Approaches of the study of Globalization

1. Globalization as Globaloney

2. Globalization as Economic Process

3. Globalization as Multifaceted process

3 Groups of Scholar

1. Rejectionist

2. Sceptics

3. Modifiers

5 Origin/history of Globalization

1. Hardwired – basic human urge to seek a better and more fulfilling life (Chanda, 2007)

2. Cycles – long term cyclical process. It is not only difficult in this view to find a single
point of origin, But the effort is largely irrelevant since there have long been cycles of
globalization and it is those cycles that are of utmost importance, not any paticular
phase or origin point (Scholte 2005)

3. Epochs –

4. Events – one can point to much more specific events that can be seen as the origin
of globalization and give us a good sense of its history. In fact, there are many such
possible points of origin of globalization

5. Broader, More Recent Changes

Dimensions of Globalization

1. Political Globalization

2. Economic Globalization

3. Cultural Globalization

4. Technology and Media

Globalization
5. Environmental Globalization

Theories of Globalization

1. Imperialism

2. Colonialism

3. Americanization

4. Neo-Liberalism

Globalization is transplanetary process(es) involving increasing liquidity and growing

multi - directional fl ows as well as the structures they encounter and create

Globaloney is a term used to describe exaggerated or unrealistic ideas about

globalization.

Globality refers to the state or condition of being global, where the world is
interconnected and interdependent in various ways

Globalism is the belief or ideology that the world should operate as a single community,
with global cooperation on issues like trade, politics, and environmental concerns.

Frictions is the awkward, unequal, unstable interconnection across difference

Imperialism is a broad concept that describes various methods employed by one

country to gain control of another country its term widespread use in the late 19th
century as a number of nations competed for control over previously geographic areas

Empire – is derived from imperium describe political forms that had characteristics of
roman rule, especially the great power of the leader

Vladimir Lenin 1917/1939 – first leader of the soviet union important early theorist of
imperialism

imperialism involves a control without the creation of colonies

Colonialism is related to imperialism but generally involves settlers as well as much

more formal mechanism of political control, It is the creation by the colonial power of
an administraton in the area that has been colonized to run its internal affairs
Edward Said – imperialism means the practice, the theory and the attitudes of a
dominating metropolitan centre ruling a distant territory

Imperialism is Lenin more define by economic control and exploitation

colonialism more about political control

Decolonization or the process of revealing and dismantling colonialist power in all its
form

Post-Colonialism: Developments that take place in a former colony after the colonizing
power departs

Development: A project primarily concerned with the economic development of specific

nation states not regarded as sufficiently developed

Import-Substitution: countries encouraged to develop their industries instead of

producing for export, rely on imports

Foreign Direct Investment (FDI) investment by a firm in one nation-state in a firm in

another nation state with the intention of controlling it.

Dependency Theory: Development of the nation-states of the South contributed to a

decline in their independence on the north

World Systems Theory: sees the world divided mainly between the core and periphery
with the latter dependent on and exploited by the core Nation-stated

Americanization imports by non-Americans of that which is closely associated with

America/Americans. And also defined as the exports of products, images, technologies,
practices and behavior that are closely associated with America/Americans

Anti-Americanism is a predisposition to hostility toward the US and American Society

Neo-Liberalism – David Harvey. It is a liberal commitment to individual liberty, a belief

in the free market and opposition to state intervention in it

Liberalism came to be called neo-liberalism

Structural Adjustment conditions of economic restructuring imposed by organizations

such as the World Bank and the IMF on borrowing nation states

William Easterly opposed to any form of collectivism and state planning because it
inhibits if not destroys, freedom

Free Market: A market free of any impediments

Deregulation: Commitment by nation states to limit or eliminate restrains on the free
market and free trade

Limited Government: no government can do things as well as the market and a

government should not intervene in it
Karl Polanyi – Critiquing Neo-liberalism

Double movement: coexistence of the expansion of the laissez-faire market and the
reaction against it

Neo-Marxian Theories

Neo-Marxists have done more than critique neo-liberalism, they have developed their
own perspectives on, and the theories of, capitalism

neo-liberalism is supportive of capitalism

neo-marxists are needless to say, critical of it

Empire – as a post modern reality in which such dominance exists but without any
single nation at its center. Decentered global dominance. Postmodern Marxian
perspectives on globalization multitude is that collection of people throughout the
world that sustain empire in various ways but not restricted to, its labor

deterritorialization: declining significance of the geographic location in which culture

exists

Remittances: Transactions by which migrants send money back to their country of

origin

Autarky: the turn inward of a nation state in order to become as economically

selfsufficient as possible

International Monetary Fund was created to establish, stabilize, and oversee

exchanges rates. 40 states became IMF members in 1946

Bretton Woods had its most powerful effects on

Global Trade – idea of the “unconditional most favored nation which required
government to offer the same trade concessions (reductions in trade barriers,
nondiscrimination against a nation’s products) to all”

Global Monetary Order- IMF took center stage, goal was to provide security, as well as
flexibility to the monetary order

Global Investment – key role was envisioned for the World Bank but massive US aid
through the Marshall Plan and rapid European post war recovery made its work in that
period of much less significance than had been anticipated

Monetary Organizations

General Agreement on Tariffs and Trade (GATT)

- A global agreement to reduce taxes (tariffs) on imports and exports.

- was a system for the liberalization of trade that grew out of Bretton Woods came into
existence in 1947 until 1995 because it was replaced by WTO

- simply forum for the meeting of representatives of countries

- was deemed more acceptable than the International Trade Organizations (ITO) by the
US

Trade-Related Aspects of Intellectual Property Rights (TRIPS): WTO agreement to

protect the interests of those that create ideas. They negotiated through the WTO, as
result of the 1986-94 Uruguay Round of Negotiations. This involves intangible ideas,
knowledge, and expressions that require their use to be approved by their owner,
involved here is a wide range of Intellectual Property. Protects inventions, copyrights,
and brands worldwide.

TRIMS (Trade-Related Investment Measures) is a rules about how countries can treat
foreign companies. WTO agreement on trade measures government can impose on
foreign firm

WORLD TRADE ORGANIZATION (WTO)

- is a multilateral organization headquartered in Geneva, Switzerland as of 2008 152

member nations. Its focus on trade places it at the heart of economic globalization
and had made it a magnet for those opposed either to the broader procces of trade
 liberalization

GATT focused on tariff reduction, the WTO has come to to focus more on non-
tariffrelated barriers to trade

International Monetary Fund (IMF) goal is macroeconomic stability for both member
nations and more generally the global economic, deals with exchange rates, balances of
payments, international capital flows. Its creation in 1944 created at Bretton Woods. It
help countries in financial crises (loans, advice)

World Bank (International Bank for Reconstruction and Development (IBRD) is a

specialized agency of the UN, the most important element of the World Bank Group was
established in 1944 at Bretton Woods and began operations in 1946. Open to all
member states of the IMF 184 Nations. It provides funds to government sponsored or
guaranteed programs in so called Part II countries (middle income or creditworthy
poorer nations) It give loans to poorer countries for development

Joseph Stiglitz critizes these institutions for their policy of imposing liberalization on
developning countries

Bretton Woods died on August 15, 1971 born

in New Hampsphire, US in July 1944

Other Important Economic Organization

Organization For Economic Cooperation and Development (OECD) is a broad group of

30 developed nations- the most encompassing ‘club’ of the world's rich countries

European Union (EU) is a product of the post WW II era as well as the Bretton Woods
era and now encompasses 27 member states. Largest domestic market in the
developed world with over 500 million citizens. Euro as their basic currency

North American Free Trade Agreement (NAFTA) now (USMCA) came into effect on
January 1 , 1994 was based on the idea that the US, Canada, Mexico were to eliminate
most Barriers to trade and investment over the ensuing 15 years

MERCOSUR sometime called the Southern Common Market was created by the
Treaty of Asuncion in 1991 with the goal of a common market in South America by
1995

Organization of Petroleum Exporting Countries (OPEC) was formed in 1960 and

included the major oil exporters of the day – Iran, Iraq, Kuwait, Saudi Arabia and
Venezuela (11 members)

The Multinational Corporation (MNC) – corporation that operates in more than two
countries.

MNC activity is usually measured by Foreign direct investment (FDI) involves

investments by one firm in another firm that exists abroad in a different nation state
with the intention of gaining control over the latter’s operation

Portfolio Investment: purchase of equities in companies in other countries to financial

gain, not control

Greenfield Investment: building of totally new corporate facilities in another country

What is Trade Surplus and Trade Deficit?

A trade surplus occurs when a country’s exports exceed its imports, meaning it sells
more goods and services to other countries than it buys from them.

A trade deficit, on the other hand, happens when a country imports more than it exports,
leading to an imbalance where it spends more money on foreign goods than it earns
from selling its own.

How Does Global Trade Work and What Are the Economic Chains and Networks
Involved?

Global trade involves the exchange of goods and services between countries, facilitated
by complex economic chains and networks. These global value chains (GVCs) connect
different nations, where raw materials are extracted in one country, manufactured into
products in another, and sold in yet another. For example, a smartphone might have raw
materials sourced from Africa, components assembled in China, and final products sold
in the U.S. and Europe. Economic networks include multinational corporations, supply
chains, and trade agreements that help regulate and facilitate these transactions.

Global Value Chains of Scrap Metal, Waste Paper, and iPhones

Global Value Chains (GVCs) show how goods are produced, processed, and sold
across multiple countries.

Scrap Metal: The global value chain of scrap metal involves collecting metal waste
from developed nations, shipping it to industrial countries like China and India, where it
is melted down and reused in manufacturing. The U.S. and Europe are major exporters
of scrap metal, while China is a key importer.

Waste Paper: Similar to scrap metal, waste paper is collected from countries like the
U.S. and sent to processing plants in China, where it is recycled into new products such
as cardboard boxes and packaging materials.

iPhones: The iPhone’s global value chain involves raw materials sourced from Africa,
processors made in the U.S., assembly in China by companies like Foxconn, and
distribution worldwide. This demonstrates how multiple countries contribute to the
production of a single product.

What is a Commodity and What Are Its Examples?

A commodity is a raw material or product that can be bought and sold, often used in
manufacturing other goods. Commodities are divided into two main types: Hard
commodities: Natural resources like oil, gold, and iron. Soft commodities: Agricultural
products like wheat, coffee, and cotton. For example, crude oil is a major commodity
because it is used to produce gasoline, plastics, and many other products. Similarly,
coffee beans are traded globally before being processed into the coffee drinks people
consume daily

Economic Flow of Oil and the Role of Regional Organizations Like OPEC
 The economic flow of oil is determined by the supply and demand between oil
producing and oil-consuming nations. Countries rich in oil, like Saudi Arabia and Russia,
export crude oil to energy-dependent nations such as the U.S., China, and Japan. OPEC
(Organization of the Petroleum Exporting Countries) plays a crucial role in regulating oil
production to stabilize prices. For example, when oil prices drop due to oversupply,
OPEC may cut production to raise prices. The 1973 Oil Crisis demonstrated OPEC’s
influence when it reduced oil exports, causing fuel shortages in Western countries.

Race to the Bottom: This occurs when countries lower wages, weaken labor laws, or
reduce environmental regulations to attract foreign investment. For example, many
corporations move production to Southeast Asia because of cheap labor costs and
fewer worker protections.

Industrial Upgrading: This refers to countries or companies shifting to higher-value

industries or improving their production methods. China has moved from low-cost
manufacturing to advanced technology industries like electric vehicles and AI.

Outsourcing: The practice of hiring external firms to handle certain business

operations. For example, American companies outsource customer service to call
centers in the Philippines to save costs.

Offshore Outsourcing: This is when a company relocates a business process to

another country to reduce costs. For example, Apple outsources iPhone assembly to
Foxconn in China.

Hyperdebt: A situation where individuals or countries accumulate excessive debt

beyond their ability to repay. For instance, the 2008 financial crisis was caused by
excessive borrowing in the U.S. housing market.

Hyperconsumption: A pattern of excessive consumption where people buy more than

they can afford, often using credit. The U.S. is a prime example, where consumer
spending is driven by credit card debt.

Explain the Interplay of Consumers, Consumption Sites, and the Ongoing Global
Resistance Towards This

Consumers are individuals who buy goods and services. Over time, people have shifted
from being producers (making things) to primarily being consumers. Many people
define themselves by what they own, such as luxury brands (e.g., Rolex watches or
iPhones).
Consumption Sites include shopping malls, fast-food chains, online stores (Amazon,
eBay), and theme parks (Disneyland). These sites are designed to encourage more
spending and have spread worldwide.

Global Resistance arises because some people and communities oppose the spread
of global consumer culture. For examples, The Slow Food Movement promotes
traditional, local food over fast food chains like McDonald’s, Paris activists oppose big
chain stores replacing small local businesses on the Champs-Élysées. Minimalism
movements encourage people to buy fewer, highquality items instead of engaging in
excessive shopping. Some critics argue that globalization has made shopping too
commercialized, destroying local traditions and small businesses. At the same time,
supporters believe it has made goods more accessible and affordable.

PART I: Key Concepts Associated with Politics

1. POWER is the ability to get others to comply by threatening consequences for

noncompliance (Robert Dahl). It involves two parties: one makes a threat, the other
complies.

2. INFLUENCE is when one actor’s preferences affect the actions or inclinations of

others (Robert Dahl).

3. AUTHORITY is the legitimate right to exercise power, often gained through accepted
procedures such as elections (Kay Lawson). It is power cloaked in legitimacy, based on
an acknowledged duty to obey, not on coercion.

Types of Authority (Max Weber):

Traditional Authority: Based on customs and long-standing practices (e.g., monarchies).

Charismatic Authority: Based on personal appeal or inspiration (e.g., Jesus Christ,

Gandhi, Hitler).

Legal-Rational Authority: Based on rules and laws accepted by the people.

Note:

Power = latent force

Force = manifest power

Authority = institutionalized power

4. LEGITIMACY is being recognized as rightfully holding a position and performing its

duties properly. In politics, it means having public approval for exercising power (Kay
Lawson).

Example: A president may lose legitimacy during a crisis, even if he still holds authority.

5. PERSUASION is convincing others through communication. It may be rational

(truthful) or manipulative (deceptive).

6. INDUCEMENT is offering rewards to encourage others to act in your interest.

7. COERCION is using threats to force choices between undesirable options (e.g., a

robber demanding “life or money”).

8. PHYSICAL FORCE the actual use of violence (e.g., torture, murder) and often means
prior threats have failed.

9. GOVERNANCE refers to the structures and processes through which decisions on

public issues are made and implemented, determining how power is exercised and how
citizens participate (UNDP).

10. STATE is a community of people, living permanently in a defined territory, under a

government, and free from external control.

Elements of a State:

People: Inhabitants of the state. No specific number required, but must be

selfsustaining.

Territory: The land, waters, and airspace occupied by the state.

Terrestrial Domain: Land

Fluvial & Maritime Domain: Waters

Aerial Domain: Airspace

Types of States by Geography:

Continental: Surrounded by land (e.g., Bolivia)

Peninsular: Surrounded by land and sea (e.g., Chile)

Archipelagic: Surrounded by water (e.g., Philippines

11. GOVERNMENT is the instrumentality through which the state’s will is formulated
and implemented (Isagani Cruz). It enforces laws, promotes welfare, and acts as the
guardian of the people (parens patriae).

12. SOVEREIGNTY is the supreme, uncontrollable power of the state.

Types of Sovereignty:

Internal Sovereignty: Power to manage domestic affairs (e.g., lawmaking, governance).

External Sovereignty: Independence in foreign affairs (e.g., diplomacy, war), free from
external control