GLOBALIZAT

ION
 NATURE OF GLOBALIZATION
 DIMENSIONS OF GLOBALIZATION
 IMPORTANCE OF STUDYING GLOBALIZATION
 DIFFERENT CONCEPTS AND COMPETING CONCEPTS OF
GLOBALIZATION
• Globalization is the word used to describe
the growing interdependence of the world’s
economies, cultures, and populations, brought about
by cross-border trade in goods and services,
technology, and flows of investment, people, and
information. Countries have built economic
partnerships to facilitate these movements over many
centuries.
NATURE OF GLOBALIZATION
• Liberalization: It stands for the freedom of the entrepreneurs to
establish any industry or trade or business venture, within their own
countries or abroad.
• Free trade: It stands for free flow of trade relations among all the
nations. Each state grants MFN (most favored nation) status to other
states and keeps its business and trade away from excessive and hard
regulatory and protective regimes.
• Globalization of Economic Activity: Economic activities are be governed
both by the domestic market and also the world market. It stands for
the process of integrating the domestic economy with world
economies.
NATURE OF GLOBALIZATION
• Liberalization of Import-Export System: It stands for liberating the
import- export activity and securing a free flow of goods and services
across borders.
• Privatization: Keeping the state away from ownership of means of
production and distribution and letting the free flow of industrial,
trade and economic activity across borders.
• Increased Collaborations: Encouraging the process of collaborations
among the entrepreneurs with a view to secure rapid modernization,
development and technological advancement.
NATURE OF GLOBALIZATION
• Economic Reforms: Encouraging fiscal and financial reforms with a
view to give strength to free world trade, free enterprise, and market
forces.
• Globalization accepts and advocates the value of free world trade,
freedom of access to world markets and a free flow of investments
across borders. It stands for integration and democratization of the
world’s culture, economy and infrastructure through global
investments.
DIMENSIONS OF
GLOBALIZATION
• Economic – global scope of finance and economy, multinationals,
networking, international trade and business, new labor markets and new
development cooperation.
• Political – human rights, international tourism, war and new security
problems.
• Democracy – good governance by people’s participation around the world -
human rights.
• Ecological – sustainable globalization; use of commo resources and
legislation (biosphere: water, forest, air, earth and atmosphere).
• Cultural – multicultural society of different identities: local, political,
gender, family, religious, national, individual and social groups.
IMPORTANCE OF STUDYING
GLOBALIZATION
• There is a greater demand in business and industry, health, engineering and
technology to have people, who can work with other nations with varied
culture.
• There is a greater demand of promoting the local business and industry to
other countries.
• The contemporary world faces global challenges that will take
interdisciplinary groups to solve these challenges on how to provide access to
clean water, clean environment, clean renewable energy that is affordable to
everyone.
• Creating a meaningful, harmonious and workable relationship that link
globally.
• Knowledge of merits and demerits and reasons of globalization will enable
the students to work as a model of collaborative international team in the
near future in the are of business, education, health, science, arts,
engineering, hotel industries and others.
 DIFFERENT CONCEPTS AND COMPETING CONCEPTS OF 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.
• Economic globalization refers to the increasing interdependence of world
economies as a result of growing scale of cross-border trade of commodities and
services, flow of international capital and wide and rapid spread of technologies
(Shangquan, 2000).
• Industrial Globalization. Every country in the world is moving towards
specialization. Specialization may be referred to as the phenomenon of producing
only that product in which the country has competitive advantage in terms of
cost. For example, Singapore specializes in pharmaceutical while the US
specializes in military equipment.
 DIFFERENT CONCEPTS AND COMPETING CONCEPTS OF GLOBALIZATION

• Financial Globalization. It may be defined as the emergence of worldwide financial markets and better
access to external financing for corporate, national and sub-national borrowers. Some projects in the
Philippines were sponsored by foreign investors. They may be in the form of international organizations
or independent investors.
• Informational Globalization. This aspect of Globalization has perhaps had the greatest impact on the
world today. Sitting at one end of the world, you can have access to the information available in any
other part of the world with just the push of a button. Internet, television, telephone, fax, etc. are some
of the inventions that may be considered as a part of the informational Globalization process where the
information flow has dramatically increased between geographically remote areas of the world.
• Social globalization refers to the sharing of ideas and information between and through different
countries. In today’s world, the Internet and social media is at the heart of this. Good examples of social
globalization could include internationally popular films, books and TV series. The Harry Potter/ Twilight
films and books have been successful all over the world, making the characters featured globally
recognizable. However, this cultural flow tends to flow from the center (i.e. from developed countries
such as the USA to less developed countries). Social globalization is often criticized for eroding cultural
differences.
• Ecological globalization. The effects of globalization in the ecology are still not completely identified,
though some studies suggest that the process of globalization has many consequences in our ecology.
 DIFFERENT CONCEPTS AND COMPETING CONCEPTS OF GLOBALIZATION

• Globalization and the Politics. Through globalization, political issues

such as the rights of women and children are now currently discussed,
many laws are now already implemented regarding the issues on the
rights of women and children.
• Globalization with technology. Technology really plays a huge part in
the life of every individual. Also, through the advancement of
technology we can now already communicate with others despite the
distance that separate us. And through our technology today, the
process of globalization is now taking place much faster.
• Geographical. Globalization is moving towards the trend of a
borderless world. We can now explore different countries without
having any dangers.
• Pro-Globalization - Supporters of free trade
point out that economic theories such as comparative advantage
suggests that free trade leads to a more efficient allocation of
resources, with all those involved in the trade benefitting. In general,
they claim that this leads to lower prices, more employment and
better allocation of resources.
Pro-Globalization
• Peaceful Relations - Most of the countries have resorted to trade
relations with each other in order to boost their economy, leaving
behind any bitter past experiences if any.
• Employment - Considered as one of the most crucial advantages,
globalization has led to the generation of numerous employment
opportunities. Companies are moving towards the developing
countries to acquire labor force.
• Education - A very critical advantage that has aided the population is
the spread of education. With numerous educational institutions
around the globe, one can move out from the home country for
better opportunities elsewhere.
Pro-Globalization
• Product Quality - The product quality has been enhanced so as to retain the
customers. Today the customers may compromise with the price range but not
with the quality of the product. Low or poor quality can adversely affect
consumer satisfaction.
• Cheaper Prices - Globalization has brought in fierce competition in the markets.
• Communication - Every single information is easily accessible from almost
every corner of the world Circulation of information is no longer a tedious task,
and can happen in seconds. The Internet has significantly affected the global
economy, thereby providing direct access to information and products.
• Transportation - Considered as the wheel of every business organization,
connectivity to various parts of the world is no more a serious problem. Today
with various modes of transportation available, one can conveniently deliver
the products to a customer located at any part of the world.
Pro-Globalization
• GDP Increase - Gross Domestic Product, commonly known as GDP, is the money
value of the final goods and services produced within the domestic territory of the
country during an accounting year.
• Free Trade - Free trade is a policy in which a country does not levy taxes, duties,
subsidies or quota on the import/export of goods or services from other countries.
There are countries which have resolved to free trade in specific regions. This
allows consumers to buy goods and services, comparatively at a lower cost.
• Travel and Tourism - Globalization has promoted tourism to great heights.
International trade among different countries also helps in increasing the number
of tourists that visit different places around the world.
• External Borrowing - With the help of globalization, there is opportunity for
corporate, national, and sub-national borrowers to have better access to external
finance, with facilities such as external commercial borrowing and syndicated
loans.
•Anti-Globalization - Many anti-globalism activists see
globalization as the promotion of a Corporatist agenda, which is
intent on constricting the freedoms of individuals in the name of
profit. They even claim that increasing autonomy and strength of
corporate entities increasingly shape the political policy of nation-
states. Globalization imposes credit-based economics, resulting in
unsustainable growth of debt and debt crises.
Anti-Globalization
• Health Issues. Globalization has given rise to more health risks and
presents new threats and challenges for epidemics. The dawn of
HIV/AIDS. Having its origin in the wilderness of Africa, the virus has
spread like wildfire throughout the globe in no time. Food items are also
transported to various countries, and this is a matter of concern,
especially in case of perishable items.
• Loss of Culture. With large number of people moving into and out of a
country, the culture takes a backseat. People may adapt to the culture of
the resident country. They tend to follow the foreign culture more,
forgetting their own roots. This can give rise to cultural conflicts.
• Uneven Wealth Distribution. It is said that the rich are getting richer
while the poor are getting poorer. In the real sense, globalization has not
been able to reduce poverty.
Anti-Globalization
• Environment Degradation. The industrial revolution has changed the outlook of
the economy. Industries are using natural resources by means of mining, drilling,
etc. which puts a burden on the environment.
• Disparity. Though globalization has opened new avenues like wider markets and
employment, there still exists a disparity in the development of the economies.
Structural unemployment owes to the disparity created. Developed countries are
moving their factories to foreign countries where labor is cheaply available.
• Conflicts. It has given rise to terrorism and other forms of violence. Such acts not
only cause loss of human life but also huge economic losses.
• Cut-throat Competition. Opening the doors of international trade has given birth
to intense competition. This has affected the local markets dramatically. The local
players thereby suffer huge losses as they lack the potential to advertise or export
their products on a large scale. Therefore, the domestic markets shrink.