GLOBALIZATION

Globalització
 GLOBALIZATION
● Globalization is a large-scale economic, technological, social and
cultural process, which consists of increasing communication and
interdependence among the different countries of the unified world
of markets, societies and cultures, through a series of social,
economic and political transformations that give them a global
character..
● Process developed basically on the economic side, consisting of
the increasing integration of national economies into a single world
market economy, favored by deregulation (ending of rules and
measures that regulate economic relations within and between
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states; liberalization of transport, communications, finance,

agriculture, etc, ...)
● "Constitution" of a single world market (delocalization,
desectoralization, etc.), ...)
 Financialization of economics
● The term "financialization" refers, in general, to the
increasing importance of financial capital in the functioning
of the economy. Financial activity is not only expanding at a
dizzying pace, but also altering its composition in terms of
markets, products and protagonists.

● Over the past few decades, the financial sector has grown
dramatically to dominate the economy.
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● The volume of money currently being moved in the financial

sector is estimated to be about 60 times the world's GDP!!!!
 Characteristics of globalization
⚫ Once local, now global issues
◼ Demographics, urbanization, economy, poverty, social imbalances,
resources, land use, climate,…
⚫ Interdependence human actions - environment
◼ Until now, human influence on the environment has been local in
scale and small in scale.
◼ In the last half-century, humans have had the capacity to modify the
environment on a global scale.
⚫ Interdependence between different parts of the world
The lives of individuals in any part of the world depend on actions or
inactions in other parts of the world.
◼ The sovereignty of nations or states is increasingly (implicitly)
limited.
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◼ The work of individuals

◼ Local economies
◼ Pollution and its effects,......
● Speed of change
● Complexity
Speed + complexity  Uncertainty
 Key elements of globalisation

⚫ Technology

■ Transport (mobility of goods and people)

■ Communication (immediate and global communication)

• A lot of information available

– Almost free access to any information

Information no longer has borders
– Available to many people. For everyone?
– Available  assimilated, used
– Unstructured information
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– Truthful or manipulated information?

–
Information  knowledge, knowledge, culture
 Key elements of globalisation

● Technology

■ From production
• Overcrowded and at a very accelerated pace.
Automation, robotics, computer science, etc.
• Segmentable
• Remotely controlled
• Speed in the transport of goods
• Externalities
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• Delocalization, relocation
 Segmentation and relocation of industry

Example
The equipment of an ice hockey precision team
● Design in Sweden
● Funding in Canada
● Assembly in the USA (Cleveland) and Denmark
● Molecular structure of external aleation investigated in
Delaware (USA) and manufactured in Japan
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● UK advertising campaign
● Distribution in North America and Europe
 Production technology

Consequences
● Liberation of physical human work  quality of life
● Search for the cheapest human capital  relocation
● Unemployment  social implications
● Domain of multinationals  loss of local power
● Homogenization of production  also of
consumption
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● Environmental impact
● Great benefits  Imbalances
 Consequences of globalization

• Affects every country on the planet

• Many countries do not share in the benefits:
there are about 30 rich ("developed") countries,
30 countries trying to get closer ("emerging") and
130 poor ("developing") countries.
• The global market has a fundamental role to
play in the globalization process.
Globalització
 Main actors
•UN. What most resembles a world government since 1945. It is
controlled by the USA (and the other 4 permanent members of its
Security Council: Russia, United Kingdom, France and China, winners
of the 2GM) www.un.org
•World Bank. International financing body. It has 186 members.
https://www.worldbank.org
•International Monetary Fund (IMF). Intergovernmental institution
made up of 186 countries. It is responsible for supervising and directing
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the world's macroeconomic policies. www.imf.org

•World Economic Forum The World Economic Forum meets at least
annually in Davos (Switzerland). https://es.weforum.org/
 Main actors
• G-8. Group of the seven "wealthiest" countries (in 1976) in the world
(United States, Japan, France, United Kingdom, Germany, Canada,
and Italy) plus Russia (politically and, above all, militarily important).
They meet annually to discuss economic issues (approximately 14% of
the world's population and 60% of the GDP).

• G-20 Group of economy ministers and central bank governors from

19 major countries plus the EU. They represent 85% of the global GDP
and 66% of the population. They are the members of the G-8 plus
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Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Saudi

Arabia, South Africa, South Korea, and Turkey. www.g20.org
 Main actors
• OECD. Organization for Cooperation and Development. Dedicated to
developing economic studies. www.oecd.org
• WTO. World Trade Organization. Founded in 1995, it is made up of
153 countries, in principle all with the same rights; in practice,
agreements are reached when the European Union, the United States,
Canada and Japan join. www.wto.org
• ATTAC. Association for the imposition of a fee that taxes speculative
financial transactions, known as the Tobin Tax. www.attac.org,
https://attac.es/
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• Porto Alegre. City of Brazil, in January 2001 hosted the first World
Social Forum as an alternative to the World Economic Forum in Davos
https://join.wsforum.net/