Core Social Science Concepts in Economic Globalization and Migration

Economic Globalization and Driving Forces

Definition of Economic Globalization: According to Castells, the distinguishing factor of a global economy compared to an international or world economy is its capacity to operate in "real time" (Assigned textbook course readings and lecture notes, 2026, p. 155). Specifically, it is defined as "an economy whose core components have the institutional, organisational and technological capacity to work as a unit in real time, or in chosen time, on a planetary scale" (Castells, 1996, p. 92, as cited in Assigned textbook course readings and lecture notes, 2026, p. 155).
Primary Driving Forces: Accelerated economic globalization is propelled by three significant dynamics: the internationalization of trade and finance, the increasing power of transnational corporations (TNCs) and large investment banks, and the role of international economic institutions such as the IMF, the World Bank, and the WTO (Assigned textbook course readings and lecture notes, 2026, p. 159).
Policy Drivers: Economic globalization has also been driven by specific policies enacted by governments and international institutions through the "deregulation and liberalisation of trade" (Assigned textbook course readings and lecture notes, 2026, p. 155).

Core Economic Concepts and Terms

Benchmarking: This is a management practice designed to provide systematic comparisons of a corporation's performance against the "best practices" of other global organizations to ensure international standards are maintained (Assigned textbook course readings and lecture notes, 2026, pp. 153, 154, 162).
Transnational Capitalist Class: According to Sklair (2002), this class is composed of four specific groups:
- Corporate Fraction: Executives of TNCs.
- State Fraction: State and inter-state bureaucrats and politicians.
- Technical Fraction: Professionals.
- Consumerist Fraction: Merchants and media (Assigned textbook course readings and lecture notes, 2026, p. 155).
- Function: These groups collectively utilize political, cultural, and media influence to stimulate global consumer demand (Assigned textbook course readings and lecture notes, 2026, p. 156).
Market-Oriented Investment: Driven by the search for overseas markets once domestic consumer demand is saturated (Dicken, 2007). It aims to supply goods or services directly to a specific target country’s market and is influenced by market size, consumer wealth, and the necessity to bypass trade barriers (Assigned textbook course readings and lecture notes, 2026, pp. 153, 159).
Asset-Oriented Investment: Driven by the need for specific resources located in particular countries or regions (Dicken, 2007). It focuses on acquiring specific resources, infrastructure, labor skills, or regulatory advantages that are location-bound to improve production or operational efficiency (Assigned textbook course readings and lecture notes, 2026, pp. 153, 159).
Transnational Production Networks: Castells (2003) notes that global production is increasingly performed by networks rather than just multinational corporations (MNCs), though MNCs remain essential components. These networks allow corporations to "break down the production process into detachable component phases that can be dispersed throughout the world" (Assigned textbook course readings and lecture notes, 2026, pp. 160, 163).
Purchasing Power Parity (PPP): An economic concept used to determine if a country's currency is strong or weak. It serves as a baseline for measuring consumer wealth, market size, and the shifting power of local currencies (Assigned textbook course readings and lecture notes, 2026, p. 153).
Foreign Direct Investment (FDI): Involves a company in one country investing in new facilities or an existing firm in another country (Hirst & Thompson, 1999). It is defined as a cross-border investment acquiring $10\%+$ control in a foreign business (Remit Bee, 2026, p. 1).
Gross Domestic Product (GDP): The standard metric for measuring the total output of an economy. The scale of internationalization is often observed via the ratio of international trade relative to GDP (Assigned textbook course readings and lecture notes, 2026, p. 156).
Demography: The statistical study of human populations. In global systems, urbanization is viewed not just as a demographic shift but as a structural transformation where cities become primary nodes for economic and social exchange (Rowntree et al., 2023, as cited in Assigned textbook course readings and lecture notes, 2026, p. 1).
Absolute Poverty (Extreme Poverty): Statistically tracked by the World Bank (2018) as the percentage of people living on less than $1.90$ a day. Reducing this number is a core target for international human development institutions (Assigned textbook course readings and lecture notes, 2026, p. 159).

Global Cities and Urban Dynamics

Definition of Global Cities: These are "strategic nodes in the global economic network that command and control the world economy" (Assigned textbook course readings and lecture notes, 2026, p. 1). Sassen (2018) describes them as "command posts" and essential infrastructure for managing global capital and markets.
Migration as Infrastructure: International migration provides the necessary human capital for cities to function as global hubs (Castles et al., 2020).
Dual Labor Market: Global urban centers attract a diverse workforce that creates "dual-tier" economies. This consists of high-end tech/finance roles (for "elite expats") and low-end service work (for low-wage essential workers) (Assigned textbook course readings and lecture notes, 2026, p. 1).

Migration: Factors and Types

Push and Pull Factors: Migration is driven by a combination of factors (Castles et al., 2020):
- Push Factors: Conflict, poverty, and lack of jobs in the home country.
- Pull Factors: Higher wages, safety, and family reunification in global cities (Assigned textbook course readings and lecture notes, 2026, p. 1).
Types of Migration:
- Labour Migration: Movement primarily for employment.
- Internal vs. International Migration: Movement within a country versus crossing national borders.
- Circular Migration: Repetitive movement between home and host countries.
- High-Skill ("Brain Gain"): Specialized employment in fields like IT, finance, and engineering in cities like New York or London.
- Essential Sector ("3D Jobs"): Labor concentrated in "Dirty, Dangerous, and Demanding" fields, such as construction in Dubai, agriculture in the USA, and global domestic work (Assigned textbook course readings and lecture notes, 2026, p. 1).

Transnationalism, Care Chains, and Remittances

Global Care Chain: A sociological concept coined by Arlie Russell Hochschild describing how caregiving work (childcare, elder care, household management) is distributed across countries through migration. It highlights the flow of emotional and domestic labor from poorer regions to richer ones (Assigned textbook course readings and lecture notes, 2026, p. 1).
Transnationalism: The phenomenon where migrants participate in the host city's economy while maintaining deep financial and social ties to their home country (Assigned textbook course readings and lecture notes, 2026, p. 1).
Remittances: Financial transfers sent by migrants from a host country to individuals or households in their country of origin (World Bank). These are private, person-to-person transfers distinct from institutional investments (RemitBee, 2026, p. 1).
Social Function of Remittances: At the household level (e.g., in Central Asia), remittances are used for:
- Daily consumption (food, utilities).
- Education and healthcare.
- Housing construction or renovation.
- Social obligations (weddings, community events).
Dependency Patterns: Communities may become reliant on income earned abroad, and local economies may weaken if too many working-age individuals depart (Assigned textbook course readings and lecture notes, 2026, p. 1).
Macroeconomic Significance: Remittances are highly resilient; Ratha et al. (2024) noted that "remittances bend, while FDI breaks," as migrants often increase transfers during family hardships. In countries like Nepal or Tajikistan, remittances can account for up to $45\%$ of the total national GDP (Assigned textbook course readings and lecture notes, 2026, pp. 1, 2).