A Brief Description of Globalization

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The term “globalization” has become a catchall term for all manner of political, economical , social, environmental, and cultural change. In Defense of Globalization, Jagdish Bhagwati , the term “globalization” refers to the liberalization of trade and trade barriers between countries and corporations. Despite its elusive definition, or perhaps because of it, globalization has acquired many critics in the past decade or so. Globalization is certainly the buzzword of the new millennium.

The nature and impact of globalization has been the subject of profound debate and concern in economic circles since the mid-1990s. The controversy surrounding the on-going debates about globalization is whether unfettered market forces will further diverge or converge income the world over. On the one hand, proponents of globalization say it has promoted information exchange, led to a greater understanding of other cultures, raised living standards, increased purchasing power (most especially in the west) and allowed democracy to triumph over communism. 1) On the other hand, opponents of globalization, such as those who protested against the ministerial meetings of the World Trade Organization (WTO) in Seattle and most recently in Quebec City, say the West’s gain is at the expense of developing countries. These opponents charge that globalization is synonymous with imperialism and does little more than encourage corporations to relocate factories to countries with the cheapest labor and the weakest environmental laws. (2) They further argue that, “even in the developed world, not everyone has been a winner.

The freedoms granted by globalization are leading to increased insecurity in the workplace. Unskilled workers in particular are under threat as companies shift their production lines overseas to low-wage economies. “(3)Mainstream economic thought promises that globalization would lift the poor above poverty, dissolve dictatorships, protect the environment, integrate cultures, and most importantly, reverse the growing economic gap between rich and poor countries of the world.

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Everyday we hear it on the news,read it in the papars, overhear people talking about it and in every single instance the world globalization seems to have a different meaning. Globalization is considered by many to be the inevitable wave of the future. It is primarily an economic phenomenon and involves the increasing interaction and integration of national economic systems through growth in international trade, investments and capital flows. Globalization is a hard term to define. It’s more than just a single thing; it’s a way of life.

It is fast becoming the way of life for everyone on the planet whether they like it or not. People around the globe are more connected to each other than ever before. Globalization means free movement of goods, service, people and information across the national borders. It also destroys the environment, sweeping away all that is healthy and meaningful to human existence. Globalization is a series of social, economical, technological, culture, and political changes that promote interdependence and growth.

There are heated debates about globalization and its positive and negative effects. While globalization is thought of by many as having the potential to make societies richer through trade and to bring knowledge and information to people around the world, there are many others who perceive globalization as contributing to the exploitation of the poor by the rich, and as a threat to traditional cultures as the process of modernization changes societies. There are some who link the negative aspects of globalization to terrorism.

To put a complicated discussion in simple terms, they argue that exploitative or declining conditions contribute to the lure of informal “extremist” networks that commit criminal or terrorist acts internationally. And thanks to today’s technology and integrated societies, these networks span throughout the world. It is in this sense that terrorism, too, is “globalized. ” The essays in this section address some of the complex questions associated with globalization in light of September 11.

Before moving to these essays, consider the discussion below about some of the economic, political, social and cultural manifestations of globalization Globalization integrates global economy in a way which exerts influence on both economic and social relations among the countries of the world. Some critics say that Globalization has come to defend the interest of the developed countries only. If Globalization is imposed upon a properly educated and properly trained labour force in an appropriate system it will lead to development and progress.

If the developed and developing nations work together on terms of solidarity,equity and justice the process of Globalization will make our world a better place to live in. At a business level, the process of globalization is when companies decide to take part in the emerging global economy and establish themselves in foreign markets. They adapt their products or services to the linguistic and cultural requirements of different nations. Then, they might take advantage of the Internet revolution and establish a virtual presence on the international marketplace. More and more companies do their business online.

E-commerce has changed traditional business practices by providing direct international access to information and products. A term that has caused great controversy throughout the world regarding financial flow and trade is globalization. Globalization is defined as the integration of the global economy. The term globalization usually refers to economic matters , however there is a wave of effects that makes the impact of globalization broader culturally and socially. Cultural, ideas and customs soon follow shortly after the exchange of goods cross-national boarders (Kluver).

For example, international trade has caused the spread of most religions, such as Christianity, to Central Asia, Eastern Europe, and America. According to Joel Krieger, globalization will always have strict opponents that are not able to see the way globalization gives some people their initial opportunity to fulfill basic dreams and desires. The name for our present era is slowly becoming known as “the age of globalization”. But not all people feel that globalization is a good thing. There is a heated debate between the pros and cons of globalization going on in our present society.

In one sense, globalization needs no defense; it is simply what’s happening. As a result of new transportation and information technologies, international commerce, travel, communication, and cultural exchange have expanded very rapidly in the last half century, virtually everywhere. Few people oppose this. Only a special kind of globalization is controversial: the creation of international agreements, regional or global, that provide businesses a uniform operating environment, or something pretty close. This means, in the first place, no “protectionism”: ie, prohibitive tariffs or quotas on imports.

In practice, it also frequently means that no country can enforce labor, environmental, occupational-safety, or consumer-protection laws that are stronger than the weakest ones in any of the other countries that have signed the agreement. Further, governments may not subsidize domestic industries, whether to shield them from foreign competition or to keep prices low enough for poor citizens to afford. Some of the positive aspects of Globalization are: As more money is poured in to developing countries, there is a greater chance for the people in those countries to economically succeed and increase their standard of living.

Global competition encourages creativity and innovation and keeps prices for commodities/services in check. Developing countries are able to reap the benefits of current technology without undergoing many of the growing pains associated with development of these technologies. Governments are able to better work together towards common goals now that there is an advantage in cooperation, an improved ability to interact and coordinate, and a global awareness of issues. There is a greater access to foreign culture in the form of movies, music, food, clothing, and more.

In short, the world has more choices. Some of the negative aspects are: Outsourcing, while it provides jobs to a population in one country, takes away those jobs from another country, leaving many without opportunities. Although different cultures from around the world are able to interact, they begin to meld, and the contours and individuality of each begin to fade. There may be a greater chance of disease spreading worldwide, as well as invasive species that could prove devastating in non-native ecosystems.

There is little international regulation, an unfortunate fact that could have dire consequences for the safety of people and the environment. Large Western-driven organizations such as the International Monetary Fund and the World Bank make it easy for a developing country to obtain a loan. However, a Western-focus is often applied to a non-Western situation, resulting in failed progress. The idea of Globalization came into practice onlu in the last decade thought the idea was old. The world has come closer with the development of hi-tech communication media and rapid transport facilities.

We can learn instantly what is happening in the remotest corner of the world. We are also able to go to any country in the shortest possible time. This how countries of the world are like families in village. However, as a result of Globalization, capitalist countries are enjoying more opportunities by exploiting the poor countries. The main cause of globalization is influence from other, more developed, countries. Globalization is a historical process that results fron human innovation and technological progress. One of the benefits of globalization on a social level is an increased Human Development Index.

The Human Development Index is a measurement of a country’s social, political, and economical growth in comparision to other countries in the world. The Human Development Index rates each country with a score between 0 and 1, with 1 being the most advanced, globalized country. Factors that are involved in determining a country’s HDI are gross domestic production per capita, life expectancy at birth, adult literary, and the number of persons enrolled in educational institution. Globalization is not an overnight solution to all of the world’s problems.

In fact, technology is always evolving so globalization will always be evolving as well. Skeptics of globalization argue that it is causing the world to conform to American standards, that there is a loss of culture associated with globalization, and many people in the countries being globalized do not want it to happen. No one should ever argue that globalization is perfect, because it is not. It is often better to rid a country of certain cultures that are immoral and wrong, especially those cultures which the government forces onto its people.

Globalization encourages independence and choices for all citizens. Globalization in Peru has met resistance from some of the citizens. Changes caused by globalization are not always viewed as positive changes. For example, women’s liberation in Peru was not embraced by some male chauvinists who believed that the only place for a woman is in the home, as a wife and a mother. Another example of people not embracing globalization is when the poverty level decreased and more people moved into the middle class, then members of the wealthy upper class responded with protests.

Many of the members of the wealthy upper class opposed the influences of globalization when those influences began narrowing the gap between the social classes. Although globalization may not be the perfect solution to end all of the world’s problems, it is a good start. Countries that embrace globalization, such as Peru, have benefited tremendously. Globalization is good for a country’s economy, politics, and most importantly for its people. Globalization has contributed to the reduction of poverty, increased literacy rate, and the liberation of women.

The effects of globalization can be recognized in Peru and all around the world, when technological knowledge is spread, free trade is encouraged, and political or social liberation is achieved. In the most general sense, free trade refers to the process in which goods and services, including capital, move more freely within and among nations. As free trade advances, national boundaries become more porous and less relevant. Throughout history, adventurers, generals, merchants, and financiers have constructed a more global economy.

Indeed , globalization is the most popular trend in international economics . Increasing integration of world markets and exchanges of information and technology are definitely expected to help the developing world . Thus , the thesis of Bhagwati ‘s book , In Defense of Globalization , must be agreed with . After all , foreign direct investments are an extraordinary boost for the economies of the developing world . Moreover , by importing and exporting more goods and services than before , a developing nation may very well increase its income and also improve the standard of living of its peoples .

However an increase in international trade is usually accompanied by an increase in income inequality , seeing that the majority of the people in developing nations are poor and cannot afford to purchase relatively expensive foreign goods in the local market , nor form gigantic enterprises to sell to the foreign public Furthermore , globalization involves the risk of foreign companies taking advantage of the undeveloped regulatory structures in developing nations . As an example , a foreign water company in Argentina , after the mass privatization of Argentinian business , was said to have been very ethical before it entered Argentina .

The company had connections with France and the United States . All the same , the company turned to poor service in Argentina soon after privatization . The water company was eventually taken over by the government for its careless , irresponsible behavior. Globalization is the process by which decision and activities in one part of the world have significant consequences for individuals and communities in distant areas. Steps taken in this direction: (a) The Government has removed the restrictions on import of foreign goods. b) The Government has also reduced taxes on imported goods,so that the people can afford it . This has completely destroyed the monopoly of some companies in our country. (c) The Government started to encourage the foreign companies to invest in Indian companies or encourage the foreign investors to invest in India directing and guiding them the areas of profit. (d) Mobilisation of capital and resources. (e) Mobilisation of labour force. (f) As a result of the above steps taken there is remarkable increase in foreign investment capitals. g) This foreign investment or capital boosted the Indian industries and resulted the growth of Indian economy. Globalization can be defined as the gradual reduction of regional contrasts at the world scale, resulting from increasing international culture, economic, and political exchanges. Being a core factor for economic improvement in the 21st century, globalization cannot be and should not be stopped. In particular, globalization opens doors for countries inworld trade, communication technology and tourism.

Globalization has various aspects which affect the world in several different ways: * Industrial: In the 19th century globalization approached its modern form. Industrialization allowed cheap production of household items using economies of scale while rapid population growth created sustained demand. Globalization in this period was decisively shaped by nineteenth-century imperialism. After the First and Second Opium Wars and the completion of England’s conquest of India, vast populations became ready consumers of European exports.

Parts of sub-Saharan Africa and the Pacific islands were incorporated into the world system. Meanwhile, the conquest of new parts of the globe, notably sub-Saharan Africa, by Europeans yielded valuable natural resources such as rubber, diamonds and coal and helped fuel trade and investment between the European imperial powers, their colonies, and the United States. * Financial: Globalization is the process by which countries’ economies become increasingly interwoven. This happens with the increased flow of goods (trade), foreign direct investment, money (finance), and/or people (migration).

While globalization is not new, the speed, depth, and scope of the changes on the globalization are novel by technology. In theory, financial globalization can help developing countries to better manage output and consumption volatility. Indeed, a variety of theories imply that the volatility of consumption relative to that of output should decrease as the degree of financial integration increases; the essence of global financial diversification is that a country is able to shift some of its income risk to world markets.

Since most developing countries are rather specialized in their output and factor endowment structures, they can, in theory, obtain even bigger gains than developed countries through international consumption risk sharing—that is, by effectively selling off a stake in their domestic output in return for a stake in global output. In short, although financial globalization can, in theory, help to promote economic growth through various channels, there is as yet no robust empirical evidence that this causal relationship is quantitatively very important.

This points to an interesting contrast between financial openness and trade openness, since an overwhelming majority of research papers have found that the latter has had a positive effect on economic growth. * Economic: Increasingly over the past two centuries, economic activity has become more globally oriented and integrated. Some economists argue that it is no longer meaningful to think in terms of national economies; international trade has become central to most local and domestic economies around the world.

The recent focus on the international integration of economies is based on the desirability of a free global market with as few trade barriers as possible, allowing for true competition across borders. Many economists assess economic globalization as having a positive impact, linking increased economic transactions across national borders to increased world GDP, and opportunities for economic development. Still, the process is not without its critics, who consider that many of the economies of the industrial North (i. e. , North America, Europe, East Asia) have benefited from globalization, while in the past two decades many semi- and on-industrial countries of the geo-political South (i. e. , Africa, parts of Asia, and Central and South America) have faced economic downturns rather than the growth promised by economic integration. The world economic market depends on the flow of imports and exports between developed and developing nations. Throughout history, developing nations are faced with the lack of capital for the internal development of their country. The United States has an extremely large amount of capital invested into the World Bank, and is therefore a major instrument in determining the actions and procedures taken by the IMF and World Bank.

Capitalism motivates corporations towards countries that provide the most labor or resources at the cheapest cost. Corporations have changed the employment structure in developing nations. Prior to development, men and women relied on agricultural production as their main source of occupation * Politics: Globalization has impacts in the political arena, but there is not a consensus among social scientists about the nature and degree of its impact on national and international politics.

Some political scientists argue that globalization is weakening nation-states and that global institutions gradually will take over the functions and power of nation-states. Other social scientists believe that while increased global inter-connectivity will result in dramatic changes in world politics, particularly in international relations (i. e. , the way states relate to each other), the nation-state will remain at the center of international political activity.

At political and economic level, globalization is the process of denationalization of markets, politics and legal systems , it is the rise of global economy. Many international organizations, governmental institutions and the whole academic world discuss the consequences of this political and economic restructuring on local economies, human welfare and environment. It is one of the most important features of present world. * Informational: Process by which the experience of everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world.

Factors that have contributed to globalization include increasingly sophisticated communications and transportation technologies and services, mass migration and the movement of peoples, a level of economic activity that has outgrown national markets through industrial combinations and commercial groupings that cross national frontiers, and international agreements that reduce the cost of doing business in foreign countries.

Globalization offers huge potential profits to companies and nations but has been complicated by widely differing expectations, standards of living, cultures and values, and legal systems as well as unexpected global cause-and-effect linkages. * Competition: Globalization have increased Competition faced by many Enterprises. It is a great pleasure to be able to speak to you today on globalization of competition, a topic which has taken on considerable importance in recent years. Just a few years ago it would have been hard to imagine international issues exciting so much interest in the competition and trade communities.

Yet, this decade have seen the successful conclusion of the Uruguay Round and the resulting reduction of state imposed barriers to trade to an all time low – where they exist at all. It is right in this context that we should identify and examine other areas of state and private behaviour which might limit the benefits of this liberalization. * Ecological: ‘Ecological Globalization’ refers to the collective impact that the diverse processes of Globalization have on the health of the planet’s natural systems.

Due to globalization, goods, money, people, ideas, along with pollution, are traveling around the world at unprecedented speed and scale. The global commons including the atmosphere and the oceans is under severe environmental assault. Globalization of commerce has further internationalized environmental issues, with trade in natural resources like fish and timber soaring. The large-scale consumerism has brought the mankind at a stage where our needs have gone beyond the means to fulfill them.

In our desire to reach the maximum production limit, we have started borrowing from the resources meant for future, which we know very well that we cannot repay. We are using all those resources, which are in fact the future generation’s property. Natural resources are meant not only for the utilization of the present generation but also by the future generation. Environmental problems are climbing ever higher on the international political agenda, at times preoccupying diplomats almost as much as arms control negotiations did during the cold war.

Environmental issues have also become acrimonious in North South relations, with rich and poor countries divided over how apportion responsibility for reversing the planet’s ecological decline. Under these circumstances, ‘Distributive Justice’ shall be the guiding principle for protection and equitable sharing of the environment and natural resources of the present and future generations, since everyone is entitled to equal access to clean and healthy environment necessary for living in a humane way.

Thomas Friedman, journalist, author and proponent of economic globalization, quoted in a New York Times article, would seem to agree: “For globalism to work, America can’t be afraid to act like the almighty superpower that it is… The hidden hand of the market will never work without a hidden fist–McDonald’s cannot flourish without McDonnell Douglas, the designer of the F-15. And the hidden fist that keeps the world safe for Silicon Valley’s technologies is called the United States Army. ” * Cultural: Historical traditions in Peru have dictated that women are only allowed to work menial jobs that pay poorly.

Women were not giveb the opportunity to seek an education or to have a career. The spread of globalization has caused an increased number of opportunities for women to pursue an education or a career. In the last few decades, women have been encouraged to fight for equal rights. The culture of female employment in developing nations is based on “formal labor, housework, and informal-sector production” (Ward 1990). Only a small proportion of women work in export factories compared to the entire female population. Most work in agriculture, perform housework, or are employed in the informal sector.

Females in these nations are limited in society by patriarchal control. These societies claim that female labor is an extension of their household chores. This ideology is “interwoven in the capitalist economy to justify women’s subordination on the global assembly line, in the home and informal sector” (Ward 1990). Regardless of which sector of employment women are working in, they are given limited access to resources and authority over their work * Social:  The past two decades have seen an internationalization of information services involving the exponential xpansion of computer-based communication through the Internet and electronic mail. On the one hand, the electronic revolution has promoted the diversification and democratization of information as people in nearly every country are able to communicate their opinions and perspectives on issues, local and global, that impact their lives. Political groups from Chiapas to Pakistan have effectively used information technology to promote their perspectives and movements. On the other hand, this expansion of information technology has been highly uneven, creating an international “digital divide” (i. e. differences in access to and skills to use Internet and other information technologies due predominantly to geography and economic status). Often, access to information technology and to telephone lines in many developing countries is controlled by the state or is available only to a small minority who can afford them. The contemporary revolution in communication technology has had a dramatic impact in the arena of popular culture. Information technology enables a wide diversity of locally-based popular culture to develop and reach a larger audience. For example, “world music” has developed a major international audience.

Old and new musical traditions that a few years ago were limited to a small local audience are now playing on the world stage. * Technical: In the last few years, too many heterogeneous phenomena have been lumped together under the label of ‘globalisation of technology’, and the concept has thus lost much of itssignificance. We thus attempted [17,18] to find our way in such labyrinth by identifying three main categories: 1. The international exploitation of nationally produced technology; 2. The global generation of innovation; 3. Global technological collaborations. Developing countries are not automatically excluded from the advantages.

They can benefit from globalisation of technology if they implement active policies designed toincrease learning and improve access to knowledge and technology [39]. A few success caseshave been pointed out here. A larger number of successful cases are presented by Conceic? a? oet al. We are aware that these cases, unfortunately, represent an exception, not the rule,and that huge parts of the world are not benefiting yet from the opportunities offered bytechnological change and its globalisation. However, the few success stories can beinstructive in order to indicate a suitable development strategy. Legal: To speak of the globalization of domestic constitutional law is to suggest that these and other traditions of exceptionalism are likely to weaken over time. The suggestion differs from the claim that nations will gradually but inevitably abandon authoritarianism for rule of law constitutionalism. It is weaker than the latter claim because the globalization processes I identify are limited to nations that compete internationally for investment and human capital with classes of lawyers able to assert some autonomous pressure on a nation’s government.

My claim is stronger, however, because I use the term “globalization” to suggest convergence among national constitutional systems in their structures and in their protections of fundamental human right. The establishment of the WTO in 1995 led to an anti-globalization movement that was primarily concerned with the negative impact of globalization in developing countries. Their concerns ranged from environmental issues to issues like democracy, national sovereignty and the worker exploitation.

Opponents in developed countries were disproportionately middle-class and college-educated. This contrasted sharply with the situation in developing t countries, where the anti-globalization movement was more successful in enlisting a broader group, including millions of workers and farmers. “Anti-globalization” activities include attempts to demonstrate sovereignty, practice democratic decision-making, restrict the international transfer of people, goods and disfavored beliefs, particularly free market deregulation.

Naomi Klein argued that the term could denote either a single social movement or encompass multiple social movements such as nationalism and socialism. Hirst and Thompson reject the term as too vague. Podobnik states that “the vast majority of groups that participate in these protests draw on international networks of support, and they generally call for forms of globalization that enhance democratic representation, human rights, and egalitarianism”.

The anti-globalization movement developed in opposition to the perceived negative aspects of globalization. The term ‘anti-globalization’ is in many ways a misnomer, since the group represents a wide range of interests and issues and many of the people involved in the anti-globalization movement do support closer ties between the various peoples and cultures of the world through, for example, aid, assistance for refugees, and global environmental issues.

According to the foregoing analysis, globalization is not merely an intensification of global interconnectedness brought about by market forces and technological change. Rather, it is a worldview shaped by capital and hegemonic power that aspires to establish a global system in line with the interests of capital. Capitalism, as a market-oriented system of production, has an inherent globalizing tendency. However, capitalism is not always characterized by the level of adherence to the liberal principles that globalization represents.

In E. M. Wood’s penetrating analysis, globalization represents a new phase of capitalism that is more universal, more unchallenged, more pure, and more unadulterated, than ever before. Bhagwati’s last point seems to me much more significant. If tariffs and other trade restrictions are imposed, people trying to divert these gains to themselves may spend immense resources. Such resources make no apparent contribution to production. References: (1). ^ Friedman, Thomas L. “The Dell Theory of Conflict Prevention”. Emerging: A Reader.

Ed. Barclay Barrios. Boston: Bedford, St. Martins, 2008. 49 (2). ^ IMF Team. (2000). ‘Globalization: Threats or Opportunity. ‘ 12th April 2000, IMF Publications. http://www. imf. org/external/np/exr/ib/2000/041200. htm ; Also see, Catarina Kinnvall & Kristina Jonsson (edited). (2002). Globalization & Democratization in Asia: The Construction of Identity. London: Routledge. P. 249-263. (3). ^ See Conversi, Daniele (2010) ‘The limits of cultural globalisation? ‘, Journal of Critical Globalisation Studies, 3, pp. 36–59. 4). ^ “Globalisation shakes the world”. BBC News. 21 January 2007. (5). ^ Culture and Globalization: Center for Global Studies at the University of Illinois (6). ^ McAlister, Elizabeth. 2005. “Globalization and the Religious Production of Space. ” Journal for the Scientific Study of Religion, Vol. 44, No 3, September 2005, 249–255. (7). ^ John Parker, Burgeoning bourgeoisie, A special report on the new middle classes in emerging markets. The Economist . 12 Feb 2009. http://www. economist. com/node/13063298? tory_id=13063298&source=hptextfeature (8). ^ Carol Graham “Winners and Losers: Perspectives on Globalization from the Emerging Market Economies” Brookings. Saturday 1 January 2011http://www. brookings. edu/articles/2001/fall_globaleconomics_graham. aspx (9). ^ Gordon, Philip. 2004. “Globalization: Europe’s Wary Embrace”. Yale Global, 1 November 2004. http://yaleglobal. yale. edu/content/globalization-europes-wary-embrace (10). ^ Steger, Manfred. Globalization. New York: Sterling Publishing, 2009.