globalization and its consequences - waseda university · 2018/7/10 international political economy...

2018/7/10 International Political Economy

Globalization and Its Consequences

Min Shu

Waseda University

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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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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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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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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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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.

2018/7/10 International Political Economy 11

Case study: iPod and Globalization

2018/7/10 International Political Economy 12



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


Actors: state, international organizations, private enterprises,

NGOs. Local self-governing bodies

Governance levels: local, sub-regional, state, regional, global

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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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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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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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globalization and its consequences - waseda university · 2018/7/10 international political economy...

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