Transcript GLOBALISATION

Globalization
Globalization
Definition:
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An economic phenomenon
A social phenomenon
A cultural phenomenon
Biological phenomenon
Political phenomenon
The movement towards the expansion of
economic and social ties between countries
through the spread of corporate institutions and
the capitalist philosophy that leads to the
shrinking of the world in economic terms.
A globalized world
Greater freedom of movement of goods,
services, capital, people
Global citizens
The Information Age – has only just
begun
Globalization and its challenges
•Globalization – the removal of barriers to
free trade and the closer integration of
national economies – can be a force for
good that has the potential to enrich
everyone in the world, particularly the poor,
but the way it has been managed (especially
the international trade agreements) needs to
be rethought. Joseph Stiglitz
•Globalization has been “misgoverned”.
John K. Galbraith
Economic Globalization
Increasing economic
interconnectivity
International division of labor
Rapidly expanding volume of capital
flows
Capital remains concentrated among
the wealthiest nations
Mixed evidence as to the effect of
economic globalization
Unsure whether it exacerbates or
reduces economic inequality
Economic interdependence is related
to more peaceful relations, but those
left behind tend to be resentful
•Made possible by:
•Technology
•Communication
networks
•Internet access
•Growth of economic
cooperation – trading
blocs (EU, NAFTA,
etc.)
•Collapse of
‘communism’
•Movement to free
trade
Trade has led to massive increases in wealth for many countries
How far does trade help children like these?
Lack of opportunities for the poor to be able to have access to markets.
No matter where you go in the world, certain businesses will always have a presence.
Politics and Globalization
Nation states are less able to
control
social and economic events within
their
territory
Global/regional decision-making
bodies
•(UN, EU, etc.) are rising in
importance
but…
They are not yet fully
democratic/accountable
“CNN” effect pressures
governments to
•intervene on human rights
violations
Cultural Globalization
Increases exposure to foreign ideas
and
practices, but…
Cultural exports are disproportionately
from western countries, particularly the
U.S.
In some cases, has resulted in
“commoditization” of cultures.
Some ethnic and religious groups
feel
culturally threatened by
globalization
Has resulted in a sharp increase in
reactionary “nationalist” and “fanatical”
groups
Has “killed” some cultures.
Corporate Domination
Key Issues:
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Damage to the
environment?
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Exploitation of labour?
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Monopoly power
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Economic degradation
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Non-renewable
resources
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Damage to cultures
Shell and Nike’s activities have come under severe criticism
in some quarters.
Technology and Globalization
•Increases access to information, but…
•Access is unevenly distributed.
•Has made it easier to seek out like-minded voices and
avoid opposing views.
•Makes surveillance and certain types of
control easier.
Some other Other Issues:
Accountability
of Global businesses?
Increased gap between rich and poor fuels potential
terrorist reaction
Ethical responsibility of business?
Efforts to remove trade barriers
There are plenty of people who believe that globalisation is a negative development,
protests at the G8 summits, pollution, poverty and concern over GM crops are just
some of the issues.
Some conclusions
Globalization is potentially positive, but needs
better management: well-designed rules
Important to position e-trade in a broader
context of economic development, socioeconomic culture in the country, and
engineering growth
The immediate international environment also
plays a role (in terms of partnerships) –
consequently, look for the right partnerships
from a distance too.
Globalization Is Here to Stay!
Globalization does have problems and
negative effects, but it is not going to
disappear. So…
We need to learn how to reap its
benefits, and minimize its costs. To do
that, we must:
Understand its impacts
Work to remedy the problems
Work to spread the benefits as widely as
possible
Thank you !
BY: NIKET KAPADIA