LESSON 1:

CONCEPT OF
GLOBALIZATION
DEFINITION OF GLOBALIZATION
refers to the process of interaction and integration among
people, communities, companies, and governments
worldwide.
In specifically economic contexts, it refers almost
exclusively to the effects of trade, particularly trade
liberalization or "free trade".
DEFINITION OF GLOBALIZATION
This process has led to an unprecedented exchange of
ideas, information, and cultural norms, blurring
geographical boundaries and creating a more
homogenized global culture.

It has also resulted in the creation of a global marketplace,

where goods, services, and capital flow freely across
borders. Businesses, big and small, now operate on a global
scale, reaching customers in far-flung corners of the world.
DEFINITION OF GLOBALIZATION
refers to the increasing interconnectedness and
integration among people, companies, and governments
across the world. It is a phenomenon driven by
international trade, foreign direct investment, and
advancements in technology, particularly in
communication and transportation.
 Globalization is also
defined differently
depending on someone
else’s expertise,
experience, and
perspective
Economics Expert
Globalizations means;
fast speed of trade (importing and exporting are done in just a
millisecond through technology)
global economic organizations International Monetary Fund
(IMF), World Bank (WB), World Trade Organization (WTO).
International Labor Organization (ILO), ASEAN, etc.
multinational and transnational corporations free trade
(governments not to restrict the importation of products and
the exportation of local products
culture Expert
Globalizations means;
establishment “global village” (media,
facebook has connected the world)
“shrinking world” (breaking boundaries)
cultural imperialism through global media
dominance (Better Culture)
borderless world
adoption of other cultures (KPOP)
political science Expert
Globalization serves as a challenge to the nation-state:

• Strengthening of regional blocs (ASEAN) (UN)

• Emergence of global political norms (the norm that each
country is entitled to the exploitation of human
resources for its own growth)
• Emergence of corporations (businessmen and investors)
• International laws (conflicts)
• World governance
Four (4) ATTRIBUTES
of Globalization
1. Globalization occurs worldwide - (Every
person is a global citizen because he or
she thinks about the issues of the world)
• Think about the world
• Associate ourselves with global trends
• Sense of responsibility
2. Intensification and acceleration of
Social exchanges and activities
• Door-to-door mail delivery to FB
messages – IG, SnapChat, Twitter
• Live TV telecast
• Travel capacities brought about by
low airfares
3. Expansion and stretching of social
relations
• Regional and international non-
governmental organizations (NGOs)
• Humanitarian Institution
• Government associations
• multinational companies
4. Various forms of connectivity
• They are diverse (economic, political,
cultural, etc.)
 Globality
concept that refers to the condition
or quality of being global,
encompassing the comprehensive,
interconnected, and
interdependent nature of the
modern world

describes the actual state of being global or

the extent to which something is global in
nature.
 Globalism
refers to the increasing
interconnectedness and
interdependence among countries
and regions around the world, across
economic, political, cultural, and
social dimensions
GLOBALIZATION can mean:

The formation of a global village - closer contact

between different parts of the world, with increasing
possibilities of personal exchange, mutual
understanding and friendship between "world citizens".

Economic globalization - "free trade" and increasing

relations among members of an industry in different
parts of the world (globalization of an industry), with a
corresponding erosion of National Sovereignty in the
economic sphere
five dimensions
of global
cultural flow
- Appadurai, 1996
1. Ethnoscape - global movement of people.
2. Mediascape - flow of culture
3. Technoscape - circulation of mechanical goods
and software
4. Finacescape - global circulation of money
5. Ideoscape - realm of political ideas Windows into
the broader phenomenon of globalization
 SIGN OF
GLOBALIZATION?
Increase in international trade at a faster rate than the
growth in the world economy.

Increase in international flow of capital including foreign

direct investment.

Greater trans-border data flow, using such technologies such

as the Internet, communication satellites and telephones

Greater international cultural exchange, for example through

the export of Hollywood and Bollywood movies
Some argue that even terrorism has undergone globalization.
Terrorists now have attacked places all over the world.

Spreading of multiculturalism and better individual access to

cultural diversity, with on the other hand, some reduction in
diversity through assimilation, hybridization, Westernization,
Americanization or Sinosization of cultures.

Erosion of national sovereignty and national borders through

international agreements leading to organizations like the
WTO and OPEC.
Greater international travel and tourism.

Greater immigration, including illegal immigration.

Development of global telecommunications infrastructure.

Development of a global financial systems.

Increase in the share of the world economy controlled by

multinational corporations.
ANTI-GLOBALIZATION
Many anti-globalism activists see globalization as the
promotion of a Corporatist agenda, which is intent on
constricting the freedoms of individuals in the name of
profit. They also claim that increasing autonomy and
strength of corporate entities increasingly shape the
political policy of nation-states.

Globalization imposes credit based economics, resulting in

unsustainable growth of debt and debt crises.
PRO-GLOBALIZATION

Supporters of free trade point out that economic theories such

as comparative advantage suggests that free trade leads to a
more efficient allocation of resources, with all those involved in
the trade benefitting. In general, they claim that this leads to
lower prices, more employment and better allocation of
resources.
ADVANTAGES OF
GLOBALIZATION
 1. Peaceful Relations - Most of the countries have
resorted to trade relations with each other in order
to boost their economy, leaving behind any bitter
past experiences if any.

2. Employment - Considered as one of the most

crucial advantages, globalization has led to the
generation of numerous employment opportunities.
Companies are moving towards the developing
countries to acquire labor force
3. Education - A very critical advantage that has
aided the population is the spread of education. With
numerous educational institutions around the globe,
one can move out from the home country for better
opportunities elsewhere.

4. Product Quality - The product quality has been

enhanced so as to retain the customers. Today the
customers may compromise with the price range but
not with the quality of the product.
5. Cheaper Prices - Globalization has brought in fierce
competition in the markets.

7. Communication - Every single information is easily

accessible from almost every corner of the world
Circulation of information is no longer a tedious task,
and can happen in seconds. The Internet has
significantly affected the global economy, thereby
providing direct access to information and products.
8. Transportation - Considered as the wheel of every
business organization, connectivity to various parts of the
world is no more a serious problem. Today with various
modes of transportation available, one can conveniently
deliver the products to a customer located at any part of
the world.

9. Travel and Tourism - Globalization has promoted

tourism to great heights. International trade among
different countries also helps in increasing the number of
tourists that visit different places around the world.
10. Free Trade - Free trade is a policy in which a country
does not levy taxes, duties, subsidies or quota on the
import/export of goods or services from other
countries. There are countries which have resolved to
free trade in specific regions. This allows consumers to
buy goods and services, comparatively at a lower cost.
DISADVANTAGES OF
GLOBALIZATION
1. Health Issues. Globalization has given rise to more
health risks and presents new threats and challenges
for epidemics. The dawn of HIV/AIDS. Having its
origin in the wilderness of Africa, the virus has
spread like wildfire throughout the globe in no time.
Food items are also transported to various
countries, and this is a matter of concern, especially
in case of perishable items.
2. Loss of Culture. With large number of people moving
into and out of a country, the culture takes a backseat.
People may adapt to the culture of the resident country.
They tend to follow the foreign culture more, forgetting
their own roots. This can give rise to cultural conflicts.
3. Uneven Wealth Distribution. It is said that the rich are
getting richer while the poor are getting poorer. In the
real sense, globalization has not been able to reduce
poverty.

4. Environment Degradation. The industrial revolution

has changed the outlook of the economy. Industries are
using natural resources by means of mining, drilling, etc.
which puts a burden on the environment.
5. Disparity. Though globalization has opened new
avenues like wider markets and employment, there still
exists a disparity in the development of the economies.
Structural unemployment owes to the disparity created.
Developed countries are moving their factories to
foreign countries where labor is cheaply available.

6. Conflicts. It has given rise to terrorism and other

forms of violence. Such acts not only cause loss of
human life but also huge economic losses.