Globalisation

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GLOBALIZATION
http://www.bized.co.uk

Copyright 2007 – Biz/ed

 Globalisation http://www.bized.co.uk

• Definition:
– An economic phenomenon?
– A social phenomenon?
– A cultural phenomenon?
• The movement towards the expansion of
economic & social ties between countries
through the spread of corporate institutions
& capitalist philosophy that leads to the
shrinking of the world in economic terms

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 Globalisation http://www.bized.co.uk

Globalisation

Globalisation could involve all these things!

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 Globalisation http://www.bized.co.uk

GLOBAL THINKING : PROBLEMS

Conceptualizing issues of global interconnectedness .

Pol Interdependence :
Operates both within & across States .
World wide ,Regional ,National & Subnational levels .

Implications of Global thinking .

Challenges
Interconnectedness : “Everything affects Everything else”.
Wider social connection between people : Moral universe .
Choice between Paradigm Beyond Paradigm .

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GLOBALIZATION
http://www.bized.co.uk

Copyright 2007 – Biz/ed

 Globalisation http://www.bized.co.uk

GLOBAL INTERCONNECTEDNESS
New Thinking
Complex Interaction between elements :
Operates beyond “Cause Effect” relationship

A A

B B
Non linear , Non dualistic Apch
C C. Complex Interconnectedness

Implications

Difficulty in identification of events

Random and arbitrary nature of events
Variable unknown factors

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 Globalisation http://www.bized.co.uk

Ethical dimensions
Cosmopolitanism
Greater awareness of people at great distance.

Moral obligations : “ Single World Moral Community”.

Breaking of barriers of Nationality, Religion & Ethnicity

Human Rights concern.

Global ethics : Reduce global suffering.

Concept : “ One World” rather than collection of discrete

“countries/ people”.

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Globalisation http://www.bized.co.uk

Copyright 2007 – Biz/ed

 Globalisation http://www.bized.co.uk

PARADIGM
Entire constellation of : Beliefs , Values, Techniques
shared by a member of given community.
Thomas Kunn
Helps us make sense of what otherwise be
impenetrable complex reality.
Limits perception “ We see only what our favored
paradigm shows us”.
Implications
Distinction between IR & Politics less
prounounced & difficult to sustain.
Beyond Paradigm : Infinitely complex reality.

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 Globalisation http://www.bized.co.uk
Security
Challenge to state centric idea of National security and
security dilemma.
Collective security : Belief that “ aggression can be
resisted by united action of nu of states”.
Broader notion of international security: “Zone of Peace ”
and “Security regimes” associated with economic
interdependence.
Rethinking security paradigm : “Human security”
Modern war : Among cultures
Within states
Civil war / strife
Insurrection.
Non military threats Copyright 2007 – Biz/ed
 Globalisation http://www.bized.co.uk
JUSTICE
Interdependence and interconnectedness extended
to idea of Morality in world affairs.

Global /Cosmopolitan Justice : rooted in belief of

Universal moral values.
Cosmopolitan thinking shaping :-
Global distributive justice.
Substantial redistribution of wealth.
Obligation of rich nations to help poor nations.
Protection of natural environment for future
generation.
Disproportionate obligation of rich nations to tackle
climate change. Copyright 2007 – Biz/ed
Globalisation
http://www.bized.co.uk

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 Globalisation http://www.bized.co.uk

Integration of Economies
• The increasing reliance of
economies on each other
• The opportunities to be
able to buy and sell in
any country in the world
• The opportunities for
labour and capital to
locate anywhere in the
world
• The growth of global
markets in finance
Stock Markets are now accessible
from anywhere in the world!
Copyright: edrod, stock.xchng

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 Globalisation http://www.bized.co.uk

INTEGRATION OF ECONOMIES
• 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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 Globalisation http://www.bized.co.uk

Trade versus Aid?

• Benefits of Trade:
– Increased choice
– Greater potential for
growth
– Increase international
economies of scale
– Greater employment
opportunities

Trade has led to massive increases in wealth

for many countries.
Copyright: budget stock, stock.xchng

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 Globalisation http://www.bized.co.uk

Trade versus Aid?

• Disadvantages
of trade:
– Increase in gap between
the rich and the poor
– Dominance of global trade
by the rich, northern
hemisphere countries
– Lack of opportunities for
the poor to be able to
have access to markets
– Exploitation of workers
and growers How far does trade help children like
these?
Copyright: clesio, stock.xchng

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 Globalisation http://www.bized.co.uk

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

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 Globalisation http://www.bized.co.uk

Corporate Expansion
• Characteristics:
– Expanding revenue
– Lowering costs
– Sourcing raw
materials
– Controlling key
supplies
– Control of
processing
– Global economies
Controlling supplies may be one reason of scale
for global expansion.
Copyright: rsvstks, stock.xchng

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 Globalisation http://www.bized.co.uk

Corporate Domination
• 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

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 Globalisation http://www.bized.co.uk

Other Issues:
• Accountability
of Global businesses?
• Increased gap
between rich and
poor fuels potential
terrorist reaction
• Ethical responsibility
of business?
There are plenty of people who believe that
globalisation is a negative development, • Efforts to remove
protests at the G8 summits, pollution, poverty
and concern over GM crops are just some of trade barriers
the issues.
Copyright: stock.xchng

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