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Flashcards in Globalisation Deck (48)
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1

what is globalisation?

the idea that the world is becoming a more interconnected and interdependent place, where events and ideas from one part of the world have an impact far beyond their borders

for example, conflict in Syria has increased the number of asylum seekers and migrants across Europe

the emergence of a complex web of interconnectedness, meaning that a variety of nonstate actors, global trends and events challenge territorial borders and state sovereignty

globalisation has ‘shrunk’ the world, making time and geographical location almost irrelevant

interconnectedness = the mutual reliance of two or more groups, refers to the way in which states become more linked

one of the most contentious issues in global politics

2

what does globalisation have an effect on?

globalisation has a profound effect on the state and people’s lives — including state sovereignty, democracy, people’s identities, jobs and communities

some people feel left behind in an increasingly globalised world which has caused major changes to their lives and their understanding of the world

globalisation has led to....
• the closing of traditional industries
• a loss of jobs
• the lowering of wages and living standards
• an increase in immigration
• a loss of national identity
• the lowering of prices of goods and services
• the ease and cost of international travel
• the improvement of communication technology such as the internet

3

how is the state and globalisation linked?

states and their sovereignty are hugely affected by globalisation

globalisation has lessened the importance of the territorial borders of the nation state as cultural, political and economic activity is now organised across the global stage

in many ways, the two concepts work against eachother as states are meant to be in control as sovereign entities but globalisation can make states seem redundant or even impotent

arguably, the more the world becomes globalised, the less sovereignty a state can have and the less significant it becomes

the more a state is affected by actions and events in another part of the world, the less it can realistically claim to have absolute and ultimate authority

this challenges a state’s authority and means that states no longer exist in a box, able to insulate themselves from developments elsewhere in the world

globalisation has seen the rise of non state actors, such as TNCs and NGOs, as well as international institutions, such as the World Bank and World Trade Organisation, which challenge the state centric approach

4

key debates surrounding globalisation

is it a phenomenon, a process or a policy?

is it simply a form of Westernisation and cultural imperialism? is it Americanisation?

is it a new thing? or has it been around for a while?

can it be stopped or reversed? can it be controlled?

5

what are non state actors?

participants in international relations with significant power and influence, but that are not states

6

three types of globalisation

globalisation includes three main processes....

• economic globalisation

• cultural globalisation

• political globalisation

the common factor is that all forms of globalisation limit state sovereignty in some way

7

what is economic globalisation?

the increasing integration of national economies to create a single global economy of cross-border movement and trade in goods, services, capital and technology

there has always been international trade but economic globalisation is unique due to the degree of interconnectedness and interdependence that it fosters

so much so, that the global economy can be seen as a single entity

the development of global markets in goods and services, with TNCs like Apple having global supply chains — e.g. Apple products are designed in the US, their parts are sourced from across Asia and Europe, assembly takes place in China and they are sold globally

the emergence of a single global economy limits the economic sovereignty of the nationstate

8

driving forces/causes behind economic globalisation

the Bretton Woods system

the 1973 oil crisis

developments in technology

policies and ideologies of states

all of these factors have arguably led to the development of a global economic system with interlocking and interconnected markets

the spread of pro-market values, consumerism and materialism — links to cultural globalisation and Americanisation, which has led to turbo-consumerism worldwide, made easier by technological innovation

9

driving force behind economic globalisation: the Bretton Woods system

the starting point of economic globalisation can be seen with the establishment of the Breton Woods economic system towards the end of WW2

this was a system of fixed exchange rates and regulations to encourage trade and stability in the international system

this was an attempt to prevent the circumstances that led to the prewar economic catastrophe and to WW2 itself

politicians and economists at the Bretton Woods conference were aiming to learn the lessons of economic nationalism

a greater global commitment to free trade and free markets has encouraged connectivity, this is closely associated with the principles of the Washington Consensus advanced by the Breton Woods institutions

10

driving force behind economic globalisation: the 1973 oil crisis

the 1973 oil crisis and the collapse of the fixed exchange rates introduced by the Bretton Woods system lead to the next stage in the process of economic globalisation

floating exchange rates led to greater competition for national economies and the growth in TNCs investing globally

the collapse of communism opened up new markets and opportunities for investment and the opening up of the Chinese economy was a further dimension in economic globalisation

11

driving force behind economic globalisation: advancements in technology

economic globalisation has also been furthered by the huge advancements that have taken place in technology during the last 100 years

it has taken a little more than a century to move from the first powered flight to the transportation of mass produced goods by international air freight at an incredibly low cost

a major contribution to economic globalisation is the speed of information and communications technology development

telephones, the wireless, the television, personal computers, mobile phones and the internet have all played a part in making the world smaller and changing world economics along the way

technological advances, including greater capacity for transportation and instantaneous communication via the internet, have furthered economic globalisation by linking most countries in the world into a global supply chain

led to the international transfer of money, making it far easier to trade and easier to access information — this has created a globalised financial system, where financial transactions are instant and oblivious to national borders

12

driving force behind economic globalisation: ideologies and policies of states

the ideologies and policies of states have played a role in economic globalisation

the political role of states and international institutions in promoting neoliberal policies of free trade, deregulation, privatisation, low tax and cuts to public spending — linked to the Bretton Woods Conference (1944) which led to the establishment of the Bretton Woods institutions (IMF, WTO + World Bank)

the decision by states to follow the path of cooperation and free trade in the post war era have been deliberate attempts to prevent war, increased stability and prosperity and perhaps spread democracy — the liberal world order

the focus on the benefits of free trade partly come from neoliberal thinking, which views the laissez faire approach as bringing the most economic gains

the underlying economic logic of capitalism (the need to generate as much profit as possible, which has led companies to seek to expand and become international, thus fostering globalisation)

13

evidence for economic globalisation

a huge transnational flow of capital and money — over $5 trillion is traded each day on global foreign-exchange markets

the growth in international trade, especially within TNCs across borders (Apple, Nike, McDonald’s, etc)

the growth of transnational production, where design, manufacturing and assembly is globalised — e.g. Apple produces, designs and sells in different countries

the global division of labour by country, creating economic efficiency

a globalised financial system where financial transactions are instant and oblivious to national borders

14

impact of economic globalisation

economic globalisation and the spread of consumerism and capitalism has brought about the spread of Western ideals such as democracy, human rights and individualism and thus cultural homogenisation (monoculture)

the global system created by the Bretton Woods system, along with the postwar reconstruction of Europe through the Marshall plan and Keynesian economic policies, lead to a growth in production, trade and prosperity in the developed world until the early 1970s

this long boom lead to high economic growth and full employment throughout the Western world, which led to significant social, cultural and political change

the new global division of labour, driven by TNCs, has created patterns of economic specialism — high technology is increasingly manufactured in wealthier nations while agricultural, raw material is produced in poorer states

economic globalisation has led to economic activity taking place in a ‘borderless world’ (Ohmae), reducing the power of the state to develop economic policy in isolation

15

economic globalisation challenging state sovereignty: the Washington Consensus

since the 1990s and the end of the Cold War, the Washington Consensus (economic liberalism) has prevailed — free market principles have come to dominate global trade due to economic globalisation

states have therefore needed to establish the conditions that will be attractive to global investors, such as low corporate taxation and low workplace regulation

consequently, governments have become limited and clearly do not exert absolute control over their economic decision making as they have to cater their economic policies in order to attract investment

any state seeking to act in defiance of this will risk loss of investment and capital flight

the worldwide average corporate tax rate has declined since 2003 from 30% to 22.5% — for example, Vietnam has a corporate income tax level of just 20% in order to attract foreign business

16

the globalisation of markets

the globalisation of financial markets, facilitated by the instantaneous communication of the internet, means that global events can affect a state’s economic well-being

for example, the 2007/08 sub-prime mortgage crisis in the USA, precipitated by the bankruptcy of the US bank Lehman Brothers, provoked a global banking crisis

this led to stock markets throughout the world plummeting and a global recession, with the value of global trade declining by 9%

in 1997, global capital flight from Thailand gravely threatened Southeast Asian prosperity as it led to the contagion spreading throughout the region when investors withdrew capital from its neighbours

17

what is cultural globalisation?

the increasing transmission of ideas, meanings and values across the world, creating a global culture

the ‘flattening out’ of the cultural differences between countries, meaning that cultural diversity is replaced by cultural homogeneity

the world is becoming an increasingly uniform place, where the same cultural commodities are consumed regardless of national borders — people listen to the same music, watch the same films, but the same products, use the same technology and all on the same devices

homogenisation = the coming together of global cultures and the development of a single homogenous culture without diversity or dissension, often referred to as a monoculture

cultures have been homogenised by global brands, global media, NGOs and migration to create a monoculture which is based around the ideals of liberal democracy, neoliberal economics and human rights

18

examples of cultural globalisation

1 in 7 people on the planet are thought to have watched some of the 2014 FIFA World Cup final — it was a truly global event

the same brands are recognised and can be bought all over the world — McDonald’s, Coca-Cola, Apple, Nike and so on

these companies have trademarks that are instantly recognisable to a huge portion of the world’s population

19

driving forces/causes behind cultural globalisation

growth of TNCs

technological innovation (also a driving force behind economic globalisation)

improvements in transportation and the reduction of its cost have made the movement of goods and people vastly quicker and cheaper

growth in migration and international travel and tourism

increasing roles of NGOs, like Human Rights Watch, leading to the spread of liberal values worldwide

states and institutions, especially the USA, that promote lifestyles, ideas and needs that allow for the spread of global capitalism

19

evidence of cultural globalisation: homogenisation and monoculture

increasing uniformity of culture, described by political theorist Ben Barber in his concept of ‘McWorld’

an increasingly Westernised global culture based around individualism, materialism and consumerism

the emergence of a human rights culture — the spread and protection of human rights is supported by the public and politicians

liberal democracy and neoliberal economic policies are the only options — political scientist Fukuyama’s idea in The End of History and the Last Man (1992), this is the idea that there is no alternative other than liberal democracy

global culture works across boundaries, weakening the state

21

driving forces behind cultural globalisation: TNCs

TNCs may be the driving force behind the process of cultural globalisation and homogeneity

growth of TNCs, especially the growth of global media empires who may control the flow of news to propagandise — e.g. Rupert Murdoch and Ted Turner

they have developed global goods and global brands, like Nike and Apple — the Americanisation of the world

they use their global economic power to further their reach and sell more products to the world by exploiting the benefits of economic development

22

driving forces behind cultural globalisation: technological innovation

technological innovation, especially in ICT and social media

the transformation and development of technology is also breaching barriers of time and space, acting as another huge driving force behind cultural globalisation

advances in information technology have revolutionised the speed and ability to transfer information around the world

allows other countries to access each other’s cultures (watch their films, TV programmes, listen to the songs and so on), thus creating a global, uniform culture

23

criticisms of cultural globalisation

cultural globalisation has been criticised by some as....

• Americanisation — due to the dominance of US TNCs

• Westernisation — due to the role of Western companies and culture in the process of globalisation

• imperialism — due to the supposed exploitative and coercive nature of cultural globalisation

critics of globalisation believe that the only winners of globalisation are the USA, the West and the TNCs that dominate cultural, economic and political globalisation

24

debates about cultural globalisation being positive or negative

the transmission of values, ideas and meanings
has an immense impact on global politics

some see a certain inevitability about the spread of liberalism and its associated ideas throughout the world

some believe that the spread of ideas is a good thing that emphasises freedom

but others believe that cultural globalisation, along with consumerism and individualism, is bad for the environment, for local communities and traditions as well as for individuals who are manipulated by the lure of consumer products

25

what is political globalisation?

the growing importance of international organisations through which states are making more and more decisions together rather than as independent units

this is a form of global governance, which involves a broad and complex process of decision-making at a global level, involving numerous states and non-state actors

states are turning to organisations like the UN, NATO, the EU, the IMF, the G20 and the WTO in order to address the common challenges and dilemmas that they face together, such as climate change and international terrorism

the participation of non-state actors in decisions affecting the nation state means that the state is no longer autonomous in decision-making — its centrality is challenged by a variety of other stakeholders, such as IGOs and regional organisations

the end of the Cold War has led to the spreading on neoliberal economic ideas, democratic ideals and the culture of individualism, consumerism and materialism

26

what can political institutions be based on?

intergovernmentalism — common institutions facilitate decisions by member states, but states remain in control of the process as decisions have to be unanimous

supranationalism — common institutions are created that have independent decision-making ability and can impose decisions and rules on member states

27

why has political globalisation not penetrated as deeply as economic globalisation?

since states still value domestic political hegemony, political globalisation has not penetrated as deeply as economic globalisation

political globalisation is not as advanced as either economic or cultural globalisation as most international institutions are based on intergovernmentalism

while there might be emerging levels of global governance, there is little progress towards or desire for world government due to the importance of state sovereignty — this was a reason behind the Brexit referendum result

28

driving forces behind political globalisation: global issues

the emergence of transnational political problems like terrorism, ecological destruction and migration that require a cooperative, collective approach to solve them

states must cooperate and cannot work alone to fix these problems

global and regional challenges are the main drivers behind political globalisation as they cause states to turn to international organisations like the UN and NATO to address the common challenges and dilemmas they face together

global issues have forced states to cooperate and become more politically integrated as they need to work together to tackle these widespread issues, including climate change, migration crises and terrorism

states react to such challenges by working together to solve them — for example, there are numerous climate change agreements to tackle the issue of global warming

29

driving forces behind political globalisation: emergence of a human rights culture

the emergence of a human rights-based culture, following the post WW2 liberal world order, that places the rights of individuals above the power of states

led to the creation of organisations concerned with human rights

furthered by the growing role of NGOs, who watch and share information about human rights abuses by states (e.g. Human Rights Watch and Amnesty International)

30

driving forces behind political globalisation: end of the Cold War

the end of the Cold War and the emergence of the liberal world order

the global spread of liberal democracy — democratic states are more likely to tend towards cooperation, thus enhancing global governance and political globalisation

led to international institutions such as NATO, the UN, the EU, the WTO and the IMF