Understanding Globalization: Definitions, Impacts, and Key Actors

Contemporary World

The contemporary world refers to the present time or most recent period in history, characterized by modern technology, globalization, cultural exchange, and socio-political changes.

Globalization

Globalization is a process of expanding various sociocultural and socioecological processes from national to international and transcultural levels (Al-Rodhan, 2006).

Globalization in business

In business, the term is used in an economic context to describe integrated economies marked by free trade, the free flow of capital among countries and easy access to foreign resources, including labor markets, to maximize returns and benefit for the common good.

History of globalization

The Roman Empire spread its economic and governing systems through significant portions of the ancient world for centuries.

Multinational institutions

Multinational institutions such as the United Nations, International Monetary Fund, World Bank and World Trade Organization were established to promote international cooperation and free trade.

Global Connected Index (GCI)

A measurement of flows and interconnections of a country to other global players through exchanges in trade, capital, people, and information.

Peak Connectedness Year

According to the global connectedness index 2018 report, the world's level of connectedness in terms of international trade, capital, information, and people was at its peak in 2017.

Socioeconomic Changes in Globalization

Includes growth of trans- and supra-territorial connectivity, shift from capitalism to hyper-capitalism focused on production, move from nationalism toward identifying pluralism and hybridity, and transition from rationalism toward knowledge reflexivity.

Factors Driving Globalization

Reduction of trade barriers and modern technology developments.

Positive Economic Impacts of Globalization

Some authors highlight the positive effects on the level of employment and balance of trade.

Negative Impacts of Globalization

Some authors emphasize the inequity among countries and between the rich and the poor.

Development Paradigms

An idea of prescribed path to attain development through a certain set of activities, according to a defined vision.

Economic Globalization

A complex global process of expanding the market economic system throughout the world, achieved through trading and financial flows across countries' borders.

Cultural Globalization

Refers to the increasing contact between people and their cultures, including their ideas, values, and ways of life.

Political Globalization

The enlargement of the international political system and its establishments, where inter-regional dealings, including trade, are managed.

Flows in the Age of Globalization

Includes trading, capital movement, and movement of people.

Extent of Globalization

The measure of how connected a country is with the world in terms of international trade, capital, information, and people.

Global Connectedness Index 2018 report

A report indicating that the world's level of connectedness in terms of international trade, capital, information, and people peaked in 2017.

Most globally connected country

According to the Global Connectedness Index 2018 report, the Netherlands is the world's most globally connected country.

Most globally connected continent

Europe is identified as the most highly globally connected continent according to the Global Connectedness Index 2018 report.

Southeast Asian economies

Countries like Cambodia, Malaysia, Singapore, and Vietnam have exceeded expectations for global connectivity, particularly in trade flow.

Global economic output export

Only 20 percent of the global economic output of the countries is exported from the home countries.

People living outside home countries

Only 3 percent of people are living outside the countries they were born in.

Material and social flows

These flows are more within and between countries rather than on a global level.

Interconnectivity definitions

Some definitions focus on the world's interconnectivity in terms of processes, events, and decisions (Albrow & O'Bryne, 2017; Friedman, 2006).

Economic and financial integration definitions

Other definitions focus more on economic and financial integration (Rodrik, 2008; Cline, 2010).

Literature review on globalization discourse

Refer to articles like Mir, et al. (2014) for a literature review on the globalization discourse.

Critical discourse in international development

Globalization has been a critical discourse in the international development policy arena.

Debate on globalization

People commonly debate about the economic aspect of globalization, but it is only one aspect of the globalization agenda.

Hegemony and power imbalance

Some authors argue against the hegemony and power imbalance that comes with globalization.

Positive impact of globalization

Other authors highlight its positive impact on trade, commerce, and information flow.

Learning outcomes of the lesson

Identify the extent of globalization; Define globalization; Differentiate the competing conceptions of globalization; Identify the underlying philosophies of the varying definitions of globalization.

Google Books Ngram Viewer

A tool used to search for the keyword 'globalization' to see the number of books written about it since the end of the 1980s.

Modern technologies and air travel

These have made possible the connection and flow of people and information across countries.

Indicators of global connectivity

The Global Connectedness Index (GCI) serves as an indicator of global connectivity.

Globalization as a contested concept

Globalization is a highly contested concept with numerous definitions and viewpoints.

Sociocultural changes with globalization

Globalization brings about various sociocultural and socioeconomic changes.

Economic Aspect of Globalization

The singular focus on economic dimensions, often criticized for neglecting social and cultural impacts.

Cultural Processes in Globalization

The involvement of cultural dynamics in the globalization process, as highlighted by Pieterse (2019).

Keywords in Globalization Definitions

Keywords include 'movement,' 'integration,' 'free trade,' 'capital,' and 'world'.

Sociopolitical Aspects of Globalization

The need to consider sociopolitical dimensions alongside economic factors in globalization.

Deterritorialization

The process of breaking down territorial boundaries, often associated with globalization.

Westernization

The idea that globalization is primarily about the spread of Western culture and influence.

Temporal Connections in Globalization

Changes in how people connect over time, as argued by Scholte (2005).

Real-time News Accessibility

The ability to access news from around the world instantly through various media.

China and Philippines Connections

Historical trade connections dating back to the Neolithic period, growing in the 10th century AD.

Macro-structural Changes in Globalization

Changes such as product and services integration, emerging institutional arrangements, and pluralistic identity.

Trans- and Supra-territorial Connectivity

The growth of connections that transcend traditional territorial boundaries.

Shift from Capitalism to Hyper-capitalism

A focus on production in an increasingly globalized economy.

Pluralism and Hybridity in Globalization

The move from nationalism toward recognizing diverse identities and cultures.

Knowledge Reflexivity

The transition from rationalism to a more reflective understanding of knowledge in society.

Reduction of Trade Barriers

The lowering of tariffs and taxes on imports, initiated by the GATT in 1947.

World Trade Organization (WTO)

An organization formed in 1994 from the GATT to regulate international trade.

Modern Technology Developments

Advancements that have facilitated faster communication and access to information.

Information Society

A society characterized by the rapid development and dissemination of information.

Sub-Saharan Africa and Globalization

A region particularly marginalized by globalization, with high levels of poverty.

World Bank Poverty Definition

Living below US$1.90/day, a measure of extreme poverty.

Sub-Saharan Africa

Region where almost half of the world's extremely poor population lives (living below US$1.90/day).

Market Economy

An economic system that gives freedom to entrepreneurs to control productive processes to pursue profit.

GDP

Gross Domestic Product, an indicator of economic success.

Global Trading

International economic exchanges and deals between countries, enabled by international fiscal payments.

Capital Flows

Movement of capital across borders, including foreign investment.

Movement of People

The migration and movement of individuals across countries, influenced by globalization.

Transnational Exchange

Enhanced exchange of products, services, technologies, and capital across national boundaries.

Foreign Investment

Investment made by a company or individual in one country in business interests in another country.

IMF

International Monetary Fund, an organization that works to foster global monetary cooperation.

World Bank

An international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects.

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Just Development

Development that is fair and equitable, ensuring that all individuals have access to opportunities.

Equitable Development

Development that is fair and just, distributing resources and opportunities fairly among all people.

Economic Integration

The process by which different economies become more closely linked through trade and investment.

Assumptions Behind Globalization

Beliefs that underpin the processes and impacts of globalization.

Complex Change

A significant transformation that affects multiple aspects of society and economy.

Encyclopedia Britannica

A general knowledge English-language encyclopedia.

Pursuit of Globalization

The ongoing efforts to promote and implement globalization in various sectors.

Commercial loans

Money lent to foreign businesses or governments.

Official flows

Development aid or money granted by rich countries to developing nations.

Foreign direct investment

Refers to buying or putting up a firm in a foreign country or contributing to the enhancement of an existing firm.

Transnational corporations

Businesses that operate in more than one country, primarily undertake foreign direct investment.

Overseas Filipino Workers

Estimated at 2.3 million during the period April to September 2018.

Rapid economic growth will lead to development

Economic growth is only one aspect of development; other aspirations include achieving both material needs and broader social objectives.

Poor countries will benefit from borrowed funds

Borrowing of poor countries is coupled with conditions (SAPs), which make countries compromise spending for social services and welfare.

Poor countries need to catch up with rich countries

It will be difficult for poor countries to catch up because they are caught in unequal exchanges and underdevelopment.

Underemployment

Cannot be understood just by analyzing one country but by examining it within the historical and worldwide political-economic system.

Removal of tariffs and quotas

Can ease global trading and will lead to economic integration.

Reduction of tariffs in the Philippines since 1980s

Led to unfair competition of local industries with imports.

Industries affected by tariff cuts

Paper products, textiles, ceramics, rubber products, furniture, wood, shoes, and leather goods.

Impact of tariff reduction

Led to the death of several domestic industries, with one industry down to less than 10 firms from 200 firms in the 1970s.

Cultural Globalization and Political Globalization

Increased interdependence of economies combines with globalization of culture and politics.

Homogenizing influence of globalization

May bring with it a loss of uniqueness of local culture, which can lead to loss of identity, exclusion, and even conflict.

Globalization of lifestyles

Includes music, media, fashion, food, as well as globalization of knowledge, science, and technology.

Political decision-making in globalization

Can transcend the boundaries of nations.

Institutions involved in political globalization

World Bank, International Monetary Fund, United Nations, among others.

Critiques to the Assumptions

Summarizes critiques regarding the unreliability of the assumptions behind globalization.

Equitable distribution of opportunities

One of the broader social objectives of development.

Reduction of tariffs

Led to the death of several domestic industries.

Structural Adjustment Policies (SAPs)

Programs imposed on poor countries that require governments to reduce spending for social services, prioritize repaying debts, increase exports, and remove tariffs for imports.

International Monetary Fund (IMF)

Provides short-term emergency loans and helps bring enormous flow of foreign money through loans and speculative investment.

Deregulation

To reduce the control of government over businesses, making them more powerful in implementing their visions and operations.

Economic deregulation

Met with disapproval from labor organizations, environmental groups, indigenous peoples, and consumer groups.