GLOBALISATION

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Globalization
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Globalization

• Definition
• An economic phenomenon
• A social phenomenon
• A cultural phenomenon
• Biological phenomenon
• Political phenomenon
• The movement towards the expansion of economic
  and social ties between countries through the
  spread of corporate institutions and the
  capitalist philosophy that leads to the shrinking
  of the world in economic terms.

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A globalized world

• Greater freedom of movement of goods, services,
  capital, people
• Global citizens
• The Information Age has only just begun

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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

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• Economic Globalization
• Increasing economic interconnectivity
• International division of labor
• Rapidly expanding volume of capital flows
• Capital remains concentrated among the wealthiest
  nations
• Mixed evidence as to the effect of
• economic globalization
• Unsure whether it exacerbates or reduces economic
  inequality
• Economic interdependence is related to more
  peaceful relations, but those left behind tend to
  be resentful

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• Made possible by
• Technology
• Communication networks
• Internet access
• Growth of economic cooperation trading blocs
  (EU, NAFTA, etc.)
• Collapse of communism
• Movement to free trade

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Trade has led to massive increases in wealth for
many countries
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How far does trade help children like these?
Lack of opportunities for the poor to be able to
have access to markets.
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No matter where you go in the world, certain
businesses will always have a presence.
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• Politics and Globalization
• Nation states are less able to control
• social and economic events within their
• territory
• Global/regional decision-making bodies
• (UN, EU, etc.) are rising in importance
• but
• They are not yet fully democratic/accountable
• CNN effect pressures governments to
• intervene on human rights violations

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• 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 globalization
• Has resulted in a sharp increase in reactionary
  nationalist and fanatical groups
• Has killed some cultures.

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Corporate Domination

• Key Issues
• Damage to the environment?
• Exploitation of labour?
• Monopoly power
• Economic degradation
• Non-renewable resources
• Damage to cultures

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Shell and Nikes activities have come under
severe criticism in some quarters.
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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.

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Some other Other Issues

• Accountability of Global businesses?
• Increased gap between rich and poor fuels
  potential terrorist reaction
• Ethical responsibility of business?
• Efforts to remove trade barriers

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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.
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Some conclusions

• Globalization is potentially positive, but needs
  better management well-designed rules
• Important to position e-trade in a broader
  context of economic development, socio-economic
  culture in the country, and engineering growth
• The immediate international environment also
  plays a role (in terms of partnerships)
  consequently, look for the right partnerships
  from a distance too.

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• 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 do
• that, we must
• Understand its impacts
• Work to remedy the problems
• Work to spread the benefits as widely as possible

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Thank you !
BY NIKET KAPADIA