Globalization is a complex phenomenon with arguments on both sides. Proponents argue that globalization leads to more efficient use of resources and economic growth that benefits all involved. However, critics argue that globalization threatens jobs and wages as companies outsource work overseas, and that it could undermine national sovereignty as corporations gain more power. Overall, there are reasonable perspectives on both sides of this complex issue with reasonable arguments that globalization may have both benefits and drawbacks.

1. Globalizati
on
International Marketing 4th assignment
Globalization
By:
Mohamed Khalifa Ibrahim
ESLSCA – MBA – 28 May 2011

2. What is globalization?
• Is it the integration of economic, political, and cultural systems
across the globe?
• Or is it Americanization of world culture and United States
dominance of world affairs?
Or perhaps, the "McDonaldization," of the world
• Is globalization a force for economic growth, prosperity, and
democratic freedom?
• Or is it a force for environmental devastation, exploitation of
the developing world, and suppression of human rights?

3. Which is the real world?

4. Definition
Definitions are categorized to three main frames
1. The positive frame points to the potential gains and
benefits of globalization.
2. The neutral frame portrays globalization as a natural,
evolutionary, and largely inevitable development. This
discourse, which is associated with the financial
community, avoids making moral judgments.
3. The negative frame points out the increasing potential for
economic crisis, the threat to the livelihoods of workers,
and the growing income inequality caused by
globalization. This frame also includes discourse which is
primarily concerned with the negative impact of
globalization in the third World.

5. Definition
" Globalization is a widely-used term that can be defined in a number of different
ways, but when used in an economic context, it refers to the reduction and
removal of barriers between national borders in order to facilitate the flow of
goods, capital, services and labor.
United Nations Economic and Social Commission for Western Asia “ESCWA”
“Globalization refers to the growing economic interdependence of countries
worldwide through the increasing volume and variety of cross border transactions
in goods and services and of international capital flows, and also through the
more rapid and widespread diffusion of technology.”
International Monetary Fund
Globalization is the acceleration and intensification of interaction and integration
among the people, companies, and governments of different nations.
The American Forum for Global Education
“Globalization is a process that encompasses the causes, course, and
consequences of transnational and transcultural integration of human and non-
human activities.”
Geneva Centre for Security Policy

6. Definition
“Globalization can be defined as a set of economic, social, technological, political
and cultural structures and processes arising from the changing character of the
production, consumption and trade of goods and assets that comprise the base of
the international political economy.”
United Nations Educational, Scientific and Cultural Organization (UNESCO)
“Globalization – the growing integration of economies and societies around the
world.”
The World Bank Group
“Globalization refers above all to a dynamic and multidimensional process of
economic integration whereby national resources become more and more
internationally mobile while national economies become increasingly
interdependent.”
The Organization for Economic Co-operation and Development (OECD)

7. Definition
“The inexorable integration of markets, nation-states and
technologies to a degree never witnessed before - in a way
that is enabling individuals, corporations and nation-states to
reach around the world farther, faster, deeper and cheaper
than ever before, and in a way that is also producing a
powerful backlash from those brutalized or left behind by this
new system… Globalization means the spread of free-market
capitalism to virtually every country in the world.”
Thomas Friedman,
The Lexus and the Olive Tree

8. Globalization encompasses
• Internationalization (trade & investment)
• Liberalization (freeing markets)
• Universalization (cultural interchange)
• Westernization (Western cultural dominance)
Sources of Globalization
• Internationalization of Economic Activity (Trade & Finance)
• Global Liberalization (Domestic and International )
• Technological Changes (IT Revolution in speed and Cost)
• Improvements in Transportation (Containerized Shipping)
• Globalized Production Structures (Stateless Corporations)
Pro
Anti groups are globalization
Globalization Globalization
1 2 is relentless 3 fighting 4 has facts to
is inevitable physically only back up that it
is a good thing.

9. Effect of Globalization
• Industrial – emergence of worldwide production markets and broader access
to a range of foreign products for consumers and companies. Particularly
movement of material and goods between and within national boundaries.
International trade in manufactured goods has increased more than 100 times
(from $95 billion to $12 trillion) since 1955. China's trade with Africa rose
sevenfold during 2000–07 alone.
• Financial – emergence of worldwide financial markets and better access to
external financing for borrowers. By the early part of the 21st century more
than $1.5 trillion in national currencies were traded daily to support the
expanded levels of trade and investment.
• Economic – realization of a global common market, based on the freedom of
exchange of goods and capital.
• Job Market – competition in a global job market. In the past, the economic
fate of workers was tied to the fate of national economies. With the advent of
the information age and improvements in communication, this is no longer
the case.

10. Effect of Globalization
Political – some use "globalization" to mean the creation of a world government
which regulates the relationships among governments and guarantees the rights
arising from social and economic globalization. Politically, the United States has
enjoyed a position of power among the world powers, in part because of its
strong and wealthy economy.
Cultural – growth of cross-cultural contacts; advent of new categories of
consciousness and identities which embodies cultural diffusion, the desire to
increase one's standard of living and enjoy foreign products and ideas, adopt
new technology and practices, and participate in a "world culture".
Social – development of the system of non-governmental organizations as main
agents of global public policy, including humanitarian aid and developmental
efforts.

11. Effect of Globalization
Technical - Development of a Global Information System, global
telecommunications infrastructure and greater trans-border data flow, using such
technologies as the Internet, communication satellites, submarine fiber optic
cable, and wireless telephones. Increase in the number of standards applied
globally; e.g., copyright laws, patents and world trade agreements.
Legal/Ethical - The creation of the international criminal court and international
justice movements. Crime importation and raising awareness of global crime-
fighting efforts and cooperation. The emergence of Global administrative law.
Religious - The spread and increased interrelations of various religious groups,
ideas, and practices and their ideas of the meanings and values of particular
spaces and the anti-islam movements in the west.

12. Pro-globalization
Theories suggest that globalization leads to efficient use of
resources and benefits all who are involved.
According to libertarians, globalization will help the whole world
to deal with crises like unemployment and poverty. It will help us
to raise the global economy only when the involved power blocks
have mutual trust and respect for each other’s opinion.
Globalization and democracy should go hand in hand. It should
be pure business with no colonialist designs. The way we have
developed in the last 10 years, globalization seems to have given
us good returns.
Globalization has made the life of the third world citizen
completely a different story. There are so many foreign
companies that have made way to Orient and have made India
a brand name all over the world.

13. Pro-globalization
The pros of Globalization are many and they are as follows:
 Now there is a worldwide market for the companies and for the
people there is more access to products of different countries.
 There is a steady cash flow into the developing countries, which
gradually decrease the dollar difference.
 Due to the presence of a worldwide market, there is an
increase in the production sector and there are lots of options
for the companies now.
 Gradually there is a world power that is being created instead
of compartmentalized power sectors. Politics is merging and
decisions that are being taken, are actually beneficial for
people allover the world.
 There is more influx of information between two countries, which
do not have anything in common between them.

14. Pro-globalization
 There is cultural intermingling and each other is trying to know
about the other’s cultural preferences and in the process of
doing so, we are actually coming across things that we like and
in the course of time adopt it.
 Since we share financial interests, corporate and governments
are trying to sort out ecological problems for each other.
 Socially we have become more open and tolerant towards
each other and they who live in the other part of the world are
not aliens as we always thought. There are examples like now
Indian girls work in call centers and work nights, which was a
taboo even two years back. We are celebrating Valentine’s
Day, watching the Idol series, Fear factor, the Indian version Big
Brother.
 There is a lot of technological development that we have
undergone over the years. There are fewer brain drains since
Asians are working in their own country though for a foreign
company but are earning foreign exchange for their country.

15. Anti- Globalization
 There are cons which are as follows:
 It is true that Europeans are losing jobs and that is posing a
problem for them since the companies are outsourcing work to
the Asian countries since the cost of labor is low and profits the
company considerably.
 There is immense pressure on the employed Europeans who are
always under the threat of the business being outsourced.
 Corporates are building up units in other countries equally well
equipped as they have done at their own country, thus
transferring the quality to other countries.
 There are some experts who think that globalization; along with
the positive aspects is also leading to the incursion of negatives
like communicable diseases and social degeneration.

16. Anti- Globalization
 There is also a threat of corporates ruling the world because
there is a lot of power, which is invested in them due to
globalization.
 For nations that are at the receiver’s end are also giving up the
reins in the ends of a foreign company which might again lead
to a sophisticated form of colonization.
 Millions of others fear losing their jobs, especially at those
companies operating under competitive pressure.
 Workers face pay-cut demands from employers, which often
threaten to export jobs.
 Service and white-collar jobs are increasingly vulnerable to
operations moving offshore.
 U.S. employees can lose their comparative advantage when
companies build advanced factories in low-wage countries,
making them as productive as those at home.

17. Thank you