NANO-ck

Mise-à-jour le 25 March 2024, 3 minutes de lecture

4. Introduction to glablization

Key questions :

• What are the global flows and why did they accelerate ?
• How and why has globalisation changed ?
• The impact of global flows on Power

Globalization implies

• Increased mobility and integration of goods, services, labor, technology, and capital throughout the world
• TIme space convergence
• A reduction of the friction of distance
• Intensification of consciousness of the world as a whole

Definition of Globalization The process of creating networks of connections among actors at multi-continental distances, mediated through a variety of flows incluting :

• People, migration, tourism
• Information and ideas
• Capital
• Goods and services

Factors

• Improved transport (faster, cheaper, more accessible)
• Containerisation (standard size, shipping, rail and road transfer easier and cheaper)
  • High speed trains
  • Mixing transport methods allows goods to be transported cheaper and faster
• Improved technology (internet, mobile phones, information accessability)
• Improved mobility of capital
• Reduction in trade barriers, tarrifs
• Regional economic blocks
  • Ex : European Union
• Multi National companies increase
  • TNCs that have their headquarter in a country, and production in another
• Increased mobility of labour

Flows of people

Click here

Get data from website : Our World in Data

Capital Flows

• Foreign DIrect Investment (FDI)
• Remittances (Flows of money from foreign workers back to their home country)
• Aid and debt repayment

Limitations and Barriers

Factors which lead to slowing globalization

• Financial Crisis 2008. Showed fragility and Risk in global system
• Trade wars (Eg USA China)
• Pandemic. Risks to supply chain
• War. Ukraine. Sanctions.
• Security risks. Fraud, hacking, malware
• Environment. Climate change
• Rising nationalism
• Demographics. Ageing populations

Main actors in globalisation

• Muti national companies and Trans-National Companies
• MNOs
  • Ex : EU, OPEC, G20
• Financial institutions:
  • World bank, International Monetary Fund (IMF
• World Trade Organisation (WTO)
• Non Government Organizations (NGOs)
  • Civil Society
  • Ex: WWF

Impacts of globalisation

Measuring Globalisation

KOF Index of Globalisation

• The most globalised countries are European countries because they are small

Globalisation and Power

• Hard power / Sharp power
  • Manipulation
• Military action or threat
• Economic sanctions
• Trade and aid policy
• Soft power
• Cultural influence
• International decision maling and leadership
• Moral and ethical authority
• Smart power ?
  • Combination of hard power and soft power
• Superpower. Which criteria define a superpower ?

USA

• 5% of the worlds population but 33% of personal wealth
• 25% of global 500 companies
• Influence in MNOs
  • Eg : All World Bank Presidents have been US citizens
• Americanisation of culture
• Intervention in the affairs of 50 states since 1945 ?

China

• Since 1978, Deng Xiaoping, “Open door” reforms.
  • Half a billion people escaped poverty
• Worlds largest economy
• FDI from China and its TNCs
• Predicted to total 1.25 Trillion dollars from 2015 - 2025
• Belt and Road initiative. Global infrastructure project since 2013
• Less cultural power ?