GLOBALIZATION

Roland Robertson
• Roland Robertson, a professor of
sociology at the University of
Aberden, was the first person who
defined globalization as "the
understanding of the world and the
increased perception of the world as
a whole."
 Martin Albrow and Elizabeth King

• sociologists, define globalization

as "all those processes by which
the people of the world are
incorporated into a single world
society.
 Thomas Larsson
• is the process of the shrinking of the
world, the shortening of distances,
and the closeness of things.
• It allows the increased interaction of
any person on one part of the world
to someone found on the other side
of the world, in order to benefit".
• In 2000 the International Monetary Fund
has identified four basic aspects of
globalization:
• trade and transactions;
• capital movements and Investment;
• migration and movement of people; and
• the spreading of knowledge.
Definition of Globalization
• Globalization is the system
of interaction among the
countries of the world in
order to develop the global
economy.
•It refers to the
integration of economics
and societies all over the
world.
• It involves technological,
economic, political, and cultural
exchanges made possible largely
by advances in communication,
transportation, and
infrastructure.
Definition of Globalization

• Globalization is increasing
interdependence of national
economies in trade, finance,
and macroeconomic policy.
• Globalization is diffusion of
practices, values and
technology that have an
influence on people`s lives
worldwide.
• A reconfiguration of social
geography marked by the
growth of trans planetary and
supra-territorial connections
between people.
Definition of Globalization

• The trend has unfolded at

greatest speeds, on greatest
scales, to greatest extents, and
with greatest impacts since the
middle of the twentieth
century.
• Globalization is a process fueled
by and resulting in, increasing
cross- border flows of goods,
services, money, people,
information, and culture.
Definition of Globalization

• Globalization as a development in
the structure of geography is
closely interrelated with
concurrent developments in
structures of production,
governance, identity and
knowledge.
• Time and space is squeezed
together by means of
digital technology and
quick transport.
Globalization defined as
Internationalization
• "Global" is described as cross-border
relations between countries, and
"globalization" incomes a growth of
international exchange and
interdependence. "Globalization" is
found in enlarged movements between
countries of people, money, investments,
diseases, pollutants, messages, ideas etc.
Globalization defined as
Liberalization
• As liberation "globalization" means a process
of removing state-imposed restrictions on
movements between countries in order to
create an "open", "bordeless" world economy.
In recent decades has been widespread
reduction or even abolition of regulatory trade
barriers, foreign-exchange restrictions, capital
controls, and visas.
Globalization defined as
Universalization
• In this means, "global" describes
"worldwide", and "globalization" is the
process of spreading various objects and
experiences to people all around of the
world. Globalization-as-universalization is
viewed as standardization and
homogenization with worldwide cultural,
economic, legal and political
convergence.
There are two types of integration
A. Negative integration is the breaking down of
trade barriers or protective barriers such as
tariffs and quotas.
- It is beneficial for a country if it allows for
products that are important or essential to the
economy.
- the costs of imported raw materials will go down
- supply will increase, making it cheaper to
produce the final products for export (like
electronics, car parts, and clothes).
B. Positive integration

• aims at standardizing international economic

laws and policies.
 Effects of Globalization
.
How to identify the changes brought
by globalization.
1 Improvement of International
Trade.
• Because of globalization, the number
of countries where products can be
sold or purchased has increased
dramatically.
 Effects of Globalization
.
• 2. Technological Progress.
Because of the need to
compete and be competitive
globally, governments have
upgraded their level of
technology.
 Effects of Globalization
.
3. Increasing Influence of
Multinational Companies. A
company that has subsidiaries in
various countries is called a
multinational. Often, the head office
is found in the country where the
company was established.
An example :
• a car company whose head office is based in Japan.
This company has branches in different countries.
While the head office controls the subsidiaries, the
subsidiaries decide on production. The subsidiaries are
tasked to increase the production and profits. They are
able to do it because they have already penetrated the
local markets.
• The rise of multinational corporations began after
World War II. Large companies refer to the countries
where their subsidiaries reside as host countries.
Globalization has a lot to do with the rise of
multinational corporations.
 Effects of Globalization
. IMF, and WB.
4. Power of the WTO,
According to experts, another effect of
globalization is the strengthening
power and influence of international
institutions such as the World Trade
Organization (WTO), International
Monetary Fund (IMF), and World Bank
(WB).
 Effects of Globalization
5. .
Greater Mobility of Human Resources
across Countries.
• Globalization allows countries to source their
manpower in countries with cheap labor.
 Effects of Globalization
. of Business
6. Greater Outsourcing
Processes to Other Countries.
China, India, and the Philippines are
tremendously benefiting from this trend
of global business outsourcing. Global
companies in the US and Europe take
advantage of the cheaper labor and
highly-skilled workers that countries like
India and the Philippines can offer
7. Civil Society.
An important trend in globalization is the
increasing influence and broadening scope
of the global civil society.
Civil society often refers to NGOs
(nongovernment organizations). There are
institutions in a country that are
established and run by citizens. The family,
being an institution, is part of the society.
In globalization, global civil society refers
to organizations that advocate certain
issue or cause.
• The spread of globalization led to greater
influence of NGOs especially in areas of great
concern like human rights, the environment,
children, and workers. Together with the
growing influence of NGOs is the increasing
power of multinational corporations. If the
trend continues, globalization will pave the
way for the realization of the full potential of
these two important global actors.