2nd Year - Contempo, MIDTERMS

Globalization

a process of interaction and integration

among the people, companies and governments of

different nations,

Globalization

about growing worldwide connectivity.

technology

One principal driver of globalization

International Monetary Fund (IMF),

According to them

globalization is the growing economic interdependence of countries

worldwide through increasing volume and variety of cross border

transactions

1 - involves both the creation of new social

networks and the multiplication of existing

connections

2 - expansion

and the stretching of social relations, activities,

and connections.

3 - involves the intensification and

acceleration of social exchanges

4 - Without erasing local and national

attachments, the compression of the world into a

single place has increasingly made global the

frame of reference for human thought and action.

Globalization has four characteristics or qualities.

The Prehistoric Period (10000 BCE-3500 BCE)

globalization was severely limited

The Pre-modern Period (3500 BCE- 1500 CE)

invention of writing: facilitated the spread of ideas and

inventions

invention of wheels: additional roads for transportation

The Early Modern Period (1500-1750)

globalization

was severely limited

Enlightenment and the Renaissance

universal form of morality and law

to the capitalist world system helped to strengthen

globalization

The Modern Period (1750-1970)

Innovations in transportation and communication

technology

increase of population and migration

cultural exchanges and transformation in traditional

social patterns

The Contemporary Period (from 1970 to present)

The creation, expansion, and acceleration of

worldwide interdependencies occurred in a

dramatic way and it was a kind of leap in the

history of globalization.

Economic

Political

Technological

Cultural

Religious

Ecological

Dimensions of Globalization

ECONOMIC DIMENSION

Realization of a global common market, based on the

freedom of exchange of goods and capital.

The interconnectedness of these markets, however,

meant that an economic collapse in one area could

impact other areas.

POLITICAL DIMENSION

Some use "globalization" to mean the creation of a world

government which regulates the relationships among

governments and guarantees the rights arising from social and

economic globalization.

INDUSTRIAL

Emergence of worldwide production markets

and broader access to a range of foreign products

for consumers and companies.

FINANCIAL

Emergence of worldwide financial markets and

better access to external financing for borrowers.

By the early part of the 21st century more than

$1.5 trillion in national currencies were traded

daily to support the expanded levels of trade and

investment.

CULTURAL DIMENSION

growth of cross-cultural contacts

the foundations of contemporary globalization

hybridization

Cultural diversity often results

RELIGIOUS DIMENSION

the most important defining element of any

civilization

also portrayed as a defining element in future

conflicts

Jihadist globalism

disciples seek to destroy all those

alien influences that have been imposed on Muslim

people; extremely violent strains of religion

IDEOLOGICAL DIMENSION

Globalization is about the liberalization and global

integration of markets.

Globalization is inevitable and irreversible

Nobody is in charge of globalization

Globalization benefits everyone

Globalization furthers the spread of democracy in

the world

Economic Globalization

increasing interdependence of

world economies as a result of the growing scale

of cross-border trade

historical process,

the result of human innovation and technological

progress.

According to the International Monetary Fund

economic globalization is a.....

The rapid growing of information in all types of

productive activities

2. Marketization

Two Major Driving Forces for

Economic Globalization

The globalization of trade of goods and

services

2. The globalization of financial and capital

markets

3. The globalization of technology and

communication

4. The globalization of production

Dimensions of Economic

Globalization

16th century world system

globalization through long

distance trade

17th and 18th century

global economy exists only in

trade and exchange rather than production

19th century

the advent of globalization approaching

its modern form is witnessed; golden age of

globalization

19th and 20th

global economy grew

by an average of nearly 4 percent per annum

1870 to 1914,

the help of gold and silver,

trade was carried without any institutional support.

Gold Standard

a system of backing a country's

currency with its gold reserves. The country settles

all its international trade transactions in gold

Great depression in 1931.

After World War I, the use of gold declined due to

increased expenditure and inflation which were

caused by war;

Bretton

Woods system,

the aim of which is to create a stabilized

international currency system and ensure a monetary

stability for all the nations.

United States

held most of the world's gold,

1971

The Bretton Woods system ended

International trade

the exchange of goods, services and

capital across national borders.

allows for a greater competition and

more competitive pricing in the market.

Global trade

allows wealthy countries to use their

resources such as labor, technology, or capital more

efficiently

Trade policies

refer to the regulations

and agreement of foreign countries. Taxes imposes on

import and export, inspection, regulations, tariffs and

quotas are all part of country's trade policy.

Tariffs

taxes or duties paid for a particular class of

imports or exports.

Trade barriers

measures that governments or public

authorities introduce to make imported goods or services

less competitive than locally produced goods and

services.

Safety

ensures that imported products in the country

are of high quality

National Trade Policy

safeguards the best interest of

its trade and citizen.

Bilateral Trade Policy

regulate the trade and business

relations between two nations, this policy is formed.

International Trade Policy

international trade policy

under their charter like the International economic

organizations

Trade Policy and International Economy

In most

developed countries where open market economy

prevails, the international economic organizations

support free trade policies.

The World Trade Organization (WTO)

deals with

the global rules of trade between nations with the main

function of ensuring that trade flows smoothly,

predictably and freely.

Outsourcing

an activity that requires search for a

partner and relation-specific investments.

most rapidly growing components of

international trade

Subcontracting

the practice of assigning part of the

obligations and tasks under a contract to another party

known as a subcontractor

bilateral relationship

governed by a contract, but even

in those cases the legal document does not ensure that

the partners will conduct the promised activities with

the same care that the firm would use itself if it were to

perform the tasks

Market integration

refers to how easily two or more

markets can trade with each other.

Stock Market Integration:

a condition in which stock

markets in different countries trend together and depict

same expected risk adjusted returns

Financial Market Integration:

an open market economy

between countries facilitated by a common currency and

the elimination of technical, regulatory and tax

differences to encourage free flow of capital and

investment across borders.

global corporation

a business that operates in two

or more countries. It also goes by the name

"multinational company."

Chief financial officers (CFOs)

must balance the

opportunities with the challenges of operating in multiple

environments in managing their internal markets in

building an advantage.

Foreign Direct Investment (FDI)

an investment made

by a company or individual in one country in business

interests in another country,

BRICS

an acronym for the combined economies of

Brazil, Russia, India, China and South Africa. These five

countries were among the fastest growing emerging

markets as of 2011.

China and India

by 2050, become the world's

dominant suppliers of manufactured goods and services,

Brazil and Russia

by 2050, will become

similarly dominant as suppliers of raw materials.

The General Agreement on Trade in Services (GATS)

the first multilateral agreement covering trade in services

which was negotiated during the last round of

multilateral trade negotiations called the Uruguay

Round, and came into force in 1995.

centralized government

maintains a monopoly of the

legitimate use of force within a certain territory.

Nation

an imagined political community

and imagined as both inherently limited and sovereign.

Golden Straitjacket (Thomas Friedman)

globalization imposes a forced choice upon states either to

conform to free market principles or run the risk of being left

behind

Neoliberalism

the intensification of the influence and dominance

of capital.

significance of contractual relations

Economic sovereignty

power of national governments to make decisions

independently of those made by other governments

International Legal Sovereignty

refers to the acceptance of a given state

as a member of the international community.

Westphalian Sovereignty

based on the principle that one sovereign state

should not interfere in the domestic arrangements of another.

Interdependence SovereigntY

The capacity and willingness to control

flows of people, goods and capital into and out of the country.

Domestic Sovereignty

the capacity of a state to choose and implement

policies within the territory

Economic integration

a process and a means by which a group of countries strives to

increase their level of welfare

Preferential Trade Areas (PTAs)

happens when there's an agreement on

reducing or eliminating tariff

Free Trade Agreements (FTAs) or Preferential Trade Agreements (PTAs)

eliminate import tariffs as well as import quotas between signatory countries.

Custom Union

the removal of tariff barriers between members, together

with the acceptance of a common or unified external tariff against

non-members.

Common Market

the removal of barriers to the mobility of people, capital

and other resources within the area in question,

as well as eliminating non- tariff barriers to trade, such as the regulatory

treatment of product standards.

Economic Union

requires coordinated monetary and fiscal policies as well

as labor market, regional development, transportation and industrial policies.

Economic and Monetary

Union (EMU)

a key stage towards complete integration,

involves a single economic market, a common trade policy, a

single currency and a common monetary policy.

Complete Economic Integration

final stage of economic integration in

which member states completely forego independence of both monetary and

fiscal policies.

Political integration

refers to the integration of components within political

systems; the integration of political systems with economic, social, and other

human systems; and the political processes by which social, economic, and

political systems become integrated.

can be defined as the mobilization of collective claims by actors located in

more than one country and/or addressing more than one national government

and/or international governmental organization or another international actor

Social Movement

a type of group action

large, sometimes informal, groupings of individuals or organizations

which focus on specific political or social issues

Global Justice Movement

the loose collection of individuals and groups often referred to as a

"movement of movements", who advocate fair trade rules

and are negative to current institutions of global economics

New Transnational Activism

multifaceted as the internationalism

the protests and organizations are not the product of a global

imaginary but of domestically rooted activists who are the connective

tissue of the global and the local, working as activators, brokers and

advocates for claims both domestic and international

Social media

empowers state

creates new arena for political interaction, identity and belongingness

Global governance or world governance

a movement towards political integration

of transnational actors aimed at negotiating responses to problems that affect more

than one state or region.

Global governance

governing, without sovereign authority,

relationships that transcend national frontiers.

most influencing tools for

globalization

Global South

refers...

to the regions of Latin America, Asia, Africa,

and Oceania mostly low- income and often

politically or culturally marginalized

It is a symbolic designation

"Third World"

frequently described as

developing nations.

Regionalism

refers to the decentralization of political

powers or competencies from a higher towards a

lower political level.

Asian regionalism

a product of economic

interaction that focuses on exporting products to

develop country markets.

The Asia Pacific and South Asia

refer together to the

regions of East (or Northeast) Asia, South Asia, the

Pacific Islands, and South Asia.

"Atlantic Century"

was

termed "Pacific Century" by US Secretary of States

Hilary Clinton. (Pacific Pivot-foreign policy)

Asia

was the site of the most important trade routes and

in some places more advanced in

technology than West such as science and medicine.

"laboratories of modernity"

Asia Pacific and South Asia

on the receiving end of

globalization.

middle-class

occupies different positions in their

respective societies as well as in relation to their

nation-states as they constitute the expanding regional

consumer market