Globalization

=**What it is Globalization**=



Effects of Globolization! ahahahha

toc Prior to 1970s and 80s large companies and corporations operated nationally, even if their business interests were located internationally. These corporations also operated quite independently of each other. Twenty years later large corporations started to integrate their common operations, establishing central management and cross-functional teams to manage the firm. Globalization is a term used to explain this phenomenon. Globalization refers to an extension beyond national borders of the same market forces that have operated for centuries at all levels of human economic activity—village markets, urban industries, or financial centers (IMF, 2002). Developing strategy in competing internationally instead of nationally requires attention to differences, such as:
 * labour cost differences
 * different market conditions and segments
 * attitudes of foreign governments
 * different goals and resources
 * differences in the ability to monitor and keep track of competitors

Globalization Defined

 * A blanket term to describe social, political, economic, and cultural process that are affecting the planet
 * The intensification of world wide social relationships linking distant places so local events are shaped by far away events

=**Four aspects of globalization:**=

· **Trade**: Developing countries as a whole have increased their share of world trade–from 19 percent in 1971 to 29 percent in 1999. Trade between countries has become easier with the creation of pacts such as NAFTA etc. · **Capital movements**: with the advent of globalization there has been a sharp increase in capital flows across borders and direct foreign investment has become a very significant category of financial flows. · **Movement of people**: Workers have migrated from one country to another for better life, education and employment opportunities. · **Spread of knowledge (and technology)**: Information/knowledge exchange is a vital aspect of globalization. With the advent of information technology it is easier than ever to send and receive data and information across borders. It has allowed for mass communication, which is fast, easy cheap and reliable.

=Features of Globalization=


 * Increase speed of movement by travel and increase movement of people across planet
 * Volume of goods, capital, images, and messages in circulation has massively increased
 * New communication technologies strech social relations across vast distances
 * Mode interconnectedness, interdependence and interactivity of new order of intensity

**Cultural Imperialism Americanization**
In the early days of Globalization the fear over the Western domination was known as Cultural imperialism. It was argued by scholars such as Herbert Schiller that the dominant western corporations were responsible for changing and eroding culture around the world. Cultural imperialism was said to distribute unequal flow of media forms such as film, Television, and news. To fight cultural imperialism many nations such as Brazil and Taiwan have forced broadcasters to produce more domestic programming and less imports (Straubhaar and LaRose, 2002).

Americanization**Since the majority of these large media corporations originate form US some scholars refer to this trend as Americanization. In that case, US produces and distributes content. Roughly 35% of the world economy is made by US and the most profitable mass media firm AT&T is based in the US (variety and broadcasting and cable, 200). While US media firms have a great impact in transferring information some argue that US media companies promote nothing but Hollywood values. Resistance to Americanization in order to maintain national culture and identity has become a key challenged for many nations specifically in third world countries like Africa and Latin America.

**Ownership**
It is worth observing the chart below which demonstrates the dominant top six media firms (Shade, 2002). Four out of the six (67%) firms are American and two third or 33% are European.

Note: * indicates American firms
 * [|Disney]……….$24.0 billion*
 * [|Bertelsmann AG]….$15.0 billion
 * [|AOL Time Warner]……….$34 billion*
 * [|Vivendi Universal]…………$23.0 billion
 * [|Viacom]…………………….$20.0 billion*
 * [|News Corp]…………………..$ 14.0 billion *

**Trends of Globalization**
In order for these firms to satisfy and attract their global audience they use different strategies and trends to achieve that.


 * Assimilation** occurs when traits in individual culture which are not associated with the mass-culture traits of the individual's resident nation are removed or subdued in favour of mass-culture traits.
 * Hybridization** is when the local and original culture gets blended. For example in order to attract the global audience Madonna sings in numerous languages. She also re-creates her image based on Asian and Spanish culture. A major proponent of this theory is the scholar Arjun Appadurai, who advocates an overall heterogeneity of cultures, and the creation of new ones, due to various cultures multiple "-scapes" coming into conflict with one another. Hybridization is associated with the theory of "glocalization", a process by which the "local" culture and artifacts are integrated into the "global". An example of this can be seen in museums where the local culture is prepared and exhibited for the mass consumption of foreign tourists.

Media firms tend to include all nations and their culture and values. However, the distribution and flow of information is unbalanced and excludes poor nations as well as minorities.

=Globalization Now=


 * Developmemt of global cities
 * Revolution in transport and information- global, cosmopolitan system of culture co-existing with local cultures
 * Western cultural superiority no longer taken for granted

=Pro-Globalization and Anti-Globalization=

Pro-Globalization
Those that are pro-globalization, or //globalists//, while all generally believing in the theories of free and open societies, do not all follow the same rigid structure of globalization beliefs. For example some may be more partial to free-trade, while others, Libertarians, may see total freedom in the realms of politics, economics, and culture to be the best course for development (//Wikipedia//, 2006).

Since the early 80’s there has been much research done on the impact of globalization on national markets, much of it pointing to the notion that open and free trade is the key to sustained economic growth, or at the very least, impossible without it (Panagariya, //Global Policy Forum//, 2004).

Although there are many arguments against globalization, there are two basic premises many base themselves on. The first one is that globalization has not delivered on the global prosperity and economic growth it promised. Unfortunately, trying to come to a clear answer on this is difficult as there have been both resounding successes (China, and India), and major failures (Latin America). The second major basis for arguments is that globalization has allowed huge multi-national corporations (MNC’s) to exploit poor workers in developing nations with inadequate wages and working conditions, while hurting workers in the developed world with outsourcing and capital flight. A number of studies have presented data that actually points to MNC’s providing wages 50% higher and better working conditions then local firms. In terms of capital flow and flight, in many Western nations, the in the and out flow of capital is nearly equal (Panagariya, 2004).

Some other quick facts used by globalists: - percentage of people in developing nations living on less then $1 US a day (adjusted for inflation and purchasing) has been halved in the past 20 years (//Wikipedia//, 2006) - There has been a rapid spread of democracy around the globe with nearly 62% of countries granting universal suffrage (//Wikipedia//, 2006) - Since 1950 global literacy rates are up from 52% to over 80%, with women making up most of the gap

Anti-Globalization
Like globalists, anti-globalization activists do not all subscribe to a universal set of anti-globalization beliefs. Some maybe closer to the reform camp while others may want a complete overhaul in how countries interact with each other. A general belief amongst many supporters though is that for the most part, the mainstream media supports, at the very least, is complacent in the public’s ignorance of the issues surround globalization – the media presents the theory, not the reality of globalization (Shah, //Global Issues//, 2005)

As mentioned above, a major point of contention with anti-globalization supporters have is that it has not nearly lived up to glowing promises when it was first introduced as an economic, political, and social model. Much of the blame falls on the international economic institutions (IMF, WB) that are charged with ensuring the smooth flow of goods and capital around the globe in an open and free manor. Chiefly it is believed that these institutions are only considering the well being of wealthy developed nations and leaving in its wake an increasing poverty gap and environmental ruin in the developing world (//Wikipedia//, 2006).

The wealthy nations are able to reap these benefits while denying them to poorer nations as free and open trade favours those with more financial and social leverage. The developed world has the financial means to push their culture on a country and force their economic conditions along with it.

Anti-globalization supporters view globalization as inherently imperialistic, imposing a credit-based economy on the countries least capable of supporting it (//Wikipedia//, 2006). This, they point out, has contributed to much of the rampant debt problems that many developing counties are facing. An example of this is the South-East Asiafinancial crisis in 1997 that quickly spread around the world.

=See Also=

Global Village Global Cultural Flow Reference**

IMF April 2002. __Globalization: Threat or__ __Opportunity____?.__ Accessed February 22, 2006 

Straubhaar and LaRose. __Media Now__. Thomson Learning: Belmont, 2002.

Attallah Paul, Shade Leslie. __Mediascapes: New Patterns in Canadian Communication__. Nelson: Scarborough, 2002.

"Globalization", //Wikipedia, The Free Encyclopedia,// February 22nd 2006, 14:48 UTC, February 22nd 2006, http://en.wikipedia.org/wiki/Globalization

"Globalization: Threat or Oppurtunity". Date of Retrieval 23rd February 2006. 

Panagariya, Arvind "The Miracles of Globalization: a review of //Why Globalization Works//", //Global Policy Forum//, Sept/Oct. 2004. Date accessed: February 22nd 2006. http://www.globalpolicy.org/globaliz/define/2004/10review.htm

Shah, Anup "Free Trade and Globalization", //Global Issues//. December 26th 2005. Date accessed: February 23rd 2006. http://www.globalissues.org/TradeRelated/FreeTrade.asp