CONTEMPORARY WORLD

MR. ANDREW N. DELA VEGA, JD

CONCEPT OF GLOBALIZATION

Globalization – is the increasing interaction of people, states, or countries through

the growth of international flow of money, ideas, and culture. Thus globalization is
primarily focused on economic process of integration that has social and cultural
aspects.

It is the interconnectedness of people and business across the world that eventually
lead to global, cultural, political and economic integration

It is the ability to move and communicate easily with others all over the world in
order to conduct business internationally.
Globalization
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Globalization

It is the free movement of goods, services, and people across the world
in a seamless and integrated manner.

It is the liberalization of countries of their impact protocols and welcome

foreign investment into sectors that are the mainstays of its economy

It refers to countries acting like magnets attracting global capital by

opening up their economies to multinational corporations.
Globalization as defined by other Authors
“Globalization as process by which the people of the world are incorporated into a
single world society.” – Martin Albrow

“Globalization as the intensification of worldwide social relations which link distant

localities in such a way that local happenings are shaped by events occurring
many miles away and vice versa”. – Anthony Giddens

“Globalization as the compression of the world and intensification of the

consciousness of the world as a whole. – (The consequence of Modernity)
Characteristics of Globalization

There is social mobility of movement of people regardless of reason.

There is an intensification of interactions

It’s an active process

Borderless interaction

Spread of ideas, knowledge, technology, culture, religion, etc.

 Historical Foundation of the term “Globalization”

1. BEFORE THE AGE OF DISCOVERY

2. AGE OF DISCOVERY

3. 1820’S

4. 1900’S

5. 20TH CENTURY
 Indicators of Globalization

Interdependence of countries in different social aspects

Advancement of science, technology etc.

Environmental issues across borders

Economic globalization, cultural globalization, and political globalization

 Nature of Globalization

The units respond to some common strategy. Product presence is in

different markets of the world. Human resources are highly diverse.
Transactions involving intellectual properties such as copyrights, patents,
trademarks, and process technologies are across the globe.
 Reasons for Globalization

Rapid shrinking of time and distance across the globe. One can easily cross the
bridge going to the other side of the market place due to the advance tools of
technology than before.

Domestic markets are no longer rich as a consequence of many interlocking

factors.

Companies and institutions go global to find political and economic stability which
is relatively good in other countries than the country of origin.
 Reasons for Globalization

To get technological and managerial know-how of other countries due to their

advancement in science, technology, education, health and other fields of
discipline.

To reduce high transportation costs if one goes globally using the advance tools
of communication and information.

To be close to raw materials and to markets for their finished products which are
not available in the country of origin.
 Reasons for Globalization

The creation of the World Trade Organization (WTO) had made it

possible in stimulating increased cross border trade. There are other
world bodies like the UN and several arbitration bodies where countries
agree.
Reasons of Globalization

Stage 1. The first stage is the arm’s length service activity of an essentially
domestic company/institution which moves into new market overseas by linking
up with local dealers and distributors.

Stage 2. In this stage, the company/institution takes over these activities on its
own.

Stage 3. In this stage, domestic-based company institution begins to carry out its
own manufacturing marketing and sales in key foreign markets.
Stages…

Stage 4. In this stage, the company/institution moves to a full insider position in

these markets supported by a complete business system including research and
development (R&D) and engineering however, the headquarters mentality
continuous to dominate.

Stage 5. In this stage, the company/institution moves towards a genuinely global

mode of operation. In this stage, global localization happens, that is the company
institution serves local customers in markets around the globe responding to their
needs.