Globalization Overview

Definition of Globalization

• Sharing of culture, money, and products between countries.
• Influenced by international trade, advances in transportation, and communication.
• Not a recent development; has existed for centuries.
  • Examples: Silk and spice trade routes (1st century BCE), English and Dutch shipping empires (16th Century).
• A social process of increasing awareness of other cultures and peoples across borders.

Factors Contributing to Globalization

• Economic interdependence among countries.
• Advancements in communication technology.
• General progress in technology.

Theories of Globalization

World-Systems Theory

• Focuses on the world as a unit rather than individual countries.
• Divides the world into three regions:
  • Core Countries: e.g., Western Europe, USA.
    • Strong central government, diversified economy, independent.
    • Focus on higher production of goods.
  • Periphery Countries: e.g., Latin America, Africa.
    • Weak government, dependence on one economic activity (e.g., raw materials).
    • High poverty and education levels, small upper class.
    • Heavily influenced by core countries and transnational corporations.
  • Semi-Periphery Countries: e.g., India, Brazil.
    • Middle ground; diversified and developing economies.
    • Can move up from periphery or decline from core.
• Criticisms: Too focused on economic aspects, neglects culture and class struggles.

Modernization Theory

• Proposes all countries follow a similar development path from traditional to modern societies.
• Assumes traditional countries can develop with help by adopting new technologies and social changes.

Dependency Theory

• Reaction to modernization theory, using core-periphery framework.
• Argues periphery countries remain poor due to historical integration into the world system as undeveloped, not due to a lack of development potential.
• Suggests a perpetual unfavorable economic position, hindering growth.

Perspectives on Globalization

Hyper Globalist Perspective

• Views globalization as a legitimate process, a new age in human history.
• Economies become interdependent; national states become less important.
• Debate on whether this trend is positive or negative.

Skeptical Perspective

• Critical of globalization; sees processes as regional rather than global.
• National borders retain importance; third world countries do not benefit equally from global integration.
• Argues transnational corporations are still tied to their home countries.

Transformationalist Perspective

• Does not identify a specific cause or outcome of globalization.
• National governments may be changing in importance, but changes are complex and unclear.
• Acknowledges a new world order is developing, influenced by multiple factors, but outcomes remain unknown.

Impact of Globalization

• Facilitates international terrorism and civil unrest due to cultural influx.
• Creates a global economy with interdependent countries, promoting a global community.