This project has been funded with support from the European Commission (226388-cp-1-2005-1-de-comenius-c21). This publication reflects the views only of the authors

1.1. Understanding Globalization: Behind the Curtain

Today labor and capital flows among countries and corporations with an unprecedented pace and amount. Therefore capital flows, production and service activities, commercial and technological developments attain international character. Billions of dollars can be transferred with only one “click”. In this framework the dimensions and the domain of the competition that enterprises face change inevitably, enterprises become international, production and service activities, and international horizontal integrations increase. Multi-National Companies (MNC) and foreign direct investment (FDI) become more effective on individual economies. Now national frontiers disappear or at least lose its former rigidity and world head for an economic, political and cultural integrity.
There are historical origins of this process of chance and transformation and this process can be traced back to the first eras of mankind. On the other hand a common belief, that globalization has accelerated after some specific developments, prevails and the globalization process can be divided into stages according to these developments. As the result of these developments and stages trade increases in the world and this increase bears economic, social, political and cultural effects. While trade furnishes the spanning of goods and services all over the world, it also generates the spanning of cultures, their interactions and competitions. At this point worldwide branding, pop stars, similar TV programs are the examples to be thought of. While economic activities affect cultures, sometimes cultures may shape economic activities. Furthermore MNCs and FDI flows arise when trade is insufficient or inefficient. This alternation first affects the global economy and then the whole human values and causes different structures to arise as a result of new formations.

1.1.1. Historical Background

One of the most fashionable concepts of today, globalization, is in fact not a product of 20^th century. Trade is international since the flint stone trade of Neanderthal human and globalization is a subject of history since first ages. It existed when the Silk Road started in China and reached to the frontier of the Persian Empire and enlarged towards the Roman Empire and during the Roman Empire, the Persian Empire and the Dynasty of China. Another example is the Golden Age of Islam: Early global economy created by Muslim merchants and explorers that ended up with the globalization of crops, commerce, knowledge and technology in the Old World-wide and the times that more integration was achieved along the Silk Road during the Mongol Empire. With the accession of Portuguese and Spanish Empires to every corner of the world in the 16^th and 17^th centuries after they had reached India, global integration continued through the enlargement of European trade. During their dynasties Roman and Ottoman Empires developed “world systems” consistent with their hegemony in the “discovered” world and Pax Romana and Pax Ottoman constituted examples of globalization that “effects and compasses the whole world” in 19^th century with the Pax Britannica known as the world order developed by Britain. The development in the automation network with the Industrial Revolution accelerated the globalization process. Two significant world wars and then the competition between the United States of America (USA) and the Union of Soviet Socialist Republics (USSR) carried humanity into a very dangerous point. Consequently, the reality that instead of “power” “norm” should operate in order to alleviate the tension between these two blocs loomed large.
The idea of the Conference on Security and Co-Operation in Europe (CSCE) was the originating point of the appearance of this norm. With the Final Act adopted at the Helsinki Conference which is the first step of the conference and hence second wave of globalization a general agreement on the subjects of security, economy, trade, energy and humanity between the two blocs was achieved. Thereafter, Summits of Belgrade 1977-78, Madrid 1980-83, Vienna 1986-89 and Paris 1990 were held. New rings were added with the Summits of Copenhagen 1990, Moscow Meeting on Human Dimension 1991, Prague-Vienna Confidence Building Measures 1992 and Helsinki. Finally significant contributions were done to the formation of a smoother world in 200s in the “democracy and human rights” framework with the come up of “full respect for human rights” as a consequence of Lisbon 1996 and Istanbul 1999 Summits of the Organization for Security and Co-Operation in Europe (OSCE).
In the USSR the Perestroika reforms were accepted by Gorbachev in 1985 which means the restructuring of the planned economy in order to modify it. Partial liberalization of the world of business was aimed. In this process Glasnost aimed to decrease the level of corruption in the public sector through openness and transparency.
This background today resting in the dusty pages of history books in fact constitutes the infrastructure of immense contemporary changes.