Global interactions

Globalisation: An Introduction

Globalisation is often the subject of debate in the media. What is it? Is it happening? Is it good or bad? Can it be controlled? Can it be changed? What should be the response of traditional institutions to it? are just some of the questions discussed on this theme. We see from the first two that the very nature of globalisation and, indeed, whether or not it is occurring is hotly contested.

Readings in Globalisation (An Introduction)

In the video below are set out some of the arguments about the nature of globalisation.

Key Terms in Globalisation

Civil society - Any organization or movement that works in the area between the household, the private sector and the state to negotiate matters of public concern. Civil societies include non-governmental organizations (NGOs), community groups, trade unions, academic institutions and faith-based organizations.

Core and periphery - The concept of a developed core surrounded by an undeveloped periphery. The concept can be applied at various scales.

Cultural imperialism - The practice of promoting the culture/language of one nation in another. It is usually the case that the former is a large, economically or militarily powerful nation and the latter is a smaller, less affluent one.

Food miles - A measure of the distance food travels from its source to the consumer. This can be given either in units of actual distance or of energy consumed during transport.

Globalization - “The growing interdependence of countries worldwide through the increasing volume and variety of cross-border transactions in goods and services and of international capital flows, and through the more rapid and widespread diffusion of technology” (source: IMF).

Globalization indices - The AT Kearney Foreign Policy index measures twelve variables, which are subdivided into four “baskets”: economic integration, personal contact, technological connectivity and political engagement. Nations are ranked according to a calculated globalization index. The KOF index measures three main dimensions of globalization: economic, political and social, and nations are ranked accordingly. It is designed by the Swiss Federal Institute of Technology on a yearly basis.

Glocalization - A term that was  invented to emphasize that the globalization of a product  is more  likely  to succeed when  the product or service  is adapted specifically to each locality or culture in which it is marketed. The increasing presence of McDonald’s restaurants worldwide is an example of globalization, while changes made to the menus of the restaurant chain, in an attempt to appeal to local tastes, are an example of glocalization.

GNI - Gross national income (now used in preference to gross national product—GNP). The total value of goods and services produced within a country together with the balance of income and payments from or to other countries.

Outsourcing - The concept of taking internal company functions and paying an outside firm to handle them. Outsourcing is done to save money, improve quality or free company resources for other activities.

Time–space convergence - The reduction in the time taken to travel between two places due to improvements in transportation or communication technology.

Transnational corporation (TNC) - A firm that owns or controls productive operations in more than one country through foreign direct investment.(1)