The document discusses the structure and components of globalization, highlighting economic, cultural, and political aspects. It emphasizes the role of major institutions like the IMF and World Bank in economic globalization, while also addressing the impact of cultural homogenization and international sporting events. Additionally, it explores the advantages and disadvantages of political globalization, including the loss of nation-state power and the complexities of international agreements.
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Reviewer CONTEMPORARY WORLD
The document discusses the structure and components of globalization, highlighting economic, cultural, and political aspects. It emphasizes the role of major institutions like the IMF and World Bank in economic globalization, while also addressing the impact of cultural homogenization and international sporting events. Additionally, it explores the advantages and disadvantages of political globalization, including the loss of nation-state power and the complexities of international agreements.
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Reviewer CONTEMPORARY WORLD the world have diets that are unique to
them, however, the cultural globalization
04 The Structure of Globalization of food has been promoted by fast-food giants such as McDonald's, Coca-Cola, 3 Components of Globalization and Starbucks. Academic literature commonly 3. Sport subdivides globalization into three All the international sporting events - most major areas (ECP) notably the World Cup and The Olympics ● Economic Globalization which bind millions together in a shared, ● Cultural/Social Globalization truly global, 'leisure experience'. ● Political Globalization 1. Converging Global Consumption ECONOMIC GLOBALIZATION Patterns is one most often mentioned in the media. • Today you can go to pretty much any It is associated with massive amounts of major city in the World and share in a financially traded daily on the different stock similar 'consumption experience markets around the label "NEW • More and more in Asia and South America ECONOMY". are coming to Enjoy a high-consumption lifestyle Economic Globalization primarily comprises • Central to this is the growth of similar the globalization of: (PFMTO) styles of shopping 1.Production malls, and leisure parks which provide a 2. Finance homogenous 3. Markets cultural experience in different regions 4. Technology across the world. 5. Organizational 2. Homogeneity In order to monitor the economy, 3 • Comes into society in several ways - economic institutions were created. ethnically(Japanese), religiously(many 1. The International Monetary Fund (IMF) Arabs), culturally(Indians), — would oversee the international monetary politically(communism) System • The study has shown that the most prominent type of homogeneity is ethnicity, 2. The International Bank for where everybody shares similar Reconstruction and Development physiological characteristics and cultural (IBRD) later named WORLD BANK behavior (WB) --- would provide loans for European 3. Financial Homogeneity reconstruction but later expanded its • It exists in many countries. It was activities to the developing world prevalent in many communist countries- this type of homogenous society is in decline 3. The General Agreement on now a day Tariffs and Trade (renamed, of • North Korea is a great example of financial the WORLD TRADE ORGANIZATION in homogeneity, at an extreme level 1992) --- would oversee multilateral trade • Scandinavian countries, where the agreements government makes sure that every citizen of their country enjoys high-level living CULTURAL GLOBALIZATION standards. Refers to the transmission of ideas, 4. The Global Village/Global meanings, and values (IMV) across national Consciousness borders. • Individuals and families are now more directly plugged into the news from the (MFS) outside world - some of the most gripping 1.Migration events of the past decade have unfolded in This process has been going on for several real-time in front of a global audience centuries, with languages, religious beliefs, and values being spread by military DETRADITIONALIZATION - In his classic conquest, missionary work, and trade. 1999 text, Runaway World, Anthony 2. Food Giddens argues that one consequence of Food consumption is an important aspect of globalization is de/traditionalization - culture and most societies around where people question their traditional beliefs about religion, marriage, gender 1. Establishment of International Norms roles, and so on. • When nation-states sign treaties with GLOBAL RISK CONSCIOUSNESS - Ulrich international bodies, it’s an agreement to Beck (1992) argues that a fundamental operate within a set of norms and standards feature of globalization is the development that all signatories will adhere to of a global risk consciousness, 2. Ease of Movement which emerges due to shared global • Often, political agreements between problems which threaten people in nations lead to the relaxing of the multiple countries. movement of labor across boundaries. This can lead to immigration and emigration POLITICAL GLOBALIZATION opportunities for millions of people. Refers to the absence of the absolute 3. Ease of Trade - sovereignty of a state’s political borders • One of the key goals of political over a certain area as well as (1) increased globalization is to create better trade routes interaction between the systems of around the world (in effect, to support and government and (2) increased external promote economic globalization) intervention and interaction on the basis of democracy, non-governmental Disadvantages Of Political organizations, human rights, and freedoms Globalization:
1. Loss of Power at the Nation-State
Examples of Political Globalization: Level 1. European Union - is a political and • When nation-states make multinational economic union of 27 European countries agreements, they often make concessions that have chosen to cooperate closely in in order to reach a middle ground that’s various areas, including trade, security, law, satisfactory to all parties. They also sign off and governance. on certain norms and standards that restrict • Established to promote economic cooperation, their abilities to unilaterally take action. with the idea that countries that trade together 2. Levels of Bureaucracy are less likely to go to war with each other. • Multinational political agreements can add extra layers of bureaucracy to the everyday 2. NATO - The North American Treaty activities of businesses and citizens. For Organization is another multi-national example, many global political agreements political treaty established after World War put in place standards that you need to ‘tick II. off’ before sending a product to market • NATO’s primary goal is to contain Russian 3. Decreased Political Accountability aggression by creating a military pact. If one • One of the biggest critiques of bodies like NATO nation is attacked, then the rest will (supposedly) come to their defense. This the WTO, the EU, and United Nations are deters potential Russian aggression. that they are full of unelected bureaucrats. 3. Belt and Road Initiative - The Belt and ----------------------------------------------------- Road Initiative is a trade initiative 05 Understanding Economic established by China designed to spread Globalization China’s sphere of influence across Asia and the Middle East. Understanding Economic Globalization 4. War Games - Many allied nations engage (International Monetary Fund, 2008) in yearly war games in a bid to strengthen Economic Globalization is a historical military ties and protect their interests. process representing the result of human 5. NAFTA –(North American Free Trade innovation and technological progress. Agreement) was a significant trade It is characterized by the increasing agreement between the United States, integration of economies around the world Canada, and Mexico, aimed at reducing through the movement of goods, services, trade barriers and increasing economic and capital across borders. These cooperation among the three countries. changes are the products of people, It was one of the largest free trade zones in organizations, institutions, and technologies. the world and had a profound impact on the economies of North America. Economic Globalization is a historical process representing the result of human Advantages Of Political Globalization: innovation and technological process. Specifically, it means that economic ● Trade barriers are government-imposed globalization is not an isolated or suddenv restraints on the flow of international goods phenomenon, but rather the outcome or services. of a long sequence of innovations ○ Eliminating tariffs (taxes imposed on imported and technological advancements goods) made by humans. ○ Removing quotas (limits on the quantity of a Human Innovation - this refers to new good that can be imported or exported) ideas, methods, products, or processes that ● Deregulation involves removing or people come up with to solve problems or reducing government regulations in certain improve conditions. industries. Technological advancement - this refers ● Privatization refers to the process of to new ideas, methods, products, or transferring ownership of a government processes that people come up with to enterprise to the private Sector. solve problems or improve conditions. Globalization as Universalization CELP It is characterized by the increasing This perspective suggests that different integration of economies around the world aspects of culture, economy, legal systems, through the movement of goods, services, and politics are converging and becoming and capital across borders. more similar worldwide.
When we talk about “integration” in this Globalization as Westernization
context, we're referring to the growing Globalization as Westernization is a interconnectedness and interdependence perspective that views globalization among different countries' economies. as the spread of Western culture, values, and social structures around The Different Perspectives on the world, often at the expense of Globalization local cultures. Let us discuss the four perspectives on —----------------------------------------------- globalization. 06 Global Economy and Market Integration Globalization as Internationalization ● It emphasizes the increase What is the Global Economy? in transactions and interdependencies The global economy comprises several among different countries. characteristics, such as: ● This includes the exchange of messages, ideas, goods, 1. Globalization - o Due to the global money, investments, pollutants, and people economy and globalization, domestic across borders. economies have become cohesive, leading to an improvement in their performances. Globalization as Liberalization - 2. International Trade: Globalization as liberalization refers to o It refers to the exchange of goods and the process of opening up national services between different countries, and it economies to global markets, typically has also helped countries to specialize in through policies that reduce trade products which they have a comparative barriers, deregulate industries, and advantage. o This is an economic theory privatize state-owned enterprises. that refers to an economy's ability to produce goods and services at a Globalization as Internationalization lower opportunity cost than its trade ● Apple designs its products in partners. USA. 3. International Finance ● Semiconductors come from o Money can be transferred at a faster rate South Korea. between countries compared to goods, ● Memory chips from Japan services, and people; making international ● Rare minerals from Africa finance one of the primary features of a ● Assembly line in China global economy.o International finance consists of topics like currency exchange Globalization as Liberalization rates and monetary policy. 4. Global Investment: o This refers to an Employment opportunities tend to improve investment strategy that is not constrained because trade liberalization leads to market by geographical boundaries. Global expansion, technology sharing, and investment mainly takes place via foreign cross-border investment. direct investment (FDI).
Why is the global economy important?
We can understand the importance of the global economy by looking at it in relation to emerging markets:
Economic Growth and
Development
Trade and Investment
Foreign Direct Investment
Economic Stability Global Interstate System
Innovation and Technology What is the Global Interstate System? It is Job Creation and Economic the whole system of human interactions. Opportunities The modern world-system is structured Consumer Benefits politically as an interstate system - a system Cultural Exchange and of competing and allying states. A political Understanding scientist commonly calls this the Addressing Global Challenges international system, and it is the main focus of the field of International Relations. Who controls the global economy? • Although governments do hold power over International Institutions: countries' economies, it is the big banks and large corporations that control and United Nation United States President essentially fund these governments. This FRANKLIN ROOSEVELT coined the name means that the global economy is united nations that was used in the dominated by large financial institutions declaration of United Nation on January 1st 1942. UN means allies to fight against Axis Powers in the Second World War II. Only 26 nation's representatives pledge their government to: World Bank International Monetary Fund Asian Development Bank African Development Bank
1. Each government pledges itself to
employ its full resources, military or economic, against those members of the Market Integration tripartite pact and its adherents with which such government is at war. • MarKet integration occurs when prices among different locations or related goods 2. Each government pledges itself to follow similar patterns over a long period of cooperate with the governments signatory time. hereto and not to make a sperate armistice • Groups of goods often move proportionally or peace with the enemies to each other and when this relation is very clear among different marKets it is said that World Bank the marKets are integrated. International Monetary Fund Asian Development Bank What is the impact of marKet integration African Development Bank on the global economy? Economic integration can reduce the costs Trade Agreement of trade, improve the availability of goods It is when two or more nations agree on the and services, and increase consumer terms of trade between them. They purchasing power in member nations. determine the tariffs and duties that countries impose on imports or exports. All trade agreements affect international trade.
Import are goods and services produced in
a foreign country and bought by domestic residents. That includes anything shipped into the country even if it's by the foreign subsidiary of a domestic firm.
Exports are goods and services that are
made in a country and sold outside its borders. That includes anything shipped from a domestic company to its foreign affiliate or branch.