Topic: Globalization

Name:Adelina Katherina Ochiana

Student number: LON151208001
Date: 10.03.2016
Assignment: PS1 Subject Skills (FDN003)

02

Overview
Reason for choosing this topic
Starting point
Definition
Research 1
Research 2
leResearch 3

Concepts and theories 1

Concepts and theories 2 (?)
Reflection on learning
Further study
Concluding thoughts
References

Reason for choosing the topic

Why the topic interests you ?
This topic of globalization is interesting to me because I want to know
what is going to happen with our lives in the future. In my opinion the
phenomenon of globalization is destroying all the good things in that the
world, the economy of many countries is decreasing, there are conflicts
between countries such as USA and Syria became a war without
ending.
Did the lecture on the topic inspire you/get you thinking?
How?
This subject opened my eyes about the world, about the fact that day
by day it is changing into worse, terrorism is growing faster and the
economic crisis is affecting even the more developed countries with
strong economies.

Do you feel strongly about this topic? Why?

I am feeling strongly about Globalization because I read a lot about

this subject and I also studied it in Romania for half year.

A summary of your understanding of the

topic before you started your course
What did the topic mean to you?
Before starting this course at LSBM I was having contact
with this subject because in Romania I was studying at
the university for half year Geopolitics and Globalization
.
How did you feel it affected you and your
community?
Globalization is affecting my country because Romania is part of
U.E
and N.A.T.O, being an important actor in the east side of the Europe
.Romania is taking part in the cooperation initiatives, having
a decisive
role to establish economic links and to increase the stability of the region.
Also the demography of Romania is
determinant in the process of the
Globalization, having contact with the Arabic countries across the Black
Sea.

Definition
Definition 1
Globalization refers to all those processes by which the people of the
world are incorporated into a single world society, global society.
(Albrow, 1900)
Definition 2
The intensification of worldwide social relations which link distant
localities in such a way that local happenings are shaped by events
occurring many miles and vice versa. (Anthony Giddens, 1998)

 Definition 2
Globalization is the diminution or elimination of state-enforced
restrictions on exchanges across borders and the increasingly
integrated and complex global system of production and exchange that
has emerged as a result. (Palmer, 2002)
Your chosen definition
Globalization is destroying everything that is valuable in our
civilization. (Shiva , 2001)

How Globalization is affecting the World Economic

Development?
According to (Hill, 2009) Global Market refers to the Merging of
Historically Distinct and separate National Markets into one huge global
market place. The expansions of global markets liberalises the
economic activities of exchanging goods and funds.
Some of the economic forces in the world are in the favour of a
government that governs the entire world, because institutions such as
The United Nations Organization, International Monetary Fund, World
Trade Organization and World Bank are near to the concepts of those
groups as they are regulating the relationships between different
countries and governing issues of Justice, Human relations or political
factors (IMF Center, 2005). The primary purpose of WTO is to unionize
the world trading system.

Until 2005, 148 countries were members of WTO. The primary purpose of
IMF is to regulate the world monetary system. United Nation Organizations
primary purpose to bring the piece in all over the World, about 191 countries
are members of UNO (Hill, 2009).
Before the phase of Globalization, United States of America was dominant in
world export. After the advent of globalization, Germany, Japan, South Korea
and China have seriously challenged the position of America (Hill, 2009) .
Countries

United
States
Germany
France
United
Kingdom
Japan
Italy
Canada
China

Share of
World
Output in
1963
40.3%

Share of
World
Output in
2004
20.9%

Share of
World Trade
in 2004

9.7
6.3
6.5

4.3
3.1
3.1

9.5
4.8
4.7

5.5
3.4
3.0
N.A

6.9
2.9
3.5
13.2

5.7
3.8
3.4
5.9

10.4%

According to (Salvotore, 1998) investment in the forms of lands, capital

goods, inventories and factories are the real investments. Direct
investment is in the shape of when one firm is controlling another firm
or establishing a subsidiary. Foreign direct investment must be strong
enough to control the parent company and the foreign host company.
Control means that parent firms must own at least 10% stock of the
subsidiary. Lower than this limit of shares is considered as portfolio
investment (International Monetary Fund (IMF), 2008).
2500
2000
1500
1000

1971
1472

1744

500
0
2005-2007 Average

2007

2008

1185

1224

2009

2010

-500

Global FDI Inflow, average 2005-2007 and 2007-2010

(billion of dollars)

Globalization has increased the trend of Multi National Companies all around
the world. Before the Globalization phase, USA was dominant in MNCs. But
after the expansion of the globalization trend, many different nations entered
the race of MNCs. In 1973, USs shares in MNCs was about 48.5%, while in
2002 it was only 28%.
Thanks to the development of technologies specifically related to Telecom,
such as the internet, telephones, wireless technologies, undersea fibre
cables, a global technological infrastructure has been developed to enable
information to be moved smoothly across the borders. Laws regarding
Copyrights, patents and international agreements can be easily applied.
Through information technology, awareness and application of criminal laws
has become easier. Frauds in International Trade and in society can be easily
detected (Ogunsola, 2005)

After the advent of globalization, it was an apprehension that the job will shift
to developing countries form developed and advanced countries. But
Supporters argue that this shift will result in the long term benefit to the
country. Critics argue that Globalization will result in inequalities and
insecurity about the Jobs. And will ultimately causes the changes in
employment structure and labor demand will fall.
Globalization has also affected the Industrial sector of the world. Now in this
era of globalization, the focus of industries is to produce foreign commodities
and to facilitate the consumers in all over the World. For Example, Coca Cola
produces the beverages according to the taste that is acceptable in all over
the world.

Through the development of Globalization world is getting into an identical

culture that is understood by every nation, we may call it intermixing of the
cultures. People of world especially people of rich countries are getting less
conscious about their nations cultures and they have started emerging in
world culture. Globalization has resulted in increasing the diversity and
boosting telecom and tourism sector of the world (Nigam, 2009).
On the one hand globalization has resulted in making the man more
interested toward its planet in which he is living and its ecology i.e. its
environment through the technological advancements. But on the other hand
it is considered that with the growth of Transport has resulted in destruction
of Ozone layer and many species on the earth. For the economic
development every country has to pass from the dirty stage of
industrialization which results in the extraction of poisonous material and
harmful wastes that are dangerous for the humans health. But it is
considered that these things are necessary to come along with the
developments in living standards of humans (Nigam, 2009).

What Globalization is not ?

Globalization is really very recent and began only in the 1980s. This view
betrays the beholders poor knowledge of history. The European colonial era
is the most obvious instance, but one might argue that the Roman Empire,
encompassed most of the known world (for Europeans), or the Aztec Empire
which shared many of the characteristics of todays globalization. (Friedman ,
1994)
Globalization is just a new word for economic imperialism or cultural
Westenization.
Globalization means homogenization.
Globalization is opposed to human rights.
Globalization is a threat to local identities.
Globalization is often seen as global Westernization . Those who take an
upbeat view of globalization see it as a marvellous contribution of Western
civilization to the world.

From the opposite perspective, Western dominance sometimes seen

a continuation of Western Imperialism is the devil of the piece. In this
view, contemporary capitalism, driven and led by greedy and grabby
Western countries in Europe and North America, has established rule of
trade and business relations that do not serve the interests of the
proper people in the world .
Over thousands of years, globalization has contributed to the progress
of the world through travel, trade, migration, spread of cultural
influences, dissemination of knowledge and understanding (including
that of science and technology). These Global interrelations have often
been very productive in the advancement of different countries.
(Amartya Sen, How to judge Globalism)

Dimensions of Globalization
Disembedding, including delocalization. Globalization implies that
distance is becoming irrelevant, relative or at the very least less
important. This aspect of globalization is driven by technological and
economic changes, but it has cultural and political implications.
Disembedding, however, also includes all manners through which social
life becomes abstracted from its local spatially fixed context .
The speed of the transport and communication has increased
throughout the twentieth century, and this acceleration continues. It has
been said that there are no delays any more in an era of instantaneous
communication over cell phones, internet servers and television
satellites. Although this is surely an exaggeration as delays do exist,
even if only as unintended consequences speed is an important
feature of globalization .

The process of standardization was begun by nationalism and

national economies, globalization entails comparability and shared
standards where there were formerly none.
The networks connecting people across continents are becoming
denser, faster and wider every year. Mutual dependencies and
transnational connections lead to a need for more international
agreements and a refashioning of foreign policies to create fields of
opportunities, constraints and new forms of power.
The entire world is on the move, or so it might sometimes seem.
Migration, business travel, international conferences and not least
tourism have been growing steadily for decades, with a number of
important implications for local communities, politics and economies .

Although cultural crossroads, where people of different origins met, are as

ancient as urban life, their number, size and diversity is growing every day. At
this level of culture, the instantaneous exchange of messages characteristic
to the information era, leads to probably more cultural mixing than ever
before in human history .
Globalization entails the weakening, and sometimes obliteration, of
boundaries. Flows of anything, from money to refugees, are intensified in this
era. This means that territorial polities have difficulties protecting themselves
against unwanted flows .
Politics founded not in ideology or quests for universal rights but in the
maintenance and strengthening of particular collective identities are related
to globalization in two main ways. First, identity politics, whether nationalist,
ethnic, religious or regionalist, are direct responses of the globalization
process.

Secondly, identity politics in itself has a universalistic dimension in that

the grammar or rhetoric, used to promote the rights of particular groups
has important similarities across the world.
Reactions to global neoliberalism were initially described in the media
and by analysts as antiglobalization, which is a simplistic and
misleading term. The new social movements, ranging from ATTAC in
France to the Occupy movement in the USA, the Slum Dweller Alliance
in Mumbai, and Los indignados in Spain, are not opposed to global
connectedness as such, but reject the narrowly profit-seeking
neoliberalism version of globalization, which they see as dehumanizing
and oppressive. (Eriksen,2014)

02

Concluding reflection

References
Eriksen T.H.(2014),Globalization The Key Concept,London : Bloomsbury
Rothenberg, L. E. (2003). Globalization 101 The Three Tensions of
Globalization. New York: The American Forum of Global Education.
EuroStat. (2007). Euro Indicator, Selected Readings, Focus on: Measuring
Globalization. Luxembourg: Eurpoean Commission.
Harrison, A. (2006). GLOBALIZATION AND POVERTY. Cambridge:
NATIONAL BUREAU OF ECONOMIC RESEARCH
Frank J. Lechner and John Boli,(2012),The Globalization Reader,WileyBlackwell