CONTEMPORARY

WORLD
 GLOBALIZATION
viewed as primarily an economic
process that affects the integration of
national products to the world
markets
refers to the continuing integration
of technological processes to many
countries and the uprising of business
from the developed, developing and
under develop countries.
refers to the development of global
or worldwide business activities,
competition and markets and the
increasing global interdependence of
national economies
the process by which the world,
previously isolated through physical
and technological distance, becomes
increasingly interconnected.
the process of intensification of
economic, political, social and
cultural relations across
international boundaries which
principally aimed at the
transcendental homogenization of
political and socio-economic
theory across the globe.
process of growing exchange,
interaction and integration between
people, governments and private
organizations across the globe.
International trade, capital flows,
migration, technological transfer
and cultural exchanges are some of
the typical manifestations of this
process
it represents the global
integration of international trade,
investment, information
technology and cultures
equated with progress and
economic growth and generally
supported.
the expansion (both the creation of
new social networks and the
multiplication of existing connections
that cut across traditional political,
economic, cultural , and geographic
boundaries) and intensification
(expansion , stretching and acceleration
of these networks)of social relations
and consciousness across world-time
and across world-space--Manfred Steger
 PHILOSOPHIES OF GLOBALIZATION

Globalization is about the Liberalization and Global

Integration of Markets.
This is anchored in the neo-liberal idea of the self-
regulating market as the normative basis for a future
global order. According to this, the vital functions of
the free market- its rationality and efficiency , as well
as its alleged ability to bring about greater social
integration and material progress -can only be
realized in a democratic society that values and
protects individual freedom. (Steger, 2005)
 Globalization is Inevitable and Irreversible

According to the market-globalist,

globalization reflects the spread of
irreversible market forces driven by
technological innovations that make the
global integration of national economies
inevitable.(Steger, 2005)
  Nobody is in Charge of Globalism

Globalization hinges on the classical liberal

concept of the “self-regulating market”.
According to Rebert Hormats (1998) vice
chairman of Goldman Sachs International,
the great beauty of globalization is that no
one is in control. The great beauty of
globalization is not controlled by any
individual, any government, any institution
(Steger, 2005).
Globalization benefits everyone in the long run.

This lies at the heart of market globalism

which is unpacked on in material terms
such as economic growth and prosperity.
In terms of the globalism concept, it taps
not only liberalism progressive worldview,
but also draws on the powerful socialist
vision of establishing economic paradise on
earth (Steger, 2005).
Globalization Furthers the Spread
of Democracy in the World

This links ‘globalization’ and ‘markets”

to the concept of democracy which
plays a significant role in liberalism ,
conservatism, and socialism. Globalist
tend to treat freedom, free markets,
free trade and democracy as
synonymous terms.
According to Francis Fukuyama (2000) ‘
there exist a clear correlation between
country’s level of economic development and
successful democracy”. Though it is true that
globalization and capital development do not
automatically create democracies, Fukuyama
believe that the “level of economic
development resulting from globalization is
conducive to the creation of complex civil
societies with a powerful middle class which
facilitates democracy”. (Steger, 2005:32)
MAJOR TYPES OF GLOBALIZATION
Financial
Economic
Technological
Political
Cultural
Ecological
sociological
 CHARACTERISTICS/FEATURES OF
GLOBALIZATION
An increase in imports and exports
Growing importance on MNCs
Increased foreign investments
Increased movement of labour
Increase in capital transfers across
national borders
Globalization of technology
Increased in tourism
Global interdependence
ELEMENTS OF GLOBALIZATION
A. GLOBALIZATION OF MARKETS

-refers to the merging of historically

distinct and separate national
markets into one huge global
marketplace
(Ex: same products offering
worldwide like McDonald’s,
Starbucks, Cars, Computer software)
 B. GLOBALIZATION OF PRODUCTION

-outsourcing (hiring other

companies to do some of their
work) of productive activities to
different suppliers results in the
creation of products that are
global in nature
C. FALLING BARRIERS TO TRADE AND
INVESTMENT

-A government imposed restriction on the free

international exchange of goods or services.

Trade barriers are generally classified as:

a. import policies reflected in tariffs and other

import charges, quotas, import licensing, customs
practices,
b. standards, testing, labelling, and various types of
certification
c. direct procurement by
government
d. subsidies for local exporters
e. lack of copyright protection
f. restrictions on franchising,
licensing, technology transfer
g. restrictions on foreign direct
investment
D. TECHNOLOGICAL INNOVATION

-technological changes have

achieved advances in
communication, information
processing, and transportation
technology, including the internet
 GLOBALIZATION PROS AND CONS

Economic globalization (PROS)

Cheaper prices for products and services

(more optimized supply chains)
Better availability of products and services
Easier access to capital and commodities
Increased competition which results to
decrease in prices of goods and services
Producers and retailers can diversify their
markets and contribute to economic growth
Better communication and transportation
Reduction in cultural barriers
economic globalization (CONS):
Some countries struggle to compete
Extractive behavior of some foreign
companies and investors in resource-rich
countries preventing economic
diversification
Strong bargaining power of multinational
companies vis-à-vis local governments
“Contagion effect” is more likely in times of
crises
Problems of “social dumping”
CULTURAL GLOBALIZATION
It refers to the process of transmission of values,
ideas, cultural and artistic expressions. In the era of the
Internet and fast communications people can interact
more easily with each other. Multiculturalism and
cosmopolitanism are to some extent manifestations of
cultural globalization. Communities are less insulated
than ever in history, even those who cannot travel can
have today a good understanding of other cultures and
meet virtually people from other parts of the world.
People change their views and lifestyle influenced by
global cultural and consumption trends.
cultural  globalization (PROS):
Access to new cultural products (art, entertainment,
education) 
Better understanding of foreign values and attitudes.
Less stereotyping and fewer misconceptions about
other people and cultures
Instant access to information from anywhere in the
world
Capacity to communicate and defend one’s values
and ideals globally
Customisation or adaptation of global cultural trends to
local environment (“mestisage”)
cultural globalization (CONS):
Spread of commodity-based consumer
culture    
Dangers of cultural homogenization
Westernization, cultural imperialism or
cultural colonialism
Some small cultures may lose their distinct
features
Dangerous or violent ideals can also spread
faster (note the international character of the
terror group IS)
POLITICAL GLOBALIZATION 
The political dimension is a newer feature of the
globalization debate, as over the last 30 years there
has been a rise in the influence and power of
international and regional institutions such as the
European Union (EU), Organization for Economic
Cooperation and Development (OECD), the United
Nations (UN), the World Trade Organization (WTO),
and the Association for Southeast Asian Nations
(ASEAN). These international and supranational actors
increasingly shape domestic politics.
political globalization (PROS):
Access to international aid and financial support
It contributes to world peace. It reduces risk of
invasions, more checks on big powers and
limitation on nationalism
International organizations are often committed
to spread values like freedom and to fight
abuses within countries
Smaller countries can work together and gain
more influence internationally
Governments can learn from each other
political globalization (CONS):
State sovereignty is reduced
The functioning of international and
supranational organizations is often not
“democratic” in terms of representation
and accountability
Big countries can shape decisions in
supranational organizations
Sometimes countries can veto decisions and
slow down decision making processes
Coordination is difficult and expensive
DISADVANTAGES OF GLOBALIZATION (GENERAL)

Free trade implies a greater risk of failure for

small, private or family-owned companies
competing in a global market. There is also a
digital divide because not all populations have
internet access. Some suggest that globalization
has created a concentration of information and
power in the hands of a small elite, and certain
groups have acquired resources and power that
exceed those of any single nation, posing new
threats to human rights on an international scale.
Standards of living have risen overall as
more third-world countries experience
industrialization. However, some politicians
argue that globalization is detrimental to the
middle class, and is causing increasing
economic and political polarization in the
United States. Outsourcing, where U.S.
companies transfer their facilities abroad to
lower labor costs and avoid negotiating with
unions, means workers in the United States
must now compete internationally for jobs.
Globalization has contributed to global warming,
climate change and the overuse of natural
resources. An increase in the demand for goods
has boosted manufacturing and
industrialization. Globalization has also increased
homogenization in countries. For example,
international chains, such as Starbucks, Nike
and The Gap, dominate commercial space in every
U.S. town and many towns in other nations.
Cultural exchange has been largely one-sided
because U.S. goods and culture have influenced
other countries more than those of any other
nation.