Globalisation

Question 1

Internationalisation

Answer 1

extension of economic activities across borders

Question 2

Globalisation

Answer 2

Internationalisation + ‘functional integration’

• an inevitable and inexorable process of increasing geographical spread and increasing functional integration• Also cultural, technological, political dimensions

Question 3

Important elements of globalisation

Answer 3

○ Deal with foreign relations
○ Interconnection between countries- integration between countries = it’s a process
§ Transfer or knowledge and culture; homogenisation
○ ‘cannot be stopped’= open to criticality and many different views

Question 4

3 important debates of globalisation

Answer 4

Hyperglobalists vs sceptics

The End of Globalisation

Is globalisation good or bad?

Question 5

Hyperglobalists

Answer 5

• live in a borderless world where ‘national’ is irrelevant
• globalisation is the new economic order
• nation-states are no longer significant actors
• Consumer tastes are homogenous
  can be standardized by global products with no allegiance to a place or community
• inevitable state of affairs
• World is ‘flat’ (Friedman)

Question 6

Hyperglobalists- on the right

Answer 6

Neo-liberals

• globalisation is an ideological project
• the greatest benefit for the greatest number
• let free markets rule

Problem (in their view)
- too little globalisation
- Globalization is the solution to world economic problems
and inequalities

Question 7

Hyperglobalists- on the left

Answer 7

Anti-globalizers

• globalization is the problem
• free markets create inequalities
• unregulated markets lead to a reduction in well-being for all & environmental problems
• markets must be regulated in wider interest

Solution
- return to local and reject globalization

Question 8

Sceptical internationslists

Answer 8

• Globalisation a ‘myth’?
  ○ In certain respects, world economy less globalised than at the turn of 19th/20th century
• Enduring variation in national business system (=> varieties of capitalism)
  ○ e.g. U.S., Germany, Japan
  ○ Unions more present in Germany and Japans
  ○ Shareholders more spread out in the US; family owned countries in Germany and Japan
  ○ Small convergence despite globalisation
• Most trade and FDI within each of the ‘Triads’
  ○ ‘Grounded view’: process is reality, but outcome is not prejudged
  ○ Globalisation is regionalised, in Europe or the east e.g. carrefour
  ○ Some companies don’t trade with many continents
  ○ Some companies don’t trade with many continents

Question 9

Pure globalisation

Answer 9

full integration between all

- Regionalisation prevents this
- Integration happens at the regional level, not global level

Question 10

localizing processes

Answer 10

geographically concentrated economic activities with varying degrees of functional integration

Question 11

internalizing processes

Answer 11

the simple geographical spread of economic activities across national boundaries with low levels of functional integration

Question 12

globalizing processes

Answer 12

both extensive geographical spread and high degree of functional integration

Question 13

regionalizing processes

Answer 13

the operation of globalizing processes at a more geographically limited (but supra-national) scale, ranging from the highly integrated and expanding EU too much smaller regional economic agreement

Question 14

Globalization myths

Answer 14

• the world is not flat (contra Friedman)
• the world is not borderless ( contra Ohmae)
• global corporations do not rule the world (contra Korten)
• globalization is not always good (contra the neo-liberal hyper-globalizers)
• Globalization is not always bad (contra the anti-globalizers)