Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Economic Globalization

Economic Globalization by Nauman Khan

  • Login to see the comments

Economic Globalization

  1. 1. Economic Globalization By: Nauman Khan Assigned by: Sir, Ramazan Azhar
  2. 2. Globalization: Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. The term “Global Village” by McLuhan. ( Globalization is the product of Society being increasingly ‘Mediate’). Bauman sees ‘Winners and Losers’ in the process, reminding us of the crucial fact that more people are excluded from the Global Village than are included. (Less than 20% people have access to Internet) “Global Digital Divide”.
  3. 3. Globalization: Globalization is dynamic process by which nations and economies around the world become more interdependent. Globalization is not strictly an economic phenomenon: Social, cultural, and political convergence, such as the formation of international institutions (i.e., the World Bank or United Nations), has played an important role in fostering global interdependence. Economic globalization is not an entirely new phenomenon; but with the developments in information and communication technology (ICT) have increased the speed of globalization in the latter part of the 20th century.
  4. 4. Role of ICTs in Globalization: Electronic Colonialism Theory: by Tom McPhail. “Explains how Mass Media are leading to new concept of Empire (Empire of the Mind). It focuses on the global media influence on how people think and act.” World System Theory: Immanuel Wallerstein. A macro-sociological theory that seeks to explain the dynamics of the “Capitalist world economy” as a “total social system”. This theory states that global economic expansion takes place from a relatively small group of core-zone nation-states out to two other zones of nation-states, these being in the semi-peripheral and peripheral zones.
  5. 5. Economic Globalization: Economic Globalization, the term, first proposed by Levy 1985. The trans-national Increase in trade and capital transfer across national boundaries. The word “trans-national” and the phrase “across national boundaries” also need explanation. The world has always known international trade, but what makes economic globalization different is that nations are coming to play a smaller and weaker role in it. Modern trans-national corporations have offices and production facilities in a dozen countries and swear allegiance to none of them.
  6. 6. Economic Globalization: Modern Multinational corporations are increasingly “stateless,” as they answer to no one, and have economies larger and more powerful than many of the countries that host them. They make their own international trade policy, intervene in national policy, and use campaign contributions to sway the votes of politicians. These corporations are undemocratic, secret societies, and apparently prefer to do business in undemocratic countries.
  7. 7. Forms of Economy Protectionism VS Trade Liberation. Protectionism: Protecting one’s economy from foreign competition by creating trade barrier;  High custom duty,  Limit import products,  Ban import product. Trade Liberation (Free Trade); reducing trade barriers for easy global trade.
  8. 8. Institutions of Economic Globalization: Bretten Woods Conference/Agreement: During WWII, 44 allied countries met to talk about the aftermath of the economy after the war. Established a set rules, including new ideas for the global economy. Some institutions have been originated after this conference: IMF, World bank, World Trade Organization. NIEO (New International Economic Order) NWICO (New World Information and Communication Order).
  9. 9. Institutions of Economic Globalization: OECD (Organization for Economic Cooperation and Development); attempts to forecast macroeconomic developments on behalf of the 30 member countries, which produce two-thirds of the world’s goods and services. In a way, OECD is a think-tank for core and some semi peripheral nations. It provides them with expert advice on how to further frame and expand international trade rules so that the cooperation among member nations as well as others increases and creates a stable and expanding global economy.
  10. 10. Advantage and Disadvantages of Economic Globalization. Advantages • Free trade • Cheap Production. • Economic Growth • Increased the standard of life. • Access to new and efficient market. • Increased Competition Disadvantages • Harmful effects on small Industries and Small Business. • Global Warming. • Underpayment of Workers in Developing Countries. • Encourages dependence on other countries.