ABSTRACT
This chapter suggests that relationships and social capital matter even in the global marketplace. It shows that the World Bank definition that globalization is everything related to international issues cultural, political and global economic integration with its increasing freedom and firms to initiate voluntary economic transactions with the residents of other countries. It reviews the technological changes that have facilitated global exchanges. Globalization needed not only new communication and travel technologies for its rapid increase, but also new global institutions that could be trusted to organize world markets and relationships. Sometimes, the impetus behind the organization of these worldwide formal institutions has been multinational corporations (MNCs). The hard hand of market capitalism and survival of the economically fittest destroys local attachment values and creates significant income inequality. Social capital and the production of socio-emotional goods (SEGs) and attachment-valued goods (AVGs) have softened the hard hand of impersonal markets.
