1)Eras of globalisation/ timeline
-First era (1492-1800): the world size shrank from a size large to a size medium and the dynamic forces were countries globalizing; countries had to look where they fit into global competition and opportunities and how they could go global; how much muscle, horse power, wind + steam power one country has
-Second era (1800-2000): the world size shrank from a size medium to a size small; leading forces were multinational companies; global integration was driven by falling transportation and telecommunication costs as well as by other great technological inventions;
maturation of global economy
-Third era (started around 2000): world size shrank from a size small to a size tiny; dynamic force was the newfound power for individuals to collaborate and compete globally; people realized that they have to go global to stay in the game; is not driven primarily by European and American individuals, but from individuals from all over the world;
2)Definition of globalization:
-Process of the world becoming unified on an economic, technological and cultural level
-Includes: Increasing mobility of people, steady flow of money and goods between international markets and production sites
-Different areas of globalization:
-Economic globalization: activities of multinational companies, constant pressure to cut costs (produce were costs+labour are cheapest)
-Technological globalization: fast advances in technology over past decades, allows easy communication
-Cultural globalization: spread of local or national traditions and cultures all around the world
3)Aspects of globalization:
a)Environment
-Global warming is caused by the release of carbon dioxide and other heat-trapping gases into earth’s atmosphere. The gases act like a thick blanket, trapping the sun’s heat and causing the planet to warm up. Increase the gases and the warming increases, too. These gases are created when we burn fossil fuels in our cars and power plants as well as by loss of forests and agriculture.
-Environmental effects are:
-pollution (wasting energy, like leaky windows and not insulated houses);
-fuel consumption (increase in air traffic, greater demand for fuel, more pollution);
-wardrobe (clothes and shoes produced in sweatshops and shipped all over the world (outsourcing) and deforestation of rain forests);
-transport costs (more countries became industrialized, greater demand for natural resources, use of bio fuel causes lack of nutrition in developing countries)
-Electronical Equipment (waste of electricity, dissipation of resources)
b)Economy:
-Free-market
-Global trade (moving goods around the globe: birth of the skipping container, logistic companies grow bigger because companies source out)
-Outsourcing of production and labor
-Companies have to become Global players to compete and collaborate internationally
-Conflict between industrial world and developing countries
c)Culture:
-People are bounded to eachother
-Clothes produced in other countries
-Styles and trends from other cultures/countries
-Spread of food traditions (Chicken Tikka Masala, International Fast Food companies)
d)Technology:
-Communication (Internet, E-Mail, Telephone)
-The world shrinks and the people become more connected (Social Networks)
-New inventions through international exchange of knowledge
e)Politics
-International Institutions and Organisations, like WTO, World bank, United Nations, G8, Greenpeace, etc.
-Common problems have to be solved globally: environment, poverty, conflicts, wars
Advantages/ hopes (industrial world)
-Increased business opportunities (reducing production costs)
-Access to new markets (more customers)
-Fewer wars and conflicts worldwide -> spread of democracy
-Tourism and travelling
-Greater understanding, mutual tolerance
-Peaceful, borderless world of shared values, economic prosperity and ecological stability
-Cultural exchanges
Criticism/fears (industrial world)
-Difficulty in controlling power of multinational companies by legal means
-Inequality, regional and ethnic tension
-Pollution
-Erosion of cultures / Clash of cultures
-Companies have to go global; outsourcing
-Massive illegal immigration
-Exploitation of workers in developing countries (“sweatshops”)
Advantages/hopes (developing countries)
-Spread of freedom, democracy and human rights
-Greater understanding among people around the world
-Work and prosperity
-Participation and global trade (access to richer markets)
-New work for native products
-Investment in infrastructure
-End of hunger and ill health
Disadvantages (developing countries)
-More corrupt governments, negative cultural influences and manipulation through the mass media
-Inequality and regional and ethnic tension
-Pollution
-Inhumane competitive world
-Widening of gap between rich and poor (social peace)
-Increasing dependence on foreign support (investment and credit)
-Erosion of local cultures by negative western influences