THE CONTEMPORARY

WORLD

LESSON 1
GLOBALIZATION
WHAT IS 'GLOBALIZATION'?

• It is a process of interaction and integration

among the people, companies and governments of
different nations, a procesd driven by
international trade and investments and aided by
information technology.
• Globalization can be also be defined as the free
movement of goods, services and people across
the world in seamless and integrated manner.
• It makes the world more accessible to everyone.
• World Health Organization define globalization,
is generally understood to include two inter-
related elements:
1. the opening of international borders to
increasingly fast flows of goods, services,
finance, people and ideas.
2. the changes in institutions and policies at
national and international levels that facilitate
or promote such flows.
Meaning, it has the potential for both positive and
negative effects on development and health
• Thomas Friedman define globalization as, as the
inexorable integration of markets, nation states,
and technologies to a degree never witnessed
before in a way that is enabling individuals,
corporations and nation-states to reach around the
world farther, faster, deeper, and cheaper than
ever before.
• Meanwhile, according to Manfred Steger, “the
term globalization applies to a set of social
processes that appear to transform our present
social condition of weakening nationality into one
of globality.”
THE BENEFITS OF
GLOBALIZATION ARE:
• More international trade.
• More wealth in the world.
• Improve living standards.
• Increased creativity and innovation.
• More goods & services generally available at
lower prices.
• Easy access to foreign culture.
 TYPES OF
GLOBALIZATION
ECONOMIC
GLOBALIZATION
• Economic globalization refers to interconnectedness of
economies through trade and exchange of resources.
• It also refers to the widespread international
movements of good, services, capital, technology and
information.
• Economic globalization primarily comprises the
globalization of production, finance, markets,
technology, organizational regimes, institutions,
corporations, and labour.
SOCIAL GLOBALIZATION

• It pertains to human interaction within cultural

communities, encompassing topics like family,
religion, work and education.
• It is a global interconnectedness between the people.
• It is also a measure of how easily information and
ideas pass between people in their own country and
between different countries (includes access to
internet and social media networks).
POLITICAL
GLOBALIZATION
• Refers to the amount of political co-operation that
exist between different countries.
• Political globalization refers to the growth of the
worldwide political system, both in size and
complexity.
• It also refers to the organization of different countries
into trade blocs.
WHAT CAUSES
GLOBALIZATION?
The primary components that led to the
intergration of international market are:
• International finance—sometimes known as international
macroeconomics—is a section of financial economics that
deals with the monetary interactions that occur between
two or more countries. This section is concerned with
topics that include foreign direct investment and currency
exchange rates.
• Multinational production, defined as production that is
carried out by firms outside of their country of origin.
• Trade is a type of economic globalization and a measure
(economic indicator) of economic integration. It represents
the proportion of all production that crosses the
boundaries of a country, as well as the number of jobs in
that country dependent upon external trade.
 The three components leads to
variation in basic causes of
globalization . For example, various
governments possess all of political
incentives they need to regulate the
movement of cross-border capital,
but the revolution of information
technology has made it impossible.
HOW DOES TECHNOLOGY
DRIVE GLOBALIZATION?
Technological advancement drives globalization by
making it easier for people, goods, and ideas to move
across borders. For example, people from all over the
world can now share their ideas in just a second or
minute through the internet, which has enhanced
communication and connectivity.
THE PROS AND CONS
OF GLOBALIZATION
PROS OF GLOBALIZATION
1. It encourages free trade. Without borders in place, consumers can
purchase items from anywhere in the world at a reduced cost. There
would be fewer barriers in place, like tariffs, sales taxes, or subsidies
because there wouldn’t be nations in place that could add
restrictions.
2. More trade means the potential for more jobs. When there are fewer
barriers in place to purchase items, then consumers will generally
purchase more things. This creates the foundation that businesses
need to create more jobs.
3. It eliminates currency manipulation. Many countries today
manipulate their currencies to benefit their local economy. Even the
three “primary” currencies of the world do this: the pound, the euro,
and the dollar.
4. Open borders mean more opportunities to develop poor
areas of the world. There are many nations in the world
today that are in a state of entry-level industrialization.
Poverty is a feature in many of these developing
countries. Through the process of globalization, the
removal of borders allows the people in these areas to
experience greater prosperity because each area gains
the ability to access what they need.
5. It allows for open lines of communication.
When borders are removed, people have the ability to
communicate with one another more freely. There is a
greater intermingling of cultures, which allows people
to have a greater perspective about the world.
6. We could begin pooling resources to do great
things. Multiple countries are running space programs
right now. Some private businesses are doing the same
thing. If they could pool their resources and combine
talents to work toward one single goal instead of having
multiple agencies all trying to do the same thing, we
could be more efficient with our innovation in the area
of space exploration. The same principle could be
applied to virtually any industry or idea.
CONS OF GLOBALIZATION

1. It generally makes the rich become rich and the poor to become
mired in poverty. This means the rich can access what they
want or need to become richer, but the poor get trapped in
poverty because they don’t have the means to access success.
2. Jobs get transferred to lower-cost areas.
Jobs can be created through globalism, but they tend to be
created in the areas where labor costs are the cheapest.
3. Globalism creates a culture of fear.
Even in jobs aren’t exported to cheaper areas of the planet,
business owners can hold the threat of doing so over the
heads of their current workers to gain salary concessions.
4. It creates a political system where the biggest and the
richest have influence. The largest businesses and
wealthiest people could hoard global resources for
themselves through whatever government was put into
place, enhancing the social inequalities that are already
being seen on smaller scales.
5. Diseases travel faster in a world that is globalized.
When people stay within their own regions, there are
fewer problems with communicable diseases. If there
were no borders and people could travel freely to
wherever they wished to go, this issue would cause even
the most remote parts of the planet to be exposed to
potentially deadly health concerns.
6. It could have a negative impact on the
environment. Let’s say that production levels
increase because everyone sees a boost in their
economic circumstances. This would potentially
increase pollution levels that could acidify the air,
the ocean, and cause more issues with global
warming.
CONCLUSION
• Globalization is the key factor for international business.
• Globalization is an event occurred in unprecedented pace and gives definition to
the world market. It is still public debate whether it is beneficial or detrimental
most especially to the average citizens. It may directly on indirectly affect
everyone, but not everyone gets thr same benefits.
• With globalization, there comes a higher level of thinking and strategizing.
• Globalization has contributed to global warming, climate change and the
overuse of natural resources. An increase in the demand for good has boosted
manufacturing and industrialization.
• The globalization pros and cons show that there would be many benefits to a
borderless world, but there would also be great challenges which would need to
be solved for it to be a workable solution. Whether one supports a world
without borders or supports the current state of affairs, one truth can be found:
we have a responsibility to help each other. When a minority of the world
consumes a vast majority of its resources, that is evidence which shows we must
heed the call to help people in need.
REFERENCE:

https://www.globalization101.org/what-is-
globalization/#targetText=Globalization%20is%20a%20
process%20of,and%20aided%20by%20information%20te
chnology.
https://www.tutor2u.net/politics/reference/types-of-
globalisation
https://vittana.org/22-globalization-pros-and-cons