GLOBALIZATION

GLOBALIZATION AND COMPETITIVENESS

Author: Julio César Botero Robayo/ Translation and update: Johana Paola Hoyos
 INDEX

 Introduction
1. Globalization
2. Dimensions of globalization
2.1. Economic globalization
2.2. Social globalization
2.3. Cultural globalization
2.4. Political Globalization
2.5. Technological globalization
2.6. Environment

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INTRODUCTION
“A country with secure property rights, scientific inquiry and technological innovation will
become richer. But, since division of labor is limited by the size of the market, it will also benefit
from trade, not just in goods and services, but in ideas, capital and people. The smaller a
country is, the greater the benefits. Trade is far cheaper than empire, just as internal
development is a less costly route to prosperity than plunder. This was the heart of Angell's
argument.” ― Martin Wolf, Why Globalization Works
(Wolf, 2016)

Few issues generate as much controversy as the issue we will try along the course. Globalization
is one of those debates that are both fierce defenders as tireless opponents. Due to tensions and
arguments presented on both sides, it is difficult to think of a mid-point, in a common place to
study what is happening without fascination or taking sides. However, there is one fact from
which we can start this academic exercise. GLOBALIZATION is actually happening
Whether you agree or not with the process that will be defined, you cannot deny that we are in
an increasingly interdependent and globalized world, in addition, the technological revolution has
allowed a level of interaction and participation unprecedented in human history.
The causes and consequences of globalization and its components, the implications in economic,
political, social, cultural, technological and environmental fields, as well as other concepts that
complement the theme, occupy the lines of this primer.
It only remains to mention that it is our task during this course, the critically review of the
arguments for and against of this issue it so widely debated and so little studied called
Globalization to adopt your own position based on academic arguments.

ACADEMIC RECOMENDATIONS

 To read each one of the primers of the course.

 To review the support materials and supplementary readings.
 To perform a research of the concepts described for each week.
 To build your own reading records with key ideas, own analysis and bibliographic
reference source.
 To review the schedule of activities and evaluation criteria.
 To participate on the activities and to comply with expected deliveries.

GLOBALIZATION AND COMPETITIVENESS 3

 THEMATIC DEVELOPMENT

1. GLOBALIZATION

Figure 1.Globalization

Source: Everythingpossible (s.f.)

The first question that must be answered when studying any topic is related to its essence, its
existence, the question is what is it? In principle, it seems easy to define any subject, however
studying it in depth, it is understood that this question is more complex than initially thought.
Then let´s go to answer the more general question of this course, what is globalization?
Just as there is no consensus on the exact origin of globalization, there is neither any such a clearly
definition of this term. Therefore, for this course of "Globalization and Competitiveness"
globalization will be understood as the increased impact of human activities beyond national
borders. The definition is very broad, we are aware of that; however, it is necessary to give such
breadth in order to explain the detail that the subject deserves.
The following is a section of John Maynard Keynes in which he describes a typical day for any
British citizen in the nineteenth century.
“The inhabitant of London could order by telephone, sipping his morning tea in bed, the various
products of the whole earth, in such quantity as he might see fit, and reasonably expect their
early delivery upon his doorstep; he could at the same moment and by the same means adventure
his wealth in the natural resources and new enterprises of any quarter of the world, and share,

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without exertion or even trouble, in their prospective fruits and advantages; or he could decide
to couple the security of his fortunes with the good faith of the townspeople of any substantial
municipality in any continent that fancy or information might recommend. He could secure
forthwith, if he wished it, cheap and comfortable means of transit to any country or climate
without passport or other formality, could dispatch his servant to the neighboring office of a bank
for such supply of the precious metals as might seem convenient, and could then proceed abroad
to foreign quarters, without knowledge of their religion, language, or customs, bearing coined
wealth upon his person, and would consider himself greatly aggrieved and much surprised at the
least interference. But, most important of all, he regarded this state of affairs as normal, certain,
and permanent, except in the direction of further improvement, and any deviation from it as
aberrant, scandalous, and avoidable. The projects and politics of militarism and imperialism, of
racial and cultural rivalries, of monopolies, restrictions, and exclusion, which were to play the
serpent to this paradise, were little (Keynes, 2016)more than the amusements of his daily
newspaper, and appeared to exercise almost no influence at all on the ordinary course of social
and economic life, the internationalization of which was nearly complete in practice”. (Keynes,
2016)
When referring to globalization as an “increase in human activities beyond national borders”, now
the question is: what kind of human activities have an international impact? The list, in response
would be fairly extensive. Therefore, it is necessary to group activities within the concept of
dimensions which serve at this time to generalize each and every one of the activities of daily
living of people, whether these live in New York, Istanbul, Shanghai Cairo, Bogotá, or any other
human settlement, no matter how small or distant it may be, the following dimensions are issues
that necessarily involve the people's daily lives.
These dimensions are: economy, society, culture, politics and technology. Then it will be
developed each one of the mentioned dimensions in more detail to better understand what you
are reading.

GLOBALIZATION AND COMPETITIVENESS 5

 2. DIMENSIONS OF GLOBALIZATION

2.1. Economic Globalization

Figure 2. Economic Globalization

Source: Radiantskies (s.f)

The first of the dimensions that make up globalization is the economy. While it is not the only
aspect of globalization it is the fundamental issue around which all other issues revolve. As
mentioned in the introduction, we can speak of multiple instants in which the start of
globalization is given, all these have one thing in common, these are issues related to the
economic sphere.
Economic globalization concerns to the international importance of economic interactions, to
lower national barriers to trade or financial relations and the interdependence in terms of inputs,
resources, labor, industry, technology and other global level services.
Therefore, in the same way that possible to identify dimensions within globalization and the
economy is one of them; this latter is made up of the following aspects: trade, finance,
cooperation, migration and innovation.
International Trade, the first component of economic globalization refers to the exchange of
goods and services between national economies. It is one of the largest and most notorious

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aspects of globalization. Due to trade is the exchange of goods and services, it is possible to
measure, quantify and compare its behavior and its impact. For example, here we have a part of
the World Trade Statistical Review of 2016 that provides a detailed analysis of the latest developments
in world trade.
The volume of world trade continued to grow slowly in 2015 recording growth of 2.7 percent,
revised down from a preliminary estimate of 2.8 percent in April 2016. Trade growth was roughly
in line with world GDP growth of 2.4 per cent.
Despite positive growth in trade volume terms, the current dollar value of world merchandise
exports declined by 13 per cent in 2015, to US$ 16.0 trillion, as export prices fell by 15 per cent.
The dollar value of world commercial services exports also fell 6 percent in 2015 to US$ 4,754
billion, although the decline was less severe than for merchandise.
The weakness of trade in 2015 was due to a number of factors, including an economic slowdown
in China, a severe recession in Brazil, falling prices for oil and other commodities, and exchange
rate volatility.
Demand for imports slowed in Asia and in resource-based economies in 2015 but strengthened
in the United States and the European Union.
Merchandise values appeared to be stabilizing in the first quarter of 2016 as the dollar eased and
oil prices staged a modest recovery, but the outlook for the year as a whole remained subdued.
(World trade organization, 2016)
Finance, meanwhile, include the exchange of currencies, stocks and other financial instruments.
So far, there is an element with many questions within the global agenda. Its dimensions, its
implications and the lack of global regulation, are some of the issues put on the table when policy
makers meet; however, when taking measures, it is made with a lot of fear and caution due to
the power that holds the financial sector in the world.
Except the energy crisis of the 70s, due to the reduction in oil production in Arab countries, all
the economic crises of the 20th and 21st centuries, have been linked to the financial sector. This
issue, because of its importance, will be discussed further in coming sessions.
Continuing with the elements of the economy, the next issue is the International Cooperation.
Cooperation is an element of responsibility and commitment to development in the world. This
could be named as one of the points on which both critics of globalization as advocates agree it
is necessary to promote development in all regions of the planet. This can be achieved if
mechanisms, appropriate programs and projects within international cooperation are
established.

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 Migration is another component of economic globalization. This occurs when a movement of
people across national boundaries is presented. This movement can be set permanently or
temporarily, as long as people are looking for better educational, employment, economic or
security opportunities. While it is also a social element, migration has both, causes and
consequences in the economic sphere, it is also one of the issues that generated greater
discomfort at the negotiating table of international integration agreements.
As for the ideas, the last but not the least important of the economic globalization elements, it
can be said that is the broader of the aspects of economic globalization. It is the transmission of
intellect, knowledge, information. Its complexity is very high, because of the number of
interactions related to the transmission of knowledge worldwide is very difficult to measure.
Except for transfers of patents, the other scenarios in which a diffusion of ideas is presented, do
not have the conditions for keeping its general accounts. In addition, with the scope of
information and telecommunication networks, the knowledge and its transmission, they are now
unlimited.

2.2. Social Globalization

Figure 3. Social Globalization

Source: Boiko Ilia (s.f)

Social globalization, meanwhile, is the set of activities that bring together people from different
latitudes around specific topics. One of the key elements of social globalization, is that in these

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scenarios, the main actor is no longer the state and instead, individuals and civil society
organizations who hold the leading roles.
The economy, the politics, the arts, the environment and many others, are issues that occupy the
social forums worldwide. One of the clearest examples is the World Social Forum, which is a space
where alternative ideas to the current globalization model are proposed. The Forum is held every
year in a different city, the first for example, was conducted in 2001 in Porto Alegre, Brazil, the
2016 forum, meanwhile, takes place in Montreal from 9th to 14th August 2016.
One of the elements that are perceived as inconsistencies with spaces like this, is that
globalization is precisely the element that criticize and question the process that has allowed
global forums exist and can be precisely performed. The globalized movement, the anti-
globalization movement.

2.3. Cultural Globalization

Figure 4: Cultural Globalization

Source: Radiantskies (s.f)

One of the most criticized aspects of globalization is related to culture. As for the arguments by
opponents, many of them argue that globalization is synonymous with Americanization.

GLOBALIZATION AND COMPETITIVENESS 9

 The first thoughts that come to the minds of those who hear for the first time this term of
globalization are the Golden Arches of McDonald's or the white ribbon on the red background of
Coca Cola, both symbols of the US economy. Therefore, it is assumed that being part of
globalization is increasingly closer to live as live in the United States, with its products, mass
consumption and lifestyle. Will be globalized the same of being American?
To answer the previous question, just review the events of the last decade in culture. In France,
for example, there is a strong struggle for freedom of religious expression, particularly by
members of Islamic communities. Latin America is working on processes of integration focused
in the Pacific basin Across the globe are increasingly offer Mandarin classes and business trips to
China and Southeast of Asia are organized. In Europe, countries still maintain their language and
their regional beliefs despite being part of a big political and economic bloc. In the territory of the
United States itself, it is very easy to find Spanish-speaking preserving their cultural traditions; as
well as Japanese or Korean Americans driving cars, eating tacos and listening to Daddy Yankee,
Shakira or PSY.
Therefore, rather than cultural homogenization about American values, what is presented is a
fusion of multiple cultures, which retain their roots and characteristics.

2.4. Political Globalization

Figure 5. Political Globalization

Source: Studioarte2015 (s.f)

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If it is necessary to identify a point of origin of political globalization, it is possible to identify the
end of the Cold War as a source of political homogeneity in the world. Political globalization is
related to the manner in which States are organized inside and behave abroad.
According to Professor Francis Fukuyama, liberal democracy is the political structure that resulted
in an evolution throughout human history. It was not the empires or dynasties or tribes or
fiefdoms, or dictatorships or monarchies organizations that shape the world but, on the contrary,
democracy is the last stage in the evolution of the social structure. So then, a political
homogeneity worldwide is presented.
It is clear that there are divisions within states, although the fact to argue that there is political
homogeneity in terms of shape, it does not mean that the content is uniform, there are still liberal
and conservative philosophies both political and economic, but all them within the framework of
democracy.
Shifting the focus, it is the international stage. The space in which the representatives of national
governments discuss the concerns of the global agenda. Each time more and more meetings of
this type are held, there is increasing cooperation between States and more willingness to listen
to the positions of governors previously rejected in the global arena.
While there is still no world government and there are the states the highest authority on the
globe, each time there is a political rapprochement more distant from armed conflicts and closer
to the forums and spaces for dialogue and communication at all latitudes.

2.5. Technological globalization

Figure 7. Technological G

Source: Cienpies Design (s.f)

GLOBALIZATION AND COMPETITIVENESS 11

 The technology, meanwhile, more than one element in globalization itself has served as a vehicle
for globalization.
The decrease in transportation time and costs has helped more people to move from one place
to another, either for tourism, business or other aspects. It has also allowed the movement of
raw materials, machinery and all kinds of products perform in a more efficient way than before.
The movement of capital is another aspect that has benefited greatly from the technological
advances. Astronomical sums of money are traded between financial markets of Hong Kong and
New York in seconds, Russian investors can access to Brazilian bonds at any time of day. Thanks
to technological interconnection, the financial is a permanent open market.
Moreover, one of the consequences of technology, of globalization itself is related to the
standardization of the elements that compose it. As will be discussed in another of the primers,
technological advances have enabled human interaction to the levels that have nowadays. It has
allowed large companies to maximize their profits and individuals maximize their communication
to anyone in the innermost corner of the world geography; it separates just a screen not only for
accessing to real-time news around the globe but also, being part of them.
Thanks to technology, the world today is a much smaller place than before.

2.6. Environment

Figure 8.Sustainability

Source: Rawpixel (s.f )

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The environment is the element that constitutes the context in which globalization unfolds.
Nothing more global than the globe itself. No matter, where in the world toxic gases are expelled
to the atmosphere, for nature there are no national borders and, eventually, will have the local
behavior global consequences?
The case of China is an exemplary case with regard to environmental pollution. The eastern
country is today responsible for most pollution in the world. The gas of its industries expelled to
the air, toxic waste dumped into rivers and seas, an unprecedented amount of solid waste that
aggravates the detriment of water sources and the further destruction of land in a natural and
historical wealth unmatched by construction of the world's largest dam.
However, taking up the case of China, it is argued that developing countries to implement
environmental policies will not have the same opportunities as already had developed economies
to achieve the levels hold today. The rules are not the same for each other.
It is necessary that a global environmental awareness is generated. It is not viable to continue
with current levels of industrialization, sooner or later will be too late to recover the damage to
the planet. It's time to develop new techniques of sustainable development, in order to improve
competitiveness without infringing upon our home.

Figure 9. Environment

Source: Vampy1 (s.f)

Globalization is a multidimensional process, it involves almost all aspects of human activity,

because of this, it is very complex to analyze without prior delimitation. Likewise, there is no

GLOBALIZATION AND COMPETITIVENESS 13

 clarity or at least there is no consensus in the debate on the origins of globalization. However,
analysts and theoreticians agree that it is a process happening nowadays and there is no turning
back.
As in most issues related to social sciences, in this a heated debate is presented between
supporters and opponents of the way in which globalization is developing in our time. There are
arguments that suggest that it is the solution to problems related to poverty and development,
however, there are also arguments that accuse the currently model of globalization as the main
cause of inequalities in the world.

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REFERENCES
Encyclo. (2016, August 08). Encyclo. Retrieved from http://www.encyclo.co.uk/
Keynes, J. M. (2016, August 05). Library of Economics and Liberty. Retrieved from The Economic
Consequences of the Peace. 1920:
http://www.econlib.org/library/YPDBooks/Keynes/kynsCP2.html
Wolf, M. (2016, August 05). goodreads. Retrieved from Why Globalization Works:
https://www.goodreads.com/author/quotes/67708.Martin_Wolf
World trade organization. (2016, August 05). World trade organization. Retrieved from World
trade in 2015-16:
https://www.wto.org/english/res_e/statis_e/wts2016_e/WTO_Chapter_03.pdf

List of figures
Everythingpossible (s.f) empresario de la mano de trabajo con el nuevo espectáculo de la
estructura social de la red inform?tica moderna [Foto de archivo] Recuperado de
http://es.123rf.com/search.php?word=19646757&srch_lang=es&imgtype=&Submit=+&t_word
=&t_lang=es&orderby=0&mediapopup=19646757
Radiantskies (s.f) Nube palabra abstracta por la globalización económica con etiquetas y
términos relacionados [Foto de archivo] Recuperado de
http://es.123rf.com/search.php?word=16678723&imgtype=0&t_word=16678723&t_lang=es&o
riSearch=19646757&orderby=0&srch_lang=es&mediapopup=16678723
Boiko Ilia (s.f) Vector moderno diseño plano ilustración de la gente de la comunidad social de la
red [Vectores]Recuperado de
http://es.123rf.com/search.php?word=35942110&imgtype=0&t_word=35942110&t_lang=es&o
riSearch=16678723&orderby=0&srch_lang=es&mediapopup=35942110
Radiantskies (s.f) Nube palabra abstracta para la globalización cultural con etiquetas y términos
relacionados [Foto de archivo]Recuperado de
http://es.123rf.com/search.php?word=17351294&imgtype=0&t_word=17351294&t_lang=es&o
riSearch=35942110&orderby=0&srch_lang=es&mediapopup=17351294
studioarte2015 (s.f) globo azul Internacional [Vectores] Recuperado de
http://es.123rf.com/search.php?word=48847149&imgtype=0&t_word=48847149&t_lang=es&o
riSearch=17351294&orderby=0&srch_lang=es&mediapopup=48847149
Cienpies Design (s-f )Medios de comunicación social de la red de negocios de éxito a mano
Vector archivo de capas para la manipulación fácil y personalizada para colorear [Vectores]
Recuperado de

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 http://es.123rf.com/search.php?word=13787822&imgtype=0&t_word=13787822&t_lang=es&o
riSearch=48847149&orderby=0&srch_lang=es&mediapopup=13787822
Rawpixel (s.f ) Sostenibilidad Ambiental Conservación Ecología Concepto [Foto de archivo]
Recuperado de
http://es.123rf.com/search.php?word=41215089&imgtype=0&t_word=41215089&t_lang=es&o
riSearch=13787822&orderby=0&srch_lang=es&mediapopup=41215089
Vampy1 (s.f) Manos con mapa del mundo, mapa del mundo atraídos [Foto de archivo ]
Recuperado de
http://es.123rf.com/search.php?word=48861068&imgtype=0&t_word=48861068&t_lang=es&o
riSearch=41215089&orderby=0&srch_lang=es&mediapopup=48861068

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