ISSUES ABOUT GLOBALISATION

GUIDE QUESTIONS
 How globalization affects the world, the
community, family, and oneself?

 What are the pros and cons of globalisation?

 Can this be considered as an instrument of

imperialism and to further advance the
interests of capitalist countries?
DEFINITION OF GLOBALISATION

 There is no standard, prescriptive, and

textbook definition of globalisation.

 There are numerous meanings, views, and

usage from different disciplines.

 Aside from the definition, it is being debated

either as an abstract or concrete concept.
 John Wiseman, in his work “Australia and
the Politics of Globalisation” said that:

Globalisation is the most slippery, dangerous, and

important buzzword of the late twentieth century. It is
slippery because it can have many meanings and be
used in many ways. It is dangerous because too often it
is used as a powerful and simplistic justification for the
endless expansion of unregulated capitalist relations
into every part of life in every corner of the globe. It is
important because debates about globalisation can
illuminate a world in which time and space have been
so dramatically compressed that distant actions in one
corner of the globe have rapid and significant
repercussions on people and places far away.
THOMAS FRIEDMAN’S GLOBALISATION

Thomas Friedman divided globalisation into three

periods:

1. Globalisation of countries from year 1492 to

1800

2. Globalisation of companies from year 1800 to

2000

3. Globalisation of individual from year 2000 up to

present
Globalization is not a new concept
 In ancient times, traders travelled vast distances to
buy rare commodities such as salt, spices and gold,
which they would then sell in their home countries.

 The 19th century Industrial Revolution brought

advances in communication and transportation that
have removed borders and increased cross-border
trade.

 In the last few decades, globalization has occurred at

an unprecedented pace.
 GLOBALISATION IS NOT A TREND NOR A FAD

The simple definition of globalization is the

interweaving of markets, technology, information
systems and telecommunications systems in a way
that is shrinking the world from a size medium to a
size small, and enabling each of us to reach around
the world farther, faster, deeper, and cheaper than
ever before.
 Globalisation systems are also characterized by
one overarching feature and that is integration

 In this new system all your threats and

opportunities increasing flow from who you are
connected to, and it is symbolized by the World
Wide Web

 So basically we've gone from a world of division

and walls to a world of integration and webs.

 And in globalization, we reach for the Internet,

which is a symbol that we are all increasingly
connected, and nobody's quite in charge.
 The central logic of globalisation exactly
mirrors the logic of the Internet.

 We are all increasingly connected, but

nobody's in charge.
BREAKING DOWN 'Globalisation'
 Through globalisation, corporations can gain a
competitive advantage from lower operating
costs, and access to new raw materials and
additional markets.

 In addition, multinational corporations can

manufacture, buy and sell goods worldwide.

 For example, a Japan-based car manufacturer

can manufacture auto parts in several developing
countries, ship the parts to another country for
assembly and sell the finished cars to any nation.
 Technology is a major contributor to globalisation.

 Advancements in IT and the flow of information

across borders have increased awareness among
populations of economic trends and investment
opportunities.

 Technological advancement such as digitalisation

has simplified and accelerated the transfer
of financial assets between countries.
The Broader Meaning of Globalisation
 Globalization is also a social, cultural, political and legal phenomenon.

 In social terms, globalization represents greater interconnectedness

among global populations.

 Culturally, globalization represents the exchange of ideas and values

among cultures, and even a trend toward the development of a single
world culture.

 Politically, globalization has shifted countries' political activities to the

global level through intergovernmental organizations like the United
Nations and the World Trade Organization.

 With regard to law, globalization has altered how international law is

created and enforced.
 Globalization represents the global integration of
international trade, investment, information
technology and cultures.

 Government policies designed to open economies

domestically and internationally to boost development
in poorer countries and raise standards of living for
their people are what drive globalization.

 However, these policies have created an international

free market that has mainly benefited multinational
corporations in the Western world to the detriment of
smaller businesses, cultures and common people.
The Globalisation Controversy

 Proponents of globalisation believe it allows

developing countries to catch up to industrialized
nations through increased manufacturing,
diversification, economic expansion and
improvements in standards of living.

 China is a good example of a national economy that

has benefited immensely from globalisation.
 Outsourcing by companies brings jobs and technology
to developing countries.

 Trade initiatives increase cross-border trading by

removing supply-side and trade-related constraints.

 The North American Free Trade Agreement, for

example, encouraged U.S. car manufacturers to
relocate operations to Mexico where labor costs are
lower, and many U.S. companies have outsourced call
centers to India.
 Globalisation has advanced social justice on
an international scale, and globalisation
advocates report that it has drawn attention
to human rights worldwide.

 In addition, some feel the spread of pop

culture across borders will advance the
exchange of ideas, art, language and music.
 Standards of living have risen overall as more
third-world countries experience
industrialisation. However, some politicians
argue that globalization is detrimental to
the middle class, and is causing increasing
economic and political polarization in the
United States.

 Outsourcing, where U.S. companies transfer

their facilities abroad to lower labor costs and
avoid negotiating with unions, means workers
in the United States must now compete
internationally for jobs.
 Globalization has contributed to global warming, climate
change and the overuse of natural resources.

 An increase in the demand for goods has boosted

manufacturing and industrialisation.

 Globalisation has also increased homogenisation in

countries.

 For example, international chains, such as Starbucks, Nike

and The Gap, dominate commercial space in every U.S.
town and many towns in other nations.

 Cultural exchange has been largely one-sided

because U.S. goods and culture have influenced
other countries more than those of any other nation.