MODULE 1

GLOBALIZATIONS DEFINED

LEARNING OUTCOMES

At the end of this module, the learner should be able to:

1. Differentiate the competing conceptions of globalization,

2. Identify the underlying philosophies of the varying definitions of globalizations;
3. Agree on the working definition of globalization
LESSON OVERVIEW
This module will discuss the different competing definitions of Globalizations
as worldwide phenomena.

PRELIMINARY ACTIVITIES
1. What is your idea all about the Globalization?
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DEFINITION OF TERMS
Please look for important terms below and define it.

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CONTENT
The discussion is taken from the article of Fernando (2021):
What Is Globalization?
Globalization is the spread of products, technology, information, and jobs
across national borders and cultures. In economic terms, it describes an
interdependence of nations around the globe fostered through free trade.

Understanding Globalization
Corporations gain a competitive advantage on multiple fronts through
globalization. They can reduce operating costs by manufacturing abroad, buy
raw materials more cheaply because of the reduction or removal of tariffs, and
most of all, they gain access to millions of new consumers.

Globalization is a social, cultural, political, and legal phenomenon. 

● Socially, it leads to greater interaction among various populations.

● Culturally, globalization represents the exchange of ideas, values, and
artistic expression among cultures.
● Globalization also represents a trend toward the development of a
single world culture. 
● Politically, globalization has shifted attention to intergovernmental
organizations like the United Nations (UN) and the World Trade
Organization (WTO).
● Legally, globalization has altered how international law is created and
enforced.

On one hand, globalization has created new jobs and economic growth

through the cross-border flow of goods, capital, and labor. On the other hand,
this growth and job creation are not distributed evenly across industries or
countries.

Specific industries in certain countries, such as textile manufacturing in the

U.S. or corn farming in Mexico, have suffered severe disruption or outright
collapse as a result of increased international competition.

Globalization's motives are idealistic, as well as opportunistic, but the

development of a global free market has benefited large corporations based in
the Western world. Its impact remains mixed for workers, cultures, and small
businesses around the globe, in both developed and emerging nations.

The History of Globalization

Globalization is not a new concept. Traders traveled vast distances in ancient
times to buy commodities that were rare and expensive for sale in their

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homelands. The Industrial Revolution brought advances in transportation and
communication in the 19th century that eased trade across borders.

The think tank, Peterson Institute for International Economics (PIIE), states

globalization stalled after World War I, and nations' moved
toward protectionism as they launched import taxes to more closely guard
their industries in the aftermath of the conflict. This trend continued through
the Great Depression and World War II until the U.S. took on an instrumental
role in reviving international trade.1

Globalization has sped up to an unprecedented pace, with public policy

changes and communications technology innovations cited as the two main
driving factors.

One of the critical steps in the path to globalization came with the North
American Free Trade Agreement (NAFTA), signed in 1993.2One of NAFTA's
many effects was to give American auto manufacturers the incentive to
relocate a portion of their manufacturing to Mexico where they could save on
the costs of labor. NAFTA was replaced in 2020 by the United
States-Mexico-Canada Agreement (USMC).

Governments worldwide have integrated a free market economic system

through fiscal policies and trade agreements over the last 20 years. The core
of most trade agreements is the removal or reduction of tariffs.

This evolution of economic systems has increased industrialization and

financial opportunities in many nations. Governments now focus on removing
barriers to trade and promoting international commerce.

Advantages and Disadvantages of Globalization

Advantages
Proponents of globalization believe it allows developing countries to catch up
to industrialized nations through increased manufacturing, diversification,
economic expansion, and improvements in standards of living.

Outsourcing by companies brings jobs and technology to developing

countries, which help them to grow their economies. Trade initiatives increase
cross-border trading by removing supply-side and trade-related constraints.

Globalization has advanced social justice on an international scale as well,

and advocates report that it has focused attention on human rights worldwide
that might have otherwise been ignored on a large scale.

Disadvantages
One clear result of globalization is that an economic downturn in one country
can create a domino effect through its trade partners. For example, the 2008
financial crisis had a severe impact on Portugal, Ireland, Greece, and Spain.
All these countries were members of the European Union, which had to step

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in to bail out debt-laden nations, which were thereafter known by the acronym
PIGS.

Globalization detractors argue that it has created a concentration of

wealth and power in the hands of a small corporate elite that can gobble up
smaller competitors around the globe.

Globalization has become a polarizing issue in the U.S. with the

disappearance of entire industries to new locations abroad. It's seen as a
major factor in the economic squeeze on the middle class.

For better and worse, globalization has also increased homogenization.

Starbucks, Nike, and Gap dominate commercial space in many nations. The
sheer size and reach of the U.S. have made the cultural exchange among
nations largely a one-sided affair.

What Is the Simple Meaning of Globalization?

In essence, globalization is about the world becoming increasingly
interconnected. Countries today are more connected than ever before, due to
factors such as air travel, containerized sea shipping, international trade
agreements and legal treaties, and the Internet. In the world of business,
globalization is associated with trends such as outsourcing, free trade, and
international supply chains.

Is Globalization Good or Bad?

Proponents of globalization will point to the dramatic decline in poverty that
has taken place throughout the world over the past several decades, which
many economists attribute in part to increased trade and investment between
nations. Similarly, they will argue that globalization has allowed products and
services such as cellphones, airplanes, and information technology to be
spread far more widely throughout the world. On the other hand, critics of
globalization will point to the negative impact it has had on specific nations’
industries, which might face increased competition from international firms.
Globalization can also have negative environmental impacts due to economic
development, industrialization, and international travel.

Why Is Globalization Important?

Globalization is important because it is one of the most powerful forces
affecting the modern world, so much so that it can be difficult to make sense
of the world without understanding globalization. For example, many of the
largest and most successful corporations in the world are in effect truly
multinational organizations, with offices and supply chains stretched right
across the world. These companies would not be able to exist if not for the
complex network of trade routes, international legal agreements, and
telecommunications infrastructure that were made possible through
globalization. Important political developments, such as the ongoing trade

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conflict between the United States and China, are also directly related to
globalization.

LEARNING ACTIVITIES
Supply it!
Kindly supply the table below.
Definition Characteristics

Examples Non-examples

MODULE SUMMARY
Write an outline based on the content that you’ve read above.

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ASSESSMENT
Quote it!
Kindly share your insights regarding the quote.
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REFERENCES
Fernando, J. (2021). Globalization. Retrieved from
https://www.investopedia.com/terms/g/globalization.asp

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