4 PICS 1 WORD __ __ O __ __ L __ Z __ __ __ __ N 4 PICS 1 WORD GLOBALIZATION INTRODUCTION TO GLOBALIZATION REPORTERS: Krishia Belle Cambalon Jolly Val Bitanghol Pamela Donayre Jenny Alute Roda Sajut LEARNING OBJECTIVES After studying the unit, the students should be able to: ❑ Synthesize the definitions of globalization by the different authorities; ❑ Explain the different attributes or characteristics of globalization; ❑ Trace the historical periods of globalization; ❑ Identify the different dimensions of globalization; and ❑ Expound the major ideological claims of advocates of globalism. GLOBALIZATION CONCEPTS, MEANINGS, FEATURES, AND DIMENSIONS ▪ Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. ▪ This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world. ▪ Globalization is about growing worldwide connectivity. EXAMPLE: People are engaged in buying and selling from other places in far-away lands like the famed Silk Road across Central Asia that connected China and Europe during the Middle Age for thousands of years and they also invested in enterprises in other countries for centuries. There were similarities in features of those prevailing wave of globalization before the outbreak of the First World War in 1914 to the current wave. There is an increase cross bordertrade, investment, and migration due to policy and technical developments in the past few decades. It is in the area of economic development that observers believe the world has entered a new phase. Today’s globalization is farther, faster, cheaper, and deeper in compared to earlier wave of globalization. EXAMPLE Since 1950, the volume of world trade has increased by 20 times and from 1997 to 1999, flows of foreign investment nearly doubled from $468 billion to $827 domestically. • Taking advantage of new opportunities in foreign markets, corporations have built foreign factories and established production and marketing arrangements with foreign partners. • A defining feature of globalization would be it is an international industrial and financial business structure. • One principal driver of globalization is technology. • Economic life is dramatically transformed by advancement in information technology. • All sorts of individual economic actors like consumers, investors, and businesses which are valuable new tools for identifying and pursuing economic opportunities, including faster and more informed analyses of economic trends around the world, easy transfers of assets, and collaboration with far-flung partners are provided by information technologies. Globalization is an expansion, and intensification of social relations and consciousness across world time and world space. It is about growing worldwide connectivity according to Steger. ATTRIBUTES, QUALITIES OR CHARACTERISTICS OF GLOBALIZATION CHARACTERISTICS OF GLOBALIZATION This concept has enabled economies of scale for companies in production and distribution. It has also encouraged outsourcing and technology transfer among companies and countries, thus increasing their interdependence on each other. FREE TRADE ● Globalization has helped improve trade volumes between nations with minimal interference. The reason is that governments are not micromanaging every minute aspect of business transactions. The Gross Domestic Product (GDP) of countries that have accepted globalization has also increased significantly, thus bringing in greater prosperity. It has also resulted in better cooperation between governments that leads to further improvement in trade. LIBERALIZATION ▪ One of the main characteristics of globalization is the improvement in the business climate for corporations. It has helped entrepreneurs to set up businesses and transact both within and outside the country. ▪ The rules and regulations for companies are relaxed significantly to allow for more trade between nations due to globalization. ▪ Flexibility in trade regulations pushes governments to make further concessions to industries. Both Liberalization and Globalization are dependent on each other. INCREASE IN EMPLOYMENT ● Every industry is responsible for generating both direct and indirect jobs. And when production increases, it has a positive effect on employment. ● Globalization helps companies increase their production capacity and setup operations in different parts of the world. It also helps boost work opportunities in countries where these corporations have set up operations. INCREASED CONNECTIVITY BETWEEN NATIONS ● ● Globalization has helped countries improve trade relations with each other. It has increased interaction between people and businesses. Better connectivity also boosts a country’s economy and enhances the standard of living for its citizens. INTERDEPENDENCE ● With the advent of globalization, countries have become more reliant on each other. ● Businesses get the opportunity to import cheaper raw materials to produce their commodities. They are also being allowed to export to countries that have more demand for their finished goods. It has helped reduce trading barriers and build overall economic prosperity. CULTURAL EXCHANGE ➢ Improvement in people to people contacts have encouraged the intermingling of cultural practices and customs. It has allowed people to exchange ideas, behaviors and values with other countries. ➢ Communities are less isolated as a result of globalization. URBANIZATION ▪ One of the consequences of globalization is the increase in urban centers. When many foreign/local companies set up businesses in a particular area, it becomes a hotbed of economic activity. The people who work in those companies need infrastructure near their workplace in terms of housing, transport, shops and other establishments. ▪ Globalization leads to the building of urban centers in and around industrial areas. STANDARD OF LIVING With increased economic activity and opportunities for employment, people have more money in their pockets. They also have more options to choose from because of improved job opportunities. It is one of the main reasons why globalization allows more and more people to improve their standard of living. PRODUCTION COST In a globalized world, companies are free to establish their operations in areas where the cost of production is low. The cheap availability of land, labor and raw materials has become very important. So it makes sense for companies to go where these resources are present in abundant quantities and at discounted rate. It helps them gain over their rivals by lowering costs and improving profit margins. OUTSOURCING One of the characteristics of globalization is that it allows companies to bring in third parties from outside the country to manage specific processes. They take this step to reduce internal costs, improve the quality of services or both. Outsourcing is a boon for several human resource-rich countries that are looking to generate employment. Countries like India and the Philippines have benefitted immensely as a result of this practice. HISTORICAL PERIODS OF GLOBALIZATION 1. The Prehistoric Period ❖ ❖ ❖ 10000 BCE-3500 BCE The earliest phase of globalization Hunters-gatherers 2. The Pre-modern Period ❖ 3500 BCE-1500 CE ❖ The invention of writing and wheel. Writing • Found in Mesopotamia and Egypt Wheel • Found in Europe 3. The Early Modern Period 1500-1750 It is the period between the enlightenment and renaissance. ● ● ● Enlightenment ○ ○ ○ first vaccine in 1796 gas turbine in 1791 first battery in 1800 gas turbine in 1791 first battery in 1800 ● Renaissance ○ ○ ○ ○ the discovery of the New World in 1492 ushering in the age of exploration the Protestant Reformation the invention of printing press by Johannes Gutenberg around 1440 the revival of classical Greek The Gutenberg press Greek Revival architecture 4. The Modern Period • • 1750-1970 Innovations in transportation, communication, population explosion, increase in migration. Transportation Steamboats Railroads 4. Ideograms 1. Cave paintings INNOVATIONS OF COMMUNICATION 2. Petroglyphs 3. Pictograms 5. Writing 6. Printing technology 7. Telecommunications 8. Internet 5. The Contemporary Period ❖ From 1970 to present ❖ The creation, expansion, and acceleration of worldwide interdependencies occurred in a dramatic way and it was a kind of leap in the history of globalization. DIMENSIONS OF GLOBALIZATION 1. Economic Dimension • It refers to the extensive development of economic relations across the globe as a result of technology and the enormous flow of capital that has stimulated trade in both sources and goods . • Major players in the current century’s global economic order. • Huge international corporations ➢ International Economic Institutions ➢ Trading Systems. The result of these powerful forces resulted in the wide gap between the rich and the poor countries. MAJOR SOURCES OF ECONOMIC GROWTH ACROSS COUNTRIES 3. Institutions for macroeconomics 1. Property rights 2. Regulatory institutions 5. Institutions for social influence 4. Stabilization 6. Institutions for conflict management Economic institutions have decisive influence on investment in physical and human capital, technology, and industrial productions. It is also important for resource distribution. 2. ● Political Dimension refers to an enlargement and strengthening of political interrelations across the globe. 1. The principle of state sovereignty 2. Increasing impact of various intergovernmental organization 3. Future shapes of regional and global governance. 2. Political Dimension reference: https://youtu.be/2x8zmA9RYrM?t=19 3. Cultural Dimension ▪ It refers to the increase in the amount of cultural flows across the globe. Cultural interconnections are at the foundations of contemporary globalization. ▪ Individualism and consumerism which are the dominant cultural characteristics of our age and the drive for economic success stimulated by the internet and other technological devices circulate much more easily than they did in earlier periods. ▪ In the dissemination of popular culture, transactional media corporations play a major role. ▪ Cultural diversity often results hybridization- a constructive interaction process between global and local characteristics which is often visible in food, music, dance, film, fashion, and language. ▪ Media empires generated and directed the extensive flow of culture. 4. Religious Dimension ● Religion is a personal or institutionalized set of attitudes, beliefs, and practices relating to or manifesting faithful devotion to an acknowledged ultimate reality or deity. It is the most important defining element of any civilization as contrasted with race, language, or way of life. ● Jihadist globalism is a religious response to the materialist assault by the ungodly West in the rest of the world. Coming out of what they consider a pure form of Islam, its disciples seek to destroy all those alien influences that have been imposed on Muslim people. Example: Bin Ladin understands umma as a single community of believers professing faith in the one and only God, but at the same time committed to destroying not only alien invaders but also corrupt Islamic elites in order to return power to the Muslim masses. Since one third of the world’s Muslim population lives in nonIslamic countries, the restoration of God’s proper reign must be a global event. Hence, Al-Qaeda established jihadist cells in various parts of the world. ROMAN CATHOLIC TEACHING OF GLOBALIZATION 1. Commitment to universal human rights 2. Commitment to the social nature of the human person 3. Commitment to the common good 4. Solidarity (The principle of Solidarity affirms that membership in the human family means that all bear responsibility for one another.) 5. Preferential option of the poor (In the Theology of the Incarnation- Christ God became poor for us so as to enrich us by his poverty. ❑ The poor are susceptible to the effects of environmental irresponsibility because they live in countries where cheap building materials and cheap labour are readily available. They regularly work in farming, fishing, and forestry, areas which suffer environmental damage). 6. Subsidiary (The Catholic Church teaches that decisions should be made at the lowest level in order to achieve the common good). 7. Justice 8. Integral Humanism- is concerned with whole person. Justice is divided in three (3) categories: 1. Commutative Justice. This aims at fulfilling the terms of contracts and other promises on both personal and social level. 2. Distributive Justice. This ensures a basic equity in how both the burden and the goods of society are distributed and that ensures that every person enjoys a basically equal moral and legal standing apart from differences in wealth, privilege, talent and achievements. 3. Social Justice. This refers to the creation of the conditions in which the first two categories of justice can be realized and the common good identified and defended. According to catholic teaching, a just society is one which these forms of justice are assured because they are required by human dignity. 5. Ideological Dimensions ▪ Ideology is a system of widely shared ideas, beliefs, norms and values among a group of people. ▪ It is often used to legitimize certain political interests or to defend ▪ dominant power structures. Ideology connects human actions with some generalized claims. ▪ Globalization is a social process of intensifying global interdependence while globalism is an ideology that gives the concept of neo-liberal values and meanings to globalization. MAJOR IDEOLOGICAL CLAIMS OF ADVOCATES OF GLOBALISM 1. Globalization is about the liberalization and global integration markets. 2. Globalization is inevitable and irreversible. 3. Nobody is in charge of globalization. 4. Globalization benefits everyone. 5. Globalization furthers the spread of democracy in the world.