Chapter 1

Question 1

What is globality?

Answer 1

-the final state of a wave like process of Globalization
-desire of a cosmopolitan world society no longer hindered by nation state barriers (Ulrich Beck)

Question 2

What are the factors influencing economic globalization?

Answer 2

-Payment flows: standardization,
simplification & reduction of
payment transaction costs (credit
card, global finance networking)

-Labor costs: wage gap between
industrialized and lower wage
countries; For investment
protection: product quality &
local political framework must be
assumed. Exploitation vs Creation
of local jobs

-International logistics: safe& cost-
effective transport. Logistics chain
standardization (standardized
container formats: fast, stable
stackable, bulk transport & low
cost)

-Migration:covers shortage of skilled labor in economic sectors that require higher level of training (immigration wave in the 19th & 20th century to the US)

-Economic policy: international customs & trade agreements (GATT - General Agreement on Tariffs & Trade in Geneva 1947. Goal: dismantle trade barriers & liberalization of world trade. e.g. free trade agreements, customs union, economic union monetary union-euro)
(TTIP - Transatlantic Trade & Investment Partnership: trade agreement between US and EU; cons-affects corporate taxation)

Question 3

What local actions affect Globalization?

Answer 3

-purchasing behavior & consumer behavior: ubiquity of global products (exotic fruits), commodification of former luxury goods (feeling of arbitrariness, hybridity dilution, false goods), standardized products oversaturate market (fast-food chains-increased competition with local market)

Question 4

When did globalization begin?

Answer 4

end of middle Ages
-1453 collapse of Byzantine empire
-1492 landing America C. Columbus
-1519-1522 circum-nagivation Magellan

enabled socio-cognitive revolution to understand world as globe

Question 5

Role of history

Answer 5

to better explain current phenomena & context through history, derived from previous thought patterns

Question 6

Eurocentricism

Answer 6

the West shaped historically and socio-culturally the process of globalization and assumed supremacy over other cultural groups at early stage.

Question 7

Non-simultaneous

Answer 7

philosophical concept by Ernst Bloch that not all states & societies go through the same process of progress
(e.g. gender equality)

Question 8

Influence of protestanism

Answer 8

-Increase of literacy (reading the bible)
-work ethic inspired virtues of
thriftiness thus favored credit industry
as provider of capital for economic
development

Question 9

Where did the Industrial Revolution begin?

Answer 9

Great Britain

Question 10

Regionalism

Answer 10

tendency to shift competencies from higher level structures to smaller territorial units

regional rather than central systems

Question 11

Global risks according to Ulrich Beck

Answer 11

man made risks (unlimited, uncontrollable & no longer compensable) (e.g. nuclear reactor disasters)

in contrast to natural disasters, earthquakes.

Question 12

Name and book title of Harvard Professor

Answer 12

Niall Ferguson- Civilization: The West and the Rest (2011)

Question 13

Commodification

Answer 13

process in which a good increasingly becomes mass product = increased quantity = falling prices

Question 14

Localization

Answer 14

desire/ demand to preserve & maintain or regain local regional identity

instrument of market segmentation & product differentiation

Question 15

What is ISO 26000 standard?

Answer 15

released by International Organization for Standardization (2010):
-international guide to business ethics that contains recommendations for socially responsible & sustainable action by businesses
-focuses on: corporate governance, compliance with human rights, working conditions, business practices, ecological concerns, consumer rights & concerns, involvement in regional/local community

Question 16

What are corporate social responsibility and corporate citizenship?

Answer 16

Corporate social responsibility: efforts of companies to behave according to ethically justifiable principles with regard to their environment & stakeholders

Corporate citizenship: goes beyond business activity & includes activities (e.g. sponsoring, voluntary commitment in the local environment)

Question 17

What are the OECD Guidelines for multinational enterprises?

Answer 17

-manual covering responsible corporate
conduct at a global level.
-covers company compliance with
consumer interests including privacy &
data security & anti-corruption

Question 18

What 2 main areas of activity does corporate ethics encompass?

Answer 18

-social standard
-environmental standard

Question 19

Globalization V1.0

Answer 19

previous age of globalization:
-low level of regulation of goods, financial flows and migration (especially between European nation & USA)
-imperialism: political & economic
submission & cultural influence

British Empire driving force through territorial hegemony. Bank of England major investor in monetary system

Question 20

Globalization

Answer 20

Phenomenon of increasing interdependence between states, economic organizations, institutions & individuals across national borders and continents.

Process of optimizing production factors across national borders

The interdependencies, influences & interactions can be of socio-political, ecological, economic, & cultural nature.

Question 21

When was the last wave of Globalization, according to Knut Burchardt

Answer 21

between 1840 and 1918 end of WWI
-technological developments (e.g.telecommunication)
-innovations in transport technology (e.g. ship propeller)
-mass migration to N. America

Question 22

3 waves of Globalization according to Roland Robertson

Answer 22

1) around 1500: when European colonizers set-out to the New World

2) middle 19th century- industrialization period

3) 1939- World War II

Question 23

What are the 3 main driving forces of Globalization?

Answer 23

Technological progress: expansion and standardization of global air transport networks = reduction of cost, internet= low-cost platform

Regulatory framework conditions: allow free movement of goods & migration of labor. Liberalization of world trade from national protectionism

Demographic factors: Global population growth= new sales = need international cooperation (environmental & climate protection)

Question 24

Glocalization

Answer 24

synthesis of Globalization and localization:

-product/service developed & distributed globally but adjusted to accommodate user/consumer in local market

-individual parts of value chain (purchasing, production, distribution or marketing & sales handled local level; overarching process organized globally

Question 25

Criticism/ risk of Globalization

Answer 25

Neoliberalism: dismantling of social securities, de-regulation & privatization. Exploitation & commodification of labor from emerging countries. Capitalism

Risk of social irresponsibility & unethical operations which aren’t in accordance with principle of sustainability, child labor, forced labor when outsourcing

Question 26

What are the different concepts that describe the cultural hybrid phenomena?

Answer 26

-Multiculturalism: co-existence of different culture in one geographical area. Cultural differences are emphasized. Tolerant co-existence of cultures rather than assimilation. Demand for tolerance & respect.

-Interculturality: there are intersections between one”s own & foreign cultures (e.g. communication-gestures & facial expression). Goal: understanding between cultures not reduction of diversity

-Transculturality: overcoming or removing cultural boundaries. Counter concept of multiculturalism. Goal: mixing cultural elements on an individual level. Individuals can be at home in different cultures & at the same time unite those within themselves; not creation of global, mixed culture

-Hyperculturality: no longer assumes there are borders between different cultures. Considers that outdated & dissolved. Can also happen in hyperspace.

Question 27

What section of society does globalization affect?

Answer 27

Mobility: freedom and willingness to travel and work mobile- be flexible

Language: English lingua franca for international business. Anglicisms in other languages. International cultural exchange at young age through internships/ semesters abroad.

Socio-economic areas: traditional employment relationships are less common. Decade long career in company < temporary project related employment, freelancer. Employees compete with workers worldwide.

Digitization: enables to provide services internationally, independent of workplace. Sales market operate cost-effectively, specialization = better quality.

Question 28

What are the influencing factors of cultural globalization?

Answer 28

Media: printing press, telephone, t.v. convey info and subtle elements about culture. Internet: low-cost, real-time, multimedia based platform available globally helped develop global village.

Language: trend towards multilingualism. (english, chinese, spanish)

Mass tourism: long distance travel by plane helped in expansion of cultural horizon.

Value systems: networking between different cultures at different stages of social development (e.g. legal standards, normative value systems, religions)

Question 29

Tactics Europe used to acquire global supremacy in the 15th century

Answer 29

Modern medicine: improved hygiene against epidemics, reduction infant mortality, increase of life expectancy

Consumer society: demand of consumer good and industrial mass production

Competition: European nation states began the race to build colonies, driven by capitalism

Property rights: protection of private property by law

Work ethics: high moral normative valuation of performance principle led to higher economic performance & higher income

Science: promotion of scientific research, meanwhile rejection of science in Ottoman Empire (ban of printing press)