CONTEMPORARY WORLD NOTES ● Central purpose is capital
Globalization accumulation by competing firms,
● Process by which more people which go through cycles of growth
across large distances become and decline
connected in more different ways. World Polity Theory
● An interaction of people and ● State remains an important
primarily an economic process of component of world society, but
integration which has social and primarily attention goes to the global
cultural aspects as well cultural and organization
● Process by which capitalism ● All-encompassing world-polity and
expands across the globe as its associated with world culture,
powerful economic actors seek profit which supplies a set of cultural rules
in global markets and impose their or scripts that specify how
rules everywhere institutions around the world should
● Also known as Neoliberalism deal with common problem
Deterritorialization ● Key elements is a general, globally
● The process through which the legitimated model of how to form a
constraints of physical space lose state
their hold on social relations ● Carriers of global principles, these
Different Meanings of Globalization to organizations then help to build and
Different People elaborate world culture and world
● Korean Pentecostal Missionary - society further
new opportunity to spread the faith World Culture Theory
and convert lost souls abroad ● New and important, but less
● Dominican immigration in the U.S. - homogeneous than world polity
growing new roots while staying ● Globalization is a process of
deeply involved in the home village relativization
● Chinese apparel worker - chance to ● World society thus consists of a
escape rural poverty by cutting complex set of relationships among
threads off designer jeans multiple units in the global field
● American executive - managing a ● Globalization compresses the world
far-flung supply chain to get into a single entity, and people
products to stores necessarily become more and more
● Filipino global justice advocate - aware of their relationship to this
rules of global game that favor the global presence
rich North over the South poor ● Central importance to this process is
Theories of Globalization the problem of globality: how to
World System Theory make living together in one global
● A perspective that globalization is system meaningful or even
essentially the expansion of the possible?
capitalist system around the globe Emergence of Globalization
● Capitalist world-system originated in ● Globalization has been happening
the 16th century, when Europeans for a long time (16th century Europe
traders established enduring as the original source)
connections with Asia, Africa, and ● Europeans established worldwide
the America trade connections on their own
● The core of the system, the terms, brought their culture to
dominant classes were supported by different regions by settling vast
strong states as they exploited labor, areas, and defined the ways
resources, and trade opportunities, different people were to interact with
most notably in peripheral areas each other
● Late 19th century the period of presumably this means that more
intense globalization, when million people will have more in common
migrated, trade generally expanded Reasons why Globalization will not make
and new norms and organization the World Homogeneous
came to govern international ● General rules and models are
conduct interpreted in light of local
● In the 20th century, the movement of circumstances. Regions respond to
people, goods, and finance across similar economic constraints in
national borders was at least as free different ways; countries still have
and significant as it is today. In the great leeway in structuring their own
2nd half of 20th century was policies; the same television
significant period of globalization in program means different things to
its own right audiences; such as McDonald’s
● World War II gave globalization a adopts its menu and marketing to
new impetus. Obscured by Cold War local tastes
divisions, the transformation of world ● Growing similarity provokes
society - in terms of linkages, reactions. Advocates for many
institutions, culture, and cultures seek to protect their
consciousness was nevertheless heritage or assert their identity.
profound ● Cultural and political differences
Globalization and the Expanding Market have themselves become globally
● Expanding market valid. The notion that the people and
- Process of offering a product countries are entitled to their
or service to a wider section particularity of distinctiveness is itself
of an existing market or into part of global culture. The tension
a new demographic, between homogeneity and
psychographic, or heterogeneity is integral of
geographic market globalization
- An economic system Is Globalization harmful?
operating along capitalist ● Globalization may be harmful to the
lines now encomapsses most well-being of individuals, countries,
region of the world, and and cultures
economic motivates always ● If the market is the driving force - it is
have been important in bound to exacerbate (worsen)
creating global linkages, inequality by creating winners and
globalization takes place in losers
many spheres for many ● If we make world homogeneous -
reasons many cultures are in trouble
- Economy may be a driving ● Loss of local autonomy may mean
force in creating global that the more people will be
change in some periods, but vulnerable to economic swings,
it effects depend on what environmental degradation, and
happens outside of world epidemics
market Interdisciplinary Understanding of
Homogeneous World Globalization
● Certain activities or institutions ● Political Scientist - political activity
become global, they must displace increasingly takes place at the global
existing local variable activities and level. Under globalization, politics
institution can take place above the state
● If there are more linkages, global through political integration schemes
institutions, and global values, such as the European Union, the
ASEAN integration where the - Globalization means the
Philippines is involved through spread of free-market
intergovernmental organizations capitalism to virtually every
such as the IMF, the WB, and the country in the world
WTO. political activity can also ● Globalization is inevitable and
transcend national borders through irreversible
global movements and Non- - Market Globalism is almost
Governmental Organization, Civil intertwined with the deep
Society Organizations belief in the ability of markets
● Economist - integration through to use new technologies to
international trade of markets in solve social problems far
goods and services as reflected in better than any alternative
variety of possible measures (direct course
measures of barriers such as tariffs ● Nobody is in charge of globalization
and transport costs, trade volumes, - Liberal concept of the self-
and price related measures) regulating market
● Sociologist - an on-going process - The link between
that involves interconnected globalization-market and the
changes in the cultural and social adjacent idea of
spheres. leaderlessness is simple: if
● Historian - follow rather than lead the the undisturbed working of
way. Globalization is not new as a the market indeed preordain
phenomenon but the word itself took a certain course of history,
hold only recently which records then globalization does not
shows first use in English in 1930 reflect arbitrary agenda of a
and shows that usage soared particular social class or
suddenly in the 1990s. group
Market Globalization - Globalists are not in charge
● An idea that reflect the concepts of in the senf of imposing their
globalization own political agenda on
● Seeks to endow globalization with people
free market norms and neoliberal ● Globalization benefits everybody
meanings - The adjacent idea of benefits
Five Core Claims of Market Globalism for everyone is usually
● Globalization is about the unpacked in material terms
liberalization and global integration such as economic growth
of markets and prosperity
- Anchored in the neo-liberal ● Globalization furthers the spread of
ideal of the self-regulating democracy in the world
market as the normative - Links globalization and
basis for a future global order market to adjacent concept
- Vital functions of free market of democracy, which also
- its rationality and efficiency, plays a significant role in
as well as its alleged ability liberalism, conservatism, and
to bring about greater social socialism
integration and material - Globalists tend to treat
progress - can only be freedom, free trade, and
realized in a democratic democracy as synonymous
society that values and Laissez Faire
protects individual freedom
● The belief that economies and ● Internationalization is about the
businesses function best when there extension of economic activities of
is no interference by the government nation state across borders,
● It comes from the French, meaning ● while Economic Globalization is
to leave alone or allow to do functional integration between
● One of the guiding principles of internationally dispersed activity
capitalism and a free market - Rather a qualitative
economy transformation that just a
Neoliberalism quantitative change
● Theory of political economic - Economic term globalization
practices that proposes that human is nothing but a process
well-being can best be advance by making the world economy
liberating individual entrepreneurial an organic system by
freedoms and skills within an extending transnational
institutional framework characterized economic process and
by a string private property rights, economic relations to more
free markets, and free trade and more countries and
Characteristics of Neoliberalism deepening the economic
● Government must limit subsidies interdependence among
● Make a reform to tax laws in order to them
expand tax base Interconnected Dimensions of Economic
● Reduce deficit spending Globalization
● Limit protectionism 1. The globalization of trade of goods
● Open markets and services
● Removal of fixed exchange rates 2. The globalization of financial and
● Back deregulation capital markets
● privatization 3. The globalization of technology and
Privatization communications
● Process of transferring an enterprise 4. The globalization of production
or industry from the public sector to Economic Globalization Phenomenon
the private sector ● Skill Road
● Some of the government owned and - best known example of
controlled corporations were: archaic globalization;
Philippine Airlines (PAL), Philippine connected Asia, Africa, and
Long Distance Corporation (PLDT), Europe.
Manila Electric Company (Meralco), - Adopting Fernand Braudel’s
Manila Waterworks and Sewerage innovative concept of long
System (MWSS) now Maynilad duration
Water Services, and Manila Water - World system analyst identify
Company the origin of modernity and
The Global Economy globalization with the birth of
Economic Globalization 16th century long-distance
● Increasing integration of economies trade
around the world particularly through The International Monetary System
the movement of goods, services, ● Most central area in international
and capital across borders economy; important transactions in
● Movement of people and knowledge the international economy all depend
across international borders on the availability of money and
Economic Globalization vs credit
Internationalization ● Ensure the stability of the
international monetary system
● System of exchange rates and ratio is sometimes used as a
international payments that enables tool in monetary policy,
countries to transact with each other influencing the country’s
● System that forms rules and borrowing and interest rates
standards for facilitating international by changing the amount of
trade among the nations in the world funds available for banks to
Functions of International Monetary System make loans with
1. Current account surplus - 6. The total of a country’s
indicates the value of a account, capital account,
country’s net foreign assets statistical discrepancy and
grew over the period in change of reserves = zero -
question, and a current balance of payments
account deficit indicates that Central Bank
it shrank; increases a ● Reserve bank, or monetary authority
nation’s net assets by the is an institution that manages a
amount of the surplus state’s currency, money supply, and
2. Capital accounts - part of a interest rates
country’s balance of ● Each country has a central bank
payments. Measures Four Monetary Regime
financial transactions that 1. Classical gold standard (1870 -
don’t currently affect a 1914)
country’s income, production, 2. Gold exchange standard
or savings. Part of the 3. Bretton Woods system (19944 -
balance of payments which 1973)
records net changes in a 4. Non-system of floating and fixed
country’s financial assets and exchange rate - 1973 to present
liabilities Effects of Economic Globalization on
3. Balance of payments - Developing Countries
difference in total value ● Increased standard of living
between payments into and ● Access to new markets
out of a country over a ● Decreased employment
period. A balance of
payments deficit means the Market Integration
country imports more goods, ● International Financial Institution
services and capital than it (IFI)
exports. It must borrow from ● World Bank (WB)
other countries to pay for its
● International Monetary Fund (IMF)
imports.
4. Statistical discrepancy - ● European Investment Bank (EIB)
equal to gross domestic ● Islamic Development Bank (IDB)
product less gross domestic ● Asian Development Bank (ADB)
income. It is the difference ● European Bank for Reconstruction
between demand and supply and Development (EBRD)
in national accounts. ● Development Bank of Latin America
5. Change in reserves
(CAF)
requirements - reserve
requirement is the proportion ● Inter-American Development Bank
of customers' deposits a Group (IADB)
bank is required by the fed to ● African Development Bank (AfDB)
hold in reserve without ● Asian Infrastructure Investment
loaning out required reserve Bank (AIIB)
EU : The Benefits of Euro community, integrated with global
● Benefits of single currency economy
● EU : A Union of Human Rights and ● Regional Economic Integration
Equality ● Offering opportunities in the form of
● One of the EU’s main goal is to huge market of US $2.6 trillion; over
promote human rights both internally 62 million people; 3rd largest
and around the world economy in Asia; 7th largest
Core Values of EU economy in the world
● Human dignity Five Interrelated and Mutually Reinforcing
● Freedom characteristics
● Democracy ● Highly integrated and cohesive
● Equality economy
● The rule of law ● Competitive, innovative, and
● Respect for human rights dynamic ASEAN
Asian Integration ● Enhanced connectivity and sectoral
● Established on August 8, 1967 in cooperation
Bangkok, Thailand ● Resilient, inclusive, people-oriented,
● Founding members: Indonesia, and people-connected ASEAN
Malaysia, Philippines, Singapore, ● Global ASEAN
Thailand, and additional members ASEAN Free Trade Area (AFTA)
● Brunei joined on January 7, 1984; ● Established the following in lowering
Vietnam on July 28, 1985; Lao PDR of inter-regional tariffs:
and Myanmar on July 23, 1997 and ● Common Effective Preferential Tariff
Cambodia on April 30, 1999 (CEPT) -- 0 - 5% tariff range for 99%
ASEAN: Asean Economic Community of the products listed (Brunei,
(AEC) 2025 Darussalam, Indonesia, Malaysia,
● Established in 2015, Kuala Lumpur, Philippines, Singapore, and
Malaysia adopting AEC Blueprint Thailand)
(ASEAN 2025) provides broad ● 80% of products listed (Cambodia,
directions through strategic Laos, Myanmar, and Vietnam)
measures for the AEC from 2016- ● Average tariff for ASEAN-6 is now
2025 1.51% from 12.76%
● ASEAN Community Vision 2025 Four Pillars
● ASEAN Political Security Community ● Single Market and Production Base -
2025 the region as a whole must become
● ASEAN Socio-Cultural Community a single market and production base
● Aimed towards achieving the vision to produce and commercialize goods
of having an AEC by 2025 that is and services anywhere in ASEAN
highly integrated and cohesive; ● Competitive Economic Region - the
competitive, innovative, and region must emphasize on the
dynamic; with enhanced connectivity competitiveness of its production
and sectoral cooperation; more and capacity for export, as well as
resilient, inclusive, and people- the free competition inside its
oriented, people-centered frontiers
● Equitable Economic Development -
to receive benefits of the AEC, the
people and business of ASEAN
must be engaged into the integration
process of AEC
● ASEAN’s integration into a
globalized economy - ASEAN must
not be isolated but an integral part of
the global economy
Five Core Principles ASEAN Single Market
and Production Base:
● Free flow of goods
● Free flow of services
● Free flow of investment
● Free flow of capital
● Free flow of skilled labor
- An international financial institution
Communication Infrastructure that provides loans and grants to the
- Spread of ideas, cultures, and governments of low and middle-income
information around the globe which is countries for the purpose of pursuing
considered as another contributing capital projects.
factor to globalization through which Security Council
there have been transnationals. - The main body responsible for the
Global Cultural Flow peace and security of the 193 member
- Multiple interconnected individuals states.
and organizations around the globe in International Court of Justice
terms of activities and affairs. - The principal judicial organ that
Protectionism settles legal disputes between member
- It is a restraining act that trades states.
between states through methods such Secretariat
as tariffs on imported goods. - An international staff that carries
Frictional Employment out the day work of the United Nations.
- It is called the situation when General Assembly
workers leave their jobs to find a better - The policy making organ of the
one. United Nations made of representatives
Liberalization from each of the 193 member states.
- Free-market Trusteeship Council
- Reduced government controls and - The council that provides
restrictions international supervision for 11 trust
External Trade territories.
- Contributes to globalization State Brexit
- A system of centralized rule that - It is the name given to the United
succeeded in subordinating all other Kingdom’s departure from the European
institutions and groups, temporal, and union.
spiritual. George W. Bush
Balance of payments - He was the u.s president during the
- The difference in total value September 11 terrorist attacks.
between payments into and out of a Joe Biden
country over a period. - He is the current u.s president who
External Sovereignty won against Donald Trump.
- A relationship of states to other Antonio Guterres
states and international actors as it - The current secretary general of the
establishes a state's capacity to act as United Nations.
an independent and autonomous entity Roosevelt, Chruchill, Stalin
in world affairs. - Founders of the United Nations.
Secondary Sector - At the Yalta Conference, a meeting
- An economic system that of the big three in a crimean resort city
transforms raw materials into in February 1945, laid the basis for
manufactured economic goods. charter provisions delimiting the
United Nations (UN) authority of the security council.
- An intergovernmental organization Diversification
aiming to maintain international peace - It can sometimes be a downfall for
and security, develop friendly relations certain companies because they can
among nations, achieve international spread themselves across too many
cooperation, and be a center for areas.
harmonizing the actions of nations. Horizontal Integration
World Bank (WB)
- Competitive strategy that can
create economies of scale, increase
market power over distributors and
suppliers, increase product
differentiation and help businesses
expand their market or enter new
markets.
Backward Vertical Integration
- It involves a company moving back
or upstream along with the value chain
and entering the business of a supplier.
Forward Vertical Integration
- It involves a company moving
further down the value chain to enter the
business of a purchaser.
Treaty
- It is a binding agreement between
the European Union member countries.
Negative Integration
- Type of integration that reduces
non-tariffs and tariff barriers to trade can
be the main tool for integrating markets.
Napoleon Bonaparte
- A French leader who implemented
the Napoleonic code, with his principles
of liberty, equality, fraternity against the
power of kings, nobility, and religion in
Europe.
Global Character
- An effect of the growing number of
complex political issues which extends
potentially to all parts of the world.
