THE CONTEMPORARY WORLD

Module 1- GLOBALIZATION
Globalization is a term used to describe the changes in societies and the world economy that are
the result of dramatically increased trade and cultural exchange through integration of
technology.

A worldwide movement towards economic, financial, communications and trade integration is

the so called globalization. It is the tendency towards international investment, trade,
technology and the outsourcing of manufacturing across borders along with the transmission of
ideas, values and meaning across the world.

TYPES OF GLOBALIZATION
ECONOMIC – Countries that trade with many others and have few trade barriers are
economically globalized.
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 network)
POLITICAL the amount of political co-operation there is between countries.

GLOBALIZATION PROCESS
1. Increasing Global Movement
 Good and resources
 Money
 People
 Information
Globalization allows Multination Corp(MNC) to produce goods and services and
to sell products on a massive scale throughout the world like McDonald and
Nike.
2. Increasing power and wealth of business
 Multinational corporation (MNC) and rick capitalist countries have always
promoted global free trade as a way of increasing their own wealth and
influence.
3. Increasing influence of global media networked
 The development of satellite TV channels such as Sky and CNN have
provided worldwide marketing avenue for the concept and products of
globalization.
4. Decreasing distance
 Through the use of internet, this modern communication technology allows
vast amount of capital to flow freely and instantly throughout the world.
5. Changing Culture

 Where different cultures meet and blend.

 Sharing of knowledge and culture
6. Increasing global agreement/treaties
 World Trade Organization,
  environmental agreement,
 Can set policies to open or close trade with other countries.
 Influence of common law
7. Increasing humanitarian role
 Example is United nation Commen ted [G1]:
 Niger poorest country in the world

CONCEPT OF GLOBALIZATION (Jeffrey Hart)

Globalization is now a central concept in the public discourse of the early twenty first century.
In less than three decades, it has gripped the imagination of billions around the world who find
themselves witnesses to one of the most rapid yet precarious social transformations in human
history.
Globalization also has contributed to the emergence of a global social consciousness of global
imaginaries that frame how we see ourselves and our place in the ever expanding and ever
changing global community.
Most people have by now formed some opinion about the reality of globalization, indeed most
of us also hold strong normative views about whether globalization, understood as the extension
and intensification of social relation across world time and world space, should be seen as a good
or a bad thing.
According Jeff Hart Concept of Globalization
1) Global infrastructure
Global infrastructure is a minimalist form of globalization, where the presence or absence
of a matrix for interconnecting all regions is the key criterion for globalness.

2) Convergence
The movement towards the equalization of factor price or controlling for risk for
countries as evidence of movement towards a unified market become more global.

Economists often use the movement toward the equalization of factor prices (controlling
for risk) or toward harmonization of economic policies across a given set of countries as
evidence of movement toward a unified market. Some scholars have argued that a
widespread tendency of national governments to adopt liberalization policies for
domestic markets is evident of globalization of a specific kind.

3) Borderlessness
. Borderlessness or lack of border is an ambitious form of globalization, there must be
evidence that the existence of national or other important boundaries has become
irrelevant. It behaves like a single, unified economic system despite the continued
existence of formal boundaries.

Borderless world is a concept of globalization where the goods , services ,information and capital
flow from different nations. Any product whih is produced in one country, assembled in second
country, marketed in third country and finance from fourth country. Example : Levis Jeans

4) Diffusion
 Global diffusion is the degree to which an initially localized practice spreads throughout
the globe. The item being diffused can be anything that is initially localized: a
technology, a cultural artifact, a social practice, a disease, etc.

An example might be the use of telephones. As the use of telephones diffuses from
country to country and within each country to more and more of the population, one
can speak of the globalization of telephone adoption or usage. Of course, even if every
person in the globe has access to a telephone, they might not have access to each other
via the telephone unless the telephone networks are sufficiently interconnected. The
degree of globalness depends on the extent to which the item has diffused globally.
Example: Coca Cola products are found all over the world; McDonald’s Restaurants
have sprung up virtually everywhere

5). Dispersed Core Competence

Globalization of business location strategies may be motivated by dispersed core
competence. Core competence is a term which refers to those key technological
capabilities which are initially created in one location and which might or might not be
brought to bear quickly in solving problems outside the region where they are created.
‘
The reason that dispersed core competence is important for globalization is that it creates
incentives for government agencies and business enterprises to adopt strategies that can
take advantage of the dispersion of competences. Thus, dispersed core competence may
be a key explanation for the necessity of global business strategies, and thus may be an
important way of thinking about the globalization

Example is a globally competitive microcomputer, might contain a microprocessor

designed and manufactured in the United States, a disk drive designed and
manufactured in Singapore, and an operating system written in Europe.

GLOBALIZATION AND DEVELOPMENT

Impact and response of Globalization and Development -Industry and commerce

Industries are no longer limited to suppliers in the country in which they operate. They now have
access to other resources from all parts of the world. Sometimes even in the remote parts of the
world where raw materials and stock can be sourced at a better quality and at an affordable
price as well. This would lower the cost of production for many firms. Therefore, they could
expand their operations and benefit from economies of scale. This would increase the economic
growth in the country. Customers would benefit in that they would be getting a range goods
and services of a good quality at an affordable price. Thus this would improve their standard of
living and their quality of life.

1. Distribution sector (Supermarkets, department stores)

With globalization there is free trade. It facilitates multinational companies in the
country. If these companies are located in the country, they would reduce the cost
of distribution of the goods and services since the goods would be carried in a
shorter distribution channel. Therefore, this reduces the cost of production for the
firm. As a result, this low cost is passed onto the consumers, they would now be
able to purchase goods and services at a reasonable price.
 2. Labor
With globalization businesses have less difficulties in sourcing labor. They are able to
source labor from all parts of the world. Migration have been much easier and common
because of globalization. Immigrants are also willing to do work that locals would refuse
to do and sometimes at a cheap rate. This therefore lower the cost of production for the
business. They could increase output thus increasing the economic growth of the country.
Trade both create and destroys jobs. If exports are increased, then it is likely that this is
based on jobs in the country that produces the exports. The result of these processes is a
balance of payments problem and a loss of jobs in the importing countries.

3. Technology
Globalization has allowed business to get better technology. Since there is free trade they
can import freely. They would be able to improve their productivity and efficiency that
lead to increase in economic growth of the country and be able to compete on a global
market. Technology have also changed the way in which we purchase good. With the
use of the internet consumers can buy goods online. Ecommerce has allowed to have a
large share of the market. Not only do they enable businesses to communicate with
suppliers and customers in a timely basis neither computer technology has now become
an indispensable part of the actual production.

4. Ideology
An ideology is a set if ideas, doctrines or beliefs that forms the basis about how someone
or a group thinks of the political, economic, religious or some other system. People have
strong views about globalization, even when they do not understand it. They may feel
that it is inevitable and bring about modernization and development. If they commit to
such views, even in the face of evidence to the contrary, then this is an example of casting
globalization as an ideology.

SUMMARY
 Creation of new and the multiplication of existing social network that cross
geographical borders; (Trade unionism import and export good in other
countries)
 Expansion and stretching of social relations (connection with international
institutions)
 Intensification and acceleration of social exchanges and activities (internet and
transportation)
 Increases consciousness of the world. (Being aware of what is happening to the
world)

THE END – Prof.Lucelle G. Bagon