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• In the 17th century, globalization became a business phenomenon when the Dutch
East India Company, which is often described as the first multinational
corporation, was established. Because of the high risks involved with
international trade, the Dutch East India Company became the first company in
the world to share risk and enable joint ownership of companies through the
issuance of shares of stock: an important driver for globalization
• The 19th century is sometimes called "The First Era of Globalization." It was a
period characterized by rapid growth in international trade and investment
between the European imperial powers, their colonies, and, later, the United
States. It was in this period that areas of sub-saharan Africa and the Island Pacific
were incorporated into the world system.
MODERN GLOBALIZATION
• Since World War II, barriers to international trade have been considerably
lowered through international agreements - General Agreement on Tariffs and
Trade (GATT). Particular initiatives carried out as a result of GATT and the
World Trade Organization (WTO), for which GATT is the foundation, have
included:
• Promotion of free trade:
o Reduction or elimination of tariffs; creation of free trade zones with small or
no tariffs
o Reduced transportation costs, especially resulting from development of
containerization for ocean shipping.
o Reduction or elimination of capital controls
o Reduction, elimination, or harmonization of subsidies for local businesses
• Transportation - fewer and fewer European cars on European roads each year
(the same can also be said about American cars on American roads) and the
death of distance through the incorporation of technology to decrease travel
time. This would appear to be a technological advancement recognized by those
who work in information, rather than labour intensive markets, accessible to the
few rather than the many, and if it is indeed an effect of globalism, reflects the
disproportionate inequitable allocation of resources rather than a benefit to
humanity overall.
• International cultural exchange
• Spreading of multiculturalism, and better individual access to cultural diversity
(e.g. through the export of Hollywood and Bollywood movies).
• Greater international travel and tourism for the few who can afford international
travel and tourism
o Greater immigration, including illegal immigration, who have in 2008 accelerated
removal of illegal migrants and modified laws to increase the ease of removing
those who have entered the country illegally while ensuring that immigration
policies allow those more favourable to the stimulation of economy to enter,
primarily focusing on the capital that immigrants can move into a country with
them.
• Spread of local consumer products (e.g. food) to other countries (often adapted to
their culture) including genetically modified organisms.
o World-wide fads and pop culture such as Pokémon, Sudoku, Numa Numa,
Origami, Idol series, YouTube, Orkut, Facebook, and MySpace. Accessible to
those who have Internet or Television, leaving out a substantial segment of the
Earth's population.
o World-wide sporting events such as FIFA World Cup and the Olympic Games.
o Formation or development of a set of universal values - Homogenization of
Culture
• Technical
o Development of a global telecommunications infrastructure and greater
transborder 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
o The creation of the international criminal court, which the United States has
refused to sign on to, and international justice movements.
o Crime importation and raising awareness of global crime-fighting efforts and
cooperation.
• Sexual awareness – It is often easy to only focus on the economic aspects of
Globalization. Globalization may also have social effects such changes in
sexual inequality, and to this issue brought about a greater awareness of the
different (often more brutal) types of gender discrimination throughout the
world.
• Increasing concentration of wealth in fewer and fewer hands. . Media and
other multinational mergers leading to fewer corporations controlling vaster
segments of society and production.
PRO-GLOBALIZATION (globalism)
• Globalization advocates such as Jeffrey Sachs point to the above average drop in
poverty rates in countries, such as China, where globalization has taken a strong
foothold, compared to areas less affected by globalization, such as Sub-Saharan
Africa, where poverty rates have remained stagnant.
• Generally, support of Free Trade, Capitalism, and Democracy - systems which are
widely believed to facilitate Globalization. Supporters of free trade claim that it
increases economic prosperity as well as opportunity, especially among developing
nations, enhances civil liberties and leads to a more efficient allocation of resources.
• From 1981 to 2001, according to World Bank figures, the number of people living
on $1 a day or less declined from 1.5 billion to 1.1 billion in absolute terms. At the
same time, the world population increased, so in percentage terms the number of
such people in developing nations declined from 40% to 20% of the population.
with the greatest improvements occurring in economies rapidly reducing barriers to
trade and investment; yet, some critics argue that more detailed variables measuring
poverty should be studied instead.
• The percentage of people living on less than $2 a day has decreased greatly in areas
effected by globalization, whereas poverty rates in other areas have remained
largely stagnant. In East-Asia, including China, the percentage has decreased by
50.1% compared to a 2.2% increase in Sub-Saharan Africa.
Demograph 1 1 1 1 1 1 1 2 Percentage Change
Area
ic 981 984 987 990 993 996 999 002 1981-2002
5 3 2 2 2 1 1 1
Less than $1
7.7 8.9 8.0 9.6 4.9 6.6 5.7 1.1 -80.76%
a day
East Asia and % % % % % % % %
Pacific 8 7 6 6 6 5 5 4
Less than $2
4.8 6.6 7.7 9.9 4.8 3.3 0.3 0.7 -52.00%
a day
% % % % % % % %
1 1 1 1 1 1
Less than $1 9 8
1.8 0.9 1.3 1.3 0.7 0.5 -8.25%
a day .7% .9%
% % % % % %
Latin America
2 3 2 2 2 2 2 2
Less than $2
9.6 0.4 7.8 8.4 9.5 4.1 5.1 3.4 -29.94%
a day
% % % % % % % %
4 4 4 4 4 4 4 4
Less than $1
1.6 6.3 6.8 4.6 4.0 5.6 5.7 4.0 +5.77%
a day
Sub-Saharan % % % % % % % %
Africa 7 7 7 7 7 7 7 7
Less than $2
3.3 6.1 6.1 5.0 4.6 5.1 6.1 4.9 +2.18%
a day
% % % % % % % %
European Social Forum, the Asian Social Forum, World Social Forum (WSF).
Recently there has been some discussion behind the movement about the role of
the social forums. Some see them as a "popular university", an occasion to make
many people aware of the problems of globalization. Others would prefer that
delegates concentrate their efforts on the coordination and organization of the
movement and on the planning of new campaigns. However it has often been
argued that in the dominated countries (most of the world) the WSF is little more
than an 'NGO fair' driven by Northern NGOs and donors most of which are
hostile to popular movements of the poor.
REVERSION
• Rising petroleum prices can reverse globalization and are leading
to world inflation crisis. Higher energy prices are impacting
transport costs at an unprecedented rate. So much so, that the cost
of moving goods, not the cost of tariffs, is the largest barrier to
global trade today.