Unit 1: Introduction to Globalization
1.1 Globalization: A Contested Concept
The term globalization can be traced back to the 1940’s. Its explosive usage came during the 1990’s.
The twenty years later, millions of references to globalization was experienced in both virtual and printed
space.
Unfortunately, the bestsellers on the subject such as The of the Nation State by Kenichi Ohmae and
the Lexus and the Olive Tree have left their readers the impression that globalization was an inevitable
techno-economic juggernaut preaching capitalism and Western values through elimination of local
traditions and national cultures. The Global War on Terror showed the Americanization of the rest of the
world as US spearheaded the massive offense against the world known terrorists. As a result, many people
still have trouble recognizing globalization for what it is: the myriad forms of connectivity and flows linking
the local (and national) to the global—as well as the West to the East, and the North to the South
(Manfred:2013)
As an illustration of such a more practical understanding of globalization as a thickening ‘globallocal nexus’—or what some global studies scholars refer to as ‘glocalization’—let us consider the world’s
most popular sports event: The Football World Cup. First organized in 1930 by the International
Federation of Football Associations (FIFA), the event was soon seen as the ultimate national contest pitting
country against country in the relentless pursuit of patriotic glory. The World Cup has since been held
every four years (except for 1942 and 1946) in host countries located on all continents except Oceania.
Towards A Definition of Globalization
There are several connotations from different writers regarding the term globalization. Hence, we
better use the term globality to signify a social condition characterized by tight global economic, political,
cultural, and environmental interconnections and flows that make most of the currently existing borders
and boundaries irrelevant (Manfred: 2013).
The term globalization applies to a set of social processes that appear to transform our present
social condition of conventional nationality into one of globality. This does not mean that the national or
the local are becoming extinct or irrelevant. In fact, the national and local are changing their character as a
result of our movement towards globality. At its core, then, globalization is about shifting forms of human
contact. Indeed, any affirmation of globalization implies three assertions: first, that we are slowly leaving
behind the condition of modern nationality that gradually unfolded from the 18th century onwards;
second, that we are moving towards the new condition of postmodern globality; and, third, that we have
not yet reached it. Indeed, like ‘modernization’ and other verbal nouns that end in the suffix ‘-ization’, the
term ‘globalization’ suggests a sort of dynamism best captured by the notion of ‘development’ or ‘unfolding’
along discernible patterns.
Finally, let us adopt global imaginary as a concept referring to people’s growing consciousness of
global connectivity.
To argue that globalization constitutes a set of social processes enveloped by the rising global
imaginary that propel us towards the condition of globality, a movement towards more intense forms of
connectivity and integration.
There is a unique characteristic of social process that globalization involves with, a reason for
existing oppositions to the definition of the term globalization. This opposition is a result of the different
experiences from all around the globe which scholars have encountered. After all, globalization is an
uneven process, meaning that people living in various parts of the world are affected differently by this
gigantic transformation of social structures and cultural zones. Scholars not only hold different views with
regard to proper definitions of globalization, they also disagree on its scale, causation, chronology, impact,
trajectories, and policy outcomes.
The ancient Buddhist parable of the blind scholars and their encounter with the elephant helps to
illustrate the academic controversy over the nature and various dimensions of globalization. What is this
parable of the elephant? From Blind Men and the Elephant – A Poem by John Godfrey Saxe (1816-1887)
version (allaboutphilosophy.org):
It was six men of Indostan,
To learning much inclined,
Who went to see the Elephant
(Though all of them were blind),
That each by observation
Might satisfy his mind.
The First approach'd the Elephant,
And happening to fall
Against his broad and sturdy side,
At once began to bawl:
"God bless me! but the Elephant
Is very like a wall!"
The Second, feeling of the tusk,
Cried, -"Ho! what have we here
So very round and smooth and sharp?
To me 'tis mighty clear,
This wonder of an Elephant
Is very like a spear!"
The Third approach'd the animal,
And happening to take
The squirming trunk within his hands,
Thus boldly up and spake:
"I see," -quoth he- "the Elephant
Is very like a snake!"
The Fourth reached out an eager hand,
And felt about the knee:
"What most this wondrous beast is like
Is mighty plain," -quoth he,"'Tis clear enough the Elephant
Is very like a tree!"
The Fifth, who chanced to touch the ear,
Said- "E'en the blindest man
Can tell what this resembles most;
Deny the fact who can,
This marvel of an Elephant
Is very like a fan!"
The Sixth no sooner had begun
About the beast to grope,
Then, seizing on the swinging tail
That fell within his scope,
"I see," -quoth he,- "the Elephant
Is very like a rope!"
And so these men of Indostan
Disputed loud and long,
Each in his own opinion
Exceeding stiff and strong,
Though each was partly in the right,
And all were in the wrong!
Since their scholarly reputation was riding on the veracity of their respective findings, the blind men
eventually ended up arguing over the true nature of the elephant. If applied to different globalization
approaches, which only regard it as economic integration, or only marketing integration without
considering the other possible aspects of globalization like cultural, ecological, and political, then any
single-sided approach to globalization is wrong. Thus, the approach of globalization is plenary and over-all
inclusive.
Several Definitions
There are other definitions which we can consider like the following definitions of globalization:
Globalization can thus be defined 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, Former Director of the London School of Economics)
Globalization may be thought of as a process (or set of processes) which embodies a transformation
in the spatial organization of social relations and transactions—assessed in terms of their extensity,
intensity, velocity and impact—generating transcontinental or
interregional flows and networks of activity, interaction, and the exercise of power. (David Held, Professor
of Politics and International
Relations, Durham University)
Globalization as a concept refers both to the compression of the world and the intensification of
consciousness of the world as a whole. (Roland Robertson, Emeritus Professor of Sociology, University of
Aberdeen, Scotland)
These definitions point to four additional qualities or characteristics at the core of globalization.
First, it involves both the creation of new social networks and the multiplication of existing
connections that cut across traditional political, economic, cultural, and geographical boundaries. As we
have seen in the case of the Manny Pacquiao’s fights, today’s media combine conventional TV coverage
with multiple feeds into digital devices and networks that transcend nationally based services.
Second, the quality of globalization is reflected in the expansion and the stretching of social
relations, activities, and connections. Today’s financial markets reach around the globe, and electronic
trading occurs around the clock. A good example is the current trends of aggressive online selling and
buying through shopee, zalora, lazada and etc. One can place his investments with an investment bank
which allows the investor to monitor his investment online 24/7 and render a financial decision based on
his monitored activities.
Third, globalization involves the intensification and acceleration of social exchanges and activities.
As the Spanish sociologist Manuel Castells has pointed out, the creation of a global network society fuelled
by ‘communication power’ required a technological revolution—one that has been powered chiefly by the
rapid development of new information and communication technologies. For example, the present
pandemic has forced a transformation of the conventional classroom into a virtual platform such as what
we are doing right now with the use of canvas, google classroom, zoom. As have been noted in a certain
Asian country during this pandemic, a court judge in such country issued a guilty verdict through the use
of zoom since social distancing might be compromised if the actual court proceedings were required.
Sophisticated social networking by means of Facebook or Twitter has become a routine activity for more
than a billion people around the globe with the downside of fake news fast spreading.
Fourth, as we emphasized in our definition of the global imaginary, globalization processes do not
occur merely on an objective, material level but they also involve the subjective plane of human
consciousness. Without erasing local and national attachments, the compression of the world into a single
place has increasingly made global the frame of reference for human thought and action. Hence,
globalization involves both the macro-structures of a ‘global community’ and the micro-structures of
‘global personhood’.
If we allow a shorter definition of the term globalization then the following might suffice:
“Globalization refers to the expansion and intensification of social relations and consciousness
across world-time and world-space.”
We should consider an important objection raised by global studies scholars sensitive to historical
matters: Is globalization really all that different from the centuries-old process of modernization? Some
critics have responded to this question in the negative, contending that even a cursory look at history
suggests that there is not much that is new about contemporary globalization.
A New Phenomenon?
As important as technology is for the intensification of global connectivity, it provides only a partial
explanation for the latest wave of globalization since the 1980s. Yet, it would be foolish to deny that these
new innovations have played a crucial role in the compression of world-time and world space
(Manfred:2013). The Internet, in particular, has assumed a pivotal function in facilitating globalization
through the creation of the World Wide Web that connects billions of individuals, civil society associations,
and governments. Because of what is said above, it might be tempting to assume that indeed globalization
is a relatively new phenomenon. Is that really so?
We noted in the previous chapter the dynamic nature of globalization as a phenomenon. The global
expansion of social relations and the rise of the global imaginary are gradual processes with deep historical
roots. The engineers who developed personal computers and supersonic jet planes stand on the shoulders
of earlier innovators who created the steam engine, the cotton gin, the telegraph, the phonograph, the
telephone, the typewriter, and etc. That means, the mobile phone today which has gone through several
stages of revisions have its prototype in the old telephone set, while the desktop computer is an innovation
of the age-old typewriter we see today in some conventional offices and courtrooms. In order to
acknowledge the full historical record, we might reach back even further to such momentous technological
and social achievements as the production of paper, the development of writing, the invention of the
wheel, the domestication of wild plants and animals, the slow outward migration of our common African
ancestors, and, finally, the emergence of language at the dawn of human evolution.
So, we ask the question again, is globalization a new phenomenon?
The answer to the question of whether globalization constitutes a new phenomenon depends upon
how far we are willing to extend the web of causation that resulted in those recent technologies and social
arrangements that most people have come to associate with our buzzword. Some scholars consciously limit
the historical scope of globalization to the post-1989 era in order to capture its contemporary uniqueness.
Others are willing to extend this timeframe to include the ground-breaking developments of the last two
centuries. Still others argue that globalization really represents the continuation and extension of complex
processes that began with the emergence of modernity and the capitalist world system in the 1500s. And
a few remaining researchers refuse to confine globalization to time periods measured in mere decades or
centuries. Rather, they suggest that these processes have been unfolding for millennia (Manfred:2013).
The advocates of the first approach have marshalled impressive evidence for their view that the
dramatic expansion and acceleration of global exchanges since the 1980s represents a quantum leap in the
history of globalization. The proponents of the second view correctly emphasize the tight connection
between contemporary forms of globalization and the explosion of technology known as the Industrial
Revolution. The representatives of the third perspective rightly point to the significance of the time-space
compression that occurred in the 16th century when Eurasia, Africa, and the Americas first became
connected by enduring trade routes. Finally, the advocates of the fourth approach advance a rather sensible
argument when they insist that any truly comprehensive account of globalization falls short without the
incorporation of ancient developments and enduring dynamics into our planetary history.
General Overview of Globalization
Globalization can initially be described as the integration of national economies into the
international economy through trade, direct foreign investment, short term capital flows, international
flows of workers and humanity generally, and flows of technology according to Bhagwati.
What is it about? Globalization can be about worldwide integration and deepening of economic
activities; integration of production and consumption systems; IT revolution, liberalization, deregulation;
mobility of goods, services, capital and people; and interdependence of strong trade associations like the
EU (European Union), NAFTA (National American Free Trade Agreement), and BRICS (Brazil, Russia, India,
China, and South Africa).
Globalization is very broad in its extent of coverage of activities which encompass
internationalization (about trade & investment); liberalization (freeing markets in contradiction to
protectionism principle); universalization (promotion of cultural interchange); westernization (the
prevalence of western cultural dominance); and deterritorialization (the process of compressing time and
space).
With regards to consumption and production, globalization classified it into the following such as:
1. Globalization of consumption.
The nation in which a product was made becomes independent of the nationality of the consumer.
In other words, the said product acquires a global status because it is already being patronized and
consumed in a foreign land.
2. Globalization of production/ownership
The nationality of the owner and controller of productive assets is independent of the nation
housing them. For example, a lot of American brands are now mostly produced in Asian countries like Ford
cars produced in Indonesia or China. Also the Airbus Consortium where the product is jointly owned by
several countries like France, Germany, Britain, and Spain. It is said the wings are from Britain, the Fuselage
and tail from Germany, the doors from Spain, and the cockpit and final assembly from France.
The integration of economies can increase the reliance of different economies on each other like the
cases of trading blocs, improve the presence of opportunities to buy and sell in any country in the world
particularly through online transactions, create opportunities for labor and capital to be located anywhere
in the world which is commonly known now as global resource allocation, and potential growth of global
financial markets wherein stock markets become accessible from anywhere in the world.
There are several factors which contribute to a successful integration of economies of today such as the
following:
1.
2.
3.
4.
5.
6.
Technology
Communication networks
Internet access
Growth of economic cooperation like trading blocs such as EU, NAFTA, BRICS
Collapse of communism
Movement to free trade
What are the benefits of global trading today?
In the present world, globalization has posed so much challenge to all economies from the
peripheral to the core. But there are also several benefits in global trading. We can strike a balance on both
the advantages and disadvantages of global trading by considering both the said advantages and
disadvantages. The advantages of global trading are:
1. Increased choice
2. Greater potential for growth
3. Increase international economies of scale (i.e. there is an increasing degree of output even with a
decreasing amount of input without sacrificing its quality of production or simply increasing level of
efficiency)
4. Greater employment opportunities (i.e. any economy will have lower propensity of unemployment
issues provided its human resource are well-equipped and highly trained to perform work)
There are also disadvantages of global trading like the following:
1. Increase in gap between the rich and the poor (particularly in densely populated economies where the
majority are not employable nor productive)
2. Dominance of global trade by the rich, northern hemisphere countries (i.e. global divide of the North
and the South)
3. Lack of opportunities for the poor to be able to have access to markets
4. Exploitation of workers and growers (i.e. increasing cases of unfair labor practices upon the vulnerable
members of poorer nations which include the issues of child labor and under employment).
As a result of integration of economies, created huge opportunities for several corporate entities to
expand operations by means of Foreign Direct Investment (FDI) in other economies usually in the forms
of establishing a subsidiary or associate in a foreign country which also includes not just capital transfer,
but also provisions of management and technology. This whole process is known here as corporate
expansion which is manifested in the existence of a multinational or trans-national (MNCs or TNCs) whose
headquarters are in one country but with business operations in other countries.
The following are key characteristics of Corporate Expansion:
1. Expanding revenue
2. Lowering costs
3. Sourcing new materials
4. Controlling key supplies (may be a key reason for global expansion)
5. Control of processing
6. Global economies of scale
In view of corporate expansion, there are several oppositions to the global operations due to this
so-called corporate domination. This corporate domination, in most respects, has become the edge of
leading brands in both the local and global markets. For example, if the leading brand for pickup trucks
today is Ford, then it has corporate domination in the pickup truck category in the market which can
explain the reason why it has a very high sales volume in comparison to its competitors in the global
market. Anti-globalist view this as a negative point. In fact, anti-globalist outlined some of the issues which
corporate domination brings such as:
1. Damage to the environment
2. Exploitation of labor
3. Monopoly power
4. Economic degradation (particularly of the smaller companies by the huge competitive companies)
5. Non-renewable resources (particularly in the mining industry where resources are depletable)
6. Damage to cultures (particularly the emergence of the western culture as a superior culture, the
propagation of pornography, and etc.)
Other globalists contend by saying the there are five aspects of globalization such as:
1. Economic
2. Technological
3. Cultural
4. Political
5. Military
Economic Globalization.
Economic globalization has its early origins from the early capitalistic ideas of the Free Market
Economy of Adam Smith who supported the freedom of markets from state control. Also, another capitalist
idea is the need for division of labor in order to achieve efficiency of work. And the last of these ideas is the
free competition concept.
It is also here that trading blocs were formed like the EU, BRICS, and NAFTA because they believe
that economic globalization allows them to integrate their economies.
Technological Globalization.
If technology of today has not yet been invented, then globalization efforts would still be so in vain.
With the use of the present technology, doing business even during a pandemic is still possible through the
use of computers.
Cultural Globalization.
The globalization of culture is the reason why K-Pop culture has proliferated. At the outset,
globalization of culture tolerates all other cultures to be integrated. However, later a dominant western
culture will prevail. This is known as cultural imperialism. Cultural imperialism can result in dominance of
one culture over others. Example preference of Filipinos for MacDonald’s, Disneyland, and Starbucks
instead of local products, services and tourist destinations.
Political Globalization.
Obviously, the UN is in place in order to exhibit a preview of a world government which up to this
time does not really carry a strong political will. Despite the lack of political will of the UN, all member
nations recognize the legitimacy of the said organization except that it is not considered a global
government in place. It must also be noted that even if the UN is performing a function of peace-keeping, it
is not part of its own charter. So, what is political globalization about? It is not about a global government,
but it’s about allowing and facilitating democratic players in society based on Western cosmopolitan ideals,
international legal arrangements, and a web of expanding linkages between various governmental and
non-governmental organizations.
Military Globalization.
Leading economies are campaigning for demilitarization as early as the 1980s. However, some
nations today are competing globally with a showcase of its nuclear weapons. A good example here is the
unrivalled efforts of North Korea in its military programs which include the use of Weapons of Mass
Destruction just to be counted in a world leader in weaponry.