It is difficult to pinpoint exactly “when” globalization started. One can argue that Marco Polo's travels or Columbus' contact with the New World was a sign of globalization. Some scholars consider the last for decades as the start of globalization (Steger 18, 2003). In Steger's assessment of globalization, he considers five distinct periods in world history that contributed to the level of interconnectedness we have today.

The Bretton Woods system signed in 1944 was put in place in order to stabilize the monetary system and the commercial and financial relations in the world. In retrospect, the world leaders believed that economic depression and lack of governing body were some of the fundamental causes of World War II. With the US leading the world, the International Bank for Reconstruction and Development was created with the goal of postwar reconstruction of Europe.

Capitalism or neo-liberalism became the predominant economic ideology during this time. The deregulation of financial and trade relations meant freeing capital investments. Investors had more confidence to invest in different parts of the world. The ideological belief that markets were self-regulating and that they needed to be left alone made way for laissez-faire trade relations. Transnational Corporations (TNCs) or Multinational Corporations (MNCs) became powerful players in international relations. Companies such as Walmart, Samsung, Honda, and General Electric expanded their markets and production to various parts of the world. The competition for cheap labor and corporate-friendly environment were incentives for MNCs to shift production and in some cases research and development outside of their home countries. Home countries refer to the TNC's country of origin and the host country, the state the TNC ventures to operate. For example, Sony, an MNC associated with Japan, the home country, moves some of its production in Mexico, the host country.

What globalization has done to MNCs is to blur the lines between countries and corporations. Ownership of companies has become more global. Jaguar, a car brand associated with Great Britain was sold to Ford in 1989, an American company, which was eventually sold to Tata Motors, an Indian MNC. One of the major share holders of Citigroup is Prince Alwaleed Bin Talal Alsaud from Saudi Arabia.

The interconnectedness of finance and trade means that economic boom and busts have become global. The 2008 real estate collapse in the US has affected banks all over the world. At the same time, the failure of Iceland's banks has affected 420,000 British and Dutch customers, and has frozen assets from these countries, including the London's police force (Bloomberg News 10/9/08). In general, capitalism, as an economic system, is conducive to globalization. The need to expand markets, the search for raw materials, and cheap labor leads to the breakdown of economic and political barriers.

Commodity chains, refers to the process of producing goods. In Travels of a T-shirt in the Global Economy: An Economist Examines the Markets, Power, and Politics of World Trade (2006) by Rivoli traces the life a t-shirt from the cotton to the sewing, the production, and the shipment of the end product. Rivoli illustrates the connection between textile producers and sweatshops and the benefits and rationality of division of labor. “Commodity Chains and Marketing Strategies: Nike and the Global Athletic Footwear Industry” by Miguel Korzeniewicz traces the success of Nike in marketing and advertising and how it has used globalization and the flexibility in shifting production to its advantage.

These commodity chains and trade relations has changed the way business is done. For example, a Dell “assembles” computers but does not necessarily produce the parts of the computer. Open up a Dell computer and the motherboard, the processor, and all the other components are made by different manufacturers. What Dell does is put these parts together! In essence, globalization has led to the decentralization of production and manufacturing. From a sociological point of view, these changes have major impacts in various aspects of life. Jobs, The types of jobs that will be available and skills required are going to change and part of sociology how these changes are going to affect other parts of society.

There are also a number of political changes that mark a globalized world. The financial and political integration of the European Union (EU) bas helped breakdown trade and migration barriers in the region. With the fall of the Soviet Union, the former states of the Soviet bloc such as Russia, Ukraine, Lithuania are adopting a capitalist economy. The creation of the UN and other international organizations (IGOs) and international non-profit organizations (INGOs) has fostered a sense of a global society. INGOs such as Greenpeace, International Red Cross are examples of a global collective effort to solve problems that affect world citizens.

Some believe that the rise of international institutions has shifted power from nation-states. The loss of sovereignty is a concern for countries. For example, under George W. Bush, the US withdrew from the Treaty of Rome of 1998 that created the international criminal court (ICC). The ICC, was signed by Bill Clinton, but the fear of the US military subjected to the justices of the international court has led to the withdrawal. The US, although a superpower, is notorious in the international community for safeguarding its sovereignty at the expense of establishing international laws. The US has also refused to sign the Kyoto Protocol, an international agreement that aims to reduce greenhouse gas (GHG) emissions. Even though 180 states have since signed the agreement, the US, afraid of international regulations imposed on US corporations has refused to join the effort to address climate change.

Theories on globalization are divided between two camps: the skeptics and the hyperglobalizers. Skeptics believe that the level of interconnectedness we are experiencing is nothing new and that globalziation is not compromising the old world order of the nation state as the organizing element of the world community and not international organizations. Skeptics focus on the example above, such as the US protecting its sovereignty as proof that resistance to globalization prevents the complete breakdown of trade and political barriers. In general, globalization is seen as a more “limited and uneven” process (Steger 15). Only certain regions of the world are integrated into the world economy and globalization is headed by a handful of regions and countries, mainly those in Europe, North America, and East Asia. Skeptics might point to the chart and graph below as proof to the uneven integration of the world.

On the opposite side of the spectrum are the hyperglobalizers, a group which believes that globalization is deconstructing the world order and creating a borderless world (Ohmae 1995). Hyperglobalizers also believe that a global culture is emerging, a culture dominated by the West. As MNCs infiltrate local economies, the internet is homogenizing information and language, and establishments such as McDonald's are spreading Western values of efficiency, individualism, and capitalism, local culture is replaced by Western ideals.

Scholars such as Benjamin Barber (1995) and pundits like Thomas Friedman (2000) point to the violent reaction to the westernization of the world. In Jihad vs. McWorld, Barber sees McWorld, or the infiltration of Western ideals as a form of cultural imperialism that brings with it the inequalities of capitalism. As people are exposed to the harsh realities of capitalism and Western pop culture, resistance becomes violent, such as the emergence of fundamentalism or the return to tradition. The rise of terrorism and the proliferation of socialist democratically elected leaders in Latin America such as Evo Morales of Bolivia, Hugo Chavez of Venezuela, and Rafael Correa of Ecuador are signs of the rejection of the Westernization of the world.

Lastly, transformationalist take the middle road in their analysis of globalization. Unlike hyperglobalizers, transformationalist do see globalziation as a one-way process, rather, where the rest of the world is a victim of Western imposition. Non-western countries are not powerless in the current world system. Moreover, globalization leads to a form of glocalization, wherein a fusion of a myriad of cultures merge to form a hybrid culture. This culture does not completely eliminate the local culture, but compliments it with foreign elements.

Internet usage stats from the CIA.

The concept of stratification is not just within countries as discussed in the previous chapters, but also between countries. In talking about states, we distinguish between developed and underdeveloped, industrial and industrializing. Development, of course, is a relative concept. The predominant measurement deals with a country's monetary wealth, typically measured by Gross Domestic Product (GDP). The GDP is the total value of goods and services produced in a state in a year. Using GDP as a measure of a country's wealth has its limitations since it does not tell us how wealth is distributed. For example, a country can have a high GDP, but if only a limited number of people own the wealth, does that make that country developed? To supplement GDP, social scientists use the Human Development Index and the Gini coefficient to measure distribution of wealth. The Gini coefficient is a ratio with values from 0 to 1, with 0 meaning perfect equality and 1 perfect inequality. HDI, on the other hand, measures literacy rates, mortality rates, life expectancy and GDP per capita. Below is a table of countries with their Gini coefficient and HDI rank. There is a positive correlation between HDI and Gini coefficient. Meaning, countries with low HDI ranking (having a low HDI ranking in this sense is positive), also have a lower Gini coefficient. Notice however, that this is not a perfect correlation. For example, even though the US is 12th in HDI ranking, it has a relatively high Gini coefficient at 40.8 (high levels of inequality). Most Western European countries and Japan have relatively lower Gini coefficients (more equality) and high HDI ranking (high rates of literacy and low rates or mortality). For example, Sweden is 6th in HDI and has a Gini of 25. Japan is ranked 8th in HDI with a Gini of 24.9.

The graph below compares Mexico and Saudi Arabia's GDP per capita and HDI. This shows how even though Saudi Arabia and Mexico have HDIs in very close range, Saudi Arabia's GDP per capita is quite higher than Mexico's. This shows how important it is to combine different types of measurements in determining what it means to be developed and which countries are developed.

Bhutan, a Buddhist state in Asia rejected what they think is a one-sided view of development and has proposed its own measurement of development. The former King of Bhutan, Jigme Singye Wangchuck, in 1972 coined the term Gross National Happiness (GNH) to measure quality of life. The philosophy is that true development cannot be measured in financial terms, but by spiritual development. The approach calls for a more egalitarian and sustainable economic development that promotes the environment, compassion, and cooperation.

Immanuel Wallerstein (1930) developed the World Systems theory, which conceptualized the division of labor at the global level. According to Wallerstein, the worldis divided into three economic zones, the core, semi-periphery, and periphery. The core countries, which are the industrialized countries dominate trade and own the bulk of world capital. Core countries include the US, Japan, and Great Britain. The semi-periphery countries are int transition. They are semi-industrial with moderate incomes per capita. Countries such as South Korea, Brazil, Taiwan, Hong Kong, and Singapore are examples. Lastly are the peripheral countries, which are mostly agricultural and raw material exporters. Examples are Bolivia, Nigeria, and Cambodia. In lieu to the conflict perspective, the world systems theory posits that inequality and exploitation is a main feature of world relations.

The effects of globalization are complex and dynamic. It is easy to fall prey to a dichotomous view of the social effects of globalization as being good or bad, but in reality, the effects are quite complicated and relative. A person's view of whether or not globalization is advantageous or not for society depends on a person's occupational status, place of residence, social class, and skills. A radiologist in the US who sees his/her job outsourced to the Philippines and a clerk who gets laid off because of automation might have a negative view of globalization, but an Indian engineer who works as a programmer for google in India and an American architect who designs buildings for the rising middle class in China might not have such a negative view of globalization. Friedman's adroit assessment of the effects of globalization in The World is Flat (2007), shows how understanding how globalization works and how it will affect society and individuals is key to preparing for a global world. Corporations are not governments and they do not have allegiance to their citizens. Like proper capitalist entities, their allegiance is to profit. It is important to keep in mind that companies will seek out the most efficient and talented workers and citizenship is not necessarily a criteria. This is one of the harsh realities of globalization, capitalism, and technological change.

In the United States, there has been a backlash by labor against outsourcing and offshoring. Offshoring is a process wherein a company relocates its business to another country. On the other hand, outsourcing refers to when a company subcontracts and division of its production process to another company. For example, Gap hiring a Vietnamese factory to sew its shirts is an example of outsourcing, while Qualcomm opening a research design office in Ukraine is an example of offshoring.

Capitalism and the production of goods means the increased exploitation of natural resources and increased consumption. The ability to produce goods at an accelerated pace means the need for a larger market to sell goods. The growing middle class in China, India, and Brazil means more people buying cars, computers, clothes, and other goods. As China has taken on the role of the world's factory, pollution has become a major problems. The dyes used for each piece of clothing made, the coal, oil, and energy used to produce goods, the energy used to transport the goods are all contributing to pollution and global warming. As globalization is changing our world, we are also drastically changing our environment. The Great Pacific Garbage Patch or the Pacific Trash Vortex is a huge patch of the ocean as big as Texas that is filled with tons of garbage and plastics. This is just one of the environmental disasters that has led to the reusable-bag movement, that has led to the banning of the use of plastic bags in Ireland, China, and some cities in the US such as San Francisco.

Trash and chemicals in our oceans is not just contaminating our oceans and killing animal life, but compromising our food supply that is affecting our health. There is an interconnectedness in our ecosystem that is at the heart of sociological thinking. The high levels of mercury in tuna is an example. Here is a consumer report on safety concerns regarding tuna. This article is optional to read, but if you eat Tuna or know people who do, it might be a good idea to read it.

Climate Change is the increase in the earth's average temperature as a result of the greenhouse effect. The more we consume the more energy is needed to satisfy our needs. One aspect of climate change and pollution is that it affects all of us. Pollutants cross national borders, which makes environmental problems a collective problem. Pollution in China does not stay within China's borders, but crosses the Pacific and affects air quality in the Western part of the US (NPR Climate Change Series). Contaminated waters, the hole in the ozone layer, and poor air quality our affecting our everyday lives and our health. The sustainability of our way of life maybe the greatest challenge of the 21st century.

Some resort to violence and some to democratic and peaceful means to either resist or usher in change. Following Barber's (1995) argument, violence, war, and terrorism can be a reaction to change. One can argue that the rise of Islamic fundamentalism is a reaction against the Westernization of of the Middle East and South Asia. In Cuba, to oust the dictator Fulgencio Batista y Zaldivar (1901 – 1973), Che Guevarra and Fidel Castro started a revolution. To bring about change in Iraq, the US invaded the country and toppled Saddam Hussein. These are examples of violent actions to address change.

Social Movements are another way to respond to change. Social movements are a collective reactions to either resisting or bringing about change. The Civil Rights Movement, The Anti-Vietnam War, The Mother's of Plaza de Mayo in Argentina, the Velvet Revolution in Georgia in 2003 that peacefully ousted President Eduard Shevardnadze, and Gandhi's non-violent movement to liberate India from the British are examples of a social movements. President Obama's campaign and eventual victory during the 2008 presidential election can be considered a social movement. The donations, number of volunteers, and the sense of collective action his victory has brought has made his victory a movement according to McAdam, a sociology professor at Stanford University (Medill 10/20/08).

The New Social Movements, in contrast, are organizations and collective action based on common ideals and values. For example the Sea Shepherd Conservation Society is a group that has come together to protect the oceans. Their membership is not based on citizenship but on an ideal: to protect the environment. Their recent task has been to protect the whales from Japanese hunters. Whale meat is a delicacy in Japan and the country is the number one consumer of fish.

Social movements can either be peaceful or can become violent. With the internet and ease in communicating with the world, social movement are becoming more global. The talk of a global society is made possible as lines of communication are freed; issues such as global warming require an international response, and the movement of goods and people through trade and migration have become more common. Understanding one's place in this changing world is one of the goals of sociology. As we are faced with new challenges and problems, sociology allows us to analyze how and why these changes are occurring, and what we can do as a community and as individuals in the process. It is this awareness and ability to analyze events from a broad and layered perspective that sociology offers to us.

The election of Donald Trump, the rise of Marine Le Pen are an example of how populist leaders gaining political power. These personalities thrive on protectionists politcies and scaling back their country's integration in global economy and politics.

• Bretton Woods System
• Capitalism
• Collective Problem
• Commodity Chains
• Compression of Time and Space
• Core
• Cultural Imperialism
• Gini Coefficient
• Global Inequality
• Glocalization
• Great Pacific Garbage Patch or Pacific Trash Vortex
• Gross Domestic Product
• Gross National Happiness
• Home Country
• Host Country
• Human Development Index
• Hyperglobalizers
• Neo-Liberalism
• New Social Movement
• Offshoring
• Outsourcing
• Periphery
• Political Globalization
• Semi-Periphery
• Skeptics
• Social Change
• Social Movement
• Sovereignty
• Subcontracts
• Transformationalist
• World Systems Theory