Interrogating Globalization
Defining Globalization
Defining Globalization
In simple way, Globalization is an
intensified transference or exchange of
things across existing boundaries.
Primarily, an economic process. It is
achieved through trading and financial
flows across countries’ borders.
Economic Globalization
Complex global process of expanding the
market economic system all throughout the
world.
• Giving freedom to entrepreneurs to control
productive process to pursue profit.
• Enhanced corporative driven process such
as transnational exchange of products
• Creating increased interdependence of world
economies.
Aspects of Globalization
1. Trading
• concerns importations and exportation.
• Increased of world trade from 1971 to 1999 and biggest increased in
exported of manufactured goods.
• Declined of exported food and raw materials produced by poor
countries.
2. Capital Movement
• Increased of capital flow to poor countries.
• Commercial loan – money lent to foreign businesses or governments.
• Official flows – development aide or money granted by rich countries
to developing countries.
• Foreign direct investment - buying or putting up a firm in a foreign
countries or to enhance existing firms.
Aspects of Globalization
3. Movement of people
• Migration to other countries for better
employment.
• 2.3 million for April to Sept 2018 (PSA,
2019).
Cultural Globalization
• Increasing contact between people
and their cultures such as ideas,
values, and way of life.
• Linked to globalization of lifestyles
such as music, media, fashion, food,
knowledge, science and technology.
Political Globalization
• Enlargement of the international
political system and its
establishment.
• Political decision making can
transcend the boundaries of nations.
Assumptions of Globalization
Assumption Critiques
1. Rapid economic growth will It is only one aspect but also
lead to development aspire for social and economic
justice and equality; self
reliance; equitable distribution
opportunities, income and
wealth.
2. Trading will bring prosperity Trading benefits some more
than others.
3. Poor countries benefit from Borrowing of poor counties are
borrowed funds. coupled with conditions
Assumptions of Globalization
Assumption Critiques
4. Poor countries need to Unequal exchange and
catch up with rich countries by underdevelopment.
implementing economic
policies toward economic
integration.
5. Removal of tariffs, quota Unfair competition of local
can ease global trading and industries with imports
will lead to economic
integration towards prosperity.
World Bank, International Monetary Fund and
World Trade Organization
• Facilitate investment of capital for member
countries.
• Enforce common trading and financial flow
standards and policies to all countries.
• Deregulation – reduce the control of the
government over the businesses making
them more powerful in implementing their
visions, goals and operations.
Impacts of Globalization
1. Increased income
2. More employment
3. Less poverty
4. Increased trading resulted to wider choice of consumer goods in
the market
Negative:
• Lessening of government resulted to business neglect of
environment, low wages and unstable employment
• Unequal field for local producers
• Widened gap of poor and rich
• Largest environmental degradation
• Income inequality
