Chapter 1

Introduction
to
Globalization
Words to go by
 Social movement- people and organizations
advocating for positive change through a variety of
means and approaches.
 Free trade- exchange of goods or products between
nations without tariff or taxes.
 Deregulation- loosening or lifting of government
regulations, usually to favor private corporations’
flexibility of operations and profitability.
 Liberalization- process or policy of removal or
reduction of restrictions or barriers on the free trade
between nations
Globalization
 refers to the existence of free exchange of goods, services,
culture, and even people, between and among countries.

Because of globalization:
 Countries discarded taxes on imported goods (tariffs) and
opened their doors to highly skilled workers and
professionals.
 People became more interested to travel, learn new
languages, and immerse themselves into new cultures and
lifestyle.
 Modern innovations bring countries closer together through
decreased travel time, efficient communication means.
COMPETING CONCEPTIONS OF GLOBALIZATION
1960s – the term globalization has been used in both popular and
academic literature.

Manfred Steger
 Globalization is a contested concept
used to describe a process, a condition,
a system, a force and an age.

United Nations Conference on

Trade and Development (UNCTAD)
 Globalization is the closer integration
of national economies through trade and
financial flows as well as cross- border migration of people.

European Union (EU)

 “four freedoms”
1. free movement of goods or products- abolition of taxes
2. free movement of services
3. free movement of capital or investment- deregulating or
lifting of strict banking
4. free movement of persons- abolishing visa
Four Freedoms

1. Free movement of goods or products – is

facilitated by liberalization or the abolition of
tax on imported goods (tariffs).
2. Free movement of services
3. Free movement of capital or investment – is
implemented through deregulation or the
lifting strict banking and financial regulations.
4. Free movement of persons – is achieved
through the loosening or abolition of visa
restrictions and barriers to migration.
 Liberalization and
Deregulation
- are economic processes that typically
require special laws and/or policies.
Such policies and laws are products of
deliberation and even confrontation
between conflicting interests.
October 30, 1947 - modern globalization
jumpstarted by 20 nations that signed the
General Agreement on Tariffs and Trade
(GATT).

General Agreement on Tariffs and Trade

(GATT) - primarily aims to regulate
international trade.

World Trade Organizations (WTO)- global

international organization that deals with
trade between nations.
- Help producers, exporters, importers
conduct their business.
Thomas Friedman’s
“The Lexus and the Olive Tree”

“Globalization is not static,

but a dynamic ongoing process”.

Globalization involves:
- inexorable integration of markets
• - nation-states
• - technologies to a degree
never witnessed before
British Broadcasting Corporation (BBC)
 Globalization is the process by which the world is becoming increasingly
interconnected as a result of massively increased trade and cultural
exchange.

Benedict Anderson
He explained the “early globalization in
the last two decades of the 19th century
involves:

 inventions of the telegraphs

 inauguration of Universal Postal

Union

 wide use of steamship

 thickening latticework of railways

 Internationalization and Globalization Distinctions
Leslie Sklair

“a clear distinction must drawn between the

inter-national and the global because some
writers appear to use the two terms interchangeably”

Definition Example
Internationalization - hyphen in inter-national is to The cultural ties and economic
distinguish (inadequate) trade between members of ASEAN
conceptions of the ‘global’ or the members of EU are
- refers to processes and system international in nature.
that pertain to relationships
between nation-states
Globalization - is broader and more complicated Interactions between entities
than internationalization. such as the ASEAN and EU are
- encompasses processes and global.
systems related to “global social
relations”
PHILOSOPIES AND IDEOLOGIES OF/ON AGAINST GLOBALIZATION
Globalization’s backers, supporters, and ideologues Six Core Claims:

1. Globalization is about the liberalization and global integration of markets.

2. Globalization is inevitable and irreversible.
3. Nobody is in charge of globalization.
4. Globalization benefits everyone (… in the long run).
5. Globalization furthers the spread of democracy in the world.
6. Globalization requires war on terror.

Capitalism
• dominant economic framework and system in many parts of the world
today.
• primarily premised on the “profit motive”

Neoliberalism
• adherents further build on the profit motive
• markets should be free from government interventions
• claiming that “free markets and trade will set free the creative
potential and the entrepreneurial spirit.
 Pro-globalization – defends its adherence to neoliberal capitalism

CRITICS OF GLOBALIZATION
• Anti-globalization side- wants an end to what it considers as a highly
imbalanced system of globalization that favors the First World over Third
World, corporations over citizens and communities, and profit seeking
over environmental sustainability.

• Alter-globalization current- latter favors the current system of

globalization to make it more humane, more pro-environment, and more
grassroots-driven rather than staying as a top down imposition.
POSITIVE AND NEGATIVE ASPECTS OF GLOBALIZATION
POSITIVE ASPECTS NEGATIVE ASPECTS
 Multiculturalism and  Linguistic hegemony of
multilingualism English
 Free trade  Cultural homogenization
 Cultural and education  Third World dependence on
exchanges the First World
 Migration  Global income and wealth
inequality
 Global cooperation
 Tax injustice
 Racism and anti-migrant
sentiment
Multiculturalism and Multilingualism
Free exchange of goods and services need swift
communication, hence the need to learn as many
languages as possible.
Free trade
Reduces cost on selling products almost worldwide
provided huge profits for a number of big transnational
corporations, and resulted in cheaper prices of some
consumer goods such as cellphones and computers.
Cultural and education exchanges
The rise of multilingualism inevitably leads to the study of
diverse cultures and eventually, more educational exchanges
such as EU’s Erasmus Mundus Program between universities in
all continents.
Migration
Citizens can freely visit and work in any country and
Third World migrants can relatively easily find jobs in
and eventually migrate to more developed countries.
Global cooperation
Globalization’s rules and mechanisms are created and
governed by global entities such as WTO- where almost
countries are represented, encourage global cooperation
on many issues ranging from climate change and poverty
eradication.
Linguistic hegemony of English
Globalization compels other countries to use English
language, even prioritizing it over their own national
languages.
Cultural homogenization
Big corporations such as fast food chains dominate markets
in many countries because of their enormous financial
power and presence in almost every country.
Third World dependence on the First World
Despite globalization’s obvious contribution to the
successful leap of some countries from Third to First World
status, more Third World countries still complain that the
current setup favors developed countries more.
Global income and wealth inequality
As only the biggest corporations seem to benefit from stiff
competition and unbridled free trade.
Tax injustice
Under globalization, countries compete for foreign
investments and are forced to lower corporate taxes.
Racism and anti-migrant sentiment
As corporations in many First World countries hire more
migrants to save on wages, First World working-class
citizens complain about being left behind in their own
countries, hence partly fueling the rise of racism and anti-
migrant sentiment.
Globalization is more favorable to developed countries
because:

1. Developed countries’ investments in developing countries earn profits

which the former typically repatriate rather than in the latter.

2. Developed countries control multilateral financial institutions that are

capable of bankrolling.

3. Technology transfer on a massive scale seldom happens.

4. The bulk prices of the developing countries’ main exports (raw

materials and semi-manufactured goods) is lower than the bulk price
of their typical imports from developed countries
(technology/machinery and high-value products).

5. The migration of workers and professionals from developing countries

to the developed countries depletes the former’s human resources.

6. The education system of developing countries is aligned with the

needs of developed/capital-rich countries.
First World Countries