CONTEMPORARY WORLD

CHAPTER 1 LESSON 1
DEFINING GLOBALIZATION

Learning Objectives:

At the end of the lesson, the students should be able to:

• Differentiate the competing conceptions of globalizations;

• Identify the underlying philosophies of the varying definitions of globalization; and

• Agree on a working definition for the course

..Have you tried listened to songs in Spotify or YouTube Music?

..Did you crave for fast foods?
..Do you any accounts on social media?
..or have any things from foreign brands?

What is contemporary world? = Modern world

Globalization

● Globalization is the increasing interaction of people, states, or countries through the

growth of the international flow of money, ideas, and culture. Thus, globalization is
primarily focused on economic process of integration that has social and cultural
aspects.
● It is the interconnectedness of people and business across the world that eventually lead
to global, cultural, political, and economic integration.
● It is the ability to move and communicate easily with others all over the world in order to
conduct business internationally.
● It is the free movement of goods, services, and people across the world in a seamless
and integrated manner.
● It is the liberalization of countries of their impact protocols and welcome foreign
investment into sectors that are the mainstays of its economy
● It refers to countries acting like magnets attracting global capital by opening up their
economies to multinational corporations.

Globalization as defined by other Authors

● "Globalization as process by which the people of the world are incorporated into a single
world society." - Martin Albrow and Elizabeth King
 ● "Globalization 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."- Anthony Giddens (The Consequence of Modernity)

● "Globalization as the compression of the world and the intensification of the

consciousness of the world as a whole." Prof. Roland Robertson (Sociology), 1992,
University of Aberdeen

Characteristics of Globalization

● There is social mobility of movement of people regardless of reason

● There is an intensification of interactions

● It's an active process

● Borderless interaction

● Spread of ideas, knowledge, technology, culture, religion, etc.

Historical Foundation of the term "Globalization"

BEFORE THE AGE OF DISCOVERY

↓
AGE OF DISCOVERY
↓
1820's
↓
1900's
↓
20th CENTURY

● 1897, Charles Taze Russel (Watch tower bible and tract society) coined the term
CORPORATE GIANTS, referring to a large national trust and other large enterprises of
the time.
● 1930, The word "Globalize" as a noun appeared in a publication entitled" Towards new
education" where it denoted a holistic view of human experience in education
● Late 1970's - Globalization was coined
● Early 1981 Globalization was used as an economic sense
● Late 1980's - Globalization was popularized by Theodore Levitt
● Late 2000's The IMF identified four basic aspect of globalization
● 2013, the globalization was used to define "borderless society"
● 2017, Globalization was often used in the AcaNeme
 ● 2018, Globalization was now used in all disciplines

Indicators of Globalization

● Interdependence of countries in different social aspects

● Advancement of science, technology etc
● Environmental issues across borders
● Economic globalization, cultural globalization, and political globalization

Nature of Globalization

● A conglomerate of various multiple units located in different parts of the globe which are
linked by common ownership.
● Multiple units draw a common pool of resources such as money, credit, information,
patents, trade names and control system.
● The units respond to some common strategy. Product presence is in different markets of
the world. Human resources are highly diverse. Transactions involving intellectual
properties such as copyrights, patents, trademarks, and process technologies are across
the globe.

Reasons for Globalization

● Rapid shrinking of time and distance across the globe. One can easily cross the bridge
going to the other side of the market place due to advance tools of technology than
before.
● Domestic markets interlocking factors. are no longer rich as a consequence of many
● Companies and institutions go global to find political and economic stability which is
relatively good in other countries than the country of origin.
● To get technological and managerial know-how of other countries due to their
advancement in science, technology, education, health, and other fields of discipline.
● To reduce high transportation costs if one goes globally using the advance tools of
communication and information.
● To be close to raw materials and to markets for their finished products which are not
available in the country of origin.
● The creation of the World Trade Organization (WTO) had made it possible in stimulating
increased cross border trade. There are other world bodies like the UN and several
arbitration bodies where countries agree.

Stages of Globalization

Stage 1. The first stage is the arm's length service activity of an essentially domestic
company/institution which moves into new market overseas by linking up with local dealers and
distributors.
Stage 2. In this stage, the company/institution takes over these activities on its own.

Stage 3. In this stage, the domestic-based company institution begins to carry out its own
manufacturing marketing and sales in key foreign markets.

Stage 4. In this stage, the company/institution moves to a full insider position in these markets
supported by a complete business system including Research and Development (R&<D) and
engineering. However, the headquarters mentality continues to dominate.

Stage 5. In this stage, the company/institution moves towards a genuinely global mode of
operation. In this stage, global localization happens, that is, the company institution serves local
customers in markets around the globe responding to their needs. This requires an
organizational transition i.e.; the company must denationalize its operations and create a
system of values shared by global managers.

Merits of Globalization

An open economy spur fast innovation with fresh ideas from abroad
↓
Exports jobs often pay more than other jobs
↓
Productivity grows more quickly when countries produce goods and services in which they are
of comparative advantageous

Demerits of Globalization

Exploitation of Underdeveloped Countries

↓
Widening of Rich poor Gap
↓
Harmful Effects on Small Industries and Small Business

End of lesson 1