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Chapter 1. Introduction

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Central European University Press

Globalization and Nationalism

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1 Globalization and nationalism have often been evoked as the two defining features of the modern world. The former represents rising deterritorialization, integration and universal interconnectedness while the latter arguably represents fragmentation, localization and isolation. The coexistence of these two, arguably opposing, tendencies became particularly problematic in the aftermath of the Cold War, when the world seemed to be struggling with the contradictory processes of nationalist fragmentation on the one hand and global integration on the other. As Ian Clark observed: “the 1990s displayed marked tendencies in both directions at the same time; if anything the economic dimensions of globalization have grown vigorously but they coexist with the unforeseen resurgence of nationalism, which has ruptured the international community, as well as some of its constituent states.” 1 The simultaneous rise of nationalistic and globalizing tendencies came to be seen as one of the central paradoxes of the past decade taking many observers by surprise. According to Michael Ignatieff, “with blithe lightness of mind, we assumed that the world was moving irrevocably beyond nationalism, beyond tribalism, beyond the provincial confines of the identity inscribed in our passports towards a global market culture which was to be our new home. In retrospect, we were whistling in the dark. The oppressed has returned and its name is nationalism.” 2 Similarly Stuart Hall has characterized the resurgence of nationalism alongside globalization as a “remarkable reversal, a most unexpected turn of events.” 3 The sense of paradox, according to Anthony Smith, has been heightened by the fact that in the Western half of Europe the national state appeared to be divesting itself of its powers while in the Eastern half it was eagerly reappropriating those same powers “after the long Soviet winter of political passivity.” 4

2 The collapse of communist regimes in Eastern Europe provoked a major reappraisal of nationalism and its political significance. Suddenly, nationalism became the elemental force to be reckoned with in the post-Cold War world order, challenging its stability by reshaping boundaries, unleashing wars and disintegrating multinational states. The Western world also appeared to have succumbed to the reinvigorated appeal of nationalist politics. Minorities and non-state peoples of Western Europe such as the Basques and Catalans, Scots and Welsh have reasserted their rights to national autonomy and, in some cases, national independence. Extreme right wing political parties have been gaining political support and popularity, claiming nationalism as their core ideology. In the words of Malcolm Anderson, “a demon of extreme and aggressive nationalism, which may in the stable Western democracies be believed dead, was unleashed… The 20 th century had commenced with ‘an age of nationalism’ and was terminating with a resurgence of nationalism, with destabilizing consequences.” 5

3 Understanding the relationship between globalization and nationalism is the main purpose of this work. In doing so it tries to address the following main questions: What is the link between globalization and nationalism? How does it translate into reality and what empirical evidence supports the existence of such a relationship? And what does it tell us about the nature of contemporary nationalism? There is a vast literature dealing with globalization and nationalism both separately and in connection with each other. A majority of commentators perceive the strength and resilience of nationalism in the era of globalization as a paradox of a world that is simultaneously coming together and coming apart. In this view globalization and nationalism are contradictory processes, the two opposites that are deeply connected through dialectical or causal links. Globalization is arguably generating nationalist backlash in response to and as a counter-reaction against those globalizing tendencies that appear to threaten local cultures and identities. Nationalism appears to have found a renewed sense of purpose and meaning in the context of globalization, which is one of the reasons behind the “surprising” nationalist revival taking place around the world.

4 The basic question that has guided this work is whether the presumed clash between forces of globalization and nationalism is the only type of relationship that exists today and defines contemporary political life. Does it present a complete picture of the existing links and interconnections between globalization and nationalism or does a different relationship exist that can be uncovered through critical analysis and empirical research? The reasons for trying to identify different aspects of the relationship that could connect globalization and nationalism are both analytical and practical. Analytically, understanding the links between these two tendencies can help us better comprehend the nature of contemporary globalization and nationalism separately. It can tell us how different, if at all, contemporary nationalism is from nationalist movements of previous epochs. The different links and attitudes to globalization developed by different forms of contemporary nationalism can tell us what distinguishes different national doctrines and movements and what they have in common. By identifying the way nationalist actors perceive and engage with globalization, we may better understand how much of a challenge contemporary globalization is to the core values of nationalism and to the international system of sovereign states that nationalism underpins and upholds.

5 In practical terms, it will help to know what the sources of nationalist conflicts in the era of globalization are and what leverages are available for better addressing and preventing them. If globalization itself is the underlying cause of nationalist upheavals, discontent and ethnonational confrontations, then what policy choices are available for dealing with globalization-induced tensions and challenges? If, however, the relationship between globalization and nationalism is not exclusively that of backlash and confrontation, then globalization may present new opportunities and instruments for global actors to positively influence local conflicts and even effectively contain and de-radicalize nationalist politics. In this context, global actors such as international organizations may be tasked with effective conflict prevention and conflict resolution activities. Treating globalization as an ungovernable, impersonal force that is ever-present and ever so powerful makes it an easy scapegoat and a convenient cause of all current problems for which nobody in particular could be blamed. All the above shows that there is much at stake in trying to better understand both globalization and nationalism separately and in connection with each other in order to make adequate normative judgments and policy decisions.

6 This book critically examines existing literature on globalization and nationalism and puts to empirical test some of the main claims and assumptions that underpin the conventional wisdom on the subject. It then develops an alternative narrative on the relationship between globalization and contemporary nationalism and argues that forces of nationalism tend to develop pragmatic relationship with globalization that serves political and security interests of a national community. In this view, globalization and nationalism are not contradictory but complementary processes and their coexistence is neither surprising nor necessarily confrontational. This—at first sight counterintuitive—view is based on two main assumptions: the first has to do with the nature of contemporary nationalism and the second with the impact of globalization on the system of nation-states to which nationalism is inextricably connected. I argue that nationalism is neither cultural nor exclusively defensive and isolationist force. Its relevance is specific to the modern, pluralistic system of sovereign states where it has fulfilled the function of a founding ideology or a kind of “master doctrine.” 6 It provides reasons and means for any community to survive and achieve political power and recognition in the existing system. Because nationalism is deeply connected to the specific international environment it has an inherently outward-looking, internationalist dimension, which precludes it from becoming a force of isolation and closure. The interests of security and political competition explain why forces of nationalism engage and often promote globalization, which they see not as threatening but rather as furthering their objectives. Such relationship between globalization and nationalism in turn points to the fact that globalization is not such a threat to the nation-state as it is often presumed and neither does it amount to the fundamental transformation of the international system which these states constitute. The rest of this introductory chapter further outlines the structure and central arguments put forward in this book. It also looks at its theoretical and methodological underpinnings and introduces the two case studies that have formed an important part of the research.

1.1 Central Arguments

7 The first part of the book is concerned with putting together the socalled globalization hypothesis on the basis of the reviewed literature. As mentioned above, much has been written on how globalization is involved in generating various types of nationalistic responses but the arguments that constitute this hypothesis are spread throughout the literature on both globalization and nationalism and tend to have a variety of different authors. Chapter 2 reviews most of these arguments identifying what the main causal mechanisms are that link globalization and nationalism in this particular way and what they tell us about the nature of contemporary nationalism. Chapter 3 takes issue with some of the main assumptions of the globalization hypothesis as it emerges from the literature and engages in the critique of both its causal links to nationalism and to the understanding and interpretation of contemporary nationalism that it offers. Main tenants of the globalization hypothesis are then further tested on the cases of Georgian and Basque nationalisms.

8 Chapters 4 and 5 represent case studies of two “really existing” nationalisms from both Eastern and Western Europe. The first is the case of Georgian nationalism, which is taken as an example of resurgent, post-communist nationalisms that have arguably resurfaced with great vigor in the post-Cold War era. The second is the case of Basque nationalism, which represents nationalism of Europe’s stateless nations that have long historic roots but have arguably been experiencing a particular revival in the context of globalization. The main reason behind selecting these two different types of nationalism is to have wideranging material for observation and analysis, and for exploring links between globalization and nationalism under two very different sets of circumstances. This chapter returns to a more detailed discussion of the selection of cases and methodology used in the case studies later.

9 In both Georgian and Basque cases, the causes of nationalism were largely linked to historic and endogenous processes and less to globalization and its influences. At the same time, the two coexist simultaneously not in contradiction to each other but rather in a mutually beneficial and complementary manner. In both Georgia and the Basque Country, nationalism emerges as a force promoting and reinforcing rather than resisting globalization. Engaging with globalization forms an integral part of the very nationalist action and discourse. Contrary to the popular globalization hypothesis, therefore, this book argues that contemporary nationalism can serve as one of the major globalizing forces. Chapter 6 reflects findings of the case studies and explains why such a relationship is possible and what its practical and normative implications are.

10 Exploring the links between globalization and nationalism also points to the diversity of contemporary nationalism—different manifestations of nationalism engage in different relationships with forces of globalization. This study highlights how firmly nationalism is entrenched in the existing international system and argues that on the mere example of its radical varieties, nationalism cannot be discarded as a generally anti-system phenomenon which mainly aims at fragmentation, isolation and disintegration of states. In the context of the current international system, nationalism enjoys unrivalled relevance because it is linked to the very set up and nature of its constituent political communities, i.e. states. It is important to not only constitute oneself as a nation to have a legitimate claim on statehood but also to be recognized as such by other nations—members of the international community. Nationalism, therefore, is not simply about the preservation of national culture and identity but it is equally about seeking recognition for this very culture and identity by others, a process that requires interaction, not isolation. In this sense, relevance of nationalism is contingent on the specific international context and a degree of internationalism is inherent to its nature.

11 Such an interpretation of nationalism also makes its coexistence with globalization less puzzling. The “paradox” of nationalism in the era of globalization is based on the assumption that nationalism is, by definition, a force of isolation and protection that is incompatible with globalization and its integrationist tendencies. However, if we are to accept the existence of more political, pragmatic, outward looking, and internationalist elements of nationalism, then there is no reason to present them in binary contradiction whereby one is expected to prevail over the other. This is the picture of the world struggling between the forces of Jihad and McWorld, but there also exists a different picture in which forces of nationalism and globalization engage in an alliance which is mutually advantageous and is largely overlooked against the prevailing view of the two axial forces clashing with each other at every point. 7

1.2 Theoretical Underpinnings and Methodology

12 The theoretical framework used in this book represents a combination of positivism and constructivism. It implies belief that causal relationships exist and uncovering them has a significant explanatory value. At the same time, however, it admits discourse as a variable and acknowledges social constructions of non-observable, underlying structures. This broadly constructivist approach reflects a number of theoretical commitments. First, it does not take existing international structures as given or “natural” but sees them as defined by specific social practices and embedded in specific knowledge and intersubjective meanings shared by social actors. Second, in explaining certain political actions, policy choices and calculations, it pays attention to an actor’s identity, values and ideological commitments. Concepts such as prestige, legiti macy, dignity, recognition and respect are taken as significant in understanding the “rationality” of nationalist actors or leaders of revisionist states (“value rational” behavior in Weber’s terms). Third, it follows that this theoretical approach accepts the role of ideas in explaining and understanding political action. For instance, this work shows how ideational and discursive aspects of globalization have come to play an important role in generating reactions and responses. As Andrew Hurrell points out “even if we suspect that appeals to political ideas, to legal principles, and to moral purposes are no more than rationalizations of self-interest, they may still affect political behavior because of the powerful need to legitimate action.” 8

13 In light of the above, this work relies on an in-depth, qualitative analysis, using the case study method. Such an approach is particularly well suited for exploring links between globalization and nationalism that are hard to measure and quantify. It also allows for the combined use of solid, “scientific” data such as statistical indicators, election results and polling figures with impressions from the field created through field visits, open-ended interviews, media reports, discourse and content analysis.

14 The selection of Georgian and Basque cases responds to the two different streams in the globalization literature: One that argues for post-communist nationalism as the main evidence for the resurgence of nationalism in the context of globalization; and the other, which suggests the reinvigoration of traditional nationalist movements such as the Basque, Catalan and Québecois through the processes of globalization. In addition, both Georgia and the Basque Country can be treated as the “most likely cases” for those who argue for the growing strength and power of nationalism under the influences of globalization. 9 The Georgian case exemplifies post-communist nationalism that experienced a dramatic upsurge with violent consequences following the downfall of the Soviet Union and accompanying slow integration into global processes. Georgia’s transition to the market economy and in corporation into global economic and political processes has been both dramatic and painful; its state-building project is still underway and the country faces the threat of further fragmentation under both external pressures and internal ones from competing minority nationalisms. In addition, Georgia is a good example of a fluctuating nationalist mobilization before and after the Soviet collapse, which could shed some light on how the popular support and political importance of nationalism can vary in relation to globalization.

15 The Basque case responds to another claim that globalization is involved not only in the production of new cradles of nationalism such as those of Eastern Europe, but also in the reinvigoration of old, minority nationalisms in the developed, Western world. As Philip Spencer and Howard Wollman observed, francophones in Québec, Basques and Catalans, Scots and Welsh, as well as many ethnic and national movements in Eastern Europe and the former Soviet Union provide just some of the examples of groups asserting their national rights or demanding independence in the global era. 10 The origins and root causes of Basque nationalism date back to the end of the 19 th century and long predate globalization. However, its intensification and militarization occurred after Spain embarked on the process of democratization, opening up to foreign influences and engaging in global integrative processes. The Basque case, therefore, also appears to confirm the globalists’ main assumption that with increasing globalization nationalism tends to intensify, assuming a more virulent and uncompromising character. In general, the Basque case represents a fascinating case for uncovering the sources of continuous nationalist appeal in the contemporary world. Basque nationalism has shown a remarkable vitality. It lived through the years of repression and democratization, poverty and prosperity, underdevelopment and rapid industrialization, isolation and European integration, and not once has it demonstrated any signs of abating.

16 The two cases, therefore, are both relevant for this study but in two different ways. The main problem with this selection is its European bias that warrants further justification. This work started out by questioning some of the commonly held views on the relationship of globalization and nationalism which I have described as globalization hypothesis and which explains arguably “paradoxical” persistence of nationalism in today’s world with globalization and its influences. The perception of paradox was further intensified by its European context as it was going against the expectation that Europe was moving beyond supposedly passé tendencies of parochial nationalism and towards frontier-free, integrated space. As Rogers Brubaker pointed out, “Europe was the birthplace of the nation-state and modern nationalism at the end of the eighteenth century, and it was supposed to be their grave-yard at the end of the twentieth.” 11 In addition, many proponents of the globalization hypothesis argue that nationalist resurgence is a European phenomenon. Thus according to Mary Kaldor, in other parts of the world, forms of particularism may vary and take the form of religious communalism, tribalism, clanism and so forth. 12 Similarly, Kevin Robins stressed the resurgence of national, ethnic, and territorial attachments both in Eastern and Western Europe. He noted that, “in Eastern Europe we have witnessed the growth of neo-nationalism in its most militant forms, but it has also been a feature of Western Europe, with the assertion of Basque, Breton or Scottish identities.” 13 In other words, the European bias is to a certain extent an integral part of the globalization thesis, which this book takes as a starting point for its exploration of the relationship between globalization and nationalism.

1.3 Different Approaches to Contemporary Nationalism

17 A globalization-based explanation of contemporary nationalism is one among various approaches elaborated in response to an ongoing revival of nationalism and its increasing relevance in the post-Cold War international order. As Rogers Brubaker has observed, the resurgence of nationalism in Eastern Europe and elsewhere in the last decade has sparked an equally strong resurgence in the study of nationalism. 14 A number of theories have been elaborated, aimed at explaining and understanding the origins, causes, and attractions of nationalism to both the public and elites.

18 We may single out five main approaches among the latest attempts at theorizing nationalism. In the beginning of the 1990s, it was common to speak about the return of ancient hatreds and deep-seated animosities in explaining the eruption of ethnic conflicts following the collapse of the Soviet Union and the speed with which ethnocentric nationalism became a dominant political force among the former communist countries. 15 Later the focus shifted on the process of democratic transition as a possible explanation for the rise of nationalism. In this view the crucial role was played by interested political entrepreneurs and national elites who take advantage of the window of opportunity created by the early stages of democratization rather than ancient animosities, deep-rooted rivalries and historical legacies. 16 Similar emphasis on elite manipulation has been placed by followers of the realist school in explaining the rise of contemporary nationalism. In contrast, however, realists have focused specifically on conditions of uncertainty and insecurity accompanying state failure and anarchy. In this view, nationalism thrives under conditions of fear and insecurity, mobilizing and fracturing groups along ethnic fault lines. 17 Instrumentalist approaches to nationalism have come under criticism from an ethnosymbolist school of thought, proponents of which argued that theories of elite manipulation fail to explain why people follow nationalist leaders and respond positively to their manipulations. Ethnosymbolists believe that political resilience, popular appeal, and the power of nationalism derive from their connection to ethnic heritage and its constituent myths, symbols, rituals, and collective memories. It is premodern ethnic ties and cultural roots that sustain nationalist politics and explain its appeal for ordinary citizens. 18 Such an approach also explains why nationalism has been displaying surprising vitality in the context of globalization.

19 The globalization approach to nationalism, however, shifts focus from intrinsic, self-perpetuating elements of nationalism onto globalization and its influences in explaining the strength and continuous appeal of nationalism in the global era. Nationalism, in this view, appears as a reaction and a response to the economic, political, cultural and psychological effects of globalization on contemporary societies. These effects include the reduction of state power and its allegedly declining capacity to provide social and economic security for its citizens and generate an overarching sense of loyalty and belonging; structural adjustments, changes in the traditional economies and rising volatility of employment accompanied by diminishing social provisions from the state; increasing cultural interchanges and exposure to foreign cultures; as well as an intensified psychological need to belong to a greater and tangible community in a world of increasingly atomized individuals. As summarized by Spencer and Wollman, “it has become a widely held view that the insecurities attached to globalizing processes have engendered a variety of essentialist and fundamentalist reactions.” 19

20 It is the globalization approach that is the main focus of this book. Its significance lies not in the fact that it is a new and well-developed theory, which it is not, but rather in its attempt to bring together nationalism and globalization and explain how the two can be interconnected. It builds on the existing nationalism theories, borrowing elements such as consequences of the weakening of the state and an emotional appeal of cultural ties and ethnic roots, while at the same time emphasizing the role of globalization in reactivating and reinvigorating powers of nationalism and identity politics. In addition, the globalization approach has gained significant popularity among both academics and practitioners with some of its underlying assumptions acquiring almost a status of conventional wisdom. Even proponents of alternative theories of nationalism agree on the revitalizing influences which globalization has been exercising on contemporary nationalism. Thus, Anthony Smith, while maintaining his allegiance to ethnosymbolism, accepts the globalization thesis and suggests that global processes if anything strengthen national consciousness and further intensify nationalist tendencies. 20 Similarly, Delanty and O’Mahony, while not denying the validity of other approaches to nationalism, point out that the globalization approach is the most favorable since there can be little doubt that contemporary nationalism has assumed the powers it has because of globalization, “which has opened up many spaces for ethnicization, indigenization and localization.” 21

21 It should be noted that the globalization approach to nationalism represents a dramatic shift in the debate on globalization and nationalism that took place throughout the 1990s. Immediately after the end of the Cold War, it used to be popular to speak about the imminent demise of nationalism as a political force in the context of growing globalization. It was expected that technological advances, the expansion of the capitalist system, democratization and socioeconomic development would encourage liberal universalism to triumph over traditional attachments of ethnicity and nationality. 22 Expanding economic relations promote greater worldwide integration and a breakdown of national barriers, rendering the politics of nationalism increasingly outmoded and irrelevant. For some scholars, this has meant the final universalization of liberal, Western values, bringing about the “end of history” as an endpoint of human ideological evolution. 23 For others, the demise of nationalism was simply associated with the loss of its functional importance in the era of globalization. Thus, according to Eric Hobsbawm, globalization and the international division of labor deprived nationalism of its traditional functions of building states and establishing territorially bounded “national economies.” In addition, technological advances in the field of communication and increasing international migration have further undermined the possibility of territorially homogenous nation states. Nationalism, therefore, was becoming irrelevant to most contemporary economic and social developments. Recalling Hegel’s owl of Minerva, Hobsbawm concluded: “The owl of Minerva which brings wisdom, said Hegel, flies out at dusk. It is a good sign that it is now circling around nations and nationalism.” 24

22 Since expectations about the onset of the postnational era failed to materialize with growing evidence pointing to the opposite, it became common to argue that nationalism and identity politics not only were not disappearing but on the contrary, were revitalized by the very processes of globalization that were presumed to be rendering them obsolete. 25 The picture of universal, postnational peace has been replaced by that of the clash between tribal and primordial loyalties and forces of globalization, generating conflicts that appear to be particularly destructive and difficult to settle. This shift in the debate from one polar opposite to another seemed to have been provoked by the apparent resurgence of nationalism in post-communist Eastern Europe and other parts of the world alongside the intensification of global processes. Now that enough time has passed since the dramatic changes of the past decade, it is a good opportunity to once again reevaluate some of the commonly held views and question their underlying assumptions. Understanding the nature of contemporary nationalism and its relationship with globalization is essential for grasping ongoing political processes in all their complexity and for making adequate policy choices.

Notes de bas de page

1 Ian Clark (1997) Globalization and Fragmentation , Oxford: Oxford University Press, p. 4.

2 Michael Ignatieff (1994) Blood and Belonging , London: Vintage, p. 2.

3 Stuart Hall (1992) “The Question of Cultural Identity” in Modernity and Its Futures , Stuart Hall, David Held and Anthony McGrew (eds.), Cambridge: Polity Press, p. 314.

4 Anthony Smith (1995) Nations and Nationalism in a Global Era, Cambridge: Polity Press, p. 116.

5 Malcolm Anderson (2000) States and Nationalism in Europe since 1945 , London: Routledge, p. 64. Anderson also suggested that in the past decades, nationalism has been revived in the so-called “advanced” parts of Europe manifesting itself in two main ways: first, through the increasing assertiveness of stateless nations such as the Scots, Catalans and others; and second, through the growing hostility to “supranational Europe.” He concluded that it was “no longer possible to dismiss nationalism as an aberration of backward societies.” Ibid., p. 8.

6 Erica Benner (2001) “Is There A Core National Doctrine?” Nations and Nationalisms , 7:2, pp. 155–174.

7 See Benjamin Barber (1996) Jihad vs. McWorld , New York: Ballentine Books.

8 Andrew Hurrell (2007) On Global Order , Oxford: Oxford University Press, p. 19.

9 For the discussion of “most likely” and “least likely” cases, see Harry Eck stein (1975) “Case Study and Theory in Political Science” in Handbook of Political Science (Vol. 1.) Fred Greenstein and Nelson Polsby (eds.), Reading, Mass.: Addison-Wesley.

10 Philip Spencer and Howard Wollman (2002) Nationalism: A Critical Introduction , London: SAGE, p. 157.

11 Rogers Brubaker (1996) Nationalism Reframed , Cambridge: Cambridge University Press, p. 1.

12 Mary Kaldor (1996) “Cosmopolitanism vs. Nationalism” in Europe’s New Nationalism , Richard Caplan and John Feffer (eds.), Oxford: Oxford University Press, p. 43.

13 Kevin Robins (2000) “Encountering Globalization” in Global Transformations Reader , David Held and Anthony McGrew (eds.), Cambridge: Polity Press, p. 200.

14 Rogers Brubaker (1998) “Myths and Misconceptions in the Study of Nationalism” in National Self-Determination and Secession, Margaret Moore (ed.), Oxford: Oxford University Press, p. 233.

15 For a classical exposition of the above argument see Richard Kaplan (1992) Balkan Ghosts: A Journey Through History , New York: St. Martin’s Press.

16 See Jack Snyder (2000) From Voting to Violence , New York: W.W. Norton & Co. Snyder argues that democratization gives rise to nationalism because it serves the interests of national elites and powerful groups who seek to strengthen their hold on political authorities. For a more nuanced exposition of the correlation between democratization and rise of nationalism, see Neil MacFarlane (1997) “Democratization, Nationalism and Regional Security in the Southern Caucasus,” Government and Opposition , 32:3. MacFarlane argues that democratization creates permissive conditions for nationalist conflicts to emerge and escalate.

17 See Barry Posen (1993) “The Security Dilemma and Ethnic Conflict,” Survival , 35:1. Also see David Lake and Donald Rothchild (1998) The International Spread of Ethnic Conflict , Princeton: Princeton University Press.

18 See Anthony Smith (1998) Nationalism and Modernism , London: Rout ledge. Also Anthony Smith (1995) Nations and Nationalism in the Global Era , Cambridge: Polity Press.

19 Philip Spencer and Howard Wollman (2002) Nationalism: A Critical Introduction , London: SAGE, p. 170.

20 Smith, Nationalism in a Global Era ; see also Smith, Nationalism and Modernism .

21 Gerard Delanty and Patrick O’Mahony (2002) Nationalism and Social Theory , London: SAGE, p. 158.

22 This view represented the reinstatement of modernization theories of the 1950s, which argued that technological advances and increasing world wide communication would reduce national differences and divisions along the lines of parochial loyalties and attachments. See the discussion of modernization theory in Chapter Five.

23 See Francis Fukuyama (1992) The End of History and the Last Man , London: Hamish Hamilton.

24 Eric Hobsbawm (1990) Nations and Nationalisms since 1780 , Cambridge: Cambridge University Press, p. 183. 25 Smith, Nationalism and Modernism , p. 215.

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Essay on Globalisation

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The worldwide integration of people, services and interests is what globalisation is all about. Since the last decade, there has been a tremendous focus on globalisation with everyone trying to have a reach at even the remotest locations of the world. This has probably been possible due to the advancement in technology and communication.

Audience: The below given essays are especially written for school, college and university students. Furthermore, those students preparing for IAS, IPS, UPSC, Civil Services and other competitive exams can also increase their knowledge by studying these essays.

The word ‘Globalization’ is often heard in the business world, in corporate meetings, in trade markets, at international conferences, in schools, colleges and many other places. So what does globalization symbolize? Is it a new concept or did it exist earlier? Let’s see.

Definition:

Globalization refers to the integration of the world nations by means of its people, goods, and services. The statement – ‘ globalization has made the world a small village ’ is very true.

Countries inviting foreign investment, free trade and relaxation in the visa rules to allow seamless movement of people from one country to another are all part of globalization.

In a nutshell, globalization has reduced the distance between nations and its people.

Many among us refer to the current period that we live in as ‘The Era of Globalization’ and think that the process of globalization has started only recently. But the real fact is that globalization is not a new phenomenon . The world was moving towards globalization from a very long time. The term globalization was in existence since mid-1980s. But it was only from the early 21 st century that globalization picked up momentum due to the advancements in technology and communication.

Impact of Globalization:

Globalization has more positive outcomes than the negative ones. The impact of globalization on the developing countries such as India, China and some African countries are overwhelming. Foreign investments have created a lot of employment opportunities in the developing countries and have boosted their economy. Globalization has also enabled people to interchange their knowledge and culture.

Conclusion:

Although the world is not completely globalized, we can very well say that globalization is the best way to achieve equality among nations.

In simple words, globalization means the spreading of a business, culture, or any technology on an international level. When the boundaries of countries and continents matter no more, and the whole world becomes one global village in itself. Globalization is an effort to reduce the geographical and political barriers for the smooth functioning of any business.

There are four main factors that form the four pillars of globalization. These are the free flow of goods, capitals, technology, and labors, all across the world. Although, many of the experts that support globalization clearly refuse to acknowledge the free flow of labor as their work culture.

The international phenomenon of global culture presents many implications and requires a specific environment to flourish. For instance, it needs the other countries to come to a mutual agreement in terms of political, cultural, and economic policies. There is greater sharing of ideas and knowledge and liberalization has gained a huge importance.

Undoubtedly, globalization helps in improving the economic growth rate of the developing countries . The advanced global policies also inspire businesses to work in a cost-effective way. As a result, the production quality is enhanced and employment opportunities are also rising in the domestic countries.

However, there are still some negative consequences of globalization that are yet to be dealt with. It leads to greater economic and socio-cultural disparities between the developed and the developing countries. Due to the MNC culture, the small-scale industries are losing their place in the market.

Exchanges and integration of social aspect of people along with their cultural and economic prospects is what we term as Globalization. It is considered as a relatively new term, which has been in discussion since the nineties.

Initial Steps towards Globalization:

India has been an exporter of various goods to other countries since the earlier times. Hence Globalization, for India, is not something new. However, it was only around in the early nineties that India opened up its economy for the world as it faced a major crisis of severe crunch of foreign exchange. Since then, there has been a major shift in the government’s strategies while dealing with the PSUs along with a reduction in the monopoly of the government organisations perfectly blended with the introduction of the private companies so as to achieve a sustainable growth and recognition across the world.

The Measurement of Success:

The success of such measures can be measured in the form of the GDP of India which hovered around 5.6% during the year 1990-91 and has been now around 8.9% during the first quarter of 2018-19. In fact, in the year 1996-97, it was said to have peaked up to as high as 77.8%. India’s global position is improved tremendously due to the steady growth in the GDP thus furthering the impact of globalization on India. As on date, India is ranked as the sixth biggest economy in the world. This globalization leading to the integration and trade has been instrumental in reducing the poverty rate as well.

However, given the fact that India is the second most populated country of the world, after China, this growth cannot be considered as sufficient enough as other countries such as China have increased their growth rates at much faster pace than India. For instance, the average flow of FDI in India, over the past few years has been around 0.5% of the GDP while for countries such as China it has been around 5% and Brazil has had a flow of around 5.5%. In fact, India is considered among the least globalized economy among the major countries.

Summarily, there has been a tremendous increase in the competition and interdependence that India faces due to Globalization, but a lot is yet to be done. It is not possible for a country to ignore the developments and globalization occurring in the rest of the world and one need to keep the pace of growth at a steady rate or else you may be left far behind.

The twentieth century witnessed a revolutionary global policy aiming to turn the entire globe into a single market. The motive of globalization can broadly define to bring substantial improvement in the living condition of people all around the world, education, and shelter to everybody, elimination of poverty, equal justice without any race or gender consideration, etc. Globalization also aims to lessen government involvement in various development activities, allowing more direct investors/peoples’ participation cutting across border restrictions thus expected to reap reasonable prosperity to human beings.

Main Objectives of Globalization:

The four main aspects of globalization are; Capital and Investment movements, Trade and Transactions, Education and Spread of knowledge, along with Migration and Unrestricted Movement of People.

In simpler terms, globalization visualizes that one can purchase and sell goods from any part of the world, communicate and interact with anyone, anywhere in the world and also enables cultural exchange among the global population. It is operational at three levels namely, economic globalization, cultural globalization, and political globalization. Right from its inception, the impact of globalization has both advantages and disadvantages worldwide.

Advantages of Globalization:

As the word itself suggests, this policy involves all the nations across the globe. The lifting of trade barriers can have a huge impact especially in developing countries. It augments the flow of technology, education, medicines, etc., to these countries which are a real blessing.

Globalization expects to create ample job opportunities as more and more companies can extend their presence to different parts of the world. Multinational companies can establish their presence in developing countries. Globalization gives educational aspirants from developing and underdeveloped countries more quality learning opportunities. It leads not only to the pursuit of best higher education but also to cultural and language exchanges.

Globalization also enhances a faster flow of information and quick transportation of goods and services. Moreover one can order any item from anywhere merely sitting at home. Another plus point of globalization is the diminishing cultural barriers between nations as it offers free access and cultural interactions . Also, it has been observed that there is a considerable reduction of poverty worldwide due to globalization . In addition to this, it also enables the effective use of resources.

Disadvantages of Globalization:

Globalization turned out to be a significant threat to the cottage and small-scale industries as they have to compete with the products of multi-national companies. Another dangerous effect of globalization is the condition of weak sections of the society, as they are getting poorer and the rich are getting richer. The situation leads to the domination of economically rich countries over emerging countries and the increase of disparity.

The actions of multi-national companies are deplorable and always facing criticism from various social, government and world bodies as they are incompetent in offering decent working conditions for the workers. Irrational tapping of natural resources which are instrumental in causing ecological imbalance is another major accusation against multi-national companies.

Globalization is also blamed to have paved the way for human trafficking, labor exploitation and spread of infectious diseases too. In addition to all these, if any economic disaster hit a country and if they subsequently suffer from economic depression, its ripples are felt deeply in other countries as well.

Despite all its disadvantages, globalization has transformed the entire globe into a single market irrespective of its region, religion, language, culture, and diversity differences. It also leads to an increase in demand for goods, which in turn calls for more production and industrialization. Our focus should be to minimize the risks and maximize the positive outcome of global policy, which in turn can help for a sustainable long-standing development for people all around the world.

Introduction:

Globalization is the procedure of global political, economic, as well as cultural incorporation of countries . It lets the producers and manufacturers of the goods or products to trade their goods internationally without any constraint.

The businessman fetches huge profit as they easily get low price workforce in developing nations with the concept of globalization. It offers a big prospect to the firms who wish to deal with the global market. Globalization assists any nation to contribute, set up or amalgamate businesses, capitalize on shares or equity, vending of services or products in any country.

How does the Globalization Work?

Globalization benefits the international market to the entire deliberate world like a solitary marketplace. Merchants are spreading their extents of trade by aiming world as a worldwide community. In the 1990s, there was a limit of importing some goods that were already mass-produced in India such as engineering goods, agricultural products, toiletries, food items, etc.

But, in the 1990s the rich countries pressurize the WTO (World Trade Organization), World Bank (affianced in improvement financing activities), and IMF (International Monetary Fund) to let other nations spread their trades by introducing market and trade in the deprived and emerging countries. The process of liberalization and globalization in India began in the year 1991 below the Union Finance Minister Mr. Manmohan Singh.

After numerous years, globalization has fetched major uprising inside the Indian marketplace when international brands arrived in India such as KFC, PepsiCo, Mc. Donald, Nokia, IBM, Aiwa, Ericsson, etc., and began the delivery of an extensive variety of quality goods at low-cost rates.

The entire leading brands presented actual uprising of globalization at this time as a marvellous improvement to the economy of an industrial sector. Rates of the quality goods were also getting low owing to the cut-throat war happening in the marketplace.

Liberalization and globalization of the businesses in the Indian marketplace is submerging the quality of imported goods but influencing the local Indian businesses badly in large part causing the job loss of illiterate and poor labors. Globalization has remained a goldmine for the customers, but it is also a burial ground for the small-scale manufacturers in India.

Positive Influences of Globalisation:

Globalization has influenced the education sectors and students of India predominantly by making accessible the education material and enormous info on the internet. Association of Indian universities with the overseas universities has fetched a massive modification in the education business.

The health industries are too influenced enormously by the globalization of health observing electronic apparatuses, conventional drugs, etc. The trade globalization in the agricultural sector has provided a range of high-quality seeds possessing disease-fighting property. But, it is not beneficial for the underprivileged Indian agriculturalists owing to the reason of expensive seeds as well as agricultural equipment.

Globalization has given an enormous rebellion to the occupation sector by increasing the growth of trades related to the handloom , cottage, artisans and carving, carpet, jewellery, ceramics, and glassware, etc.

Globalization is definitely required by the people and nation to progress and turn into an established society and country. It benefits in expanding our visualization and thoughts. It also aids in endorsing the philosophy that we fit in a huge crowd of persons, i.e., the humankind. Once the two nations congregate, they flourish by sharing their beliefs, thoughts, opinions, customs, and behaviors. People come to know new things and also acquire a chance to discover and get acquainted with other values.

Globalization has provided many reasonably priced valued goods and complete economic welfares to the emerging nations in addition to the employment. But, it has also given growth to the crime, competition, terrorism, anti-national activities, etc. Thus, along with the pleasure it has supplied some grief too.

Globalization is a term that we hear about every now and then. Question is; do we really know what it is all about? Globalization is defined as the process of integration and interaction among people, cultures and nations who come together in order to get things done easily through contact. Globalization began with the migration of people from Africa to different parts of the world. Global developments have been achieved in various sectors through the different types of globalization. The effects of globalization have been felt in every part of the world and more people continue to embrace it. Globalization has some of its core elements that help in the process.

Types of Globalization:

Globalization does not just transform a sector unless the strategies are related to that specific sector. The first type of globalization is financial and economic globalization whereby interaction takes place in the financial and economic sectors especially through stock market exchange and international trade. The other type is technological globalization which involves the integration and connection of different nations through technological methods like the internet. Political globalization transforms the politics of a nation through interactions with adoption of policies and government that cut across other nations. Cultural globalization is basically the interaction of people from different cultures and sharing. Ecological globalization is the viewing of the earth as one ecosystem and sociological globalization is on equality for all people.

Elements of Globalization:

Globalization works with characteristic elements. Trade agreements is one of the components that significantly benefits the economic and financial globalization. These trade agreements have been designed to promote and sustain globalization by preventing barriers that inhibit trade among nations or regions. Another element is capital flow that is concerned with the measures of either a decline or a rise in domestic or foreign assets. Migration patterns is a socio-economical and cultural element that monitors the impacts of immigration and emigration actively. The element of information transfer involves communications and maintains the functioning of the markets and economies. Spread of technology is an element of globalization that facilitates service exchanges. Without these elements, globalization would have faced many challenges, which would even stagnate the process of globalization.

Impacts of Globalization:

The impact of globalization is felt differently among individuals but the end result will be either positive or negative. Globalization has impacts on the lives of individuals, on the aspects of culture, religions and education. The positive impacts of globalization include the simplification of business management through efficiency. In business, the quality of goods and services has increased due to global competition. Foreign investment has been facilitated by globalization and the global market has been able to expand. Cultural growth has been experienced through intermingling and accommodation. Interdependence among nations has developed and more people have been exposed to the exchange program between nations. Improvement of human rights and legal matters has improved through media and technology sharing. Poverty has been alleviated in developing countries due to globalization and also employment opportunities are provided. Through technology, developments have been positively influenced in most parts of the world.

Although globalization has positive impacts, the negative impacts will remain constant unless solutions are sought. One of the negative effects of globalization is job insecurity for some people. Through globalization, more innovations are achieved, for e.g., technology causes automation and therefore people get replaced and they lack jobs. Another negative impact is the frequent fluctuation of prices of commodities that arises from global competitions. On the cultural side, the fast food sector has become wide spread globally, which is an unhealthy lifestyle that was adopted due to globalization. Also, Culture has been negatively affected for people in Africa because they tend to focus more on adopting the western culture and ignore their cultural practices.

Possible Solutions to the Negative Impacts of Globalization:

Globalization has impacted the society negatively and some of the solutions might help to mitigate the impacts. When adopting cultures from other people, it is important to be keen on the effects of the culture on the people and the existing culture being practiced. For example, Africans should not focus more of the western culture such that they ignore their own culture.

In conclusion, it is evident that globalization results in both negative and positive consequences. The society should embrace the positive and mitigate the negative impacts. Globalisation is a dynamic process which involves change, so flexibility among people is a must.

The buzzword befitted to describe the growth of Modern Indian economy is ‘Globalization’. But what exactly is Globalization? Globalization can be defined as integrating the economy of a country with the rest of the countries of the world. From the Indian perspective, this implies encouraging free trade policies, opening up our economy to foreign direct investment, removing constraints and obstacles to the entry of multinational corporations in India, also allowing Indian companies to set up joint ventures abroad, eliminating import restrictions, in-short encouraging Free Trade policies.

India opened its markets to Global Trade majorly during the early Nineties after a major economic crisis hit the country. New economic reforms were introduced in 1991 by then Prime Minister Shri. P V. Narasimha Rao and Finance Minister at the time, Dr. Manmohan Singh. In many ways, the new economic policies positively contributed to the implementation of the concept of Globalization in India.

It’s Impact:

1. Economic Impact :

Globalization in India targets to attract Multinational Companies and Institutions to approach Indian markets. India has a demography with a large workforce of young citizens who  are in need of jobs. Globalization has indeed left a major impact in the jobs sector. Indian companies are also expanding their business all over the world. They are driving funds from the bigwigs of the Global economy.

The Best example in today’s time is OYO Rooms, a budding Indian company in the hospitality sector. OYO Rooms recently made headlines when it declared to raise a fund close to $1 Billion from Japan’s Soft Bank Vision Fund. Globalization has also led the Indian Consumer market on the boom. The Giant of FMCG (fast-moving consumer goods) sector WALMART is also enthusiastic and actively investing in the India market.

2. Socio-Cultural impact on the Indian Society:

The world has become a smaller place, thanks to the social networking platforms blooming of the internet. India is a beautiful country which takes immense pride in “Unity in Diversity” as it is home to many different cultures and traditions. Globalization in India has left a lasting impression on the socio-cultural aspect of Indian society.

Food chains like McDonald’s are finding its way to the dining tables. With every passing day, Indians are indulging more and more in the Western culture and lifestyle. But Globalization in India has also provided a vibrant World platform for Indian Art, Music, Clothing, and Cuisine.

The psychological impact on a common Indian Man: The educated youth in India is developing a pictorial identity where they are integrating themselves with the fast-paced, technology-driven world and at the same time they are nurturing the deep roots of Indian Culture. Indians are fostering their Global identity through social media platforms and are actively interacting with the World community. They are more aware of burning issues like Climate Change, Net neutrality, and LGBT rights.

Advantages:

India has taken the Centre Stage amongst the Developing Nations because of its growing economy on the World Map. Globalization in India has brought tremendous change in the way India builds its National and International policies. It has created tremendous employment opportunities with increased compensations.

A large number of people are hired for Special Economic Zones (SEZs), Export Processing Zones (EPZs), etc., are set up across the country in which hundreds of people are hired. Developed western countries like USA and UK outsource their work to Indian companies as the cost of labour is cheap in India. This, in turn, creates more employment. This has resulted in a better standard of living across the demographic of young educated Indians. The Indian youth is definitely empowered in a big way.

Young lads below the age of 20 are now aspiring to become part of global organizations. Indian culture and morals are always strengthening their roots in modern world History as the world is now celebrating ‘International Yoga Day’ on 21st June every year. Globalization in India has led to a tremendous cash flow from Developed Nations in the Indian market. As a positive effect, India is witnessing the speedy completion of Metro projects across the country. Another spectacular example of newly constructed High-end Infrastructure in the country is the remarkable and thrilling ‘Chenani-Nashri Tunnel’, Longest Tunnel in India constructed in the State of Jammu and Kashmir. Globalization has greatly contributed in numerous ways to the development of Modern India.

Disadvantages:

As there are so many pros we cannot turn a blind eye to the cons of Globalization which are quite evident with the Indian perspective. The worst impact is seen in the environment across Indian cities due to heavy industrialization. Delhi, the capital of India has made headlines for the worst ever air pollution, which is increasing at an alarming rate.

India takes pride in calling itself an Agriculture oriented nation, but now Agriculture contributes to fragile 17% of the GDP. Globalization in India has been a major reason for the vulnerable condition of Indian Farmers and shrinking Agriculture sector. The intrusion of world players and import of food grains by the Indian Government has left minimal space for Indian farmers to trade their produce.

The impact of westernization has deeply kindled individualism and ‘Me factor’ and as a result, the look of an average Indian family has changed drastically where a Nuclear family is preferred over a traditional Joint family. The pervasive media and social networking platforms have deeply impacted the value system of our country where bigotry and homophobia are becoming an obvious threat.

One cannot clearly state that the impact of Globalization in India has been good or bad as both are quite evident. From the economic standpoint, Globalization has indeed brought a breath of fresh air to the aspirations of the Indian market. However, it is indeed a matter of deep concern when the Indian traditions and value system are at stake. India is one of the oldest civilizations and World trade has been the keystone of its History. Globalization must be practiced as a way towards development without compromising the Indian value system.

Globalisation can simply be defined as the process of integration and interaction between different people, corporations and also governments worldwide. Technology advancement which has in turn advanced means of communication and transportation has helped in the growth of globalisation. Globalisation has brought along with it an increase in international trade, culture and exchange of ideas. Globalisation is basically an economic process that involves integration and interaction that deals also with cultural and social aspects. Important features of globalisation, both modern and historically are diplomacy and conflicts.

In term of economy, globalisation involves services and goods, and the resources of technology, capital and data. The steamship, steam locomotive, container ship and jet engine are a few of the many technological advances in transportation while the inception of the telegraph and its babies, mobile phones and the internet portray technological advances in communications. These advancements have been contributing factors in the world of globalisation and they have led to interdependence of cultural and economic activities all over the world.

There are many theories regarding the origin of globalisation, some posit that the origin is in modern times while others say that it goes way back through history before adventures to the new world and the European discovery age. Some have even taken it further back to the third millennium. Globalisation on a large-scale began around the 1820s. Globalisation in its current meaning only started taking shape in the 1970s. There are four primary parts of globalisation, they are: transactions and trade, investments and capital movement, movement and migration of people and the circulation of knowledge and information. Globalization is subdivided into three: economic globalisation, political globalisation and cultural globalisation.

There are two primary forms of globalisation: Archaic and Modern Globalisations. Archaic globalisation is a period in the globalisation history from the period of the first civilisations until around the 1600s. Archaic globalisation is the interaction between states and communities and also how they were incepted by the spread by geography of social norms and ideas at different levels.

Archaic globalisation had three major requirements. First is the Eastern Origin idea, the second is distance, the third is all about regularity, stability and inter-dependency. The Silk Road and trade on it was a very important factor in archaic globalisation through the development of various civilisations from Persia, China, Arabia, Indian subcontinent and Europe birthing long distance economic and political relationships between them. Silk was the major item from China along the Silk Road; other goods such as sugar and salt were also traded.

Philosophies, different religious beliefs and varying technologies and also diseases also moved along the Silk Road route. Apart from economic trade, the Silk Road also was a means of cultural exchange among the various civilisations along its route. The cultural exchange was as a result of people’s movement including missionaries, refugees, craftsmen, robbers, artists and envoys, resulting in religions, languages, art and new technologies being exchanged.

Modern globalisation can be sub-divided into early modern and Modern. Early modern globalisation spans about 200 years of globalisation between 1600 and 1800. It is the period of cultural exchange and trade links increasing just before the modern globalisation of the late 19 th century. Early modern globalisation was characterised by Europeans empires’ maritime of the 16 th and 17 th centuries. The Spanish and Portuguese Empires were the first and then we had the British and Dutch Empires. The establishment of chartered companies (British East India Company and the Dutch East India Company) further developed world trade.

Modern Globalisation of the 19 th century was as a result of the famed Industrial Revolution. Railroads and steamships made both local and international transportation easier and a lot less expensive which helped improve economic exchange and movement of people all over the world, the transportation revolution happened between 1820 and 1850. A lot more nations have embraced global trade. Globalisation has been shaped decisively by the imperialism in Africa and in Asia around the 19 th century. Also, the ingenious invention in 1956 of the shipping container has really helped to quicken the advancement of globalisation.

The Bretton Woods conference agreement after the Second World War helped lay the groundwork for finance, international monetary policy and commerce and also the conception of many institutions that are supposed to help economic growth through lowering barriers to trade. From the 1970s, there has been a drop in the affordability of aviation to middle class people in countries that are developed. Also, around the 1990s, the cost of communication networks also drastically dropped thus lowering the cost of communicating between various countries. Communication has been a blessing such that much work can be done on a computer in different countries and the internet and other advanced means of communications has helped remove the boundary of distance and cost of having to travel and move from place to place just to get business done.

One other thing that became popular after the Second World War is student exchange programmes which help the involved students learn about, understand and tolerate another culture totally different from theirs, it also helps improve their language skills and also improve their social skills. Surveys have shown that the number of exchange students have increased by about nine times between 1963 and 2006.

Economic globalisation is differentiated from modern globalisation by the information exchange level, the method of handling global trade and expansionism.

Economic Globalisation:

Economic globalisation is just the ever increasing interdependence of economies of nations worldwide caused by the hike in movement across borders of goods, services, capital and technology. Economic globalisation is basically the means of increasing economic relationships between countries, giving rise to the birth of a single or global market. Based on the worldview, Economic globalisation can be seen as either a negative or positive thing.

Economic globalisation includes: Globalisation of production; which is getting services and goods from a source from very different locations all over the world to gain from the difference in quality and cost. There is globalisation of markets; which is the coming together of separate and different markets into one global market. Economic globalisation includes technology, industries, competition and corporations.

Globalisation today is all about less developed countries and economies receiving FDI (Foreign Direct Investment) from the more developed countries and economies, reduction in barriers to trade and to particular extent immigration.

Political Globalisation:

Political globalisation is going to on-the-long-run drop the need for separate nation or states. Institutions like the International Criminal court and WTO are beginning to replace individual nations in their functions and this could eventually lead to a union of all the nations of the world in a European Union style.

Non-governmental organisations have also helped in political globalisation by influencing laws and policies across borders and in different countries, including developmental efforts and humanitarian aid.

Political globalisation isn’t all good as some countries have chosen to embrace policies of isolation as a reactionary measure to globalisation. A typical example is the government of North Korea which makes it extremely difficult and hard for foreigners to even enter their country and monitor all of the activities of foreigners strictly if they allow them in. Citizens are not allowed to leave the country freely and aid workers are put under serious scrutiny and are not allowed in regions and places where the government does not want them to enter.

Intergovernmentalism is the treatment of national governments and states as the major basic factors for integration. Multi-level governance is the concept that there are many structures of authority interacting in the gradual emergence of political globalisation.

Cultural Globalisation:

Cultural globalisation is the transmission of values, ideas and meanings all over the world in a way that intensify and extend social relations. Cultural globalisation is known by the consumption of different cultures that have been propagated on the internet, international travel and culture media. The propagation of cultures helps individuals to engage in social relations which break regional boundaries. Cultural globalisation also includes the start of shared knowledge and norm which people can identify their cultures collectively; it helps foster relationships between different cultures and populations.

It can be argued that cultural globalisation distorts and harms cultural diversity. As one country’s culture is inputted into another country by the means of globalisation, the new culture becomes a threat to the cultural diversity of the receiving country.

Globalisation has made the world into one very small community where we all interact and relate, learn about other cultures and civilisations different from ours. Globalisation has helped improve the ease of doing business all around the world and has made the production of goods and services quite easy and affordable. Globalisation isn’t all good and rosy as it can be argued that Globalisation is just westernisation as most cultures and beliefs are being influenced by the western culture and belief and this harms cultural diversity. Nevertheless, the good of globalisation outweighs the bad so globalisation is actually a very good thing and has helped shape the world as we know it.

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Essay on Globalization for Students and Children

500+ words essay on globalization.

Globalization refers to integration between people, companies, and governments. Most noteworthy, this integration occurs on a global scale. Furthermore, it is the process of expanding the business all over the world. In Globalization, many businesses expand globally and assume an international image. Consequently, there is a requirement for huge investment to develop international companies.

Essay on Globalization

How Globalization Came into Existence?

First of all, people have been trading goods since civilization began. In the 1st century BC, there was the transportation of goods from China to Europe. The goods transportation took place along the Silk Road. The Silk Road route was very long in distance. This was a remarkable development in the history of Globalization. This is because, for the first time ever, goods were sold across continents.

Globalization kept on growing gradually since 1st BC. Another significant development took place in the 7th century AD. This was the time when the religion of Islam spread. Most noteworthy, Arab merchants led to a rapid expansion of international trade . By the 9th century, there was the domination of Muslim traders on international trade. Furthermore, the focus of trade at this time was spices.

True Global trade began in the Age of Discovery in the 15th century. The Eastern and Western continents were connected by European merchants. There was the discovery of America in this period. Consequently, global trade reached America from Europe.

From the 19th century, there was a domination of Great Britain all over the world. There was a rapid spread of international trade. The British developed powerful ships and trains. Consequently, the speed of transportation greatly increased. The rate of production of goods also significantly increased. Communication also got faster which was better for Global trade .

Finally, in 20th and 21st -Century Globalization took its ultimate form. Above all, the development of technology and the internet took place. This was a massive aid for Globalization. Hence, E-commerce plays a huge role in Globalization.

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Impact of Globalization

First of all, Foreign Direct Investment (FDI) increases at a great rate. This certainly is a huge contribution of Globalization. Due to FDI, there is industrial development. Furthermore, there is the growth of global companies. Also, many third world countries would also benefit from FDI.

Technological Innovation is another notable contribution of Globalization. Most noteworthy, there is a huge emphasis on technology development in Globalization. Furthermore, there is also technology transfer due to Globalization. The technology would certainly benefit the common people.

The quality of products improves due to Globalization. This is because manufacturers try to make products of high-quality. This is due to the pressure of intense competition. If the product is inferior, people can easily switch to another high-quality product.

To sum it up, Globalization is a very visible phenomenon currently. Most noteworthy, it is continuously increasing. Above all, it is a great blessing to trade. This is because it brings a lot of economic and social benefits to it.

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No, Donald Trump, Biden’s Economy Is Not Like Weimar Germany’s

An illustration depicting the blue silhouette of Donald Trump being pulled into the air by blue balloons, as a red hat falls of his head.

By Peter Coy

Opinion Writer

At a May 1 rally in Waukesha, Wis., Donald Trump said that when he was president “we had no inflation,” and that now “we have record horrible inflation” that is “getting worse.” All three of those claims are, of course, incorrect. Trump also described inflation as “a country buster” that destroyed Germany, presumably referring to the hyperinflation of 1923, which was the year of Adolf Hitler’s failed beer-hall putsch.

Even for Trump, who loves to work up a crowd, that’s too far.

President Biden does have an inflation problem, but it’s not a Weimar Germany kind of problem. Economists expect that when the Bureau of Labor Statistics reports the Consumer Price Index for April next week, the annual change will come in around 3.4 percent. Contrast that with Germany in 1923, when people paid for goods with wheelbarrows of cash and burned bank notes to keep themselves warm. To compare the United States’ modestly-above-target inflation with Germany’s hyperinflation is inflated hype.

I won’t get into why Americans are so upset about inflation that they might choose Trump over Biden in November. Many commentators, including me and my Opinion colleagues Binyamin Appelbaum and Paul Krugman , have taken shots at that question.

I want to look at a different question, which is whether inflation would be lower if Trump won. Or, as I suspect, higher.

When I wrote about the economic outlooks under a second Biden term and another Trump term , one clear message I heard from economists was that many of Trump’s priorities could reignite inflation. The most obvious is his threat to raise tariffs on almost all imports, and raise them more on imports from China. The cost of those tariffs would be borne in part by the exporting nations, but even more by American consumers and industry. “I think we should have a ring around the collar” of the U.S. economy, Trump told Fox Business last year, apparently mixing up old laundry detergent commercials with the mercantilist metaphor of a protective ring of defense around domestic industry.

Trump also wants to extend all of the tax cuts in the 2017 Tax Cuts and Jobs Act, many of which are scheduled to expire at the end of 2025, which would keep budget deficits high. That would be inflationary, although only moderately so, because those cuts are already in place and most of the continued dollar savings would go to upper-income households, which have a lower propensity to consume out of each dollar saved.

Deporting undocumented immigrants — he has promised “the largest domestic deportation operation in American history” — is a big applause line for Trump on the campaign circuit. But that would push up labor costs, also stoking inflation.

One other way Trump could fuel inflation would be by pressuring the Federal Reserve to go along with lowering interest rates to juice economic growth. That’s something he repeatedly sought from Federal Reserve Chair Jerome Powell during his presidency. But Powell has made it clear that he doesn’t take orders from the White House. His term as chair ends on May 15, 2026 .

If the next president doesn’t reappoint Powell as chair, he has the option to finish out his term as governor, which ends in January 2028, although he might choose retirement. One other seat comes up for grabs in January 2026, and there could be other openings on the seven-member board in the coming four years if other governors choose not to serve out their terms.

To summarize, there was not zero inflation when Trump was president. It is not at a record high now. It is not rising. It is not making the United States go bust. And Trump’s policies would most likely not help the situation. If this were just hot air on the campaign trail, we might be able to ignore it. But Trump has a track record of doing some pretty crazy things. If he is re-elected, letting prices inflate once again might well be one of them.

The Readers Write

You wrote about mortgage portability . There is a device for “moving” a mortgage to secure a different piece of property and it is commonly used, albeit for a different reason/form, in commercial transactions. Collateral (mortgage) “spreader agreements” are often used to encumber new property to secure an existing or “old” debt. There are already procedures in place (in my opinion) that could allow for this in securitized trusts. In practice, this is no more complicated than to qualify the new property, issue a new or amended title policy and “close the deal.”

The fact that the residential mortgage industry doesn’t want this is completely addressed in your article. They simply do not see an incentive to work that hard.

James Michael Costello Cape Coral, Fla.

I appreciated your discussion of what might happen if the perceived risk of investing in the United States increases. I summarize related studies from a broad set of countries in this report on the financial and economic dangers of democratic backsliding. Three themes emerge: First, weak rule of law reduces investment. Second, political uncertainty often disrupts asset markets. Third, political actors who seek to undermine democratic practices also often have a populist, anti-globalization orientation.

The United States is not immune from political risk. And it is difficult for investors to diversify away from risks that emanate from the center of the global financial system.

Layna Mosley Princeton, N.J. The writer is a professor of politics and international affairs at Princeton.

Concerning your newsletter on risks of the United States:

The dollar may be shaky. The yen is slowing down. The euro ain’t heroic. The ruble is a clown. The only currency not bum I think is gold-pressed latinum .

Tim Torkildson Provo, Utah

Quote of the Day

“And as I was saving these little sums I soon learned that I could get as much interest for 50 dollars loaned at 7 percent — the legal rate in the state of New York at that time for a year — as I could earn by digging potatoes for 100 days. The impression was gaining ground with me that it was a good thing to let the money be my slave and not make myself a slave to money.”

— John D. Rockefeller, quoted by Ida Tarbell in “The History of the Standard Oil Company” ( 1904 )

Peter Coy is a writer for the Opinion section of The Times, covering economics and business. Email him at [email protected] . @ petercoy

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