Transcript Globalization Concepts, Process and Development

Dr Suman Pathak
[email protected]
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)
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• Roland Robertson, professor of sociology at University of
Aberdeen, an early writer in the field, defined globalization
in 1992 as:
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...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:
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...all those processes by which the peoples of the world
are incorporated into a single world society.
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• In The Consequences of Modernity, Anthony Giddens uses the
following definition:
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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 ongoing 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
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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
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• The Uruguay Round (1986 to 1994)[19] 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.
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