Globalization: Impact on Economy, Society, and Culture
Topic 13: A Globalized World
1.1. Globalization and Advancement of Communication Technologies
New communication technologies have made economic globalization possible. At the global level, this has led to:
- Industrial relocation and dislocation: Industries can be located anywhere in the world where there are more advantages, and they can split their operations.
- Increased information services and culture: Essential for understanding markets, encouraging consumption, and navigating communication networks.
- Geographic Mobility: People can move more freely around the world.
- Free movement of capital: Capital is invested in countries without government approval. There are two types of capital:
- Productive: Businesses investing in industry or services.
- Financial: Operates in short- and long-term markets and may cause economic crises if removed promptly.
1.2. The Liberalization of Financial Markets
In financial markets, you can buy or sell securities, stocks, and futures options. They are based on specialized markets like the stock exchange. The liberalization of financial markets resulted from measures adopted in 1979 by the U.S. and UK governments. Since then, capital flows through markets worldwide. Within the financial market, a very fast capital market has emerged. Money is invested in the stock markets of countries offering favorable opportunities. Capital investment involves buying stocks of publicly traded companies, which can generate significant profits but also lead to speculation and potential crises.
1.3. The Concentration of Capital
Global energy is characterized by large multinational companies that produce and increase their capital to adapt to monopoly or oligopoly positions in the markets. These are formed by internal growth, mergers, unions with other companies, or acquisitions.
1.4. The Expansion of Businesses
Businesses’ production and management centers are located in various countries. This creates interdependence between companies, production systems, and territories. Investment by a company in another country generates productive capacity, employment, etc. Companies investing in other countries share benefits.
1.5. Social Globalization
Globalization has led to significant social changes. Some examples include:
- The incorporation of women into the paid labor force: This, along with new family models and demographic behaviors, has altered traditional family life.
- Increased consumption levels: The global supply of products alters consumption patterns, with mass dissemination of similar products leading to uniformity.
- The labor market: It also globalizes with migration.
1.6. Cultural Globalization
Globalization affects culture in areas such as:
- Science: Global research centers establish links to carry out their educational goals. Companies increasingly invest in R&D. When new discoveries are made, they are patented, and those who wish to use them must pay a fee.
- Arts and sports: Easy access to information through media allows for global following of artistic events, sports, etc., ensuring widespread awareness of new developments.
2. Inequality in the World
2.1. Regional Inequalities in the World
Different levels of development explain the existence of countries outside the globalized system:
- Developing countries: States with low living standards and high population growth. Their economies are primarily agrarian, with scarce industrial development, leading to high poverty levels. This group includes the G-5: Brazil, China, India, Mexico, and South Africa.
- Impoverished countries: Far from collective well-being, these countries experience poverty and technological backwardness. Examples include sub-Saharan countries exploited by developed nations, and countries mired in tribal wars, forgotten and outside the system.