Globalization

Globalization

1. Sharing and spread of trade, cultures, ideas, languages, and goods and services that have made the world smaller.

2. Process of interaction and integration that occurs between people, trade entities, and governments of different nations.

3. Removes barriers between countries/societies and diversifies goods and services.

   • Despite nation-states re-asserting nationalism and sovereignty, globalization remains necessary.
     • Global supply chains account for one out of every five jobs across the planet.
     • Trade between emerging markets increased from 25% in 1995 to 40% in 2017.
     • While globalization has increased connectivity of the international system, it has opened doors to transnational illicit activities (Libya is a port for human trafficking and Mexico is known for its drug trading)

4. Link to interdependence: the international system is structured in such a way that an issue affecting one state also has consequences for other states (Great Recession in 2008)

   • Since states share common goals and interests (security, environment, development, and trade), they're in a position where they're affected by transnational challenges.

5. Drawbacks

   • Wealth disparity/inequality: wealth is concentrated within an elite and doesn't "trickle down"
   • Wage competition: workers must compete with workers in other countries, more unemployment in developed economies (US automotive industry)
   • Price competition: prices are sometimes lowered, buying abroad causes local industries to suffer and disempowers people
   • Lack of cultural diversity: no equal exchange of ideas, homogenized world cultures due to prevalence of Western domination
   • Deregulation: TNCs locate factories in places with less strict workers' rights and safety regulations, exploiting workers and environment (Bangladesh garment industry)

6. Benefits

   • Economic growth: generates more wealth since economies grow from gaining access to workers, resources, and market
   • Higher standards of living: workers in growing economies have more purchasing power and access to wider variety of goods and services
   • Increased democracy: people living in politically open states gain more freedoms and people are exposed to more awareness for human rights through soft power/media (Arab Spring)
   • Cultural development: modern ideas like womens'/childrens'/workers'/LGBT rights are embraced (MeToo movement)
   • Opportunities: students, employees, and TNCs move abroad to live/work for experiences and better profit

7. Impact on states: freer movement of capital, products, and businesses with greater access to cheap labour (German cars like Audi are built in Mexico where labour is cheaper)

8. Impact on private groups: trade, investment, and spread of business ideas beyond a nation's borders (Jack Ma founded Alibaba after visiting the US)

9. Impact on culture: require promotion of cultural norms on global platform (UNHRC promotes and protects human rights globally)

10. Impact on politics: increase of global governance means more collaboration and liberalism (rise of IGOs like UN and ILO, rise of NGOs like WWF and Greenpeace)