What is Globalization?

Globalization is a difficult term to define because it has come to mean so many things. In general, globalization refers to the trend toward countries joining together economically, through education, society and politics, and viewing themselves not only through their national identity but also as part of the world as a whole. Globalization is said to bring people of all nations closer together, especially through a common medium like the economy or the Internet.

In our world, there are few places a person can’t get to within a day of travel, and few people a person can’t reach via telephone or Internet. Because of modern modes of travel and communication, citizens of a nation are more conscious of the world at large and may be influenced by other cultures in a variety of ways. Time and space matter less, and even language barriers are being overcome as people all over the world communicate through trade, social Internet forums, various media sources, and a variety of other ways.

Is Globalization a Good Thing?

There is a heated debate about the true effects of globalization and if it really is such a good thing. Good or bad, though, there isn't much argument as to whether or not it is happening. Let's look at the positive and negative sides of globalization, and you can decide for yourself whether or not it is beneficial for our world.

Positive Aspects of Globalization As more money is poured into developing countries, there is a greater chance for the people in those countries to economically succeed and improve their standard of living. Global competition encourages creativity and innovation and keeps commodities and services costs under control. Developing countries are able to reap the benefits of current technology without undergoing many of the growing pains associated with development of these technologies.

Governments are able to work together better towards common goals now that there is an advantage in co-operation, an improved ability to interact and coordinate, and a global awareness of issues. There is a greater access to foreign culture in the form of movies, music, food, clothing, and more. In short, the world has more choices.

Negative Aspects of Globalization Outsourcing, while it provides jobs to a population in one country, takes away those jobs from another country, leaving many without opportunities. Although different cultures from around the world are able to interact, they begin to meld, and the contours and individuality of each begin to fade. There may be a greater risk of disease spreading worldwide, as well as invasive species that could prove devastating in non-native ecosystems.

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There is little international regulation, an unfortunate fact that could have dire consequences for the safety of people and the environment. Large Western-driven organizations such as the International Monetary Fund and the World Bank make it easy for a developing country to obtain a loan. However, a Western-focus is often applied to a non-Western situation, resulting in failed progress.

NO LOGO Naomi Klein

Naomi Klein (born May 8, 1970) is a Canadian author and social activist known for her political analyses and criticism of corporate globalization. Klein was born in Montreal, Quebec and brought up in a Jewish family with a history of peace activism. Her parents had moved to Montreal from the U.S. in 1967 as war resisters to the Vietnam War. Her mother, documentary film-maker Bonnie Sherr Klein, is best known for her anti-pornography film Not a Love Story. Her father, Michael Klein, is a physician and a member of Physicians for Social Responsibility. Her brother, Seth Klein, is director of the British Columbia office of the Canadian Centre for Policy Alternatives.

No Logo: Taking Aim at the Brand Bullies is a book by Canadian author Naomi Klein. First published by Knopf Canada in January 2000, shortly after the 1999 WTO Ministerial Conference protests in Seattle generated media attention around such issues, it became one of the most influential books about the alter-globalization movement and an international bestseller

In 2000, Klein published the book No Logo, which for many became a manifesto of the anti-corporate globalization movement. In it, she attacks brand- oriented consumer culture and the operations of large corporations. She also accuses several such corporations of unethically exploiting workers in the world's poorest countries in pursuit of greater profits. In this book, Klein criticized Nike so severely that Nike published a point-by-point response. No Logo became an international bestseller, selling over one million copies in over 28 languages.

What is Globalisation? It refers to the rapid increase in the share of economic activity taking place across national boundaries.

Global income is more than $31 trillion a year, but 1.2 billion people of the world's population earn less than $1 a day.

80% of the global population earns only 20% of global income, and within many countries there is a large gap between rich and poor.

The 3 billion people living in the 24 developing countries that increased their integration into the world economy enjoyed an average 5% growth rate in income per capita, longer life expectancy and better schooling.

The digital and information revolution has changed the way the world learns, communicates, does business and treats illnesses. In 2002, there were 364 people per 1000 using the internet in high income countries, while there were only 10 per 1000 in low income countries.

Two billion people, living in countries in sub-Saharan Africa, the Middle East, and the former Soviet Union, have been unable to increase their integration into the world economy, and their economies have contracted, poverty has risen, and education levels have risen less rapidly than in the more globalised countries.

Economic Globalisation The increasing integration of national economies that is occurring in association with modern technology and trade liberalisation. What might political globalisation mean?

They include: 1.Multinational enterprises that carry out business across national boundaries; 2.The World Trade Organisation (WTO), through which international trade agreements are negotiated and enforced; 3.The World Bank and the International Monetary Fund (IMF) which are meant to assist governments in achieving development aims through the provision of loans and technical assistance; and 4.National governments, who together with these international institutions, are instrumental in determining the outcomes of globalisation. Key Players in Globalisation

Large corporations active in a number of countries. Multinational Companies

Reasons for Globalisation Globalisation helps minimise labour costs In some labour-intensive industries (eg. clothing, toy making etc), wages represent the largest input for businesses. Many labour intensive areas of production are located in countries such as Mexico, China, India and Sri Lanka.

Globalisation increases access to natural resources. Some countries have limited access to cheap resources. Firms therefore relocate to take advantage of production abroad.

Globalisation increases flexibility in decision making. Can improve flexibility or choice they have in decision making. Eg. Ford, BHP-Billiton, Fiat have plants located around the world.

Corporate Expansion Multi-national or trans-national corporations (MNCs or TNCs) – businesses with a headquarters in one country but with business operations in a number of others. No matter where you go in the world, certain businesses will always have a presence. Copyright: mkeky, stock.xchng

Key Issues: –Damage to the environment? –Exploitation of labour? –Monopoly power –Economic degradation –Non-renewable resources –Damage to cultures Shell and Nike’s activities have come under severe criticism in some quarters. Copyright: Homsel, stock.xchng

Does our future look brighter?

Next lesson: Neoliberism and international organization IMF (International Monetary Found) WB (World Bank) WTO (World trade Organization)

IMF (International Monetary Fund)

The World Bank

WTO (World Trade Organization)