Expanding global communication has transformed the way that markets, firms, and individuals interact.
Many traditional economic barriers have been reduced by technological innovations.
People are able to buy goods and services from all over the world.
Firms and workers face more competition as a result of the open markets.
Changes have allowed firms, states, and individuals to move their money internationally and rapidly, jumping in and out of markets as they see fit.
The creation of railroads and the telegraph in the 19th century helped transform economies.
A firm uses outsourcing to move some of its work to a secondary business that can do the work more efficiently or cheaply.
In the past, most of this outsourcing was done inside of domestic or regional economies.
The rise of a postindustrial and information based economy has meant that many jobs can now be moved a great distance away.
Call centers, data processing, animation, and software are examples.
In 2002, offshore outsourcing accounted for over a billion dollars in economic activity.
India is seen as a major provider of outsourcing labor, but other countries have been active as well.
Economic globalization is a vehicle for global prosperity.
The expansion of international economic connections makes it possible to allocate goods and services, labor, and finance through a broader market, one unfettered by tariffs and other obstacles that states might erect.
It is possible for countries to export what they produce the best.
Capital flows and corporations take advantage of new opportunities to create jobs.
Wealth is spread more effectively through open markets for goods, labor, and capital and so raises standards of living worldwide.
Globalization is seen as a positive, liberalizing trend, a global division of labor that is lifting billions out of poverty and generating greater prosperity by allowing more people to be a part of an international marketplace for goods and labor.
Globalization is associated with the decline in extreme poverty in Asia.
Others are suspicious of economic globalization.
In Chapter 8 of the political economy, optimists emphasize how globalization has increased overall wealth, while critics point to rising inequality.
It's true that increased wealth has reduced inequality in many countries, but it's also true that inequality has grown in many countries.
The variety and quality of goods have increased because of globalization.
It has contributed to the loss of jobs when firms have been able to move overseas to take advantage of cheaper labor or lower levels of regulation.
Critics say that the globalization of firms, markets, and labor means that businesses are able to avoid government taxation, oversight, and public accountability.
As economic globalization weakens state capacity and autonomy, it is replaced with a global economy that lacks any control.
Equality and freedom are compromised.
Whether globalization and the political and economic transformation it brings become instruments of greater cooperation and prosperity or sources of conflict and hardship may depend on how societies themselves are transformed by globalization.
We explored how political globalization may challenge state sovereignty and power, and how economic globalization may change markets for goods, labor, and capital.
The idea of societal globalization sees a similar process in which traditional societal institutions are weakened, creating new identities that do not belong to any one community or nation.
In the premodern world, people's identities were limited and focused on family, tribe, village, and religion.
National identities began to emerge with the rise of the state.
Individuals began to see themselves as part of a larger community of millions of strangers bound together by myths and symbols.
The idea of national identity was reinforced by the development of borders and citizenship.
The central aspects of individual and collective identity are giving way as globalization proceeds.
Traditional identities are being challenged just as the state and domestic economic institutions are being challenged.
Increasing mobility of humans, fleeing conflict but also seeking better economic opportunities elsewhere in the world is one factor.
3 percent of the world's population moved across international borders in 2015. migration flows have the potential to change the cultural and political landscapes of many countries as they deal with questions of integration, multiculturalism, and citizenship.
The capacity of individuals to become connected is increased by technological innovations like the Internet and cell phones.
Cell phone penetration is high even in developing countries, and broadband is expanding across the globe.
People find ways to link up with one another across time and space as electronic communications grow.
Text messaging, websites, and social networks are all examples of virtual connections that have become important or even displaced physical spaces.
Mobile broadband subscribers access the Internet on their mobile devices.
There are two possible trajectorys that we can point to.
Global multiculturalism is engendered by societal globalization.
Different cultures will link and combine to a greater extent thanks to connections that are not bound by traditional barriers of time and space.
It is a universal, global, or "worldly" political order that draws its identity and values from everywhere.
The city was where disparate ideas usually came together.
A globalized world has the potential to bind people together regardless of where they are.