14. Economic Globalization
Information Sociology
2014048640 Jeon Seung Hyeon
[Title: Globalization and Unfair Trade through Coffee Video Made in EBS]
(Source : https://www.youtube.com/watch?v=A9bgqOdEL34)
1. Introduction
Economic globalization is one of the three main aspects of globalization, along with political globalization and cultural globalization, which means the free movement of goods, capital, services, technology and information. With the strengthening of cross-border mobility of goods, services, technology and capital, the economic integration and interdependence of national, regional and local economies is increasing worldwide. While globalization is an extensive series of processes involving networks of economic, political, and cultural exchanges, modern economic globalization is driven by the rapidity of information in all types of production, marketization, and technological development.
Economic globalization consists mainly of globalization of production, finance, markets, technology, organizational systems, institutions, enterprises and labor. While economic globalization has expanded since the advent of transnational trade, it has increased steadily as communications and technology advances in the framework of the General Agreement on Tariffs and Trade and the WTO framework. Reduce trade barriers and open current and capital accounts. The economic boom leads to greater integration with the majority of the world through foreign direct investment, lowering the cost of doing business, reducing trade barriers, and in many cases, the support of developed countries that support overseas migration.
Globalization will dramatically increase income and economic growth in developing countries, lower consumer prices in developed countries, and change the balance of power between developing and developed countries, affecting the culture of each country. And as the position of production has changed, many jobs have resulted in crossing borders, and some workers in developed countries need to change jobs.
2. Key concepts and phenomena
1) Historical context
International commodity markets, labor markets and capital markets constitute the economy and define economic globalization.
From 4000 BC people were trading livestock, tools and other items. In the Sumerian civilization of Mesopotamia, the token system was one of the first forms of commodity money. The labor market consists of workers, employers, wages, income, supply and demand. The labor market is as old as the commodity market. The first labor market provided workers to grow livestock to grow crops and sell them later in the local market. Capital markets have emerged in industries that require resources that transcend the resources of individual farmers.
2) Influence of technology development
Globalization connects all the people of the world over geographical boundaries. This progress of economic globalization has been confounded by the First World War. The majority of the world's economies have established protectionist economic policies and introduced trade barriers to delay trade growth until the recession. This has slowed global trade and has even created other countries with immigrant caps. Globalization has not been fully resumed until the 1970s when the government began to emphasize trade interests. The development of technology today has led to the rapid expansion of world trade. Three factors, such as the development of science and technology, market-oriented economic reform and the contribution of multinational corporations, have accelerated economic globalization.
In 1956, the invention of container transportation was a major part of the reduction of shipping costs with increasing ship size.
In 1956, the invention of container transportation was a major part of the reduction of shipping costs with increasing ship size.
(Source : https://namu.wiki/w/%ED%8C%8C%EC%9D%BC:attachment/%EB%B6%80%EC%82%B0%ED%95%AD/busanport.jpg)
*(Original Source : Busan City Hall Provided)
3) Policy and Government Impact
Economic globalization is one of the three main components of globalization that is common in academic literature and the other two are general terms of globalization as well as political globalization and cultural globalization.
The GATT / WTO system has encouraged participating countries to reduce tariff and non-tariff barriers to trade. The government has transformed the economy from central planning to market. These internal reforms have allowed companies to adapt more quickly and take advantage of technology change opportunities. Multinational corporations have reorganized production to take advantage of these opportunities.
Labor-intensive production moved to lower labor costs, followed by other functions as skill levels increased. The network has increased the level of wealth. With a global system of consumption and geographical mobility that is very dynamic and a strong ripple effect, the London Stock Exchange has established new deregulation rules that enable the market's global interconnections, expecting a significant increase in market activity. This case became known as Big Bang finance theory.
The GATT / WTO system has encouraged participating countries to reduce tariff and non-tariff barriers to trade. The government has transformed the economy from central planning to market. These internal reforms have allowed companies to adapt more quickly and take advantage of technology change opportunities. Multinational corporations have reorganized production to take advantage of these opportunities.
Labor-intensive production moved to lower labor costs, followed by other functions as skill levels increased. The network has increased the level of wealth. With a global system of consumption and geographical mobility that is very dynamic and a strong ripple effect, the London Stock Exchange has established new deregulation rules that enable the market's global interconnections, expecting a significant increase in market activity. This case became known as Big Bang finance theory.
3. Discussion point
Economic globalization has had many positive impacts on the world, but it was as negative as that. In particular, there is a problem of unfair trade and very low profits for primary producers when exporting to developed countries in developing countries.
Fair trade is offered as an alternative. Fair Trade is a social movement based on the market model of international trade in order to facilitate the payment of fair prices as well as social and environmental standards in various regions in relation to the production of various goods. The movement focuses specifically on exports from developing countries to advanced countries, mainly handicrafts, coffee, cacao, nose, wine and fruit.
The purpose of fair trade is to work with producers and workers who have been thrown away from the competition carefully, to help them escape from vulnerable conditions so as to ensure their stability and economic self sufficiency. It is also aimed to give them the ability to become self-reliant by allowing them to own shares in their own organizations and to play a more active and broader role in the international arena in order to gain even more fairness in international trade.
Fair trade is offered as an alternative. Fair Trade is a social movement based on the market model of international trade in order to facilitate the payment of fair prices as well as social and environmental standards in various regions in relation to the production of various goods. The movement focuses specifically on exports from developing countries to advanced countries, mainly handicrafts, coffee, cacao, nose, wine and fruit.
The purpose of fair trade is to work with producers and workers who have been thrown away from the competition carefully, to help them escape from vulnerable conditions so as to ensure their stability and economic self sufficiency. It is also aimed to give them the ability to become self-reliant by allowing them to own shares in their own organizations and to play a more active and broader role in the international arena in order to gain even more fairness in international trade.
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