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This overview delves into the historical context of globalization from the aftermath of World War I through the Cold War and into the present era. It examines key concepts like nationalism, imperialism, and the ideological battle between communism and democracy. The text outlines the formation of international alliances, the competition for global influence, and the increased interdependence among nations. It also highlights the evolution of globalization through various business models and emphasizes the roles of key institutions such as the United Nations and the World Trade Organization.
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Steps toward “Globalization” World Cultures Introduction to a Global World
WWI Nationalism • Feeling of strong allegiance to a particular country • Nationalism can turn other countries against each other because it can cause competition among other nations
World War II Allied Powers (The Big Three ) • Great Britain • USSR (Soviet Union) • USA Axis Powers • Germany • Italy • Japan
Cold War AlliancesThis map shows how the United States and its allies and the Soviet Union and its allies formed opposing blocs of power during the Cold War. Europe was split between the communist allies of the Soviet Union in Eastern Europe and the non-communist allies of the United States in Western Europe. Other communist countries, such China and Cuba, sided with the Soviet Union during parts of the Cold War.
Competing for Global InfluenceContest of Democracy vs. Communism • Becomes a chess match to see who can influence the most countries • Race to attract the loyalties of unallied countries and arm them • Influenced both internal and external politics of every country on earth
Cold War Geopolitics Can the Communist Unicorn’s horn of classless social structure hold up against the Freedom Unicorn’s hooves of capitalist opportunity? How do these superpowers compete? How do you influence nations to join your team?
What each “team” offers USA and Allies • Promoted a version of free market capitalism and democracy • Nuclear Missiles Soviet Union and Allies • Favored a centrally planned economy and a socialist system (Citizens participated indirectly through Communist Party) • Nuclear Missiles Both sides knew that as they continued to increase their control over countries, and arm them with nuclear weapons, there was a good possibility that both sides could be destroyed.
Collapse of Communism and Globalization emerges Concepts of a new global era International Cooperation United Nations The World Bank International Monetary Fund World Trade Organization Non-government Organizations (NGO’s) Milton Friedman’s “The Pencil” • Interdependence • Cooperation • Cultural diffusion • More Capitalism/Democracy • Less Communism Democratization • Broad Prosperity – growing middle classes • Education –leads to wanting input in government • Civil Society – informed common purpose among the people
FOUR LEVELS OF GLOBALIZATION Multi-domestic • Business has several independent units in different countries with little communication International • Headquarters in one country with branches in other countries . • Home country bias in other branches Trans-national • Loosely integrated business units in several countries • Make an effort to address local needs Global • View the world as a single market and apply needs of all countries for success
