Understanding & Use of the Internet Internet & Globalization Spring 2012 G. F Khan, PhD

1. Understanding & Use of the Internet Internet & Globalization Spring 2012 G. F Khan, PhD

2. In this Class • Globalization and its meaning • Internet & Globalization • Advantages and disadvantages • Internet and Anti-globalization

3. What is Globalization?

4. What is Globalization? • Globalization means different things to different people. • In the business community it refers to a 'free world' for trade, commerce and money • For political scholars and politicians the disappearing or at least challenging of state borders is central. • Globalization for a common citizen means he or she can eat the same food, wear the same shoes or watch the same television programs as someone living on the other side of the planet

5. What is Globalization? • The act, process, or policy of making something world wide in scope or application (The American Heritage). • Globalization refers to the process by which transnational forces cross and ignore borders – in some ways weakening and diminishing states (Clemens). • Globalization is about more than economics. America’s purpose must be to bring the world together around democracy, freedom, and peace and to oppose those who would tear it apart (President Clinton). • Globalization can be defined as the process of integrating the world economically, politically and culturally (wikipedia).

6. Accelerator of Globalization • Accelerators • The spread of new communication and information technologies • ICTs lower the costs and obstacles of organizing collective action significantly • Global communication, the standardization of world time, and global competitions such as the Olympics and the Nobel Prize • The end of the cold war-the collapse of communism • Accelerators from the perspective of economic globalization • Global Trade e.g. WTO (World Trade Organization) • Multi-national companies • Global financial markets

7. Characteristics of Globalization • 1. De-territorialization (vanishing boundaries or borders) • 2. Interconnectedness (e.g. networked society) • 3. Time and distance irrelevant • 4. Global markets, cultures, and products Characteristics of the Internet?

8. Properties of the Internet? • Everywhere (Universality) • Always on • Information Asymmetry Shrinker • Transaction-Cost Reducer • Creative Destroyer • Low Cost Open Standard • Infinite Virtual Capacity

9. Is globalization caused by internet or the Internet caused globalization?

10. Internet & Globalization • Industrial – emergence of worldwide production markets and broader access to a range of foreign products for consumers and companies. • Particularly movement of material and goods between and within national boundaries. • Easy to access these markets and products due to the Internet.

11. Internet & Globalization • Financial – emergence of worldwide financial markets and better access to external financing for borrowers. • Economic – realization of a global common market, based on the freedom of exchange of goods and capital • Easy to access and organized these financial markets due to ICTs

12. Internet & Globalization • Job Market- competition in a global job market. • Before job market competition was limited to local markets. • But, with the advent of the information age and improvements in communication, this is no longer the case. • Because workers compete in a global market, wages are less dependent on the success or failure of individual economies.

13. Internet & Globalization • Political –Political action is made easier, faster and more universal by the developing technologies • E.g. Internet make it easy to regulates the relationships among governments and guarantees the rights arising from social and economic globalization. • Global Social Movements (GSM) • This concept refers to a network of organizations that is not bound by state barriers and that connects people and places that were formerly seen as distant or separate • The internet offer new opportunities for international collective action and GSM

14. Internet & Globalization • Informational – increase in information flows between geographically remote locations. • Internet Properties: • Everywhere • Information Asymmetry Shrinker • Easy access to Information

15. Internet & Globalization • Language – Global language • E.g. the most popular second language is English • English is the dominant language on the Internet.

16. Internet & Globalization • Competition – Survival in the new global business market calls for improved productivity and increased competition. • Internet helps companies to exist globally • Due to the market becoming worldwide, companies in various industries have are using technology in order to face increased competition • Transaction-Cost Reducer

17. Internet & Globalization • Cultural- spreading of multiculturalism • Internet helps in: • growth of cross-cultural contacts • Increase one's standard of living by making it easy to enjoy foreign products and ideas. • Adopt new technology and practices • Increase of cross-cultural marriages • Emergence of Internet Culture • Some consider such "imported" culture a danger, since it may supplant the local culture • Others consider multiculturalism to promote peace and understanding between people

18. Internet & Globalization • Legal/Ethical -The creation of the international criminal court and international justice movements. • Crime importation and raising awareness of global crime-fighting efforts and cooperation. • The emergence of Global administrative law. • Religious-The spread and increased interrelations of various religious groups, ideas, and practices and their ideas of the meanings and values of particular spaces. • Internet and other communication technologies facilitate legal/ethical issues and extending religious activities thus increasing globalization.

19. Advantages of Globalization • Freedom to communicate • Freedom to trade • Freedom to think • Cheaper products • Faster deliveries • More products available • Labor advantage

20. Disadvantages • Free market & deregulation of trade may harm local companies, • Environmental degradation • E.g. pollution • Income inequality • e.g. richer countries exploit poor nations for economic benefits • Economic inequality • Social problems • E.g. Americanization

21. Anti-Globalization Struggle • Activist believe that corporations use globalization as an umbrella to maximize profit at the expense of other countries e.g.: • Violate Human rights (especially workplace rights and conditions) • E.g. sabotaging work safety conditions and standards, labor hiring and compensation standards • Violate environmental conservation principles • E.g. Extract local resources etc • Independence and sovereignty • Common targets include: • The World Bank (WB), International Monetary Fund (IMF), the Organization for Economic Co-operation and Development (OECD) and the World Trade Organization (WTO) and free trade treaties like the North American Free Trade Agreement (NAFTA), etc

22. The internet and Anti-globalization • How can internet help anti-globalization Global Social Movement (GSM)?

23. Internet Can be used to: • Support a global anti-globalization movement by: • (1) forming a network of organizations • (2) mobilizing people to join, mostly unconventional actions • The Internet can actively mobilize people to demonstrate against globalization • (3) to obtain social or political goals • Anti-globalization activist also take advantage of globalization(e.g. global networks and groups) to protest against the dark side of globalization

24. Conclusion • The Internet has significantly affected globalization. • Also, globalization has affected the spread of ICTs, such as, Internet • Globalization affects economic, cultural, and social aspects of our society in many ways. • Globalization has both good and dark sides • The benefits maybe more then disadvantages

25. Next Lecture • Mobile Living

26. Thank You Questions & Comments