Globalization

Globalization

The process of expanding and intensifying linkages between states, societies, and economies. It breaks down the distinction between international relations and domestic politics, making such subject to global forces.

What are the three non-state entities that globalization is associated with?

Multinational corporations, nongovernmental organizations, and intergovernmental organizations.

Multinational corporations

Firm that produces, distributes, and markets its goods or services in more than one country - they wield assets/profits with GDPs larger than most countries and they influence politics through their wealth and produced goods and services.

Nongovernmental organizations

A national or international group, independent of any state, that pursues policy objectives and fosters public participation - they shape politics by interacting with governments and supporting civil society.

Intergovernmental organization

Group created by states to serve particular policy ends (UN, WTO, EU).

International regime

International organizations may be part of this. It is the fundamental rules and norms that link states together and shape their relationships to one another, usually regarding some specific issues like trade or greenhouse gases

How do international regimes link states and shape their relationship to each other?

They create fundamental rules and norms of politics; these rules create a connected network where countries coordinate policies, build trust, and change how they interact.

Globalization raises questions of what long-term trend?

State sovereignty. Sovereignty can be lost to intentional IGOs, like the European Union, or unintentional forces like the internet (expands limits of speech and crypto limits unique print money).

Arguments FOR globalization

If states are bound to international institutions, a web of organizations (public, priv, domestic, international) can take over state tasks, shape politics/policy, set standards, and enforce rules where states lack authority. The rule of law would be a set of global institutions enforced by many actors. Sovereignty declines, creating reliance on the globalized world. This affects force with the inability to arrest technology or declare war on threats in a conventional way. War becomes ineffective and threatens international connections. However, this could actually create more world order, constraining violent tendencies of states by dispersing sovereignty. Finally, globalization will change the nature of democracy. Interconnection makes it hard for states to function without oversight from other organizations or hide their actions. This makes politics more open to scrutiny and watchdogs from domestic and international eyes.

Arguments AGAINST globalization

Globalization can be a source of fragmentation and weakened democracy. Violence won’t lose its utility, but instead change form. This can empower violent international actors opposite of a modern state. These are decentralized/flexible, hold no territory, have sovereignty, and get financial support. They do this through force, which is hard to detect because of the technology that empowers them. For example, terrorist groups. Also, it could decrease democracy with the people and representatives. International bodies are elected by member states, not being held accountable to the people or anyone at all. This means that these orgs are not any more transparent than states themselves. Finally, there is concern of a “democratic deficit” where if power moves to global orgs, representation and democracy may grow weak due to the citizens having little say with their preferences, leading to global illiberalism and creating a nationalist public response.

Arguments in favor of international organizations and supranational organizations helping foster democracy

Interconnection makes it hard for states to function without oversight from other organizations or hide their actions. This makes politics more open to scrutiny and watchdogs from domestic and international eyes.

Arguements that international organizations and supranational organizations actually hinder the growth of democracy

Also, it could decrease democracy with the people and representatives. International bodies are elected by member states, not being held accountable to the people or anyone at all. This means that these orgs are not any more transparent than states themselves. Finally, there is concern of a “democratic deficit” where if power moves to global orgs, representation and democracy may grow weak due to the citizens having little say with their preferences, leading to global illiberalism and creating a nationalist public response.

What economic institutions are vital to economic globalization?

Through the Bretton Woods System (an economic regime that manages economic international relations), you get The international Monetary Fund, The World Bank, and The World Trade Organization.

IMF

Manages exchange rates with countries an provides loans to states in financial difficulty.

World Bank

Provides loans and technical assistance to advance development in developing countries.

GATT→WTO

Oversees trade agreements between member states to lower tariffs and remove other, non-tariff barriers.

Foreign direct investment.

Globalized trade has become increasingly extensive, tying markets, producers, and labor together with this. The FDI is the purchase of assets in a country by a foreign firm. Large firms can make profits that rival the GDPs of many countries. This is associated with MNCs that dominate global markets (ex is apple).

How is economic development amplified by expanded global communication?

It transformed the way markets, firms, and individuals interact, Technological innovations and economic liberalization (reducing govt restraints to allow for more private participation) reduced economic barriers, so now people can buy from around the world with few intermediaries. Markets are more open and forms create more competition. Investment changes mean moving money rapidly.

What is the best-known example of the intersection among globalized labor, technology, and markets
(expanded global communication)?

Offshore outsources, which is a process by which a firm moves some of its work to a secondary business, outside the home country, that can do the work more efficiently/cheaper. For example, call centers in India.

Optimists argue that economic globalization leads to what?

Global prosperity-allocate goods/services, labor, and finance in a broader market unfettered by tariffs/obstacles. Countries exporting what they best produce leads to increased innovation, specialization, and lower costs. Transnational corporations make new jobs. Wealth is diffused through open markets, increasing the living standard and decreasing poverty.

Critics say that globalization…

They view it with suspicion because it increases inequality within countries and creates job loss with offshore outsourcing. There is avoidance of government taxes, oversight, and public accountability.

Globalization (strongly affected by the rise of new technologies like cell phones and the internet) can connect people through common interests instead of through national or ethnic identities. Some argue that globalization will…

Compromise aspects of individual and collective identity. Due to: migration - changes culture and politics. Technological innovations - deepens world-wide connections with individuals. This may endanger global multiculturalism and create hybridity (linking cultures, creating new values/ideas) and cosmopolitanism (draws values from everywhere). With the idea of democracy, there would also be a global civil society/global democracy (organized life stretching beyond the state) that could take shape in formal organizations and informal ones, such as social movements through shared interests. This could create more opportunities for public action and new ways of thinking about politics, facilitating democratic change.

Critics of globalized democratization say that globalization…

Overwhelms those with innumerable choices, values, ideas, and sources of information that they’re unable to understand or escape (especially those not part of the globalized elite). This results in confusion, alienation, backlash, nationalism (due to seeing globalization as hostile to their own ways of life), fundamentalism, and retreat to old identities. Another argument is that it will trigger cultural and intellectual decline because societies will trade their cultures/institutions/uniqueness for a common global society shaped by speed/consumption. Things that lack mass appeal are thrown away.

Others say that globalization…

Leads to cultural and intellectual decline. Societies trade their own cultures, institutions, and ideas for a common global society shaped by speed and consumption.

In considering the evidence for globalization, some scholars have argued that…

Globalization creates a trilemma involving global economies: integration, the nation-state, and democracy. It has to include two of the three of these factors.

Other scholars say that globalization’s effect is exaggerated…

Even as globalization has spread, the number of states increase and maintain sovereignty despite institutions like the EU. Also, although some believed that the anarchic nature of the internet would displace the state, governments have regulated content and limited access. The nature of their capacity and autonomy is changing to meet new challenges. Also, with concerns of terrorist groups, technologies can weaken or empower both them and states - they are not as centralized through discrepancy as globalization suggests. Also, offshoring is not taking away as many jobs as thought - time zones and cultural barriers resulted in firms working within national borders. Also, the war with Russia went against the golden straightjacket and poverty has more so been transformed by domestic policies. Economies have been more transformed by computers/AI than the internet, which have also increased inequality.

While people may feel that globalization is inevitable, it can be limited or reversed by…

Economic crisis (ex: the Great Depression effects globally), reducing economic ties, migration, etc. Ongoing difficulties, such as the environment, labor standards, immigration, an democratic practices, also increased public and govt opposition to globalization.