INTRODUCTION TO GLOBALIZATION

GLOBALIZATION DEFINED

Globalization has more than one universally accepted definition; it has multiple definitions coming from various authors.

Globalization – Refers to the expansion and intensification of social relations and consciousness across world-time and
world-space (Manfred B. Steger)
– constitutes integration of national economies into the international economy through trade, direct
foreign investment (by corporations and multinationals), short-term capital flows, international flows of workers and
humanity generally, and flows of technology
– A reality that now affects every part of the globe and every person on it, even though in widely differing
local contexts
– is making the world a smaller place.

Social relations – Refers to activities that involve interactions between two or more people

GLOBALIZATION EXAMPLES:

Basketball originated from America, benefits tall people, yet is very mainstream in the Philippines

Apple products are likewise American, but their supplier list originate from China, Taiwan, UK, Philippines, Japan, South
Korea, Thailand, Belgium, etc.

Kathleen wants to work in the United Arab Emirates and found an employer online.

Diane loves to order anime figures straight from Japan. All her purchases are done online.

Greg works for a multinational corporation. This company opened a new branch in another continent and Grey was
assigned there to get things running.

The International Committee of the Red Cross is a nonprofit humanitarian protection and assistance organization that
now operates almost everywhere in the world.

Ben is exposed to many different foreign cultures in his home city.

HISTORY OF GLOBALIZATION

Theodore Levitt – he popularized the term globalization in 1983, though as a concept it has already been talked about
and has been happening long before 1983.

People were already practicing trade even before the Silk Road was built.

Silk Road – with its creation, trade stopped being a local or regional activity and became a global affair.
– Global trade links were established and those who were involved massively benefited from it.
– existed back in… 1st century BC – 5th century AD, was reopened in 13th – 14th centuries AD

Spice Routes – another significant development in global trade came from the trading of spices
– the biggest contributors from this era were Islamic merchants. Islam was a new religion during the 7 th
century but quickly spread to different territories. And as the religion spread, so did trade.
– existed back in… 7 th-15th centuries
BELT AND ROAD OF TRADE
Belt – sea spice route
Road – land-based Silk Road

The Silk Road broadened trade on land, the Spice Route broadened trade at sea (although spices were also traded on
land).

Age of Discovery – resulted to the colonization of many territories

– it was when global trade truly grew in scale. Aided by the discoveries and innovations of the
Scientific Revolution, European explorers were able to connect East and West.
– happened back in 15 th -18th centuries

Spanish, Portuguese, Dutch, English – primarily involved in the explorations done during the Age of Discovery

• Colonized countries get integrated into the economies of the conquering nations. Conquerors get better access to the
resources of the conquered.
• The conqueror can also change the way of life of the conquered so that they can create a state of dependence.
• Economies created during this period were exploitative and mercantilist instead of globalized

Globalization 1.0 – the first wave of globalization took place during the First Industrial Revolution
– The British Empire led the world into this new era. It introduced technologies that allowed massive
amounts of goods to be transported across long distances and its industrialization allowed it to make products that were
in demand all over the world. Other countries also benefitted from these new technologies since it was now easier for
them to export their own goods.
– trade grew steadily during this era
– 19 th Century – 1914

The World Wars – (or the period starting from World War I going to World War II) is a period that some scholars refer to
as a period of de-globalization or the collapse of globalization
– By the end of the World Wars, trade was at an all-time low.

World War I – in 1914-1918 disrupted trade heavily. Millions of soldiers and civilians died, further developments
globalization-related technologies were halted, and countries closed their borders.

World War II – took place in 1939-1945

Globalization 2.0 and 3.0 – The world entered the Third Industrial Revolution which saw the invention of the Internet
– This was aided by the 2 nd Industrial Revolution which saw the invention of the car, the
airplane, and many other technologies that took trade to an entirely different level
– organizations like the European Union and the World Trade Organization, to name a few,
were established and encouraged international cooperation
– countries were also encouraged to participate in free trade which opened up more
territories in this globalized environment

Globalization 2.0 occurred in 1945-1989

Globalization 3.0 occurred in 1989-2008

United States, Soviet Union – the leading nations in Globalization 2.0

United States – the sole leading nation in Globalization 3.0 after the collapse of the Soviet Union
Globalization 4.0 – (2008-present) this is an entirely different landscape from when the Silk Road was first established
– the new frontier of globalization in this era is the cyber world
– New technologies have made the world an even smaller place. Every individual person’s reach has
been expanded and the things that they can do with the technologies available has been intensified

United States, China – The leading nations of Globalization 4.0

LEADING EXPORTS DURING

The Age of Discovery: Raw material/basic goods
Globalization 1.0: textiles/industrial goods
Globalization 2.0: factories
Globalization 3.0: global supply chain
Globalization 4.0: digital goods/services

LEADING NATIONS DURING

The Age of Discovery: Spain, Portugal, British Empire, The Netherlands
Globalization 1.0: British Empire
Globalization 2.0: United States, Soviet Union
Globalization 3.0: United States
Globalization 4.0: United States, China

THE ENABLING ERA OF

The Age of Discovery: Scientific Revolution (15th – 17th century)
Globalization 1.0: 1st Industrial Revolution
Globalization 2.0: 2nd Industrial Revolution
Globalization 3.0: 3rd Industrial Revolution
Globalization 4.0: 4th Industrial Revolution

DIMENSIONS/DOMAINS OF GLOBALIZATION
According to John Levin
• Economic
• Political
• Cultural
• Information