Introduction to Globalization
Definition
Robertson (1992): "Compression of the world and intensification of consciousness of the
global whole."
Giddens (1990): "Linking distant localities where events influence each other."
Why is globalization a modern phenomenon?
1. MNCs have global reach and increasing power.
2. Travel and shipping are cheap and safe.
3. Governments have decreased tariffs and regulations on international trade.
Globalism – networks of connections
Globalization – increase or decline in the degree of globalism
Economic, Political & Cultural Aspects
Economic: Production process and internalization of financial transactions; transnational
corporations
Political: Declining power of nation-states, rise of global governance; expansion of
markets
Cultural: a multidimensional process involving diverse domains of activity and
interaction, including the cultural sphere
o On Homogeniety
Americanization - the global diffusion of American values, consumer
goods, and lifestyles
‘Cultural imperialism’ are overwhelming more vulnerable cultures.
McDonaldization – term coined by the American sociologist George
Ritzer (1993 to describe the wide-ranging process by which the principles
of the fast-food restaurant are coming to dominate more and more sectors
of American society, as well as the rest of the world.
McWorld – term coined by Benjamin R. Barber
o On Diversity
Glocalization – a complex interaction of the global and local
characterized by cultural borrowing.
Hybridization - Globalization is both a material and a mental condition,
constituted by complex, often contradictory interactions of global, local,
and individual aspects of social life.
Arjun Appadurai’s Five ‘Scapes’
1. Ethnoscapes – Flow of people (migration, refugees).
2. Technoscapes – Flow of technology.
3. Finanscapes – Flow of money and capital.
4. Mediascapes – Flow of global media and culture.
5. Ideoscapes – Flow of political ideas and ideologies.
The Global Interstate System
Features of Globalization
Borders are collapsing.
Increased global interconnectivity.
Rise of internationalism – states cooperate beyond national boundaries.
Globalism - Networks of connections spanning multi-continental distances, drawing them close
together economically, socially, culturally, and informationally.
Internationalism - idea that we both are and should be part of a broader community than that of
the nation or state; cooperation between individuals, groups, organization or governments
“Governments and Citizens in a Globally Interconnected World of States” Five Major
Areas
economic interdependence
economic and political integration
international law and universal norms
transnational advocacy networks
new communication platforms
Economic & Political Integration
Regional organizations like EU create economic and political unions.
International agreements (e.g., NAFTA, WTO) shape trade and investment.
International Law & Universal Norms
United Nations – Global peacekeeping & development.
International Criminal Court (ICC) – Prosecutes crimes against humanity.
Non-State Actors (NSAs)
Include corporations, NGOs, civil society, and even criminal groups.
Influence global governance and economic policies.
Contemporary Global Governance
Definition & Purpose
Global governance: The sum of laws, norms, policies, and institutions that regulate trans-
border relations.
Ensures order in a world without a global government.
Recognizes that problems exceed the capacity of individual states.
Governance - purposeful systems of rules or norms that ensure order beyond what occurs
“naturally”
Global governance is a rules-based order without government.
Intergovernmental Organizations (IGOs)
Established by treaties to address common interests.
Power of IOs
o Power of classification
o Power to fix meanings
o Power to diffuse norms
Example: The United Nations (UN)
o Founded in 1945 with 51 members, now has 193.
o Objectives: Peacekeeping, economic and social development, human rights.
o Principal organs:
General Assembly (policymaking)
Security Council (peace & security)
Economic & Social Council (development policies)
Trusteeship Council (international provision to Trust Territories)
International Court of Justice (judicial organ)
Secretariat (international staff working in duty stations)
Challenges in the 21st Century
Accommodating diverse perspectives
respecting sovereignty.
Addressing power imbalances (e.g., P5 veto power in the UN).
State: anchors itself upon jurisdictional claims over land and peoples
Nation: generates identity and loyalty.
Nation-State: A nation-state would be a sovereign territory with a group of individuals who
share a common history
Decline of Nation-State
Internal crises
o Economic globalization
o Globalized culture
o Political institutions
Globalization
Global problems
The Global Economy
Key Developments in Economic Globalization
Golden Age of Globalization (Peaked in 1914).
Advances in transportation (railroads, steamships), communication (internet), and
capital mobility.
Problems in Global Economic Development
Economic benefits are unevenly distributed.
Developing nations suffer most from global debt.
• Trade Surplus: Exports exceed imports.
• Trade Deficit: Imports exceed exports.
Global Value Chains & Outsourcing
Supply Chains – Different stages of production in various locations.
Buyer-driven chains – Retailers like Walmart dominate global supply.
Outsourcing – Transferring business functions to other countries.
The Modern World-System (Wallerstein’s Theory)
Core nations – Control capital & technology (e.g., US, Europe).
Periphery nations – Supply raw materials & labor.
Semi-periphery nations – Intermediate, developing economies.
Race to the Bottom vs. Upgrading
Race to the bottom – Poorer nations compete by lowering labor & environmental
standards.
Upgrading – Moving from low-value to high-value economic activities.
Market Integration
Concept
The increasing interdependence of economies through trade, finance, and production.
Two types:
o Horizontal integration – Merging with similar firms.
o Vertical integration – Controlling different stages of production.
International Financial Institutions (IFIs)
Provide financial and policy support for economic development.
Issues: Legitimacy, effectiveness, financial sustainability.
Bretton Woods System (1944-1971)
Established economic cooperation after WWII.
Created IMF (stabilize exchange rates) & World Bank (reconstruction & development).
Collapsed due to US dollar inflation & declining gold reserves.
World Trade Organization (WTO)
Evolved from GATT (1947-1995).
Regulates global trade in goods, services, and intellectual property.
