1.
Industrial –emergence of worldwide production market and broader access to
GLOBALIZATION.
-It describes an on-going process by which regional economies, societies and cultures
have been integrated through a globe spanning network of exchange.
Economic globalization- is the integration of national economies into the
international economy through trade, foreign direct investment, capital flow,
migration and spread of technology.
It may also refer to transnational dissemination of ideas, languages or modern
globalization.
Globalization since World War II was as a result of planning by politicians to
breakdown borders hampering trade, to increase prosperity and interdependence
and thereby decreasing the chances of future war.
It centered around four main economic flows that characterize globalization:
1. Goods and services- Exports +imports as a proportion of National income or
per capita of population.
2. Labour and people- Net migration rates i.e. inward or outward migration
flows.
3. Capital- It is the inward direct investment as a proportion of national
income on per head of population.
4. Technology- includes international Research and development flows to the
proportion of population using a particular invention.
It led to an agreement to lay down the framework for international commerce
and finance and the foundation of several international Institutions intended to
oversee the processes of globalization.
These Institutions included: international Bank for Reconstruction and Dev’t
(World Bank) , International monetary fund (I M F)
Globalization has also been facilitated by advances in technology which has
reduced the cost of trade negotiations under the General Agreement on Tariffs
and Trade (GATT) which led to a series of agreement to remove restriction of
free trade.
World trade Organization in conjunction with GATT has ensured promotion of
free trade by:
i. Elimination of tarrifs by creating free trade zones with small or no
tariffs.
ii. Reduced transportation cost especially resulting from development of
containerization for ocean shipping.
iii. Reduction or elimination of capital control.
iv. Reduction, elimination or harmonization of subsidies for local business
E X CE L I N ST I T U T E O F
and creation of subsidies for global corporations.
v. Harmonization and recognition of intellectual property restriction
across the world e.g. patents.
Cultural globalization:
western cultural industries. PR O FE SSI O N A L S
- It is driven by communication technology and the world wide marketing of
It involves a process of homogenization as the global domination of American
culture at the expense of tradition diversity. However, there emerged
protesting movements against globalization which gave a new momentum to the
defense of local uniqueness individuality and identity but with no success.
Effects of globalization
Excel Institute of Professionals P.O. Box 2255- 01000 Thika Tel: :067 -21548
a range of foreign product for consumers and company particularly movements
of materials and goods between and within national boundaries.
2. Financial-emergence of worldwide financial markets and better access to
external financing for borrowers. The instability of global financial
inftrastructure leads to financial crisis e.g. the late 2008.
3. Economic- realization of global common market based on the freedom of
exchange of goods and capital. However this meant that economic collapse in
any given country could not be contained.
4. Political –Sometimes globalization may mean the creation of world
government which regulates the relationship among governments and
guarantees the rights arising from social and economic globalization.
5. Informational –increase in information flow between geographically remote
location and this technology has led to advent invention of fibre optic, satellite
and increased availability of telephone and internet.
6. Language- About 35% of world mails are in English 50% of all internet traffic
uses English and at least 40% of radio programmes are in English.
7. Competition- Survival in the new global business market calls for improved
productivity and increased competition. This requires cos in various industry to
upgrade their products and use technology skillfully inorder to face increased
competition.
8. Ecological- the advent of global environment challenges that can be solved
with international co-operating e.g. climate charge, cross boundary water and
air pollution, over fishing of the ocean and the spread of invasive species.
9. Cultural-Growth of cross –cultural contact i.e. advent of new categories of
consciousness’ and identities which embodies cultural diffusion, the desire to
increase one’s standard of living of living and enjoy foreign products and ideas,
adopt new and practices and participate in a world culture. Spread of multi-
culturalism and better individual access to cultural diversity.
10. Social effects-devt of the system of non-governmental organizations as main
agents of global public policy including humanitarian aid and developmental
effort.
11. Technical- development of global information system, global
telecommunication infrastructure, greater trans-border data flow such as
internet, wireless telephones, satellites sub-marine fibre optic cables increase
in the no. of standards applied globally e.g. copyright laws patents and the
world trade Agreement.
12. Legal/ethical-the creation of international criminal courts and international
justice movements, crime importation and raising awareness of global crime
fighting efforts and co-operation & the emergence of the global administrative
law.
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Excel Institute of Professionals P.O. Box 2255- 01000 Thika Tel: :067 -21548 Cell: 0729 - 517 899