The Definition of Globalisation - Term Paper Example

Identify and examine three ways that contemporary globalisation impacts on international relations I. Introduction The structure and the operation of the markets around the world have imposed the cooperation between the states in order to participate equally (at the highest possible level) in the growth achieved through the relevant commercial activities. In this context, the expansion of globalisation around the world has been taking place gradually but continuously and has affected all countries globally no matter their level of development or their social or political cultures. The three main areas where globalisation has made its presence more intense are the business activities, the political structure and the legal framework as applied in the national and the international level. Current paper examines the above three aspects trying to identify possible points of interaction as well as areas that would need improvement in order to serve more effectively the national (as well as the international) targets. II. Globalisation – definition and characteristics The definition of globalisation has been an issue that examined a lot in the literature. According to Guillen globalization can be characterized as ‘a process fuelled by, and resulting in, increasing cross-border flows of goods, services, money, people, information, and culture’. Under a more analytical context, globalization could also be viewed as ‘a decoupling or “distanciation” between space and time’ or just ‘a “compression” of space and time, a shrinking of the world’ (Guillen, 2001, 235). The above researcher has also accepted the views of geographer David Harvey (1989) and political scientist James Mittelman (1996) who observed that ‘globalization entails a "compression" of space and time, a shrinking of the world’. Moreover, it is noticed that the globalization has also an informational aspect under the influence of which the global economy becomes ‘an economy with the capacity to work as a unit in real time on a planetary scale’. On the other hand, Gereffi et al. (1994, 2) regarded globalization from a totally different aspect and stated the theory of ‘global commodity chains’ which ‘consist of sets of inter-organizational networks clustered around one commodity or product, linking households, enterprises, and states to one another within the world-economy; these networks are situationally specific, socially constructed, and locally integrated, underscoring the social embeddedness of economic organization...Specific processes or segments within a commodity chain can be represented as boxes or nodes, linked together in networks; each successive node within a commodity chain involves the acquisition and/or organization of inputs (e.g. raw materials or semi-finished products), labour power (and its provisioning), transportation, distribution (via markets or transfers) and consumption’. However, the views Gereffi et al. as presented above can be characterized as more commerce – connected and for this reason they could only partially be used when conducting a more general examination of the nature and the content of the above term. In the same context, Ernst and Kim (2001, 1) refer to ‘a particular organisational innovation, namely networks that combine concentrated dispersion of the value chain across firm and national boundaries, with a parallel process of integration of hierarchical layers of network participants’. However, globalisation has been considered as having a series of roles in the international community. Under these terms, Larner et al. (2004) stated that globalization could be considered as ‘governmentality’, i.e. as ‘a governmental rationality’. This character of globalization can lead to a particular series of definitions regarding this phenomenon. Moreover, the nature and the role of globalization to the structure and the operation of the particular political systems around the world can justify its definitions as "time-space compression" or as the ‘increasing predominance of transcontinental or interregional flows and networks of activity, interactions and the exercise of power’ (Larner et al., 2004, 495). Regarding especially the political character of globalisation as presented above by Larner et al., it should be noticed that in any case we cannot characterize globalization as a positive or negative element of the social and political development that governs the modern societies (Gerle, 2000). There are cases that globalization has helped to face important issues (in all areas of everyday life) but also particular occasions where globalization has led to severe problems (Morgan, 2002). As Gerl has accepted ‘contemporary processes of globalization have several dimensions or faces: technological, cultural, religious, economic and political; None of these is in itself good or bad; All should be understood as ambiguous, with potential for good and evil, but in the current phase of globalization it is important to distinguish the Janus faces of globalization and identify the potential to pursue the good’ (Gerl, 2000, 158). The views of the above researchers prove that globalisation has a multi-dimensional character and can be observed in all human activities that take place in the international marketplace. III. Effects of globalisation on international relations According to the views of literature, globalisation has a significant influence on many parts of international relations. A sector that seems to be influenced at a significant level from the globalisation is the commerce conducted both nationally but also in the global market. In this context, a series of initiatives has been considered as necessary in order to successfully face the problems appeared in the international markets. Moreover, it has been stated (Ihator, 2000, 38) that ‘globalization of business has created the need for international public relations practitioners to identify, study and understand the world views, mindsets, and habits of their global publics in order to effectively communicate; communication styles and meaning, as well as realities, as perceived by individuals are culturally induced’. The above assumptions are in accordance with those of Tan (2002) and Taylor (2002) who supported the importance of culture to the success of an international business strategy (and analogically to a firm’s international marketing strategy). However, the above researchers highlighted the importance of the sufficient and the appropriate research before designing and applying any business strategy in the international field. Towards this direction, it has been stated that ‘the multinational enterprises need to adapt their management practices to the national cultures in which they operate in order to achieve high business performance; work units that are managed consistent with national cultural expectations will be better performing than work units whose management practices do not fit the national culture’ (Newman et al., 1996, 753). It should also be noticed that the influence of globalisation is expanded to all aspects of business activities, including its marketing. Norburn et al. (1990, 451) tried to explore the relationship between the marketing strategies applied by firms and the culture. For this reason they conducted a study examining ‘the ways in which senior executives in four countries which shared a common language-United Kingdom, United States, Australia and New Zealand-characterised both their firms marketing effectiveness, and corporate culture and beliefs; results give support to those theorists who advance cultural specificity as the primary moderator of top managerial attitudes, but also emphasise that the best predictor of marketing effectiveness is similar in all four nations-the primacy of the importance of people, and with quality’. The most characteristic example of the influence of globalisation on the business activities is the creation and the development of e-commerce. Globerman et al. (2001) examined the relation between globalization and e-commerce to the extent that the former is been ‘cultivated’ by the latter. Such an assumption can be potentially explained by the fact that Internet ‘facilitates information gathering and processing at the local level’ and in this way it can ‘enhance the competitive positions of multi-locational companies, especially those companies headquartered in leading markets’. However, such a view can be opposed by the fact that e-commerce can also promote not only the international but also the domestic commerce. Under this context, e-commerce is not referred only to the global markets but also to the national ones and cannot therefore be considered as a major tool of promotion of the globalization movement. The interaction between globalisation and business activities is also supported by Lenartowicz et al. (1999, 790) who stated that the international business strategies (and so the international marketing) can be explained through a multi-method framework which ‘merges two main methodological approaches suggested by the cross-cultural literature: qualitative, supported by cultural anthropology, and quantitative supported by cross-cultural psychology; the qualitative approach, in the format of Ethnological Description, establishes the group being studied as a culture and usually provides information about its geographic location as well as the descriptive values, beliefs and norms; the quantitative approach uses Direct Values Inference to assess the values of the individuals of the cultural group, selected for measurement through Validated Regional Affiliation’. Another sector that has been influenced from globalisation is the political one. More specifically, political systems around the world seem to interact and exchange practices and scopes in order to face problems that show points of similarity. Schwartman (1998) examined the role of globalization to the democratization of the countries around the world. At a first level he defines the ‘democratization’ as ‘a group of transitions from nondemocratic to democratic regimes that occur within a specified period of time and that significantly outnumber transitions in the opposite direction during that period of time; it may also involves liberalization or partial democratization in political systems that do not become fully democratic’. Under these conditions, globalization can be the starting point of democratization to the extent that the political ideas that are applied in the international community influence both ‘who rule and those who are ruled’ (Schwartzman, 1998, 159). Furthermore, it seems that ‘a neoliberal form of globalization’ has appeared which ‘intensifies competition between localities, weakens social safety nets, and generally increases socioeconomic instability’ (Nevins, 2001, 138). Regarding the interaction between globalisation and the political structures around the world it should be noticed that it is usually difficult to be identified in accuracy and usually it can only be assumed through the appearance and the application of common practices on specific problems that appear within each state of the international community. In a similar context, globalisation has been proved to be applied in the formulation of legal rules not only in the international field (which can be justified) but also in the internal of many countries around the world. Moreover, a lot of efforts have been made in order for common legal practices to be developed globally, an issue that has to be criticized as of its appropriateness given the existence of significant differences among the cultures of the members of the international community. Mark (2001) tried to find the interaction between globalization and the legal provisions both to the national and the international level. According to his study, ‘harmonization of laws may well end up as homogenization, with the perhaps unexpected consequences of undermining the positive effects of globalization’ (Mark, 2001, 1173). The above ‘function’ of globalization has also be analyzed by Stark who studied ‘the role of international law, particularly human rights law, as it relates to the process of globalization and its effects on women’. According to the findings of his study although women are ‘a large and diverse group, the impact of globalization on them is complex and often contradictory’ (Stark, 2003, 503). The influence of globalization to the formulation of law has also been accepted by Lee (1997) who referred especially to the relation between globalization and the labour standards. A very characteristic example of the influence of globalisation on the legal area is the existence of common legal rules and practices among the members of European Union, a reality that has been doubted to a significant level as of its applicability as well as of its intervention in the internal of the member states. IV. Conclusion Globalisation has been traditionally viewed as a threat for the existence and the survival of the national cultures and practices around the world. On the other hand, in many cases (like the business area) it has been regarded as a necessary tool for the development of the national markets. This controversial view has been examined a lot both in the theoretical and empirical field and the results revealed have proved that globalisation cannot operate within specific frameworks but has a multi-dimensional character while it can also have different effects when be applied in particular areas globally. More specifically, its role may be proved both positive and negative for the international community in accordance with the structures of each specific country/ organization as well as the level of interaction with particular practices or ethics around the world. However, its existence and its influence on the international community cannot be doubted. For this reason, it should be used creatively in order to enhance the local and the international market/ cultures/ ideas and not to be constantly opposed as its elimination cannot be considered as feasible given the current structures of the national and of the international markets. References Ernst, D. and L. Kim (2001), ‘Global production networks, knowledge diffusion, and local capability formation: a conceptual framework’, Paper presented at the Nelson & Winter Conference, Aalborg, June 12-15 Gereffi, G., Sturgeon, T. J. (2004). Globalization, Employment, and Economic Development:A Briefing Paper. Rockport, Massachusetts, June 14-16, 2004 Gerle, E. (2000). Contemporary Globalization and Its Ethical Challenges. The Ecumenical Review, 52(2): 158-170 Globerman, S. Roehl, T. W., Standifird, S. (2001). Globalization and Electronic Commerce: Inferences from Retail Brokering. Journal of International Business Studies, 32(4): 749-765 Guillen, M. F. (2001). Is Globalization Civilizing, Destructive or Feeble? A Critique of Five Key Debates in the Social Science Literature. Annual Review of Sociology, 235-255 Ihator, A. (2000). Understanding the Cultural Patterns of the World -- an Imperative in Implementing Strategic International PR Programs. Public Relations Quarterly, 45(4): 38-47 Larner, W., Walters, W. (2004). Globalization as Governmentality. Alternatives: Global, Local, Political 29(5): 495-507 Lee, E. (1997). Globalization and Labour Standards: A Review of Issues. International Labour Review, 136(2): 173-185 Lenartowicz, T., R. K. (1999). A Framework for Culture Assessment. Journal of International Business Studies, 30(4): 781-796 Mark, S. (2001). Harmonization or Homogenization? The Globalization of Law and Legal Ethics - an Australian Viewpoint. Vanderbilt Journal of Transnational Law 34(4): 1173-1198 Morgan, D. (2002). Images of the Future: A Historical Perspective. Futures, 883-892 Nevins, J. (2001). Searching for Security: Boundary and Immigration Enforcement in an Age of Intensifying Globalization. Social Justice, 28(2): 132-146 Newman, K. L., Nollen, S. D. (1996). Culture and Congruence: The Fit between Management Practices and National Culture. Journal of International Business Studies, 27(4): 753-773 Schwartzman, K. C. (1998). Globalization and Democracy. Annual Review of Sociology, 24(1): 159-174 Stark, B. (2000). Women and Globalization: The Failure and Postmodern Possibilities of International Law. Vanderbilt Journal of Transnational Law, 33(3): 503-551 Tan, J. (2002). Culture, Nation, and Entrepreneurial Strategic Orientations: Implications for an Emerging Economy. Entrepreneurship: Theory and Practice, 26(4): 95-111 Taylor, C. R. (2002). What Is Wrong with International Advertising Research. Journal of Advertising Research, 42(6): 48-55 Read More