Chapter 9: Globalization, Inequality, and Development
THE CREATION OF A GLOBAL VILLAGE
The Triumphs and Tragedies of Globalization
- inequality between rich and poor countries remains staggering
- in some respects, it is increasing
- arguably, rather than spreading the wealth, globalized and industries and technologies may be turning the world into a more unequal place
- many people also oppose globalization because it may be hurting local cultures and the natural environment
- some anti-globalization activists even suggest that globalization is a form of imperialism
- The economic domination of one country by another.
THE SOURCES AND CONTOURS OF GLOBALIZATION
Globalization in Everyday Life
- global commodity chain
- A worldwide network of labour and production processes whose end result is a finished commodity.
The Sources of Globalization
- technological progress has made it possible to move things and information over long distances quickly and inexpensively
- transnational corporations – also called multinational or international corporations – are the most important agents of globalization in the world today
- transnational corporations
- Large businesses that rely increasingly on foreign labour and foreign production; skills and advances in design, technology, and management; world
markets; and massive advertising campaigns. They are increasingly autonomous from national governments.
- they are different from traditional corporations in five ways:
- traditional corporations rely on domestic labour and domestic production
- transnational corporations depend increasingly on foreign labour and foreign production
- traditional corporations extract natural resources or manufacture industrial goods
- transnational corporations increasingly emphasize skills and advances in design, technology, and management
- traditional corporations sell to domestic markets
- transnational corporations depend increasingly on world markets
- traditional corporations rely on established marketing and sales outlets
- transnational corporations depend increasingly on massive advertising campaigns
- traditional corporations work with or under national governments
- transnational corporations are increasingly autonomous from national governments
A World Like the United States?
- one common shorthand expression for the homogenizing effects of globalization is McDonaldization
- A form of rationalization. It refers to the spread of the principles of fast-food restaurants – efficiency, predictability, and calculability – to all spheres of life.
- some analysts find fault with the view that globalization is making the world a more homogeneous place based on North American values
- they argue that people always interpret globalizing force in terms of local conditions and traditions
- The simultaneous homogenization of some aspects of life and the strengthening of some local differences under the impact of globalization.
- those who see globalization merely as homogenization also ignore the regionalization of the world
- The division of the world into different and often competing economic, political, and cultural areas.
- the argument here is that the institutional and cultural integration of countries often falls far short of covering the whole world
The History of Globalization
- we regard the establishment of colonies and the growth of capitalism as th