Chapter Seven

Globalization, Liberalization, Privatization and Deregulation

The objectives of this lesson are:

To enable the students to know about the meaning,
definition ,types ,and nature of globalization.
To know the triggering factors the current development of
globalization
To understand the advantages and disadvantages of
globalization
Liberalizations in international economy and in
international marketing.
Privatization and Deregulation
Meaning and definition of globalization
Globalization means the speedup of movements and
exchanges (of human beings, goods, and services, capital,
technologies and cultural practices) all over the world.
Official definition of “globalization” is the process by which
businesses or other organizations develop international
influence or start operating on an international scale.
Globalization we mean opening up of the economy for
world market by attaining international competitiveness.
Globalization of the economy simply indicates interaction
of the country relating to production, trading and financial
transactions with the developed industrialized countries of
the world.
• The capitalist philosophy that leads to the
Shrinking of the world in economic terms and
forming of a small village.
 def…

Globalization ’ refers to the emergence of a

system into an international network.
 Def..

According to Sociologist Martin AL brow., Globalization can

be defined as any process of incorporating people into a
single world.
 def.…
Globalizations have four parameters:
(a) Permitting free flow of goods by removing or reducing
trade barriers between the countries,
(b) Creating environment for flow of capital between the
countries,
(c) Allowing free flow in technology transfer and
(d) Creating environment for free movement of labor between
the countries of the world.
Three main types of globalization
1. Economic Globalization
2. Cultural Globalization
3. Political Globalization
 Economic Globalization
Economic globalization in almost every part of the world
today.
According to one of the features of current globalization the
world is a united economy
Therefore, there are giant economies which play a major role
in the development of all economies of the world.
  Cultural Globalization

 Another great example of globalization is the so- called cultural

globalization.
 It is the transmission of ideas and cultures around the globe.
 The main reason is the circulation of cultures.
 This phenomenon creates an intercultural communication which
allows the creation of a brand new world.
  Political Globalization

 One of the main targets for people who detest globalization is the
political globalization.
 They strongly believe that political globalization means a united
government controlled by few.
 The globalization processes in politics has the tendency of hitting
the world with global democracy.
 it is necessary to understand and comply with the global trends of
There are a number of reasons for the current
development of globalization among such
some of them are listed here:

 Improvement in the transportation technology

 Improvement in the communication technology

 Rise of transnational corporations.

Improvement in the transportation technology
 Improvement in communication
The development of new
technologies of
communication can be
cause for the current
development of
globalization .
The Zoom meeting (conference) great renaissance dam
issue between the nations )
Rise of transnational corporations
Transnational corporation" means a for-profit
enterprise marked by following two basic characteristics:
 it engages in enough business activities -- including
sales, distribution, extraction, manufacturing, and
Research and development – outside the home country
Examples of transnational corporations include:
 Shell.
Shell petrol station in the UK.
 McDonald's. McDonalds in Kazan, Russia.

 Vodafone. Vodafone advert in Kumily, India.

 Coca Cola. Coca Cola advert in Kabul, Afghanistan.

The rise transnational corporations
Shell. Shell petrol station in the UK is an • McDonald's. McDonalds in Kazan,
example of transnational corporation Russia.

Coca Cola. Coca Cola advert in Kabul,

Afghanistan
Top 5 key features of
globalization
1 Access to the world markets
One of the key features of present-day globalization is
access to the world markets.
This has been made possible by globalization.
Global consumers demand world-class variation and
quality of products.
2. Global products standardization
Product standardization: is the process of setting generally
uniform characteristics for a particular good or service to all
over the world.
If the quality of your goods and services are low, you will be kicked
out of the market.
If you want to reach the markets all over the world, you will need
to be able to satisfy the standards of the global market.
3. Sharing of ideas
Globalization provides an interesting concept of sharing ideas;
All citizen today say thanks to technology b/c they equal share idea,
and world is shrinking into a small village.
This is also how different variations of rock, pop, and rap cultures
appear in the world.
The fact that this ideas are worth sharing makes globalization a good
accelerator for spreading them.
4 Raising standards
Globalization does not only increase the standards and
quality of products, but the quality of life itself.
More and more people have increased their living
standards due to global trends.
The citizens of one country can see how other people
live in the world and adapt the good ideas, that way they
can also demand an increase in the standard of living in
their countries.
5. Freedom standards
Globalization results in the spreading of freedom standards.
This includes the freedom of speech and human rights.
The Advantages of Globalization
Globalization impacts businesses in many different ways.
 Globalization allows us to share all there resource
together.
 Globalization reduce labor exploitation issues.
 Globalization reduces the prospects of tyranny (unfair use f
power of authority).
As the world moved slowly toward globalization in the 20th century,
the nations realized that having a concentrated power with one
administration reduced the likelihood of tyranny in pockets around
the globe.
 Globalization would remove tax for wealthy individuals,
businesses and essential product
 Globalization would help the developing world progress
faster.
 adv.t cont…….
Globalization encourages free trade.
Globalization could create more employment
opportunities.
Lower Costs for Products
Globalization allows companies to find lower-cost ways to
produce their products.
Higher Standards of Living across the Globe
Developing nations experience an improved standard of
living—thanks to globalization.
Disadvantages of Globalization
Globalization benefits the wealthy more than the
poor
Unless borders are completely removed, the advantages
of globalization are challenging to achieve.
Globalization would encourage disease transfer
Over 90% of some population centers died because of
their exposure to smallpox, chickenpox, and other
diseases that the Europeans were somewhat immune
to at the time.
 Globalization would create anew system of politics
The individuals and organizations who spend the most to lobby
politicians would receive the best chance of having their needs
met first.
This would translate to a global economy, where only the
richest and most influential would influence laws which would
impact everyone.
 Globalization would not prevent resource consumption.
The goal of globalization is to equalize patterns of consumption for
populations around the world. Even though there would be
movement toward doing so, there is no getting around the fact that
the wealthiest nations will still consume the most resources.
The 20 richest countries in the world today consume almost 90% of
the planet’s resources each year. The United States constitutes 5% of
the global population right now, but it consumes 24% of the world’s
energy as a country.
Globalization changes how humans would identify
themselves.
Humans are global citizens in some ways already.
 We all share the same planet, after all, so we are united with
that common ground.
 If we lose borders, however, we also lose a piece of our
culture, ethnicity, or family heritage
Globalization would negatively impact the environmen
t
Greenhouse gas emissions rose in 2018 despite efforts to
curtail them.
Micro-plastics invaded our oceans, creating negative impacts
on marine life.
The waters of our planet are slowly acidifying, creating
economic and health impacts every day.
 Reading Assignment
Liberalizations in international economy and in
international marketing.
Privatization & Deregulation.

The End.