Globalization in the Contemporary World

SSWH 21 The student will analyze globalization in the contemporary world.

a. Describe the cultural and intellectual integration of countries into the world economy through the development of television, satellites, and computers.

Globalization

Globalization can be described as a process by which the people of the world are unified into a single society and function together. This process is a combination of economic, technological, sociocultural and political forces. Globalization is often used to refer to economic globalization, that is, integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology.

Effects of Globalization

Globalization has various aspects which affect the world in several different ways such as:

Industrial - emergence of worldwide production markets and broader access to a range of foreign products for consumers and companies. Particularly movement of material and goods between and within national boundaries.

Financial - emergence of worldwide financial markets and better access to external financing for borrowers; emergence of under or un-regulated foreign exchange and speculative markets.

Economic - realization of a global common market, based on the freedom of exchange of goods and capital.

Effects of Globalization

Political› some use "globalization" to mean the creation of a world

government, or cartels of governments (e.g. WTO, World Bank, and IMF) which regulate the relationships among governments and guarantees the rights arising from social and economic globalization.

› the United States has enjoyed a position of power among the world powers; in part because of its strong and wealthy economy.

› People's Republic of China has experienced some tremendous growth within the past decade. If China continues to grow at the rate projected by the trends, then it is very likely that in the next twenty years, there will be a major reallocation of power among the world leaders. China will have enough wealth, industry, and technology to rival the United States for the position of leading world power.

Effects of Globalization

Legal/Ethical › The creation of the international criminal court and

international justice movements. › Crime importation and raising awareness of global

crime-fighting efforts and cooperation. Language - the most popular language is

English. › About 75% of the world's mail, telexes, and cables

are in English. › Approximately 60% of the world's radio programs

are in English. › About 90% of all Internet traffic is using English.

Effects of Globalization

Competition› Survival in the new global business market calls for

improved productivity and increased competition. › many industries around the world doing the same thing,

so Industries have to upgrade their products and use technology skillfully to compete.

Cultural› growth of cross-cultural contacts› the desire to increase one's standard of living and enjoy

foreign products and ideas, adopt new technology and practices, and participate in a "world culture".

› Some dislike the resulting consumerism and loss of languages.

Effects of Globalization Ecological

› the start of global environmental challenges that might be solved with international cooperation, climate change, cross-boundary water air pollution over-fishing of the ocean spread of invasive species

› factories are built in developing countries with less environmental regulation which may increase pollution.

› Pro-globalization people argue that economic development historically required a "dirty" industrial stage before progress is made, and it is argued that developing countries should not, via regulation, be prohibited from increasing their standard of living.

Effects of Globalization Social (International cultural exchange)

› increased circulation by people of all nations with fewer restrictions. › Spreading of multiculturalism, and better individual access

to cultural diversity through media. Some think "imported" culture replaces local culture causing

assimilation. Others think it promotes peace and understanding.

› Greater international travel and tourism› Greater immigration, including illegal immigration› Spread of local consumer products (e.g. food) to other

countries› Worldwide fads and pop culture, i.e. Pokémon, Sudoku,

YouTube, MySpace. Accessible to those who have Internet or Television, leaving out a substantial segment of the Earth's population.

› Worldwide sporting events such as FIFA World Cup and the Olympic Games.

Effects of Globalization Technical

› Development of a global telecommunications infrastructure and greater data flow even into the world’s most remote areas Internet: creation and proliferation of information via the

internet & world wide web communication satellites: broadcast information through

space around the planet nearly simultaneously allowing for communications almost everywhere on earth.

Television: information from around the world can be seen anywhere in the world

submarine fiber optic cable wireless telephones

› Increase in the number of standards applied globally; e.g. copyright laws, patents and world trade agreements.

Cultural & Intellectual Integration

All of these effects work together to create globalization – the integration of the world’s countries into one world economy – where every country depends on others to be healthy and viable.

SSWH21 The student will analyze globalization in the contemporary world.

b. Analyze global economic and political connections; include multinational corporations, the United Nations, OPEC, and the World Trade Organization.

Multinational Corporations

As the world continues to globalize, there is concern over the way it is globalizing. Corporations have become larger and multinational, and their influence and interests go further. Some choices that corporations take to make profits can affect people all over the world.

Corporations and Human Rights› Corporations work for profit. Other things result from

profit motive: violation of human rights, lobbying for and participating in manipulated international agreements, environmental damage, child labor, driving towards cheaper and cheaper labor, and so on.

Multinational Corporations

Corporations and the Environment› Many industries industry create

environmental concerns in the process of doing business. Multinational corporations sometimes capitalize on lax environmental policies in one region. While they are able to profit, the costs from environmental and other damage is carried by the local population.

Multinational Corporations

Corporations and Worker’s Rights› For many companies, the largest cost is often the

work force. Hence, where profits are the bottom line, it is only natural for companies to seek out the cheapest labor possible.

› When international agreements are often designed to foster an environment where cheaper and cheaper labor is promoted, the workers themselves are often not paid enough to live on. When a nation tries to provide regulatory steps to improve workers conditions (which does mean more costs to the companies), multinational corporations naturally pick up and go to other places where there are less measures in place.

Multinational Corporations

Influence over Government› Multinational corporations are able to exert

enormous influence over policy-makers around the world simply by virtue of their economic impact.

OPEC

Organization of Petroleum Exporting Countries

Created in 1960 by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela to gain control over oil prices.

Joined by Algeria, Indonesia, Libya, Nigeria, Qatar, United Arab Emirates, and Angola.

OPEC countries supply about two-fifths of the world's oil consumption and possess about two-thirds of the world's proven oil reserves.

OPEC Has some power to shock oil prices that

economically affected multiple markets (amount of power is disputed).

In 1973 OPEC began a series of oil price increases in retaliation for Western support of Israel in the 1973 Arab-Israeli war, and OPEC members' income greatly increased as a result.

The influence of OPEC is reduced by › Internal dissent, › the development of alternative energy sources in

the West, › Western exploitation of oil sources in non-OPEC

countries

WTO World Trade Organization Had 151 members as of July 2007 It was created in 1995 to replace the General

Agreement on Tariffs and Trade (GATT). It aims to lower trade barriers encourage

multilateral trade. › It’s a forum for governments to negotiate trade

agreements. › It’s a place for them to settle trade disputes.

It monitors members' adherence to GATT agreements and negotiates and implements new agreements. › It operates a system of trade rules.

WTO Opposition:

charges that it undermines national sovereignty by promoting the interests of large multinational corporations

That trade liberalization it facilitates leads to environmental damage and declining living standards for low-skilled workers in developing countries.

Global Political Connections

There are some organizations that are serving to pull nations together politically through diplomacy and negotiations.

Some are regionally based › NATO (North Atlantic Treaty Organization)› EU (European Union)› CIS (Commonwealth of Independent States)

Others are world wide› UN (United Nations)

United Nations

Its stated purpose is› to maintain international peace and security› to develop friendly relations among nations › to cooperate in solving international

economic, social, cultural and humanitarian problems and in promoting respect for human rights and fundamental freedoms

› to be a centre for harmonizing the actions of nations in attaining these ends.

United Nations

In doing that job, tools the UN might use are as follows:› Negotiating› Treaties› Economic sanctions› Humanitarian aid› Political assistance› Military intervention