Globalisation Flashcards
what is globalisation?
the idea that the world is becoming a more interconnected and interdependent place, where events and ideas from one part of the world have an impact far beyond their borders
for example, conflict in Syria has increased the number of asylum seekers and migrants across Europe
the emergence of a complex web of interconnectedness, meaning that a variety of nonstate actors, global trends and events challenge territorial borders and state sovereignty
globalisation has ‘shrunk’ the world, making time and geographical location almost irrelevant
interconnectedness = the mutual reliance of two or more groups,
refers to the way in which states become more linked
one of the most contentious issues in global politics
what does globalisation have an effect on?
globalisation has a profound effect on the state and people’s lives
- including state sovereignty, democracy, people’s identities, jobs and communities
some people feel left behind in an increasingly globalised world which has caused major changes to their lives and their understanding of the world
globalisation has led to….
• the closing of traditional industries
• a loss of jobs
• the lowering of wages and living standards
• an increase in immigration
• a loss of national identity
• the lowering of prices of goods and services
• the ease and cost of international travel
• the improvement of communication technology such as the internet
how is the state and globalisation linked?
states and their sovereignty are hugely affected by globalisation
globalisation has lessened the importance of the territorial borders of the nation state as cultural, political and economic activity is now organised across the global stage
in many ways, the two concepts work against eachother as states are meant to be in control as sovereign entities but globalisation can make states seem redundant or even impotent
arguably, the more the world becomes globalised, the less sovereignty a state can have and the less significant it becomes
the more a state is affected by actions and events in another part of the world, the less it can realistically claim to have absolute and ultimate authority
this challenges a state’s authority and means that states no longer exist in a box, able to insulate themselves from developments elsewhere in the world
globalisation has seen the rise of non state actors, such as TNCS and NGOs, as well as international institutions, such as the World bank and World Trade Organisation, which challenge the state centric approach
key debates surrounding globalisation
is it a phenomenon, a process or a policy?
is it simply a form of Westernisation and cultural imperialism? is it Americanisation?
is it a new thing? or has it been around for a while?
can it be stopped or reversed? can it be controlled?
what are non state actors?
participants in international relations with significant power and influence, but that are not states
three types of globalisation
globalisation includes three main processes….
• economic globalisation
• cultural globalisation
• political globalisation
the common factor is that all forms of globalisation limit state sovereignty in some way
what is economic globalisation?
the increasing integration of national economies to create a single global economy of cross-border movement and trade in goods, services, capital and technology
there has always been international trade but economic globalisation is unique due to the degree of interconnectedness and interdependence that it fosters
so much so, that the global economy can be seen as a single entity
the development of global markets in goods and services, with TNCs like Apple having global supply chains - e.g. Apple products are designed in the US, their parts are sourced from across Asia and Europe, assembly takes place in China and they are sold globally
the emergence of a single global economy limits the economic sovereignty of the nationstate
driving forces/causes behind economic globalisation
the Bretton Woods svstem
the 1973 oil crisis
developments in technology
policies and ideologies of states
all of these factors have arguably led to the development of a global economic system with interlocking and interconnected markets
the spread of pro-market values, consumerism and materialism - links to cultural globalisation and Americanisation, which has led to turbo-consumerism worldwide, made easier by technological innovation
driving force behind economic globalisation:
the Bretton Woods system
the starting point of economic globalisation can be seen with the establishment of the Breton Woods economic svstem towards the end of WW2
this was a system of fixed exchange rates and regulations to encourage trade and stability in the international system
this was an attempt to prevent the circumstances that led to the prewar economic catastrophe and to WW2 itself
politicians and economists at the Bretton Woods conference were aiming to learn the lessons of economic nationalism
a greater global commitment to free trade and free markets has encouraged connectivity, this is closely associated with the principles of the Washington Consensus advanced by the Breton Woods institutions
driving force behind economic globalisation:
the 1973 oil crisis
the 1973 oil crisis and the collapse of the fixed exchange rates introduced by the Bretton Woods system lead to the next stage in the process of economic globalisation
floating exchange rates led to greater competition for national economies and the growth in TNCs investing globally
the collapse of communism opened up new markets and opportunities for investment and the opening up of the Chinese economy was a further dimension in economic globalisation
driving force behind economic globalisation:
advancements in technology
economic globalisation has also been furthered by the huge advancements that have taken place in technology during the last 100 years
it has taken a little more than a century to move from the first powered flight to the transportation of mass produced goods by international air freight at an incredibly low cost
a major contribution to economic globalisation is the speed of information and communications technology development
telephones, the wireless, the television, personal computers, mobile phones and the internet have all played a part in making the world smaller and changing world economics along the way
technological advances, including greater capacity for transportation and instantaneous communication via the internet, have furthered economic globalisation by linking most countries in the world into a global supply chain
led to the international transfer of money, making it far easier to access information - this has created a
globalised financial system, where financial transactions are instant and oblivious to national borders
driving force behind economic globalisation: ideologies and policies of states
the ideologies and policies of states have played a role in economic globalisation
the political role of states and international institutions in promoting neoliberal policies of free trade, deregulation, privatisation, low tax and cuts to public spending - linked to the Bretton Woods Conference (1944) which led to the establishment of the Bretton Woods institutions (IMF, WTO + World Bank)
the decision by states to follow the path of cooperation and free trade in the post war era have been deliberate attempts to prevent war, increased stability and prosperity and perhaps spread democracy - the liberal world order
the focus on the benefits of free trade partly come from neoliberal thinking, which views the laissez faire approach as bringing the most economic gains
the underlying economic logic of capitalism (the need to generate as much profit as possible, which has led companies to seek to expand and become international, thus fostering globalisation)
evidence for economic globalisation
a huge transnational flow of capital and money - over $5 trillion is traded each day on global foreign-exchange markets
the growth in international trade, especially within TNCs across borders (Apple, Nike, McDonald’s, etc)
the growth of transnational production, where design, manufacturing and assembly is globalised - e.g. Apple produces, designs and sells in different countries
the global division of labour by country, creating economic efficiency
a globalised financial system where financial transactions are instant and oblivious to national borders
impact of economic globalisation
economic globalisation and the spread of consumerism and capitalism has brought about the spread of Western ideals such as democracy, human rights and individualism and thus cultural homogenisation (monoculture)
the global system created by the Bretton Woods system, along with the postwar reconstruction of Europe through the Marshall plan and Keynesian economic policies, lead to a growth in production, trade and prosperity in the developed world until the early 1970s
this long boom lead to high economic growth and full employment throughout the Western world, which led to significant social, cultural and political change
the new global division of labour,driven by TNCs, has created patterns of economic specialism - high technology is increasingly manufactured in wealthier nations while agricultural, raw material is produced in poorer states
economic globalisation has led to economic activity taking place in a ‘borderless world’ (Ohmae),reducing the power of the state to develop economic policy in isolation
economic globalisation challenging state sovereignty: the
Washington Consensus
since the 1990s and the end of the Cold War, the Washington Consensus (economic liberalism) has prevailed - free market principles have come to dominate global trade due to economic globalisation
states have therefore needed to establish the conditions that will be attractive to global investors, such as low corporate taxation and low workplace regulation
consequently, governments have become limited and clearly do not exert absolute control over their economic decision making as they have to cater their economic policies in order to attract investment
any state seeking to act in defiance of this will risk loss of investment and capital flight
the worldwide average corporate tax rate has declined since 2003 from 30% to 22.5% - for example, Vietnam has a corporate income tax level of just 20% in order to attract foreign business
the globalisation of markets
the globalisation of financial markets, facilitated by the instantaneous communication of the internet, means that global events can affect a state’s economic well-being
for example, the 2007/08 sub-prime mortgage crisis in the USA, precipitated by the bankruptcy of the US bank Lehman Brothers, provoked a global banking crisis
this led to stock markets throughout the world plummeting and a global recession, with the value of global trade declining by 9%
in 1997, global capital flight from Thailand gravely threatened Southeast Asian prosperity as it led to the contagion spreading throughout the region when investors withdrew capital from its neighbours
what is cultural globalisation?
the increasing transmission of ideas, meanings and values across the world, creating a global culture
the ‘flattening out’ of the cultural differences between countries, meaning that cultural diversity is replaced by cultural homogeneity
the world is becoming an increasingly uniform place, where the same cultural commodities are consumed regardless of national borders - people listen to the same music, watch the same films, but the same products, use the same technology and all on the same devices
homogenisation = the coming together of global cultures and the
development of a single homogenous culture without diversity or dissension, often referred to as a monoculture
cultures have been homogenised by global brands, global media, NGOs and migration to create a monoculture which is based around the ideals of liberal democracy, neoliberal economics and human rights
examples of cultural globalisation
1 in 7 people on the planet are thought to have watched some of the 2014 FIFA World Cup final - it was a truly global event
the same brands are recognised and can be bought all over the world - McDonald’s, Coca-Cola, Apple, Nike and so on
these companies have trademarks that are instantly recognisable to a huge portion of the world’s population
driving forces/causes behind cultural globalisation
growth of TNCs
technological innovation (also a driving force behind economic globalisation)
improvements in transportation and the reduction of its cost have made the movement of goods and people vastly quicker and cheaper
growth in migration and international travel and tourism
increasing roles of NGOs, like Human Rights Watch, leading to the spread of liberal values worldwide
states and institutions, especially the USA, that promote lifestyles, ideas and needs that allow for the spread of global capitalism