Chapter 1 Flashcards
What is globality?
-the final state of a wave like process of Globalization
-desire of a cosmopolitan world society no longer hindered by nation state barriers (Ulrich Beck)
What are the factors influencing economic globalization?
-Payment flows: standardization,
simplification & reduction of
payment transaction costs (credit
card, global finance networking)
-Labor costs: wage gap between
industrialized and lower wage
countries; For investment
protection: product quality &
local political framework must be
assumed. Exploitation vs Creation
of local jobs
-International logistics: safe& cost-
effective transport. Logistics chain
standardization (standardized
container formats: fast, stable
stackable, bulk transport & low
cost)
-Migration:covers shortage of skilled labor in economic sectors that require higher level of training (immigration wave in the 19th & 20th century to the US)
-Economic policy: international customs & trade agreements (GATT - General Agreement on Tariffs & Trade in Geneva 1947. Goal: dismantle trade barriers & liberalization of world trade. e.g. free trade agreements, customs union, economic union monetary union-euro)
(TTIP - Transatlantic Trade & Investment Partnership: trade agreement between US and EU; cons-affects corporate taxation)
What local actions affect Globalization?
-purchasing behavior & consumer behavior: ubiquity of global products (exotic fruits), commodification of former luxury goods (feeling of arbitrariness, hybridity dilution, false goods), standardized products oversaturate market (fast-food chains-increased competition with local market)
When did globalization begin?
end of middle Ages
-1453 collapse of Byzantine empire
-1492 landing America C. Columbus
-1519-1522 circum-nagivation Magellan
enabled socio-cognitive revolution to understand world as globe
Role of history
to better explain current phenomena & context through history, derived from previous thought patterns
Eurocentricism
the West shaped historically and socio-culturally the process of globalization and assumed supremacy over other cultural groups at early stage.
Non-simultaneous
philosophical concept by Ernst Bloch that not all states & societies go through the same process of progress
(e.g. gender equality)
Influence of protestanism
-Increase of literacy (reading the bible)
-work ethic inspired virtues of
thriftiness thus favored credit industry
as provider of capital for economic
development
Where did the Industrial Revolution begin?
Great Britain
Regionalism
tendency to shift competencies from higher level structures to smaller territorial units
regional rather than central systems
Global risks according to Ulrich Beck
man made risks (unlimited, uncontrollable & no longer compensable) (e.g. nuclear reactor disasters)
in contrast to natural disasters, earthquakes.
Name and book title of Harvard Professor
Niall Ferguson- Civilization: The West and the Rest (2011)
Commodification
process in which a good increasingly becomes mass product = increased quantity = falling prices
Localization
desire/ demand to preserve & maintain or regain local regional identity
instrument of market segmentation & product differentiation
What is ISO 26000 standard?
released by International Organization for Standardization (2010):
-international guide to business ethics that contains recommendations for socially responsible & sustainable action by businesses
-focuses on: corporate governance, compliance with human rights, working conditions, business practices, ecological concerns, consumer rights & concerns, involvement in regional/local community
What are corporate social responsibility and corporate citizenship?
Corporate social responsibility: efforts of companies to behave according to ethically justifiable principles with regard to their environment & stakeholders
Corporate citizenship: goes beyond business activity & includes activities (e.g. sponsoring, voluntary commitment in the local environment)
What are the OECD Guidelines for multinational enterprises?
-manual covering responsible corporate
conduct at a global level.
-covers company compliance with
consumer interests including privacy &
data security & anti-corruption
What 2 main areas of activity does corporate ethics encompass?
-social standard
-environmental standard
Globalization V1.0
previous age of globalization:
-low level of regulation of goods, financial flows and migration (especially between European nation & USA)
-imperialism: political & economic
submission & cultural influence
British Empire driving force through territorial hegemony. Bank of England major investor in monetary system
Globalization
Phenomenon of increasing interdependence between states, economic organizations, institutions & individuals across national borders and continents.
Process of optimizing production factors across national borders
The interdependencies, influences & interactions can be of socio-political, ecological, economic, & cultural nature.
When was the last wave of Globalization, according to Knut Burchardt
between 1840 and 1918 end of WWI
-technological developments (e.g.telecommunication)
-innovations in transport technology (e.g. ship propeller)
-mass migration to N. America
3 waves of Globalization according to Roland Robertson
1) around 1500: when European colonizers set-out to the New World
2) middle 19th century- industrialization period
3) 1939- World War II
What are the 3 main driving forces of Globalization?
Technological progress: expansion and standardization of global air transport networks = reduction of cost, internet= low-cost platform
Regulatory framework conditions: allow free movement of goods & migration of labor. Liberalization of world trade from national protectionism
Demographic factors: Global population growth= new sales = need international cooperation (environmental & climate protection)
Glocalization
synthesis of Globalization and localization:
-product/service developed & distributed globally but adjusted to accommodate user/consumer in local market
-individual parts of value chain (purchasing, production, distribution or marketing & sales handled local level; overarching process organized globally
