Globalization “an immense enlargement of world communication and a world market” (Fredric Jameson) “stretching” of social relations across the globe, communications and media technologies "the compression of the world and the intensification of consciousness of the world as a whole” (Roland Robertson) world becomes “smaller” world is experienced as “one place”
Definitions Globalization (or globalisation) is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. Advances in transportation and telecommunications infrastructure, including the rise of the telegraph and its posterity the Internet, are major factors in globalization, generating further interdependence of economic and cultural activities. Source: (Wikipedia)
Roland Robertson, professor of sociology at University of Aberdeen, an early writer in the field, defined globalization in 1992 as:...the compression of the world and the intensification of the consciousness of the world as a whole. Sociologists Martin Albrow and Elizabeth King define globalization as:...all those processes by which the peoples of the world are incorporated into a single world society.
In The Consequences of Modernity, Anthony Giddens uses the following definition: Globalization can thus be defined 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.
Accordindg to ECWA, UN – (Economic and Social Commission for Western Asia ) Globalization is a widely Used term that can be defiend in many ways In Economic Way It is the reduction and removal of barriers between national borders in order to facilitate the flow of Goods, Capital, Services and Labour
Phenomena in Globalization 1) Whole world interconnected - interdependence of all parts of world 2) Intensification of world-wide phenomena 3) Trans-national relations - erosion of national boundaries 4) “Domino effects” (Chain reaction of Change)- events have long-distance ramifications 5) Alteration of space- distances shortened- technological changes 6) Alteration of time - things happen quicker 7) Sense of “globality” / Global consciousness - experience all places as interdependent - “the whole planet”- “the whole of humankind”
Concepts & Process Globalization (or globalisation) is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. Advances in transportation and telecommunications infrastructure, including the rise of the telegraph and the Internet, are major factors in globalization, generating further interdependence of economic and cultural activities.[
Concepts the International Monetary Fund (IMF) identified four basic aspects of globalization: trade and transactions, capital and investment movements, migration and movement of people, and the dissemination of knowledge Further, environmental challenges such as climate change, cross-boundary water and air pollution, and over-fishing of the ocean are linked with globalization. Globalizing processes affect and are affected by business and work organization, economics, socio-cultural resources, and the natural environment.
Development of Globalization The historical origins of globalization are the subject of on- going debate. Though several scholars situate the origins of globalization in the modern era, others regard it as a phenomenon with a long history. Some authors have argued that stretching the beginning of globalization far back in time renders the concept wholly inoperative and useless for political analysis
Archaic globalization Perhaps the most extreme proponent of a deep historical origin for globalization was Andre Gunder Frank, an economist associated with dependency theory. Frank argued that a form of globalization has been in existence since the rise of trade links between Sumer and the Indus Valley Civilization in the third millennium B.C.
Thomas L. Friedman divides the history of globalization into three periods: Globalization 1 (1492–1800), involved the globalization of countries Globalization 2 (1800–2000) and 2 involved the globalization of companies and Globalization Globalization 3 (2000–present). involves the globalization of individuals.
Proto-globalization The next phase is known as proto-globalization. It was characterized by the rise of maritime European empires, in the 16th and 17th centuries, first the Portuguese and Spanish Empires, and later the Dutch and British Empires. In the 17th century, globalization became also a private business phenomenon when chartered companies like British East India Company (founded in 1600), often described as the first multinational corporation, as well as the Dutch East India Company (founded in 1602) were established.
Modern globalization In 19th century Great Britain become the first global economic superpower, because of superior manufacturing technology and improved global communications Between the globalization in the 19th and in the 20th there are significant differences. There are two main points on which the differences can be seen. Global trade Capital, investment and the economy.
Global Trade The global trade in the 20th shows a higher share of trade in merchant production, a growth of the trade in services and the rise of production and trade by multinational firms. The production of merchant goods in the 20th century largely decreased from the levels seen in the 19th. However, the amount of merchant goods that were produced for the merchandise trade grew. The last point that distinguishes the global trade in the 19th century compared to the global trade in the 20th century, is the extent of multinational cooperation. In the 20th century you can see a "quantum leap" in multinational cooperation compared to the 19th century. Before the 20th century began, there were just Portfolio investment, but no trade-related or production-relation Direct investment.
Commercial integration has improved since last century, barriers that inhibit trade are lower and transport costs have decreased. Multinational trade contracts and agreements have been signed, like the General Agreement on Tariffs and Trade (GATT), North American Free Trade Agreement (NAFTA), the European Union (EU) has been hugely involved in eliminating tariffs between member states, and the World Trade Organization.
Process of Globalization Promotion of free trade: Elimination of tariffs; creation of free trade zones with small or no tariffs Reduced transportation costs, especially resulting from development of containerization for ocean shipping. Reduction or elimination of capital controls Reduction, elimination, or harmonization of subsidies for local businesses Creation of subsidies for global corporations Harmonization of intellectual property laws across the majority of states, with more restrictions Supranational recognition of intellectual property restrictions (e.g. patents granted by China would be recognized in the United States)
Cultural globalization Communication technology and the worldwide marketing of Western cultural industries, was understood at first as a process of homogenization, Global domination of American culture at the expense of traditional diversity. However, a contrasting trend soon became evident in the emergence of movements protesting against globalization and giving new momentum to the defense of local uniqueness, individuality, and identity
The Uruguay Round (1986 to 1994) led to a treaty to create the WTO to mediate trade disputes and set up a uniform platform of trading. Other bilateral and multilateral trade agreements, including sections of Europe's Maastricht Treaty and the North American Free Trade Agreement (NAFTA) have also been signed in pursuit of the goal of reducing tariffs and barriers to trade.
Advantages of Globalization Resources of different countries are used for producing goods and services they are able to do most efficiently. Consumers to get much wider variety of products to choose from. Consumers get the product they want at more competitive prices. Companies are able to procure input goods and services required at most competitive prices. Companies get access to much wider markets It promotes understanding and goodwill among different countries.
Businesses and investors get much wider opportunities for investment. Adverse impact of fluctuations in agricultural productions in one area can be reduced by pooling of production of different areas. Globalization helps in brining whole wolrd as one village. Every consumer have free and frequent reach to the products of foreign countries. Optimum use of natural resources possible. Helpful in cost reduction by eliminating cross border duties and fees Helpful in employment generation and income generation
Disadvantages of Globalization Developed countries can stifle development of undeveloped and under-developed countries. Economic depression in one country can trigger adverse reaction across the globe. It can increase spread of communicable diseases. Companies face much greater competition. This can put smaller companies, at a disadvantage as they do not have resources to compete at global scale. Globalization can ruin the environment. Moving things from one area to another wastes oil, etc. Globalization can ruin local economies. There is a movement that wants to buy local - especially organic foods.
Globalization can lead to hyper-specialization, which can be good, but also negative. There is something great about being a generalist. Also what if something goes wrong. To know things generally give an incredible perspective that specialists do not have. Globalization can be driven by people with "know how" and power and they can systematically fleece the world. Globalization is direct attack on local tiny and small industry. Global companies with hi-fi infrastructure almost ruins the local traditional small and medium industries Increases cut throat competition. Globalization increases monopoly by countries equipped with know-how and power.