Globalization

UNIT I
 What is
globalization?
 “Globalization encompasses many trends including
expanded international trade, monetary coordination,
multinational corporations, telecommunications, technical
and specific cooperation, cultural exchanges of new types
and scales, migrations and refugee flows, and relations
between world’s rich and poor countries and between
human beings and the natural environment.”
—Goldstein (2009)
 “The inexorable integration of markets, nation-states and
technologies to a degree never witness before in a what
that is enabling individuals, corporations and nation-states
to reach around the world farther, faster, deeper and
cheaper than ever before.”
—Friedman (1999)
“Globalization is defined as the unprecedented new world
state, a special phase of the world history that is already
perceptible but that started ultimately in its mature form
in 1989 with the retreat of communism.”

—Kiss, Endre (2013)

 “Globalization is the emergence of a complex web of
interconnectedness that our lives are increasingly shaped
by events that occur, and decisions hat are made, at a
great distance from us. Distinction are commonly drawn
between economic globalization, cultural globalization,
and political globalization.”
—Heywood (2014)
“Globalization is a transplanetary process set of processes
involving increasing liquidity and growing multidirectional
flows of people, objects, places, and information as well as
the structures they encounter and create that are barriers
to or expedite those flows.”
—Ritzer and Dean (2015)
 Manfred B. Steger (born 1961) is a Professor at the
University of Hawaii at Manoa. He was also a Professor of
Global Studies and Director of the Globalism Research
Centre at RMIT University in Australia until 2013.
 What is globalization?
MANFRED STEGER:
Globalization is the expansion and intensification of social
relations and consciousness across world-time and across world-
space.

Expansion refers to both the creation of new social networks and

the multiplication of existing connections that cut across
traditional political, economic, cultural, and geographic boundaries.

Intensification refers to the expansion, stretching, and

acceleration of these networks.
 Globalization in Economics
• Multinational corporations operate on a global scale, with satellite offices and
branches in numerous locations.

• Outsourcing can add to the economic development of a struggling country, bringing

much needed jobs.

• Some automobiles use parts from other countries, as in a car being assembled in
the United States with the parts coming from Japan, Germany, or Korea.

• One shirt sold in the United States could have been made from Chinese cotton by
workers in Thailand. Then it could have been shipped on a French freighter that had
a Spanish crew.
 Globalization in the Blending of Cultures
• The Silk Road was a trade route between China and the Mediterranean Sea area
and it allowed the exchange of not only goods, but culture and knowledge.

• Christian missionaries from Europe added to the globalization of Christianity.

• Food is one factor of globalization.

• Satellite television allows shows from one country to be broadcasted in many

others, adding to cultural globalization. Ex. Spread of K-pop
 Globalization in Technology
• The Internet is a major contributor to globalization, not only technologically but in
other areas as well, like in cultural exchanges of the arts.

• Global news networks, like CNN, contribute to the spread of knowledge.

• Cellphones connect people all over the world like never before. Around 60% of all
people in the world use cellphones.

• Greater international travel and tourism

 ANTI-GLOBALIZATION
• Many anti-globalism activists see globalization as the promotion of a
Corporatist agenda, which is intent on constricting the freedoms of
individuals in the name of profit. They also claim that increasing autonomy
and strength of corporate entities increasingly shape the political policy of
nation-states.
 PRO-GLOBALIZATION
• Supporters of free trade point out that economic theories such as
comparative advantage suggests that free trade leads to a more efficient
allocation of resources, with all those involved in the trade benefitting. In
general, they claim that this leads to lower prices, more employment and
better allocation of resources.
Advantages of
Globalization
Advantages of Globalization
01 02
Peaceful Relations Employment
Most of the countries have Considered as one of the
resorted to trade relations most crucial advantages,
with each other in order to globalization has led to the
boost their economy, generation of numerous
leaving behind any bitter employment opportunities.
past experiences if any.
Advantages of Globalization
03 04
Education Product Quality
With numerous The product quality has
educational institutions been enhanced so as to
around the globe, one can retain the customers.
move out from the home
country for better
opportunities elsewhere.
Advantages of Globalization
06
05 Communication
Cheaper Price Circulation of information
Globalization has brought is no longer a tedious task
in fierce competition in the and can happen in seconds.
market. The Internet has
significantly affected the
global economy, thereby
providing direct access to
information and products.
Advantages of Globalization 08
07 GDP Increase
Gross Domestic Product,
Transportation commonly known as GDP,
Today with various modes is the money value of the
of transportation available, final goods and services
one can conveniently produced within the
deliver the products to a domestic territory of the
customer located at any country during an
part of the world. accounting year.
Advantages of Globalization
09 10
External Borrowing Travel and Tourism
With the help of Globalization has promoted
globalization, there is tourism to great heights.
opportunity for corporate, International trade among
national, and sub-national different countries also
borrowers to have better helps in increasing the
access to external finance, number of tourists that
with facilities visit different places
around the world.
 Disadvantages
of Globalization
Disadvantages of Globalization
01 Health Issues
• Globalization has given rise to more health risks and
presents new threats and challenges for epidemics.

• HIV/AIDS

• CORONA VIRUS PANDEMIC

Disadvantages of Globalization
02 Loss of Culture
• With large number of people moving into and out of a
country, the culture takes a backseat. People may
adapt to the culture of the resident country. They
tend to follow the foreign culture more, forgetting
their own roots. This can give rise to cultural
conflicts.
Disadvantages of Globalization
03 Uneven Wealth Distribution
• It is said that the rich are getting richer while
the poor are getting poorer. In the real sense,
globalization has not been able to reduce
poverty.
Disadvantages of Globalization
04 Environment Degradation
• The industrial revolution has changed the
outlook of the economy. Industries are using
natural resources by means of mining, drilling,
etc. which puts a burden on the environment.
Disadvantages of Globalization
05 Conflicts
• It has given rise to terrorism and other forms of
violence. Such acts not only cause loss of
human life but also huge economic losses.
Disadvantages of Globalization
06 Cut-throat Competition
• Opening the doors of international trade has
given birth to intense competition. This has
affected the local markets dramatically.
 Arjun Appadurai
• Appadurai is a cultural theorist and
anthropologist. Born in Mumbai, India in 1949.

• Professor at the University of Chicago

• He is the person who came up with the scapes

theory.

• Major Publications:

1. Modernity at Large: Cultural Dimensions of

Globalization (1996)

2. Disjuncture and Difference in the Global Cultural

Economy (1990)
 Arjun Appadurai
• According to him, different kinds of globalization occur on multiple and intersecting
dimensions of integration that he calls “scapes”.

1. ETHNOSCAPE – refers to the global movement of people

2. MEDIASCAPE – about the flow of culture

3. TECHNOSCAPE – refers to the circulation of mechanical goods and software

4. FINANCESCAPE – denotes the global circulation of money

5. IDEOSCAPE – the realm where political ideas move around.

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 ORIGINS
OF
GLOBALIZATION
Unit I – Lesson 2
 Origins of Globalization
• When one asks WHEN globalization started, many have different views
about it.

• However, we will stick to the perspective that the major points of its
beginnings started AFTER THE SECOND WORLD WAR.
Five Different Perspectives on the Origins of
Globalization

01
Hardwired
04
Events
02
Cycles
05
Broader, more recent changes
03
Epoch
 01
Hardwired
 Hardwired
• According to Nayan Chanda, it is because of our basic human needs to
make our lives better that globalization started.

• Our species originated from Africa but has crossed many continents
seeking greener pastures.

• Commerce, religion, politics, and warfare are the “urges” of people

toward a better life.

• Those actions led to the formation of the four aspects (trade,

missionary work, adventures, and conquest) of globalization and can
be traced throughout history.
 02
Cycles
 Cycles
• Some view globalization as cyclical process and thus finding its origin is
nearly impossible.

• It is also important to note how many cycles it has already gone

through.

• This idea seas global ages have already appeared.

• There is also a notion that eventually this current cycle will soon
disappear and reappear.
 03
Epoch
 Epoch
• Ritzer and Therborn believe that there are six great epochs of
globalization.

• Also known as “waves” with each having its own origin

• This argues that today’s globalization is not unique.

• It is different from cycle view as those great epochs do not return.

 Epoch
1. Globalization of religions like Islam and Christianity (4th – 7th century)
2. European Colonial Conquests (late 15th century)
3. Intra-European Wars (late 18th – 19th century)
4. Heyday of European Imperialism (mid 19th century – 1918)
5. Post-world war II period
6. Post cold war period
 04
Events
 Events
• Gibbon argued military conquests like the roman conquests before the
coming of Jesus Christ or the rampage of Genghis khan’s armies into
eastern Europe (13th century)

• Rosenthal argued voyages of discovery like Christopher Columbus’

discovery of America, Vasco De Gama rounding the cape of good hope,
and Ferdinand Magellan circumnavigating the world as the beginning
of globalization
 Events
• Recent years view globalization beginning due to technological
advancements in transportation and communication. Events include
the laying of the first transatlantic telephone cables (1956), first
television broadcast (1962), modern internet (1988), and terrorist
attacks on the twin towers in New York (2001). With this view, more
and more specific events will characterize not just the origins of
globalization but also its history.
 Broader, More Recent Changes
• Recent changes comprised this fifth view.
• These broad changes happened in the last half of the twentieth
century.

1. The emergence of the United States as the global power post world
war 2
2. Emergence of multinational corporations (MNCs)
3. Demise of the Soviet Union and the end of the cold war
 The emergence of the United States as
the global power post world war 2
• USA through its military and economic power after WWII was able to
surpass Germany and Japan.

• Both former axis and allied powers fell behind economically compared
to the new global power.

• USA also progressed in different aspects like diplomacy, media, film

(Hollywood) and many more.
Emergence of multinational corporations
(MNCs)
• MNCs had their roots in their countries of origin during the 18th and
19th centuries.

• The United States, Germany, and Great Britain all had great
corporation in their homelands that are still known today.

• An example is Ford and General motors which originated in the US in

the 20th century and later exported more automobiles and opened
factories in other centuries.
Demise of the Soviet Union and the end of
the cold war
• Finally, the last event is the fall of the Soviet Union in 1991
• This led to the opening of major parts of the world for the first time
since the early 20th century
• Many global processes – immigration, tourism, media, diplomacy, and
MNCs – spread throughout the globe, paving the way to the so-called
“FREE” world
• Even China whose government is still communist is on its way to
become a world power in terms of global capitalism
• China is also globalizing in other aspects like hosting the 2008 Olympics
in Beijing.