INTRODUCTION TO GLOBALIZATION
aspects of globalization to terrorism. To
GLOBALIZATION
- is a term that came into popular usage
in the 1980's to describe the increased
movement of people, knowledge and
ideas, and goods and money across
national borders that has led to increased
interconnectedness among the world's
populations, economically, politically,
socially and culturally.
Although globalization is often thought
of in economic terms (i.e., "the global
marketplace"), this process has many
social and political implications as well.
Many in local communities associate
globalization with modernization (i.e., the
transformation of "traditional" societies
into "Western" industrialized ones). At
the global level, globalization is thought of
in terms of the challenges it poses to the
role of governments in international
affairs and the global economy.
There are heated debates about
globalization and its positive and
negative effects. While globalization is
thought of by many as having the
potential to make societies richer
through trade and to bring knowledge
and information to people around the
world, there are many others who
perceive globalization as contributing to
the exploitation of the poor by the rich,
and as a threat to traditional cultures as
the process of modernization changes
societies.
There are some who link the negative
put a complicated discussion in simple
terms, they argue that exploitative or
declining conditions contribute to the lure
of informal "extremist" networks that
commit criminal or terrorist acts
internationally. And thanks to today's
technology and integrated societies, these
networks span throughout the world. It is
in this sense that terrorism, too, is
"globalized." The essays in this section
address some of the complex questions
associated with globalization in light of
September 11. Before moving to these
essays, consider the discussion below
about some of the economic, political,
social and cultural manifestations of
globalization.
Economic Manifestation of
Globalization
Increasingly over the past two
centuries, economic activity has
become more globally oriented and
integrated. Some economists argue that
it is no longer meaningful to think in
terms of national economies;
international trade has become central
to most local and domestic economies
around the world.
Many economists assess economic
globalization as having a positive
impact, linking increased economic
transactions across national borders to
increased and opportunities for
economic development.
SOCIAL AND CULTURAL
MANIFESTATIONS OF GLOBALIZATION
THERE ARE MANY SOCIAL AND
CULTURAL MANIFESTATIONS OF
GLOBALIZATION, HERE ARE SOME OF
THE MAJOR ONES:
INFORMATIONAL SERVICES
The past two decades have seen an
internationalization of information
services involving the exponential
expansion of computer-based
communication through the Internet
and electronic mail. On the one hand,
the electronic revolution has promoted
the diversification and
democratization of information as
people in nearly every country are able to
communicate their opinions and
perspectives on issues, local and global,
that impact their lives.
NEWS SERVICES
In recent years there has been a
significant shift in the transmission
and reporting of world news with the
rise of a small number of global news
services.
POPULAR CULTURE
The contemporary revolution in
communication technology has had a
dramatic impact in the arena of
popular culture. Information technology
enables a wide diversity of locally based
popular culture to develop and reach a
larger audience. For example, "world
music" has developed a major
international audience. Old and new
musical traditions that a few years ago
were limited to a small local audience
are now playing on the world stage.
On the other hand, globalization has
increased transmission of popular
culture easily and inexpensively from
the developed countries of the North
throughout the world.
WHAT IS GLOBALIZATION?
DEFINITIONS ARE CATEGORIZED TO
THREE MAIN FRAMES:
1. THE POSITIVE FRAME
- points to the potential gains and benefits
of globalization.
2. THE NEUTRAL FRAME
-portrays globalization as a natural,
evolutionary and largely inevitable
development. This discourse, which is
associated with the financial
community, avoids making moral
judgments.
3. THE NEGATIVE FRAME
- points out the increasing potential for
economic crisis, the threat to the
livelihoods of workers and the growing
income inequality caused by
globalization.
GLOBALIZATION
- is a widely-used term that can be
defined in a number of different ways, but
when used in an economic context, it
refers to the reduction and removal of
barriers between national borders in
order to facilitate the flow of goods,
capital, services and labor.
Refers to the growing economic
interdependence of countries
worldwide through the increasing
volume and variety of cross border
transactions in goods and services and
of international capital flows and also
the more rapid and widespread diffusion
of technology
It also refers the acceleration and
intensification of interaction and
integration among the people, companies,
and governments of different nations.
It is also a process that encompasses the
causes, course, and consequences of
transnational and transcultural
integration of human and non-human
activities.
Lesson 2
MARKET INTEGRATION LESSON 2
MARKET INTEGRATION
Integration shows the relationship of
firms in a market. The extent of
integration influences the market
conduct of the firms and consequently
their marketing efficiency.
Markets differ in the extent of
integration and, therefore, there is a
variation in their degree of efficiency.
Market integration is a process which
refers to the expansion of firms by
consolidating additional marketing
functions and activities under a single
management.
TYPES OF MARKET INTEGRATION
There are three basic kind of market
Integration:
Horizontal Integration
Vertical Integration
Conglomeration
Horizontal Integration.
• In this type of integration, some
marketing agencies combine to form a
union to reduce their effective number
and the extent of actual competition in
the market.
• e.g. Primary milk producers, Facebook
with Instagram.
Example for horizontal integration
One of the clearest examples of horizontal
integration is Facebook's acquisition of
Instagram in 2012 for a reported $1
billion. Both Facebook and Instagram
operated in the same industry and were
in similar production stages in regard to
their photo-sharing services.
Facebook looking to strengthen its
position in the social media and social
sharing space, saw the acquisition of
Instagram as an opportunity to grow
its market share, increase its product
line, reduce competition and access
potential new markets. All of these
things came to pass, resulting in a high
level of energy.
Vertical Integration
• Vertical integration occurs when a
firm performs more than one activity in
the sequence of the marketing process. It
is linking together of two or more
functions in the marketing process
with in a single firm or under a single
ownership.
For e.g. if a firm assumes wholesale as
well as retailing, it is a vertical integration
or rice processor under taking retailing.
1. FORWARD INTEGRATION:
It takes activities close to the
consumption function
Ex. wholesaler assuming the function of
retailing.
2. BACKWARD INTEGRATION:
The combination of sources of supply.
Ex. processing firm assumes the function
of assembling/purchasing
Custom
Retailer
Whole sale
Processor
Farmer
In a Market Chain
commodities flow from producers to.
EXAMPLE FOR FORWARD VERTICAL
INTEGRATION COMPANY
Canadian communications giant Rogers
is an example of forward integration.
The company established Rogers TV, a
subsidiary company that operates
local television channels.
The Rogers TV channels show
programs such as cooking and talk
shows, which are produced by Rogers-
managed television studios.
These provide Rogers with an
opportunity to advertise and sell its
digital products using an electronic
version of a retail store.
Ex: ROGERS
EXAMPLE FOR BACKWARD VERTICAL
INTEGRATION COMPANY
Amazon.com backward vertically
integrated when it became not only a
bookseller but a book publisher.
As a bookseller, Amazon.com buys books
from various suppliers, such as
publishing companies.
By becoming a publisher itself, it has
integrated into its business the role of
supplier and can sell books that its own
publishing company publishes.
CONGLOMERATION
A combination of agencies or activities
not directly related to each other may
operate under a unified management.
Ex. conglomeration are Hindustan
Unilever Ltd. (processed vegetables and
soaps), Delhi Cloth and General Mills
(Cloth and Vanaspati).
Hindustan Unilever limited
• Hindustan Unilever Limited (HUL) is the
Indian wing of the Multinational
consumer goods company Lever
International.
• HUL was established in 1933 as Lever
Brothers and, in 1956, became known as
Hindustan Lever Limited, as a result of a
merger among Lever Brothers, Hindustan
Vanaspati Mfg. Co. Ltd. and United
Traders Ltd.
• It is headquartered in Mumbai, India
and employs over 16,000 workers,
whilst also indirectly helping to facilitate
the employment of over 65,000 people.
• The company was renamed in June 2007
as "Hindustan Unilever Limited"
CONTEMPORARY GLOBAL
GOVERNANCE LESSON 3
WHAT IS GLOBAL GOVERNANCE?
ORAN YOUNG (1994), IN TURN,
DEFINES GOVERNANCE AS:
The establishment and operation of social
institutions (in the sense of rules of the
game that serve to define social practices,
assign roles, and guide interactions
among the occupants of these roles)
capable of resolving conflicts, facilitating
cooperation, or, more generally,
alleviating collective action problems in a
world of interdependent actors.
Young's definitions properly direct our
attention to the interdependent nature of
decision making and the attempt by
actors to "manage" or produce more
"orderly" responses to common
problems.
But it resulting blur two analytically
distinct political processes:
BARGAINING
which divides the available costs and
benefits. between actors.
CONTRACTING
Which enforces the bargains reached. It is
the enforcement of bargains that we
intuitively mean by the term governance.
IMPLICATIONS
Frequently noted in the existing
literature, governance is not equivalent to
government or formal institutions.
Global governance is not limited to
contracts between states.
Governance is a variable between the
relations of anarchy and hierarchy.
GOVERNANCE & GLOBALIZATION
Globalization and global governance are
intimately connected.
As globalization occurs, states lose control
over their destinies, problems become
"bigger than the capacities of individual
governments, and states must delegate
and possibly abdicate political authority
to supranational entities with powers that
more nearly coincide with the scope of
the issues and actors to be managed.
GLOBAL GOVERNANCE
•INTERGOVERNMENTAL
•SUPRANATIONAL
•TRANSGOVERNMENTAL
•TRANSNATIONAL
INTERGOVERNMENTAL
The term intergovernmental
organization (IGO) refers to an entity
created by treaty, involving two or more
nations, to work in good faith, on issues of
common interest. In the absence of a
treaty an IGO does not exist in the legal
sense.
For example, the G8 is a group of eight
nations that have annual economic and
political summits. IGOs that are formed by
treaties are more advantageous than a
mere grouping of nations because they
are subject to international law and have
the ability to enter into enforceable
agreements among themselves or with
states.
SUPRANATIONAL
A supranational organization is a
multinational union or association in
which member countries cede authority
and sovereignty on at least some internal
matters to the group, whose decisions are
binding on its members. In short, member
states share in decision making on
matters that will affect each country's
citizens.
TRANSGOVERNMENTAL
Co-operation based on loosely-structured,
peer to peer ties developed through
frequent interaction rather than formal
negotiation involving specialized
domestic officials (typically regulators)
directly interacting with each other
(through structured dialogues), often
with minimal supervision by foreign
ministries.
TRANSNATIONAL
Transnational organization is a term used
in scholarly literature. It refers to
international organizations that
"transcend" the idea of a nation-state. The
distinction between an international and
a transnational organization is unclear
and has been criticized by some scholars.
GLOBAL GOVERNANCE AS AN
INTERNATIONAL ORGANIZATION
Global governance clearly is not world
government - indeed, it is better viewed
as the sum of governance processes
operating in the absence of world
government.
Global governance, "is any purposeful
activity intended. to "control" or influence
someone else that either occurs in the
arena occupied by nations or, occurring at
other levels, projects influence into that
arena."

THE POTENCIES OF GLOBAL

GOVERNANCE

•Creating greater operational capacity

and effectiveness.

•Generating more flexibility and

efficiency.

•Establishing a cooperative work culture

in participating organizations.

•Encouraging interorganizational
learning.

•Creating greater opportunities for

participation and increasing the
legitimacy of governance.