Chapter 1 Introduction to Globalization!
- 1. CHAPTER 1 INTRODUCTION TO GLOBALIZATION
- 2. A. Globalization Defined Introduction - 19th century globalization has been a buzzword that is fashionable in that particular time and a particular context. - but the term “globalization “ has been popularized only trough Theodore Levitt’s article “ The Globalization Markets” - Theodore Levitt was a former Professor of HarvardBusiness School.
- 3. b. Globalization– refers to the existence of free exchange of goods and services , culture and even people between and among countries Results of globalization 1. Countries have discarded taxes on nimported goods(tariffs) 2. Opened their doors to highly skulled workers and professionals 3. People became interested to travel 4. People learn new languages 5. People immerse themselves into new cultures
- 4. c. Specific examples of globalization : 1. Foreign establishment of food –Mc Do, chocolates,etc. Jollibee is also found abroad 2. Extreme example of globalization is the production of literally global products like T-shirts, cars, shoes and as lot more Researchers say that in recent years there had been growing pace of international movement of people, goods. Services and knowledge. These are the causes and consequence of globalization.
- 5. B. Competing Conceptions of Globalization Despite globalizations obvious benefits to a number of people around the world , there are competing conceptions of globalization. a. Manfred Steger said that in the appearance of globalization in the 1960’s , globalization has been described as a process, a condition, a system and a force and an age . Because of these competing –globalization had different meanings which could be confusing: 1. The United Nations Conference on Trade Development (UNCTAD) define globalization as “close integration of national economies through trade and financial flows as well as cross border migration of people
- 6. (1) Free movement of goods or products (2) Services (3) Capital or investments (4) Person 3. Free movement of goods services is facilitated by liberalization or the abolition of tax on imported goods Free movement of capital or investments is facilitated and implemented through deregulation ‘ Deregulation is the lifting of strict banking and financial regulations aimed at encouraging investors to invest. Liberalization and deregulation are economic processes that typically require special laws and/or policies-due to deliberation and confrontation of conflicting interests: such : (1) corporation and labor(2) migration and outsourcing of jobs (3) privatization of industries and (4) enmity between the First and the Third World)
- 7. 4. Modern globalization was jumpstarted on October 30, 1947 by 20 nations that signed the General Agreement on Tariffs and Trade (GATT)- which aims to regulate international trade. In 1995 GATT was replaced by the World Trade Organization (WTO) through the Marrakesh Agreement signed by 124 nations. The WTO (still referred to as GATT-WTO by many countries describes itself as the only global international organization dealing with rules of trade between nations. WTO came under intense criticisms after a financial crises hit the United States which affected Europe and other countries because of their strong economic ties through globalization.
- 8. The criticism resulted to anti globalization anger by Le Pen of France , Niegel Farage of social movements UK and social movements suxch As “Indignados” of Spain and “Occupy Movement” which started in the U.S. itself with some groups and academic pronouncing or asking abort “end of globalization” which is imagining how capitalism which is the prevailing system in countries in globalization will end. It was worse when UK citizens voted to exit from the EU (BREXIT) in 2016 because according to France EU is the most pro –globalization entities.
- 9. b Thomas Freidman’s best –selling book “ The Lexus and the Olive Tree” gives a balance and often cited definition of globalization. Globalization is both an era and a system that is not static but dynamic ongoing process. It involves integration of markets, nation-states, and technologies to a degree never witnessed before. British Broadcasting Corporation (BBC) emphasizes that globalization is the process by which the world is becoming increasingly interconnected as a result of massive increase in trade and culture exchange.
- 10. Benedict Anderson – explained that the early globalization during the last two decades of the 19th century was made possible by developments such as the the invention of the telegraph , the inauguration of the Universal Postal Union which accelerated to otf the globalization literature is confused between globalization ands internationalization her inventions.
- 11. Leslie Sklair – revealed that much of the globalization literature is confused between internalization and globalization and some writers use them interchangeably. Globalization is broader and more complicated than internationalization
- 12. Internalization –refers to processes and systems that pertain to relationships between states while globalization encompasses processes and relations and systems related to “global social relations” or interactions between international and/or transnational entities. For example: 1. cultural ties and economic trade between Association of Asian of Nations (ASEAN) and EU is globalization 2. Timor –Leste’s application to ASEAN is internalization or UK’s exit from EU (BREXIT) is a failure of internalization.
- 13. 3. Programs of the United Nations Educational Scientific Cultural Organization (UNESCO) where both ASEAN and EU are members is a big aspect of globalization. C Philosophies and Ideologies of/on/against Globalization a. Six core claims among pro-globalization : 1. Global is about the liberalization and integration of markets. 2. Globalization is inevitable and irreversible 3. Nobody is in charge of globalization 4. Globalization benefits everyone 5. Globalization furthers the spread of democracy in the world 6. Globalization requires war on terror
- 14. Globalization as a system is led and promoted by ideologues who subscribe to capitalism and neoliberalism. Capitalism is the dominant economic framework and system in many parts of the world today-premised in the “profit motive” This is why people buy stocks of profitable companies or why governments of Third World countries allow mining operations to operate even in places where the ecosystem is vulnerable. Neoliberalism adheres on the principle that for capitsalism to thrive ,markets should be free from government interventions .
- 15. b. Two main camps of critics of globalization; the anti-globalization side and the alter-globalization current. Anti-globalization –want to end to what it considers as a highly imbalanced system of globalization that favors the First World over the Third World , corporations over citizens and communities, and profit – seeking over environmental sustainability. Alter-globalization – favors altering or changing the current system of globalization to make it more humane, more pro-environmental , more grassroots-driven rather than staying as a top-down imposition The challenges of globalization includes :national populism, new localisms, religious fundamentalisms with strong inclination on feminism and others associated with "global justices” movements.
- 16. Most critiques of globalization and neoliberalism is because of the endless ideas between these ideologues and globalization Karl Marx’s classic book “ Das Kapital “ emphasizes that the motives (end and aim) of the capitalist production is to extract the greatest possible amount of surplus –value , and consequently to exploit labor-power to the greatest possible extent. Example: maximizing profits and expense of workersand expense of the environment
- 17. Race-to-the-bottom-system is where the “labor standards in one country are positively correlated with those elsewhere for example cut in labor standards in other countries reduces labor standards in any country in question.
- 18. D Positive and Negative Aspects of Globalization: a. Positive aspects of globalization : 1. Multiculturalism and multilingualism – free exchange of goods and services need swift communication ,therefore there is a need to learn as many language as possible 2. Free trade – reduced costs in selling products almost worldwide provided hue profits for a number of big transnational corporations resulting to cheaper consumer goods .
- 19. 3. Culture and Cultural Exchanges – the rise of multilingualism leads to the study of diverse cultures and eventually more educational exchanges 4. Migration – Third World countries can easily find jobs in more developed countries 5. Global cooperation – globalization rules and mechanisms are created and governed by global entities like the WTO where almost all countries are represented.
- 20. Among the prominent promoters of globalization are thinkers and politicians. Thinkers Politicians Thomas Freidman Jose Man Barros(Portugal) Martin Wolf Lee Kuan Yew (Korea) Mustaf Akyol Hillary Clinton (USA) Theodore Levitt Emmanuel Macron (France) Fareed Zakaria
- 21. b. Negative aspects according to the anti and alter – globalization: 1. Linguistic hegemony – of English ( as U.S. and the U.K. influence in EU utilized English), therefore globalization compels other countries to use it as well, with some colonies such as the Philippines and Malawi (African) even prioritizing it over their own national language. 2. Cultural homogenization – big corporations such as food chains like Mc Donalds , consumer goods like Nestle and Hollywood companies dominate markets in many countries.
- 22. 3. Third World countries are dependent on First World countries. 4. Global income and wealth inequality –big corporations benefit more in the competition. 5. Tax injustice- under globalization countries compete for foreign investments so countries are forced to lower corporate taxes , therefore reducing expected government income. 6. Racism and antic- migrant sentiment-corporations in many First World countries hire migrant workers to save on wages so First World working class complain being left behind fueling the rise of racism and anti- migrant sentiment
- 23. Prominent anti –globalization and alter-globalization include: Filipinos like Alejandro Lichauco and Jose Ma. Sison. Some others include: U.S. President Trump,Bernie Saunders, Pope Francis, UK Labor Party leader Jeremy Corbyn. Former Venezuelan Prsident Hugo and French politician Marine Le Pen.
- 24. c. Many critics of globalization assert that : 1. Developed countries’ investments in developing countries earn profit. 2. Developed countries control multi-lateral financial institutions such as IMF, World Bank and big banks. 3. Technology transfer on massive scale seldom happens( developed countries have monopoly on innovation . 4. The bulk price of developing countries ‘main exports (raw materials and semi-manufactured goods) is lower than the bulk price of their typical imports from developed countries. countries.
- 25. 5. The migration of workers and professionals depletes human resources. 6. The education system of developing counties is aligned with the needs of developed countries. According to Zisek “the other side of globalization is the rise of new invisible walls” because in Slovenia a relatively developed country but there are slums t , which means that there is a gap between the rich and the poor .