Globalization
 Globalization refers to the increasingly integrated nature of
economies around the world
In business, the term is used in an economic context to describe
integrated economies marked by free trade, the free flow of
capital among countries and easy access to foreign resources,
including labor markets, to maximize returns and benefit for the
common good. •
KEY POINTS • Globalization denotes a tendency towards the
growing extensity, intensity, velocity, and deepening impact of
worldwide interconnectedness.
• Globalization is associated with a shift in the scale of social
organization; the emergence of the world as shared social space;
the relative deterritorialization of power;
• It can also be conceptualized as a fundamental shift or
transformation in the spatial space scale of human social
organization that links the distant communities and expands the
reach of power relations across regions and continents.
• It can also be distinguished from Internationalization and
International interdependence.
HOW GLOBALIZATION WORKS?
In a globalized economy, countries specialize in the products and
services they have a competitive advantage in. This generally
means what they can produce and provide most efficiently, with
the least amount of resources, at a lower cost than competing
nations.
WHY GLOBALIZATION IMPORTANT?
Globalization changes the way nations, businesses and people
interact. Specifically, it changes the nature of economic activity
among nations, expanding trade, opening global supply chains
and providing access to natural resources and labor markets.
TYPES OF GLOBALIZATION: Economic, Political, Cultural
Economic globalization. Here, the focus is on the integration of
international financial markets and the coordination of financial
exchange.
Political globalization. This type covers the national policies that
bring countries together politically, economically and culturally.
Cultural globalization. This aspect of globalization focuses in a
large part on the technological and societal factors that are
causing cultures to converge. These include increased ease of
communication, the pervasiveness of social media and access to
faster and better transportation.
EFFECTS OF GLOBALIZATION The effects of globalization can be
felt locally and globally, touching the lives of individuals as well
as the broader society in the following ways:
Individuals
Communities.
Institutions
Examples of Globalization Free trade, travel, and
communication across countries are all examples of
globalization. Globalization can efficiently organize a
company’s services and production wherever the labor offers
the lowest costs.
BENEFITS OF GLOBALIZATION
) Solves economic problems.= It gives rich countries access to
lower cost resources and labor and poorer countries access to
jobs and the investment funds they need for development.
2) Promotes free trade.= . This consequently promotes economic
growth, creates jobs, makes companies more competitive and
lowers prices for consumers
3) Spurs economic development.= Theoretically, globalization
gives poorer countries access to foreign capital and technology
they would not otherwise have.
4) Encourages positive trends in human rights and the
environment=Advocates of globalization point to improved
attention to human rights on a global scale and a shared
understanding of the impact of people and production on the
environment.
5) Promotes shared cultural understanding=. Advocates view the
increased ability to travel and experience new cultures as a
positive part of globalization that can contribute to international
cooperation and peace
“Foreign” means “belonging or connected to a country which is
not your own”. It also applies to a policy toward the outside world
or outside a state’s territorial borders. Foreign also denotes
dealing with or involved with a country or countries other than
your own.
“Domestic” simply means “relating to a person's own country”. It
applies to a policy made for the internal political system.
So, when countries make domestic policies that have the effect
of changing the interactions between states, the line defining
international and domestic policymaking is unclear.
Foreign policy may be targeted at specific individuals such as a
particular leader, non-state actors such as international
organizations, human rights groups working across borders,
multinational corporations, terrorist groups, other states, the
international environment, or the global economyli
• In general terms, the concept of policy denotes “a program of
actions adopted by a person, group, or government, or the set of
principles on which they are based”. • It also connotes “a set of
ideas or a plan of what to do in particular situations that has been
agreed officially by a group of people, a business organization, a
government or a political party”.
• The term “policy” is typically reserved for the actions of
governments, government institutions, and government officials.
• A point that must be noted is that when we refer to “countries” . 15 • Indirect Foreign Policy Means • Indirect means of
or “states” in a discussion of foreign policy, we are referring to the foreign policy are the reflection of the position of a country
governments or the officials that act in their name. in the international community.

According to Wittkopt et al (2003),foreign policy embraces the • A country can put them to good use and rely on them
goals that the nation’s officials seek to attain abroad, the values when it promotes or protects its own interests.
that give rise to those objectives, and the means or instruments
used to pursue them.

• Keith R. Legg and James Morrison define “foreign policy as a set Among indirect means, the following should be listed: the
of explicit objective with regards to the world beyond the borders country’s international status
of a given social unit, and a set of strategies and tactics designed
; its membership in international organisations;
to achieve these objectives”.
its alliances;
Also Joseph Frankel defines foreign policy as consisting of decisive
actions which involve to some appreciable extent relations
the credibility and reputation it enjoys in international
between one state and the others.
public opinion, and ultimately, the image of its political,
• Elements of the Concept of Foreign Policy economic, and military power.

1) Although the State and its organs are the major players • These indirect means are usually not considered foreign
in the foreign policy arena, there is a wide circle of policy means that a country can use in its foreign policy
other important actors actively present in the activities, but they provide the background for the use of
international relations of the globalised world. those other means which are regarded as direct means of
2) 2) Foreign policy is managed in the name of the State foreign policy.
and for the State by the organs authorised for this
Direct Foreign Policy Means
particular function. • Every State marks out with its
own constitutional and legal arrangements the duties • Direct means are the means which are usually dealt with
and responsibilities of its organs in foreign policy and defined both in the theory and practice of foreign policy
3) 3) Foreign policy of every State is influenced by the as ‘means of foreign policy’
international environment, in particular by decisions
made by international organisations of which it is a . • The direct means of foreign policy are usually divided into
member. the means of coercion and the means of persuasion.
4) • 4) Foreign policy, being in the reality of international
life a continuous confrontation with the interests (and
the power and influence) of other States, can be
neither ‘linear’ nor ‘systematic’.
5) • 5) By means of foreign policy, the State seeks to
establish its views and its interests in the international
community and in relation to other States.
6) 6) The foreign policy ambitions of every State comes
up against certain restrictions. These restrictions can
be internal (endogenous), i.e. arising from within the
State itself, from its socio-economic structure, from its
size and power, from the degree of its development,
from its political and social stability, etc.
7) 7) In the enforcement of a country’s self-interest
(when confronted with influences and restrictions of
an either exogenous or endogenous nature, above all
with the interests of other countries) there are various
means that can be employed in the foreign policy of
any State, or rather are available to those who take
and implement foreign policy decisions.

Means of Actualizing the Foreign Policy of States

=All the various measures, both material and immaterial,

direct and indirect that are used to achieve foreign policy
goals can be identified as means of foreign policy.

The means of foreign policy can be divided into direct and

indirect