Topic: Globalization: Etymology and Usage
Topic: Globalization: Etymology and Usage
Economically, globalization involves goods, services, data, technology, and the economic
resources of capital. The expansion of global markets liberalizes the economic activities of the
exchange of goods and funds. Removal of cross-border trade barriers has made the formation of
global markets more feasible. Advances in transportation, like the steam locomotive, steamship,
jet engine, and container ships, and developments in telecommunication infrastructure, like the
telegraph, Internet, and mobile phones, have been major factors in globalization and have
generated further interdependence of economic and cultural activities around the globe.Though
many scholars place the origins of globalization in modern times, others trace its history to long
before the European Age of Discovery and voyages to the New World, and some even to the
third millennium BCE. The term globalization first appeared in the early 20th century
(supplanting an earlier French term mondialization), developed its current meaning some time in
the second half of the 20th century, and came into popular use in the 1990s. Large-scale
globalization began in the 1820s, and in the late 19th century and early 20th century drove a
rapid expansion in the connectivity of the world's economies and cultures.In 2000, the
International Monetary Fund (IMF) identified four basic aspects of globalization: trade and
transactions, capital and investment movements, migration and movement of people, and the
dissemination of knowledge. Globalizing processes affect and are affected by business and work
organization, economics, sociocultural resources, and the natural environment. Academic
literature commonly divides globalization into three major areas: economic globalization,
cultural globalization, and political globalization.
“The bourgeoisie has through its exploitation of the world market given a cosmopolitan character
to production and consumption in every country. To the great chagrin of Reactionists, it has
drawn from under the feet of industry the national ground on which it stood. All old-established
national industries have been destroyed or are daily being destroyed. . . . In place of the old local
and national seclusion and self-sufficiency, we have intercourse in every direction, universal
inter-dependence of nations.”
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." In 1992, 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."In Global Transformations, David Held and his co-
writers state:
Although in its simplistic sense globalization refers to the widening, deepening and speeding up
of global interconnection, such a definition begs further elaboration. ... Globalization can be on a
continuum with the local, national and regional. At one end of the continuum lie social and
economic relations and networks which are organized on a local and/or national basis; at the
other end lie social and economic relations and networks which crystallize on the wider scale of
regional and global interactions. Globalization can refer to those spatial-temporal processes of
change which underpin a transformation in the organization of human affairs by linking together
and expanding human activity across regions and continents. Without reference to such
expansive spatial connections, there can be no clear or coherent formulation of this term. ... A
satisfactory definition of globalization must capture each of these elements: extensity
(stretching), intensity, velocity and impact.
Held and his co-writers' definition of globalization in that same book as "transformation in the
spatial organization of social relations and transactions—assessed in terms of their extensity,
intensity, velocity and impact—generating transcontinental or inter-regional flows" was called
"probably the most widely-cited definition" in the 2014 DHL Global Connectiveness
Index.Swedish journalist Thomas Larsson, in his book The Race to the Top: The Real Story of
Globalization, states that globalization:
is the process of world shrinkage, of distances getting shorter, things moving closer. It pertains to
the increasing ease with which somebody on one side of the world can interact, to mutual
benefit, with somebody on the other side of the world.
Paul James defines globalization with a more direct and historically contextualized emphasis:
Globalization is the extension of social relations across world-space, defining that world-space in
terms of the historically variable ways that it has been practiced and socially understood through
changing world-time.
Manfred Steger, professor of global studies and research leader in the Global Cities Institute at
RMIT University, identifies four main empirical dimensions of globalization: economic,
political, cultural, and ecological. A fifth dimension—the ideological—cutting across the other
four. The ideological dimension, according to Steger, is filled with a range of norms, claims,
beliefs, and narratives about the phenomenon itself.James and Steger stated that the concept of
globalization "emerged from the intersection of four interrelated sets of 'communities of practice'
(Wenger, 1998): academics, journalists, publishers/editors, and librarians.": 424 They note the
term was used "in education to describe the global life of the mind"; in international relations to
describe the extension of the European Common Market, and in journalism to describe how the
"American Negro and his problem are taking on a global significance". They have also argued
that four forms of globalization can be distinguished that complement and cut across the solely
empirical dimensions. According to James, the oldest dominant form of globalization is
embodied globalization, the movement of people. A second form is agency-extended
globalization, the circulation of agents of different institutions, organizations, and polities,
including imperial agents. Object-extended globalization, a third form, is the movement of
commodities and other objects of exchange. He calls the transmission of ideas, images,
knowledge, and information across world-space disembodied globalization, maintaining that it is
currently the dominant form of globalization. James holds that this series of distinctions allows
for an understanding of how, today, the most embodied forms of globalization such as the
movement of refugees and migrants are increasingly restricted, while the most disembodied
forms such as the circulation of financial instruments and codes are the most deregulated.The
journalist Thomas L. Friedman popularized the term " flat world", arguing that globalized trade,
outsourcing, supply-chaining, and political forces had permanently changed the world, for better
and worse. He asserted that the pace of globalization was quickening and that its impact on
business organization and practice would continue to grow.Economist Takis Fotopoulos defined
"economic globalization" as the opening and deregulation of commodity, capital, and labor
markets that led toward present neoliberal globalization. He used "political globalization" to refer
to the emergence of a transnational élite and a phasing out of the nation-state. Meanwhile, he
used "cultural globalization" to reference the worldwide homogenization of culture. Other of his
usages included "ideological globalization", "technological globalization", and "social
globalization".Lechner and Boli (2012) define globalization as more people across large
distances becoming connected in more and different ways."Globophobia" is used to refer to the
fear of globalization, though it can also mean the fear of balloons.
History
There are both distal and proximate causes which can be traced in the historical factors affecting
globalization. Large-scale globalization began in the 19th century.
Archaic
Archaic globalization conventionally refers to a phase in the history of globalization including
globalizing events and developments from the time of the earliest civilizations 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.
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.
Trade on the Silk Road was a significant factor in the development of civilizations from China,
Indian 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 religions, syncretic philosophies, and
various technologies, as well as diseases, 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
civilisations 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.
Early modern
"Early modern" or "proto-globalization" covers a period of the history of globalization roughly
spanning the years between 1600 and 1800. The concept of "proto-globalization" was first
introduced by historians A. G. Hopkins and Christopher Bayly. The term describes the phase of
increasing trade links and cultural exchange that characterized the period immediately preceding
the advent of high "modern globalization" in the late 19th century. This phase of globalization
was characterized by the rise of maritime European empires, in the 15th and 17th centuries, first
the Portuguese Empire (1415) followed by the Spanish Empire (1492), and later the Dutch and
British Empires. In the 17th century, world trade developed further when chartered companies
like the British East India Company (founded in 1600) and the Dutch East India Company
(founded in 1602, often described as the first multinational corporation in which stock was
offered) were established.
Modern
The conclusion of the Napoleonic Wars brought in an era of relative peace in Europe.
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 transportation significantly and railroads made inland
transportation cheaper. The transportation 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.
Since the 1970s, aviation has become increasingly affordable to middle classes in developed
countries. Open skies policies and low-cost carriers have helped to bring competition to the
market. In the 1990s, the growth of low-cost communication networks cut the cost of
communicating between countries. More work can be performed using a computer without
regard to location. This included accounting, software development, and engineering design.
Student exchange programs became popular after World War II, and are intended to increase the
participants' understanding and tolerance of other cultures, as well as improving their language
skills and broadening their social horizons. Between 1963 and 2006 the number of students
studying in a foreign country increased 9 times.
Since the 1980s, modern globalization has spread rapidly through the expansion of capitalism
and neoliberal ideologies. The implementation of neoliberal policies has allowed for the
privatization of public industry, deregulation of laws or policies that interfered with the free flow
of the market, as well as cut-backs to governmental social services. These neoliberal policies
were introduced to many developing countries in the form of structural adjustment programs
(SAPs) that were implemented by the World Bank and the International Monetary Fund (IMF).
These programs required that the country receiving monetary aid would open its markets to
capitalism, privatize public industry, allow free trade, cut social services like healthcare and
education and allow the free movement of giant multinational corporations. These programs
allowed the World Bank and the IMF to become global financial market regulators that would
promote neoliberalism and the creation of free markets for multinational corporations on a global
scale.
In the late 19th and early 20th century, the connectedness of the world's economies and cultures
grew very quickly. This slowed down from the 1910s onward due to the World Wars and the
Cold War, but picked up again in the 1980s and 1990s. The revolutions of 1989 and subsequent
liberalization in many parts of the world resulted in a significant expansion of global
interconnectedness. The migration and movement of people can also be highlighted as a
prominent feature of the globalization process. In the period between 1965 and 1990, the
proportion of the labor force migrating approximately doubled. Most migration occurred
between the developing countries and least developed countries (LDCs). As economic
integration intensified workers moved to areas with higher wages and most of the developing
world oriented toward the international market economy. The collapse of the Soviet Union not
only ended the Cold War's division of the world – it also left the United States its sole policeman
and an unfettered advocate of free market. It also resulted in the growing prominence of attention
focused on the movement of diseases, the proliferation of popular culture and consumer values,
the growing prominence of international institutions like the UN, and concerted international
action on such issues as the environment and human rights. Other developments as dramatic
were the Internet's becoming influential in connecting people across the world; As of June 2012,
more than 2.4 billion people—over a third of the world's human population—have used the
services of the Internet. Growth of globalization has never been smooth. One influential event
was the late 2000s recession, which was associated with lower growth (in areas such as cross-
border phone calls and Skype usage) or even temporarily negative growth (in areas such as trade)
of global interconnectedness.Globalized society offers a complex web of forces and factors that
bring people, cultures, markets, beliefs, and practices into increasingly greater proximity to one
another.
Economic globalization
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 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.International standards have made trade in goods and services more efficient. An
example of such standard is the intermodal container. Containerization dramatically reduced the
costs of transportation, supported the post-war boom in international trade, and was a major
element in globalization. International standards are set by the International Organization for
Standardization, which is composed of representatives from various national standards
organizations.
Arguably the most significant free-trade area in the world is the European Union, a politico-
economic union of 27 member states that are primarily located in Europe. The EU has developed
European Single Market through a standardized system of laws that apply in all member states.
EU policies aim to ensure the free movement of people, goods, services, and capital within the
internal market,Trade facilitation looks at how procedures and controls governing the movement
of goods across national borders can be improved to reduce associated cost burdens and
maximize efficiency while safeguarding legitimate regulatory objectives.
Global trade in services is also significant. For example, in India, business process outsourcing
has been described as the "primary engine of the country's development over the next few
decades, contributing broadly to GDP growth, employment growth, and poverty
alleviation".William I. Robinson's theoretical approach to globalization is a critique of
Wallerstein's World Systems Theory. He believes that the global capital experienced today is due
to a new and distinct form of globalization which began in the 1980s. Robinson argues not only
are economic activities expanded across national boundaries but also there is a transnational
fragmentation of these activities. One important aspect of Robinson's globalization theory is that
production of goods are increasingly global. This means that one pair of shoes can be produced
by six countries, each contributing to a part of the production process.
Cultural globalization
Cultural globalization refers to the transmission of ideas, meanings, and values around the world
in such a way as to extend and intensify social relations. This process is marked by the common
consumption of cultures that have been diffused by the Internet, popular culture media, and
international travel. This has added to processes of commodity exchange and colonization which
have a longer history of carrying cultural meaning around the globe. The circulation of cultures
enables individuals to partake in extended social relations that cross national and regional
borders. The creation and expansion of such social relations is not merely observed on a material
level. Cultural globalization involves the formation of shared norms and knowledge with which
people associate their individual and collective cultural identities. It brings increasing
interconnectedness among different populations and cultures.Cross-cultural communication is a
field of study that looks at how people from differing cultural backgrounds communicate, in
similar and different ways among themselves, and how they endeavour to communicate across
cultures. Intercultural communication is a related field of study.
Cultural diffusion is the spread of cultural items—such as ideas, styles, religions, technologies,
languages etc.
Globalization has strongly influenced sports. For example, the modern Olympic Games has
athletes from more than 200 nations participating in a variety of competitions. The FIFA World
Cup is the most widely viewed and followed sporting event in the world, exceeding even the
Olympic Games; a ninth of the entire population of the planet watched the 2006 FIFA World
Cup Final.The term globalization implies transformation. Cultural practices including traditional
music can be lost or turned into a fusion of traditions. Globalization can trigger a state of
emergency for the preservation of musical heritage. Archivists may attempt to collect, record, or
transcribe repertoires before melodies are assimilated or modified, while local musicians may
struggle for authenticity and to preserve local musical traditions. Globalization can lead
performers to discard traditional instruments. Fusion genres can become interesting fields of
analysis.Music has an important role in economic and cultural development during globalization.
Music genres such as jazz and reggae began locally and later became international phenomena.
Globalization gave support to the world music phenomenon by allowing music from developing
countries to reach broader audiences. Though the term "World Music" was originally intended
for ethnic-specific music, globalization is now expanding its scope such that the term often
includes hybrid subgenres such as "world fusion", "global fusion", "ethnic fusion", and
worldbeat.
Bourdieu claimed that the perception of consumption can be seen as self-identification and the
formation of identity. Musically, this translates into each individual having their own musical
identity based on likes and tastes. These likes and tastes are greatly influenced by culture, as this
is the most basic cause for a person's wants and behavior. The concept of one's own culture is
now in a period of change due to globalization. Also, globalization has increased the
interdependency of political, personal, cultural, and economic factors.A 2005 UNESCO report
showed that cultural exchange is becoming more frequent from Eastern Asia, but that Western
countries are still the main exporters of cultural goods. In 2002, China was the third largest
exporter of cultural goods, after the UK and US. Between 1994 and 2002, both North America's
and the European Union's shares of cultural exports declined while Asia's cultural exports grew
to surpass North America. Related factors are the fact that Asia's population and area are several
times that of North America. Americanization is related to a period of high political American
clout and of significant growth of America's shops, markets and objects being brought into other
countries.
Some critics of globalization argue that it harms the diversity of cultures. As a dominating
country's culture is introduced into a receiving country through globalization, it can become a
threat to the diversity of local culture. Some argue that globalization may ultimately lead to
Westernization or Americanization of culture, where the dominating cultural concepts of
economically and politically powerful Western countries spread and cause harm to local
cultures.Globalization is a diverse phenomenon that relates to a multilateral political world and
to the increase of cultural objects and markets between countries. The Indian experience
particularly reveals the plurality of the impact of cultural globalization.Transculturalism is
defined as "seeing oneself in the other". Transcultural is in turn described as "extending through
all human cultures" or "involving, encompassing, or combining elements of more than one
culture".
Political globalization
Political globalization refers to the growth of the worldwide political system, both in size and
complexity. That system includes national governments, their governmental and
intergovernmental organizations as well as government-independent elements of global civil
society such as international non-governmental organizations and social movement
organizations. One of the key aspects of the political globalization is the declining importance of
the nation-state and the rise of other actors on the political scene.
William R. Thompson has defined it as "the expansion of a global political system, and its
institutions, in which inter-regional transactions (including, but certainly not limited to trade) are
managed".
Political globalization is one of the three main dimensions of globalization commonly found in
academic literature, with the two other being economic globalization and cultural
globalization.Intergovernmentalism is a term in political science with two meanings. The first
refers to a theory of regional integration originally proposed by Stanley Hoffmann; the second
treats states and the national government as the primary factors for integration.Multi-level
governance is an approach in political science and public administration theory that originated
from studies on European integration. Multi-level governance gives expression to the idea that
there are many interacting authority structures at work in the emergent global political economy.
It illuminates the intimate entanglement between the domestic and international levels of
authority.
Some people are citizens of multiple nation-states. Multiple citizenship, also called dual
citizenship or multiple nationality or dual nationality, is a person's citizenship status, in which a
person is concurrently regarded as a citizen of more than one state under the laws of those states.
Globalization has been a gendered process where giant multinational corporations have
outsourced jobs to low-wage, low skilled, quota free economies like the ready made garment
industry in Bangladesh where poor women make up the majority of labor force. Despite a large
proportion of women workers in the garment industry, women are still heavily underemployed
compared to men. Most women that are employed in the garment industry come from the
countryside of Bangladesh triggering migration of women in search of garment work. It is still
unclear as to whether or not access to paid work for women where it didn't exist before has
empowered them. The answers varied depending on whether it is the employers perspective or
the workers and how they view their choices. Women workers did not see the garment industry
as economically sustainable for them in the long run due to long hours standing and poor
working conditions. Although women workers did show significant autonomy over their
personal lives including their ability to negotiate with family, more choice in marriage, and being
valued as a wage earner in the family. This did not translate into workers being able to
collectively organize themselves in order to negotiate a better deal for themselves at
work.Another example of outsourcing in manufacturing includes the maquiladora industry in
Ciudad Juarez, Mexico where poor women make up the majority of the labor force. Women in
the maquiladora industry have produced high levels of turnover not staying long enough to be
trained compared to men. A gendered two tiered system within the maquiladora industry has
been created that focuses on training and worker loyalty. Women are seen as being untrainable,
placed in un-skilled, low wage jobs, while men are seen as more trainable with less turnover
rates, and placed in more high skilled technical jobs. The idea of training has become a tool used
against women to blame them for their high turnover rates which also benefit the industry
keeping women as temporary workers.
Other dimensions
Scholars also occasionally discuss other, less common dimensions of globalization, such as
environmental globalization (the internationally coordinated practices and regulations, often in
the form of international treaties, regarding environmental protection) or military globalization
(growth in global extent and scope of security relationships). Those dimensions, however,
receive much less attention the three described above, as academic literature commonly
subdivides globalization into three major areas: economic globalization, cultural globalization
and political globalization.
Movement of people
An essential aspect of globalization is movement of people, and state-boundary limits on that
movement have changed across history. The movement of tourists and business people opened
up over the last century. As transportation technology improved, travel time and costs decreased
dramatically between the 18th and early 20th century. For example, travel across the Atlantic
ocean 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. Today, modern aviation has made long-distance transportation quick and
affordable.
Tourism is travel for pleasure. The developments in technology and transportation infrastructure,
such as jumbo jets, low-cost airlines, and more accessible airports have made many types of
tourism more affordable. At any given moment half a million people are in the air. International
tourist arrivals surpassed the milestone of 1 billion tourists globally for the first time in 2012.
According to the International Labour Organization, as of 2014 there were an estimated 232
million international migrants in the world (defined as persons outside their country of origin for
12 months or more) and approximately half of them were estimated to be economically active
(i.e. being employed or seeking employment). International movement of labor is often seen as
important to economic development. For example, freedom of movement for workers in the
European Union means that people can move freely between member states to live, work, study
or retire in another country.
In an age of increasing globalization, where a growing number of people have ties to networks of
people and places across the globe, rather than to a current geographic location, people are
increasingly marrying across national boundaries. Transnational marriage is a by-product of the
movement and migration of people.
Movement of information
The Internet has been instrumental in connecting people across geographical boundaries. For
example, Facebook is a social networking service which has more than 1.65 billion monthly
active users as of 31 March 2016.Globalization can be spread by Global journalism which
provides massive information and relies on the internet to interact, "makes it into an everyday
routine to investigate how people and their actions, practices, problems, life conditions, etc. in
different parts of the world are interrelated. possible to assume that global threats such as climate
change precipitate the further establishment of global journalism."
In the current era of globalization, the world is more interdependent than at any other time.
Efficient and inexpensive transportation has left few places inaccessible, and increased global
trade has brought more and more people into contact with animal diseases that have subsequently
jumped species barriers (see zoonosis).Coronavirus disease 2019, abbreviated COVID-19, first
appeared in Wuhan, China in November 2019. More than 180 countries have reported cases
since then. As of April 6, 2020, the U.S. has the most confirmed active cases in the world. More
than 3.4 million people from the worst-affected countries entered the U.S. in the first three
months since the inception of the COVID-19 pandemic. This has caused a detrimental impact on
the global economy, particularly for SME's and Microbusinesses with unlimited liability/self-
employed, leaving them vulnerable to financial difficulties, increasing the market share for
oligopolistic markets as well as increasing the barriers of entry.
Measurement
One index of globalization is the KOF Index of Globalization, which measures three important
dimensions of globalization: economic, social, and political. Another is the A.T. Kearney /
Foreign Policy Magazine Globalization Index.
Globalization tends to bring people into contact with foreign people and cultures. Xenophobia is
the fear of that which is perceived to be foreign or strange. Xenophobia can manifest itself in
many ways involving the relations and perceptions of an ingroup towards an outgroup, including
a fear of losing identity, suspicion of its activities, aggression, and desire to eliminate its
presence to secure a presumed purity.
Critiques of globalization generally stem from discussions surrounding the impact of such
processes on the planet as well as the human costs. They challenge directly traditional metrics,
such as GDP, and look to other measures, such as the Gini coefficient or the Happy Planet Index,
and point to a "multitude of interconnected fatal consequences–social disintegration, a
breakdown of democracy, more rapid and extensive deterioration of the environment, the spread
of new diseases, increasing poverty and alienation" which they claim are the unintended
consequences of globalization. Others point out that, while the forces of globalization have led to
the spread of western-style democracy, this has been accompanied by an increase in inter-ethnic
tension and violence as free market economic policies combine with democratic processes of
universal suffrage as well as an escalation in militarization to impose democratic principles and
as a means to conflict resolution.On August 9, 2019, Pope Francis denounced isolationism and
hinted that the Catholic Church will embrace globalization at the October 2019 Amazonia
Synod, stating "the whole is greater than the parts. Globalization and unity should not be
conceived as a sphere, but as a polyhedron: each people retains its identity in unity with others"
Public opinion
Initially, college educated workers were likely to support globalization. Less educated workers,
who were more likely to compete with immigrants and workers in developing countries, tended
to be opponents. The situation changed after the financial crisis of 2007. According to a 1997
poll 58% of college graduates said globalization had been good for the US. By 2008 only 33%
thought it was good. Respondents with high school education also became more
opposed.According to Takenaka Heizo and Chida Ryokichi, as of 1998 there was a perception in
Japan that the economy was "Small and Frail". However, Japan was resource-poor and used
exports to pay for its raw materials. Anxiety over their position caused terms such as
internationalization and globalization to enter everyday language. However, Japanese tradition
was to be as self-sufficient as possible, particularly in agriculture.Many in developing countries
see globalization as a positive force that lifts them out of poverty. Those opposing globalization
typically combine environmental concerns with nationalism. Opponents consider governments as
agents of neo-colonialism that are subservient to multinational corporations. Much of this
criticism comes from the middle class; the Brookings Institution suggested this was because the
middle class perceived upwardly mobile low-income groups as threatening to their economic
security.
Economics
The literature analyzing the economics of free trade is extremely rich with extensive work having
been done on the theoretical and empirical effects. Though it creates winners and losers, the
broad consensus among economists is that free trade is a large and unambiguous net gain for
society. In a 2006 survey of 83 American economists, "87.5% agree that the U.S. should
eliminate remaining tariffs and other barriers to trade" and "90.1% disagree with the suggestion
that the U.S. should restrict employers from outsourcing work to foreign countries."Quoting
Harvard economics professor N. Gregory Mankiw, "Few propositions command as much
consensus among professional economists as that open world trade increases economic growth
and raises living standards." In a survey of leading economists, none disagreed with the notion
that "freer trade improves productive efficiency and offers consumers better choices, and in the
long run these gains are much larger than any effects on employment." Most economists would
agree that although increasing returns to scale might mean that certain industry could settle in a
geographical area without any strong economic reason derived from comparative advantage, this
is not a reason to argue against free trade because the absolute level of output enjoyed by both
"winner" and "loser" will increase with the "winner" gaining more than the "loser" but both
gaining more than before in an absolute level.
In the book The End of Poverty, Jeffrey Sachs discusses how many factors can affect a country's
ability to enter the world market, including government corruption; legal and social disparities
based on gender, ethnicity, or caste; diseases such as AIDS and malaria; lack of infrastructure
(including transportation, communications, health, and trade); unstable political landscapes;
protectionism; and geographic barriers. Jagdish Bhagwati, a former adviser to the U.N. on
globalization, holds that, although there are obvious problems with overly rapid development,
globalization is a very positive force that lifts countries out of poverty by causing a virtuous
economic cycle associated with faster economic growth. However, economic growth does not
necessarily mean a reduction in poverty; in fact, the two can coexist. Economic growth is
conventionally measured using indicators such as GDP and GNI that do not accurately reflect the
growing disparities in wealth. Additionally, Oxfam International argues that poor people are
often excluded from globalization-induced opportunities "by a lack of productive assets, weak
infrastructure, poor education and ill-health;" effectively leaving these marginalized groups in a
poverty trap. Economist Paul Krugman is another staunch supporter of globalization and free
trade with a record of disagreeing with many critics of globalization. He argues that many of
them lack a basic understanding of comparative advantage and its importance in today's world.
The flow of migrants to advanced economies has been claimed to provide a means through
which global wages converge. An IMF study noted a potential for skills to be transferred back to
developing countries as wages in those a countries rise. Lastly, the dissemination of knowledge
has been an integral aspect of globalization. Technological innovations (or technological
transfer) are conjectured to benefit most developing and least developing countries (LDCs), as
for example in the adoption of mobile phones.There has been a rapid economic growth in Asia
after embracing market orientation-based economic policies that encourage private property
rights, free enterprise and competition. In particular, in East Asian developing countries, GDP
per head rose at 5.9% a year from 1975 to 2001 (according to 2003 Human Development Report
of UNDP). Like this, the British economic journalist Martin Wolf says that incomes of poor
developing countries, with more than half the world's population, grew substantially faster than
those of the world's richest countries that remained relatively stable in its growth, leading to
reduced international inequality and the incidence of poverty.
Certain demographic changes in the developing world after active economic liberalization and
international integration resulted in rising general welfare and, hence, reduced inequality.
According to Wolf, in the developing world as a whole, life expectancy rose by four months each
year after 1970 and infant mortality rate declined from 107 per thousand in 1970 to 58 in 2000
due to improvements in standards of living and health conditions. Also, adult literacy in
developing countries rose from 53% in 1970 to 74% in 1998 and much lower illiteracy rate
among the young guarantees that rates will continue to fall as time passes. Furthermore, the
reduction in fertility rate in the developing world as a whole from 4.1 births per woman in 1980
to 2.8 in 2000 indicates improved education level of women on fertility, and control of fewer
children with more parental attention and investment. Consequently, more prosperous and
educated parents with fewer children have chosen to withdraw their children from the labor force
to give them opportunities to be educated at school improving the issue of child labor. Thus,
despite seemingly unequal distribution of income within these developing countries, their
economic growth and development have brought about improved standards of living and welfare
for the population as a whole.
Per capita gross domestic product (GDP) growth among post-1980 globalizing countries
accelerated from 1.4 percent a year in the 1960s and 2.9 percent a year in the 1970s to 3.5
percent in the 1980s and 5.0 percent in the 1990s. This acceleration in growth seems even more
remarkable given that the rich countries saw steady declines in growth from a high of 4.7 percent
in the 1960s to 2.2 percent in the 1990s. Also, the non-globalizing developing countries seem to
fare worse than the globalizers, with the former's annual growth rates falling from highs of 3.3
percent during the 1970s to only 1.4 percent during the 1990s. This rapid growth among the
globalizers is not simply due to the strong performances of China and India in the 1980s and
1990s—18 out of the 24 globalizers experienced increases in growth, many of them quite
substantial.
The globalization of the late 20th and early 21st centuries has led to the resurfacing of the idea
that the growth of economic interdependence promotes peace. This idea had been very powerful
during the globalization of the late 19th and early 20th centuries, and was a central doctrine of
classical liberals of that era, such as the young John Maynard Keynes (1883–1946).Some
opponents of globalization see the phenomenon as a promotion of corporate interests. They also
claim that the increasing autonomy and strength of corporate entities shapes the political policy
of countries. They advocate global institutions and policies that they believe better address the
moral claims of poor and working classes as well as environmental concerns. Economic
arguments by fair trade theorists claim that unrestricted free trade benefits those with more
financial leverage (i.e. the rich) at the expense of the poor.Globalization allows corporations to
outsource manufacturing and service jobs from high cost locations, creating economic
opportunities with the most competitive wages and worker benefits. Critics of globalization say
that it disadvantages poorer countries. While it is true that free trade encourages globalization
among countries, some countries try to protect their domestic suppliers. The main export of
poorer countries is usually agricultural productions. Larger countries often subsidize their
farmers (e.g., the EU's Common Agricultural Policy), which lowers the market price for foreign
crops.
Global democracy
Global civics
Global civics suggests that civics can be understood, in a global sense, as a social contract
between global citizens in the age of interdependence and interaction. The disseminators of the
concept define it as the notion that we have certain rights and responsibilities towards each other
by the mere fact of being human on Earth. World citizen has a variety of similar meanings, often
referring to a person who disapproves of traditional geopolitical divisions derived from national
citizenship. An early incarnation of this sentiment can be found in Socrates, whom Plutarch
quoted as saying: "I am not an Athenian, or a Greek, but a citizen of the world." In an
increasingly interdependent world, world citizens need a compass to frame their mindsets and
create a shared consciousness and sense of global responsibility in world issues such as
environmental problems and nuclear proliferation.Baha'i-inspired author Meyjes, while favoring
the single world community and emergent global consciousness, warns of globalization as a
cloak for an expeditious economic, social, and cultural Anglo-dominance that is insufficiently
inclusive to inform the emergence of an optimal world civilization. He proposes a process of
"universalization" as an alternative.
Cosmopolitanism is the proposal that all human ethnic groups belong to a single community
based on a shared morality. A person who adheres to the idea of cosmopolitanism in any of its
forms is called a cosmopolitan or cosmopolite. A cosmopolitan community might be based on an
inclusive morality, a shared economic relationship, or a political structure that encompasses
different nations. The cosmopolitan community is one in which individuals from different places
(e.g. nation-states) form relationships based on mutual respect. For instance, Kwame Anthony
Appiah suggests the possibility of a cosmopolitan community in which individuals from varying
locations (physical, economic, etc.) enter relationships of mutual respect despite their differing
beliefs (religious, political, etc.).Canadian philosopher Marshall McLuhan popularized the term
Global Village beginning in 1962. His view suggested that globalization would lead to a world
where people from all countries will become more integrated and aware of common interests and
shared humanity.
International cooperation
Military cooperation – Past examples of international cooperation exist. One example is the
security cooperation between the United States and the former Soviet Union after the end of the
Cold War, which astonished international society. Arms control and disarmament agreements,
including the Strategic Arms Reduction Treaty (see START I, START II, START III, and New
START) and the establishment of NATO's Partnership for Peace, the Russia NATO Council, and
the G8 Global Partnership against the Spread of Weapons and Materials of Mass Destruction,
constitute concrete initiatives of arms control and de-nuclearization. The US–Russian
cooperation was further strengthened by anti-terrorism agreements enacted in the wake of
9/11.Environmental cooperation – One of the biggest successes of environmental cooperation
has been the agreement to reduce chlorofluorocarbon (CFC) emissions, as specified in the
Montreal Protocol, in order to stop ozone depletion. The most recent debate around nuclear
energy and the non-alternative coal-burning power plants constitutes one more consensus on
what not to do. Thirdly, significant achievements in IC can be observed through development
studies.Economic cooperation – One of the biggest challenges in 2019 with globalization is that
many believe the progress made in the past decades are now back tracking. The back tracking of
globalization has coined the term "Slobalization." Slobalization is a new, slower pattern of
globalization.
Anti-globalization movement
However, they remain protected from the problems affecting the working classes: the decline of
industrial activity, the resulting loss of employment, the decline of the middle class, increasing
the number of the poor, the rising crime rate, growing drug trafficking, the urban crisis.
D.A. Snow et al. contend that the anti-globalization movement is an example of a new social
movement, which uses tactics that are unique and use different resources than previously used
before in other social movements.One of the most infamous tactics of the movement is the Battle
of Seattle in 1999, where there were protests against the World Trade Organization's Third
Ministerial Meeting. All over the world, the movement has held protests outside meetings of
institutions such as the WTO, the International Monetary Fund (IMF), the World Bank, the
World Economic Forum, and the Group of Eight (G8). Within the Seattle demonstrations the
protesters that participated used both creative and violent tactics to gain the attention towards the
issue of globalization.
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.Those opposed to capital market
integration on the basis of human rights issues are especially disturbed by the various abuses
which they think are perpetuated by global and international institutions that, they say, promote
neoliberalism without regard to ethical standards. Common targets include the World Bank
(WB), International Monetary Fund (IMF), the Organisation for Economic Co-operation and
Development (OECD) and the World Trade Organization (WTO) and free trade treaties like the
North American Free Trade Agreement (NAFTA), Free Trade Area of the Americas (FTAA),
the Multilateral Agreement on Investment (MAI) and the General Agreement on Trade in
Services (GATS). In light of the economic gap between rich and poor countries, movement
adherents claim free trade without measures in place to protect the under-capitalized will
contribute only to the strengthening the power of industrialized nations (often termed the "North"
in opposition to the developing world's "South").
Corporatist ideology, which privileges the rights of corporations (artificial or juridical persons)
over those of natural persons, is an underlying factor in the recent rapid expansion of global
commerce. In recent years, there have been an increasing number of books (Naomi Klein's 2000
No Logo, for example) and films (e.g. The Corporation & Surplus) popularizing an anti-
corporate ideology to the public.
Global justice
The global justice movement is the loose collection of individuals and groups—often referred to
as a "movement of movements"—who advocate fair trade rules and perceive current institutions
of global economic integration as problems. 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.
Social inequality
The economies of the world have developed unevenly, historically, such that entire geographical
regions were left mired in poverty and disease while others began to reduce poverty and disease
on a wholesale basis. From around 1980 through at least 2011, the GDP gap, while still wide,
appeared to be closing and, in some more rapidly developing countries, life expectancies began
to rise. If we look at the Gini coefficient for world income, since the late 1980s, the gap between
some regions has markedly narrowed—between Asia and the advanced economies of the West,
for example—but huge gaps remain globally. Overall equality across humanity, considered as
individuals, has improved very little. Within the decade between 2003 and 2013, income
inequality grew even in traditionally egalitarian countries like Germany, Sweden and Denmark.
With a few exceptions—France, Japan, Spain—the top 10 percent of earners in most advanced
economies raced ahead, while the bottom 10 percent fell further behind. By 2013, 85
multibillionaires had amassed wealth equivalent to all the wealth owned by the poorest half (3.5
billion) of the world's total population of 7 billion.Critics of globalization argue that
globalization results in weak labor unions: the surplus in cheap labor coupled with an ever-
growing number of companies in transition weakened labor unions in high-cost areas. Unions
become less effective and workers their enthusiasm for unions when membership begins to
decline. They also cite an increase in the exploitation of child labor: countries with weak
protections for children are vulnerable to infestation by rogue companies and criminal gangs who
exploit them. Examples include quarrying, salvage, and farm work as well as trafficking,
bondage, forced labor, prostitution and pornography.
Anti-global governance
Beginning in the 1930s, opposition arose to the idea of a world government, as advocated by
organizations such as the World Federalist Movement (WFM). Those who oppose global
governance typically do so on objections that the idea is unfeasible, inevitably oppressive, or
simply unnecessary. In general, these opponents are wary of the concentration of power or
wealth that such governance might represent. Such reasoning dates back to the founding of the
League of Nations and, later, the United Nations.
Environmentalist opposition
Environmentalism is a broad philosophy, ideology and social movement regarding concerns for
environmental conservation and improvement of the health of the environment. Environmentalist
concerns with globalization include issues such as global warming, global water supply and
water crises, inequity in energy consumption and energy conservation, transnational air pollution
and pollution of the world ocean, overpopulation, world habitat sustainability, deforestation,
biodiversity loss and species extinction.
One critique of globalization is that natural resources of the poor have been systematically taken
over by the rich and the pollution promulgated by the rich is systematically dumped on the poor.
Some argue that Northern corporations are increasingly exploiting resources of less wealthy
countries for their global activities while it is the South that is disproportionately bearing the
environmental burden of the globalized economy. Globalization is thus leading to a type of"
environmental apartheid".Helena Norberg-Hodge, the director and founder of Local
Futures/International Society for Ecology and Culture, criticizes globalization in many ways. In
her book Ancient Futures, Norberg-Hodge claims that "centuries of ecological balance and social
harmony are under threat from the pressures of development and globalization." She also
criticizes the standardization and rationalization of globalization, as it does not always yield the
expected growth outcomes. Although globalization takes similar steps in most countries, scholars
such as Hodge claim that it might not be effective to certain countries and that globalization has
actually moved some countries backward instead of developing them.A related area of concern is
the pollution haven hypothesis, which posits that, when large industrialized nations seek to set up
factories or offices abroad, they will often look for the cheapest option in terms of resources and
labor that offers the land and material access they require (see Race to the bottom). This often
comes at the cost of environmentally sound practices. Developing countries with cheap resources
and labor tend to have less stringent environmental regulations, and conversely, nations with
stricter environmental regulations become more expensive for companies as a result of the costs
associated with meeting these standards. Thus, companies that choose to physically invest in
foreign countries tend to (re)locate to the countries with the lowest environmental standards or
weakest enforcement.
The European Union–Mercosur Free Trade Agreement, which would form one of the world's
largest free trade areas, has been denounced by environmental activists and indigenous rights
campaigners. The fear is that the deal could lead to more deforestation of the Amazon rainforest
as it expands market access to Brazilian beef.
Food security
Globalization is associated with a more efficient system of food production. This is because
crops are grown in countries with optimum growing conditions. This improvement causes an
increase in the world's food supply which encourages improved food security. The political
movement 'BREXIT' was considered a step back in globalisation, it has greatly disrupted food
chains within the UK as they import 26% of food produce from the EU.
Norway
Norway's limited crop range advocates globalization of food production and availability. The
northernmost country in Europe requires trade with other countries to ensure population food
demands are met. The degree of self-sufficiency in food production is around 50% in Norway.
See also
References
Further reading
Ampuja, Marko. Theorizing Globalization: A Critique of the Mediatization of Social Theory
(Brill, 2012)
Conner, Tom, and Ikuko Torimoto, eds. Globalization Redux: New Name, Same Game
(University Press of America, 2004).
Frey, James W. "The Global Moment: The Emergence of Globality, 1866–1867, and the Origins
of Nineteenth-Century Globalization." The Historian 81.1 (2019): 9. online, focus on trade and
Suez Canal
Gunder Frank, Andre, and Robert A. Denemark. ReOrienting the 19th Century: Global Economy
in the Continuing Asian Age (Paradigm Publishers, 2013);
Lechner, Frank J., and John Boli, eds. The Globalization Reader (4th ed. Wiley-Blackwell,
2012).
Leibler, Anat. "The Emergence of a Global Economic Order: From Scientific Internationalism to
Infrastructural Globalism." in Science, Numbers and Politics (Palgrave Macmillan, Cham, 2019)
pp. 121–145 online.
Mir, Salam. "Colonialism, Postcolonialism, Globalization, and Arab Culture." Arab Studies
Quarterly 41.1 (2019): 33–58. online
Pfister, Ulrich (2012), Globalization, EGO - European History Online, Mainz: Institute of
European History, retrieved: March 25, 2021 (pdf).
Pieterse, Jan Nederveen. Globalization and culture: Global mélange (Rowman & Littlefield,
2019).
Rosenberg, Justin. "Globalization Theory: A Post Mortem," International Politics 42:1 (2005),
2–74.
Steger, Manfred B. Globalization: A Very Short Introduction (4th ed. Oxford University Press,
2017)
Van Der Bly, Martha C.E. "Globalization: A Triumph of Ambiguity," Current Sociology 53:6
(November 2005), 875–893
"Globalization" Stanford Encyclopedia of Philosophy Analysis of the idea and its history.