Ge104

• GLOBALIZATION = increasing interaction of people, states, or countries through the growth of the international flow of money, ideas, and culture. Thus, globalization is primarily focused on the economic process of integration that has social and cultural aspects.
• 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."- 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."- Anthony Giddens
• Globalization is a process by which the people of the world are incorporated into a single world society." - Martin Albrow and Elizabeth King
• Globalization as the compression of the world and the intensification of the consciousness of the world as a whole." - Prof. Roland Robertson
• Characteristics of Globalization • There is social mobility of movement of people regardless of reason • There is an intensification of interactions • It's an 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
• • Stage 1. The first stage is the arm's length service activity of an essentially domestic company/institution that moves into a new market overseas by linking up with local dealers and distributors.
• • Stage 2. the company institution takes over these activities on its own.
• • Stage 3. the domestic-based company institution begins to carry out its manufacturing marketing and sales in key foreign markets.
• • Stage 4. the company/ institution moves to a full insider position in these markets supported by a complete business system including Research and Development (R&<D) and engineering. However, the headquarters mentality continues to dominate.
• • Stage 5. the company/institution moves towards a genuinely global mode of operation. Global localization happens, that is, the company institution serves local customers in markets around the globe responding to their needs. This requires an organizational transition i.e.; the company must denationalize its operations and create a system of values shared by global managers.
• Merits of Globalization  An open economy spurs fast innovation with fresh ideas from abroad  Export jobs often pay more than other jobs
• Merits of Globalization  An open economy spurs fast innovation with fresh ideas from abroad  Export jobs often pay more than other jobs
• Demerits of Globalization  Exploitation of Underdeveloped Countries  Widening of Rich-poor Gap  Harmful Effects on Small Industries and Small Business
• Arjun Appadurai (anthropologist) = globalization can be divided into the five “scapes”.
•  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
•  Industrial globalization – development of worldwide production markets and broader access to a range of foreign products for consumers and companies involving particularly movement of material and goods between and within national boundaries.
•  Financial globalization – development of worldwide financial markets and better access to external financing for borrowers.
•  Economic globalization – establishment of a global common market, based on the freedom of exchange of goods and capital.
•  Political globalization – creation of international organizations to regulate the relationships among governments and to guarantee the rights arising from social and economic globalization.
•  Informational globalization – increase in information flows between geographically remote locations. (This can also be seen as a technological change related to the advent of fibre optic communications, satellites, and increased availability of telephone and Internet.)
• Cultural globalization - sharing of ideas, attitudes and values across national borders. This sharing generally leads to an interconnectedness and interaction between peoples of diverse cultures and ways of life. Mass media and communication technologies are the primary instruments for cultural globalization
• 1. Trade Agreements - bilateral, regional or multilateral economic arrangements designed to reduce or eliminate trade barriers.
• 2. Capital Flow - measurement of increase or decrease in a nation’s domestic or foreign assets.
• Migration Patterns - impact of labor market fluidity on production costs through the loss (emigration) or gain
• 4. Information Transfer - communication trend that helps mitigate the asymmetric functioning of markets and economies.
• Global economy - A system of trade and industry across the world that has emerged due to globalization. In other words, the way in which countries ‘economies have been developing to operate collectively as one system.
• Economic Globalization - It is 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.
• Global Stratification - It refers to the hierarchical arrangements of individuals and groups in societies around the worl
• a. First World – The Western Capitalist democracies of North and Europe, and certain other nations (Australia, New Zealand and Japan).
• a. First World – The Western Capitalist democracies of North and Europe, and certain other nations (Australia, New Zealand and Japan).
• b. Second World – Nations belonging to the Soviet Union.
• c. Third World – All the remaining nations, almost all of them from Central and South America, Africa and Asia.
•  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.