GLIOBALIZATION - refers to the existence of
free exchange of goods, services, culture and
even people, between and among countries.
- rise of capitalization
- countries have discarded taxes on imported
goods (tariffs) and opened their doors to
highly skilled workers and professionals.
“a contested concept,” Manfred Steger
remarks that since its earliest appearance in
the 1960s
‘globalization’ has been used in both popular
and academic literature to describe a process,
a condition, a system, a force, and an age.
The United Nations Conference on Trade and
Development (UNCTAD) defines economic
globalization as the “closer integration of
national economies through trade and
financial flows as well as cross-border
migration of people.”
- there is no consensus on its origin
- Globalization processes ‘have been ongoing
ever since Homo sapiens began migrating
from the African continent ultimately to
populate the rest of the world.
-The best known example of archaic
globalization is the Silk Road, which
connected Asia, Africa and Europe.
SILK ROAD - A network trade routes that
connected the east, particularly CHINA and
West.
-When Adam Smith wrote his Magnum Opus,
An Inquiry of Nations (1776), he considered
the discovery of America by Christopher
Columbus in 1492 and the discovery of the
direct sea route to India by Vasco De Gama in
1498 as the two greatest achievements in
human history.
- In the course of couple of decades these
remarkable achievements were
overshadowed by breathtaking technological
advances and organization methods of
British Industrial Revolution.
“four freedoms”:
1. Free movement of goods or
products
2. Services
3. Capital or investment
4. Persons
Free movement of goods or products is
facilitated by liberalization or the abolition of
tax on imported goods (tariff),
Free movement of Services are the ideas and
innovations
Free movement of capital or investment is
implemented through the deregulation or the
lifting of strict banking and financial
regulations,
Free movement of persons is achieved
through the loosening or abolition of visa
restrictions and barriers to migration. ( e.g.
OFW, immigrant
To illustrate a typical conflict on the idea of
globalization, one only has to look at the
perennial tit-for-tat fight between big
corporations and labor unions on issues such
as :
-migration and outsourcing of jobs, wage
hikes, and privatization of industries and
services, or the decades-old enmity between
the developed countries more popularly
known as the First World, and the developing
or underdeveloped nations collectively
labeled as the Third World on issues such as
subsidy on the agricultural sector,
industrialization, and foreign land ownership.
the difference between Globalization and
Internationalization
Internationalization refers to processes and
system that pertain to relationship between
nation-states, while globalization
encompasses processes and systems related
to “global social relations – or interactions
between international and/or transnational
entities.
POSITIVE ASPECTS OF GLOBALIZATION
• Multiculturalism and
Multilingualism
• Free Trade
• Cultural and Educational Exchanges
• Migration
• Global Cooperation
NEGATIVE ASPECTS OF GLOBALIZATION
• Linguistic hegemony of English
• Cultural homogenization
• Third World dependence on the
First World
• Global income and wealth inequality
• Tax injustice
• Racism and anti-migrant sentiment
GLOBALIZATION THEORIES
• HOMOGENEITY refers to the
increasing sameness in the world as
a cultural inputs, economic factors,
and political orientations of
societies expand to create common
practices, same economies, and
similar forms of government.
• cultural imperialism, which means a
given culture influences other
cultures.
• media imperialism, TV, music,
books, and movies are perceived as
imposed on developing countries by
the West.
• HETEROGENEITY pertains to the
creation of various cultural
practices, new economies, and
political groups because of the
interaction of elements from
different societies in the world.
• cultural hybridization that
emphasizes the integration of local
and global cultures.
Xenocentrism: Other/Western culture is
superior than our own culture
Ethnocentrism: our culture is superior than
other/western culture.
ECONOMIC GLOBALIZATION – is the
increasing integration of economies around
the world, particularly through the movement
of goods and services and capital across
borders.
It also refers to the movement of people and
knowledge across international borders.
-That is, economic globalization is rather a
qualitative transformation than just a
quantitative things.
-If, however, globalization is indeed a
‘complex, indeterminate set of process
operating very unevenly in both time and
space’
two different economies:
Protectionism is protecting one’s economy
from foreign competition by creating trade
barriers
Trade liberalization is the act of reducing
trade barriers to make international trade
easier between countries. These trade
barriers are usually tariffs which are required
fees on imports or exports and quota
-Globalization redefines the role of the nation
state as an effective manager of the national
economy.
-It is, therefore, misleading to assume that
globalization has relegated the nation state
and its policies to an obsolete or irrelevant
status; government instead ‘are acting the
midwives of globalization.’
-Even liberals recognize the economic
openness has increased vulnerability, also
admitting that states are not influenced
uniformly by globalization.
It is a historical process, result of human
innovation and technological progress.
The Four Monetary Regimes
• The classical gold standard (from the
1870s to the outbreak of World War
I in 1914) – gold as payment
• A gold exchange standard (during
the first part of the interwar period;
- Fund
• The Bretton Woods System (from
1944 to 1973);
• The “non-system” of floating and
fixed exchange rate (from 1973 to
present)
GOLD
- believed to guarantee a non-inflationary,
stable economic environment, a means for
accelerating international trade (Einaudi,
2001)
The Classical Gold Standard Regime (1870s to
1914)
-The classical gold standard was a fixed rate
regime in which governments announces and
adhere to specific exchange rate form their
currencies in relation to gold.
Gold Standard
-In gold standard, countries agreed to convert
paper money into fixed amount of gold. It is a
monetary system where a country’s currency
or paper money has a value directly linked to
gold.
- Participating countries determined the gold
content of national currencies (fixed exchange
rates)
-The primary objective was to promote
monetary openness and stability through the
maintenance of stable exchange rates.
INTERNATIONAL MONETARY SYSTEM
-refers to the rules, customs, instruments,
facilities, and organizations for effecting
international payments
including trade, investment, and finance – all
depend on the availability of money and
credit.
- most critical issue to hegemonic stability
theorists should “not (be) what the hegemon
The Creation of the International Monetary
Fund
-The most important international
organization embedded in the Bretton Woods
monetary regime was the International
Monetary Fund (IMF), that was created to
stabilize exchange rates and provide member
states with short-term loans for temporary
balance-of-payments problems.
The Creation of the International Monetary
promotes international financial cooperation
and buttress international trade. The IMF was
expected to safeguard the smooth functioning
of the gold- exchange standard by providing
short-term financial assistance in case of
temporary balance of payments difficulties
MARKET INTERGRATION
Market - a concrete local structure in which
individuals or firms sell and buy goods &
medium that allows buyers and sellers of a
specific good or service to interact in order to
facilitate an exchange
Market Integration
-Integration shows the relationship of firms in
a market. The extent of integration influences
the market conduct of the firms and
consequently their marketing efficiency.
-Markets differ in the extent of integration
and, therefore, there is a variation in their
degree of efficiency.
-Market integration is a process which refers
to the expansion of firms by consolidating
additional marketing functions and activities
under a single management.
Types of market integration
Horizontal Integration:
some marketing agencies combine to form a
union to reduce their effective number and
the extent of actual competition in the
market.
e.g. Primary milk producers , Facebook with
instagram ,
Vertical Integration:
 Vertical integration occurs when a
firm performs more than one
activity in the sequence of the
marketing process.
 It is linking together of two or more
functions in the marketing process
with in a single firm or under a
single ownership.
 For e.g. if a firm assumes wholesale
as well as retailing, it is a vertical
integration or rice processor under
taking retailing.
1. Forward Integration : takes
activities close to the consumption
function
Eg. wholesaler assuming the
function of retailing
2. Backward Integration :combination
of sources of supply. Eg. processing
firm assumes the function of
assembling/purchasing
In a Market Chain commodities flow
from producers to Consumers :
Farmer – Processor- Dealer- Retailer &
Wholesaler – Customer
Conglomeration:
A combination of agencies or activities not
directly related to each other may operate
under a unified management.
Eg : conglomeration are Hindustan Unilever
Ltd. (processed vegetables and soaps), Delhi
Cloth and General Mills (Cloth and Vanaspati).
GLOBAL CORPORATIONS
- any company that operates in at least a
country other than the country where it
originated.
- company that does business all over the
world
- To be a global company, you need to
introduce not only your products, but also
your company to people who live in another
country
Benefits of Global Company
• You can increase your customer
base
• You can reduce your operating costs
• You don’t need to be bogged down
by seasonality
• You can boost the growth rate of
your company
• You can create new jobs
Three Structural Periods in the Existence of
Global Corporations
1. Investment-based period (1950-
1970) : Development of
corporations examined through
foreign direct investment.
- Funding made for lasting interest in
enterprises operating outside the
economy of the investor for a purpose to
gain effective voice in management of
the enterprise.
2. Trade based period ( 1970-1995)
- Global corporations were controlled by
producer-driven commodities
- Firms are characterized by large amount
of concentrated capital focused on large
scale or capital intensive manufacturing.
3. Digital Globalization (1995 onwards
- Technology became integrated in both
production and consumption of the
companies and customers.
GLOBAL GOVERNANCE:
Governance:
- There is no world government to coordinate
and facilitate cooperation among all actors to
deal with threats and challenges.
- a system of rules that are dependent on
“inter-subjective” meanings as on formally
sanctioned constitutions and charters or a
system of rule that works only if the majority
accepts it.
- Governance is not synonymous with
government. While governments perform
activities that are backed by formal authority
and monopolize police powers to insure the
implementation of duly constituted policies,
governance performs activities backed by
shared goals that may or may not derive
from legal and formally prescribed
responsibilities which do not necessarily rely
on police powers to overcome defiance and
attain compliance.
- “…sum of the many ways individuals and
institutions, public and private, manage their
common affairs…” (Commission on Global
Governance)
- “… collection of governance-related
activities, rules and mechanisms, formal and
informal, existing at a variety of levels in the
world today, also referred to as the ‘pieces of
global governance’…” (Karns and Mingst)
Pieces of Global Governance
1. International Law
There are 5 sources of international
law: treaties or conventions, customary
practices, the writings of legal scholars,
judicial decisions, and general principles of
law)
Much of the growth has been in
treaty law (1951-1995: 3,666 new multilateral
treaties were concluded)
2. International Norms or Soft Law
- Not a binding legal documents, but rather
the standards of behaviors, such as: some
human rights, labor rights, framework
conventions on climate change and
biodiversity.
3. International Organizations (IGOs)
In 2003/04, there were around 238 IGOs.
Types: Global (UN, WTO, WHO…), Regional
(ASEAN, EU, AU, SAARC..), General purpose
(UN, OAS), Specialized (WTO, WHO, ILO,
Nato..)
Functions:
- Informational – gather, analyze, disseminate
- Data Forum – exchanges of views &
decision-making
- Normative – defining standards of behavior
- Rule-creating – drafting treaties
- Rule-supervisory – monitoring compliance
- Operational – actions to achieve goals
4. NGOs
There are over 6,500 NGOs that have an
international dimension either in terms of
membership or commitment to conduct
activities.
Advocating a particular cause such as human
rights, peace or environmental protection.
Providing services such as disaster relief,
humanitarian aid.
5. International Regimes
Encompassing rules, norms and principles as
well as the practices of actors that show both
how their expectations converge and their
acceptance of and compliance with rules.
E.g. IAEA, Kyoto Protocol
6. Global Conference
The Summit for Children in1990 in New York
Rio Earth Summit in 1992
Fourth World Conference on Women in 1995
Copenhagen Conference on Climate Change
(COP15)
Cancun Conference on Climate Change
(COP16) COP17?
7. Private Governance
Private governance is a growing, but little
studies phenomenon.
Private firms are attempting to establish
enforceable intellectual property rules for
music, software, harmonization of labor
standards, sanitation regulation
Actors in Global Governance
States IGOs NGOs
Experts
Global Policy Networks
MNCs
Why we need global governance?
1. Globalization
2. The End of the Cold War
3. Emergent Transnational Civil Society
Global governance is needed to cooperate
and facilitate international efforts to address
common threats and challenges.
GLOBAL INTERSTATE SYSTEM
International System:
- Interactions by various political entities, but
mostly states. Today the system is global, but
it has not always been the case. Some parts
of the world did not know of other parts,
much less interact
State & Non State Actors
1. Primary and principal actors are
states: country or nation states
2. Individual actors: Leaders and
citizens, bureaucratic agencies in
foreign ministries, multinational
corporations, and terrorist groups
State Actors:
• State: A territorial entity controlled
by a government and inhabited by a
population.
• Theoretical assumptions:
– State government
exercises sovereignty over
its territory.
– Recognized as sovereign
by other states
– Population forms a civil
society; group identity
– Seat of government with a
leader – head of
government or head of
state
-- Political organization with a
centralized government that
maintains the legitimate use of force
in a certain territory.
- Set of relationships among the
world’s states, structured according
to certain rules and patterns of
interaction.
- Major source of conflict: Frequent
mismatch between perceived
nations and actual borders.
- Great variation in terms of the size
of states’ total annual economic
activity
- Gross Domestic Product (GDP)
- Great powers
- Most powerful of these states are
called superpowers
Non-State Actors
-MNCs: Multinational Corporations
-IGOs: Intergovernmental Organizations
-INGOs: International nongovernmental
organizations
- Other individuals or groups that are
politically active but not necessarily
recognized officially (terrorists, nations, etc.)
The Study of Global Interstate System
• International relations pertains to
the study of state and non-state
actors and their relationship to each
other in the international system.
Narrowly defined: The field of IR
concerns the relationships among
states (or governments).
• International system:
– A patterned set of
interactions among the
major political actors on
the international stage.
Origin of States
WHERE DID STATES COME FROM?
1. primitive times -- loyalty to family
2. Then village
3. Then tribe
4. Then city-state or kingdom by about
3000 b.c. to 1648 a.d
The international state system was born in
Europe with the Treaty of Westphalia in
1648, after the Thirty Years War.
With this treaty state sovereignty was
recognized for the first time. States begin to
grow in power.
Expansion of the Interstate System
Three Waves ( areas outside of Western
Europe first to form new States)
1. USA and Latin America (1780 --
1850)
2. East Europe (after WWI) Self-
determination
3. Asia and Africa (after WWII), later
fall of communism of Russian
Empire and Yugoslavia (after 1989)
The expansion of the Interstate system
began in Europe, spread globally
through imperialism, resulting in over
two hundred states and most existing in
poverty.
Power of State
A state is a political entity with:
1. control of some area of land --
territorial unit
2. solely responsible for military
security -- control over military for
defense
3. Economic control such as power to
print money, trade restrictions, and
power to tax
4. Administered by a governmental
bureaucracy (social welfare, tax,
police, transportation)
States generally have a monopoly to use
force in legitimate societies, although
this is an object of conflict in countries
where there are civil wars.
Sovereignty
1. Key concept in the international
state system and international law.
2. States recognized each others in the
international system (usually)
3. By sovereignty, we mean that in
principal all states are legally equal
(de jure).
4. Sovereignty is recognition by other
states that a state may manage its
internal affairs how it pleases.
Problems of Sovereignty
• Sovereignty is a legal definition and
does not mean that all states are
equal in their power, influence,
wealth, etc.
• Sovereignty also does not mean that
states can prevent all crime,
injustice, etc. Some states have
higher capacity to regulate their
own borders and people than
others.
Concept of Nation
A nation is a group of people who feel they
have something in common.
Nations are defined as socially cohesive
groups that have common political goals,
common language; usually share a single
perception of history, as well as common
religion, traditions, symbols and myths.
Some states have more than one nation,
such as Iraq.
Some multi-nation states collapse from civil
war, such as Yugoslavia, while others survive,
such as Belgium
Some nations have no state, such as the
Kurds or the Palestinians
Collapse of Yugoslavia
Advantages of InterState System
Information Revolution: Growing
accumulation of human knowledge; and the
accessibility of new knowledge through
rapidly spreading technologies
Increasing Global Productivity: efficiency of
economic output is enhanced through the
introduction, spread, and improvement of
computer-based technologies, spread of
MNCs (economic enterprises with operations
in two or more countries), and the mobility of
global capital
Rapid Rise of Newly Emerging Global
Economies: China, India, Brazil; augers the
potential for reduction in global poverty
Development of Renewable Energy Sources:
new research and technology investment in
energy sources of sun, wind, and biomass etc.
Global Spread of Democracy: unprecedented
adoption of democratic ideas and institutions
around the world
Continued Growth of Authoritative Global
and Regional Institutions:
Proliferation and Networking of NGOs
Growth of international regimes
Decline of interstate Warfare
Rapid Proliferation of International Law
protecting the individual
Disadvantages of InterState System
Global Environmental Degradation: these
global threats include
1. global warming, the thinning of the
protective ozone layer of the
atmosphere accompanied by rising
rates of skin cancer;
2. destruction of the world’s rain
forests (global lungs) and denuding
of other forested areas;
3. rapid urbanization owing to peasant
flight to megacities in countries like
China and India with accompanying
pollution and urban poverty;
4. Spread of deserts into formerly
fertile regions of Asia, Africa, and
Latin America;
5. The elimination of species of plants
and animals and reduction in
biodiversity;
6. Accumulation of radioactive debris
and nuclear waste
Overpopulation: in developing world may
contribute to famine, spread of disease
(AIDS), land hunger, political unrest, and
large-scale migration to rich states with aging
and shrinking population
Resource Depletion: energy demands outstrip • Solves the collective goods problem
known reserves of petroleum and natural gas by rewarding behavior that
as growing populations and economic contributes to the group and
development places ever greater stress on punishing behavior that pursues
finite sources of fresh water and fertile land self-interest at the cost of the
group
Proliferation of Religious and Ethnic
Extremism: identity construction in the age of – Easy to understand and
globalization prompts fragmentation, the can be “enforced” without
questioning of authoritative governmental any central authority
and social structures from below; target often
innocent civilians – Positive and negative
reciprocity
Global Proliferation of WMD: spread of – Disadvantage: It can lead
nuclear, chemical, and biological weapons to to a downward spiral as
countries divided by profound political each side punishes what it
differences, f.ex. Pakistan and India believes to be the
negative acts of the other.
Collapse of states: spread of socio-political
disorder in selected regions • Generally people
Global spread of disease: rapid spread of overestimate
pathogens that threaten humans, livestock, their own good
and plant life and the threat of new intentions and
pandemics such as the avian influenza underestimate
those of
Growing North-South wealth discrepancies: opponents or
rising disparities in wealth between winners rivals.
and losers in the course of globalization
Identity
Resistance by the U.S. to work with
international and multilateral organizations: • Identity principle does not rely on
global threats cannot be managed unilaterally self-interest.
• Members of an identity community
Core Principles for Solving Collective Goods
Problem care about the interests of others in
the community enough to sacrifice
Dominance their own interests to benefit
Solves the collective goods problem by others.
establishing a power hierarchy in which those
at the top control those below – Family, extended family,
kinship group roots, clan,
-Status hierarchy nation, religious and
- Symbolic acts of submission and ethnic groups
dominance reinforce the hierarchy. • In IR, identity communities play
-Hegemon important roles in overcoming
The advantage of the dominance solution difficult collective goods problems;
while at times identity construction
- Forces members of group to contribute to can intensify the collective goods
the common good problem
- Minimizes open conflict within the group
– Nonstate actors also rely
Disadvantage of the dominance solution on identity politics.
- Stability comes at a cost of constant
oppression of, and resentment by, the lower-
ranking members of the status hierarchy.
- Conflicts over position can sometimes
harm the group’s stability and well-being.
Reciprocity
-