GLOBALIZATION

A brief history of Globalization

Silk Road
Slave Trade
Opium Wars
Colonization
DEFINITION by authors
Globalization is first defined as “ the understanding of the world and
the increased perception of the world as a whole” – Roland
Robertson
It can also be defined as the intensification of social relations
throughout the world, linking distant localities in such a way that
local happenings are formed as a result of events that occur many
miles away and vice versa – Anthony Giddens ("The Consequences of
Modernity“)
Globalization can be defined as
(UNESCO):
a world environment in which there is relatively
free and frequent movement of goods, capital,
people, information and ideas internationally.
MAIN CONCEPTS OF GLOBALISATION
the promotion of free trade
multinational corporations
Transport
media and communications technologies
consumerism

Source: www.unesco.org
1.)the promotion of free trade

Since World War II, and especially since the 1980s, governments
have reduced many barriers to international trade through
international agreements such as the General Agreement on
Tariffs and Trade (GATT) and the World Trade Organization (WTO)
These agreements have led to many initiatives to promote what is called “free trade”,
including:

The elimination of tariffs (taxes on imported goods)

The elimination of import quotas (limits on the amount of any
product that can be imported)
The creation of free trade zones where there are only small or no
tariffs as well as cheap land and skilled, but controlled, labour
The reduction or elimination of controls on the movement of
capital out of a country so profits can easily be returned to the base
country or a tax-haven
The reduction, elimination, or harmonisation of subsidies for local
businesses so overseas companies can compete against them
without any support for local industry and employers
The establishment of local subsidies for global corporations so that
they can make things cheaper in oen country rather than another
The harmonisation of intellectual property laws and cross-border
recognition of intellectual property restrictions (e.g. patents
granted by China would be recognised in the United States and vice
versa).
Significance of “free trade”
Greatly increased opportunities for international trade and
investment.
It promotes “Neo- liberalism”

ideology and policy model that

emphasizes the value of free market
competition.
Q: Where do you stand on the choice of “free
trade” or “fair trade”? Why? Where did the
ideas behind your position come from?
2.) Multinational Corporation (mnc)
A multinational corporation (MNC) is a large company
engaged in international production and sales.
The largest MNCs have raw materials extraction and
production sites in many different countries, even often
manufacturing different components of a product in
different countries where it has a cost advantage.
Some examples of mncs
1. UNILEVER – The world’s biggest food and soap company with
outliets in 150 countries round the world, selling products as
diverse as Omo washing powder, Lipton tea, Dove soap and
Magnum ice-cream.
2. GAZPROM – The biggest company in Russia and the largest gas
company in the world – and only a decade old
3. LEVI’S – The company that invented jeans, and has been in business for 150 years.
4. SHELL – The energy company that operates in 140 countries, and, through chain of petrol
filling stations, claims to run the largest retail network in the world.
5. MCDONALD’S – The world’s best-known fast food brand with over 30,000 restaurants in
120 countries.
THE EFFECTS OF MULTINATIONAL
CORPORATIONS
 Transport
(“Transportation and Globalization”
Jean-Paul Rodrigue )

Transportation is one of the least visible, but critical

components of the global economy by supporting a wide
array of movements of passengers and freight between
nations.
The flow of goods are complemented by movements of
people between borders for a wide array of activities such as
business, tourism and even migration. The circulation of
goods and people within the global economy thus must be
supported by transportation.
media and communications technologies
The rise of the Internet is only one of the many
manifestations of globalisation and communication
technologies. The mass media have and are having a major
impact on linking people and ideas around the world
(newspapers, radio and television, to Hollywood and
Bollywood movies through to the Internet, Google, Twittter,
Facebook and free international telephone calls via Skype.)
THE EFFECTS OF MEDIA AND
COMMUNICATION TECHNOLOGIES
IT NORMALIZE GLOBAL EXPERIENCE
IT OPENS THE MIND TO NEW IDEAS AND EXPERIENCES, AND
STRENGTHENING THE UNIVERSAL VALUES IN A GLOBAL
CULTURE OF PEACE AND UNDERSTANDING.
DECREASING DIVERSITY OF GLOBAL CULTURES.
CONSUMERISM
oThe theory that an increasing consumption of goods
is economically desirable

… the contemporary marketplace is shaped solely by the

craven needs of lowbrow consumerism …
— Thomas Byrne Edsall
CONSUMERISM IN GLOBALIZATION AND
MORALITY
ACTIVITY (1/2 SHEET OF PAPER)
WITH ALL THE DISCUSSION ON THE ELEMENTS OF
GLOBALIZATION; GIVE AN ELEMENT WHICH IS FOR YOU HAS
A BIG IMPACT IN THE GLOBALIZATION MOVEMENT AND
WHY