CW reading 1 (1) (1) (4) (1)

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There are powerful forces contrary to this ideal, and I refer in particular to the

significant increase in the demands of the large corporations to be recognized intellectual

property rights on new discoveries, for example regarding genetic research, from which

huge profits will result, by licensing this knowledge to others. There are also serious doubts

that modern economies are also and knowledge-based economy.

The risk can be seen as the harmful possibility coming from technological and

economic changes. In other words, the risks also becomes globalized. The risks of

modernization have an inherent tendency to globalize. The universalization of the dangers

accompanying the industrial production occurs regardless of where the production takes

place. Supply chains practically connect everyone on earth with everyone else.

Ulrich Beck said that there is digging under the borders and showed that there is a

boomerang effect of globalization. Risks can trap all those who profit from or produce

using local raw materials for regional markets.

The principle and logic of this argument of Ulrich Beck are quite simple and

possible: what endangers life on Earth threatens also the properties and commercial

interests of those living by the goods and products as a result of this life. Thus arises a

systematic and intense contradiction between profit and property interests, that carry forth

the process of industrialization on one hand, and their often threatening consequences, that

possibly endanger and destroy possessions and profits on the other hand, not to mention the

possession and profits of life itself.

We arrive thus at one of the central paradoxes that Beck called "the society risk".

As knowledge increased, such increased the risk. Indeed it can be said that the social

relationships, the institutions and the dynamic of generating knowledge emphasized the risk

they envolve. Risk has been globalized.

Delocalization and over-territoriality

Manuel Castells has argued convincingly that in the last 20 years a new economy

has emerged around the world. He characterized it as a new brand of capitalism with three

characteristics: management, productivity and competitiveness. These three elements are

functions of the generation of knowledge / skills and information processing. Firms and

territories are organized in networks of production, management and distribution and

consequently the core of economic activities is global - that means that there is the ability to

work in union, in real-time or at a certain time, on a planetary scale. This last idea is the

subject of many analyzes and discussions on globalization.

Many activities that implied prior a face-to-face interaction or had local character

would now be conducted from distance.

John N. Gray stated that there was a significant social and economic exchange

delocalization. Activities and relationships were uprooted from their home places and

cultures. An important element was the division between home work and the classic move

to the suburbs. But delocalization goes beyond that and therefore population growth must

face remote systems so that people can live their lives.

The banking and retail sales have adopted new technologies that involve a reduced

face-to-face interaction, such as online stores. The notion of distance and area are moved

into a new realm.

"The space" that we inhabit when using the Internet to buy goods and communicate may

allow us to develop a different sense of place and communication, to which we belong.

The starting point in understanding the world of today is not the size of the GDP or

the destructive power of weapons systems, but that there is more union / overlap than

before. It may appear to be about individuals, firms, sovereign nations and separate cities,

142 Revista Română de Statistică – Supliment Trim IV/2012

but the deeper reality is that of multiple connections. Business is a classic example of such

inter-connectivity.

The decline of the power of national governments

Not only individuals and institutions have felt the impact of delocalization. An

important causation of this process has been the declining power of national governments

to direct and influence their economies (especially on macroeconomic management). The

changes in economic activities, for instance in U.S. and Japan, are felt across the globe.

Although the influence of nation states has declined, it has not disappeared altogether. The

pivot institutions remained, especially in terms of creating the necessary conditions of

actual government.

Colin Leys points out that the impact of globalization is however a strong

argument, and that it is most felt by the extent to which policies everywhere are now

essentially market driven. It means not only that the governments cannot "manage" national

economies, but also that, in order to survive in their office, they have to increase their

ability to drive national policies in such way as to be adapted to the pressures of

transnational market forces.

In other words, the impact of globalization is not as oppressive in the area where

policy choices are taken directly, as it is heavy in the area where social relationships in all

countries are shaped and reshaped.

While there is no doubt about the increasing scale and scope of the action of

multinational corporation, their degree of control over the dynamics of globalization

remains however limited. In reality, they are often weak and amorphous organizations,

faced with the loss of authority and the erosion of common values, which actually affects

lately all modern institutions.

Anthony Gray has noticed that the global market doesn’t allows corporations to

assume the past functions of the sovereign states. Actually, both the ones and the others

become more and more weakened and overthrown. While multinationals have played a

significant role in the growth of globalization it is important not to exaggerate the degree of

control they have on the dynamics of globalization.

The emergence of global brands and institutions

Another crucial aspect of the globalization is the nature and power of multinational

corporations. It is significant that a quarter of world trade was made in 1999 through

multinational corporations. Multinationals can affect communities in different locations and

areas. Firstly, they seek to establish or contract manufacturing, service and sales operations

in countries and regions where they can exploit the cheapest labor and the cheapest

resources.

Although this can mean wealth brought to the respective community, this form of

globalization produces significant inequalities, because it can also mean unemployment in

communities where they have been located previously. The remuneration paid in the new

locations can be minimal and the rights and working conditions of the employees can be

bad.

For example, Naomi Klein showed that in 1998, a review of economic zones,

especially in China, showed that workers for the companies Ralph Lauren, Adidas and Nike

are paid 13 cents per hour, whereas the salary that can ensure living in that area was 87

cents per hour, and in the USA a similar worker receives $10 per hour.

Secondly, multinationals are looking for new and untapped markets, they

sometimes seek to increase sales by creating needs in various target groups. An example is

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the activity of tobacco companies in the countries of the southern hemisphere. Another

example is the development of markets populated predominantly by children and young

people. In fact, the market of products and services for children and young people has

grown to be one of the most profitable and influential sectors.

It is obvious that there is a profound effect on the rise, how we view childhood

(especially in the Nordic countries and the developed ones) increases the product of the

culture of the media consumer. This culture is supported through a direct contribution of

the children, the so-called "Third World". Using various media, commodities have become

the center of youth life in the West, building their identity and relationships, their emotional

and social universe.

Adults and schools positioned negatively in this extended matrix , where the

pleasure and power of youth are constructed in such manner as to take place away from

adults and schools, and mainly this could happen with the help of goods. Of course such

goods used in everyday life are almost new. Writers like Erich Fromm commented on the

phenomenon even in the early 1950.

There was obviously an acceleration and intensification (and globalization)

significant, parallel to the advent of brands, with a focus on the conditioning of children

and young people to build identity around these brands.

Thirdly, and related to the above, one can sense the erosion of the public space by

corporate activities. A significant area of pleasure, for example, moved to associative

forms, such as clubs and commercial activities. Young people are increasingly excluded

from public spaces and schools as long as they are offered the opportunity to waste their

time in relative safety, to work with mentors and to develop their talents and sense of self-

worth. Like the concept of citizenship itself, the recreational spaces are now privatized, in a

bold attempt to make profit. Youth centers, public parks, basketball or streets where the

children played ball came out of the sphere of interest. The play areas are now rented to the

highest price bid.

This situation has been well documented in the U.S. (especially by the analyst

Robert Putnam) and found a profound implication in the quality of life of the communities

and in the wellbeing experienced by these people.

Fourthly, multinationals can have a significant influence in shaping policies in

many national and transnational government bodies, such as the EU and WB, both key

players in the globalization process. They took advantage of privatization and opening of

the services.

George Monbiot has shown that, analyzing the situation in the UK, for example

the hospitals, the roads and the prisons were deliberately tailored to meet corporate

demands rather than people's needs.

Biotechnology companies have sought to transform food chains in a controllable

good and have now a very strong and influencing link with government agencies and

government ministers. Corporations have become key factors in the decision making

process in the EU and, with the help of the British government, as shown in George

Monbiot’s articles, they began to develop a transatlantic single market, controlled and

managed by the executive heads of the corporations.

While national governments power over the globalization of macro-economical

forces was limited in the past years, the services and support given to the citizens was seen

as a significant opportunity by the corporations.

In addition, national governments do have a considerable influence in the

international organizations and therefore have become the target of the multinational

companies acting in this arena.

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The growth of multinationals and the globalization of their impact have

determined the advent of brands. The astronomical growth of wealth and cultural influence

of multinational companies over the past 15 years can be attributed to an idea developed by

the management theorists of the 80s: successful corporations must first produce brands, as

opposed to products. As Naomi Klein suggested, brand makers are primarily producers of

the so-called knowledge/ skills economy.

One of the key elements that make companies multinational rather than

transnational, is the expansion into what they regard as external sources of materials,

components and services. The logical connection is that all corporations should not spend

their finite resources in plants that can not keep on equipments that wear out and on

employees that age and die, but they should focus instead their resources on virtual bricks

and mortar, in order to build brands.

Nike, Levi's, Coca Cola and other large companies spend huge sums in order to

promote and support their brands. One strategy is to try and establish a specific brand as an

integral part of what people understand or want to see. As we have already seen, regarding

the operations of multinational companies, they have a major impact on children and youth

and on education. It is an attempt to "own the young".

Significantly, focusing on the brand rather than on the intrinsic qualities of the

product, also favors the multinational companies given the development conditions of the

market similar to the Achilles’ heel. Brand damage disproportionately affect sales and

profitability in various areas where that specific brand exists.

If a brand becomes associated with failure and disgrace (eg a famous athlete that

was used to promote their brand is exposed as a drug user or when the brand becomes

associated with child exploitation) companies face major problems on the market. For a

brand, the image is everything.

Significant approaches

Majid Tehranian defines globalization as a process that began more than 5000

years ago but was significantly accelerated after the fall of the Soviet Union, in 1991. The

elements of globalization include capital, labor, management, news, images, all transporter

information. The main drivers of globalization are multinational corporations, transnational

media organizations, intergovernmental organizations, non-governmental organizations and

alternative governmental organization. From humanistic perspective, the globalization

implies both negative and positive consequences: narrows and widens the gap between

nations, increases and decreases the political domination, smoothes and multiplies the

cultural identities.

George Modelski has an interactive conception of globalization, and sees

globalization as a process with four dimensions: the economic globalization, the forming of

world opinion, the democratization and the political globalization. Any change in one of

these four dimensions determines changes in the other dimensions.

Christopher Chase-Dunn brings, since the late 80s, a new term that enters the

popular discourse: globalization. Instead of clarifying the world development problems, the

term seemed rather to cause confusion and misunderstandings.

There are at least five different dimensions of the globalization that need to be

distinguished: the economic globalization, the political globalization, the common

ecological constraints, the cultural institutions and values and the globalization of the

communication.

While the early popular discourse on globalization appeared to suggest - at least

implicitly - that the globalization and the global growth are in tandem, a closer look reveals

Revista Română de Statistică – Supliment Trim IV/2012 145

that some aspects of the globalization become more pronounced in the long run phases of

growth (1973 - 1992) in comparison with the initial term (1950-1973). Words like "uneven"

and "limits" have begun to appear increasingly in the titles of academic papers on

globalization. This reflects not only a critical position but the obvious need for a clear

theorizing and an empirical research.

Jeffrey Hart identified five concepts represented by the globalization: 1. The

existence of a global infrastructure, 2. The global harmonization or convergence of

important characteristic 3. The lack of borders 4. The global Diffusion of initially localized

phenomena and 5. The geographic dispersion of core skills in the highest and most

desirable activities. These concepts form a whole in which human society develops.

Jerry Bentley says that for a general definition that would be applicable to all

relevant places and moments it is necessary to analyze the periods and to identify the

dynamics. Some notable turning point in the history of globalization include among others:

the migration of Homo erectus, somewhere between 500,000 and 1,000,000 years ago, the

domesticating of the horses and the invention of sailing, around 4000 BC, the invention of

the wheel, 3500 BC, the domesticating of the camel, after 3000 BC, the establishing of

maritime corridors in the Indian Ocean, after 500 BC, the opening of the silk road, around

200 BC, the establishing of a permanent contact between Eastern and Western hemisphere

and the Oceania, after 1492, the establishing of international trade companies, after 1600,

the development of modern transportation and of communication technologies, after the

industrialization, and the emergence of transnational corporations and of the integrated

global economy, in the twentieth century.

Zdravko Mlinar brings to the forefront the idea of the existence of a pattern in the

historical changes when he characterizes the process that avoids the differences between

open end transformation and repeatable and predictable sequences. Everything comes back

again in the evolution of the society, according to this pattern, but on another level on the

evolutionary ladder. Myself, the author of this paper, on the issue of the definition of

globalization, is that globalization is an extremely complex social phenomenon that has five

vectors (components) through which it exerts its action on a local, regional or transnational

community: the economic vector, the political vector , the religious vector, the cultural and

the military vector.

The five vectors are divided into active components - the economic and military

vectors, in latent components - the religious and cultural vectors, and a mixed composition -

the political vector. The theory presented by the author is based on the concept that the

globalizing force/society and force / globalized society interact continuously, and the result

of this continued interaction has a direct influence in both directions, both on the

globalizing society /community and on the globalized society / community.

Conclusions.

Some commentators say that there is no serious problem against globalization but

against a certain type of globalization imposed by the global financial elite. The gap

between rich and poor became considerably. However, to see globalization rather as

Western imperialism of ideas and beliefs (as rhetorically suggested often) would be a

serious and costly mistake.

Of course there are issues of globalization, issues that links it to the imperialism

(history of conquest, colonialism and hostile/foreign ruling remain relevant even today, in

many ways) and to the understanding of the postcolonial world. Globalization has its

merits. Therefore it would be a mistake to regard globalization as a kind of imperialism.

Globalization is a far larger and more complex process than that.

146 Revista Română de Statistică – Supliment Trim IV/2012

For example, while wealth and power of the multinationals seems to have

increased significantly, neither they nor national governments have so much control over

macro-economic forces as they would like. Environmental and technological risks have

multiplied. Globalization, in the sense of connectivity to the global economic and cultural

life, brings with it a different order than what it was before.

As I said at the beginning, the communication and exchange rate, the complexity

and size of the networks involved and the volume of trade, interaction and risk have made

globalization a strange force. All of this raises many questions for educators, leaders and

opinion makers. The emphasis of the expanding tendencies of the businesses beyond the

national borders is one of the main manifestations of the globalization. Every state wants to

achieve improved growth potential, both by developing the domestic markets and by

developing new markets.

By increasing the efficiency of use of the multinational operating system a

coherent management of the existing national resources is reached, but at the same time, we

can address directly the management of the existing and available resources in other

geographical areas. Social and economic movements of the early millennium, brought

strongly to the attention of sociologists, politicians, decision-making groups, the need for

new attitudes towards globalization. The phenomenon began to be perceived in all its

complexity, by everyone involved in the political, social and economic-financial

management systems, as an inevitable phenomenon, characteristic of our modern era, and

most importantly, we began to analyze more attentively the function of regulating the

development of modern human society that globalization exerts.