2018/7/10 International Political Economy
Globalization and Its Consequences
Min Shu
Waseda University
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2018/7/10 International Political Economy
Outline of the lecture
What is globalization?
Trade liberalization, capital movement, global governance
Information revolution
The impacts of globalization
Macro-economic policies
Cultural loss
Race to the bottom
Multi-level governance
Anti-globalization movement
Group Presentations
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2018/7/10 International Political Economy
What is globalization
What is globalization The fact that different connections being established not just
beyond state borders but on a global scale, and the influences of such connections.
Economic globalization Trade and financial liberalization
Global value chains
Social globalization The expansion of social space
Information sharing and cultural exchange
Political globalization Linkage between domestic and international politics
Environmental, immigration and terrorist problems
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Trade liberalization, capital movement
and global governance
Trade liberalization
WTO-based multilateral trade negotiations
Bilateral and mini-multilateral preferential trade agreements,
such as FTAs and EPAs
Free movement of capitals
Overseas direct and indirect investment
Foreign exchange market
Changing structure of global governance
Bretton Woods System global financial coordination
GATT-based multilateral trade negotiations bilateral,
minilateral and mega-FTA negotiations
The UN rise of multiple stakeholders and INGOs
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Global flow of people
Short-term overseas tourism
Tourist and business trips
Tourism industry
International business centers
Mid- and long-term foreign residents
Transnational flow of labors
Economic migration direction: four major pathways
Migration types: high-skilled migration, low-skilled migration
Legality of migration: legal and illegal migrants
Preventing and dealing with terrorism
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Information revolution
What is information revolution? The transformation of human society and lives through the
advancement of information technologies.
Spread of telephone, telegram and internet
Use of computers and other electronic devices
Information revolution and globalization Dramatic reduction of information exchange cost
The global space of economy, politics and society
Facilitating the activities of international organizations, transnational institutions and INGOs
Sharing production, trade, and financial information
Strengthening the link between domestic and the international
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The impacts of globalization
The impacts of globalization Deepening of global economic integration
Increase of cross-cultural communication
Diversification of political actors
Trans-nationalisation of (domestic/local) issues
The pros and cons and globalization Advantages: enhancing economic efficiency, expand
individual freedom, facilitating inter-state cooperation
Disadvantages: excessive business competition, labor unemployment, ineffective domestic economic policies, transnational financial risk, cultural loss, spread of epidemic diseases, and environmental impacts
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2018/7/10 International Political Economy
Macro-economic policies
International movement of capitals
Financial deregulation
Overseas capital transfer
Cross-border investment (seeking higher returns)
Ineffectiveness of macro-economic policies
Stimulus economic policies growing fiscal deficit
potential macro-economic risk
Tax levied on capitals capital flee
Social welfare policies higher labor cost outsourcing
Monetary policies (esp. interest rate policy) changing the
borrowing cost international capital movement
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2018/7/10 International Political Economy
Cultural loss
Cultural exchange and competition
Language and contents of cultural exchange
English becomes a world language
Growing uniformity of our daily lives
The Americanisation of global culture
Hollywood films
Big Mac
…
Maintaining cultural diversity
UNESCO’s initiative (2001):
‘Universal Declaration on Cultural Diversity’
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2018/7/10 International Political Economy
Race to the bottom
Global value chains and their influences Global allocation of raw materials, capitals and technologies
Production (to be) located in the cheapest place
Labor rights Reducing labor cost social dumping
Salary, social welfare, insurance (health, employment, pension)
Deterioration of working environment
Challenges of environmental problems Cost reduction and environmental damages
Corporate social responsibility (CSR) Corporations should be accountable not only to the share-
holders, but also to the societies in which they operate
Rules/Principles related to human rights, labor conditions, environmental protection, and fighting corruption
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Case study: iPod and Globalization
Linden et al., (2011) ‘Innovation and Job Creation in a Global Economy: The Case
of Apple’s iPod’, Journal of International Commerce and Economics.
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Case study: iPod and Globalization
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2018/7/10 International Political Economy
Multi-level governance
Globalization and public policy-making
Public policies
Economic, cultural, energy, agricultural, etc.
Globalization reshapes public policy-making
Public policy: decision-making and implementation
Redefining the role of the state
The state loses its monopoly of public policy-making: sovereignty
Necessary inter-state coordination global governance
Multi-level governance
Actors: state, international organizations, private enterprises,
NGOs. Local self-governing bodies
Governance levels: local, sub-regional, state, regional, global
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2018/7/10 International Political Economy
Anti-globalization movement
Opposition to globalization
The problems of globalization
Focusing on issues such as environment, development,
human rights, and cultural diversity
The targets of anti-globalization movements
International organizations: WTO, World Bank, IMF
G7, G8, G20
Multinational corporations
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Anti-globalization movement
No Logo vs. Pro Logo
Naomi Klein
“No Space, No Choice, No Jobs”
The Economist
“Brands are good”
The globalization of anti-globalization movements The transnationalisation of anti-globalization movements
The left-right cleavage no longer a dividing line in anti-globalization politics: opposing neo-liberalism on the left, maintaining domestic/local identity on the right
From developing countries to developed countries
Feminism and anti-globalization
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Anti-globalization movement
The WTO meeting in Seattle in 1999
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Group Presentations
Group 15
‘The Logics of Economic Globalization’
Group 16
‘Brexit, Trump and Anti-Globalization
Populism’
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