The Globalization System

SUBMITED BY:
Dan Radjib Lazaro
BPA –IV-B
Is the process of interaction and integration among people, companies, and
governments worldwide. As a complex and multifaceted phenomenon, globalization is
considered by some as a form of capitalist expansion which entails the integration of local and
national economies into a global, unregulated market economy.
Etymology and usage
The term globalization derives from the word globalize, which refers to the emergence of an
international network of economic systems. One of the earliest known usages of the term as a
noun was in a 1930 publication entitled Towards New Education, where it denoted a holistic
view of human experience in education. The term 'globalization' had been used in its economic
sense at least as early as 1981, and in other senses since at least as early as 1944.
Theodore Levitt is credited with popularizing the term and bringing it into the mainstream
business audience in the later half of the 1980s. Since its inception, the concept of globalization
has inspired competing definitions and interpretations. Its antecedents date back to the great
movements of trade and empire across Asia and the Indian Ocean from the 15th century
onward. Due to the complexity of the concept, various research projects, articles, and discussions
often stay focused on a single aspect of globalization.
Sociologists Martin Albrow and Elizabeth King define globalization as "all those processes by
which the people of the world are incorporated into a single world society.” In The
Consequences of Modernity, Anthony Giddens writes: "Globalization can thus be defined as the
intensification of worldwide social relations which link distant localities in such a way that local
happenings are shaped by events occurring many miles away and vice versa.
Roland Robertson, professor of sociology at the University of Aberdeen and an early writer in
the field, described globalization as "the compression of the world and the intensification of the
consciousness of the world as a whole.
According to economic historians Kevin H. O'Rourke, Leandro Prados de la Escosura, and
Guillaume Daudin, several factors promoted globalization in the period 1815–1870
• The conclusion of the Napoleonic Wars brought in an era of relative peace in Europe.
• Innovations in transportation technology reduced trade costs substantially.
• New industrial military technologies increased the power of European states and the
United States, and allowed these powers to forcibly open up markets across the world and
extend their empires.
• A gradual move towards greater liberalization in European countries.
During the 19th century, globalization approached its form as a direct result of the Industrial
Revolution. Industrialization allowed standardized production of household items
using economies of scale while rapid population growth created sustained demand for
commodities. In the 19th century, steamships reduced the cost of international transport
significantly and railroads made inland transportation cheaper. The transport revolution occurred
some time between 1820 and 1850. More nations embraced international trade. Globalization in
this period was decisively shaped by nineteenth-century imperialism such as in Africa and Asia.
The invention of shipping containers in 1956 helped advance the globalization of commerce.

After World War II, work by politicians led to the agreements of the Bretton Woods Conference,
in which major governments laid down the framework for international monetary policy,
commerce, and finance, and the founding of several international institutions intended to
facilitate economic growth by lowering trade barriers. Initially, the General Agreement on Tariffs
and Trade (GATT) led to a series of agreements to remove trade restrictions. GATT's successor
was the World Trade Organization (WTO), which provided a framework for negotiating and
formalizing trade agreements and a dispute resolution process. Exports nearly doubled from
8.5% of total gross world product in 1970 to 16.2% in 2001. The approach of using global
agreements to advance trade stumbled with the failure of the Doha Development Round of trade
negotiation. Many countries then shifted to bilateral or smaller multilateral agreements, such as
the 2011 South Korea–United States Free Trade Agreement.
Archaic

The 13th century world-system, as described by Janet Abu-Lughod

Main article: Archaic globalization
Archaic globalization conventionally refers to a phase in the history of globalization including
globalizing events and developments from the time of the earliest civilization until roughly the
1600s. This term is used to describe the relationships between communities and states and how
they were created by the geographical spread of ideas and social norms at both local and regional
levels.
In this schema, three main prerequisites are posited for globalization to occur. The first is the
idea of Eastern Origins, which shows how western states have adapted and implemented learned
principles from the East. Without the spread of traditional ideas from the East, Western
globalization would not have emerged the way it did. The second is distance. The interactions of
states were not on a global scale and most often were confined to Asia, North Africa, the Middle
East, and certain parts of Europe. With early globalization, it was difficult for states to interact
with others that were not within a close proximity. Eventually, technological advances allowed
states to learn of others' existence and thus another phase of globalization can occur. The third
has to do with inter-dependency, stability, and regularity. If a state is not dependent on another,
then there is no way for either state to be mutually affected by the other. This is one of the
driving forces behind global connections and trade; without either, globalization would not have
emerged the way it did and states would still be dependent on their own production and resources
to work. This is one of the arguments surrounding the idea of early globalization. It is argued that
archaic globalization did not function in a similar manner to modern globalization because states
were not as interdependent on others as they are today.
Also posited is a "multi-polar" nature to archaic globalization, which involved the active
participation of non-Europeans. Because it predated the Great Divergence in the nineteenth
century, where Western Europe pulled ahead of the rest of the world in terms of industrial
production and economic output , archaic globalization was a phenomenon that was driven not
only by Europe but also by other economically developed Old World centers such as Gujarat ,
Bengal, coastal China, and Japan.

Portuguese Carrack in Nagasaki, 17th-century Japanese Nanban art

The German historical economist and sociologist Andre Gunder Frank argues that a form of
globalization began with the rise of trade links between Sumer and the Indus Valley Civilization
in the third millennium BCE. This archaic globalization existed during the Hellenistic Age when
commercialized urban centers enveloped the axis of Greek culture that reached from India
to Spain, including Alexandria and the other Alexandrine cities. Early on, the geographic
position of Greece and the necessity of importing wheat forced the Greeks to engage in maritime
trade. Trade in ancient Greece was largely unrestricted: the state controlled only the supply of
grain.
The Silk Road in the 1st century

Native New World crops exchanged globally Maize, tomato, potato, vanila rubber, cacao tobacco
Trade on the Silk Road was a significant factor in the development of civilizations from China,
India Subcontinent Persia Europe and Arabia opening long-distance political and economic
interactions between them. Though silk was certainly the major trade item from China common
goods such as salt and sugar were traded as well; and religion syncretic philosophies, and various
technologies, as well as syncretic also traveled along the Silk Routes. In addition to economic
trade, the Silk Road served as a means of carrying out cultural trade among the civilizations
along its network. The movement of people, such as refugees, artists, craftsmen, missionaries,
robbers, and envoys, resulted in the exchange of religions, art, languages, and new technologies.

Modern
According to economic historians Kevin H. O'Rourke, Leandro Prados de la Escosura, and
Guillaume Daudin, several factors promoted globalization in the period 1815–1870

 The conclusion of the Napoleonic Wars brought in an era of relative peace in Europe.

 Innovations in transportation technology reduced trade costs substantially.

 New industrial military technologies increased the power of European states and the
United States, and allowed these powers to forcibly open up markets across the world and
extend their empires.
 A gradual move towards greater liberalization in European countries.

During the 19th century, globalization approached its form as a direct result of the Industrial
Revolution. Industrialization allowed standardized production of household items
using economies of scale while rapid population growth created sustained demand for
commodities. In the 19th century, steamships reduced the cost of international transport
significantly and railroads made inland transportation cheaper. The transport revolution
occurred sometime between 1820 and 185

World War II (often abbreviated to WWII or WW2), also known as the Second World War,
was a global war that lasted from 1939 to 1945. The vast majority of the world's countries—
including all the great powers—eventually formed two opposing military alliances:
the Allies and the Axis. A state of total war emerged, directly involving more than 100 million
people from more than 30 countries. The major participants threw their entire economic,
industrial, and scientific capabilities behind the war effort, blurring the distinction between
civilian and military resources. World War II was the deadliest conflict in human history, marked
by 70 to 85 million fatalities, most of whom were civilians in the Soviet Union and China. It
included massacres, the genocide of the Holocaust, strategic bombing, premeditated death
from starvation and disease, and the only use of nuclear weapons in war.
Economic globalization is the increasing economic interdependence of national economies
across the world through a rapid increase in cross-border movement of goods, services,
technology, and capital Whereas the globalization of business is centered around the diminution
of international trade regulations as well as tariffs, taxes, and other impediments that suppresses
global trade, economic globalization is the process of increasing economic integration between
countries, leading to the emergence of a global marketplace or a single world market. Depending
on the paradigm, economic globalization can be viewed as either a positive or a negative
phenomenon. Economic globalization comprises: globalization of production; which refers to the
obtainment of goods and services from a particular source from different locations around the
globe to benefit from difference in cost and quality. Likewise, it also comprises globalization of
markets; which is defined as the union of different and separate markets into a massive global
marketplace. Economic globalization also includes competition, technology, and corporations
and industries. Current globalization trends can be largely accounted for by developed economies
integrating with less developed economies by means of foreign direct investment, the reduction
of trade barriers as well as other economic reforms, and, in many cases, immigration. Before the
current phase of globalization, the United States of America was a dominant country which held
the essential economic power in world exports. But with the advent of globalization, Germany,
Japan, South Korea and China have significantly become serious counterparts by challenging the
position of America.

A foreign direct investment (FDI) is an investment in the form of a controlling ownership in

a business in one country by an entity based in another country. It is thus distinguished from a
foreign portfolio investment by a notion of direct control.
Immigration is the international movement of people to a destination country of which they are
not natives or where they do not possess citizenship in order to settle or reside there, especially
as permanent residents or naturalized citizens, or to take up employment as a migrant worker or
temporarily as a foreign worker

Country Permanent Residents Migrant Worker

Naturalized Employment Foreign Worker

As for economic effects, research suggests that migration is beneficial both to the receiving and
sending countries. Research, with few exceptions, finds that immigration on average has positive
economic effects on the native population, but is mixed as to whether low-skilled immigration
adversely affects low-skilled natives. Studies show that the elimination of barriers to migration
would have profound effects on world Gross domestic products (GDP)- s a
monetary measure of the market value of all the final goods and services produced in a specific
time period, often annually.
with estimates of gains ranging between 67 and 147 percent. Argue that reducing barriers to
labor mobility between developing countries and developed countries would be one of the most
efficient tools of poverty reduction.
Understanding of immigration
One theory of immigration distinguishes between push and pull factors. Push factors refer
primarily to the motive for immigration from the country of origin. In the case of economic
migration (usually labor migration), differentials in wage rates are common. If the value of
wages in the new country surpasses the value of wages in one's native country, he or she may
choose to migrate, as long as the costs are not too high. Particularly in the 19th century,
economic expansion of the US increased immigrant flow, and nearly 15% of the population
was foreign born thus making up a significant amount of the labor force. As transportation
technology improved, travel time, and costs decreased dramatically between the 18th and early
20th century. Travel across the Atlantic used to take up to 5 weeks in the 18th century, but around
the time of the 20th century it took a mere 8 days. When the opportunity cost is lower, the
immigration rates tend to be higher, Escape from poverty (personal or for relatives staying
behind) is a traditional push factor, and the availability of jobs is the related pull factor. Natural
disasters can amplify poverty-driven migration flows. Research shows that for middle-income
countries, higher temperatures increase emigration rates to urban areas and to other countries.
For low-income countries, higher temperatures reduce emigration.
Economic Migrant
The term economic migrant refers to someone who has travelled from one region to another
region for the purposes of seeking employment and an improvement in quality of life and access
to resources. An economic migrant is distinct from someone who is a refugee fleeing
persecution. Many countries have immigration and visa restrictions that prohibit a person
entering the country for the purposes of gaining work without a valid work visa. As a violation of
a State's immigration laws a person who is declared to be an economic migrant can be refused
entry into a country.
Laws and Ethics
Treatment of migrants in host countries, both by governments, employers, and original
population, is a topic of continual debate and criticism, and the violation of migrant human rights
is an ongoing crisis. The United Nations Convention on the Protection of the Rights of All
Migrant Workers and Members of Their Families, has been ratified by 48 states, most of which
are heavy exporters of cheap labor. Major migrant-receiving countries and regions including
Western Europe, North America, Pacific Asia, Australia, and the Gulf States have not ratified the
Convention, even though they are host to the majority of international migrant workers.
Although freedom of movement is often recognized as a civil right in many documents such as
the Universal Declaration of Human Rights (1948) and the International Covenant on Civil and
Political Rights (1966), the freedom only applies to movement within national borders and the
ability to return to one's home state
Economic Effects
A survey of leading economists shows a consensus behind the view that high-skilled immigration
makes the average American better off. A survey of the same economists also shows support
behind the notion that low-skilled immigration, while creating winners and losers, makes the
average American better off. A survey of European economists shows a consensus that freer
movement of people to live and work across borders within Europe makes the average European
better off, and strong support behind the notion that it has not made low-skilled Europeans worse
off. According to David Card, Christian Dustmann, and Ian Preston, most existing studies of the
economic impacts of immigration suggest these impacts are small, and on average benefit the
native population. In a survey of the existing literature, Örn B Bodvarsson and Hendrik Van den
Berg write a comparison of the evidence from all the studies makes it clear that, with very few
exceptions, there is no strong statistical support for the view held by many members of the
public, mainly that immigration has an adverse effect on native-born workers in the destination
country
Overall economic prosperity
Whereas the impact on the average native tends to be small and positive, studies show more
mixed results for low-skilled natives, but whether the effects are positive or negative, they tend
to be small either way. Immigrants may often do types of work that natives are largely unwilling
to do, contributing to greater economic prosperity for the economy as a whole: for instance,
Mexican migrant workers taking up manual farm work in the United States has close to zero
effect on native employment in that occupation, which means that the effect of Mexican workers
on U.S. employment outside farm work was therefore most likely positive, since they raised
overall economic productivity. Research indicates that immigrants are more likely to work in
risky jobs than U.S.-born workers, partly due to differences in average characteristics, such as
immigrants' lower English language ability and educational attainment. According to a 2017
survey of the existing economic literature, studies on high-skilled migrants "rarely find adverse
wage and employment consequences, and longer time horizons tend to show greater gains
Competition from immigrants in a particular profession may aggravate underemployment in that
profession but increase wages for other natives for instance, a 2017 study in Science found that
"the influx of foreign-born computer scientists since the early 1990s... increased the size of the
US IT sector... benefited consumers via lower prices and more efficient products... raised overall
worker incomes by 0.2 to 0.3% but decreased wages of U.S. computer scientists by 2.6 to 5.1%
A 2019 study found that foreign college workers in STEM occupations did not displace native
college workers in STEM occupations, but instead had a positive impact on latters' wages.
Inequality
Overall immigration has not had much effect on native wage inequality but low-skill
immigration has been linked to greater income inequality in the native population Greater
openness to low-skilled immigration in wealthy countries would drastically reduce global
income inequality.
Fiscal effects
A 2011 literature review of the economic impacts of immigration found that the net fiscal impact
of migrants varies across studies but that the most credible analyses typically find small and
positive fiscal effects on average. According to the authors, "the net social impact of an
immigrant over his or her lifetime depends substantially and in predictable ways on the
immigrant's age at arrival, education, reason for migration, and similar. According to a 2007
literature review by the Congressional Budget Office, Over the past two decades, most efforts to
estimate the fiscal impact of immigration in the United States have concluded that, in aggregate
and over the long term, tax revenues of all types generated by immigrants—both legal and
unauthorized—exceed the cost of the services they use.
Impact of refugees
A 2017 survey of leading economists found that 34% of economists agreed with the statement
The influx of refugees into Germany beginning in the summer of 2015 will generate net
economic benefits for German citizens over the succeeding decade", whereas 38% were
uncertain and 6% disagreed. Studies of refugees' impact on native welfare are scant but the
existing literature shows mixed results (negative, positive and no significant effects on native
welfare According to economist Michael Clemens, "when economists have studied past influxes
of refugees and migrants they have found the labor market effects, while varied, are very limited,
and can in fact be positive A 2018 study in the Economic Journal found that Vietnamese refugees
to the United States had a positive impact on American exports, as exports to Vietnam grew most
in US states with larger Vietnamese populations. A 2018 study in the journal Science
Advances found that asylum seekers entering Western Europe in the period 1985–2015 had a
positive macroeconomic and fiscal impact. A 2019 study found that the mass influx of 1.3
million Syrian refugees to Jordan (total population: 6.6 million) did not have harm the labor
market outcomes of native Jordanians.
Impact of undocumented immigrants
Research on the economic effects of undocumented immigrants is scant but existing studies
suggests that the effects are positive for the native population and public coffers. A 2015 study
shows that "increasing deportation rates and tightening border control weakens low-skilled labor
markets, increasing unemployment of native low-skilled workers. Legalization, instead,
decreases the unemployment rate of low-skilled natives and increases income per native. Studies
show that legalization of undocumented immigrants would boost the U.S. economy; a 2013
study found that granting legal status to undocumented immigrants would raise their incomes by
a quarter (increasing U.S. GDP by approximately $1.4 trillion over a ten-year period) A paper by
Spanish economists found that upon legalizing the undocumented immigrant population in
Spain, the fiscal revenues increased by around €4,189 per newly legalized immigrant The paper
found that the wages of the newly legalized immigrants increased after legalization, some low-
skilled natives had worse labor market outcomes and high-skilled natives had improved labor
market outcomes A 2018 study found no evidence that apprehensions of undocumented
immigrants in districts in the United States improved the labor market outcomes for American
natives.
Anti-globalization movement
Anti-globalization, or counter-globalization, consists of a number of criticisms of globalization
but, in general, is critical of the globalization of corporate capitalism. The movement is also
commonly referred to as the alter-globalization movement, anti-globalist movement, anti-
corporate globalization movement, or movement against neoliberal globalization. Opponents of
globalization argue that there is unequal power and respect in terms of international trade
between the developed and underdeveloped countries of the world. The diverse subgroups that
make up this movement include some of the following: trade unionists, environmentalists,
anarchists, land rights and indigenous rights activists, organizations promoting human rights and
sustainable development, opponents of privatization, and anti-sweatshop campaigners.
.
Opposition to capital market integration
Capital markets have to do with raising and investing money in various human enterprises.
Increasing integration of these financial markets between countries leads to the emergence of a
global capital marketplace or a single world market. In the long run, increased movement of
capital between countries tends to favor owners of capital more than any other group; in the short
run, owners and workers in specific sectors in capital-exporting countries bear much of the
burden of adjusting to increased movement of capital.
Anti-corporatism and anti-consumerism
Corporatism is a political ideology which advocates the organization of society by corporate
groups, such as agricultural, labour, military, scientific, or guild associations on the basis of
their common interests.
A related contemporary ideology, consumerism, which encourages the personal acquisition of
goods and services, also drives globalization. Anti-consumerism is a social movement against
equating personal happiness with consumption and the purchase of material possessions.
Concern over the treatment of consumers by large corporations has spawned substantial activism,
and the incorporation of consumer education into school curricula. Social activists hold
materialism is connected to global retail merchandizing and supplier convergence, war,
greed, anomie, crime, environmental degradation, and general social malaise and discontent. One
variation on this topic is activism by postconsumer, with the strategic emphasis on
moving beyond addictive consumerism.
Global justice and inequality
The global justice movement is the loose collection of individuals and groups—often referred to as a
"movement of movements- global justice movement is a network of globalized social movements opposing
what is often known as the “corporate globalization” and promoting equal distribution of economic resources.
The movement is often labeled an anti-globalization movement by the mainstream media. Those
involved, however, frequently deny that they are anti-globalization, insisting that they support
the globalization of communication and people and oppose only the global expansion of
corporate power. The movement is based in the idea of social justice, desiring the creation of a
society or institution based on the principles of equality and solidarity, the values of human
rights, and the dignity of every human being. Social inequality within and between nations,
including a growing global digital divide, is a focal point of the movement. Many
nongovernmental organizations have now arisen to fight these inequalities that many in Latin
America, Africa and Asia face. A few very popular and well known non-governmental
organizations (NGOs) include: War Child, Red Cross, Free The Children and CARE
International. They often create partnerships where they work towards improving the lives of
those who live in developing countries by building schools, fixing infrastructure, cleaning water
supplies, purchasing equipment and supplies for hospitals, and other aid efforts.
Environmentalist opposition
Environmentalism or environmental rights is a broad philosophy, ideology, and social
movement regarding concerns for environmental protection and improvement of the health of
the environment, particularly as the measure for this health seeks to incorporate the impact of
changes to the environment on humans, animals, plants and non-living matter. While
environmentalism focuses more on the environmental and nature-related aspects of green
ideology and politics, ecology combines the ideology of social ecology and environmentalism.
Ecology is more commonly used in continental European languages while ‘environmentalism’ is
more commonly used in English but the words have slightly different connotations
Climate is the long-term average of weather, typically averaged over a period of 30 years. Some
of the meteorological variables that are commonly measured
are temperature, humidity, atmospheric pressure, wind, and precipitation. In a broader sense,
climate is the state of the components of the climate system, which includes the ocean and ice on
Earth. The climate of a location is affected by its latitude, terrain, and altitude, as well as
nearby water bodies and their currents. Climates can be classified according to the average and
the typical ranges of different variables, most commonly temperature and precipitation. The most
commonly used classification scheme was the Köppen climate classification. The Thornthwaite
system,[3] in use since 1948, incorporates evapotranspiration along with temperature and
precipitation information and is used in studying biological diversity and how climate
change affects it. The Bergeron and Spatial Synoptic Classification systems focus on the origin
of air masses that define the climate of a region.
Paleoclimatology is the study of ancient climates. Since very few direct observations of climate
are available before the 19th century, pale climates are inferred from proxy variables that include
non-biotic evidence such as sediments found in lake beds and ice cores, and biotic evidence such
as tree rings and coral. Climate models are mathematical models of past, present and future
climates. Climate change may occur over long and short timescales from a variety of factors;
recent warming is discussed in global warming. Global warming results in redistributions. For
example, "a 3°C change in mean annual temperature corresponds to a shift in isotherms of
approximately 300–400 km in latitude (in the temperate zone) or 500 m in elevation. Therefore,
species are expected to move upwards in elevation or towards the poles in latitude in response to
shifting climate zones

Climate Temperature Humidity