CHAPTER 1
Leaming Outcomes:
At the end ofthe lesson, the students should be able:
+ ernie the competing conceptions of globalization
+ identifying the underlying pllosophies ofthe varying defitons of
‘obalzaon ond,
‘ng on 2 working detintion forthe course
a %
Definition of Globalization
‘There are many varying detinitions ofthe term globalization These are
ss flow
1. Globalization sth nceasing interaction of people ates, o counties
through the grown of the intemasona! Sow of money, Meas, and
future Thus globalization pray focused on economic proces of
‘Riera hat has social and cla aspects.
2, nietheinterconnactedness of people and business acrossthe worl
‘renully lead to globe cular pot, and economic integration
5. eisthe ability to mave and communicate easly with others all ve the
‘wot in order tcanduc busines inematonally
4. eis the fre movement of goods services, and people across the would
lina seamless and integrated mance
5. tis the liberalization of counties of thei impact protcas and
‘relome frig investment into sectors that are She mainstays of
Sonony.
6 I efers to countries ating tke magnets atracing global capital by
‘opening up ther economies o multtinal corporations(Globalization as Defined by Other Authors
1. Martin Albrow and Elizabeth King defined glbalizton as thse
procisses by which the people OF the World are incorporated into 3
ingle word socety
2, Anthony Giddens The Consequenceof Modernity) Detins globalization
Ste Intensifaton of world social relations hich Unk tant
Toca in sucha way that local happenings are shaped by evens
‘occuring many miles away and vice versa.
Roland Robertson, Professor of Sociology atthe University of Aberdeen
‘esened lotlization in 192 asthe compresion othe wordand th
{nenalcaton ofthe coneiousess of the Word a whole
Historia Foundation ofthe term “Globalization”
Though many scholars place the origins of globalization in modern
tis, thers race ils hstory long before the European Age of Discovery
tnd voyages tothe New Weld sme even tthe td mleanum BC
{ngeacale globalization began inthe 1820 In the Inte 1h cantar and
tly 2th cary, the connectivity ofthe worlds economies and cltres
row very quick
tn 1897, Chale Taze Ruse (ofthe Watch Tower Bible and Tract
Sexi) cea elatedterm, corporate pans Thisterm refers tothe lage
ronal trusts ad ther ange enterprises Of te ine
11830, the word “globalize” ae » noun appeared in a publstion|
enti’ Towards New Education where t denoted holistic view f human
experience necaton
Inthe ate 197, the word “loblzaton” was coined In 2013, thietorm
was ed o mean “boederles society” refering to intematonal migration
ln the catty pat of 1981, the term “plobaization” had teen use in it
conotie sense. However, i the ate Hall ofthe 198), Theodore Levit
Popular the term "pnbaliaton” by bringing it int the maiasteam
Basins uence
Late in 2000, The International Monatary Fund (IMP) identified four
(baie asp of globalization: (1) trade and transactions (2) capital and
Investment movements (3) migration of knowledge (issn
Its only in 2017 when the word “ablation” was ofteny used in
teaching in discussion in matings and conferences inlecture and so.
‘Tistime218, the phenomenon f globalization ienow on fll swingin
atl academic dacpines
Indicators of Globalization
‘The jet engine, the internet, ebanking, books, ebike the LRT, MRT
andthe inventions acenceand technology are atta tothe spread
tf plobalizaton, These are sme ofthe modem olsping of development
{hour ineastrucure system. These imtprovernents that people enjoy today
inthis contemporary wos have been major actors giobaliation wiih
have generated further interdeperdencein economic and cltral activities
‘mong nations.
Likowiee, environmental challenges sich as global warming, cross
boundary wate, sr pluton, and arershing of te ocean are inked wth
{lobaliztion, Globalizing proceses fect and ae afcted by busires and
Slow organization, economics socoultal resoures, and he natal
Chvronment. Acadense Metre commonly subaiides globalization
{ito thee major seas sconori globalization, cltral globalization. and
poltical globalization,
Nature of Glebalzaion
Globalization i «conglomerate of varios maliple ult oct in
the diferent parts ofthe plobe which are inked by common ownership.
‘The multiple ints daw on pacts of the globe ut linked by common
Dwnership: Malpe unis detw on 8 common pool of resourses, such as
tnoney, cei information patents, trade names and conel stems The
tuts respond to some common strategy. Product presence isn fret
Irarkts ofthe worl. Human resoures are high averse. Teasactions
fevoleing intelectual properties such ax copycght, patent, ademas,
tn proces technologies are across the globe
Dimensions of Globalization 5
‘The flowing are the dimensions of globalization
1, Planning 0 expand the business ona worldwide scope
2 Giving up the distinction between domestic and foreign mal
Instead developing global cutlook of such Businoss 33 Looting the production and the physical feiises of the businst
by considering glotal business dynamics lmespecve of nasonal
censideraton
4 Creating product development and production planing on global
market sphere
5; Global sourcing of the factors of production such as raw materials
fomponenty machinery, tcinology, nance, and others that ae
‘Shine fo the beat source anywhere in he worl
6 Global orientation o organization tuctre and management culture
Reasons for Globalization
Why do we have to globalize especially a his contemporary world?
Hace re the vento
1. Rapid shrinking of tne and distance aise the globe. Oe can easly
roms the bridge going to the oer sde of the marketplace due
‘Svance tol of ecology than before.
2 Domestic market are no longer rich as » consequence of many
Invoking fat.
Companies and insttutions go gobl to fad polticl end economic
‘ability which relatively good tn oher couse than the coutey
song
4. Toet technological and managerial know-how of other counties due
10 Beir sovancmer in scene tecinology edueton, bea sd
ther eld of disap.
8. To reduce high tansporation cons if one goes pbally ong the
‘Svance tole communication snd formation,
6 Tobe close to raw mates and to markt for the ished product
‘which are not svalabe inthe county fer
‘The creston ofthe World Trade Orgaizaton (WTO had made possible
in Smlating incensed rows order trade, Ther ar oter word bodies
lke he UN ati sever! citation odes where counties gr
‘Stages of Globalization
“There ae ve () stags of globalization, These a:
Stage
‘Theft stage is the ars length sevice activity ofan esetialy
omestc cmpanyfinsiation whith moves nto new market oversea
by linking up with oral dealers and ditutoes
In thie stge de companyfinsition takesove these activites on
Stage
In this stage, dhe domestcbaced company istiton begins 10
cary out is wn manufacturing marking and sles in Key foreign
artes
Stages
Ini tage the company nststion moves afulinider postion
in thete markets supported by s complete business sjstem Including,
Research tnd Development (R&D) and engineering. However, the
beadguaters menaitycondnes t dominate
Stage
In this stage, the companynttution maves toward «genuinely
foal mode of operation Inthisstage, global loealzatonbappens, hat
{E the companyinstston serves loc customers in market around
tbe globe responding fo thir needs This require an organizational
leans ce the connpey nist denatonalize Hs operations and cent
{yetem of value shared by global manager.
Merit of Globalization
‘What on a company oan nai gets fom globalization. Thre ae
ight) ment or advantages
1. Global competition and imports keep a
Isles key to deal economic growth
An open economy spar fat innovation with fresh ieas rom abroad
Export jobs ofan pay ore than therabs
Unetered capital flow keep interest tes fw.
ving standards goup fst
Proctivty grows mote quickly when countries produce goods and
services in wich they ate of compara advantage
Counties Uberalize thee visa rales and procedures sos 0 permit he
{il ow of people from county to counts.
Tt resus in feeng up the unproductive sector to investment an he
Productive sector to export related aces resulting in a win-win
“Etuaton forthe worl exon.
om pies such that nationDemerts of Globalization
‘Globalization also has its disadvantages or demerits Among thes ate:
several peopl oe ter obe when compares import che labor ot
trata orf production abroad
‘Workers fe py cat demands fom employes whe often eaten to
epothbs -
a a etna ar ce wages Pe fb
‘Sone and eters
High foreign take on indusios wherein ees needed col
ks the honome rowthofdomestieterprse
Sovereignty fx eounty and company ntuton may be at sake,
Importance of Studying Globalization
Intoday'scontemporary word tsimpotant for stents tounderstand
and appreciate the sty of loblizatin fo the following vaso
1. Theresa grester demand in business and indus. eat ngs,
Tei teinblogy to have people who can work with people of oer
ations and etre.
2, Theresa greater demand of promoting the ea business and industey
other Gunts and if need be, owes wave independent and
Insratonally fr beter promotion
4. The contemporsy world face global challenges that will tke
Mersey groups to ecve tise chullenges These challenges
Src howto provile aces fo dean weer, ean environment clean
MSenabearargy tats afordabe to everyone a ow to del with
{fevunprediaabc climate change ust to name «few. These global
‘Eiulerge ned to be solved sr son as possible hough the geheing
Sha shethg of information acre Splines, iaittions and oer
‘nts ina abl sale
4. Creating meaningful harmonious, and workable elatonship tt ink
ffanallfien important aspect ofthe merits lbaliaton opectly
Ape wah tobe the President of he ature generohon
Kaurdge ofthe mers demerits and reaons for globalization will
‘Shab studens to Work as model of coflaboratv international
‘Sam in the ear ure along te ares of business, education beat
Sider ted engineering, botel indus, ee and lscuss bee
rodctin hese seas
“The Importance of Globalization for Everyone
According o Nell Kokemulle, writer, globalization ithe expansion of
toca ecnotiesandbusiesses ino abroad international marketplace Even
‘all businesses have gotn active in he global environment asthe Inerot
fd motile technology have enabled commericston sos continents and
unres: Globalization has become important for a number of reasons,
Snelaingthe overall need orbusinases to compote acntdingto Koken.
Thetnemetreoatonind ebusrseaen bested ole
new vital markrpace that expands beyond pial and geographic
[tnt Compute infor comme can aw compet ores
inthe United Sites by leveraging ter own countrys secures lower
‘ats of aber and afordable dutbaton procenes Inthe sane way. US
CSexpanes have the opportunity to appeal to customers inthe PPPS
St ker coats by promoting the goo ana servos
‘The development of sins, industry and income evelinseverallange
population nes has allo contbutedt the importance of globalization
{Eins Inca and Brac are prominent examples of tving economies of
29, Neary two lion people sien these countries As customers gin
buying pes US. cenparieracor halimporant pa it e
even dolls can provide. Prerhip opportunities wit hatnentes
thesecomninescan age
Competition
_Evenifyou want to avid he platalization movement you alten have
soci buttconpete nent orapnconptn inte
the numberof companies in some indies that can screed domestica
Inthe ame way, i'yourcompestrs expand global you have to consider
flowing sult. Any money othe companies maki foreign markets, hey
‘an bring back to the Usted Sates an ues tn promoting Bee brand,
product and services domestically,
Diver Population
Business tends often anieror broader societal trends, The United
States and the world in general, has become very diverse. The United
States is ome to immigrant rom many eountres around the Wo#l. As
people move to diferent pars of the worl, they spread diferent ides
perspective and customs. Foregn-bom cizene who work for and buy
Rom US. companies ote vantto sc them get nvlved in doing busnoss
mother par ofthe wor“The Theory of Comparative Advantages
{Gobalizaton is grounded onthe Theory of Comparative Advantage
‘his theory stats that countries hat re good at producing parila good
te beer Of exporting i to countries that are less eftcient at producing
that good. Conversely the later country con then export the goods Bat
If pecs in an efflent mancer fo the former eaantey which might be
‘Sfcient inthe sate The anderling espn ere that notall counties
[rego at producing ll cots of goods and ence they benefit by trading
Wwhench other Further, Beene Of te wage eiferertal andthe way
Wnih ferent courses are endowed with ciferent resources, countries
Tanto gin by tang with cach oer.
Phiteophy Undesying Globalization
CGobaiaton is ane ofthe mest widely spread recent cultural soca,
economic and pellcal phenomenon whist has stongly marked the
‘Tecnu oftheRumantes and socal eences Thisnew, notyt constituted
ra powes multiple challenges in which tere I oom for novel theoretical
Dera nr ew emerging Worl
1. The concept of plbaiztion has only eecently boon widely accepted
tnd adapted ~ wore lie global, globally, globalization, global as
‘tetas the concept global mane global eslogy global cients
‘Bore tal nknawn upto the very end ofthe 20 carry
2. Disrussion of world esses used the derivatives of “Intemational”
‘ther than lobe” eatons berate of the recent popularized new
‘raep of “globalization” has revlted in Inwumerable contradicting
“etniton ofthe sane
1. While, normatvely speking, some ptople asocate globalization
With progres, property, and peace some others consider ito be
‘etogrsron aster and dey
44 The common and indisputable characteris ofall is defritons is
the view tha globalization is "a proess of economic socal culture,
te politi seit, which anacends nation-state borders and that t
ports to the worl as a whole Is within this content thatthe ml
[imenstonallty ofthe glbalzation proces comes to the foe.
5. Globalization is complex and controversial proces ofthe bullding of
‘he wordas eile de tothe cretion of lobal notational stuctres
[Sut global clr form ike ree market eeonamcunifeaton ofthe
‘rorlwith uniform patternsoproducionand consumption: democrale
Integration ofthe wor based on comnon interest of mankind, auch
2 equality, human nights protection rule of la, peace and sec,
{nd oral integration ofthe world based on puranstivalues~ instead
tf atonal sate particulars
6, Various ideological movements of resistance to globalization have
teen emerging in rexponge Io globalization such asthe violent and
sestacve mais demons Sage i aru counties ae
Finally, based on the above philosophical dimensions underlying
lobalzmon isthe fee movement f goods services and people sro the
‘word ina sams nd intograted manner lbalzaon canbe though of
tote the reel f the opening up ofthe lak economy and the cancotant
Increase in ade betwecn nation inthis contemporary wold,
“The point heres that glabalzaonhas he postive and nogative eft
nd therefore ae approach ened when dscusing the concept What
[ UndeniablsI that GLOBALIZATION is hereto stay Rene is bee or
the countries in the global economy to embrace the eanexpt and Lie with t
intur contempornry wed