Contemporary reviewer Globalization - Das and Bridi (2016) refers to globalization as intensified geographical movements across national borders of commodities, people seeking employment, money and capital investment, knowledge, cultural values, and environmental pollutants. - Interconnectedness Integration Connectivity The Global Policy Forum (GPF) explained globalization in various aspects. That is in terms of economy, politics, culture, and law: GLOBALIZATION OF THE ECONOMY Advances in communication and transportation technology, combined with free-market ideology, have given goods, services, and capital unprecedented mobility. GLOBALIZATION OF POLITICS With global ecological changes, an ever more integrated global economy, and other global trends, political activity increasingly occurs globally. GLOBALIZATION OF CULTURE The Internet, fax machines, satellites, and cable TV are sweeping away cultural boundaries. GLOBALIZATION OF LAW Globalization is changing the contours of law and creating new global legal institutions and norms. The International Criminal Court promises to bring to justice to public offenders based on a worldwide criminal code. ELEMENTS OF GLOBALIZATION Anderson & Van Wincoop (2002): Trade agreements – bilateral, regional, or multilateral economic arrangements designed to reduce or eliminate trade barriers. Capital flow – measurement of an increase or decrease in a nation’s domestic or foreign assets. Migration patterns – impact of labor market fluidity on production costs through the loss (emigration) or gain (immigration) of potential workers, especially those with particular skills. Immigration is the international movement of people to a destination country of which they are not natives or where they do not possess citizenship in order Migration - a person who moves away from his or her place of usual residence, whether within a country or across an international border, temporarily or permanently, and for a variety of reasons. Information transfer – communication trend that helps mitigate the asymmetric functioning of markets and economics. Spread of technology – rapid dispersion of the means and methods of producing goods and services TRENDS IN GLOBALIZATION (Nye & Donahue, 2002) Population trends – decreasing population in developed countries, increasing population in developing countries, and increased life expectancy. Science and technology – includes the Internet and other computer components. Increasing integration and interdependence – includes all areas of economic life as well as an increasing exchange of products and services across national borders through trade. Governance – how national and international laws govern the economic activity and transnational institutions. FOUR CORE OF GLOBALIZATION: (Steger, 2005) Globalization is about the liberalization and global integration of markets. This claim presents that globalization as an economic phenomenon has the essential qualities of liberalization and integration of global markets and the reduction of government interference in economic organization, free trade, and capital movements. The driving idea behind globalization is free-market capitalism. Globalization is inevitable and irreversible. With the spread of technological innovations in communication and the production of goods and services driving the market forces, it is quite impossible to evade the effects of globalization. Globalization benefits everyone The idea of globalization benefits everyone and is closely linked with economic prosperity. Globalization furthers the spread of democracy in the world. It is the powerful middle class and societal structure that facilitates democracy. INTERNATIONALIZATION, GLOBALIZATION AND GLOBALISM Internationalization refers to the increasing importance of international trade, international relations, treaties, alliances, etc. Globalization refers to global economic integration of formerly national economies into one global economy, mainly by free trade and free capital mobility, but also by easy or uncontrolled migration. The very word “integration” derives from “integer,” meaning one, complete, or whole. Integration is the act of combining into one whole. DISINTEGRATED To be re-integrated into the new whole THE GLOBALIZED ECONOMY “To make an omelette you have to break some eggs.” The disintegration of national egg is necessary to integrate the global omelette. Globalism refers to a state of the world involving networks of interdependence at multicontinental distances. FOUR DIMENSIONS OF GLOBALISM: (Keohane and Nye, 2000) Economic globalism – involves long distance of flows of goods, services, and capital, and the information and perceptions that accompany market exchange. Military globalism – refers to long-distance networks of interdependence, in which force, and the threat or promise of force are employed. Environmental globalism – refers to the long-distance transport of materials in the atmosphere and oceans or of biological substances such as pathogens or genetic materials that affect human health and wellbeing. Social and cultural globalism – involves movements of ideas, information, images, and of people – who carry ideas and information with them. Characteristics that led to the expansion of globalization There is an opening up to the world market of populous nations. Faster rate of dissemination of information More opportunities for the developing countries Technological innovation Digital technologies The process of globalization is the source of hope of our nation. Globalization Economic system do not automatically produce democracy The level of economic development is the source, produce societal structures of middle class. Middle class paved the way for democracy Globalization is simply the process through which there isintegration and interaction of countries, companies, and people across the globe. The process is as a result of the investment, outsourced manufacturing and international trade. All these are supported by information technology, with an aim of bringing economies of various countries together. Technology, goods, investments, information, and services along with the labor market are the most popular components of such activity. Nations have established worldwide integration over many centuries by enabling economic, political, and social partnerships. Advantages of Globalization Global Market It means encouraging nations to specialize and produceplenty of goods available in their local market. Different countries produce different products and what is most surprising there is no country which is self-sufficient. Some countries with developed economies don’t have enough raw materials for their factories, while the rest accumulate costs more than it should. Worldwide integration has led the way to cheap raw materials. Developed countries advertise for the low-income community to buy their products with compatible prices. They have also expanded by acquiring companies in developing countries, partnering and merging with others to reach out to a big market and produce cheaper goods due to the availability of materials and labor. Availability of cross-border market encourages companies from developed countries to create various goods because they have consumers worldwide. Cross-Cultural Management Each country has its own culture. Incorporating all cultures to form a global one is not easy. For instance, gender equality is not recognized in some legal systems, and they do not allow women to lead or engage in business. Before globalization, many countries would not allow females to acquire education, and even if they did, they were supposed to do jobs such as teaching or nursing. Competition Competition is a healthy way of doing business. Without it, companies would not pioneer someinnovations in cross-border trade. It is the main reason why the quality of goods and services improve as well as why the prices drop. Job Opportunity About 90 percent of the first-world population earns for living through employment. Initially, job opportunities were quite scarce, and everyone who graduated from college applied in a certain government sector, but most of them ended up working as a casual laborer in industries with a low income. Many students come out as entrepreneurs ready to grow their own business and create job opportunities for others. Globalization has brought diversification when students interact with foreigners. They exchange ideas on available job opportunities in different countries. As a result, the major standards of living have improved due to an extended labor market. Reducing the Gap between the Poor For many centuries there has been a wide gap between these groups, a gap that seemed to widen every year. Globalization enabled poor people to have access to job opportunities. The number of low-income people working as casual laborers has continued to decrease as most young people acquire education. These young, educated people perform multitasking jobs to get enough money to enable themselves and their family to live a decent life. Investments The population of developed countries prefers to invest money in profitable businesses rather than deposit it in banks. The reason is, they strive to earn for a living remotely because investments assure they will gain good profits without any efforts. Advanced Technology Advanced technologies are a result of globalization. A constant need for innovations appeared due to the lack of quick data transfer and public communication. Lots of inventors have tried to serve the needs of modern society by improving technology. Legal Effects Through globalization, people get to know what’s happening in other countries. Media services cover events which occur in other countries. Human rights have been improved as a result of globalization since media coverage on violations of the rights receives attention from all over the world. As a result, various turmoil could be solved by international mediators. Those who perform acts against human rights are arrested and sentenced by intergovernmental courts. Stable Security Although the effect cannot be seen directly, globalization has contributed greatly in enhancing the world security. For example, it is extremely difficult to see two countries attacking each other if the economy of one of the countries depends largely on the economy of the other country. Negative Effects of Globalization Terrorism It is a significant problem in most developed countries. Due to worldwide integration, people travel a lot. Lots of terrorists came to a foreign country with a worker visa having a hidden goal to perform a terrorist attack. Job Insecurity Before globalization, skilled people got employment in government sectors and companies where they received high salaries. Job opportunities were waiting for those who completed colleges and earned a degree. Price Instability Some people establish industries overseas where they get cheap raw materials and labor. They can cut production costs and sell their goods at a low price. Relating to competition, some high-quality products differ in prices. Price Fluctuations To withstand competition, Western countries are forced to reduce their product prices because countries such as China offer the same products at lower prices. The impact is adverse, as the ability to sustain social welfare in the US gets reduced. Environmental Damage Increased production means increased utilization of natural resources. Besides, increased trade results to increased transport, which uses fossil fuels. As a result, pollution has increased, leading to climate change.
