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Popplet is the best app for sharing visual ideas.

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18- The EU’s Way of Managing Globalization Democratically

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18- The EU’s Way of Managing Globalization Democratically

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The European Union has been a remarkably successful political experiment. It is the first ever voluntary coming together of sovereign states. By pooling some of their sovereignty, they can do more together than they could separately.

Almost every other political unification or state-building in history has involved the use of force (including, notably, the creation of the United Kingdom and the United States). The EU came together peacefully and voluntarily.

The EU is also the most advanced effort in the world to introduce a measure of democratic supervision into the process of globalization.

Unlike other efforts to supervise globalization, such as the United Nations and the World Trade organization, the EU has a directly elected parliament that co-legislates for the EU alongside the 27 member-state governments, who often decide issues by majority.

Other international organizations operate on a purely intergovernmental basis. That means there has to unanimity to get a decision.

Worse, democratic involvement only arises when a deal already negotiated in private has to be ratified in a national parliament - mind you, without the possibility of further negotiation or amendment.

As a result, other organizations can achieve much less. And they have to do much more of what they do behind closed doors than is the case with the EU.

I believe that the EU provides a model for democratic rule-making, at the supranational level, that will become more, not less, necessary as we proceed into the 21st century. Indeed, the failure to deal with climate change is a good example of the weaknesses of present intergovernmental models of global governance.

If the different regions of the world had unions like the EU that could negotiate seriously and with genuine political legitimacy, as the EU can, the failures of Copenhagen and other climate change summits would not have happened.

And if the EU were to break up, we would have lost a unique instrument for security building in Europe, and for problem solving in the wider world.

Solving the euro crisis

While the euro crisis has become slightly less acute in recent weeks, there are still four things that need to happen - more or less at the same time - to sustain this progress:

Greece's government debt will have to be forgiven.

The European Stability Mechanism (ESM) will have to be seen to be big enough, on a contingency basis, to stand behind Spain and other countries that might get into difficulty.

The new mechanisms to supervise and, if necessary, rationalize Europe's banks will have to be put in place.

The already agreed-upon reforms to reduce deficits and to promote growth by opening up the labor and service markets to competition will have to be fully implemented in letter and in spirit.

The point of these four things is to show creditors that, if one forgives debt or creates enlarged contingency funds, one is not throwing good money after bad. One of the reasons the potential for growth has been so low in Greece, Italy and Spain is the lack of competition or flexibility in key sectors.

Germany has set a good example in terms of labor market and pension reform, but there are other reforms it could initiate. This includes helping other EU countries to sell more goods and services to the German market, and thereby trade their way out of their problems.

The EU's democratic legitimacy problem

The pressures that cause fracture in the EU - whether in the United Kingdom or elsewhere - stem from a lack of understanding among the general public of the extent to which their livelihoods depend on economic developments in other countries. Voters remain amazingly naive about how unrealistic, in modern conditions, an "ourselves alone" policy is.

Political leaders make little effort to explain this because to do so would undermine the nationalist myths which brought most states into being in the first place. It would also rob them of the often convenient way to blame the EU for the effects of decisions that are necessary, but unpalatable.

For these reasons, little effort is made to forge any form of patriotic pride in the EU or its achievements. In that context, it matters a great deal that no venue has been created in which an EU-wide public opinion might be created.

We all know that the European Parliament, despite its potential and generally assigned role, cannot serve as such a platform. There are no truly European elections. Instead, there are 27 different elections, in 27 different countries, in which national issues predominate.

The European Parliament itself has refused to contemplate the election of some of its members from EU-wide party lists, which would begin the process of creating EU-wide debates.

The presidents of the European Commission and the European Council are selected in private meetings of heads of government. They do not have to win the votes of citizens on an EU-wide basis either.

Consequently, EU citizens do not have the feeling that they can vote the government of the EU out of office, in the same way that they can vote their national government out of office. Thus, the EU does not enjoy democratic legitimacy in quite the same way that national governments do.

As a member of the convention that drafted what eventually became the Lisbon Treaty, I urged unsuccessfully that the EU should have a presidential election on these lines. I suggested that the president of the European Commission should be selected in a multi-candidate election in which every EU citizen would vote.

Instead, he (so far, this office has been held only by men) is selected, at present, by 27 heads of government who meet in private, to be approved in a single-candidate vote in the European Parliament.

The European Union is facing an existential crisis, caused by the conjunction of the stress on the euro currency and the implicit threat of one of its long-term members, the United Kingdom, to leave altogether.

Despite this, the EU brings much added value to the 21st century world - a unique means of governing globalization democratically and thereby providing mutual security to its member states.

But the EU has a lot of difficult work to do if it is to survive. It must simultaneously become more efficient and more democratic. It will not be easy to do these two things at the same time - and its critics should be more understanding, and less dogmatic, in assessing what the EU is trying to do.

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The EU's Way of Managing Globalization Democratically - The Globalist

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The European Union has been a remarkably successful political experiment. It is the first ever voluntary coming together of sovereign states. By pooling some of their sovereignty, they can do more together than they could separately. Almost every other political unification or state-building in history has involved the use of force (including, notably, the creation of the United Kingdom and the United States).

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14- Globalisation – the debate of the past 10 years 

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14- Globalisation – the debate of the past 10 years 

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13- Globalisation’s impact on inflation in the European Union  

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13- Globalisation’s impact on inflation in the European Union  

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Globalisation's impact on inflation in the European Union

It is anyone's guess where EU inflation is headed once the effects of the financial and sovereign debt crises settle. What is certain, however, is that the inflationary process after the crises will be shaped by the same long-term structural developments that helped create the low-inflation environment in the years leading up to 2007. By far the most salient of these long-term developments is the increasing integration of the world economy, commonly referred to as "globalisation".

For the EU, globalisation during the last two decades above all has meant increasing integration with the former Warsaw Pact Nations (in particular with the new EU member states) and also with Turkey. Another dimension for the EU is the rise of cheap imports from East Asia, in particular from China.

To what extent has increasing integration with East Asia and the former Warsaw Pact nations affected the EU's inflationary environment during the last decade? Several studies have investigated this question including Glatzer et al. (2006), Pain et al. (2006), Borio and Filardo (2007), Wheeler (2008), and Bugamelli et al. (2010). In a recent working paper co-authored with Kathrin Degen (Auer et al. 2010) we present new evidence in this area and try to explore the likely effects of future integration.

We argue that much of the existing literature fails to establish the causal effect of competition from lower-wage-country imports since trade flows are endogenous to local demand conditions. For example, when an industrial sector in Europe experiences a positive demand shock, prices increase, thereby inducing an increase in low-wage country imports. The presence of this endogeneity biases the estimated relative price effect of trade towards zero.

The approach we adopt to deal with this endogeneity issue is related to work studying the effect of trade integration and competition by Chen et al. (2009) and our earlier work establishing the effect of low-wage-country exporters on US inflationary pressure (see Auer and Fischer 2010 and our 2008 Vox Column).

To establish a causal effect of trade on inflation in Europe, we extend the instrumentation strategy of Auer and Fischer (2010) for the case of both heterogeneous exporter markets (with a focus on emerging Europe versus China) and heterogeneous import markets (Germany, France, Italy, Sweden, and the UK). As in Auer and Fischer (2010), the IV strategy is based on the simple observation that when low-wage-country manufacturing output grows, low-wage-country exports to Western Europe increase in labour intensive sectors relative to capital intensive sectors. Imports from the low wage countries are heavily concentrated in labour intensive industries. We show that this specialisation also holds at the margin. For example, when China's manufacturing output rises, low-wage-country exports increase much more in labour-intensive sectors than in capital intensive sectors.

To investigate the impact of trade integration with emerging Europe, we then refine the instrumentation strategy to incorporate the fact that Easter European exporters may be more or less important in certain Western European markets for certain types of goods. For example, owing to geographic proximity, Eastern European exporters could be more important in Germany than in France, and this difference, in turn, could be more pronounced for goods with high transportations costs.

We study the combined effects of exports from China, India, Malaysia, Mexico, Philippines, Poland, Romania, Slovak Republic, Thailand, and Turkey on producer prices in Germany, France, Italy, Sweden, and the UK.

In a panel covering 110 industries from 1995 to 2008, our estimates suggest that import competition from lower-wage countries is associated with strong price effects. European producer prices fall between 3.2% and 4.8% when lower-wage-country growth in manufacturing rises by 1% above trend.

We also investigate whether the response is heterogeneous across the five Western European import markets. The coefficient estimates are significant for Germany, France, Sweden, and the UK in the regressions using import volume. Further, the coefficient estimates for import values and import volumes show that the penetration effect for prices is strongest for the UK and Sweden, followed by Germany and France. When imports from lower-wage countries capture 1% of the British market, producer prices decrease by -3.8% in the regression using import volumes. In the same regression for Sweden the price effect is -2.6%, whereas for Germany it is only -1.2%. In contrast, the estimates for Italy suffer from the problem that the first stage of our specifications is often weakly identified since Italy does not tend to systematically import labour intensive goods (Bugamelli et al. 2010 do find a small but significant effect on prices in their approach using prices at the goods level).

Beyond the main empirical findings that trade with emerging economies had a profound impact on European producer prices, we show that this result is largely driven by Chinese exports. More specifically, when Chinese exporters capture 1% of the European market, producer prices decrease about 5%.

In contrast, we find relatively scarce evidence that exports from emerging Europe (i.e., Poland, Romania, Slovak Republic, and Turkey) have significantly lowered inflation in the five European import markets. This may be because this group of low-wage countries, with the exception of Romania, is only barely "low-wage". Wages and productivity in this region have risen rapidly during the past decade and are thus no longer overly concentrated in producing labour-intensive goods. In response to this observation, we refined our instrumentation strategy and dropped the Slovak Republic because its export performance is not representative of low-wage import competition.

For Poland or Turkey, we show that there is no big price effect. Our specifications show only a significant result for Romania. This is in line with our theory as Romania is the only "true" low-wage country in emerging Europe. When Romanian exporters capture 1% of the European market, producer prices decrease about 1.0%.

Globalisation and its impact on inflation and monetary policy took centre stage at the 2006 Jackson Hole Conference. The financial crisis has overshadowed this discussion. At the current juncture, central bank officials need to re-centre the monetary policy debate on globalisation's impact on industry structure and acknowledge the contributory forces of competition from lower-wage-country imports.

Auer, R. A. and A. M. Fischer, 2010. "The effect of low-wage import competition on US inflationary pressure," Journal of Monetary Economics 57(4), 491-503.

Auer, R. A. and A. M. Fischer (2008). The impact of low-income economies on US inflation, VoxEU.org, 13 June

Auer, RA, K Degen, and AM Fischer (2010), " Globalisation and inflation in Europe", CEPR Discussion Paper 6451

Borio, C, and A Filardo (2007), "Globalisation and inflation: new cross-country evidence on the global determinants of domestic inflation", BIS Working Paper 227. Basel: Bank for International Settlements, May.

Bugamelli, M, S Fabiani, and E Sette (2010), "The pro-competitive effect of imports from China: an analysis of firm level price data", Temi di discussione 737, Bank of Italy.

Chen, N, J Imbs, and A Scott (2009), "The dynamics of trade and competition", Journal of International Economics, 77(1):50-62.

Glatzer, E, E Gnan, and MT Valderrama (2006), "Globalisation, import prices and producers in Austria, monetary policy and the economy", Austrian National Bank, 3:24-43.

Pain, N, I Koske, and M Sollie (2008), "Globalisation and inflation in the OECD economies", OECD.

World Economic Outlook (2006), "How has globalisation affected inflation?", 3:97-134.

Wheeler, T (2008), "Has trade with China affected UK inflation?", Bank of England, External MPC Unit, Discussion Paper No.22.

While Auer et al. (2010) do not find a significant price effect for Italy, Bugamelli et al. (2010) do find a small but significant effect in their study using data at the establishment level.

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Globalisation's impact on inflation in the European Union

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Over the past two decades, Western European trade has become increasingly integrated with emerging economies. This column uses a novel empirical technique to show that import competition from East Asian low-wage countries - in particular China - has dampened inflation in five Western European nations.

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17- Will US-EU trade talks spur growth - or show globalization's limits?

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17- Will US-EU trade talks spur growth - or show globalization's limits?

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When American and European negotiators sit down this week to launch talks on a free trade deal between the US and the European Union, they are moving into uncharted waters - whether the deal succeeds or fails.

The Transatlantic Trade and Investment Partnership (TTIP) would be the world's largest free trade deal, far surpassing the North American Free Trade Agreement (NAFTA) between the US, Mexico, and Canada.

It's also ambitious in content. With tariffs already low, this deal will focus more on business barriers such as safety standards or inspection procedures. The issues might seem pedestrian, but are some of the trickiest to negotiate, going to the very heart of the way people live their lives: the way chicken is cleaned, or the assumptions people make when they walk into a pharmacy or get into a car.

A trade deal would deeply integrate US-European relations at a time of drift, and during a rocky patch, amid friction over American spying allegations. If it succeeds, some say it would create a more level playing field with the rise of China and other emerging markets, as well as reinvigorate other global trade initiatives.

Yet even if it fails - and there are plenty who think that the obstacles such as agriculture and, most recently, data privacy are insurmountable - a failure would be pivotal, showing that tariffs can be dropped but non-tariff barriers, which are often more cultural in nature, remain stubborn. A failure, says Fredrik Erixon, the director of the European Center for International Political Economy (ECIPE) in Brussels, "could lead to a larger standstill in efforts to address 21st century trade barriers."

Long-standing obstacles

Tariffs between the US and EU are already relatively low, but because of the sheer size of trade between the two - representing half of global economic output - advocates say it would be a major booster of growth and jobs, especially in debt-stricken Europe that has seen record high unemployment at 12.2 percent.

The two already invest nearly $4 trillion in each other's economies, according to US statistics, which translates into 7 million jobs.

It's the non-tariff barriers, however, that most are watching in TTIP talks. Today, if a product is made in France, for example, it goes through the various regulatory hurdles to bring it to the marketplace; it then has to go through another set of strenuous - and often redundant - hurdles to reach the US market. Under the TTIP, both sides could agree to mutually recognize the others' systems.

When it comes to car safety, reducing red tape may be an easy compromise. But other issues on the table have long vexed negotiators. That includes French subsidies for its film industry, European resistance to genetically modified foods (GMOs), or data privacy laws - especially in the wake of the information released by former National Security Agency (NSA) contractor Edward Snowden revealing the US systematically spies on its own citizens, as well as European institutions.

"One of the sleeper issues in the deal is how to deal with privacy," says Bruce Stokes, the director of the Global Economic Attitudes program at the Pew Research Center. Europeans, particularly Germans, are far more sensitive than Americans when it comes to data privacy.

"There is a disconnect between Europeans and Americans about this new digital economy," Mr. Stokes says. And even if the Snowden case is about government, not industry, it bolsters European assumptions that Americans don't care about privacy, he says.

Supporters of the agreement know these talks will be arduous, but at a time of economic weakness, they might have the political will to push forward. "Europe is stuck, and the US is also stuck, although not quite as bad," says Thomas Wright, a fellow in the Managing Global Order project at the Brookings Institution. "This offers a way that leaders can be proactive and generate growth. I think that resonates with people, particularly in Europe."

Mr. Erixon also says that regulators in specific industries have more of an incentive to find solutions now, because their refusal to compromise would influence every other industry included in the talks. On the issue of the US using chlorine when washing chicken, for example, compromise has been impossible because the context was always too small. "Regulators were trying to defend their position, with no interest at all in participating in negotiations with other countries," he says. "If you play filibuster now, the cost is higher."

'Cultural exceptions' - and similarities

So far TTIP has not generated widespread controversy in the US. That might be because it's still early days. But it's also because of the nature of the deal, says Charles Kupchan, a transatlantic expert at the Council on Foreign Relations in Washington. "Since trade is relatively free and since [the US] and the EU are at similar stages of development, this is not a deal that is going to cause major dislocation," he says. "This is an easier sell politically."

Opposition might be stronger on the European side. Already the French sought to invoke the so-called "cultural exception" in the talks, as a way to protect its movie industry from an incursion from Hollywood. France ultimately agreed to allow media to be included in talks so that they could officially launch, but it will be among the most difficult issues to negotiate.

"It's not a little issue. It's the cultural meat of a nation," says Josef Braml, transatlantic expert at the German Council on Foreign Relations in Berlin, who has little hope that a deal is attainable - above all, he says, because of the weakness of President Obama.

But the "cultural exception" debate could be a harbinger of sentiments that develop as the trade talks get underway.

Guillaume Xavier-Bender of the German Marshall Fund of the US in Brussels says that in many ways the talks will show how similar regulations between Europe and the US are. "There are more things in common between Europeans and Americans than there are differences," he says.

But on the politically most sensitive issues, claims that TTIP is merely an American instrument to change European values could be made. "It is possible in Europe you see anti-globalization and anti-liberalization movements evolve into anti-Americanism," he says.

If an agreement becomes impossible to forge, it may ultimately illustrate more than transatlantic differences. Mr. Stokes says that global economies have continuously become more closely integrated over time. But if in the TTIP it's possible to get rid of tariffs yet not non-tariff barriers, he says it will be telling for the future of trade agreements globally - a sign, he says, that "we may be encountering the edges of the limits of globalization."

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Will US-EU trade talks spur growth - or show globalization's limits?

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When American and European negotiators sit down this week to launch talks on a free trade deal between the US and the European Union, they are moving into uncharted waters - whether the deal succeeds or fails.

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                                9- Globalisation

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                                9- Globalisation

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European Commission - European Commission

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As a global economic power the EU plays a constructive role in shaping the international community's response to the most pressing economic challenges.

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8- Globalization and Europe's Economy
  

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8- Globalization and Europe's Economy
  

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Why U.S.-Europe Austerity Will Only Weaken Economic Recovery

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Joseph Stiglitz, Globalization and Europe's Economy

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Joseph Stiglitz talks about globalization and how America's link with Europe proves problematic for U.S. growth on CNN, June 9th 2012. Check out our website: http://www.topwonks.org/ View more videos here: http://www.topwonks.org/videos/ Top Wonks is your single-source directory for locating knowledgeable authorities actively involved in a broad range of public policy issues.

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The Fiscal Times

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In the three decades before the 2008 financial crisis, individual national economies became increasingly global: banks, companies and consumers overseas had a direct impact on the economy here in the United States.

But in recent years, the amount of money flowing across borders has drastically decreased. According to a new report, this represents a drastic shift away from international commerce, with localized markets more dependent on domestic consumption for growth. It could mark the end of modern globalization.

The McKinsey Global Institute report released yesterday measures how much money was removed from the global financial system in the wake of the financial crisis and the worldwide economic slowdown. The results are staggering: in 2007, $11.8 trillion in capital in the form of investments and loans moved internationally. This represented 335 percent of global economic production. But in 2012, only $5 trillion crossed international waters, representing 312 percent of global output. It's now back to the level it was in 2000.

McKinsey hedges the report by saying that some of the capital removed from the system was part of a necessary global correction. But it also warns that global growth would be extremely difficult without more money in the system.

"For three decades, capital markets and banking systems rapidly expanded and diversified, but now that process - called financial deepening - has largely grounded to a halt," McKinsey found. "Although global financial assets have surpassed their pre-crisis totals, growth has hit a plateau."

According to McKinsey, there are two possible ways forward. In the first scenario, countries would becomes isolationist, continuing to retreat from international capital markets and concentrate on domestic growth.

This scenario would likely provide stability while sacrificing potential international growth. U.S. banks would cut down on lending to overseas borrowers; companies with an overseas presence would retract and concentrate on domestic growth; and risks and rewards that come with foreign investment would be eliminated.

In an age of austerity, where planning is made more difficult because of uncertainty, stability is an attractive option. For Americans, this is an attractive option since paralysis in Washington exacerbates uncertainty. We saw this week that political instability in Europe could still wallop world financial markets even though the European financial crisis has taken a backseat to sequestration http://www.bbc.co.uk/news/business-21583576 . Stability would also limit damage from a potential Chinese economic slowdown.

It's also important to note that the American economy and its workers have benefitted greatly from direct foreign investment in the past. In 2010, foreign countries invested $194 billion in American companies. According to the White House, which is pressing for more foreign trade agreements, in 2011 5.7 million people -- or 13 percent of the U.S. manufacturing workforce -- worked for firms dependent on foreign money. These jobs paid an average of $70,000, some 30 percent higher than the average U.S. salary.

If this kind of investment is going to continue, the United States, along with international partners, will have to follow McKinsey's second option: financial institutions and policy makers will have to put a regulatory system in place to prevent catastrophes like the 2008 crisis. These regulations would allow money to move across borders more efficiently and with less risk.

The potential for growth in the second scenario is greater. But creating binding global financial regulations, and appointing a global authority to enforce them, would be extremely difficult. Think of this authority like the International Monetary Fund with teeth, a kind of global S.E.C.

The global economy is at a crossroads. One path leads to regulatory integration on a global scale, creating national economies with extremely close ties. The second path leads to a world where national economies are more isolated and rely on domestic consumption for growth. It remains to be seen which way we're headed.

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In the three decades before the 2008 financial crisis, individual national economies became increasingly global: banks, companies and consumers overseas had a direct impact on the economy here in the United States. But in recent years, the amount of money flowing across borders has drastically decreased.

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11- The challenges of globalisation for Europe 

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11- The challenges of globalisation for Europe 

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Jonathan Dingel at Trade Diversion draws our attention to an excellent set of papers published by the Economic Council of Finland on Challenges of globalisation for Europe and Finland. The papers were launched on 20 September at an event opened by Prime Minister Matti Vanhanen. The press release emphasises that the effects of globalisation are more diverse than estimated - and European competitiveness policy requires a great deal of work:

Globalisation creates much more subtle pressures for the worldwide re-allocation of production and employment than estimated before. Earlier, it was thought that competition from the developing low-wage countries only affected certain branches of industry and mainly low-paid workforce in the developed countries. Recent research shows that competition may affect work regardless of education level. Moreover, changes in the competition may be very abrupt and hence hard to anticipate. This highlights the importance of economic adaptability and, in particular, the ability of labour markets and education systems to adjust. Provided that we have the ability to adjust and change, globalisation will be a good thing for Europe. These are some of the conclusions made by Professor Richard Baldwin in his article, which is one of several papers constituting the first part of the study on the challenges of globalisation for Europe and Finland organised by the Secretariat of the Economic Council of Finland, published on Wednesday 20 September. In addition to Baldwin's article, the first part of the study includes eleven articles written by acknowledged European experts. Two of these articles are comments that complement Baldwin's analysis. The remaining nine articles discuss the European competitiveness and structural policies, internal market issues, innovation policies in their broad sense, the European economic policy system and governance of globalisation.

Here are links to all of the research papers contributing to the globalisation project. Also worth reading is the executive summary (PDF):

* Globalisation: the great unbundling(s) by Richard Baldwin (GIIS, Geneva)

* Challenges created by the new EU Member States and third countries by Mika Widgrén, (Turku School of Economics)

* Globalisation challenges for Europe: labour market perspectives by Torben Andersen (University of Aarhus)

* Competitiveness and structural policies: where does the EU stand? by Jean-Philippe Cotis and Jørgen Elmeskov (OECD)

* Dynamic effects of European services liberalisation: more to be gained by Henk Kox and Arjan Lejour (CPB, Hague)

* The liberalisation of network industries in the European Union: where do we come from and where do we go? by Damien Géradin (University of Tilburg)

* Effective innovation policies for Europe - the missing demand-side by Luke Georghiou (University of Manchester)

* Education and economic growth: a quick review of the evidence and some policy guidelines by Angel de la Fuente (Universitat Autonòma de Barcelona)

* Intellectual property rights in Europe-where do we stand and where should we go? by Dietmar Harhoff (Ludwig-Maximilians-University, Munich)

* Risk capital for growing world-class companies: challenges for European policy by Markku Maula (Helsinki University of Technology) and Gordon Murray (University of Exeter)

* The assignment principle and EU economic policy by Sixten Korkman (ETLA)

* The EU and the governance of globalisation by Alan Ahearne, Jean Pisani-Ferry, André Sapir and Nicolas Véron (Bruegel, Brussels)

What are the policy implications of this reserach? The press statement continues:

The articles imply a strong need to develop the European competitiveness policy in various policy sectors. The new challenges posed by global competition combined with, for example, population ageing underline the need to improve innovation activity, the education systems and the functioning of labour markets, product markets and markets for risk financing. Many of the policy recommendations are familiar from earlier studies. For example, further investments in education and, at least in certain countries, in R&D find support. But the analyses also warn about excessive simplicity in policy. Efforts to raise education level by simply increasing the number of people with university degrees are not necessarily wise. Nor are such "investments in the information society" that merely aim to train, for example, more ICT specialists. In several articles, attention is paid to the greatly differing performance of the European countries in employment creation and productivity growth. In many respects, the Nordic countries seem to fare very well. On the basis of the aforementioned differences, the authors stress the importance of national policies and the need to learn form other countries' experiences. The success of European economies depends, ultimately, on the countries' ability to implement reforms that contribute to growth and employment. However, the Union must also do its share. New bold openings are required in innovation policy. In this regard, new technology development projects based on cooperation between European companies and the public sector constitute an important field of action. Europe should also finally get its incoherent patent system in order. The development of a European-wide services market and network industries will provide new potential which only wait to be exploited.

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The challenges of globalisation for Europe

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Jonathan Dingel at Trade Diversion draws our attention to an excellent set of papers published by the Economic Council of Finland on Challenges of globalisation for Europe and Finland. The papers were launched on 20 September at an event opened by Prime Minister Matti Vanhanen.

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BBC article (2007)

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By Steve Schifferes
Economics reporter, BBC News, Bangalore

Globalisation is a word that is on everyone's lips these days, from politicians to businessmen. BBC News is launching a major examination of the subject.
Few places in the world have seen the dramatic effects of globalisation more than Bangalore, the Silicon Valley of India, which is experiencing an unprecedented IT boom that is transforming the prospects of the Indian economy.

For Santosh, a tour guide in Bangalore, life is good. As a result of the IT boom, he has launched his own web-based travel firm, getoffurass.com, and is doing a booming business selling weekend getaway holidays to stressed-out IT workers.

For Dean Braid, a skilled car engineer in Flint, Michigan, life is not so good. He - and 28,000 other workers - were laid off from Buick City when GM closed the complex in 1999, and hasn't worked since.

Globalisation is blamed for many of the ills of the modern world, but it is also praised for bringing unprecedented prosperity.

But what is globalisation, and what are the forces that are shaping it?

Globalisation - good or bad?

The accelerating pace of globalisation is having a profound effect on life in rich and poor countries alike, transforming regions such as Detroit or Bangalore from boom to bust - or vice versa - in a generation.

Many economists believe globalisation may be the explanation for key trends in the world economy such as:

Lower wages for workers, and higher profits, in Western economies

The flood of migrants to cities in poor countries

Low inflation and low interest rates despite strong growth

And globalisation has played a key role in the unprecedented increase in prosperity in the last 50 years, which is now spreading from the United States and Europe to include many formerly poor countries in Asia, including China and India.

Defining globalisation

In economic terms, globalisation refers to the growing economic integration of the world, as trade, investment and money increasingly cross international borders (which may or may not have political or cultural implications).

Globalisation is not new, but is a product of the industrial revolution. Britain grew rich in the 19th century as the first global economic superpower, because of its superior manufacturing technology and improved global communications such as steamships and railroads.

But the pace, scope and scale of globalisation have accelerated dramatically since World War II, and especially in the last 25 years.

The rapid spread of information technology (IT) and the internet is changing the way companies organise production, and increasingly allowing services as well as manufacturing to be globalised.

Globalisation is also being driven by the decision by India and China to open their economies to the world, thus doubling the global labour force overnight.

The role of trade

Trade has been the engine of globalisation, with world trade in manufactured goods increasing more than 100 times (from $95bn to $12 trillion) in the 50 years since 1955, much faster than the overall growth of the world economy.

Since 1960, increased trade has been made easier by international agreements to lower tariff and non-tariff barriers on the export of manufactured goods, especially to rich countries.

Those countries which have managed to increase their role in the world trading system by targeting exports to rich countries - such as Japan, Korea and now China - have seen dramatic increases in their standard of living.

In the post-war years more and more of the global production has been carried out by big multinational companies who operate across borders.

Multinationals have become increasingly global, locating manufacturing plants overseas in order to capitalise on cheaper labour costs or to be closer to their markets.

And globalisation is even harder to track now that one-third of all trade is within companies, for example Toyota shipping car parts from Japan to the US for final assembly.

More recently, some multinationals like Apple have become "virtual firms" outsourcing most of their production to other companies, mainly in Asia.

Service sector globalisation

It is not only the Western manufacturing industry that is under threat from globalisation.

The services sector, which includes everything from hairdressers to education to accounting and software development, is also increasingly affected by globalisation.

Many service sector jobs are now under threat from outsourcing and offshoring, as global companies try to save money by shifting many functions that were once done internally.

What China has become to manufacturing, India has become to the new world of business process outsourcing (BPO) - which includes everything from payroll to billing to IT support.

India is the world's leading exporter of IT services, with its volume of offshore business doubling every three years.

Every major international company in the IT industry now has a huge presence in India, and plans to expand its investments.

The Bangalore Tigers

Several dynamic new Indian companies are now challenging the multinationals for global leadership in this area, including TCS, Infosys and WIPRO.

The IT services boom has helped to transform the Indian economy, which is now growing at more than 9% per year, the same rate as China.

The new-found affluence of the young workers in the IT sector has in turn changed attitudes to wealth and consumption in India - with educated young people for the first time being able to afford such luxuries as motor cars and home ownership.

Western anxiety

The dizzying pace of change in the new world of globalisation is unprecedented, and can be frightening.

A recent poll by Deloitte in November 2006 showed a sharp increase in worries about outsourcing of white collar jobs in the UK.

Just 13% said it was a good thing, compared to 29% in January, while 82% of the public believed enough jobs have been sent abroad already, and 32% wanted to force companies to bring jobs back to Britain.

Meanwhile in the US, the Democratic victory in the November Congressional elections had a lot to do with worries about the effect of globalisation on wages and jobs.

The speed and scale of economic change has made it increasingly difficult for governments to keep their economic destiny in their own hands.

And what is most disturbing for many people is that no-one seems to be in charge, or be able to agree fair rules for the new global economic order.

Crisis of legitimacy

The international institutions meant to deal with the globalising world are all in trouble.

For example, the World Trade Organization (WTO) is now under fire for failing to take into account labour standards or the environmental impact of trade.
And its efforts to break down global trade barriers are faltering.

Meanwhile the International Monetary Fund (IMF) and the World Bank, set up in 1944 as part of the UN system to run the international monetary system and to co-ordinate aid flows to poor countries, have come under criticism for not giving a bigger role to emerging market countries like India and China.

And the IMF has found it increasingly difficult to influence the world's capital markets, whose huge financial flows dwarf its resources - or to correct the huge global imbalances that arise from trade.

Who should run the world?

There is even less international regulation of other aspects of globalisation.

Attempts by the OECD to set rules governing foreign investment by multinational companies collapsed in the 1980s, while the rules for international banking, stock markets and accounting are increasingly being negotiated by international quangos behind closed doors.

And while the rights of workers to organise unions is enshrined in resolutions passed at the International Labour Organization (ILO), it lacks any enforcement powers.

The key question is whether the growing globalisation of the world economy will lead to a parallel increase in global regulation - and whether that would be good or bad for world economic growth and equality.

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BBC NEWS | Business | Globalisation shakes the world

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By Steve Schifferes Economics reporter, BBC News, Bangalore Globalisation is a word that is on everyone's lips these days, from politicians to businessmen. BBC News is launching a major examination of the subject.

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BBC News

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What is fundamentally transforming work is extraordinary connectivity.

In the near future, at least five billion people around the world will use some form of mobile device to download information, access knowledge and coach and teach each other.

Some will have the intellectual capacity and motivation to really make something of this opportunity, wherever they happen to be born.

These people will want to join the global talent pool and, if possible, migrate to creative and vibrant cities.

By doing so, this vast crowd of talented people will increasingly compete with each other, continuously upping the stakes for what it takes to succeed.

It seems to me that this will impact all of us in three ways - the hollowing out of work, the globalisation of virtual work, and the rise of the 'transnational'.

As a result of connectivity and globalisation millions of jobs across the world are disappearing.

This hollowing out of work is seeing the disappearance of middle-wage, middle-skilled jobs such as managers, secretaries, or assembly line workers.

These jobs are at risk because they can either be outsourced to a region with lower wages, or they can be replaced by technology.

So what is left is the jobs at each end of the skill and wage spectrum.

At one end there are high-skill, high-wage jobs - like investment bankers, lawyers, engineers, or IT specialists - which need complex knowledge and expertise and cannot (yet) be substituted by technology.

You can expect these jobs to be paid increasingly well.

At the other end are the low-skilled, low-wage jobs like hairdressers, waiters, bank tellers and shop assistants.

The jobs are difficult to automate because you have to be there to do them. But because many of these jobs require limited training, there is always a willing supply of workers - so wages will always be highly competitive.

The West's positional advantage in educating its population will be rapidly eroded even for higher skilled jobs as online education platforms like MIT's OpenCourseWare, Open Yale, iTunes U and Khan Academy connect students in vast numbers, whilst enabling them to have very similar learning experiences and work towards similar qualifications.

It might mean a youngster in an Indian village will have some of the same experience as her contemporary in downtown New York.

Being educated is one part of the work equation, but there is also the question of jobs.

What will a highly-educated person in an Indian village actually do? It seems that in the coming decade even people in the remotest parts of the world will be able to work on online global tasks and projects.

So in principle, whether you live in Uzbekistan, Uruguay or Uganda, the state of your national economy will not necessarily affect your ability to find work, as the virtual market transcends national economies.

Right now, platforms like oDesk, eLance and Guru are able to connect buyers of specialist skills to sellers of these skills, providing access to web designers, software programmers, salespeople, translators and administrators from across the world.

These platforms are enabling distributed buyers and sellers to be combined with speed and accuracy.

There is every possibility that this combination of scaled education and scaled job finding will move work to regions where the most talented and motivated happen to be living.

Rise of the 'transnational'

The implications of the globalisation of education and job market is the rise of what we might call "transnationals".

In the past this is a word to describe corporations - now it's a word to describe people.

These are a worldwide group of people who are able to relocate at any time, making decisions based on relative global employment and investment opportunities.

This global elite, with hybrid associations among multiple cultures and societies, will build competencies that bridge societies in terms of their management style, cultural sensitivities and social networks.

Transnationals, able to speak more than one language and often carrying dual citizenship, will be able to adapt to the sort of cross-cultural communication that is so important for global organisations.

In the past, people with these transnational capabilities predominately came from the developed West.

Now, they are emerging from many countries around the world, amid clear signals that this re-balancing will continue.

Expect to see a whole cohort of leaders emerging from India in the coming decade, and from China in the following decade as these countries' diaspora create ever stronger corridors between markets.
Lynda Gratton is Professor of Management Practice and director of the Future of Work Consortium. Her last book - about the future of work - was 'The Shift'

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What is fundamentally transforming work is extraordinary connectivity. In the near future, at least five billion people around the world will use some form of mobile device to download information, access knowledge and coach and teach each other. Some will have the intellectual capacity and motivation to really make something of this opportunity, wherever they happen to be born.

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5- How it
works : European Globalisation Adjustment Fund

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5- How it
works : European Globalisation Adjustment Fund

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How it works: European Globalisation Adjustment Fund

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Brian has been making vacuum cleaners for years. He loves his job. One day a new vacuum cleaner factory is opened on the other side of the planet. Labour is considerably cheaper over there. Due to trade globalisation, the new, cheap vacuum cleaners arrive in Europe by the boatload.

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Wikipedia article

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Globalization, or globalisation ( Commonwealth English; see spelling differences), is the process of interaction and integration among people, companies, and governments worldwide. Globalization has accelerated since the 18th century due to advances in transportation and communication technology. This increase in global interactions has caused a growth in international trade and the exchange of ideas, beliefs, and culture. Globalization is primarily an economic process of interaction and integration that is associated with social and cultural aspects. However, disputes and diplomacy are also large parts of the history of globalization, and of modern globalization.

Economically, globalization involves goods, services, data, technology, and the economic resources of capital. The expansion of global markets liberalizes the economic activities of the exchange of goods and funds. Removal of cross-border trade barriers has made the formation of global markets more feasible. Advances in transportation, like the steam locomotive, steamship, jet engine, and container ships, and developments in telecommunication infrastructure, like the telegraph, Internet, and mobile phones, have been major factors in globalization and have generated further interdependence of economic and cultural activities around the globe.

Though many scholars place the origins of globalization in modern times, others trace its history to long before the European Age of Discovery and voyages to the New World, and some even to the third millennium BCE. The term globalization first appeared in the early 20th century (supplanting an earlier French term mondialization), developed its current meaning some time in the second half of the 20th century, and came into popular use in the 1990s. Large-scale globalization began in the 1820s, and in the late 19th century and early 20th century drove a rapid expansion in the connectivity of the world's economies and cultures.

In 2000, the International Monetary Fund (IMF) identified four basic aspects of globalization: trade and transactions, capital and investment movements, migration and movement of people, and the dissemination of knowledge. Globalizing processes affect and are affected by business and work organization, economics, sociocultural resources, and the natural environment. Academic literature commonly divides globalization into three major areas: economic globalization, cultural globalization, and political globalization.

Etymology and usage

The word globalization was used in the English language as early as the 1930s, but only in the context of education and the term failed to gain traction. Over the next few decades, the term was occasionally used by other scholars and media, but it was not clearly defined. One of the first usages of the term in the meaning resembling the later, common usage was by French economist François Perroux in his essays from the early 1960s (in his French works he used the term mondialization (literary worldization), also translated as mundialization). Theodore Levitt is often credited with popularizing the term and bringing it into the mainstream business audience in the later in the middle of 1980s.

Since its inception, the concept of globalization has inspired competing definitions and interpretations. Its antecedents date back to the great movements of trade and empire across Asia and the Indian Ocean from the 15th century onward. Due to the complexity of the concept, various research projects, articles, and discussions often stay focused on a single aspect of globalization.

In 1848, Karl Marx noticed the increasing level of national inter-dependence brought on by capitalism, and predicted the universal character of the modern world society. He states:

"The bourgeoisie has through its exploitation of the world market given a cosmopolitan character to production and consumption in every country. To the great chagrin of Reactionists, it has drawn from under the feet of industry the national ground on which it stood. All old-established national industries have been destroyed or are daily being destroyed. . . . In place of the old local and national seclusion and self-sufficiency, we have intercourse in every direction, universal inter-dependence of nations."

Sociologists Martin Albrow and Elizabeth King define globalization as "all those processes by which the people of the world are incorporated into a single world society." In The Consequences of Modernity, Anthony Giddens writes: "Globalization can thus be defined as the intensification of worldwide social relations which link distant localities in such a way that local happenings are shaped by events occurring many miles away and vice versa." In 1992, Roland Robertson, professor of sociology at the University of Aberdeen and an early writer in the field, described globalization as "the compression of the world and the intensification of the consciousness of the world as a whole."

In Global Transformations, David Held and his co-writers state:

Although in its simplistic sense globalization refers to the widening, deepening and speeding up of global interconnection, such a definition begs further elaboration. ... Globalization can be on a continuum with the local, national and regional. At one end of the continuum lie social and economic relations and networks which are organized on a local and/or national basis; at the other end lie social and economic relations and networks which crystallize on the wider scale of regional and global interactions. Globalization can refer to those spatial-temporal processes of change which underpin a transformation in the organization of human affairs by linking together and expanding human activity across regions and continents. Without reference to such expansive spatial connections, there can be no clear or coherent formulation of this term. ... A satisfactory definition of globalization must capture each of these elements: extensity (stretching), intensity, velocity and impact.

Swedish journalist Thomas Larsson, in his book The Race to the Top: The Real Story of Globalization, states that globalization:

is the process of world shrinkage, of distances getting shorter, things moving closer. It pertains to the increasing ease with which somebody on one side of the world can interact, to mutual benefit, with somebody on the other side of the world.

Paul James defines globalization with a more direct and historically contextualized emphasis:

Globalization is the extension of social relations across world-space, defining that world-space in terms of the historically variable ways that it has been practiced and socially understood through changing world-time.

Manfred Steger, professor of global studies and research leader in the Global Cities Institute at RMIT University, identifies four main empirical dimensions of globalization: economic, political, cultural, and ecological. A fifth dimension-the ideological-cutting across the other four. The ideological dimension, according to Steger, is filled with a range of norms, claims, beliefs, and narratives about the phenomenon itself.

James and Steger stated that the concept of globalization "emerged from the intersection of four interrelated sets of ' communities of practice' ( Wenger, 1998): academics, journalists, publishers/editors, and librarians." They note the term was used "in education to describe the global life of the mind"; in international relations to describe the extension of the European Common Market, and in journalism to describe how the "American Negro and his problem are taking on a global significance". They have also argued that four forms of globalization can be distinguished that complement and cut across the solely empirical dimensions. According to James, the oldest dominant form of globalization is embodied globalization, the movement of people. A second form is agency-extended globalization, the circulation of agents of different institutions, organizations, and polities, including imperial agents. Object-extended globalization, a third form, is the movement of commodities and other objects of exchange. He calls the transmission of ideas, images, knowledge, and information across world-space disembodied globalization, maintaining that it is currently the dominant form of globalization. James holds that this series of distinctions allows for an understanding of how, today, the most embodied forms of globalization such as the movement of refugees and migrants are increasingly restricted, while the most disembodied forms such as the circulation of financial instruments and codes are the most deregulated.

The journalist Thomas L. Friedman popularized the term " flat world", arguing that globalized trade, outsourcing, supply-chaining, and political forces had permanently changed the world, for better and worse. He asserted that the pace of globalization was quickening and that its impact on business organization and practice would continue to grow.

Economist Takis Fotopoulos defined "economic globalization" as the opening and deregulation of commodity, capital, and labor markets that led toward present neoliberal globalization. He used "political globalization" to refer to the emergence of a transnational élite and a phasing out of the nation-state. Meanwhile, he used "cultural globalization" to reference the worldwide homogenization of culture. Other of his usages included " ideological globalization", " technological globalization", and "social globalization".

Lechner and Boli (2012) define globalization as more people across large distances becoming connected in more and different ways.

"Globophobia" is used to refer to the fear of globalization, though it can also mean the fear of balloons.

Archaic globalization conventionally refers to a phase in the history of globalization including globalizing events and developments from the time of the earliest civilizations until roughly the 1600s. This term is used to describe the relationships between communities and states and how they were created by the geographical spread of ideas and social norms at both local and regional levels.

In this schema, three main prerequisites are posited for globalization to occur. The first is the idea of Eastern Origins, which shows how Western states have adapted and implemented learned principles from the East. Without the spread of traditional ideas from the East, Western globalization would not have emerged the way it did. The second is distance. The interactions of states were not on a global scale and most often were confined to Asia, North Africa, the Middle East, and certain parts of Europe. With early globalization, it was difficult for states to interact with others that were not within a close proximity. Eventually, technological advances allowed states to learn of others' existence and thus another phase of globalization can occur. The third has to do with inter-dependency, stability, and regularity. If a state is not dependent on another, then there is no way for either state to be mutually affected by the other. This is one of the driving forces behind global connections and trade; without either, globalization would not have emerged the way it did and states would still be dependent on their own production and resources to work. This is one of the arguments surrounding the idea of early globalization. It is argued that archaic globalization did not function in a similar manner to modern globalization because states were not as interdependent on others as they are today.

Also posited is a "multi-polar" nature to archaic globalization, which involved the active participation of non-Europeans. Because it predated the Great Divergence in the nineteenth century, where Western Europe pulled ahead of the rest of the world in terms of industrial production and economic output, archaic globalization was a phenomenon that was driven not only by Europe but also by other economically developed Old World centers such as Gujarat, Bengal, coastal China, and Japan.

The German historical economist and sociologist Andre Gunder Frank argues that a form of globalization began with the rise of trade links between Sumer and the Indus Valley Civilization in the third millennium BCE. This archaic globalization existed during the Hellenistic Age, when commercialized urban centers enveloped the axis of Greek culture that reached from India to Spain, including Alexandria and the other Alexandrine cities. Early on, the geographic position of Greece and the necessity of importing wheat forced the Greeks to engage in maritime trade. Trade in ancient Greece was largely unrestricted: the state controlled only the supply of grain.

Trade on the Silk Road was a significant factor in the development of civilizations from China, Indian subcontinent, Persia, Europe, and Arabia, opening long-distance political and economic interactions between them. Though silk was certainly the major trade item from China, common goods such as salt and sugar were traded as well; and religions, syncretic philosophies, and various technologies, as well as diseases, also traveled along the Silk Routes. In addition to economic trade, the Silk Road served as a means of carrying out cultural trade among the civilisations along its network. The movement of people, such as refugees, artists, craftsmen, missionaries, robbers, and envoys, resulted in the exchange of religions, art, languages, and new technologies.

Early modern

" Early modern" or "proto-globalization" covers a period of the history of globalization roughly spanning the years between 1600 and 1800. The concept of "proto-globalization" was first introduced by historians A. G. Hopkins and Christopher Bayly. The term describes the phase of increasing trade links and cultural exchange that characterized the period immediately preceding the advent of high "modern globalization" in the late 19th century. This phase of globalization was characterized by the rise of maritime European empires, in the 15th and 17th centuries, first the Portuguese Empire (1415) followed by the Spanish Empire (1492), and later the Dutch and British Empires. In the 17th century, world trade developed further when chartered companies like the British East India Company (founded in 1600) and the Dutch East India Company (founded in 1602, often described as the first multinational corporation in which stock was offered) were established.

Early modern globalization is distinguished from modern globalization on the basis of expansionism, the method of managing global trade, and the level of information exchange. The period is marked by such trade arrangements as the East India Company, the shift of hegemony to Western Europe, the rise of larger-scale conflicts between powerful nations such as the Thirty Years' War, and the rise of newfound commodities-most particularly slave trade. The Triangular Trade made it possible for Europe to take advantage of resources within the Western Hemisphere. The transfer of animal stocks, plant crops, and epidemic diseases associated with Alfred W. Crosby's concept of the Columbian Exchange also played a central role in this process. European, Muslims, Indian, Southeast Asian, and Chinese merchants were all involved in early modern trade and communications, particularly in the Indian Ocean region.

The conclusion of the Napoleonic Wars brought in an era of relative peace in Europe.

Innovations in transportation technology reduced trade costs substantially.

New industrial military technologies increased the power of European states and the United States, and allowed these powers to forcibly open up markets across the world and extend their empires.

A gradual move towards greater liberalization in European countries.

During the 19th century, globalization approached its form as a direct result of the Industrial Revolution. Industrialization allowed standardized production of household items using economies of scale while rapid population growth created sustained demand for commodities. In the 19th century, steamships reduced the cost of international transportation significantly and railroads made inland transportation cheaper. The transportation revolution occurred some time between 1820 and 1850. More nations embraced international trade. Globalization in this period was decisively shaped by nineteenth-century imperialism such as in Africa and Asia. The invention of shipping containers in 1956 helped advance the globalization of commerce.

After World War II, work by politicians led to the agreements of the Bretton Woods Conference, in which major governments laid down the framework for international monetary policy, commerce, and finance, and the founding of several international institutions intended to facilitate economic growth by lowering trade barriers. Initially, the General Agreement on Tariffs and Trade (GATT) led to a series of agreements to remove trade restrictions. GATT's successor was the World Trade Organization (WTO), which provided a framework for negotiating and formalizing trade agreements and a dispute resolution process. Exports nearly doubled from 8.5% of total gross world product in 1970 to 16.2% in 2001. The approach of using global agreements to advance trade stumbled with the failure of the Doha Development Round of trade negotiation. Many countries then shifted to bilateral or smaller multilateral agreements, such as the 2011 South Korea-United States Free Trade Agreement.

Since the 1970s, aviation has become increasingly affordable to middle classes in developed countries. Open skies policies and low-cost carriers have helped to bring competition to the market. In the 1990s, the growth of low-cost communication networks cut the cost of communicating between countries. More work can be performed using a computer without regard to location. This included accounting, software development, and engineering design.

Student exchange programs became popular after World War II, and are intended to increase the participants' understanding and tolerance of other cultures, as well as improving their language skills and broadening their social horizons. Between 1963 and 2006 the number of students studying in a foreign country increased 9 times.

Since the 1980s, modern globalization has spread rapidly through the expansion of capitalism and neoliberal ideologies. The implementation of neoliberal policies has allowed for the privatization of public industry, deregulation of laws or policies that interfered with the free flow of the market, as well as cut-backs to governmental social services. These neoliberal policies were introduced to many developing countries in the form of structural adjustment programs (SAPs) that were implemented by the World Bank and the International Monetary Fund (IMF). These programs required that the country receiving monetary aid would open its markets to capitalism, privatize public industry, allow free trade, cut social services like healthcare and education and allow the free movement of giant multinational corporations. These programs allowed the World Bank and the IMF to become global financial market regulators that would promote neoliberalism and the creation of free markets for multinational corporations on a global scale.

In the late 19th and early 20th century, the connectedness of the world's economies and cultures grew very quickly. This slowed down from the 1910s onward due to the World Wars and the Cold War, but picked up again in the 1980s and 1990s. The revolutions of 1989 and subsequent liberalization in many parts of the world resulted in a significant expansion of global interconnectedness. The migration and movement of people can also be highlighted as a prominent feature of the globalization process. In the period between 1965 and 1990, the proportion of the labor force migrating approximately doubled. Most migration occurred between the developing countries and least developed countries (LDCs). As economic integration intensified workers moved to areas with higher wages and most of the developing world oriented toward the international market economy. The collapse of the Soviet Union not only ended the Cold War's division of the world - it also left the United States its sole policeman and an unfettered advocate of free market.[according to whom? ] It also resulted in the growing prominence of attention focused on the movement of diseases, the proliferation of popular culture and consumer values, the growing prominence of international institutions like the UN, and concerted international action on such issues as the environment and human rights. Other developments as dramatic were the Internet's becoming influential in connecting people across the world; As of June 2012, more than 2.4 billion people-over a third of the world's human population-have used the services of the Internet. Growth of globalization has never been smooth. One influential event was the late 2000s recession, which was associated with lower growth (in areas such as cross-border phone calls and Skype usage) or even temporarily negative growth (in areas such as trade) of global interconnectedness.

Globalized society offers a complex web of forces and factors that bring people, cultures, markets, beliefs, and practices into increasingly greater proximity to one another.

Economic globalization

Economic globalization is the increasing economic interdependence of national economies across the world through a rapid increase in cross- border movement of goods, services, technology, and capital. Whereas the globalization of business is centered around the diminution of international trade regulations as well as tariffs, taxes, and other impediments that suppresses global trade, economic globalization is the process of increasing economic integration between countries, leading to the emergence of a global marketplace or a single world market. Depending on the paradigm, economic globalization can be viewed as either a positive or a negative phenomenon. Economic globalization comprises: globalization of production; which refers to the obtainment of goods and services from a particular source from locations around the globe to benefit from difference in cost and quality. Likewise, it also comprises globalization of markets; which is defined as the union of different and separate markets into a massive global marketplace. Economic globalization also includes competition, technology, and corporations and industries.

International standards have made trade in goods and services more efficient. An example of such standard is the intermodal container. Containerization dramatically reduced the costs of transportation, supported the post-war boom in international trade, and was a major element in globalization. International standards are set by the International Organization for Standardization, which is composed of representatives from various national standards organizations.

A multinational corporation, or worldwide enterprise, is an organization that owns or controls the production of goods or services in one or more countries other than their home country. It can also be referred to as an international corporation, a transnational corporation, or a stateless corporation.

A free-trade area is the region encompassing a trade bloc whose member countries have signed a free-trade agreement (FTA). Such agreements involve cooperation between at least two countries to reduce trade barriers - import quotas and tariffs - and to increase trade of goods and services with each other. If people are also free to move between the countries, in addition to a free-trade agreement, it would also be considered an open border. Arguably the most significant free-trade area in the world is the European Union, a politico- economic union of 27 member states that are primarily located in Europe. The EU has developed European Single Market through a standardized system of laws that apply in all member states. EU policies aim to ensure the free movement of people, goods, services, and capital within the internal market,

Trade facilitation looks at how procedures and controls governing the movement of goods across national borders can be improved to reduce associated cost burdens and maximize efficiency while safeguarding legitimate regulatory objectives.

Global trade in services is also significant. For example, in India, business process outsourcing has been described as the "primary engine of the country's development over the next few decades, contributing broadly to GDP growth, employment growth, and poverty alleviation".

Cultural globalization

Cross-cultural communication is a field of study that looks at how people from differing cultural backgrounds communicate, in similar and different ways among themselves, and how they endeavour to communicate across cultures. Intercultural communication is a related field of study.

Cultural diffusion is the spread of cultural items-such as ideas, styles, religions, technologies, languages etc. Cultural globalization has increased cross-cultural contacts, but may be accompanied by a decrease in the uniqueness of once-isolated communities. For example, sushi is available in Germany as well as Japan, but Euro-Disney outdraws the city of Paris, potentially reducing demand for "authentic" French pastry. Globalization's contribution to the alienation of individuals from their traditions may be modest compared to the impact of modernity itself, as alleged by existentialists such as Jean-Paul Sartre and Albert Camus. Globalization has expanded recreational opportunities by spreading pop culture, particularly via the Internet and satellite television. The cultural diffusion can create a homogenizing force, where globalisation is seen as synonymous with homogenizing force via connectedness of markets, cultures, politics and the desire for modernizations through imperial countries sphere of influence.

Religions were among the earliest cultural elements to globalize, being spread by force, migration, evangelists, imperialists, and traders. Christianity, Islam, Buddhism, and more recently sects such as Mormonism are among those religions which have taken root and influenced endemic cultures in places far from their origins.

Globalization has strongly influenced sports. For example, the modern Olympic Games has athletes from more than 200 nations participating in a variety of competitions. The FIFA World Cup is the most widely viewed and followed sporting event in the world, exceeding even the Olympic Games; a ninth of the entire population of the planet watched the 2006 FIFA World Cup Final.

Music has an important role in economic and cultural development during globalization. Music genres such as jazz and reggae began locally and later became international phenomena. Globalization gave support to the world music phenomenon by allowing music from developing countries to reach broader audiences. Though the term "World Music" was originally intended for ethnic-specific music, globalization is now expanding its scope such that the term often includes hybrid subgenres such as "world fusion", "global fusion", "ethnic fusion", and worldbeat.

A 2005 UNESCO report showed that cultural exchange is becoming more frequent from Eastern Asia, but that Western countries are still the main exporters of cultural goods. In 2002, China was the third largest exporter of cultural goods, after the UK and US. Between 1994 and 2002, both North America's and the European Union's shares of cultural exports declined while Asia's cultural exports grew to surpass North America. Related factors are the fact that Asia's population and area are several times that of North America. Americanization is related to a period of high political American clout and of significant growth of America's shops, markets and objects being brought into other countries.

Transculturalism is defined as "seeing oneself in the other". Transcultural is in turn described as "extending through all human cultures" or "involving, encompassing, or combining elements of more than one culture".

Political globalization

Political globalization refers to the growth of the worldwide political system, both in size and complexity. That system includes national governments, their governmental and intergovernmental organizations as well as government-independent elements of global civil society such as international non-governmental organizations and social movement organizations. One of the key aspects of the political globalization is the declining importance of the nation-state and the rise of other actors on the political scene. William R. Thompson has defined it as "the expansion of a global political system, and its institutions, in which inter-regional transactions (including, but certainly not limited to trade) are managed". Political globalization is one of the three main dimensions of globalization commonly found in academic literature, with the two other being economic globalization and cultural globalization.

Intergovernmentalism is a term in political science with two meanings. The first refers to a theory of regional integration originally proposed by Stanley Hoffmann; the second treats states and the national government as the primary factors for integration. Multi-level governance is an approach in political science and public administration theory that originated from studies on European integration. Multi-level governance gives expression to the idea that there are many interacting authority structures at work in the emergent global political economy. It illuminates the intimate entanglement between the domestic and international levels of authority.

Some people are citizens of multiple nation-states. Multiple citizenship, also called dual citizenship or multiple nationality or dual nationality, is a person's citizenship status, in which a person is concurrently regarded as a citizen of more than one state under the laws of those states.

Increasingly, non-governmental organizations influence public policy across national boundaries, including humanitarian aid and developmental efforts. Philanthropic organizations with global missions are also coming to the forefront of humanitarian efforts; charities such as the Bill and Melinda Gates Foundation, Accion International, the Acumen Fund (now Acumen) and the Echoing Green have combined the business model with philanthropy, giving rise to business organizations such as the Global Philanthropy Group and new associations of philanthropists such as the Global Philanthropy Forum. The Bill and Melinda Gates Foundation projects include a current multibillion-dollar commitment to funding immunizations in some of the world's more impoverished but rapidly growing countries. The Hudson Institute estimates total private philanthropic flows to developing countries at US$ 59 billion in 2010.

As a response to globalization, some countries have embraced isolationist policies. For example, the North Korean government makes it very difficult for foreigners to enter the country and strictly monitors their activities when they do. Aid workers are subject to considerable scrutiny and excluded from places and regions the government does not wish them to enter. Citizens cannot freely leave the country.

Globalization and gender

Globalization has been a gendered process where giant multinational corporations have outsourced jobs to low-wage, low skilled, quota free economies like the ready made garment industry in Bangladesh where poor women make up the majority of labor force. Despite a large proportion of women workers in the garment industry, women are still heavily underemployed compared to men. Most women that are employed in the garment industry come from the countryside of Bangladesh triggering migration of women in search of garment work. It is still unclear as to whether or not access to paid work for women where it didn't exist before has empowered them. The answers varied depending on whether it is the employers perspective or the workers and how they view their choices. Women workers did not see the garment industry as economically sustainable for them in the long run due to long hours standing and poor working conditions. Although women workers did show significant autonomy over their personal lives including their ability to negotiate with family, more choice in marriage, and being valued as a wage earner in the family. This did not translate into workers being able to collectively organize themselves in order to negotiate a better deal for themselves at work.

Another example of outsourcing in manufacturing includes the maquiladora industry in Ciudad Juarez, Mexico where poor women make up the majority of the labor force. Women in the maquiladora industry have produced high levels of turnover not staying long enough to be trained compared to men. A gendered two tiered system within the maquiladora industry has been created that focuses on training and worker loyalty. Women are seen as being untrainable, placed in un-skilled, low wage jobs, while men are seen as more trainable with less turnover rates, and placed in more high skilled technical jobs. The idea of training has become a tool used against women to blame them for their high turnover rates which also benefit the industry keeping women as temporary workers.

Other dimensions

Scholars also occasionally discuss other, less common dimensions of globalization, such as environmental globalization (the internationally coordinated practices and regulations, often in the form of international treaties, regarding environmental protection) or military globalization (growth in global extent and scope of security relationships). Those dimensions, however, receive much less attention the three described above, as academic literature commonly subdivides globalization into three major areas: economic globalization, cultural globalization and political globalization.

Movement of people

Tourism is travel for pleasure. The developments in technology and transportation infrastructure, such as jumbo jets, low-cost airlines, and more accessible airports have made many types of tourism more affordable. At any given moment half a million people are in the air. International tourist arrivals surpassed the milestone of 1 billion tourists globally for the first time in 2012. A visa is a conditional authorization granted by a country to a foreigner, allowing them to enter and temporarily remain within, or to leave that country. Some countries - such as those in the Schengen Area - have agreements with other countries allowing each other's citizens to travel between them without visas (for example, Switzerland is part of a Schengen Agreement allowing easy travel for people from countries within the European Union). The World Tourism Organization announced that the number of tourists who require a visa before traveling was at its lowest level ever in 2015.

Immigration is the international movement of people into a destination country of which they are not natives or where they do not possess citizenship in order to settle or reside there, especially as permanent residents or naturalized citizens, or to take-up employment as a migrant worker or temporarily as a foreign worker. According to the International Labour Organization, as of 2014 there were an estimated 232 million international migrants in the world (defined as persons outside their country of origin for 12 months or more) and approximately half of them were estimated to be economically active (i.e. being employed or seeking employment). International movement of labor is often seen as important to economic development. For example, freedom of movement for workers in the European Union means that people can move freely between member states to live, work, study or retire in another country.

Globalization is associated with a dramatic rise in international education. The development of global cross-cultural competence in the workforce through ad-hoc training has deserved increasing attention in recent times. More and more students are seeking higher education in foreign countries and many international students now consider overseas study a stepping-stone to permanent residency within a country. The contributions that foreign students make to host nation economies, both culturally and financially has encouraged major players to implement further initiatives to facilitate the arrival and integration of overseas students, including substantial amendments to immigration and visa policies and procedures.

A transnational marriage is a marriage between two people from different countries. A variety of special issues arise in marriages between people from different countries, including those related to citizenship and culture, which add complexity and challenges to these kinds of relationships. In an age of increasing globalization, where a growing number of people have ties to networks of people and places across the globe, rather than to a current geographic location, people are increasingly marrying across national boundaries. Transnational marriage is a by-product of the movement and migration of people.

Movement of information

Before electronic communications, long-distance communications relied on mail. Speed of global communications was limited by the maximum speed of courier services (especially horses and ships) until the mid-19th century. The electric telegraph was the first method of instant long-distance communication. For example, before the first transatlantic cable, communications between Europe and the Americas took weeks because ships had to carry mail across the ocean. The first transatlantic cable reduced communication time considerably, allowing a message and a response in the same day. Lasting transatlantic telegraph connections were achieved in the 1865-1866. The first wireless telegraphy transmitters were developed in 1895.

The Internet has been instrumental in connecting people across geographical boundaries. For example, Facebook is a social networking service which has more than 1.65 billion monthly active users as of 31 March 2016.

Globalization and disease

Coronavirus disease 2019, abbreviated COVID-19, first appeared in Wuhan, China in November 2019. More than 180 countries have reported cases since then. As of April 6, 2020, the U.S. has the most confirmed active cases in the world. More than 3.4 million people from the worst-affected countries entered the U.S. in the first three months since the inception of the COVID-19 pandemic. This has caused a detrimental impact on the global economy, particularly for SME's and Microbusinesses with unlimited liability/self-employed, leaving them vulnerable to financial difficulties, increasing the market share for oligopolistic markets as well as increasing the barriers of entry.

Measurement

One index of globalization is the KOF Index of Globalization, which measures three important dimensions of globalization: economic, social, and political. Another is the A.T. Kearney / Foreign Policy Magazine Globalization Index.

Measurements of economic globalization typically focus on variables such as trade, Foreign Direct Investment (FDI), Gross Domestic Product (GDP), portfolio investment, and income. However, newer indices attempt to measure globalization in more general terms, including variables related to political, social, cultural, and even environmental aspects of globalization.

The DHL Global Connectedness Index studies four main types of cross-border flow: trade (in both goods and services), information, people (including tourists, students, and migrants), and capital. It shows that the depth of global integration fell by about one-tenth after 2008, but by 2013 had recovered well above its pre-crash peak. The report also found a shift of economic activity to emerging economies.

Support and criticism

Reactions to processes contributing to globalization have varied widely with a history as long as extraterritorial contact and trade. Philosophical differences regarding the costs and benefits of such processes give rise to a broad-range of ideologies and social movements. Proponents of economic growth, expansion and development, in general, view globalizing processes as desirable or necessary to the well-being of human society.

Antagonists view one or more globalizing processes as detrimental to social well-being on a global or local scale; this includes those who focus on social or natural sustainability of long-term and continuous economic expansion, the social structural inequality caused by these processes, and the colonial, imperialistic, or hegemonic ethnocentrism, cultural assimilation and cultural appropriation that underlie such processes.

Globalization tends to bring people into contact with foreign people and cultures. Xenophobia is the fear of that which is perceived to be foreign or strange. Xenophobia can manifest itself in many ways involving the relations and perceptions of an ingroup towards an outgroup, including a fear of losing identity, suspicion of its activities, aggression, and desire to eliminate its presence to secure a presumed purity.

Critiques of globalization generally stem from discussions surrounding the impact of such processes on the planet as well as the human costs. They challenge directly traditional metrics, such as GDP, and look to other measures, such as the Gini coefficient or the Happy Planet Index, and point to a "multitude of interconnected fatal consequences-social disintegration, a breakdown of democracy, more rapid and extensive deterioration of the environment, the spread of new diseases, increasing poverty and alienation" which they claim are the unintended consequences of globalization. Others point out that, while the forces of globalization have led to the spread of western-style democracy, this has been accompanied by an increase in inter-ethnic tension and violence as free market economic policies combine with democratic processes of universal suffrage as well as an escalation in militarization to impose democratic principles and as a means to conflict resolution.

On August 9, 2019, Pope Francis denounced isolationism and hinted that the Catholic Church will embrace globalization at the October 2019 Amazonia Synod, stating "the whole is greater than the parts. Globalization and unity should not be conceived as a sphere, but as a polyhedron: each people retains its identity in unity with others"

Public opinion

As a complex and multifaceted phenomenon, globalization is considered by some as a form of capitalist expansion which entails the integration of local and national economies into a global, unregulated market economy. A 2005 study by Peer Fis and Paul Hirsch found a large increase in articles negative towards globalization in the years prior. In 1998, negative articles outpaced positive articles by two to one. The number of newspaper articles showing negative framing rose from about 10% of the total in 1991 to 55% of the total in 1999. This increase occurred during a period when the total number of articles concerning globalization nearly doubled.

A number of international polls have shown that residents of Africa and Asia tend to view globalization more favorably than residents of Europe or North America. In Africa, a Gallup poll found that 70% of the population views globalization favorably. The BBC found that 50% of people believed that economic globalization was proceeding too rapidly, while 35% believed it was proceeding too slowly.

In 2004, Philip Gordon stated that "a clear majority of Europeans believe that globalization can enrich their lives, while believing the European Union can help them take advantage of globalization's benefits while shielding them from its negative effects." The main opposition consisted of socialists, environmental groups, and nationalists. Residents of the EU did not appear to feel threatened by globalization in 2004. The EU job market was more stable and workers were less likely to accept wage/benefit cuts. Social spending was much higher than in the US. In a Danish poll in 2007, 76% responded that globalization is a good thing.

Fiss, et al., surveyed US opinion in 1993. Their survey showed that, in 1993, more than 40% of respondents were unfamiliar with the concept of globalization. When the survey was repeated in 1998, 89% of the respondents had a polarized view of globalization as being either good or bad. At the same time, discourse on globalization, which began in the financial community before shifting to a heated debate between proponents and disenchanted students and workers. Polarization increased dramatically after the establishment of the WTO in 1995; this event and subsequent protests led to a large-scale anti-globalization movement. Initially, college educated workers were likely to support globalization. Less educated workers, who were more likely to compete with immigrants and workers in developing countries, tended to be opponents. The situation changed after the financial crisis of 2007. According to a 1997 poll 58% of college graduates said globalization had been good for the US. By 2008 only 33% thought it was good. Respondents with high school education also became more opposed.

According to Takenaka Heizo and Chida Ryokichi, as of 1998 there was a perception in Japan that the economy was "Small and Frail". However, Japan was resource-poor and used exports to pay for its raw materials. Anxiety over their position caused terms such as internationalization and globalization to enter everyday language. However, Japanese tradition was to be as self-sufficient as possible, particularly in agriculture.

Many in developing countries see globalization as a positive force that lifts them out of poverty. Those opposing globalization typically combine environmental concerns with nationalism. Opponents consider governments as agents of neo-colonialism that are subservient to multinational corporations. Much of this criticism comes from the middle class; the Brookings Institution suggested this was because the middle class perceived upwardly mobile low-income groups as threatening to their economic security.

The literature analyzing the economics of free trade is extremely rich with extensive work having been done on the theoretical and empirical effects. Though it creates winners and losers, the broad consensus among economists is that free trade is a large and unambiguous net gain for society. In a 2006 survey of 83 American economists, "87.5% agree that the U.S. should eliminate remaining tariffs and other barriers to trade" and "90.1% disagree with the suggestion that the U.S. should restrict employers from outsourcing work to foreign countries."

Quoting Harvard economics professor N. Gregory Mankiw, "Few propositions command as much consensus among professional economists as that open world trade increases economic growth and raises living standards." In a survey of leading economists, none disagreed with the notion that "freer trade improves productive efficiency and offers consumers better choices, and in the long run these gains are much larger than any effects on employment." Most economists would agree that although increasing returns to scale might mean that certain industry could settle in a geographical area without any strong economic reason derived from comparative advantage, this is not a reason to argue against free trade because the absolute level of output enjoyed by both "winner" and "loser" will increase with the "winner" gaining more than the "loser" but both gaining more than before in an absolute level.

In the book The End of Poverty, Jeffrey Sachs discusses how many factors can affect a country's ability to enter the world market, including government corruption; legal and social disparities based on gender, ethnicity, or caste; diseases such as AIDS and malaria; lack of infrastructure (including transportation, communications, health, and trade); unstable political landscapes; protectionism; and geographic barriers. Jagdish Bhagwati, a former adviser to the U.N. on globalization, holds that, although there are obvious problems with overly rapid development, globalization is a very positive force that lifts countries out of poverty by causing a virtuous economic cycle associated with faster economic growth. However, economic growth does not necessarily mean a reduction in poverty; in fact, the two can coexist. Economic growth is conventionally measured using indicators such as GDP and GNI that do not accurately reflect the growing disparities in wealth. Additionally, Oxfam International argues that poor people are often excluded from globalization-induced opportunities "by a lack of productive assets, weak infrastructure, poor education and ill-health;" effectively leaving these marginalized groups in a poverty trap. Economist Paul Krugman is another staunch supporter of globalization and free trade with a record of disagreeing with many critics of globalization. He argues that many of them lack a basic understanding of comparative advantage and its importance in today's world.

There has been a rapid economic growth in Asia after embracing market orientation-based economic policies that encourage private property rights, free enterprise and competition. In particular, in East Asian developing countries, GDP per head rose at 5.9% a year from 1975 to 2001 (according to 2003 Human Development Report of UNDP). Like this, the British economic journalist Martin Wolf says that incomes of poor developing countries, with more than half the world's population, grew substantially faster than those of the world's richest countries that remained relatively stable in its growth, leading to reduced international inequality and the incidence of poverty.

Certain demographic changes in the developing world after active economic liberalization and international integration resulted in rising general welfare and, hence, reduced inequality. According to Wolf, in the developing world as a whole, life expectancy rose by four months each year after 1970 and infant mortality rate declined from 107 per thousand in 1970 to 58 in 2000 due to improvements in standards of living and health conditions. Also, adult literacy in developing countries rose from 53% in 1970 to 74% in 1998 and much lower illiteracy rate among the young guarantees that rates will continue to fall as time passes. Furthermore, the reduction in fertility rate in the developing world as a whole from 4.1 births per woman in 1980 to 2.8 in 2000 indicates improved education level of women on fertility, and control of fewer children with more parental attention and investment. Consequently, more prosperous and educated parents with fewer children have chosen to withdraw their children from the labor force to give them opportunities to be educated at school improving the issue of child labor. Thus, despite seemingly unequal distribution of income within these developing countries, their economic growth and development have brought about improved standards of living and welfare for the population as a whole.

The globalization of the late 20th and early 21st centuries has led to the resurfacing of the idea that the growth of economic interdependence promotes peace. This idea had been very powerful during the globalization of the late 19th and early 20th centuries, and was a central doctrine of classical liberals of that era, such as the young John Maynard Keynes (1883-1946).

Some opponents of globalization see the phenomenon as a promotion of corporate interests. They also claim that the increasing autonomy and strength of corporate entities shapes the political policy of countries. They advocate global institutions and policies that they believe better address the moral claims of poor and working classes as well as environmental concerns. Economic arguments by fair trade theorists claim that unrestricted free trade benefits those with more financial leverage (i.e. the rich) at the expense of the poor.

Globalization allows corporations to outsource manufacturing and service jobs from high cost locations, creating economic opportunities with the most competitive wages and worker benefits. Critics of globalization say that it disadvantages poorer countries. While it is true that free trade encourages globalization among countries, some countries try to protect their domestic suppliers. The main export of poorer countries is usually agricultural productions. Larger countries often subsidize their farmers (e.g., the EU's Common Agricultural Policy), which lowers the market price for foreign crops.

Global democracy

Democratic globalization is a movement towards an institutional system of global democracy that would give world citizens a say in political organizations. This would, in their view, bypass nation-states, corporate oligopolies, ideological non-governmental organizations (NGO), political cults and mafias. One of its most prolific proponents is the British political thinker David Held. Advocates of democratic globalization argue that economic expansion and development should be the first phase of democratic globalization, which is to be followed by a phase of building global political institutions. Dr. Francesco Stipo, Director of the United States Association of the Club of Rome, advocates unifying nations under a world government, suggesting that it "should reflect the political and economic balances of world nations. A world confederation would not supersede the authority of the State governments but rather complement it, as both the States and the world authority would have power within their sphere of competence". Former Canadian Senator Douglas Roche, O.C., viewed globalization as inevitable and advocated creating institutions such as a directly elected United Nations Parliamentary Assembly to exercise oversight over unelected international bodies.

Global civics

Global civics suggests that civics can be understood, in a global sense, as a social contract between global citizens in the age of interdependence and interaction. The disseminators of the concept define it as the notion that we have certain rights and responsibilities towards each other by the mere fact of being human on Earth. World citizen has a variety of similar meanings, often referring to a person who disapproves of traditional geopolitical divisions derived from national citizenship. An early incarnation of this sentiment can be found in Socrates, whom Plutarch quoted as saying: "I am not an Athenian, or a Greek, but a citizen of the world." In an increasingly interdependent world, world citizens need a compass to frame their mindsets and create a shared consciousness and sense of global responsibility in world issues such as environmental problems and nuclear proliferation.

Baha'i-inspired author Meyjes, while favoring the single world community and emergent global consciousness, warns of globalization as a cloak for an expeditious economic, social, and cultural Anglo-dominance that is insufficiently inclusive to inform the emergence of an optimal world civilization. He proposes a process of " universalization" as an alternative.

Cosmopolitanism is the proposal that all human ethnic groups belong to a single community based on a shared morality. A person who adheres to the idea of cosmopolitanism in any of its forms is called a cosmopolitan or cosmopolite. A cosmopolitan community might be based on an inclusive morality, a shared economic relationship, or a political structure that encompasses different nations. The cosmopolitan community is one in which individuals from different places (e.g. nation-states) form relationships based on mutual respect. For instance, Kwame Anthony Appiah suggests the possibility of a cosmopolitan community in which individuals from varying locations (physical, economic, etc.) enter relationships of mutual respect despite their differing beliefs (religious, political, etc.).

Canadian philosopher Marshall McLuhan popularized the term Global Village beginning in 1962. His view suggested that globalization would lead to a world where people from all countries will become more integrated and aware of common interests and shared humanity.

International cooperation

Military cooperation - Past examples of international cooperation exist. One example is the security cooperation between the United States and the former Soviet Union after the end of the Cold War, which astonished international society. Arms control and disarmament agreements, including the Strategic Arms Reduction Treaty (see START I, START II, START III, and New START) and the establishment of NATO's Partnership for Peace, the Russia NATO Council, and the G8 Global Partnership against the Spread of Weapons and Materials of Mass Destruction, constitute concrete initiatives of arms control and de-nuclearization. The US-Russian cooperation was further strengthened by anti-terrorism agreements enacted in the wake of 9/11.

Environmental cooperation - One of the biggest successes of environmental cooperation has been the agreement to reduce chlorofluorocarbon (CFC) emissions, as specified in the Montreal Protocol, in order to stop ozone depletion. The most recent debate around nuclear energy and the non-alternative coal-burning power plants constitutes one more consensus on what not to do. Thirdly, significant achievements in IC can be observed through development studies.

Economic cooperation - One of the biggest challenges in 2019 with globalization is that many believe the progress made in the past decades are now back tracking. The back tracking of globalization has coined the term "Slobalization." Slobalization is a new, slower pattern of globalization.

Anti-globalization movement

Anti-globalization, or counter-globalization, consists of a number of criticisms of globalization but, in general, is critical of the globalization of corporate capitalism. The movement is also commonly referred to as the alter-globalization movement, anti-globalist movement, anti-corporate globalization movement, or movement against neoliberal globalization. Opponents of globalization argue that power and respect in terms of international trade between the developed and underdeveloped countries of the world are unequally distributed. The diverse subgroups that make up this movement include some of the following: trade unionists, environmentalists, anarchists, land rights and indigenous rights activists, organizations promoting human rights and sustainable development, opponents of privatization, and anti-sweatshop campaigners.

In The Revolt of the Elites and the Betrayal of Democracy, Christopher Lasch analyzes the widening gap between the top and bottom of the social composition in the United States. For him, our epoch is determined by a social phenomenon: the revolt of the elites, in reference to The Revolt of the Masses (1929) by the Spanish philosopher José Ortega y Gasset. According to Lasch, the new elites, i.e. those who are in the top 20% in terms of income, through globalization which allows total mobility of capital, no longer live in the same world as their fellow-citizens. In this, they oppose the old bourgeoisie of the nineteenth and twentieth centuries, which was constrained by its spatial stability to a minimum of rooting and civic obligations. Globalization, according to the sociologist, has turned elites into tourists in their own countries. The denationalization of business enterprise tends to produce a class who see themselves as "world citizens, but without accepting ... any of the obligations that citizenship in a polity normally implies". Their ties to an international culture of work, leisure, information - make many of them deeply indifferent to the prospect of national decline. Instead of financing public services and the public treasury, new elites are investing their money in improving their voluntary ghettos: private schools in their residential neighborhoods, private police, garbage collection systems. They have "withdrawn from common life". Composed of those who control the international flows of capital and information, who preside over philanthropic foundations and institutions of higher education, manage the instruments of cultural production and thus fix the terms of public debate. So, the political debate is limited mainly to the dominant classes and political ideologies lose all contact with the concerns of the ordinary citizen. The result of this is that no one has a likely solution to these problems and that there are furious ideological battles on related issues. However, they remain protected from the problems affecting the working classes: the decline of industrial activity, the resulting loss of employment, the decline of the middle class, increasing the number of the poor, the rising crime rate, growing drug trafficking, the urban crisis.

D.A. Snow et al. contend that the anti-globalization movement is an example of a new social movement, which uses tactics that are unique and use different resources than previously used before in other social movements.

Opposition to capital market integration

Those opposed to capital market integration on the basis of human rights issues are especially disturbed[according to whom? ] by the various abuses which they think are perpetuated by global and international institutions that, they say, promote neoliberalism without regard to ethical standards. Common targets include the World Bank (WB), International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD) and the World Trade Organization (WTO) and free trade treaties like the North American Free Trade Agreement (NAFTA), Free Trade Area of the Americas (FTAA), the Multilateral Agreement on Investment (MAI) and the General Agreement on Trade in Services (GATS). In light of the economic gap between rich and poor countries, movement adherents claim free trade without measures in place to protect the under-capitalized will contribute only to the strengthening the power of industrialized nations (often termed the "North" in opposition to the developing world's "South").[better source needed ]

Anti-corporatism and anti-consumerism

Corporatist ideology, which privileges the rights of corporations ( artificial or juridical persons) over those of natural persons, is an underlying factor in the recent rapid expansion of global commerce. In recent years, there have been an increasing number of books ( Naomi Klein's 2000 , for example) and films ( e.g. The Corporation & ) popularizing an anti-corporate ideology to the public.

A related contemporary ideology, consumerism, which encourages the personal acquisition of goods and services, also drives globalization. Anti-consumerism is a social movement against equating personal happiness with consumption and the purchase of material possessions. Concern over the treatment of consumers by large corporations has spawned substantial activism, and the incorporation of consumer education into school curricula. Social activists hold materialism is connected to global retail merchandizing and supplier convergence, war, greed, anomie, crime, environmental degradation, and general social malaise and discontent. One variation on this topic is activism by postconsumers, with the strategic emphasis on moving beyond addictive consumerism.

Global justice and inequality

Global justice

The global justice movement is the loose collection of individuals and groups-often referred to as a " movement of movements"-who advocate fair trade rules and perceive current institutions of global economic integration as problems. The movement is often labeled an anti-globalization movement by the mainstream media. Those involved, however, frequently deny that they are anti-globalization, insisting that they support the globalization of communication and people and oppose only the global expansion of corporate power. The movement is based in the idea of social justice, desiring the creation of a society or institution based on the principles of equality and solidarity, the values of human rights, and the dignity of every human being. Social inequality within and between nations, including a growing global digital divide, is a focal point of the movement. Many nongovernmental organizations have now arisen to fight these inequalities that many in Latin America, Africa and Asia face. A few very popular and well known non-governmental organizations (NGOs) include: War Child, Red Cross, Free The Children and CARE International. They often create partnerships where they work towards improving the lives of those who live in developing countries by building schools, fixing infrastructure, cleaning water supplies, purchasing equipment and supplies for hospitals, and other aid efforts.

Social inequality

The economies of the world have developed unevenly, historically, such that entire geographical regions were left mired in poverty and disease while others began to reduce poverty and disease on a wholesale basis. From around 1980 through at least 2011, the GDP gap, while still wide, appeared to be closing and, in some more rapidly developing countries, life expectancies began to rise. If we look at the Gini coefficient for world income, since the late 1980s, the gap between some regions has markedly narrowed-between Asia and the advanced economies of the West, for example-but huge gaps remain globally. Overall equality across humanity, considered as individuals, has improved very little. Within the decade between 2003 and 2013, income inequality grew even in traditionally egalitarian countries like Germany, Sweden and Denmark. With a few exceptions-France, Japan, Spain-the top 10 percent of earners in most advanced economies raced ahead, while the bottom 10 percent fell further behind. By 2013, 85 multibillionaires had amassed wealth equivalent to all the wealth owned by the poorest half (3.5 billion) of the world's total population of 7 billion.

Critics of globalization argue that globalization results in weak labor unions: the surplus in cheap labor coupled with an ever-growing number of companies in transition weakened labor unions in high-cost areas. Unions become less effective and workers their enthusiasm for unions when membership begins to decline. They also cite an increase in the exploitation of child labor: countries with weak protections for children are vulnerable to infestation by rogue companies and criminal gangs who exploit them. Examples include quarrying, salvage, and farm work as well as trafficking, bondage, forced labor, prostitution and pornography.

Women often participate in the workforce in precarious work, including export-oriented employment. Evidence suggests that while globalization has expanded women's access to employment, the long-term goal of transforming gender inequalities remains unmet and appears unattainable without regulation of capital and a reorientation and expansion of the state's role in funding public goods and providing a social safety net. Furthermore, the intersectionality of gender, race, class, and more remain overlooked when assessing the impact of globalization.

Anti-global governance

Beginning in the 1930s, opposition arose to the idea of a world government, as advocated by organizations such as the World Federalist Movement (WFM). Those who oppose global governance typically do so on objections that the idea is unfeasible, inevitably oppressive, or simply unnecessary. In general, these opponents are wary of the concentration of power or wealth that such governance might represent. Such reasoning dates back to the founding of the League of Nations and, later, the United Nations.

Environmentalist opposition

Environmentalism is a broad philosophy, ideology and social movement regarding concerns for environmental conservation and improvement of the health of the environment. Environmentalist concerns with globalization include issues such as global warming, global water supply and water crises, inequity in energy consumption and energy conservation, transnational air pollution and pollution of the world ocean, overpopulation, world habitat sustainability, deforestation, biodiversity loss and species extinction.

Helena Norberg-Hodge, the director and founder of Local Futures/ International Society for Ecology and Culture, criticizes globalization in many ways. In her book Ancient Futures, Norberg-Hodge claims that "centuries of ecological balance and social harmony are under threat from the pressures of development and globalization." She also criticizes the standardization and rationalization of globalization, as it does not always yield the expected growth outcomes. Although globalization takes similar steps in most countries, scholars such as Hodge claim that it might not be effective to certain countries and that globalization has actually moved some countries backward instead of developing them.

A related area of concern is the pollution haven hypothesis, which posits that, when large industrialized nations seek to set up factories or offices abroad, they will often look for the cheapest option in terms of resources and labor that offers the land and material access they require (see Race to the bottom). This often comes at the cost of environmentally sound practices. Developing countries with cheap resources and labor tend to have less stringent environmental regulations, and conversely, nations with stricter environmental regulations become more expensive for companies as a result of the costs associated with meeting these standards. Thus, companies that choose to physically invest in foreign countries tend to (re)locate to the countries with the lowest environmental standards or weakest enforcement.

The European Union-Mercosur Free Trade Agreement, which would form one of the world's largest free trade areas, has been denounced by environmental activists and indigenous rights campaigners. The fear is that the deal could lead to more deforestation of the Amazon rainforest as it expands market access to Brazilian beef.

Food security

Globalization is associated with a more efficient system of food production. This is because crops are grown in countries with optimum growing conditions. This improvement causes an increase in the world's food supply which encourages improved food security. The political movement 'BREXIT' was considered a step back in globalisation, it has greatly disrupted food chains within the UK as they import 26% of food produce from the EU.

Norway's limited crop range advocates globalization of food production and availability. The northernmost country in Europe requires trade with other countries to ensure population food demands are met. The degree of self-sufficiency in food production is around 50% in Norway.

References

Further reading

Ampuja, Marko. Theorizing Globalization: A Critique of the Mediatization of Social Theory (Brill, 2012)

Conner, Tom, and Ikuko Torimoto, eds. Globalization Redux: New Name, Same Game (University Press of America, 2004).

Eriksen, Thomas Hylland. "Globalization." in Handbook of Political Anthropology (Edward Elgar Publishing, 2018).

Frey, James W. "The Global Moment: The Emergence of Globality, 1866-1867, and the Origins of Nineteenth-Century Globalization." The Historian 81.1 (2019): 9. online, focus on trade and Suez Canal

Gunder Frank, Andre, and Robert A. Denemark. ReOrienting the 19th Century: Global Economy in the Continuing Asian Age (Paradigm Publishers, 2013);

Hopkins, A.G., ed. Globalization in World History (Norton, 2003).

Lechner, Frank J., and John Boli, eds. The Globalization Reader (4th ed. Wiley-Blackwell, 2012).

Leibler, Anat. "The Emergence of a Global Economic Order: From Scientific Internationalism to Infrastructural Globalism." in Science, Numbers and Politics (Palgrave Macmillan, Cham, 2019) pp. 121-145 online.

Mir, Salam. "Colonialism, Postcolonialism, Globalization, and Arab Culture." Arab Studies Quarterly 41.1 (2019): 33-58. online

Pfister, Ulrich (2012), Globalization, EGO - European History Online, Mainz: Institute of European History, retrieved: March 25, 2021 (pdf).

Pieterse, Jan Nederveen. Globalization and culture: Global mélange (Rowman & Littlefield, 2019).

Rosenberg, Justin. "Globalization Theory: A Post Mortem," International Politics 42:1 (2005), 2-74.

Steger, Manfred B. Globalization: A Very Short Introduction (4th ed. Oxford University Press, 2017)

Van Der Bly, Martha C.E. "Globalization: A Triumph of Ambiguity," Current Sociology 53:6 (November 2005), 875-893

Wallerstein, Immanuel. "Globalization or the Age of Transition? A Long-Term View of the Trajectory of the World System," International Sociology 15:2 (June 2000), 251-267.

External links

# data[].attributes.attachment_link.description
Globalization, or globalisation ( Commonwealth English; see spelling differences), is the process of interaction and integration among people, companies, and governments worldwide. Globalization has accelerated since the 18th century due to advances in transportation and communication technology. This increase in global interactions has caused a growth in international trade and the exchange of ideas, beliefs, and culture.