| In simple terms, the phenomenon of | | | | and many examples can be taken to validate this |
| ‘globalization’ is perceived as increased | | | | argument. For instance Western European integration |
| inter-conceitedness of the world. However there are | | | | was first step towards economic globalization by |
| three primary defining pillars of globalization that | | | | European countries through signing Maastricht Treaty |
| includes cultural, political and economic dimensions | | | | in 1991 that lead to creation of single market in 1992 |
| (Potter, 2002). It was argued that ‘cultural | | | | and set base for European Union that was on full |
| globalization’ is increasing convergence of cultural | | | | operation in 1999. Similarly 12 members of European |
| styles on a global norm, with that norm being codified | | | | Community and seven members of EFTA formed |
| and defined by the global capitalist system. Now | | | | European Economic Area for free trade including 380 |
| cultural values and norms are shared and adopted | | | | million people and accounted for 40% of world trade |
| among people in a way where we are giving rise to | | | | (Meredith & Dyster, 1999). |
| one global culture. Similarly it was asserted that | | | | How ever it was the signature on First Act |
| ‘political globalization’ is regarding as erosion | | | | Embodying the Results of the Uruguay Round of |
| of the former role and power of the nation-state. | | | | Multilateral Trade Negotiations in April, 1994 that |
| On the other hand, Potter (2002:192) defines | | | | developed the official foundation of first real concept |
| ‘economic globalization’ as economy where | | | | of borderless global economy (LeQuesene, 1996). |
| “distance has become less important to | | | | The primary aim of Uruguay Round was finalizing |
| economic activities, so that large countries | | | | ways to reduce tariff barriers in developed countries |
| sub-contract to branchplants in far distant regions, | | | | as well as reduce non tariff barriers like elimination of |
| effectively operating within a ‘borderless’ | | | | safeguarding, antidumping restrictions and voluntary |
| world”. However Inoguchi (2001) attempted to | | | | export restraint (Meredith & Dyster, 1999:291). |
| differentiate between international and global | | | | Currently, WTO is a body looking after ensuring |
| economy. International economy suggests importance | | | | economic globalization primarily through trade |
| of national economies working as units under national | | | | liberalization. |
| states as a result the international economy concerns | | | | These attempts resulted in boom of what is known |
| activities that take place among various ‘national | | | | as ‘global economic convergence’, that is |
| economies’. However global economy describes | | | | ‘global integration of product’ (through |
| unity of globe where geographical distance is no | | | | world’s top manufacturing companies’ global |
| longer obstacle to economic activities. It also implies | | | | operations by conducting planning, production and |
| aggregation of the movement of goods and services | | | | joint research with companies of myriad nationalities |
| worldwide together with their concomitant activities | | | | and outside their home countries) and financial |
| including movement of technology information and | | | | markets through currency trading, baking and loans |
| currencies without ‘tyranny of distance’. | | | | and investment in bonds and equity leading towards |
| The economic globalization was flourished in 1990s | | | | global homogenization (Kenworthy, 1997). |