This project has been funded with support from the European Commission (226388-cp-1-2005-1-de-comenius-c21). This publication reflects the views only of the authors

This project has been funded with support from the European Commission (226388-CP-1-2005-1-DE-COMENIUS-C21). This publication reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.
Module 3 (Theory)


Socrates Comenius 2.1
Module


Globalization and Internationalization


Authors: Murat Ali DULUPÇU and Onur DEMİREL, Isparta
E-Mail: [e-mail], [e-mail]
CONTENT

1. Defining Globalization 4
1.1. Understanding Globalization: Behind the Curtain 5
1.1.1. Historical Background 5
1.1.2. Stages 6
1.1.3. Increasing Trade as a Vehicle 7
1.1.4. Multinational Companies as a Transporter: Theories of MNCs and FDI 8
1.1.4.1. Theories of MNCs 8
1.1.4.1.1. Location Theory 8
1.1.4.1.2. Internationalization Theory 8
1.1.4.2. Theories of FDI 9
1.1.4.2.1. Product Life Cycle Theory 9
1.1.4.2.2. Internalization Theory 10
1.1.4.2.3. OLI Paradigm (Eclectic Paradigm) 10
1.1.4.2.4. Other Theories 11
1.2. Multi Faces of Globalization 11
1.2.1. Death of Distance 12
1.2.2. End of the Nation State 13
1.2.3. Hegemony of R&D 13
1.2.4. Cultural Erosion 14
1.2.5. Glocalization 15
2. Impacts 15
2.1. Visible Impacts 15
2.1.1. Information Tachnologies and Technology Flows 16
2.1.2. Labor Hyper-Mobility and Global Distribution of Labor 17
2.2. Deep Impacts 18
2.2.1. Economic Issues 18
2.2.1.1. Income, Income Distribution and Poverty 18
2.2.1.2. Capital, Finance, FDI and MNCs 19
2.2.1.3. Production and Competitiveness 21
2.2.1.4. Globalization of Knowledge 22
2.2.2. Environmental Issues 23
2.2.3. Social Issues 24
3. The Debate 25
3.1. Advocates of Globalization: Neo-Liberal View 25
3.2. Opponents of Globalization: Anti-Globalist Movement 26
4. Theories of International Trade 28
4.1. Smith and Ricardo: Classical View 28
4.2. Neo-Classical Theories of Trade 29
4.3. Alternatives 30
4.4. New Trade Theories 31
5. Regulating Globalization and Internationalization 32
5.1. International Organizations 32
5.1.1. International Monetary Fund - IMF 32
5.1.2. World Bank - WB 33
5.1.3. Organization for Economic Co-Operation and Development - OECD 34
5.1.4. World Trade Organization – WTO 34
5.1.5. United Nations – UN 35
5.2. International Integrations 35
5.2.1. European Union - EU 35
5.2.2. Asia-Pacific Economic Co-Operation - APEC 36
5.2.3. North American Free Trade Agreement - NAFTA 36
5.2.4. European Free Trade Association - EFTA 37
5.2.5. Others 37
6. Future: Qua Vadis? 37