Globalization , Paper for the Master-project

Globalization Paper for the Master-project Topic: The impact of globalization on the service sector worldwide and on Italy as a case study.

Dortmund 2017, Gianluca Pulino gianluca.pulino@tu-dortmund.de

Globalization 

Globalization

Abstract 

Paper for the Master-project

In this paper, we analyze globalization and all its factors (economic factors), we study through tables as the economy changes from country to country.

Introduction.

The main argument of our analysis is globalization, we want to understand:

When it develops, how it affects the economy of the countries and when the problems posed by this commercial and economic globalization arise, especially in the services sector.

With the help of an introduction to the subject with definitions of the most important and interesting aspects.

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Our job is to draw conclusions and if possible solutions.

We also receive information from the World Bank and from the modern economy sites and from the WTO and OECD databases.

Globalization 

FIRST PARAGRAPH

It includes..

1. What is the globalization?

Globalization is a process of economic, social, cultural, political and technological interdependencies whose positive and negative effects have a global significance, tending to standardize trade, cultures, customs, and thought. Among the positive aspects of globalization include the speed of communications and information circulation, the economic growth opportunity for countries that have long remained on the margins of world economic development, the shrinking space-time gap and the lower cost of l End user thanks to the increase in global scale competition. The negative aspects are the environmental degradation, the risk of increasing social inequalities, the loss of local identities, the reduction of national sovereignty and the autonomy of local economies, the decline in privacy. Politicians, philosophers, economists and historians of various nationalities have expressed their views on globalism, which can be considered as an economic, social and political process like globalization as well as globalization and globalization, which are other parallel phenomena and consequent to globalization.

SECOND PRAGRAPH 3

2.What did itand develop -Information and when? communications  (Facilitate Globalization was communication) born with the extraordinary development of -public services transport, (Provide core communications and performance for the telematics that have made the planet more community) and more interdependent. With this term, we do not -transport (Movement want to point to the of goods and people) enormous growth of transport, but it indicates the planetary -tourism that all(Trade dimension aspects of reality have and catering activities) assumed in the sense that there is no longer any problem whose -business (Distribution resolution does not and sale of products) imply the intervention of each state. States are losing their influence on their economy, in fact, financial capitals no longer have national boundaries.

Globalization 

1.

What is the service sector?

The tertiary sector or service sector is the third of three economic sectors of the three-sector theory.

The others are primary sector and secondary sector. The service sector consists of the parts of the economy, i.e. activities where people offer their knowledge and time to improve productivity, performance, potential, and sustainability, which is termed as affective labor. The basic characteristic of this sector is the production of services instead of end products. Services (also known as "intangible goods") include atten-tion, advice, access, experience, and discussion. The production of information has long been regarded as a service, but some economists now at-tribute it to a fourth sector, the quaternary sector. The tertiary sector of industry involves the provision of services to other businesses as well as final consumers. Services may involve the transport, distribution and sale of goods from producer to a consumer, as may happen in wholesaling and re-tailing, or may involve the provision of a service, such as in pest control or entertainment. The goods may be transformed in the process of providing the service, as happens in the restaurant industry. However, the focus is on people interacting with people and serving the customer rather than trans-forming physical goods.

2.

If they merge together what would be created?

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Example.

With ‘amazon’ today we can, through the use of the Internet, order merchandise from all over the world.

Globalization 

The creation of a single global market, without more protectionist barriers, free from the loopholes of the traditional forms of social protection of European post-war economies. A market that, as a whole (outside the control of individual states) suffers from a vacuum of any kind of regulation, this vacuum is burdened by huge supranational institutions. Globalization means greater concentration of capital or wealth in the hands of few but also unemployment. This is produced by the competition of low-wage countries, which leads workers in imperialist countries to compete with those of poor countries. For international trade, globalization is presented as the entry of an ever-increasing number of countries in the rank of fullfledged competitors; Countries that are liable to give a twist to many imperialist industries. Since the whole world is a single market, it exchanges commodities (financial goods, real assets and services) according to the demand-supply mechanism and price fixation occurs where such variables meet. It is backed by members of the social class that includes multinationals, rich mediators and investors.

Globalization with its multinational companies be an internationalization of capitalism, which involves a relocation of work; For this reason, it is required and transported from place to place on the planet through fast communications (Internet). But, indeed, globalization is the children in Burma who sew balls like NE fees who works 250 hours a month for 21.95 €; Is the 29-year-old Mao Ghee, who with 154.94 € per month (earned at a NIKE supplier in China) keeps parents and siblings. Many others are likely to be overwhelmed by the giant waves of economic competition.

New associations are emerging for globalization,

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The functions of the WTO can be summarized as follows:

- administer and apply the various trade agreements that comprise it; - act as "forum" for multilateral trade negotiations; - work to resolve trade disputes; - control national trade policies; - cooperate with other international institutions involved.

Globalization 

They are born for various purposes and we are now going to analyze.

The OECD's institutional structure includes:

WTO (WORLD TRADE ORGANIZATION) • a council composed of

What is it

one representative for

How it was born

each country;

How to report to GATT

• an Executive Committee composed of

The World Trade Organization (WTO) is the legal and institutional base on which the world trading system is based. The WTO defines the main contractual rules to which national governments refer and represents the common platform on which trade relations between different countries are embedded and developed. The WTO has inherited the General Agreement on Tariffs and Trade (GATT), which was concluded after World War II and in force since January 1, 1948. The original agreement remained in Until the end of 1995, in order to guarantee a gradual transition to the new configuration for individual countries and the entire system. GATT still lives as "GATT 1994" (ie the revised version of the initial agreement) and forms an integral part of the WTO, which sets out the key provisions for international trade in goods.

representatives of

The birth of the WTO was decided by the same members of the GATT during the negotiations called the "Uruguay Round". From the last GATT negotiation table concluded in April 1994, the desire to evolve the system towards something more articulate and complex emerged. It was not a simple extension of the GATT, but a genuine substitution. The WTO has broader goals in terms of both business and trade policies, including the interchange of services and the "idea-trading", dealing with aspects of intellectual property as well, while the GATT was inherent only in Product trade. Unlike the GATT, which essentially constituted a set of rules, the WTO is a permanent institution with its own secretariat.

The following work shows

While the GATT was applied on "provisional grounds" (though, after 40 years, governments had chosen to 6

permanent delegations of 14 members elected annually; • committees and specialized working groups; • the permanent delegations of the member countries in the form of diplomatic missions directed by the ambassadors; • the international secretariat, available to committees and other bodies. the current income classification and historical income classification.

Globalization 

consider it as a permanent agreement), the WTO clearly assumed permanent commitments from birth. While multilateral agreements (eg between several countries) existed in the GATT context, the WTO pursues the path of multilateral agreements that commit, that is, all members. To avoid possible blockages or impediments, the WTO Dispute Settlement System is faster and more automatic than the GATT mechanism.

The key principles on which the world trading system is based can be Highlighted in the following points: - Trade without discrimination Article 1 of the GATT Agreement provides that Member States must accord to products from other countries no less favorable treatment than that accorded to any other country. In other words, no country can grant special trade benefits to another, or even less discriminatory measures: all countries must be treated in the same way.

- Easy access to stable, predictable and growing conditions The WTO seeks to ensure stable and predictable trading conditions: it accepts the existence of customs tariffs but restricts and regulates employment by binding tariffs; Once negotiated and fixed a certain tariff, this becomes a real commitment to the country that applies it to the stability of the system. The system also targets the downsizing of tariffs and facilitating access to foreign markets over time.

- "fair" competition GATT and now the WTO are working to ensure a market where competition is not distorted and trade relations are inspired by fairness criteria.

- Promotion of economic development and reforms More than three-quarters of the WTO countries are developing countries or in transition to the market economy. The WTO's strategy is to grow and advance these countries, leading them to full compliance with international commitments with gradual and flexible. This is to provide for dampers and flexibility margins that gradually accompany these countries towards full responsibility. However, the Generalized System of Preferences is still in force, ie the possibility that a developed country will grant easier access to the market for a developing country.

OECD: 7

Globalization  ORGANIZATION FOR COOPERATION AND ECONOMIC DEVELOPMENT IS A INTERNATIONAL ORGANIZATION OF ECONOMIC STUDIES FOR MEMBER STATES, DEVELOPED COUNTRIES WITH A DEMOCRATIC GOVERNMENT SYSTEM AND A MARKET ECONOMY. * Capitalism (market economy): A set of theories aimed at justifying the private ownership of capital, explaining how these markets operate, and directing the application or elimination of government property and market regulation; The economic system, and by extension the whole society, whose operation is based on the ability to accumulate and concentrate wealth in a transformable (money) and reinvestable form, so that concentration is exploited as a productive medium; Economic and production regime that in advanced societies is developing in periods of growth, due to monopoly, speculation and power practices.

ITALY

Italy became a member of the International Bank for Reconstruction and Development — the World Bank — in 1947.

Italy was among the first countries to get a loan to help rebuild its economy after the Second World War. Today, Italy is a member of the five institutions that form

ORIGIN The economic cooperation between the members was essentially developed through the liberalization of their exchanges, with the aim of liberalizing industrial exchanges and capital movements. In 1950, in particular, the OECE member countries set up the European Payments Union (UEP), which introduced a system of multilateral payments, allowing for compensation of claims in a European currency of one Member State to another. This system became a full coin convertibility regime in 1959, with a change in the EUP in the European Monetary Agreement. On December 14, 1960, in Paris, the signing of a new convention came from the Organization for Economic Co-operation and Development (OECD), which came into effect on 30 September 1961 and replaces OECE.

the World Bank Group.

___________________EXCELL TABLES__________________

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Globalization 

How does the World Bank classify countries?

Geographic regions Associations are mainly based on the regions used for administrative purposes by the World Bank.

There are two main variants: one that includes all economies and one that excludes high-income economies (see the income groups below for the definition of lower, lower, middle, high and high income categories).

Focus on tourism - Tourism generates today 9% of the world GDP (about $ 6 trillion) and 120 million of jobs, plus 125 million in related industries (World Economic Forum data).

Income groups Economies are subdivided into four income groups: low, low-medium, high and high. Income is measured using the US dollar per capita gross national income (RNL), converted by the local currency using the World Bank's Atlas method.

RNL estimates are obtained from economists from the World Bank's banks; And the size of the population is estimated by World Bank demographers from a variety of sources, including the biennial prospects of the United Nations world population.

- Despite the fragility of the global economy, it remains a health and growing sector: the latest World Tourism Organization (UNWTO) data have confirmed that tourist arrivals in 2012 were + 4% globally and for 2013 They expect the growth trend to continue at 3-4%.

Top 10 destinazioni del turismo internazionale Arrivi internazionali (milioni) Introiti (miliardi di US$) var. % moneta locale 9

Globalization 

graduatoria 2015 2014 2015 var. %

graduatoria 2015 2014 2015

1 Francia

83,7 84,5 0,9

1 USA

177,2 178,3 0,6

2 USA

75,0 n.d. n.d. 2 Cina

105,4 114,1 8,3

3 Spagna

64,9 68,2 5,0

3 Spagna

65,1 56,5 4,0

4 Cina

55,6 56,9 2,3

4 Francia

57,4 45,9 -5,4

5 Italia

48,6 50,7 4,4

5 Thailandia

38,4 44,6 22,0

6 Turchia 39,8 n.d. n.d. 6 Regno Unito

46,6 42,4 -2,0

7 Germania

50,5 39,4 3,8

8 Regno Unito

33,0 35,0 6,0

7 Italia

32,6 n.d. n.d. 8 Germania

9 Messico 29,3 32,1 9,5

9 Hong Kong (Cina)

10 Russia 29,8 31,3 5,0

43,3 36,9 1,9 38,4 35,9 -6,6

10 Macao (Cina) 42,6 31,3 -26,5

Fonti: UNWTO World Tourism Barometer, vol.14 - July 2016

THE TOURIST SECTOR IN ITALY 9.7% of GDP • Strengths: artistic and cultural offerings (Italy is the world leader of UNESCO sites), tourist infrastructure • Weaknesses: staff training, environmental sustainability, taxation (eg residence tax), welcome reception to foreign visitors • Systemic criticisms: regulatory framework, governance, bid level, degree of security

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Globalization 

By its nature, tourism has a systemic impact, as it tends to transversely involve the economy of the territory in which it is directed In particular, it implies an increase in the level of anthropization of places where resources of particular aesthetic, natural or cultural value are found, which, for this very reason, become attractions and transform the territory into a holiday destination.

Holiday in Italy varies according to the season: In winter you can visit northern Italy for its high mountain scenery such as the Alps, in the summer you can travel to the south where you can enjoy the naturalistic environments and the sea.

• The concentration of visitors in time and space causes a significant risk of damage to the most valuable resources, exposing the tourist territories to the dilemma between choosing the full exploitation of resources and their consequent consumption (or deterioration) in a narrow time span, And the choice to protect them through forms of protection and conservation, limiting their economic use

‘ For this reason the tourist phenomenon must be suitably managed to generate value in a durable way: it is not a panacea that automatically leads to development, it is not necessarily capable of producing appreciable results in the medium to long term but can, in fact, impoverish Affecting the quality of the environment, modifying social and cultural equilibrium, generating costs for non-recoverable tourism structures and infrastructures through revenues,  11

Globalization 

determining consumption needs (energy, water, transport, space) disproportionate to The typical and acceptable ones for the resort ‘ (McKercher 1993, Hunter and Green 1995).

Arrivi internazionali per macro-aree nel 2015

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Globalization 

Europa, 51,3% Asia e Pacifico, 23,5% America, 16,1% Africa, 4,5% Medio Oriente, 4,5%

Fonte: UNWTO, World Tourism Barometer – July 2016 Le previsioni dell’OMT per il 2016 sono positive: la crescita di arrivi internazionali dovrebbe attestarsi a livello mondiale a +3,5/4,5%.

WHO predictions for 2016 are positive: international arrivals growth should reach + 3.5 / 4.5% worldwide.

In this study table we can see the percentages of the origin of people

CONCLUSION

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Globalization 

• Before globalization, the well-known needs of the tourism industry were territorial promotion, overcoming the seasonality of the inflows, and an increase in the range of products offered to customers.

• Globalization has introduced "changes in geopolitical, technological, economic, social, cultural, biological and ecological openness".

• This has led to the development of cross-border markets and the internationalization of enterprises, as well as the creation of a complex and complex social model, since it is progressively made up of linguistic, religious and value-based models.

In the tourism sector, globalization has seen the emergence of international companies (especially in low-cost air transport), has led to an increase in competition levels and weakened supply systems less responsive to change • It also strengthened the role of technologies, especially in: • CRM systems, to study and advise visitors best, record their contributions and keep their profiles • Web 2.0 tools to implement more and more " User centric "• Mobile technologies to reach real-time people wherever they are • e-marketing tools to conduct information campaigns, surveys and online surveys The Internet has acted in particular in terms of: • Findability (increased opportunity to be searched and found) • Opportunity to get noticed (increased opportunity to be selected in the age of comparability) • Memorability (increased the opportunity to be remembered) Remodeling the competitive dynamics of the industry.

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Globalization 

Arrivals by type of resorts of tourist interest Arrivi per tipo di località di interesse turistico Incidenza % nel 2015 Città di interesse storico e artistico, 52,1% (storical city) Località montane, 10,2% (mountain locality) Località lacuali, 10,3% (lake locality) Località marine, 19,1% (marittim locality) Località termali, 3,5% (termal) Località collinari e di interesse vario, 4,7%

This table shows the most popular places in Italy. Such as marinas, mountains, culture etc. etc.

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Globalization 

Presenze per tipo di località di interesse turistico Incidenza % nel 2015 Città di interesse storico e artistico, 38,3% Località montane, 13,0% Località lacuali, 13,8% Località marine, 26% Località termali, 3,4% Località collinari e di interesse vario, 5,5%

About 30% more bookings from Germany, strong increases also from France and Holland: the Sardinian tourist vintage is already marking the best numbers in 2016.

And the increased interest of Northern European vacationers, who do not focus their travels only in July and August, could help extend the season.  16

Globalization 

Flussi stranieri nelle regioni italiane (in ordine decrescente di presenze 2015) 2014 Regione Arrivi

2015

Variazioni %

Presenze

Presenze

Arrivi

11.213.267

42.213.738

5,8

Trentino Alto Adige 5.479.355 203.445 521.149

26.242.808

5.682.800v

26.763.957

3,7

Toscana 6.821.947 793.358

7.062.693

23.947.505

3,5

3,4

240.746

11,4

10,4

-4,9

295.514 -

Veneto 10.597.803 907.734

Arrivi

Variazioni assolute

41.306.004

23.154.147

Lombardia 7.297.664 832.231 2.055.969 Lazio 6.758.348 1.019.945

19.677.303

20.675.157

8.129.895

7.053.862

Presenze

21.733.272

19.655.212

4,4

Arrivi

Presenze

2,2

615.464 2,0

Emilia-Romagna 2.524.689 -210.781

9.822.981

2.619.025

9.612.200

3,7

-2,1

Campania 1.949.634 368.901 495.712

8.176.727

2.318.535

8.672.439

18,9

6,1

-2,0

-34.959 -

Sicilia 2.042.506 139.497

7.107.368

2.007.547

6.967.871

-1,7

Piemonte 1.570.864 313.002 842.898

5.151.959

1.883.866

5.994.857

19,9

16,4

Sardegna 1.095.489 113.235 522.237

5.316.299

1.208.724

5.838.536

10,3

9,8

7,8

158.719

Liguria 1.808.941 415.635

5.321.684

1.967.660

5.737.319

8,8

Friuli-Venezia Giulia 1.049.572 54.546 172.199

4.132.771

1.104.118

4.304.970

Puglia

663.713 2.547.305

730.122 2.675.795

10,0

5,0

66.409

128.490

Marche 399.459 2.065.448

405.249 2.292.704

1,4

11,0

5.790

227.256

Umbria 687.215 2.136.726

709.031 2.177.649

3,2

1,9

21.816

40.923

Calabria 241.268 1.618.710

247.205 1.646.288

2,5

1,7

5.937

27.578

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5,2

94.336

4,2

Globalization  Valle d'Aosta

377.245 1.211.654

409.652 1.283.293

Abruzzo174.171 870.288 171.265 814.265 -1,7

-6,4

8,6

-2.906

-56.023

Basilicata

81.576

215.011 95.797

228.961 17,4

6,5

14.221

Molise 14.041

42.157

13.369

-4,8

-672

4.942

TOTALE

47.099

51.635.500 186.792.507 3.398.182 5.815.423

11,7

55.033.682

5,9

32.407

71.639

6,6

3,1

13.950

192.607.930

Fonte: Istat

Tourist internationalization level of regions by number of attendance - 2015

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Globalization 

italiani

stranieri

Fonte: elab. ENIT su dati Istat

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Globalization 

References ORGANISMI INTERNAZIONALI (DATI SUL TURISMO INTERNAZIONALE, SULL'ECONOMIA, SUI TRASPORTI) WORLD TOURISM ORGANIZATION http://www.unwto.org EUROPEAN TRAVEL COMMISSION http://www.etc-corporate.org WORLD TRAVEL & TOURISM COUNCIL http://www.wttc.org OCSE http://www.oecd.org (sezione: Enterprise, industry and services) FONDO MONETARIO INTERNAZIONALE http://www.imf.org WORLD ECONOMIC FORUM http://www.weforum.org COMMISSIONE EUROPEA http://ec.europa.eu/enterprise/sectors/tourism/index_en.htm INTERNATIONAL AIR TRANSPORT ASSOCIATION http://www.iata.org DATI STATISTICI EUROSTAT http://ec.europa.eu/eurostat/web/tourism/statistics-illustrated ISTAT http://www.istat.it/it/archivio/turismo; dati.istat.it (sezione Servizi/Turismo) BANCA D'ITALIA http://www.bancaditalia.it/statistiche/tematiche/rapporti-estero/turismointernazionale/index.html

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Globalization 

Analyzing what is the most important sector within the service sector we can deduce that the tourist is very wide

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Globalization 

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