Transcript Globalization

Globalization
BA 527 International Marketing
Melike Demirbag Kaplan, PhD
Globalization
Globalization at a glance
Definitions
 Process in which the constraints of geography recede
and in which people become aware that they are
receding…
 Widening, deepening and speeding up of worldwide
interconnectedness in all aspects of life….
 Process by which networks of interdependence
become large and continuous, or “thick”….
 The movement towards the expansion of economic
and social ties between countries through the spread
of corporate institutions and the capitalist philosophy…
The world before globalization
 Distance mattered—
space often measured
in time
 Territorial boundaries
more or less kept things
in and out
 Society and culture had
spatial referents
 Everything had its
“place” (literally)
Deterritorialization and supraterritoriality
 Distance becomes
almost irrelevant (the
end of distance)
 Boundaries are
increasingly permeable
 Groups and cultures
increasingly don’t have
a territorial basis
 A new kind of nonphysical “place” is
emerging
Globalization is
 a quantitative and qualitative change
 not only economic
 4 facets:
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Space - extensiveness of global networks
Regularity - intensity of global interactions
Speed - velocity of global flows
Depth – impact of global interconnections on
quality of life
Historical Forms
 21st century “thick globalization”
 high extensity, intensity, velocity and impact
 Western imperial expansion (18th century)
 high extensity, impact; low intensity, velocity
 Silk and luxury trade (200 BC-200 AD)
 high extensity; low intensity, velocity, impact
Dimensions of Globalization
 Economic Dimensions
 Socio-cultural Dimensions
 Political Dimensions
Economic dimension
 One of the most frequently used in
discussions of development, trade, and
international politics.
 A process by which the economies of the
world become increasingly integrated, leading
to global economy and, increasingly, global
economic policymaking, for example, through
international agencies such as WTO, IMF, and
WB.
Integration of Economies
 The increasing reliance of economies on each
other
 The opportunities to be able to buy and sell in
any country in the world
 The opportunities for labor and capital to
locate anywhere in the world
 The growth of global markets in finance
Made possible by
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
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Technology
Communication networks
Internet access
Growth of economic cooperation – trading
blocs (EU, NAFTA, etc.)
 Collapse of communism
 Movement to free trade
World Trade
World GDP
World GDP
World GDP- by region
Global trade
 Benefits of Trade:
 Increased choice
 Greater potential for
growth
 Increase
international
economies of scale
 Greater employment
opportunities
 Disadvantages of trade:
 Increase in gap between
the rich and the poor
 Dominance of global
trade by the rich,
northern hemisphere
countries
 Lack of opportunities for
the poor to be able to
have access to markets
 Exploitation of workers
and growers
Socio-cultural dimensions
 Social globalization means processes whereby
many social relations become relatively delinked
from territorial geography, so that human lives
are increasingly played out in the world as a
single place.
 Cultural globalization refers to an emerging
“global culture”, in which people more often
consume similar goods and services across
countries and use of common language.
 Examples: Coco-Cola, Mc Donald and use of
English.
Political dimension
 Refers to the increasing number and power of
human associations which influence or govern
the world as a whole.
 Emergence of a transnational elite and the
phasing out of the nation-state
 In 1909 there were 37 inter-governmental
organizations (IGOs) and 176 international
non-governmental organizations (INGOs
 In 1996 there were 260 IGOs and 5,472 INGOs
Advantages and Disadvantages of
Globalization
Realm of
Advantages
Globalization
Disadvantages
Political
Weakens power of
authoritarian
governments
Unwanted external
influences difficult to
control
Economic
Jobs, capital, more
choices
Exploitative; benefits
uneven
Cultural
Offers exposure to
other cultures
Risks cultural
imperialism
World GDP-distribution inequality
UN Millenium Project
“ More than one billion people in the world live on less than one dollar a
day. In total, 2.7 billion struggle to survive on less than two dollars per day.
Poverty in the developing world, however, goes far beyond income
poverty. It means having to walk more than one mile everyday simply to
collect water and firewood; it means suffering diseases that were
eradicated from rich countries decades ago. Every year eleven million
children die-most under the age of five and more than six million from
completely preventable causes like malaria, diarrhea and pneumonia.
In some deeply impoverished nations less than half of the children are in
primary school and under 20 percent go to secondary school. Around the
world, a total of 114 million children do not get even a basic education
and 584 million women are illiterate.”
http://www.unmillenniumproject.org/resources/fastfacts_e.htm
Anti-globalization movement
 Is critical of the globalization of corporate
capitalism.
 Opposition to international financial institutions
and transnational corporations
 Global opposition to neoliberalism
 Anti-war movement
 Anti-consumption movement