THE CONTEMPORARY WORLD

GLOBALIZATION
– can be describe as a process by
which people are unified into a
single society and function
together.
This process is a combination of
economic, technological, socio-
cultural and political forces.
Globalization is often used to refer
to economic globalization, that is,
integration of national economies
into the international economy
through trade, foreign direct
investment, capital flows, migration,
and the spread of technology.
Globalization is a process of
interaction and integration among
the people, companies and
governments of different nations, a
process driven by international
trade and investment and aided by
information technology.
Globalization was first used as a
term in the academic circles in the
decades of 1960’s and 1970’s but
had gained wide interest in the
1990’s.
The phenomenon of Globalization
according to Stoner et. Al (1995)
consists of three interrelated
factors: proximity, location and
attitude.
Taken together, these three facets of
globalization emphasize the
unprecedented line-up and
complexity of relationship that
confront the contemporary world.
MEASURING GLOBALIZATION
There is no doubt we now live in a
global marketplace. In scores of
countries around the globe, the
same products and services are
available to consumers and
organizations.
There are many alternatives on how
to measure globalization per
country in the world. The KOF Swiss
Economic Institute offers a useful
ranking into three broad categories
as follows:
1. Economic globalization measures
long distance flows of goods, capital
and services as well as information
and perception that accompany
market changes;
2. Social globalization measures the
spread of ideas, information,
images, and people
3. Political globalization measures the
diffusion of government policies in terms
of the number of embassies and
consulates in a country, membership in
international organization, likewise
participation of a country in United
Nations peace missions and similar
advocates.
EFFECTS OF GLOBALIZATION has
various aspects which affect the
world in several different ways such
as:
Industrial - emergence of worldwide
production markets and broader access to
a range of foreign products for consumers
and companies. Particularly movement of
material and goods between and within
national boundaries. Particularly
movement of material and goods between
and within national boundaries.
Financial - emergence of worldwide
financial markets and better access to
external financing for borrowers;
emergence of under or un-regulated
foreign exchange and speculative
markets.
Economic – realization of a global
common markets, based on the
freedom of exchange of goods and
capital.
Political – some use “globalization” to
mean the creation of a world government,
or cartels of government (e.g. WTO, World
Bank, and IMF) which regulates the
relationship among governments and
guarantees the rights arising from social
and economic globalization.
Legal / Ethical – the creation of the
international criminal court and
international justice movements. Crime
importation and raising awareness of
global crime-fighting efforts and
cooperation.
Competitions – survival in the new global
business market calls for improved
productivity and increased competition.
Many industries around the world doing
something, so industries have to upgrade
their products and use technology skilfully
to compete.
Ecological – the start of global environment
challenges that might be solved with
international cooperation, climate change,
cross-boundary, water, air pollution, over
fishing of the ocean spread of invasive
species, factories are built in developing
countries with less environmental
regulation which may increase pollution.
Social – international cultural exchange
increase circulation by people of all
nations with fewer restrictions. Spreading
of multiculturalism, and better individual
access to cultural diversity through media.
Technical – development of a global
telecommunications infrastructure and greater
data flow even into the world’s most remote
areas. Internet: creation and proliferation of
information via the internet & worldwide web
communication satellites: broadcast information
through space around the planet nearly
simultaneously allowing for communications
almost everywhere on earth.
Television: information from around the
world can be seen anywhere in the world
submarine fiber optic cable wires
telephones increase in the number of
standards applied globally; e.g. copyright
laws, patents, and world trade
agreements.
ABBREVIATION AND ITS MEANING
EU – European Union
GNP – Gross National Product
IMF – International Monetary Fund
NAFTA – North American Free Trade Area
WB – World Bank
WWII – World War II
WTO – World Trade Organization
ABBREVIATION AND ITS MEANING
AID – Agency for International Development
BERI – Business Environment Risk Intelligence
ICJ – International Court of Justice
NGOs – Non-Governmental Organizations
OPIC – Overseas Private Investment Corporation
PRS – Political Risk Group
TNCs – Transnational Corporations
UN – United Nations
 ABBREVIATION AND ITS MEANING
ASEAN – Association of Southeast Asian Nations
FTA – Free Trade Area
GATT – General Agreement on Tariff and Trades
GCC – Gulf Cooperation Council
DSB – Dispute Settlement Body
OPEC – Organization of the Petroleum Exporting Countries
SADC – South African Development Community
UNCTAD – United Nations Conference on Trade and Development