Globalization: Concepts &

Perspectives

Presenter:

M Badrul Arefin
Director General
(Secretary to the Govt.)
NAPD
M/o Planning 1
Presentation outline
• Introduction
• Definition of Globalization
• Background of Globalization
• Dimension of Globalization
• Causes of Globalization
• The effect of Globalization
• Blessings of Globalization
• Curses of Globalization
• Globalization and Bangladesh
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• Conclusion
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Introduction
Globalization is a process of
interaction and integration among
the people, companies, and
governments of different nations.

This process driven by

international trade and
investment and aided
by information technology.

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Definition of Globalization
• Globalization is the process by which different parts of
the world interact Economically, Politically and
Culturally.
• IMF defines globalization as “the growing economic
interdependence of countries worldwide through
increasing volume and variety of cross border
transactions in goods and services and of international
capital flows and also through the more rapid and
widespread diffusion of technology”.
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Historical Background
• Globalization is not a new concept.
• The historical origins of globalization are the
subject of ongoing debate.
• An early form of globalized economics and
culture, known as 
1. Archaic globalization
2. The Islamic Golden Age was also an important early
stage of globalization,
3. Proto-globalization or early modern Globalization
4.Modern globalization
5. Aftermath of World War I: collapse of globalization
6. Post-World War II: globalization resurgent

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• In the years since the Second World
War many governments have
adopted free-market economic
systems,
• vastly increasing their own
productive potential and creating
new opportunities for international
trade and investment.
• Governments also have negotiated
dramatic reductions in barriers to
commerce
• Governments have established
international agreements to
promote trade in goods, services, 7
and investment.
 Taking advantage of new
opportunities in foreign markets,
corporations have built foreign
factories and established
production and marketing
arrangements with foreign
partners.
 A defining feature of
globalization, therefore,
is an international industrial
and financial business structure.

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Thomas L. Friedman divides the history of
globalization into three periods:

Globalization 1(1492 -1800) –Globalization of

countries

Globalization 2 (1800 -2000) – Globalization of

companies

Globalization 3 (2000 – present) –

Globalization of individuals
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 Dimension of Globalisation

1. Economic
Countries that trade with many others and have few trade
barriers are economically globalised.
2. Social
A measure of how easily information and ideas pass between
people in their own country and between different countries
(includes access to internet and social media networks).
3.Political
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The amount of political co-operation there is between countries.
 The International Monetary Fund (IMF)
identified four basic aspects of globalization:

trade and transactions

capital and investment movements

migration and movement of people

dissemination of knowledge 11
 Causes of Globalisation:
1. Improved Communications
• The development of communication
technologies such as internet, email and mobile
phones have been vital to the growth of
globalisation because they help MNCs to
operate throughout the world.
• The development of satellite TV channels such
as Sky and CNN have also provided worldwide
marketing avenues for the concept and products
of globalisation.

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2. Improved Transport

• The development of refrigerated and container

transport, bulk shipping and improved air transport has
allowed the easy mass movement of goods throughout
the world. This assists globalisation.

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3. Free Trade Agreements

• MNCs and rich capitalist countries have always promoted

global free trade as a way of increasing their own wealth
and influence.

• International organisations such as the World Trade

Organisation and the IMF also promote free trade.
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4. Global Banking

• Modern communication technologies allow vast

amounts of capital to flow freely and instantly
throughout the world.

• The equivalent of up to
$US1.3 trillion is traded
each day through
international stock exchanges in cities such as New York,
London and Tokyo.
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 5. The Growth of MNCs
• The rapid growth of big MNCs such as Microsoft, McDonalds
and Nike is a cause as well as a consequence of globalisation.
• The investment of MNCs in farms, mines and factories across
the world is a major part of globalisation.
• Globalisation allows MNCs to produce goods and services and
to sell products on a massive scale throughout the world.

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The Effects of Globalisation:

1. Changed Food Supply

• Food supply is no longer tied to the seasons. We can
buy food anywhere in the world at any time of the
year.

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 2. Division of Labour
• Because MNCs search for the cheapest locations to
manufacture and assemble components,

• production processes may be moved from developed to

developing countries where costs are lower.
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3. Less Job Security

• In the global economy jobs are becoming more

temporary and insecure.
• A survey of American workers showed that people now
hold 7 to 10 jobs over their working life.

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4. Damage to the Environment
• More trade means more
transport which uses more
fossil fuels and causes
pollution.

• Climate change is a serious

threat to our future.

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5. Cultural Impact

• As the world becomes more unified, diverse cultures

are being ignored.
• MNCs can create a monoculture as they remove local
competition and thereby force local firms to close.

Replacing

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 6. Increase in anti-Globalisation Protests
• There is a growing awareness of the negative impacts of
globalisation. People have begun to realise that
globalisation can be challenged by communities
supporting each other in business and society and
through public protest and political lobbying.

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 Blessings of Globalization
• Promotes global economic growth, creates job
• Makes companies more competitive
• Reduces prices for consumers.
• Ensure development of the poor & developing countries
through FDI.
• Develop democracy & HR issues.
• Globalization enhances mutual trust & respect & thus it
helps economic development
• Globalization provides worldwide market for companies
& consumers to access products from different countries. 23
 Blessings of Globalization
• It is helping people to converge on global issues.
• Opportunity to influx of more information among countries.
• It would help in ecological balance.
• Enhance fellow feelings of the people around the globe &
reduces apathy amongst nations.
• It bestows mass communication, speedy travel and speedy
spread of information

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 Curses of Globalization

1.UNDP reports–20% rich people of the globe consume 86% of

world resources i.e. poverty alleviation is forgotten.

2.Globn helps the dissemination of communicable diseases

( HIV / AIDS )
3,The loss of culture & tradition.
4. Exploitation of labour is being enhanced.
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Curses of Globalization (Cont.)

5. Human trafficking has been being increased.

6. It provides jobs to a population in one country but
takes away those jobs from another country.
7. It is an attack on the local tiny & small industries.
8. Monopolizes countries equipped with know-how &
power.

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Globalization & Bangladesh
1. Globalization has swept over many South & SE Asian nations
& reached the shores of Bangladesh. She still has to exploit
full potentials of the powerful undercurrent of Globn tide.
2. Our two largest neighbouring nations, China & India derived
29% & 25% respectively of their national incomes from export-
oriented sectors in 2011, while the share of this sector is about
23% for us & BD has made steady progress from Globn since
1980.
3. Bangladesh is benefiting from Globn mostly from 3 driving
forces : RMG, Labour Markets &Tele-communication.
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Globalization Potentials of Bangladesh
I) ICT, particularly software development & production.
II) Taking advantage from outsourcing particularly from the
hospitality, medical, financial, and call centres;
III) Strong potential that can be reaped by tapping into FDI
(energy, power, and telecom);
IV) Moving up in to higher value-adding activities in RMG
V) Scrap-metal recovery from ship-breaking and also further
exploit the country's recent inroads in ship-building;
VI) Agribusiness, especially processing fruits, vegetables,
poultry, cult-flowers & other value adding activities. 28
VII ) Frozen foods, vegetables & sea foods.
Our weakness to exploit Globalization
• Political unrest,
• military intervention,
• incompetent public sector,
• procedural complicacy,
• shortage of land,
• natural disasters and
• road communication.

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 Conclusion
• Globalization, a multifaceted phenomenon has a history
from the first interaction between the people;

• It continues till now and will continue in the future. As

a process of integration,

• Globalization affects every aspect of human life ranging

from economic, cultural, and political to social.

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Thank You
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