SOC STUD 226 REVIEWER

Comparative Economic Planning

FINAL TERM

GLOBALIZATION AND TECHNOLOGICAL ADVANCEMENTS

 KEY ELEMENTS OF MASS

 GLOBALIZATION PRODUCTION
The process of interaction and integration among  Division of Labor -
people, companies, and governments of different Complex tasks were broken down into
nations driven by international trade, investment, and smaller, simpler steps, allowing workers to
information technology. specialize and become more efficient.

TECHNOLOGICAL ADVANCEMENTS  Standardization

Products were designed with uniform parts
Refers to the continuous development and and specifications, ensuring consistency
improvement of technology, tools, and systems that and ease of assembly.
enable advancements in various fields.
 Assembly Lines -
The Advent of Mass Production Moving conveyor belts transported partially
finished products past workstations workers
The advent of mass production marked a significant performed specific tasks,streamlining the
turning point in human history. It transformed production process.
manufacturing from a slow, handcrafted process to a
rapid, efficient system capable of producing large  Mechanization -
quantities of standardized goods at a lower cost. This Machines were increasingly used to
shift had a profound impact on economies, societies, perform repetitive tasks, further boosting
and the way we live today. produc.

The seeds of mass production were sown during the

Industrial Revolution (1760-1840) with advancements  IMPACT OF MASS PRODUCTION
in:
 Increased Efficiency:
Mechanization: Machines replaced human labor, Production times decreased dramatically,
increasing efficiency. (e.g., steam engine) leading to a greater output of goods.
Interchangeable parts: Standardized components  Lower Costs:
allowed for faster assembly and repair. Economies of scale allowed
manufacturers to reduce production costs
per unit, making goods more affordable for
consumers.

 Rise of Consumerism:
Increased affordability and availability of
goods fueled a culture of consumerism.

 Environmental Impact:
Increased industrial activity contributed to
environmental pollution.

 Social Change:
Mass production led to the rise of factory
work and urbanization as people
migrated to cities for jobs.
  PIONEERING FIGURE technology may benefit disproportionately compared
to those without such skills.
While mass production techniques existed earlier,
is often credited with bringing them together in a Environmental Considerations:
coherent and efficient manner.
Mechanization can also impact the environment, both
Henry Ford positively and negatively. While technological
advancements can lead to more sustainable practices
In 1913, Ford introduced the moving assembly line and resource efficiency, they can also contribute to
for his Model T Ford, revolutionizing automobile environmental degradation if not managed
production and making cars more accessible to the responsibly.
middle class.
Policy Responses:

 MECHANIZATION OF PROGRESS Governments and policymakers play a crucial role in

addressing the challenges posed by the
The mechanization of progress refers to the mechanization of progress. This may involve
phenomenon where advancements in technology and implementing policies to support workers affected by
automation drive societal progress and development. automation, investing in education and training
programs to develop new skills, and regulating the
Historical Context: use of technology to ensure ethical and responsible

Throughout history, societies have witnessed the

mechanization of various processes, from agricultural
practices to industrial manufacturing. Mechanization  GLOBALIZING TRADE
has led to increased efficiency, productivity, and
economic growth.

Trade Liberalization:
Technological Advancements:
Globalizing trade often involves the reduction or
The mechanization of progress is closely linked to elimination of barriers to international trade, such as
technological innovations such as automation, tariffs, quotas, and trade restrictions. This
robotics, artificial intelligence, and machine learning. encourages the free flow of goods and services
These advancements enable tasks to be performed across borders and promotes economic integration
with minimal human intervention, leading to higher among countries.
output and lower costs.
International Trade Agreements:
Impact on Labor:
Trade agreements, such as bilateral and multilateral
While mechanization has undoubtedly led to trade deals, play a significant role in globalizing trade
increased productivity and economic growth, it has by establishing rules and frameworks for trade
also raised concerns about its impact on the labor relations between countries. Examples include the
force. Automation has led to the displacement of North American Free Trade Agreement (NAFTA), the
certain jobs, particularly those that involve repetitive European Union (EU), and the World Trade
or routine tasks. This has prompted discussions about Organization (WTO) agreements.
reskilling, retraining, and the need for a more
adaptable workforce. Supply Chains and Logistics:

Social and Economic Implications: Globalizing trade has led to the development of
complex supply chains and logistics networks, where
The mechanization of progress has significant social goods are produced, assembled, and distributed
and economic implications. On one hand, it has the across multiple countries. This has enabled
potential to improve living standards, increase access companies to optimize production processes, reduce
to goods and services, and enhance overall quality of costs, and access new markets more efficiently
life. On the other hand, it can exacerbate income
inequality, as those with the skills to work with
Technological Advancements:  THE SHIFT FROM INDUSTRIAL AGE
TO COMPUTER REVOLUTIONS
Information and communication technologies (ICTs)
have played a crucial role in globalizing trade by From Steams to Screens:
facilitating communication, transactions, and
coordination among businesses and trading partners A Shift in Revolutions
worldwide. E-commerce platforms, digital payment The world went from factory floors (Industrial Age)
systems, and online marketplaces have significantly to digital desktops (Computer Revolution) in a
expanded the reach of global trade. technological leap.
Global Value Chains : INDUSTRIAL AGE (1760 - 1840)
Globalizing trade has led to the emergence of global Focus: Machines powered by steam and coal for
value chains (GVCs), where different stages of mass production.
production are dispersed across various countries Impact: More goods, factory jobs, cities booming,
based on comparative advantages and cost global trade
efficiencies. This allows firms to specialize in specific
tasks and components, leading to increased efficiency
and competitiveness COMPUTER REVOLUTION (1970s - present )
Trade Imbalances: Focus: Digital technologies like computers and the
internet.
Despite the benefits of globalizing trade, it also has Impact: Information explosion, service jobs rise,
its challenges, including trade imbalances between global connection, automation takes hold.
countries. Trade imbalances occur when a country's
imports exceed its exports or vice versa, leading to Key Differences :
concerns about economic stability, currency INDUSTRIAL Age : Built things faster
fluctuations, and protectionist measures. COMPUTER Revolution : Connects and
informs us faster
Policies and Regulations :

Governments play a crucial role in globalizing trade

by formulating trade policies and regulations that
 COMPETING CONCEPTION OF
govern cross-border transactions. These policies may GLOBALIZATION
include trade tariffs, import/export regulations,
intellectual property rights protection, and World-Systems Approach:
environmental standards.
Focus:
Socioeconomic Impacts :
This approach, pioneered by sociologist Immanuel
Globalizing trade has both positive and negative Wallerstein examines globalization within the
socioeconomic impacts. It can stimulate economic context of a global capitalist system characterized by
growth, create jobs, and improve living standards by core, semi-peripheral, and peripheral countries.
expanding market opportunities and fostering
innovation. However, it can also lead to job Core Tenets:
displacement, income inequality, and environmental
degradation if not managed effectively. It emphasizes the hierarchical structure of the global
economy, with core countries dominating trade,
finance, and technology, while peripheral countries
provide cheap labor and raw materials. Semi-
peripheral countries occupy an intermediate position.

Perspective:

The world-systems approach emphasizes economic

exploitation, dependency, and unequal power
relations between nations, highlighting the role of
historical colonialism and imperialism in shaping
global economic dynamics. Global Capitalism Approach:

Global Culture Approach: Focus:

Focus: This approach analyzes globalization primarily

through the lens of capitalist economic processes,
This approach focuses on cultural globalization, emphasizing the expansion of markets, production
emphasizing the spread of ideas, values, and cultural networks, and financial flows.
practices across borders.
Core Tenets:
Core Tenets:
It highlights the role of neoliberal policies,
It highlights the interconnectedness of cultures deregulation, and privatization in facilitating global
through processes such as media, migration, tourism, capitalism and shaping economic globalization.
and cultural exchange, leading to the emergence of a
globalized culture characterized by cultural Perspective:
hybridization and cosmopolitanism.
The global capitalism approach emphasizes the
Perspective: concentration of wealth and power in the hands of
transnational corporations and financial institutions,
The global culture approach emphasizes cultural leading to social inequality, environmental
diversity, identity formation, and the negotiation of degradation, and financial instability. It critiques the
meanings and values in a globalized world. It commodification of goods and services and advocates
explores how cultural flows shape individuals, for alternative economic models that prioritize social
communities, and societies, fostering both and environmental justice.
homogenization and cultural resistance.

 PHILOSOPHIES OF
GLOBALIZATION
Global Society Approach:
Free Market Enthusiasts (Neoliberalism):
Focus:
See globalization as economic integration driven by
This approach conceptualizes globalization as the free markets and minimal government intervention.
emergence of a global society characterized by They believe it fosters economic growth and
interconnectedness, interdependence, and shared prosperity for all nations.
norms and values.
Cultural Skeptics (Global Culture Approach):
Core Tenets:
View globalization as the homogenization of cultures,
It emphasizes the importance of global governance, with Western culture potentially dominating. They
international cooperation, and collective action in worry about the erosion of local identities.
addressing transnational challenges such as climate
change, poverty, and human rights. Power Dynamics Critics (Marxism & World
Systems Theory):
Perspective:
Emphasize the power dynamics inherent in
The global society approach emphasizes the need for globalization. Marxism argues it widens the gap
a global ethic and solidarity among nations to between rich and poor nations, while World Systems
promote peace, justice, and sustainability. It Theory highlights how core nations might exploit
advocates for the strengthening of international periphery nations. However, World Systems Theory
institutions and mechanisms to govern global issues also acknowledges cultural exchange within this
and promote global citizenship. power structure.
 THE ROUTE TO GLOBALIZATION

A. THE CHALLENGES OF
GLOBALIZATION

Globalization presents challenges for developed 4. Managing Employee Immigration

countries as well. It has been blamed for high
unemployment in Europe and the stagnation of real 28% of US and UK tech leader agreed it was one of
wages in united states. But increased competition their top challenges immigration laws changes often,
from imports is at most a secondary explanation for and in some countries, it is difficult to secure visas for
the decline real wages of less skilled American employees that are foreign nationals (Velocity Global,
workers. 2020).

5. Loss of Cultural Identity

1. International Recruiting
while globalization has made foreign countries easier
it is not surprising that 30% of US and US to access, it has also began to meld unique societies
tech leaders cited international recruiting as together. The success of certain cultures throughout
their most common challenges recruiting the world caused other countries to emulate them.
across boarders creates unknown HR teams But when culture begin to lose their distinctive
(Velocity Global, 2020). features, we lose of global diversity.

6. Foreign Worker Exploitation

2. Employer Challenges
Lower casts do benefit many consumers, but it also
Lack of local talent struggle to find creates tough competition that leads some companies
qualified talent in their area (Flook, 2019). to search for cheap labor sources.

Ghosting - either don't show up for

interviews or don't respond to their 7. Global Expansion Difficulties
communication
If companies take the traditional route of setting up
Sub- par job Ads - challenges with an entity, they need substantial upfront capital,
writing strong ads that get responds. sometimes up to $ 20,000, and lost of $200,000
annually to maintain the business.

3. Managing Employee Immigration 8. Immigration Challenges and Local

Job Loss
28% of US and UK tech leader agreed it was one of
their top challenges immigration laws changes often, Globalization allows companies to find lower cost
and in some countries, it is difficult to secure visas for ways to produce their products. It also increases
employees that are foreign nationals (Velocity Global, global competition, which drives prices down and
2020). creates a larger variety of choices for consumer
 B. RESPONSE TO THE CHALLENGES IN
GLOBALIZATION Economic measure of output per unit of input,
productivity gains are vital to economy as they allow
us to accomplish more with less (Raja, 2018).
Ruling elite in consultation with all stakeholders
should formulate vision for the country where it
would be in short to long period in the rapidly 5. Meeting Social/Environ mental
globalizing world. Thus, it could be an active partner, Standard
without it, the country could be a silent spectator or
at worst a passive recipient. However, articulating Developed countries are progressively imposing
vision without formulating following attendant policies stringent social conditionality and environmental
and strategies to achieve it is exercise in futility. compliance rules. As such meeting these
requirements, not only from a specific and technical
1. Policy Framework Needed perspective but also from regulatory, social,
environmental performance and costumer specific
To fully exploit the opportunities of globalization, first standpoints is essential in a rapidly globalizing world
formulate business friendly national economic policies (Raja, 2018).
which encourage creation of exportable surplus of
high quality goods and services. Government role 6. Research and Development
should be confined to legislation, policy development,
regulation while the private sector should take the Is a crucial as new technology, material, techniques,
lead in investment and value chain development on as a result in new products and their cost- effective
its own (Raja, 2018). production- essential for competing in rapidly
globalizing world. For this state it has to be proactive
as the private sector which is the ultimate beneficiary
2. Broad Objectives of this Policy could is not willing to invest in this risky field (Raja, 2018).
be:
7. Reasserting Local Identity
 Increase productivity by increasing efficiency in
all processes and operation. Some cultures may attempt to resist globalization by
reasserting local identity. This may involve
 Increase profitability of all stakeholders by deliberately highlighting and celebrating local folklore
providing them appropriate incentives and and languages. For example, the French government
rewards. have banned words such as 'email', 'takeaway', and
now 'hashtag' and imposed a 'culture tax' on cinemas
 Making exports competitive in the rapidly showing non-French films (Thompson, 2017).
globalizing world.
8. Violent Resistance
 Ensuring equitable distribution of gains from A final response is the emergence of violent
enhanced productivity to all stakeholders. resistance, mostly in the developing world, as some
peoples interpret Globalization as an assault on their
3. Create Exportable Surplus identity (Thompson, 2017).

There is a lot of capacity in every industrial unit

which cannot be utilized for one reason or other
costly imported raw material, lack of finance,
inadequate BMR, shortage of expertise and etc. carry
out comprehensive analysis of export oriented
industrial units and find solutions for optimum
utilization of their excess capacity (Raja, 2018).

4. Accelerating Productivity Growth

 C. STRUGGLES TO ECONOMIC D. A CALL FOR INTERNATIONAL
GLOBALIZATION COOPERATION

1. Violent Resistance INTERNATIONAL COOPERATION

A final response is the emergence of violent  The interaction of persons or groups of persons
resistance, mostly in the developing world, as some representing various nations in the pursuit of a
peoples interpret Globalization as an assault on their common goal.
identity (Thompson, 2017).
 A governmental, company, or individual
innovator opens up new horizons for innovation
2. Technological Disruptions creation at global level and subsequently at the
national level and vice versa (ScienceDirect.com)
 Present, technological progress primarily means
an increasing capital intensity of production.
BENEFITS OF INTERNATIONAL COOPERATION
 highly developed economies, the demand for
labor is therefore declining  Cooperation among countries can be an
effective tool to strengthen, share and
 low-skilled workers in particular can then be accelerate development within countries and
affected by unemployment and loss of income across regions.
(Petersten, 2020)
 The missions and issues of international
cooperation are environment, poverty, war,
3. Economic exploitation of labor diseases, extinct animal so on and so forth

 A relationship in the distribution of economic Institutions that Govern International

wealth wherein a worker does not receive proper Relations
amount of income or entitlement
 United Nations
 Child workers who used to work in an inhumane  Department of Foreign Affairs
conditions.  World Trade Organization
 World Bank
 Safety standards are ignored to produced cheap  Asia-Pacific Economic Cooperation (APEC)
goods  Association of Southeast Asian Nations (ASEAN)

4. Wages and Inequality

 in any job market, those with a higher level of

skills are the ones who receive the most work,
and those with less skill may not receive the
benefit of higher paying jobs with a foreign
company (Natter, 2019).

 inequity develops among the working class

creating a divide within the local economies

TRUST IN THE LORD ALL THINE HEART, AND LEAN NOT UNTO
THINE OWN UNDERSTANDING, IN ALL THY WAYS ACKNOWLEDGE
HIM, AND HE SHALL DIRECT THY PATHS.

- PROVERBS 3: 4-5