TCWD REVIEWER

Designate an overview of human experience— Cuturela

Globalization is the development of an increasingly integrated global economy marked by free trade,
free flow of capital, and the tapping of cheaper foreign labor markets— Webster

"Globalization: Social Theory and Global Culture" defined globalization as the “understanding of the
world and the increased perception of the world as a whole.”— Robertson

Cultural Imperialism– Dominance of one culture to another

"All those processes by which the people of the world are incorporated into a single world society"—
Albrow and King

"Globalization is the process of intensifying social relationships among countries around the world
connecting separate localities"— Giddens

Freeden (2003) “globalization denotes not an ideology, but ‘a range of processes nesting under one
rather unwieldy epithet— Steger

Globalization should be confined to a set of complex, social processes that are changing out current
social condition derived from the modern independence of nation-states.— Steger

Globalization have been defined such as multidimensional set of social processes that create, multiply,
stretch, and intensify worldwide social interdependencies and exchange while making people aware of
connections between the local and the distant.— Steger

Globalization refers to an extension beyond national borders of the same market forces that have
operated for centuries at all levels of human economic activity which includes village markets, urban
industries, or financial centers.— IMF
Globalization is the interplay of extraordinary technological innovation mixed with influence of the
world that gives today’s changing its complexity.— Huttons and Giddens

THE FIVE CORE CLAIMS OF MARKET GLOBALISM

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

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

According to Gereffi, the global economy can be studied at different levels of analysis.

Macro Level– This includes the international organizations and regimes that establish rules and norms
for the global community.

The World Bank, the

International Monetary Fund, the
World Trade Organization, and the
International Labor Organization are the existing international organizations that make impact to the
economy of the world.

Meso Level– It is believed that the building blocks for the global economy are the countries and firms.
The global economy is seen as the arena in which countries compete in different product markets.

Micro Level– The development of a world trading system over a period of several centuries helped to
create the tripartite structure of core, semi peripheral, and peripheral economic areas.

“Division of Labor” as the specialization of workers in different parts of the production process, usually
in factory setting.– Adam Smith

Division of labor also acquired a geographical dimension during the influx of industrial economies as
evolved.– Gereffi

As both cities and countries extended their reach beyond their own borders, a form of globalization was
initiated which then followed complex patterns of interactive engagements organized through trade and
directly influenced by the emergent and subsequently dominant technologies, especially in shipping and
navigation.– Harvey

The entities operating within this environment were functionally and organizationally not so very
different from contemporary organizations, being possessed of “head offices, foreign branch plants,
corporate hierarchies, extraterritorial business law, and even a bit of foreign direct investment and
value-added activity.– Lewis and Moore

MNC– Multinational Corporation

Produce or deliver services in more than one country, usually with its management in one country. Its
home country.

TNC– Transnational Corporation

Does not identify itself with one national home

International Companies are importers and exporters, typically without investment outside of their
home country.

Multinational Companies have investment in other countries, but do not have coordinated product
offerings in each country. They are more focused on adapting their products and services to each
individual local market.

More formally the transnational corporation has been defined as an “enterprise that engages in
activities which add value (manufacturing, extraction, services, marketing, etc) in more than one country
(UCTC, 1991).”– United Nations Centre on Transnational Corporations (UNCTC)

Barnet and Muller define the MNC as a major economic global actor and begin an effective description
of how this particular corporate form was coming to dominate various aspects of global production and
exchange

Geriffe emphasizes three structural periods:

Investment-based globalization (1950-1970);
Trade-based globalization (1970-1995);
Digital globalization (1995 onwards.)

Within this analysis the nature of the global corporation changes accordingly, being driven in each case
by its evolving purposes and by its extended reach and abilities (Geriffe 2001)
The First Phase of Globalization (1830-1880)
The first phase of globalization began about 1830 and peaked around 1880. International commerce
became widespread in this period due to the growth of railroads, efficient ocean transport, and the
rise of large manufacturing and trading companies.
The inventions of the telegraph and telephone in the 1800s facilitated information flows between and
within nations and greatly aided early efforts to manage companies’ supply chains.
International Business: Strategy, Management, and the New Realities

THE SECOND PHASE OF GLOBALIZATION (1900-1930)

The second phase of globalization began around 1900 and was caused by the rise of electricity and steel
production. The phase reached its height just before the Great Depression, a worldwide economic
downturn that started in 1929.
At the turn-of-the-century, Western Europe was the most industrialized region and its colonization of
countries worldwide led to the establishment of some of the earliest subsidiaries of multinational firms.
European companies such as BASF, British Petroleum, Nestlé, Shell, and Siemens had established
foreign manufacturing plants by 1900.
International Business: Strategy, Management, and the New Realities

THE THIRD PHASE OF GLOBALIZATION (1948-1970S)

At war’s end in 1945, substantial pent-up demand existed for consumer products, as well as for input
goods to rebuild Europe and Japan. Among the leading economies, the U.S. was least harmed by the war
and became the world’s dominant economy. Substantial government aid helped stimulate economic
activity in Europe.
Commonplace were high tariffs, other trade barriers, with strict controls on currency and capital
movements. Several industrialized countries, including Australia, the United States and the United
Kingdom systematically sought to reduce international trade barriers.
The result of this effort was the General Agreement on Tariffs and Trade (GATT) – the precursor to the
World Trade Organization (WTO)

The Fourth Phase of Globalization (since the 1980s to present)

The fourth and current phase of globalization began in the early 1980s.This period witnessed enormous
growth in cross-border trade and investment activity. The following innovations caused this phase:
a. Commercialization of the personal computer.
b. Arrival of the Internet and the web browser.
c. Advances in communication and manufacturing technologies.
d. Collapse of the Soviet Union and ensuing market liberalization in central and Eastern Europe.
e. Substantial industrialization and modernization efforts of the East Asian economies including China.

Foreign direct investment (FDI) is when a company owns another company in a different country

The so-called “developing economies”, and especially those of Brazil, Russia, India, China and South
Africa—the so-called BRICS economies, have become the most dynamic sector of global corporate
growth, represented in part by their significant FDI over the three decades.
Hawksworth and Cookson predict that “middle class” consumers in China and India will grow from
some 1.8 billion in 2010 to 3.2 billion in 2020 and 4.9 billion by 2030 (2008).

The modern world-system is structured politically as an interstate system – a system of competing and
allying states.

‘Civilization is a sort of ocean, constituting the wealth of a people, and on whose bosom all the elements
of the life of that people, all the powers supporting its existence, assemble and unite’ –Guizot

John Stuart Mill suggested by contrast that there was but a single model of civilization ... he located in
Europe since ‘all [the elements of civilization] exist in modern Europe, and especially in Great Britain, in
a more eminent degree… than at any other place or time.

Martti Koskenniemi and Antony Anghie—International Law was designed as an aid to the preservation
of order among sovereign states, and its principles were explicitly stated as applying only to civilized
states

Henry Wheaton (1845) talked in terms of the ‘international law of Christianity’ versus ‘the law used by
Mohammedan Powers’; such pluralism had all but vanished.

W. E. Hall, international law ‘is a product of the special civilization of modern Europe and forms a highly
artificial system of which the principles cannot be supposed to be understood or recognized by countries
differently civilized”

In the 1880s James Lorimer suggested there were three categories of humanity:
 civilized
 barbaric
 savage

Thus, have three corresponding grades of recognition (plenary political; partial political; natural, or
mere human).

International law is the set of rules generally regarded and accepted as binding in relations
between states and between nations. It serves as a framework for the practice of stable and organized
international relations.

National law may become international law when treaties delegate national jurisdiction
to supranational tribunals such as the European Court of Human Rights or the International Criminal
Court.

The laws of war, codified by the Great Powers at length at the end of the nineteenth century, were
designed to minimize the severity of conflicts between civilized states.
Fowler and Bunck (1996) emphasized that a sovereign state has a territory, the people, and a
government.

Chapter 2, Article 4 of the United Nations Charter states that only sovereign states can become
members of the United Nations

Intergovernmental Organizations (IGOs)

International Nongovernmental Organizations (INGOs)

The Rome statute of the International Criminal Court (ICC) upholds the principle of complementarities
and recognizes that states do not have to collaborate with the court unless they have ratified the
statute. However, this is only part of the picture.
The decisions of international judges and prosecutors now permeate and shape the domestic criminal
law of these countries.

William Burke-White further asserts that the ICC has become part of a system of multilevel global
governance through its alteration of state preferences and policies and its deterrence of future crimes
through judicial and prosecutorial pronouncements.