Defining Globalization
Defining Globalization
Preface
Much has changed since time immemorial. Human beings have encountered many changes
over the last century especially in their social relationships and social structures. Of these
changes, one can say that globalization is a very important change, if not, the most
important. The reality and omnipresence of globalization makes us see ourselves as part of
what we refer to as the global age. The internet, for example, allows a person from the
Philippines to know what is happening to the rest of the world simply by browsing Google.
The mass media also allows for connections among people, communities, and countries all
over the globe.
Since its first appearance in the Webster’s Dictionary in 1961, many opinions about
globalization have flourished. The literature on the definitions of globalization revealed that
definitions could be classified as either:
→ broad and inclusive. For example: globalization means the onset of the borderless world.
This is an example of a broad and inclusive type of definition. It can include a variety of
issues that deal with overcoming traditional boundaries. However, it does not shed light on
the implications of globalization due to its vagueness.
→ narrow and exclusive. For example: the characteristics of the globalization trend include
the internationalizing of production, the new international division of labor, new migratory
movements from south to north, the new competitive environment that accelerates these
processes, and the internationalizing of the state making states into agencies of the
globalizing world. This is an example of narrow and exclusive type of definition. This
definition is better justified but can be limiting, in the sense that their application adhere to
only particular definitions.
Globalization is not a new concept. Traders travelled vast distances in ancient times to buy
commodities that were rare and expensive for sale in their homelands. The Industrial
Revolution brought advances in transportation and communication in the 19th century that
eased trade across borders.
The think tank, Peterson Institute for International Economics (PIIE), states globalization
stalled after World War I and nations' movements toward protectionism as they launched
import taxes to more closely guard their industries in the aftermath of the conflict. This
trend continued through the Great Depression and World War II until the U.S. took on an
instrumental role in reviving international trade.
Globalization has since sped up to an unprecedented pace, with public policy changes and
communications technology innovations cited as the two main driving factors.
One of the critical steps in the path to globalization came with the North American Free
Trade Agreement (NAFTA), signed in 1993. One of NAFTA's many effects was to give
American auto manufacturers the incentive to relocate a portion of their manufacturing to
Mexico where they could save on the costs of labor. As of February 2019, the NAFTA
agreement was due to be terminated, and a new trade agreement negotiated by the U.S.,
Mexico, and Canada was pending approval by the U.S. Congress.
Governments worldwide have integrated a free market economic system through fiscal
policies and trade agreements over the last 20 years. The core of most trade agreements is
the removal or reduction of tariffs. This evolution of economic systems has increased
industrialization and financial opportunities in many nations. Governments now focus on
removing barriers to trade and promoting international commerce.
Globalization Theories
Preface
This topic gives you a glimpse of the important theories on globalization. We will analyze
globalization culturally, economically and politically in this module as these will be reflected
on the succeeding lessons. In the meantime, it would be helpful to assert that the theories
see globalization as a process that increases either homogeneity or heterogeneity.
Homogeneity
Homogeneity refers to the increasing sameness in the world as cultural inputs, economic
factors, and political orientations of societies expand to create common practices, same
economies, and similar forms of government.
Examples are: cultural imperialism (a given culture influences other cultures like
Americanization), capitalism, neoliberalism, global economic crises, McWorld (means only
one political orientation is growing in today’s societies), media imperialism (global flow of
media to the developing countries like Hollywood instead of Al Jazeera or Bollywood),
McDonaldization (process by which Western societies are dominated by the principles of
fast food restaurants like efficiency, calculability, predictability, and control), and
globalization (a process wherein nations, corporations, etc. impose themselves on
geographic areas in order to gain profit, power and so on).
Global flows of culture tend to move more easily around the globe than ever before,
especially through non-material digital forms. There are three perspectives on global
cultural flows. These are the following:
Cultural differentialism involves barriers that prevent flows that serve to make alike.
Culture tends to remain stubbornly different from one another. It emphasizes that
cultures are essentially different and are only superficially affected by global flows.
Cultural hybridization is the mixing of cultures and the integration of the global and
the local leading to unique combinations.
Cultural convergence is when cultures are subject to many of the same global flows
and tend to grow more alike.
Hardwired
According to Nayan Chanda, it is because of our basic human needs (commerce, religion,
politics and warfare) to make our lives better that made globalization possible. Therefore,
one can trace the beginning of globalization from our ancestors in Africa who walked out
from the said continent in the late Ice Age. This long journey finally led them to all known
continents today, roughly after 50,000 years.
Cycles
For some, globalization is a long-term cyclical process and thus, finding its origin will be a
difficult task. What is important is the cycle that globalization has gone through. Subscribing
to this view will suggest adherence to the idea that other global ages have appeared. There
is also the notion to suspect that this point of globalization will soon disappear and
reappear.
Epoch
Globalization has six great epochs which are also called waves. Each wave has its own origin.
These epochs do not return or repeat themselves. The following are the sequential
occurrence of the epochs:
Events
Specific events are also considered as part of the fourth view in explaining the origin of
globalization. Examples of these events are: Roman conquests, the rampage of the armies of
Genghis Khan into Eastern Europe in the 13th century, Christopher Columbus’s discovery of
America in 1942, creation of the first transatlantic telephone cable, television broadcasts,
founding of the internet and others.
1. the emergence of the United States as a global power (post-World War II)
2. the emergence of multinational corporations (MNCs)
3. the demise of the Soviet Union and the end of the Cold War
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