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Globalization what it mean


Perception of Globalization

n       Western culture imperialism is spreading

n       For industrialized nations, term stands for unemployment.

n       Stands for lowering of social standards and environmental destruction.

n       Developing country may come in threat due to competition.

n       Globalization means dependency for developing countries

n       Effects – unfavorable production structure, shortcomings in the political and administrative system, poor governance or unsuitable economic and social policy measures.

Definition of the term

n       Mainly referred to cross border economic, political and social activities.

n       Internationalization and transnationalisation.

n       Internationalization- free interchanges over national borders without placing nation state itself in question.

n       Transnationalisation- which span the borders of nation-state like UN, EU, transnational enterprises.

n       It is a complex process with a wide range of aspects which unstoppably penetrate all areas of life and to have the everyday reality ie. economic, ecological, socio-cultural and political characteristic.

n       A process of disseminating western values and models in worldwide.

n       It will effect in democracy, human rights, market economy, production method, consumption pattern.

n       Attraction towards western civilization.

n       Migration- poor to look for work where it would be beneficial to them under certain condition.

n       Globalization has losers and winners.

n       Main beneficiary will be highly skilled workers, owners of the assets, funds.

n       Exclusion of those/region are less performer.

n       Thus increasingly more impoverished.

n       Marginalized will suffer from hunger, undernourishment, illness, inadequate hygiene, hardly assess to health and education facilities, no work, work with badly paid.


Manifestations and causes of globalization- economy

n       Increase in worldwide production capacities.

n       Growth in world Trade-GATT, NAFTA, ASEAN, AFTA, TRIPS.

n       Growth of Foreign Direct Investments and Joint ventures.

n       Integration of the international capital movement- accumulation of private assets, growing state debt, cross border loan, share transaction.

n       Regional imbalance of globalization.


Manifestations and causes of globalization- socio-cultural

n       The model of western civilization-

            Consumerism, commercialization, modern media, social problems (prosperity- related         crime, extremism).


n       Communication as a major elements of globalization-

            telecommunication, online network-worldwide mass media- advertising revenue from developing country, promotion of western commodity goods, media market controlled by few payers with headquarters USA.


n       Individual mobility-

            expansion of transport & communication system promote mass tourism & world wide goods and capital transaction but also crime, drug trade, trafficking in children and women, sex tourism and illegal transaction. Women will be badly paid or unpaid work, poor working condition for women.


Effects of globalization- Economic

n       On commodity markets-

            Use of resources became more efficient, free trade and change in production area lead to reduction in jobs, export of raw material from developing to developed country, barriers (technology, patent, license etc.)

n       On financial markets-

            high net capital imports to the developing nation with high rate of interest, local currency will be in threat, increasing in foreign debt, reduced stability in the national banking system, risk of fiscal policy, debt payment in foreign currency, decrease in social policy, easy way out of hard money to the developed country.

n       Labour markets-

            reduced the significance of unskilled workers, income gap between skilled and unskilled, taxes and duties on income will be imposed to the skilled, avoid paying taxes will create fiscal base of the state, social compensatory measures reduces, structural change towards modern, traditional business community will not stand in competition, reduce in job sector, more poverty among unskilled in future.


Effects of globalization- Ecology

n       Ecological losses-

            flow of goods and traffic will lead to burden over the natural resources, transport cost will be determined by the energy price, more energy means more burning of fossils, international trade on waste will increase and deposition of toxic material in developing countries,


n       Dissemination of western production and consumption models- the media, imports, tourism and commercial advertising awakening worldwide desire for prosperous life, more interest towards foreign goods, western consumerism style will took place, high consumption of resources, high demand of raw material from developing country, increase in the oil price, demand increases for import of oil, increase the price of commodity, weakens the social sector, 


Effects of globalization- socio-cultural

n       Pluralization-

            consumption oriented civilization in the west may conflict with the value of the culture, cultural imperialism a threat for many people, media advertisement may play vital role for universal culture, dominance of outside culture, problem of world wide migration, importing political extremism and crime,


n       Particularization as counter movement-

has led to division into a variety of identity, led to considerable conflicts potentials, acquisition of political and economic power, domestic conflicts may raise and led to serious human right violation, collapse of nation state due to armed conflicts group, ethnic-religious or nationalist tension and fundamentalist movement may rise,



Effects of globalization- Political sphere


The dissolution and collapse of the communist power bloc and the end of the cold war in 1989 nourished the hope of in many places that the western model of society would spread world wide through the process of globalization and that is the central achievements, 

Effects of globalization- Political sphere

n       Reduction and change in the influence of the nation-state policy-

            Neglect in social policy, sovereignty of nation state will be in question, economic policy will be framed in the line to fulfill the world economy.

n       Reduction in national democracy- political sphere will be defined by the economic system, political values and aims play a subordinate role, media will play vital role in political system influenced by economic power, political sphere will loss importance and ability to act,



n       Creation of international civil society-

Civil society movements have formed in almost al parts of the world, cross border networking and cooperation between NGOs play a major role, worldwide challenge can only countered with international cooperation, increasing importance to shaping the international politics, variety of NGOs and in some cases the conflicts between them, frequently make it more difficult to pursue the coordinated approach, with growing influence, the danger of misuse has increased as their dependence on state interest, many of them are not democratically organized or only to limited degree.