Abstract: Globalization is multifunctional and multidimensional process that changes nature of political, social and

economical relations. This process attributed to all transnational factors and forces having influence on every international
relation. Today, maritime trade is considered as one of the basic factors in globalization and main countries in globalization
are playing their most important roles in seas, especially in field of maritime trade. Since, importance of maritime trade is
growing day by day, therefore, international straits are very interested by modern geopolitics, but already their importance is
going to be more economical. Accordingly, this study considers important international straits having role in globalization
analytically and descriptively. Results are indicating that the globalization is reason of ever-growing trade, especially in field
of maritime trade. Some of international straits are most important strategic points due to expansion of maritime trade and
geographical points.
 

On November 21, Friday, 1997, the GISPRI International

Symposium on the above subject was held at the Keidanren
Kaikan Hall. Animated discussions took place, with more 120
participants from Japanese research institutions, universities,
member corporations and embassies of different countries.
The symposium consisted of two sessions - the morning
session was dedicated to "Essence of Globa-lization"
(Moderator: Mr. Chikao Tsukuda, President, Institute for Trade
and Investment) and the afternoon session to "Globalization,
the Era of Companies Choosing the Countries. Where Japan
Goes?" (Moderator: Mr. Akira Kojima, Editorial Page Writer,
Nihon Keizai Shimbun). This paper briefly reports on the first
session.

< Session 1 > Essence of Globalization

Mr. Chikao Tsukuda, President, Institute for Trade and Investment,

acted as moderator of this session. First, Mr. Tsukuda emphasized the
significance of the GISPRI Symposium. He pointed out that the global
economy was being targeted at Asian countries. He went on to say
that although the Asian crisis was posing a global threat, the key to
the problem was being held by Japan, the world's largest creditor
nation. However, he added, Japan, facing a weakened economy and a
financial crisis, is both a factor of the problem and a source of solution
to it (quoted from the editorial article of a November 20 issue of the
Financial Times).

Then, three speakers presented their own reports, followed by a panel

 discussion. Views expressed are summarized below.

Mr. Michel Fouquin,

Acting Managing Director,

CEPII of France

"Light and Darkness in Globalization"

1. Globalization in the World

Globalization started in the middle of the 1980s and this process is expected
to be completed by the end of the 1990s. What has provided tractive force
for this process is a liberalization of capital inflow. Progress has been made
in the deregulation and liberalization of both visible and invisible or services
trades. The liberalization process has been going on both in the services and
manufacturing industry sectors. The service-type industries, accounting for
as much as three-fourths of GDPs of advanced countries, are playing a
particularly important role in this process.

2. Globalization in Europe

European unification and globalization are sometimes mixed up. European

unification is a grand and ambitious initiative, forcing the nation-states to
cease to exist. The European Union had six member nations in 1957 when it
came into being and the membership is now increased to fifteen countries.
In the years ahead, EU is predicted to have more than 25 members, so that
the decision-making process is likely to become effete. Hence, an
institutional reform of EU is inevitable.

3. What Are Real Problems of Globalization?

Financial liberalization means that the financial sector is unable to control

itself. This has caused a new problem. Thailand, which was plunged into a
financial crisis, had inadequate regulations on its money and credit market.
How this country can incorporate regulations into the financial mechanism
and improve the market will be the key to the problem. There are many
countries that are benefiting from globalization by managing restructuring
and opening-up policies wisely. On the other hand, however, the income
differential continues to be widening and inequalities are increasing even in
America and European countries.

4. Conclusion

Europe has hitherto paid too much attention to the European unification
process and devoted no attention to the rest of the world. At present,
Europe is groping for new external relations. Efforts are twofold. One is to
reinforce relations between the European and American regions, facing each
other across the Pacific Ocean. The other is to strengthen relations between
Europe and Asia, as is represented by ASEM.

Dr. Adam S. Posen,

Associate Fellow,
Institute for International Economics

"Global Capital and National Policies"

Introduction

Globalization promotes market integration on one hand and costs greatly on

the other. Globalization does not necessarily take the same form as the
American model in various parts of the world. National policies are
independent. East Asian nations will not be forced to follow the models of
other countries.

1. Macroeconomic Aspects

The monetary crisis cannot be contained unless a voluntary rule called the
fixed exchange rate system is established. A high-inflation country should
go on a diet known as a monetary policy. Otherwise, it will suffer from a
runaway of capital from its own market.

How to use funds is left to the choice of a national government without

being affected by globalization. A failure in the financial policy will result in a
serious impact on trade. A solution to this problem will depend on the option
of the nation. It is different from the globalization trend.

2. Microeconomic Aspects

A labor market occupies an important position in the world model. Still, the
labor market does not change readily. In Germany, however, corporations
and labor unions have talks and agree on wages and other working
conditions, to which workers are requested to adjust their demands. What it
implies is that the labor market needs flexibility.

3. What Does the U.S. Expect from Globalization?

The United States has a large marketplace and will continue to hold a
dominant position in the world. Globalization, however, does not mean the
U.S. economy goes well. Japan has thus far taken full advantage of
globalization. Globalization itself was Japan's choice but Japan should not
follow a wrong course in taking the leadership in Asia. Japan's political
philosophy will be an important consideration in this regard.

Mr. Akira Kojima,

Chief Editorial Writer,

Nihon Keizai Shimbun

"Globalization and Role of the Nations"

1. Definition of Globalization

An end of the Cold War and change in information technology can be cited
as two of the elements of globalization. It is the beginning of a new history
in that the market globalization phenomenon resulted in the creation of a
global marketplace. In the 1980s, nations of the world became increasingly
interdependent, thus leading to the establishment of a global marketplace.
Japan, North America, and Europe come to be linked to one another as if
they were forming one single market and business dealings are going on
that market. This market is being connected with Asian and Latin American
countries.

Globalization involves competition for how well costs can be managed. To

face this competition successfully, there are three options available.

The first step concerns how labor costs should be lowered. The share of
labor cost in total costs must be decreased.

The second action is a reform of the management process. The proportion

of personnel expenses to total costs should be reduced by introducing
robots and computers.
The third and last measure is to adjust prices through competitive policy. In
the globalized environment, corporations are in no position to fix prices.
Enterprises have two options. Closing down business or doing business in
overseas markets seeking lower personnel expenses. Private enterprises will
also be required to build non-price competitive power by acquiring
intellectual property rights concerning technologies, products and services.

2. Role of Nations in Globalization

In the globalized environment, corporations which are based solely on one

single nation-state are experiencing a decline in their competitive position. A
state is too large to handle domestic microscopic issues and too small to
deal with global problems. What a state should be is now the question at
issue. With the progress of globalization, a move toward the market
economy is certain to become more brisk and a natural consequence of this
development will be the necessity for a minimum standard applicable to all
members of the international community.

To make globalization successful, the following three factors are necessary.

There is a large market. There are many corporations seeking new entry
into that market. And adequate information is provided and everybody has
an equal access to it. Under these conditions, private enterprises are able to
act on their own responsibility so that the market will be vitalized. Japanese
corporations disclose information to the administrative authorities but they
do not disclose it to the market. If there is any foreign bank wishing to buy
out a Japanese bank, it will not be able to obtain full information that the
latter has bad debts. Such an information disclosure system is distorted.

3. Conclusion

Globalization can change the interdependent relations between nations as

long as there are borderless issues. What is important is a coordination of
policies among various countries. Over the past ten years, signs of war
between nations have died down. Conversely, regional or domestic conflicts
have come up; the poverty problem facing these countries has driven
people to despair of their future. Thus, how the nations can work together
to solve problems is a key question that must be answered. The nations
have many tasks to tackle so as to cope with problems arising newly from
the globalization and borderless environment.

　
<< Panel Discussion >>

-Dr. Lee Poh Ping,

Independent Scholar, ex-Full Professor of Faculty of Economics and

Administration, University of Malaya:

Globalization is the result of interactions among the nations of the world. In

the colonial period of the 19th century, globalization progressed. Differences
between now and those days are twofold.

First, the current globalization is characterized by being mutual. During the

past colonialization period, the colonial policy was pursued with political
intentions. Currently, all components of the world economy are connected
with one another through the linkage of trade and financing. Secondly, with
rapid progress in globalization, new information is now made available
almost instantly anywhere in the world.

There are some, on the other hand, who take a critical view of globalization,
arguing that the progress of this process, as the shady side of it, brings
about an increase in the number of unemployed persons and an expansion
of income differentials, thus causing inequalities. However, their contention
is not so strong yet.

-Mr. Ken Iijima,

Deputy President and Executive Director, Sakura Institute of

Research

1. Progress of Globalization in Asia

In the 1980s, the Asian market became increasingly globalized. In this

market, the outward orientation and the inward orientation appeared
alternately, almost every five years.

1981 - 1985 (Period of Outwardness)

The U.S. economy expanded thanks to what was then called "Reaganomics."
It resulted in an increase in Asian-made products into the American market.
With a favorable exchange for the U.S. dollar, multinational corporations
expanded their operations into overseas markets, while industrialization
progressed in the Asian region.

1986 - 1990 (Period of Inwardness)

The United States suffered from twin deficits (budget and trade) and trade
frictions with East Asian countries evolved. With the East Asian Economic
Community (EAEC) initiative and the Tienamen Square incident in the
People's Republic of China as a momentum in 1989, the relations of East
Asian countries with Japan, the United States and other advanced nations
became chilly.

1991 - 1995 (Period of Outwardness)

A growing number of Asian enterprises with Japanese capital or owned by
overseas Chinese moved to build a network of production bases in the Asian
region. China and Vietnam took part in these networks.

1996 to Present (Period of Inwardness)

Asian countries have started to follow policies apparently contrary to the
international rules (WTO), as is evidenced by Indonesia's national vehicle
issue.

2. Factors Contributing to Globalization of Market Economies

The globalization of market economies may conceivably require the

following factors to exist. People, good, foreign exchange, and information.
Globalization leads to transactions in financial products similarly to
petroleum. When it comes to people and things, market supplies are limited.
Financial products, however, move instantly in large quantities anywhere in
the world. As long as credit can be created, financial products tend to
increase in geometric progression.

Globalization is important in that it allows the transfer of business

opportunities to overseas markets. It requires, however, a transnational
minimum standard to be established. Corporations should have a sense of
social ethics.

- Mr. Fouquin:

The principle of comparative advantage applies amid the progress of

globalization. Then how should new industries be developed? And what role
should a state have to play?

South Korea offers a typical case of an automobile industry being brought

up through a strong support from the government. In Europe, the
aerospace industries are receiving government support in France, Britain,
and Germany. Without national assistance, the European aerospace industry
could not hold a position as it does now. Thus the government has an
important role to play. Governmental involvement carries an important
meaning in the creation of a new technology.

On the other hand, government intervention has a negative consequence in

the case of portable phone and other electrical appliance manufacturers,
among others. Some industries would benefit more from leaving the forces
of market unobstructed.

- Dr. Posen:

Some industries need government support. To this end, they should have an
ability to observe a social norm. The monetary crisis that befell to Asia lately
was indeed putting a damper on the East Asian miracle. This was due to a
failure in macroeconomic intervention. The best policy should be to allow
the market mechanism to function freely.

Mexico, Thailand and Indonesia were confronted by the monetary crisis.

This crisis occurred because exchange levels were overestimated to induce
excessive investments in social overhead capital. Although funds continued
to be put in the financial market, it was impossible to operate the inflow of
capital. A state plays a major role in promoting the globalization process
through the management of a macroeconomy. People should be aware of a
resultant burden, however.

- Mr. Kojima:

As financial markets become globalized, hundreds of speculators like George

Sorroth are active throughout the world. The world is plunging into a
"speed" economy. There is a large difference between the speed at which
people and goods move and that of capital migration. Funds are increasingly
bigger and moving around the world in a flash of lightning. Compared with
the spot economy, the monetary economy is expanding to reach a scale 50
to 60 times as much as the total amount of the trade economy.

- Mr. Iijima:

The role of the government holds a significant position. The recent financial
crisis in Thailand was attributable primarily to the fact that the Thai
government had failed to administer both financial and economic policies
properly. Thailand should have sliced its fat much earlier.

Conclusion
- Mr. Tsukuda:

When we speak of the light and shade of globalization, little discussion has
been devoted to the light or positive side of this process. Yet the benefits of
globalization are certain to be felt in various fields. Nevertheless, we should
not forget a criticism on globalization presented by Carl Polanny, an
economic historian. He said that the market mechanism, spreading infinitely
through all areas since the end of the 19th century, brought about the
collapse of the gold standard system and political unrest, eventually leading
to the World War. With the progress of globalization, funds came to migrate
throughout the world, seeking places where they could feel comfortable.
Likewise, corporations came to move around, crossing the border to fetch
better profits. As a consequence, the governments of various countries are
in a serious dilemma; they are confronted by the fall of the basis of national
taxation on one hand and they have to cope with matters of people's
concern, such as unemployment and income differential, on the other.
Facing the fiscal problem, the government has a very important role to play
in the age of globalization.

The Importance of Globalization And Technologies to

Development
 Posted by Opot Beneah on December 18, 2008 at 4:10am
 View Opot Beneah's blog
By Ahmadu Baba Samaila of the Department of Mass Communication, University Of Maiduguri, Borno State Nigeria.

The reality of globalization technologies to development is very essential, globalization is a new historical reality and not simply one
that has been invented by geoliberal ideology designed to persuade nationals of a country about foreign induced market forces.
Looking into this explanation of the reality of globalization in Africa , it is clear that globalization stresses "Linkages" among nations
of the world. It is strives to relate countries of the globe through their economics and politics and to some extent through all human
endeavour, therefore, globalization has been said to happen when activities take place in a global and not national arena. This
involves social activities in different parts of the world.

Globalization is multidimensional and can be better understood starting with its economic dimension.
A glob al economy is an economy whose core activities work as a unit in real time on a planetary scale. Thus, capital markets are
interconnected world wide, so that savings and investments in all countries even if most of them are not globally invested, depend
for their performance on evolution and the behaviour of global financial markets.

It is of course a truism that Nigeria cannot begin to expect to be able to adapt to emerging technologies and globalization if it fails to
accord adequate priority to expanding its scientific and technological base through education and research. The Universities have a
traditional role to develope manpower in the country. Unfortunately, Nigerian Universities are at present so grossly under- funded
that they cannot make any impact on the development of science and technology. The Universities should in addition to their
traditional fortes, take on new roles in the drive for economic development and if possible in grouping new forms. In order to be able
to do this effectively, the Universities must be funded adequately by the government.

Today, the world has turned to a global village, the world is in the midst a major advance in historical transformation which is
multinational. The transformation is due to the coming of new technologies, economy and social activities which centres around the
twin phenomena of emerging technology.
Many developing countries such as India and Malaysia have embraced the emerging technologies and are experiencing the
development of economic and the growth of communication as a result of this. Also many developing countries have successfully
achieved integration into the global economy through the use of international websites. About one and a half billion people are now
integrated globally into the world wide information technology exposure.

Nigeria has also been integrated into the global village, though the use of Landline phones and mobile telephones.

This is why the world is now a global village and current issues appeare instantly.

The technology products that is considered a luxury in the developed countries can solve a lot of problems peculiar to developing
countries like Nigeria . Come to think of it, how can Nigeria fight corruption, heavy traffic on our roads, etc without adequate
communication.

Government should therefore implement policies which will allow the importation of high technology products which will encourage
the development of the economy. Nigeria needs to establish a reliable, cost efficient infrastructure necessary for economic
development. Another case in point is the phenomenal international communication (ICT) revolution which has taken place in India,
this has enabled the country to become a key player and indeed a world pace - setter in the development of computer software.

Entrepreneurs in India became aware of the tremendous competitive advantage which they have as a result of their low wage
structure, over their comterparts in the United States of America. Indians were able to achieve this remarkable feat because of a
deliberate policy of government to encourage their citizens to integrate with the emerging technologies, while taking advantage of
their cheap labour, Nigeria has the potential to become the India of the African continent. With its teeming population of unemployed
graduates, a vibrant labour force, all the ingredients are clearly available. In this regard non - governmental organizations (NGOS)
can also play a key part in ICT diffusion in Nigerian schools. They can be an exemplary role model for the sustainable introduction of
ICT across the educational system in Nigeria .Apart from active involvement with advocacy, NGOS can vigorously participate in ICT
education in the schools. The NGOS can work with industries, government, etc. This will enable them to retrieve unwanted
computers and distribute to the educational system. Internet services present bounteous promises allowing pieces of soft ware
written in different languages, or running on different operating systems, to talk to one another cheaply and easily. This creates
opportunities for easy information flow. But, how well has Nigeria utilized the opportunities offered by the internet?

Not very much, for instance, of all the universities in Nigeria only a very small number have websites providing information that meet
the needs of international trade and finance there is clearly still a lot to