalization


  • An open economy spurs fast innovation with fresh ideas from abroad
  • Export 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
• Ethnoscape


  Global movement of people
• Mediascape


  About the flow of culture
• Technoscape


  Circulation of mechanical goods and software
• Financescape


  Denotes the global circulation of money
• Ideoscape


  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
• Global economy


  A system of trade and industry across the world that has emerged due to globalization. The way in which countries' economies have been developing to operate collectively as one system.
• Economic Globalization


  A historical process, a result of human innovation and technological process. It refers to the increasing integration of economies around the world, particularly through the movement of goods, services, and capital across borders. It may also refer to the movement of people (labor) and knowledge (technology) across international borders.
• Global Stratification


  The hierarchical arrangements of individuals and groups in societies around the world.
• Typologies of Global Stratification

  • First World - Western Capitalist democracies of North and Europe, and certain other nations
  • 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

  • Developed
  • Developing
  • Undeveloped
• Popular Typology

  • 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 by European ones.
• World System Theory


  Some nations become modernized by exploiting other nations.
• Types of Global Poverty

  • Relative poverty
  • Absolute poverty
  • Subjective poverty
• Institutions in the Modern World System

  • Market
  • Firms
  • States
  • Household
  • Classes
  • Identities
• Global Interstate System


  The fundamental basis of the competitive commodity economy at global system level. A system of international relations.
• 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 with one another to reduce or eliminate barriers to the international flow of products, people and capital.
• Political Integration


  The integration of political system with economic, social, and other human system; the political process by which social, economic and political become integrated. It includes the creation of regional political institutions.
• 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 (IGOs)
  • Non-Governmental Organization (NGOs)
• Interdependence


  Relationship between countries in which each country is dependent on another for necessary goods or services