Globalization

Globalization (or globalisation) is a modern term used to describe the changes in societies and the world economy that result from dramatically increased international trade and cultural exchange. It describes the increase of trade and investing due to the falling of barriers and the interdependence of countries. In specifically economic contexts, it is often understood to refer almost exclusively to the effects of trade, particularly trade liberalization or "free trade" (however, see "meanings" below).

Nature and existence of globalization

There is much academic discussion about whether globalization is a real phenomenon or only an analytical artefact ("a myth"). Although the term is widespread, many authors argue that the characteristics of the phenomenon have already been seen at other moments in history. Also, many note that those features that make people believe we are in the process of globalization, including the increase in international trade and the greater role of multinational corporations, are not as deeply established as they may appear. The United States global interventionist policy is also a stumbling point for those that claim globalization has entered a stage of inevitability. Thus, many authors prefer the use of the term internationalization rather than globalization. To put it simply, the role of the state and the importance of nations are greater in internationalization, while globalization in its complete form eliminates nation states. So, these authors see that the frontiers of countries, in a broad sense, are far from being dissolved, and therefore this radical globalization process is not yet happening, and probably won't happen (see Linda Weiss), considering that in world history, internationalization never turned into globalization — (the European Union and NAFTA are yet to prove their case.)

Related Topics:
International trade - Multinational corporation - Interventionist - Internationalization - State - Nation - Nation state - Linda Weiss - European Union - NAFTA

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However, the world increasingly shares problems and challenges that do not obey nation state borders, most notably pollution of the natural environment, and as such the movement previously known as the anti-globalization movement has transmogrified into a movement of movements for globalization from below; seeking, through experimentation, forms of social organisation that transcend the nation state and representative democracy. So, whereas the original arguments of anti-global critique can be refuted with stories of internationalisation, as above, the emergence of a global movement is indisputable and therefore we can speak of a real process towards a global human society of societies....

Related Topics:
Pollution - Natural environment - Anti-globalization - Social organisation - Representative democracy

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Characteristics

Globalization has become identified with a number of trends, most of which may have developed since World War II. These include greater international movement of commodities, money, information, and people; and the development of technology, organizations, legal systems, and infrastructures to allow this movement. The actual existence of some of these trends is debated.

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• Economically
• Increase in international trade at a faster rate than the growth in the world economy
• Increase in international flow of capital including foreign direct investment
• Erosion of national sovereignty and national borders through international agreements leading to organizations like the WTO and OPEC
• Development of global financial systems
• Increase in the share of the world economy controlled by multinational corporations
• Increased role of international organizations such as WTO, WIPO, IMF that deal with international transactions
• Increase of economic practices like outsourcing, by multinational corporations
• Culturally
• Greater international cultural exchange,
• Spreading of multiculturalism, and better individual access to cultural diversity, for example through the export of Hollywood and Bollywood movies. However, the imported culture can easily supplant the local culture, causing reduction in diversity through hybridization or even assimilation. The most prominent form of this is Westernization, but Sinicization of cultures also takes place.
• Greater international travel and tourism
• Greater immigration, including illegal immigration
• Spread of local foods such as pizza and Indian food to other countries (often adapted to local taste)
• Development of a global telecommunications infrastructure and greater transborder data flow, using such technologies as the Internet, communication satellites and telephones
• Increases in the number of standards applied globally; e.g. copyright laws and patents
• The push by many advocates for an international criminal court and international justice movements (see the International Criminal Court and International Court of Justice respectively).
• Some argue that even terrorism has undergone globalization with attacks in foreign countries that have no direct relation with the own country.

Barriers to international trade have been considerably lowered since World War II through international agreements such as the General Agreement on Tariffs and Trade (GATT). Particular initiatives carried out as a result of GATT and the WTO, for which GATT is the foundation, have included:

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• Promotion of free trade
• Of goods:
• Reduction or elimination of tariffs; construction of free trade zones with small or no tariffs
• Reduced transportation costs, especially from development of containerization for ocean shipping.
• Of capital: reduction or elimination of capital controls
• Reduction, elimination, or harmonization of subsidies for local businesses
• Intellectual Property Restrictions
• Harmonization of intellectual property laws across nations (generally speaking, with more restrictions)
• Supranational recognition of intellectual property restrictions (e.g. patents granted by China would be recognized in the US)