Globalization

Definition:Definition: An economic phenomenonAn economic phenomenon A social phenomenonA social phenomenon A cultural phenomenonA cultural phenomenon Biological phenomenonBiological phenomenon Political phenomenonPolitical phenomenon

The movement towards the expansion of The movement towards the expansion of economic and social ties between countries economic and social ties between countries through the spread of corporate institutions and through the spread of corporate institutions and the capitalist philosophy that leads to the the capitalist philosophy that leads to the shrinking of the world in economic terms.shrinking of the world in economic terms.

GlobalizationGlobalization

A globalized worldA globalized world

Greater freedom of movement of goods, Greater freedom of movement of goods, services, capital, peopleservices, capital, people

Global citizensGlobal citizens

The Information Age – has only just The Information Age – has only just begunbegun

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 interconnectivityInternational division of laborRapidly expanding volume of capital flowsCapital remains concentrated among the wealthiest nations

Mixed evidence as to the effect of economic globalizationUnsure whether it exacerbates or reduces economic inequalityEconomic 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 GlobalizationNation states are less able to control social and economic events within their territory

Global/regional decision-making bodies •(UN, EU, etc.) are rising in importancebut…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 globalizationHas resulted in a sharp increase in reactionary “nationalist” and “fanatical” groupsHas “killed” some cultures.

Corporate DominationCorporate DominationKey Issues:Key Issues:

Damage to the Damage to the environment?environment?

Exploitation of labour?Exploitation of labour? Monopoly powerMonopoly power Economic degradationEconomic degradation Non-renewable Non-renewable

resourcesresources Damage to culturesDamage 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:Some other Other Issues:Accountability Accountability of Global businesses?of Global businesses?

Increased gap between rich and poor fuels potential Increased gap between rich and poor fuels potential terrorist reactionterrorist reaction

Ethical responsibility of business?Ethical responsibility of business?

Efforts to remove trade barriersEfforts 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 Globalization is potentially positive, but needs better management: well-designed rulesbetter management: well-designed rules

Important to position e-trade in a broader context Important to position e-trade in a broader context of economic development, socio-economic of economic development, socio-economic culture in the country, and engineering growth culture in the country, and engineering growth

The immediate international environment also The immediate international environment also plays a role (in terms of partnerships) – plays a role (in terms of partnerships) – consequently, look for the right partnerships from consequently, look for the right partnerships from a distance too.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 dothat, we must:

Understand its impacts Work to remedy the problems Work to spread the benefits as widely as possible

Thank you !

BY: NIKET KAPADIA