Globalization 4.

Global Supply Chain – Companies source out

components and raw materials from various
Globalization – refers to expansion and intensification of countries leading to complex supply chain
social relations and conciousness across world time and network.
world-space. Manfred Steger.

- Establishment of global village – mass media to

connect social media technology to others The Structures of Globalization
- Shrinking world (breaking boundaries) – free 3 Components of Economic Globalization
trade of import and export
Academic Literature commonly subdivides Globalization
- Cultural imperialism
into three (3) major areas:
- Adoption of other cultures
a. Economic Globalization
Globality – the belief that all people are part of a single b. Cultural Globalization
community, and that national boundaries should be c. Political Globalization
minimized. Concept of Globality was introduced by Rolan
Robertson. - sense of belongingness. e.g.
Olympics/Earth Day Economy

Globalism – the pre-cursor to Globalism is the idea of
conceiving of the world. (Able to think about people and
nation beyond our own borders).
Globalization is the process by which we start to act on
Globalism.
The process or system by which goods and services are
produced, sold, and bought in a country or region.
The wealth and resources of a country or region,
especially in terms of the production and consumption of
goods and services.

Cultural Imperialism – the process of forcing the culture Economic Globalization

of a dominant group on another community/country.
It refers to the widespread international movements of
Influence of one culture over another, often through
goods, capital, services, technology and information.
political, economic, or military power.
Economic Globalization primary comprises the
globalization of:
The Metaphor of Globalization
1. Finance
What is a metaphor? 2. Markets
3. Production
A metaphor is a figure of speech that describes an object 4. Technology
or action in a way that is not literally true, but helps 5. Organizational
explain an idea or make a comparison. 6. Regimes
7. Institutions
1. Solid – Today’s globalization paved way for 8. Corporations
people, things, information, and places over 9. Labours
time. They have limited mobility and their social
media relationships and objects remained
where and when they were created. In order to monitor the economy, three (3) economic
Example: institutions were created.
Natural: Landforms and bodies of water
Man-made: Borders/Great Wall of China 1. The International Monetary Fund (IMF) –
2. Liquid – refers to the increasing ease of would oversee the international monetary
movement of people, things, informations, and system
places in the contemporary world. (These are 2. The International Bank for Reconstruction
not fixed.) and Development (IBRD) that was later
named WORLD BANK. – would provide loans
Liquidity and solidity is in constant interaction. for European reconstructions but later
Liquidity is the one increasing today. Therefore, expanded its activities into the developing
the metaphor which we could be described world.
globalization today is – Liquidity 3. 3. The General Agreement on Tariffs and
Trade (then renamed WORLD TRADE
Liquidity Examples: ORGANIZATION in 1992) – would oversee
1. Informations, Transportations multilateral trade agreements
2. Business / Products / Trading
Types of Economic Systems
Dimensions of Globalization
Most people would assume that there must be hundreds
1. Free Trade – the reduction of trade barriers of different types of economies because of all the terms
such as tariffs, enabling the flow of goods and that get tossed around with regard to money, economics,
services among borders. and politics. People tend to mix economy, politics, and
2. Foreign Direct Investment (FDI) – ideology together. The truth is that there are only four
Transnational corporations invest in and types of economies
operate in multiple countries, creating a global
1. Traditional Economic System
web of economic connections.
2. Planned Economic System
3. Information, Communication, and
3. Market Economy
Technology – Facilitate the exchange of
4. Mixed Market Economy
information and services across the globe.

Traditional Economic System
The definition of a traditional economy is an economic
system that is based on a group's culture, geographic
location, traditions, and needs. There is no need or
desire to make profits. There isn't a monetary system in
traditional economies because goods and services are
bartered, or traded, for other things that are needed. The
hunter trades some of their catch for other food, clothing,
or goods. In a traditional economy, the answers to most
of the economic questions are answered by survival,
need, available resources, and climate.
Another important aspect of a traditional economy is its
lack of surpluses. Since every day in most traditional
economies is a fight for survival, it would be a waste of
labor and resources to produce more than the group
needs. This especially applies to food that can go to
waste if there is a surplus.
Traditional Economic System Example
It might seem like traditional economies are a thing of the
ancient past, but there are many examples of traditional
economies that are alive and well in modern times.
These economies are usually remote tribes or groups
that choose to continue their traditions. One example is
the Inuit Tribes that are found in the far northern reaches
of Alaska and Canada. These tribes exist in traditional
economies based on the resources available and the
climate. Most of their economy is based around hunting
and fishing because growing crops is nearly impossible
where the permafrost is present all year long.
Planned Economic System
Planned economic systems are economies that are built
and structured around a central power authority where
that authority makes all the decisions. Communism falls
into this type of economic system. The central power can
be a government, a small governing body, or a single
individual. Regardless of what form the central power
take, they make the rules. Communism is a primary
example of a planned economy in that the government
makes all business decisions and handles all factors of
production. In a communist country, the government
decides if you're going to college and chooses your field
of study; they can also designate you as a laborer. In this
type of economic system, you'd have very few free
choices.
Market Economies
A market economy is the opposite of a planned economy.
In a market economy, people decide on their own how to
utilize the factors of production. They can choose from
whom they buy, for whom they work, and what
businesses they own and operate. If you want to invest
your own capital or be an entrepreneur and start your
own company, you're free to do so. A market economy,
also known as a capitalistic or free market economy,
relies on capitalism, free enterprise, and freedom of
choice.
While the United States has a market economy in that its
citizens can usually make their own choices, such as
what they do with their resources, some of these choices
come with provisions. For example, in the United States,
Americans cannot buy certain products, like alcohol and
tobacco, unless they are of a certain age. Although
citizens of the United States can choose their carriers or
providers, they must purchase car insurance and health
insurance.
Mixed Market Economies
A country that utilizes both types of economic systems
has a mixed market economy. In a socialist economy,
people have some freedom of choice regarding how they
use the factors of production. They can decide what they
buy, for whom they work, and what they study in college.
In other areas, their choices may be mandated or
restricted, and the government plans selected industries.
However, some historically Communist countries, such
as China, have begun to allow privately owned
companies and free market purchases, thereby entering
into a mixed market economy.
The Global Economy
What is a global economy?
The global economy refers to the interconnected
worldwide economic activities that take place between
multiple countries. These economic activities can have
either a positive or negative impact on the countries
involved.
The global economy comprises several characteristics,
such as:
a. Globalization
b. International trade: International trade is
considered to be an impact of globalization. It
refers to the exchange of goods and services
between different countries, and it has also
helped countries to specialize in products which
they have a comparative advantage in. This is
an economic theory that refers to an economy's
ability to produce goods and services at a lower
opportunity cost than its trade partners.
c. International finance: Money can be
transferred at a faster rate between countries
compared to goods, services, and people;
making international finance one of the primary
features of a global economy.
d. Global investment: This refers to an
investment strategy that is not constrained by
geographical boundaries. Global investment
mainly takes place via foreign direct investment
(FDI).
What are the benefits of global economy?
There are numerous benefits of a global economy,
which include:
1. Free trade: Free trade is an excellent method
for countries to exchange goods and services.
It also allows countries to specialize in the
production of those goods in which they have a
comparative advantage.
2. Movement of labour: Increased migration of
the labour force is advantageous for the
recipient country as well as for the workers. If
a country is going through a phase of high
unemployment, workers can look for jobs in
other countries. This also helps in reducing
geographical inequality.
3. Increased economies of scale: The
specialization of goods production in most
countries has led to advantageous economic
factors such as lower average costs and lower
prices for customers.
4. Increased investment: Due to the presence of
global economy, it has become easier for
countries to attract short-term and long-term
investment. Investments in developing
countries go a long way in improving their
economies.
 Cultural Globalization
The idea of cultural globalization emerged in the late
1980s, but was diffused widely by Western academics
throughout the 1990s and early 2000s.
Have you ever been abroad? It doesn't matter whether
you went to Canada, Russia, or Thailand. You may have
noticed that every place has some things that are the
same as your hometown, such as fastfood restaurants
like McDonald's or Levi jeans being sold in a local store.
Cultural Globalization refers to the transmission of
ideas, meanings and values around the world in such a
way as to extend and intensify social relations.
Involves the formation of shared norms and knowledge
and also involves the spread of language, the arts, food,
business ideas, and technology, and therefore, its impact
is felt by almost everybody in the world.
What is Acculturation?
 The process by which an individual or group
adopts the practices and values of one culture
while still retaining their own culture of origin.
 Typically used in reference to a minority culture
adopting elements of a majority culture.
 However, it’s also a two-way process, since the
majority culture also adopts elements of the
minority culture(s).
Acculturation – To acculturate is to take on the culture
and norms of a society that is not your own, or is not
native to you. This is sometimes done when you move to
new place or country.
Enculturation – The process by which people learn the
requirements of their surrounding culture and acquire the
values and behaviors appropriate or necessary in that
culture.
Assimilation – Cultural assimilation refers to the process
in which a minority group or culture assumes the
behaviors, values, rituals, and beliefs of their host
nation’s majority group.
The term cultural assimilation is often used to describe
immigrants who have migrated to new locations;
however, it is also used to discuss Indigenous groups. As
a result, it comes in two forms:
a. Forced assimilation
b. Voluntary assimilation
Melting Pot Theory
Modern references to cultural assimilation state that it
occurs when minority groups take on the culture of the
majority group in order to integrate into society. Often,
you’ll hear people state that their country or city is a
“melting pot.”
What Does the Term "Melting Pot" Mean?
This melting pot theory is a common analogy used to
describe cultural assimilation. It is used to describe how
different cultures "melt" together to form a new culture.
While the melting pot theory can be applied to any
country, it is usually used to describe the American
context. As a result, the melting pot theory has become
synonymous with the process of Americanization.
While the melting pot theory suggests that people will
integrate into the dominant society, critics suggest that
this process harms diversity and leads to cultural loss.
Instead, some people promote the idea of
multiculturalism, utilizing metaphors such as a mosaic or
puzzle in which people are able to come together yet
retain their unique culture.
Forms of Cultural Assimilation
1. Voluntary Assimilation
This is when members of the minority group become
indistinguishable from those of the dominant group. This
form of assimilation occurs in stages or over the course
of generations. In this form, assimilation is usually easier
for the children of immigrants as they are either born,
socialized, or educated in the dominant culture from a
young age. It is important to remain mindful that
voluntary assimilation is often in response to pressure
from a more predominant culture, and conformity is a
solution for people to stay safe and survive.
2. Forced Assimilation
This is when a minority or Indigenous group is forced to
give up their cultural identity, language, norms, and
customs to fit into the dominant group. As a result, forced
assimilation tends to occur much quicker due to the
threat of violence. This process was conducted after an
area changed nationality after a war; however, it has had
other applications throughout history, such as the forced
assimilation and traumatization of Native Americans for
centuries, with residential schools operating as recently
as 1996.
Factors of Cultural Globalization
Factors that contribute to cultural globalization include
various means of communication, such as social
media, especially Western celebrities who reach an
audience of millions around the world with their opinions
on fashion or pictures of what the latest style of clothing
is.
Traditional media: such as television has established
regional branches throughout the world that helps impart
a Western, Eastern, or other worldview upon a new
geographic location.
For example: CNN and the BBC have their own
international alternatives that help further a Western
viewpoint on global issues.
Effects of Cultural Globalization
 Cultural Homogeneity, which refers to
worldwide cultures becoming similar.
 Western fastfood restaurants have become a
very common sight. (The effect of this may lead
to diverse cultures and languages losing their
unique stories, flavors, ideas, and other cultural
aspects in favor of today's more popular
Western culture.)
Cultural Homogenization
 Cultural Homogenization refers to the idea that
different cultures transform and become more
similar to each other as the globalization
progresses.
 Homogenization vs. Hybridization

Homogenization

 Homogenization refers to the increasing

similarity of cultures in a way that makes them
homogenous or unified.

Hybridization

 Hybridization refers to the interaction between

local cultures and global ones, which lead to
the transformation of mainstream cultures.

Example: Style of Dress

 Different cultures across the world have

different attires based on their traditions,
climate, religion and other factors. However, as
a result of cultural homogenization the ways
that people dress are increasingly looking
similar across the globe, with items like jeans
and t-shirts being widespread.

Effects of Cultural Globalization

Americanization, due to the U.S.'s sometimes

overwhelming media, film, and economic presence.

 The U.S. imparts its culture patterns onto more

places in the world than the other way around,
at least according to some.
 The effect of this may lead to diverse cultures
and languages losing their unique stories,
flavors, ideas, and other cultural aspects in
favor of today's more popular Western culture.

Political Globalization

 Politics – are the actions or activities concerned

and using power in a country/society
 Globalization – worldwide connections
 Political Globalization – refer to an increasing
trend toward the emergence of national and
international non-governmental organizations

Transnational Governing Bodies

1. United Nations (UN) (largest body)

2. European Union (EU)
3. World Trade Organizations (WTO)
4. North Atlantic Treaty Organization (NATO) –
(Soviet Union: Armenia, Azerbaijan, Belarus, Estonia,
Georgia, Kazakhstan, Kyrgyzstan, Latvia, Lithuania,
Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and
Uzbekistan)
5. World Health Organization (WHO)
6. Association of Southeast Asian Nations
(ASEAN)
7. United Nations International Children's
Emergency Fund (UNICEF)

The Impacts of PG:

A. Fairness about Free Trade

B. Job Opportunities
C. Promote Fairness among countries
D. Access to international aid and financial support
E. Combat Environmental Problems
F. Migration
G. International Organizations are often committed
to spread values like freedom – to fight abuses
within countries