TCW- Module 1

GECTCW-18 The Contemporary World

Introduction to Globalization
 Manfred B. Steger is Professor at
the University of Hawaii at Manoa.
He was also Professor of Global
Studies and Director of the
Globalism Research Centre at RMIT
University in Australia until 2013.
Wikipedia
 Place of birth: Austria
 Affiliation: University of Hawaii
 Research interests: Globalization,
Social Theory, Ideology
Introduction to Globalization
 The best scholarly definition of
globalization is provided by
Manfred Steger (2014, p. 184). He
described globalization as
 “the expansion and
intensification of social relations
and consciousness across world-
time and across world-space.
 It is a multi-dimensional
phenomenon involving
economics, politics, culture,
ideology, environment, and
technology.
Arjun Appadurai

 Born 1949 (age 72–73)

 Bombay, India
 Alma mater Brandeis University
(B.A.)
 University of Chicago (M.A., Ph.D.)
 Scientific career
 Fields Anthropology
 Institutions New York University
 The New School
 University of Pennsylvania
Arjun Appadurai on Globalization
 He argues that there are multiple
globalizations and it depends on what is
being globalized. It could be an idea,
material, and nonmaterial culture.
 The globalization system which is aptly
called the digital age has something to
do with the context, character, content
and conduct of power and shaped up
with the changing configuration of
power of the individuals, group of the
individuals, associations, corporations,
institutions and the nation-state (Danug
& Campanilla , p.83)
Globalization

It is also defined as the process through

which an increasingly flow of ideas, people,
goods and services, technology and capital
leads to the integration of economics and
societies at a speed unprecedented in effect
and outcomes.
(as cited by Danug& Campanilla, 2004,
p.81).
 Globalization -In the context of economics

 it is defined as the recognition by organizations that business

must have a global, not local focus. It refers to a new
perspective or attitude about relationships with other people
in other nations.
 Economically, it also refers to the unprecedented scope,
shape, number and complexity of business relationship
conducted across international boundaries.
 The phenomenon of globalization according to Stoner et
al.(1995) as cited by Abelos, et al. (2016) consists of three
interrelated factors –
 proximity, location and attitude
.
The Interrelated Factors as Discussed in the
Three Facets of Globalization
Proximity
First, organizations now operate in much closer proximity
than ever before to a greater number and range of
customers, competitors, suppliers, and government
regulators.
This proximity, a function of the “shrinking globe,” is partly a
matter of time, as today’s telecommunications technology
allows people around the world to share voice, video, and
facsimile information in minutes.
 Cont’d-Three Facets of Globalization

2. Location
Second, the location and integration of an
organization’s operations across several international
boundaries is part of globalization.
3. Attitude
Third, globalization refers to a new, open behavior
about practicing management internationally. This
attitude combines a curiosity about the world outside
one’s national borders with a willingness to develop the
capabilities for participating in the global economy.
 How Governments Influence
Competitiveness
 According to Young (1995 as cited by Abelos et.al, 2006), he
concluded that both government and business need to place a
higher priority on international competitiveness.
 Among specific recommendations, he suggested that responsibility
for formulating international trade policy and encouraging exports
(now fragmented among multiple government agencies) should be
unified.
 Global managers thus operate in a climate marked by more
aggressive government efforts to influence how they run their
organizations. According to Porter (1990), those efforts have
influenced global competitiveness.
How Governments Influence
Competitiveness
With striking regularity, firms from one or two
nations achieve disproportionate worldwide
success in particular industries.
Some national governments seem more
stimulating to advancement and progress than
others.
Porter traces that success to a significant
degree, to the economic climate institutions,
and policies attributable to government actions.
Globalization and Competitiveness
The term competitiveness is viewed as an idea that
applies in a number of different settings.
 It refers to the relative standing of one competitor
against other competitors.
 Competitiveness is like the game of the musical
chairs.
 There are finite numbers of places to sit, and some
are more desirable than others.
Measuring Globalization

There are many alternatives on how to

measure globalization per country in the
world.
The KOF Swiss Economic Institute offers a useful
ranking into three broad categories as follows:
1. Economic globalization- measures long
distance flow of goods, capital, and services as
well as information and perception that
company market exchanges.
 Measures of Globalization
2. Social globalization- measures the spread of ideas,
information, images and people.
3. Political globalization-measures the diffusion of
government policies in terms of the number of
embassies and consulates in a country, membership in
international organization, likewise participation of a
country in United Nations peace missions and similar
advocates.