Globalization Lecture 1: Definition and Historical Context

Question 1

What is Globalization?

Answer 1

Many definitions.

1. Process of international integration arising from the interchange of world-views and other aspects of culture.
2. All the processes by which peoples of the world are incorporated into a single world society.
3. It can be local, national and regional. On the one end of the spectrum lie the social and economic networks at the local/national level. At the other end of the Sepecturm lie the social and economic networks at the international level.
4. Steger (2009): Globalization refers to the expansion and intensification of social relations and consciousness across world time and space. Shifting forms of human contact. 3 elements: 1. It goes beyond nationality, 2. It’s a process moving towards a new condition of post modern globality 3. its not finished yet

Question 2

when was the term Globalization first used?

Answer 2

The term “Globalization” was first used during the 1980s to refer to the technological advances that made it easier and quicker to complete international transactions. These innovations played a crucial role in the compession of world time and world space.

Question 3

When did Globalization start?

Answer 3

Globalization is not new, human interactions have existed for thousands of years.

Question 4

Globalization during the 1st Century

Answer 4

Trade routs link India with Southern Burma, Central and southern Siam, lower Cambodia and Vietnam.

• Silk route connected Asia, Africa and Europe spreading philosophy, religion and Arts. It linked the Roman and Parthian empires and the Han dynasty
• A good example of the transformative power of translocal exchange that existed in the “Old World”.

Question 5

Globalization in 7th and 8th Centuries

Answer 5

Islamic missionaries and soldiers spread religion, culture and language. It leads to a globalization of agriculture, trade, knowledge and technology. Crops such as sugar and cotton become widely cultivated.

Question 6

Globalization in the 15th and 16th century

Answer 6

Europeans made important discoveries in their exploration of the world. There is a rise of the maritime empires like the Portuguese, Spanish and later the Dutch and the British empires. Chartered companies like the British East India Company (1600) and the Dutch East India Company (1602) – often described as the first MNCs – begin a methodical private-public colonization process. In the 15th and 16th centuries, was the start of transatlantic travel to the “New World” of the Americas. Global movement of people, goods, and ideas expanded significantly in the following centuries.

Question 7

Globalization in the 19th century

Answer 7

Development of the new modes of transportation (steamships, railways) reduced distances. International links are decisively shaped by imperialism in Africa and Asia. The first transatlantic telegraph was laid in 1866. By the end of the century, the entire world was connected by the telegraph, and communications times fell from months to minutes.

Question 8

What is the last wave of Globalization?

Answer 8

• Technological advances that have radically lowered the cost of transportation, communication and information management. Ex. It is now often feasible for a business to locate different phases of production in different and far away countries.
• Increasing liberalization of trade and capital markets led by government policy actions.

Question 9

Globalization in the 20th Century?

Answer 9

invention of road vehicles, airlines made transportation even faster, and the emergence of electronic communications, most notably mobile telephones and the Internet, connected billions of people.

Between 1950 and 1980 and following WWII, trade and investment flows between developed countries of Europe, North America and Japan grew significantly aided by a series of multilateral agreements on trade liberalization under the auspices of GATT.

Question 10

How’s is globalization different today than before?

Answer 10

1. Integration is driven by policy changes rather than technological developments (ex. Bretton Woods institutions, and bilateral and regional trade agreements)
2. New technology has created faster movements of services and capital. For that reason, financial panics and crashes, although noting new, come at a higher magnitude and speed and potentially more dangerous.
3. Growing integration of nations worldwide into the international economy has intensified competition (Ex. Talk about multinational corporations, their impact in the home and host country).
4. Globalization has intensified inter-dependence among nation states, constraining their ability to provide for the welfare of their citizens. However, the growth of the welfare state in the 20th century has created a system where the state is expected to be responsible for the welfare of its citizens.