E
Globalization political
Means the worldwide connection of the areas:
 Political
 Economical
 Culture
 Nature
 Communication
More problems arise because of the bounded national possibilities.
Felds of problems:


Economy: There are more and more competitors because of the expanding world economy
Nature: If the industries produce more and cause more pollution.
There are 3 levels:



Increase of international contracts
Increase of international organizations
Increase of international public
In the interpretation of the indicators of economic globalization, there is a double problem: first, one
cannot distinguish exactly what would be the indicators actually suitable for the detection of
globalization, on the other hand, it is not clearly defined, the precise quantitative expression must
have certain indicators to allow conclusions regarding the progress of globalization.
Capital and Goods
The global statistically detectable merchandise exports rose from 1960 to 2008 by more than 15-fold,
while the statistically documented production of goods increased only to 5.4-fold
Influence of developed countries
Trade policy developed countries should enter into a rule for the opening of markets, especially for
high-quality industrial products. The government action in these countries is, however, such as
limited in that location for corporate offices and manufacturing facilities are also selected according
to the internationally compared tax and charges.
Influence of emerging countries
Emerging markets have achieved by relatively low wages at a relatively low cost of living possible
connection to the world economy, economic growth and relative prosperity.
Michelle Dunskyj
5 AK
E
Globalization  Definition
Name for the process of increasing the connectivity and interdependence of the world's
markets and businesses. This process has speeded up dramatically in the last two decades as
technological advances make it easier for people to travel, communicate, and do business
internationally. Two major recent driving forces are advances in telecommunications
infrastructure and the rise of the internet. In general, as economies become more connected
to other economies, they have increased opportunity but also increased competition. Thus,
as globalization becomes a more and more common feature of world economics, powerful
pro-globalization and anti-globalization lobbies have arisen.
The pro-globalization lobby argues that globalization brings about much increased
opportunities for almost everyone, and increased competition is a good thing since it makes
agents of production more efficient. The two most prominent pro-globalization
organizations are the World Trade Organization and the World Economic Forum. The World
Trade Organization is a pan-governmental entity (which currently has 144 members) that
was set up to formulate a set of rules to govern global trade and capital flows through the
process of member consensus, and to supervise their member countries to ensure that the
rules are being followed. The World Economic Forum, a private foundation, does not have
decision-making power but enjoys a great deal of importance since it has been effective as a
powerful networking forum for many of the world's business, government and not-profit
leaders.
The anti-globalization group argues that certain groups of people who are deprived in terms
of resources are not currently capable of functioning within the increased competitive
pressure that will be brought about by allowing their economies to be more connected to
the rest of the world. Important anti-globalization organizations include environmental
groups like Friends of the Earth and Greenpeace; international aid organizations like Oxfam;
third world government organizations like the G-77; business organizations and trade unions
whose competitiveness is threatened by globalization like the U.S. textiles and European
farm lobby, as well as the Australian and U.S. trade union movements.
Definition
"Globalization, global integration: ‘…a widening, deepening and speeding up of interconnectedness
in all aspects of contemporary social life from the cultural to the criminal, the financial to the
spiritual’ (Held and McGrew 1999: 2). Several dimensions of globalization can usefully be identified.
These dimensions can often be analyzed separately even though they may have powerful
interconnections. Economic globalization means the greater global connectedness of economic
activities, through transnational trade, capital flows and migration. Environmental globalization could
include the increasingly global effects of human activity on the environment. Cultural globalization
may highlight the connections among languages, ways of living, and fears of global homogeneity
through the spread of North American and European languages and culture. Political globalization
may include wider acceptance of global political standards such as human rights, democracy, labor
standards, environmental standards, as well as the greater coordination of actions by governments
and other institutions across the globe."
Michelle Dunskyj
5 AK
E
Note that in the above definition, Globalization is divided into four aspects or dimensions:




Economic
Environmental
Political
Cultural
In the modules used in this course, we will be primarily concerned with economic, political, and
cultural issues.
Definition of Globalization
Globalization is the system of interaction among the countries of the world in order to develop the
global economy. Globalization refers to the integration of economics and societies all over the world.
Globalization involves technological, economic, political, and cultural exchanges made possible
largely by advances in communication, transportation, and infrastructure.
There are two types of integration—negative and positive. Negative integration is the breaking down
of trade barriers or protective barriers such as tariffs and quotas. In the previous chapter, trade
protectionism and its policies were discussed.
You must remember that the removal of barriers can be beneficial for a country if it allows for
products that are important or essential to the economy. For example, by eliminating barriers, the
costs of imported raw materials will go down and the supply will increase, making it cheaper to
produce the final products for export (like electronics, car parts, and clothes).
Positive integration on the other hand aims at standardizing international economic laws and
policies. For example, a country which has its own policies on taxation trades with a country with its
own set of policies on tariffs. Likewise, these countries have their own policies on tariffs. With
positive integration (and the continuing growth of the influence of globalization), these countries will
work on having similar or identical policies on tariffs.
Effects of Globalization
According to economists, there are a lot of global events connected with globalization and
integration.
It is easy to identify the changes brought by globalization.
1. Improvement of International Trade. Because of globalization, the number of countries
where products can be sold or purchased has increased dramatically.
2. Technological Progress. Because of the need to compete and be competitive globally,
governments have upgraded their level of technology.
3. Increasing Influence of Multinational Companies. A company that has subsidiaries in various
countries is called a multinational. Often, the head office is found in the country where the
company was established.
An example is a car company whose head office is based in Japan. This company has
branches in different countries. While the head office controls the subsidiaries, the
Michelle Dunskyj
5 AK
E
subsidiaries decide on production. The subsidiaries are tasked to increase the production and
profits. They are able to do it because they have already penetrated the local markets.
The rise of multinational corporations began after World War II. Large companies refer to the
countries where their subsidiaries reside as host countries. Globalization has a lot to do with
the rise of multinational corporations.
4. Power of the WTO, IMF, and WB. According to experts, another effect of globalization is the
strengthening power and influence of international institutions such as the World Trade
Organization (WTO), International Monetary Fund (IMF), and World Bank (WB).
5. Greater Mobility of Human Resources across Countries. Globalization allows countries to
source their manpower in countries with cheap labor. For instance, the manpower shortages
in Taiwan, South Korea, and Malaysia provide opportunities for labor exporting countries
such as the Philippines to bring their human resources to those countries for employment.
6. Greater Outsourcing of Business Processes to Other Countries. China, India, and the
Philippines are tremendously benefiting from this trend of global business outsourcing.
Global companies in the US and Europe take advantage of the cheaper labor and highlyskilled workers that countries like India and the Philippines can offer
7. Civil Society. An important trend in globalization is the increasing influence and broadening
scope of the global civil society.
Civil society often refers to NGOs (nongovernment organizations). There are institutions in a country
that are established and run by citizens. The family, being an institution, is part of the society. In
globalization, global civil society refers to organizations that advocate certain issue or cause.
There are NGOs that support women's rights and there are those that promote environment
preservation. These organizations don't work to counter government policies, but rather to establish
policies that are beneficial to all. Both the government and NGOs have the same goal of serving the
people.
The spread of globalization led to greater influence of NGOs especially in areas of great concern like
human rights, the environment, children, and workers. Together with the growing influence of NGOs
is the increasing power of multinational corporations. If the trend continues, globalization will pave
the way for the realization of the full potential of these two important global actors.
Michelle Dunskyj
5 AK