Globalization Theory

International Business StrategyInternational Business Strategy

Prepared by: Ban Sun,Low

GlobalizationTheory

A summary from coursetext

OverviewOverview

2.

Globalization Theory Globalization Theory

1. Globalization – spread of world wide practice, relations, consciousness and organization of social life.

2. Robinson, 2007: - Development internal to social theory, a reaction to modernization theory that is: a. western bias b. pre-eminence accord to west c. The rest of the world increasingly becoming like west.

3. Can be analyze culturally, economically, politically and institutionally.

Major Contemporary Theorist Major Contemporary Theorist

2.


A. Anthony Giddens – “Runaway World” (beyond our control)

1. Close link between globalization and risk (manufactured risk).

2. Emphasize role of the West (US particular), to influence.

3. Increasingly de-centered as non west plays larger role.

4. Globalization undermined local cultures and serves to revive them.

5. Globalization “Squeeze sideways” – produce new area that may cut across nation . (Barcelona in northern Spain, extends into France)

6. Sees the emergence of “Global Cosmopolitan society”

7. Thinks fundamentalist is problematic – against cosmopolitan. └ linked to violence.


4.


B. Ulrich Beck – Politics of Globalization & cosmopolitan Critic of globalization

1. Distinction between globalism and globality.

2. Globalism : a. World dominated by economics. b. hegemony of capitalist world market & neo-liberal ideology underpins it.

3. Beck : (Involves mono-causal & linear thinking), wrong to assume global developments reduce to single economic dimension.

4. Sees the world more multi-dimensional & multidirectional .

5. Problems in the capitalist world market – all sorts of trade barriers. Winners and losers in the market


5.


B. Ulrich Beck – Politics of Globalization & cosmopolitan Critic of globalization

6. Globality: - nothing is any longer limited to local. - local incidences affect entire world (ie: Anwar Ibrahim trial case)

7. Globality (immobility to reverse it), associated with “second modernity”. First modernity – decline of power of nation and the nation border. 8. Globality & “second modernity” = denationalization.


6.


9. Distinctive features of globality: a. Everyday life and interaction across national borders are profoundly affected. b. Self-perception of transnationality in mass media, consumption and tourism

realms.

c. Community, labour & capital are increasingly placeless.

d. Growing awareness of global ecological dangers and of actions to be taken to deal with them.

e. Increasing perception of transcultural others in our lives.

f. Global culture industries circulate at unprecedented levels.

g. Increase in number & strength of transnational agreements, actors, and instituitions.


7.


C. Zygamut Bauman – Human consequences of globalization

1. Globalization = “space war” where the winner has more mobility and create meaning for themselves.

2. Mobility is a differentiating factor in social stratification – important factor.

3. “Loser” – confined to isolated territories denuded of meaning.

4. Territories become “ battle-field” Winners live in time (span space quickly) Losers live in space which ties them down.

5. It is important to distinguish who have at least some degree of mobility: a. “Tourist” – on the move because they want to be. ( + ve) b. “vagabonds” - move because they find their environment unbearable. ( - ve)


8.


C. Zygamut Bauman – Human consequences of globalization

6. “Tourist” have burdens: a. Impossible to slow down. b. Unending string of choice. c. Each choice have a series of risk and danger.

Cultural Theory (Jan Naderveen Pieterse – 2004) Cultural Theory (Jan Naderveen Pieterse – 2004)

9.


A. Cultural Differentiation

1. In spite of globalization , there are lasting differences in cultures and civilizations. The core culture remain the same.

└ globalization occurs on the surface.

2. Cultures closed to globalization and influence of other culture. └ billiard ball game – potential catastrophic collisions among world cultures.

3. This paradigm attract recent attention because: Set 1 a. Sept 11, 1999 - terrorist attack b. Afghanistan and Iraq war ( clash between western and Islamic culture and eternal cultural differences within them.)


10.



Set 2 1. Increasing multiculturism of both US (↑ Hispanic) and Western Europe (↑ muslim). - Samuel Huntington’s clash of civilization and remake of World Order (1996). Huntington : civilization = culture. 2. resurfacing ancient identities, adversaries and enemies since the past 20 years. 3. emergence of fault lines among many civilizations – historic enmities among these civilization. 4. Huntington differentiated a number of world civilization to: a. Sinic (Chinese) b. Orthodox (centered in

Russia) c. Hindu d. islam e. Western Europe f. North America (Aussie, NZ close align to US) g. Africa - all the above differs greatly on philosophical assumptions, value, social relations, customs and outlook of life.


11.



There are SIX (6) features of civilizations. Civilizations are:

1. are among the most enduring of human associations

2. are the broadest level of cultural identity

3. are the broadest source of subjective self-identification

4. ususally span more than one state.

5. are a totality.

6. are closely aligned with both religion and race.


12.



Relationship among Civilizations.

1. 1,500 BC – AD 1,500 : - civilization separated by time and space. - contact likely to be non –existent. - if have, likely to be limited and intense.

2. 1,500 – WWII - sustained, overpowering and unidirectional impact of western civilization on all other civilization. └ due to rise of cities, state bureaucracy and emergence of national consciousness. └ Immediate cause: - technology , military , ocean navigation, weaponry - West excel in organized violence. - Huntington’s view: 1910 – one world, one civilization – western civilization.


13.


A. Cultural Differentiation Relationship among Civilizations.

3. Multi-civilizational system - end of the expansion of the west. Revolt against it.

- WWI -1990: clash of ideas (capitalist vs communist)

- Now: religion, culture and ultimately civilization.

- Huntington foresee: “ A slow decline in the west dominance” ( A decrease in population, military and economic growth) - due to revival of 2 important civilization i. Resurgence of Asian society. ii. Resurgence of Islam


14.


A. Cultural Differentiation Relationship among Civilizations. Cont:

i. Resurgence of Asian society (Sinic) - refers to growth of economic power which will surpass the west. └ increasing power to East. ( growth in Japan, China and India)

- economic ascendancy traceable to superior aspect of its culture especially in its collectivism in contrast to individuality that dominates the west.

- Common culture among Asian region : Confucianism


15.


A. Cultural Differentiation Relationship among Civilizations. Cont:

ii. Resurgence of Islam (controversial argument) - Sinic rooted in economy while Islamic growth is rooted in dramatic population growth and mobilization of the population. ( i.e: 8% Muslims in France)

- Clash between the west (arrogance), Islam (intolerance) and Sinic (assertiveness)

- West view itself “Universal vulture” (democracy) and desire to export to the rest of the world, which Islam sees as Imperialism.


16.


A. Cultural Differentiation Relationship among Civilizations. Cont: ii. Resurgence of Islam (controversial argument)

- West wants to limit weapon proliferation while others want them especially “ Weapons of mass destructions”

- West seek to control and limit immigration (especially from Islamic civilization) which leads to development of cleft societies within Europe and US.


17.


A. Cultural Differentiation Relationship among Civilizations. Huntington’s criticism:

1. Controversial about Muslim and Islamic civilization. Example: - Whenever Muslim and non Muslim live in close proximity , there is a tendency for Muslim to be more violent. └ Islam spread by sword, glorified military values, history of Islamic conquest.


18.


A. Cultural Differentiation Relationship among Civilizations. Huntington’s concern:

1. Decline in the west especially US.

2. US threatened by multic-ivilizational or multicultural character.

3. Demise of US, demise of western civilization.

4. US must do 2 things: a. reaffirm identity as a western nation. b. reaffirm and reassert its role of western civilization around the globe.


19.


B. Cultural Convergence 1. Globalization leads to sameness throughout the world.

2. Cultures of the world grows increasingly similar to some degree.

3. Global assimilation to the dominant group.

4. Those who operate on this perspective (Bali & Lechner, 2005) focus on: a. Cultural imperialism b. westernization c. Americanization d. “McDonaldlization” e. World culture

5. Global processes that are bringing the same or similar phenomena.


20.


B. Cultural Convergence “ McDonald-lization “ - a process which the principles of “fast-food-restaurant” are coming to

dominate more and more sectors in US and the world. - Consist of 5 basic dimensions: 1. Efficiency - best possible means to achieve what ever end is desired. - ensure customer and employee act in efficient manner. - consume more efficiently ( ie: drive through)


21.


B. Cultural Convergence “ McDonald-lization “

2. Calculability - quantity (speed) opposed to quality (↓ quality of cooking) - various aspect of work are timed.

3. Predictability - emphasis on predictability - employees (scripted speech) and customers (know what they want)

expected to respond with predictable behaviour.


22.


B. Cultural Convergence “ McDonald-lization “

4. Control by means of technology - great technology control system, which will replace employees. - offer standard food which customer cannot alter.

5. Irrationality of rationality - both customer and employees suffer - example: efficiency of speed, replaced by inefficiency of long lines of queue.


22.


B. Cultural Convergence “ McDonald-lization “, expansion & globalization

1. McDonalization - resounding success outside of US, indicator of globalization.

2. Spurs nations to develop their own version of McD.

3. McDonaldlization exports to the wrold at the beginning. Now other nations export own version back to US, coming to one full circle.


22.


B. Cultural Convergence Globalization of nothing – Ritzer (2004)

1. “nothing”, forms devoid of distinctive content.

2. Easier to export empty “forms” throughout the globe.

3. Less likely to come into conflict with the local (civilizations) └ Easy to replicate , cost advantage and inexpensive to reproduce


25.


B. Cultural Convergence Globalization of nothing – Ritzer (2004)

4. Four subtypes of “nothing”

1. “Non place” – largely empty of content (shopping mall)

2. “Non things” – works exactly the same way worldwide (credit card)

3. “Non people” – how they work, same everywhere (tele-markerters)

4. “Non service” – Service provided are identical (ATM)

Global proliferation of 1-4, indication of increasing homogenization.


26.


B. Cultural Hybridization 1. Mixing of cultures as a result of globalization & production. └ resulting in global & local, new and unique cultures created which is neither local or global culture.

2. Indicate heterogenization than homogenization ( globalization of nothing)

3. Glocalization – concept that gets to the heart of culture hybrid. ( think global, act local) example: Use internet to provide service to local

people.

4. Examples of hybridization: (heterogenization & glocalization) - Argentineans watching Asian rap performers performed by a South

American band at London club owned by a Saudi Arabian. - Americans eating Chinese tacos, kosher pizza.


27.


B. Cultural Hybridization 4. Examples of hybridization: (Creolization – Hannerz,1987) -people of mixed race, combination of language and culture.

5. Glocalization elements: a. This theory is exceptionally alert to differences within and between areas of the world.

b. Individuals and local groups have great power to adapt, innovate and maneuver within a glocalized world. Local individuals & groups as important and creative agents.


28.


B. Cultural Hybridization c. Social processes are relational and contingent. Grobalization provokes a

variety of reactions – ranging from nationalist entrenchment to cosmopolitan embrace – that feed back on and transform it, that produce glocalization.

d. Commodities and the media are seen not as coercive but rather as providing material to be used in individual and group creation throughout the glocalized areas of the world.


29.


B. Cultural Hybridization “Appadurai’s landscape” 1. Emphasis on global flows and disjuncture's among them.

2. Scapes operate independently of one another and conflicting with other scapes.

1. Ethnoscapes: - involve mobile groups and individuals who play an important role . - involves actual movement and the fantasies about moving.

2. Technoscapes: - information technology move fluidly around and across the globe.


30


B. Cultural Hybridization “Appadurai’s landscape”

3. Financescapes: - process of movement of money, currency, stock exchange moving at

great speed.

4. Mediascapes: - electronic capabilities to produce and transmit information around the

globe and the images of the world that these media create and disseminate. Involved here are bloggers, fil makers and distributors, newspapers and magazines.

5. Ideoscapes: - like mediascapes are set of images – restricted to political images

produced by states inline with their ideology or counter ideologies.


31.


B. Cultural Hybridization “Appadurai’s landscape” 3. Important notings: I. Global processes that are partly/independent of any given nation state.II. Global flows occur not only through landscapes but also through

disjunctures.III. Territories going to be affected by the 5 landscapes and their

disjunctures. └ due to differences between culture


32.


B. Cultural Hybridization “Appadurai’s landscape” 4. Focus on landscape inline with: a. - globalization associated with heterogenization than homogenization. - globalization associated with glocalization than grobalization.

5. Grobalization = imperialistic ambitions of nations, corporations to impose themselves on various geographic areas.

Economic Theory Economic Theory

33.


Leslie Sklair (2002): 2 system of globalization a. Capitalist (pre-dominant now) b. Socialist (anti – globalization movement)

- Focus on transnational practices └ cut across boundaries, territorial boundaries are of

declining importance. (capitalist)- Have 3 important elements: 1. Transnational corporations - dominate Capitalist move away fro, international system to globalization system (No geographic territory or state)


34.


2. Transnational Capitalist Class - does not necessarily own means of production. There are 4 fractions: a. Corporate fraction - Executives of transnational corporations and other local affiliates. b. State fraction - globalizing state & interstate bureaucrats and politicians. c. Technical fraction - globalizing professionals d. Consumerist fraction - merchant & media executives


35.


2. Transnational Capitalist Class - are transnational in various ways: a. “member” share global interest.

b. Seek to assert various types of control across nations. (economical, political, culture & ideological)

c. Global > local perspective on a wide range of issues.

d. see themselves as citizen of the world.

e. Share similar lifestyle in terms of goods and services they consume.


36.


3. Culture – ideology of consumption a. ability to exert ideological control over people and array of consumer

goods marketed by or through them. (increase dramatically with ↑ sophistication of advertising & media.)

b. create a global mood to consume which creates benefits to transnational corporation.

Ultimately , transnational corporation utilize transnational capitalist to develop and solidify culture and ideology ➠ feed the demand of the capitalist system of production.

└ defines global capitalism today.


36.


Leslie Sklair (2002)

Socialist globalization- Transnational corporation abuses, exploitation leads to signs of

protectionism of some countries.

- Green movement, sustainable environment, anti-globalism and human rights movement ➠ seeds to socialist globalization.


38.


EMPIRE(Post modern Marxian perspective of globalization) Michael Hardt, Antonio Negri (2000), Multitude (2004)

1. Associate modernity with imperialism, where one or more nation at center that control or exploit especially economically.

2. “empire”, a showcase of such dominance but no single nation at center .

└ exist in the realm of ideas(media) & omnipresent (like god)

3. Is not fully exist yet. Formation at the moment.

4. Governs the world with single logic of rule, no single power. Power is dispersed throughout the society and globe.

5. Lacks geographical / territorial boundaries. Expand down to social world.


39.


EMPIRE

6. Seek to control entirety of life down to most basic level.

7. Source of power = juridical power (order, norms, ethical truths, common notion what is right)

└ what is “right” – intervene in “humanitarian “ problems, engage “just wars” └ “enemy” = threat to ethical order of the world. (US invade Iraq)

8. Based on triple imperatives (requirements) a. Incorporate all it can. Eliminate all differences, resistance & conflict. b. empire differentiates and affirm differences. └ celebrate different cultures, set aside juridically. c. embed differences into hierarchy and manage it ➠ real power


40.


Multitude(Opposing of empire force)

- real productive force of Empire.

- consume Empire’s culture-ideology

- Empire a parasitic on Multitude creativity and productivity.

- Potential to overthrow empire, counter – empire.

- Globalization leads to deterritorialization where Multitude is a force behind this. – pre-requisite to global liberalization

└ Social revolution.


41.


Hardt & Negeri (see a utopian potential in globalization)

1. “Problem” is imperialism and empire. Control multitude via “police power”.

2. Pros of globalization: a. prevent us from falling back into particularism and isolation.

b. “barbarism” involving the body (less likely to submit to external control – create new life)

3. Control over multitude which produce intellectual, communicative, work in which are immaterial are important ➠ however are control by global communication and ideology (media) – but can use back to counter.

Political Theory Political Theory

42.


Liberal theory:- Importance of free market, operate free from nation state/ political

entities. └ in long run bring advantage to everyone

Realist View :(Sholte, 2005; Spegle, 1996)- Globalization outcome of power relations among nation states- Pursue own interest at global stage, use power to advantage. (US, sole super-power – major user and abuser of power)

International RelationsJustin Rosernberg (2005)- Transnational focus is misguided- Nation-state interrelationship , focal concern with capitalism from

Marxian perspective.


43.


International RelationsJames Rosenau (2003)- Distant proximities (what seems remote is close at hand) └ linked to concept “fragmentation” – world is both fragmenting and integrating at the same time. - Various sources of fragmentation in the world today:1. Development of new micro-electronic technologies - integrate those who have them, those who don’t get separated. - cell phone, internet & email shrink the world. - rendered territorial boundaries less important.

2. The skill revolution - analytical skill to relate their own situation to global situations. └ able to cross state borders easily and minimal political attachments. - those who don’t have, retreat into local concern.


43.


3. The organization EXPLOSION - Proliferation of voluntary organization – NGO - Serve to integrate individuals involve in them, fragmentation to those

who are not. - Politically ↑ NGO contribute to the declining of state and confidence

to accomplish various things.

4. Bifurcation of structure - variety of organizations and states. - state centrism vs multi-centrism (fragmentation between them is increasing)


43.


5. The mobility upheal - increasing vast movement of people ( tourist, illegal immigrants,

terrorist) - travel & tourism: integrative effect - terrorism : disintegrative and integrative - political entities threaten by movement they cannot control └ illegal immigrants / terrorist

6. The decentralization of government (political implications) - decline of state importance because of their inability to stem a variety

of global process (less loyalty from the people) └ (ideas, jobs, money, drugs,terrorist) - migrants can come together create own local institutions such as church

and schools.


43.


7. Authority crises bought on by increasing subgroupism & decentalization - disintegration caused by erosion of its authority.

- loyalty based on criteria, how well state perform. └ cannot perform , fragmentive process , stale-mate └ citizen focus on self-interest.

- magnify by government disintegration – centered as profit making org (what used to be made by federal government – now at government

agencies at various level ,organization and corporations) └ can integrate by micro-electronic technology

- inability to handle many traditional responsibilities ➠ government crises


43.


8. The globalization of national economies - State no longer control transnational economic flow - create greater centralization and integration among these transnational

economic entities (European Union, consortium of European aircraft manufacturer)

Conclusion: Political challenge to the state is to find new ways of governing,

perhaps at reduced level, in a globalizing and increasingly fragmentizing world.

Education

Globalization Theory