Characteristics of globalisation PDF

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Characteristics of globalisation Greater trade in goods and services both between nations and within regions An increase in transfers of capital including the expansion of foreign direct investment (FDI) by trans-national companies (TNCs) and the rising influence of sovereign wealth funds The development of global brands that serve markets in higher and lower income countries Spatial division of labour– for example out-sourcing and off shoring of production and support services as production supply-chains has become more international. As an example, the iPhone is part of a complicated global supply chain. The product was conceived and designed in Silicon Valley; the software was enhanced by software engineers working in India. Most iPhones are assembled / manufactured in China and Taiwan by TNCs such as FoxConn High levels of labour migration within and between countries New nations joining the world trading system. China and India joined the WTO in 1991, Russia joined the WTO in 2012 A fast changing shift in the balance of economic and financial power from developed to emerging economies and markets – i.e. a change in the centre of gravity in the world economy Increasing spending on investment, innovation and infrastructure across large parts of the world Globalisation is a process of making the world economy more inter-dependent Many of the industrializing countries are winning a rising share of world trade and their economies are growing faster than in richer developed nations especially after the global financial crisis (GFC)

1. -Liberalisation: The freedom of the industrialist/businessman to establish industry, trade or commerce either in his country or abroad; free exchange of capital, goods, service and technologies between countries; 2. Free Trade: Free trade between countries; absence of excessive governmental control over trade; 3. Globalization of Economic Activities: Control of economic activities by domestic market and international market; coordination of national economy and world economy; 4. Connectivity: Localities being connected with the world by breaking national boundaries; forging of links between one society and another, and between one country and another through international transmission of knowledge, literature, technology, culture and information. -A Top-Down process: Globalization originates from developed countries and the MNCs (multinational corporations) based in them. Technologies, capital, products and services come from them to developing countries. It is for developing countries to accept these things, adapt themselves to them and to be influenced by them. As a result, the values and norms of developed countries are gradually rooted in developing countries. This leads to the growth of a monoculture - the culture of the north (developed countries) being imposed on the South (developing countries). This involves the erosion and loss of the identity and the cultures of developing countries. Globalization is thus a one-way traffic: it flows from the North to the South.

But this view of globalization has been contested. Some scholars have argued that globalization tends to provoke backlash at the community, local, regional and ethnic levels when the national government fails to resist or counter the invasion of globalization. In the face of aggression of globalization, the people, in protest against the failure of the national government to defend them, develop or strengthen their allegiance to their community, locality, region or ethnic group. In this process, local identity, regional identity and ethnic identity take root and get strengthened. Thus globalization goes hand in hand with localization, regionalization and multiculturalism. ....