Prepared By: John Joshua Gepana
Prepared By: John Joshua Gepana
Gepana
Objectives:
1. Write a personal definition of globalization
2. Differentiate the competing conceptions of globalization
3. Identify the underlying philosophies of the varying definitions of
globalization
4. Explain the role of international financial institutions in the creation of
a global economy
5. Explain the effects of globalization on governments
6. Identify the institutions that govern international relations
7. Identify the roles and functions of the United Nations
Activity 1.1
In your own understanding, what can you say about the pictures above?
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Module 1
Introduction
So, what is globalization? This question is probably an easy one to
answer. However, many scholars gave and try to formulate its own
definitions. This resulted in different, sometimes contradicting views about
the concept. Aside From this, Globalization encompasses a multitude of
processes that involves the economy, political system and culture. Social
structures, therefore, are directly affected by globalization.
In other words, Globalization has not only one or two definition/s, but
a plethora contradicting ideas that has its own individual roots.
Globalization is considered a historical process of fast-growing
interconnectedness in every sphere of social, political and economic life,
across political and national frontiers.
Globalization involves:
• A stretching of social, political, and economic activities across political
frontiers.
• A growing magnitude of interconnectedness in almost every sphere of
social existence.
• An accelerating pace of global interactions and processes associated with
a deepening enmeshment of the local and the global.
The Task of Defining the Globalization
Since its first appearance in the Webster’s dictionary in 1961, many
opinions about globalization have flourished. The literature on the
definitions of globalization revealed that the definition could be classified as
either (1) Broad and Inclusive or (2) Narrow and Exclusive.
“…. Globalization means the onset of the borderless world…”
Ohmae, 1992. Is an example of Broad and inclusive definition.
“The characteristic of globalization trend includes the
internationalizing of production, the new international division of labor, new
migratory movements from south to north, the new competitive
environment that accelerates these processes, and the new
internationalizing of the state…. Making states into agencies of the
globalizing world.”
The main difference between Broad and Inclusive vs. Narrow and
Exclusive are their scope of defining globalization. Broad and Inclusive
offers a wider scope rather than focusing on a single topic, it may be
applied generally but it lacks quality such as clarity and often vague. On the
other hand, Narrow and Exclusive are more direct but it mostly focusses on
a single process either political system, economic, cultural, or social.
Overall, globalization is a concept that is not easy to define because
in reality, globalization has a shifting nature. It is complex, multifaceted, and
can be influence by the people who define it. Moreover, the issue and
concerns involving globalization have a wide range – from the individual to
society, from small communities to nation and states, and from the benefits
we can gain from it to the costs it could carry. In his article, “Globalization of
Nothing.” Ritzer (2003) said, “Attitudes towards globalization depend,
among other things, on whether one gains or losses from it”. Nevertheless,
the task of defining globalization should stimulate morediscussions about it.
More importantly, the fact that we experience should give one the interest
of engaging in the study of it.
Metaphor of Globalization
In order for us to better understand the concept of globalization, we
will utilize metaphors. Metaphors make us of one of term to help us better
understand another term. In our case, the state of matter - solid and liquid
– will be use.
Solidity refers to the barriers that prevent or make difficult movement
of things. Solid can be either man-made or natural barriers. Example of
man-made, Berlin Wall, Great wall of China, or the nine-dash line that used
by the People’s Republic of China to prohibit fishing of the foreign vessels
on their assumed border. Note : Solidity does not only refers to the tangible
objects.
Liquid, as a state of matter takes the shape of its container.
Moreover, liquids are not fixed. Liquidity, therefore, refers to the increasing
ease of movement of people, things, information, and places in the
contemporary world.
Flows are the movement of people, things, places and information
brought by the growing ‘porosity’ of global limitation. Example, the
migration of people from one place to another, these movements or movers
also brings their culture, cuisine, information etc. that can be adapt by other
nationalities interacting with them.
Globalization Theories
We have established the many definitions of and issues in defining
globalization and the metaphors that we can use to understand easily the
concept. We have also looked into its origins and history. This section will
give you a glimpse of the important theories on globalization. We will
analyze globalization culturally, economically, and politically in this books
as reflected in the succeeding chapters. In the meantime, it would be
helpful to assert that the theories see globalization as a process that
increases either homogeneity or heterogeneity.
Homogeneity refers to the increasing sameness in the world as
cultural inputs, economic factors, and political orientations of societies
expand to create common practices, same economies, and similar form of
government. Homogeneity in culture often linked to cultural imperialism.
This means, a given culture influences other culture. The dominant religion
in our country is Christianity which is brought by Spaniards, prior to that our
religion was mostly based on the paganism.
The global flow of media is often characterized as cultural
imperialism. Tv, music, books, and movies are perceived as imposed on
developing countries by the west.
Heterogeneity, on the other hand, pertains
to the creation of various cultural practices, new
economies, and political groups because of the
inter action of elements from different societies in
the world. It also refers to the differences because
of either lasting differences or of the hybrids or
combination of cultures that can be produced
through the different trans-planetary processes.
Contrary to Cultural Imperialism, Heterogeneity promotes the
integration of culture to the global stages, or “glocalization”.
Activity 1.2
Label the following definition of Globalization, 1 for Broad and Inclusive or
2 for Narrow and Exclusive.
Author Definition Answer
Webster’s “Growth to a global or worldwide scale.”
Online
Dictionary,
2006
The “The term ‘globalization’ describes the increase mobility of
Canadian goods, services, labor, technology, and capital throughout
Government, the world. Although globalization is not a new
development, its pave has increased with the advent of
2005
new technologies, especially in the area of
telecommunications.”
William “…. the movement across international border of
Easterly, goods and factor of production.”
2004
Robert O. “……Globalization describes a trend of increasing
Keohane, transnational flows and increasingly thick
2002 networks of interdependence.”
Malcolm “The key idea by which we understand the
Waters, 2001 transition of human society into the third
millennium.”
J.E. Elliott “Globalization is the establishment of the global
and P.V. market free from sociopolitical control.”
Nikitin, 2003.
Griffith “The process of developing, manufacturing, and
University, marketing software products that are intended for
2000 worldwide distribution. This term combines two
aspects of the work: internationalization (enabling
the product to be used without language or
cultural barriers) and localization (translating and
enabling the product for a specific locale.”
Kiely and “… a world in which societies, cultures, politics
Marfleet, and economics have, in some sense, com closer
1998 together.”
Activity 1.3
In this activity, you are to see the actual application of globalization on the
different aspects of daily life such as politics, music, sports, film, celebrity,
and disaster.
1. Answer the following questions:
a. Enumerate at least three of the most recent songs you have
listened. Where did they originate? Identify the nationality of the
writer and/or the artist for each music.
b. What gadgets or devices do you usually listen to music.
c. Where were this gadgets or device made? Where is the company
based?
d. How did you access these music? Did you purchase them online
or listen to them through youtube, spotify, or/and other music
channel.
2. Using visual representation, create your generalizations and discuss:
What is globalization? And how would you define globalization?
Note : Write your answer on a yellow pad or bond paper. Attached the
paper at the back of module and label it Activity 1.3.
Activity 1.4
Surf the internet and give the definition of the following terms.
Cultural Differentialism -
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Cultural Hybridization -
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Cultural Convergence -
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Activity 1.5
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2. Search the web and give your own definition of the word
GLOCALIZATION.
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Origin and History of Globalization
Activity 1.6
In your own opinion, what do you think is the most accurate, among the
origin of globalization, in terms of explaining the origin of Globalization, and
why?
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The Global Economy
Introduction
The United Nations (UN)
tried to address the different
problems in the world. Their
efforts were guided by the
eight Millennium Development
Goals, which they created in
the 1990s. Among these 8
goals, eradication of extreme
poverty and hunger ranked
first. The other seven goals
include: achieving universal
primary education,
promoting gender equality and women empowerment, reducing child
mortality, improving maternal health, combating diseases like
HIV/AIDS and Malaria, ensuring environmental sustainability, and
having a global partnership for development.
Since there are different standards of living around the world, we can
expect different meanings attached to it. In the Philippines a person is
officially living in poverty if he only makes 275 pesos a day. This is called
the poverty line or poverty threshold. But we are going to focus on extreme
poverty which, according to the UN, is a condition characterized by severe
deprivation of basic human needs including food, safety drinking water,
sanitation facilities, health, shelter, education, and information. The UN
defines extreme poverty as living less than 100 pesos a day.
Activity 2.1
If you are given a chance to be a World Leader against Poverty what is
your first step of battling Extreme Poverty.
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Economic Globalization and Global Trade
According to the United Nations, “Economic Globalization refers to
the increasing interdependence of the world economies as a result of
growing scale of cross-border trade of commodities and services, flow of
international capital, and wide and rapid spread of technologies. It reflects
the continuing expansion and mutual integration of market frontiers, and is
an irreversible trend for the economic development in the whole world at
the turn of millennium.”
There are two types economies associated with economic
globalization – Protectionism and trade Liberalization.
Protectionism means “a policy of systematic government
intervention in foreign trade with the objective of encouraging domestic
production. This encouragement involves giving preferential treatment to
domestic producer and discriminating foreign competitors”, one of the
classic example of is the Filipino First Policy of former Pres. Carlos P.
Garcia.
Trade protectionism usually comes in the form of quotas and tariffs.
Tariffs are required fees on import or exports. For instances, a pen in
country A would cost only $1 but after importing it to country B it will now
cost $6 with a $5 tariff imposed. Protectionism exists in the world economy
despite the growth of trade liberalization. Countries such as China, Japan,
and the United State are being accused of practicing protectionism.
Liberalization or free trade, free trade agreements and technological
advances in transportation and communication mean goods and services
moves around the world more easily than ever. We are talking about
everything from shoes to bananas to innovation and ideas.
Let us take mobile phone for example. Mobile phones seem to have a
good consequence for everything including reducing poverty. According to
economist Jeffery Sachs, mobile phone are the “single most transformative
technology” when it comes to the developing world. Phone give people
access to the banking and payment system and better access to education
and information. In some places, mobile phone helps farmers to get
information and get the best price for the crops they are producing.
Globalization made some countries, especially the developing ones,
to gain more in the global economy at the expense of the other nations.
There are various way, however, the country can make the trade easier
with other countries while lessening the inequalities in the global world.
One of them is “Fair Trade”.
Fair Trade, as defined by the International Fair Trade Association, is
the “concern for the social, economic, and environmental well-being of
marginalized small producers”. It aims for more moral and equitable global
economic system. Specifically, it is concerned with protection of workers
and producers, establishment of more just prices, engagement in
environmentally sound practices and sustainable production, creation of
relationship between producers in the South and consumer in the North,
and promotion of safe working environment.
South and North Division, it
refers to the socio-economic
division among the countries in
modern world. The North is
composed of countries like
America, Japan, and other First-
world Countries. While the south is
mostly composed of Third World
Countries or countries with low
Gross-National income like Niger,
Yemen Tanzania and some of the
second world countries.
Activity 2.2
Essay : Answer the following questions on yellow pad with min. of 50
words. Attached the yellow pad at the back of module and label it Activity
2.2.
1. Do you think that the Philippines is Harmed as other countries
transfer their activities to us through outsourcing?
2. In what ways do the international organizations help our country’s
economy?
3. Does the position of rich countries as giants in the economic chain
threaten the status of less developed countries in the global marker?
Activity 2.3
Follow the product. 1 whole yellow
pad
1. Choose one product with specific
foreign brad. A. Adidas Shoe, B.
Starbucks Coffee, C. Apple iMac D.
Ferrari Car.
2. List down the main ingredients or
raw materials in manufacturing the
chosen product. Identify the
corresponding country from which
each ingredients or raw materials
came from.
3. Identify the countries involved in
manufacturing of the chosen product. Indicate the corresponding service
the country does for the product. (e.g., Costa Rica – Planting Beans)
4. Aside from the Philippines, list the other countries in which the product is
being sold.
5. Cite the kinds of technology that made the creation of the product
possible. Consider communication and transportation.
Market Integration
The social institution that has one of the biggest impacts on society is
the economy. You might think of the economy in terms of number –number
of underemployed, gross domestic product or GDP, or whatever the stock
market is doing today. It is the social institution that organizes all the
production, consumption, and trade of goods in the society. There are
many ways in which products can be made, exchanged, and used. Think
about capitalism or socialism, these economic systems-and the economic
revolutions that created them- shape the way people live their lives.
Economic systems vary from one society to another. But in any given
economy, production typically splits into three sectors.
The Primary
sector extracts
raw materials from
natural
environment,
farmers or miners
fit well in the
primary sector.
The Secondary
sector gains the
raw materials and
transforms them
into manufactured
goods. This means, for example, that someone from primary
sector extracts the oil and the secondary sector refines it into
petroleum or gasoline.
The Tertiary Sector are those who involves in services, like
entrepreneurship. It offers services by doing things rather than
making them.
Activity 2.4
On the boxes below, list down the appropriate job that belong to a
particular sector and their product or services.
Job/Labor/Work Product/Service
SectorPrimary
SectorSecondary
SectorTertiary
History of Global Market Integration
Before the rise of today’s modern economy, people only produced for
their family. Nowadays, economy demands the different sector to work
together in order to produce, distribute, and exchange products and
services. What caused this shift in the way people produce for their need?
In order to understand this we will be going back in time, 12,00 years ago.
The Agricultural Revolution and Industrial Revolution
The first big economic change was the
Agricultural Revolution (Pomeranz, 2000),
when people learned how to domesticate
plants and animals, they realized that it was
much more productive than hunter-gatherer
societies. This became the new agricultural
economy. Farming helped societies build
surpluses, meaning, not everyone had to
spend their time producing food. This, in turn, led to major developments
like permanents settlements, trade networks, and population growth.
The second major economic
revolution is the Industrial
Revolution of the 1800s. With the
rise of industry came new economic
tools, like steam engines,
manufacturing, and mass
production. Factories popped up
and change how work functioned.
Instead of working at home where
people work for their family by
making things from start to finished,
they began working as waged
laborers and then becoming more specialized in their skills. Overall,
productivity went up, and standard of living rose, and people had access to
a wider variety of goods due to mass productions.
However, every economic revolution comes with economic
casualties. The workers in the factories –who were mainly poor women and
children- worked in dangerous condition for low wages.
Capitalism and Socialism
There were two competing economic models that sprung up around
the time of the industrial revolution, as economic capital became more and
more important to the production of goods. These were capitalism and
socialism.
Capitalism is a system in which all natural resources and means of
production are privately owned. It emphasizes profit maximization and
competition as the main drivers of efficiency. This means that when one
owns a business, he needs to outperform his competitors if he is going to
succeed. He is incentivized to be more efficient by improving one’s product
and reducing its price.
In a Socialist System (Socialism), the means of production are under
collective ownership. It rejects capitalism’s private property and hands-off
approaches. Instead, in socialism, property is owned by the government
and allocated to all citizens, not only those with the money to afford it.
Socialism emphasizes collective goals, expecting everyone to work for the
common good and placing higher value on meeting everyone’s basic needs
than on individual profit.
The information Revolution
Ours is the time of information revolution. Technology has reduced
the role of human labor and shifted it from a manufacturing-based economy
to one that is based on service work and the production of ideas rather than
goods. This has had a lot of residual effects on our economy. Computers
and other technologies are beginning to replace many jobs because of
automation or outsourcing job offshore.
Activity 2.5
1. Research about Steam Engine and Gutenberg press, and discuss how
these technologies advances or help the industrial revolution.
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Activity 2.6
In this activity, you are encouraged to surf the internet for information
gathering. Write your answer on the a4 bond paper, either print or written,
and attached at the back of the module.
1. Who are the members of UN Security Councils and what are their
functions and powers?
2. What are the other UN agencies and on what things do they work.
List down at least 5 Agency.
3. What are the ICC and ITLOS and what are their functions?
4. Using a Venn diagram, Compare and Contrast the UN and NATO.
Global Economic Associations: the WTO and NAFTA
The next group is an economic association-WTO or World Trade
Organization. It is made up of 162 countries around the world and was
created with the goal of increasing free trade. Countries, therefore, can buy
and sell goods from one another without placing taxes on imports or tariffs.
In addition, tariffs are used to protect businesses and companies inside
their countries. Tough good in nature, WTO is not without criticism. In fact ,
protest in Seattle in 1999 WTO Conference led, to a major riot as some
said that the WTO was more about helping large companies and
corporations than it was about helping people.
Another famous Economic organization is NAFTA or North
American Free Trade Agreement. This is an economic treaty between the
United States, Canada, and Mexico in which the three countries trade
freely without taxing each other.
Non-Governmental Organizations (NGOs)
Another example of an international
organization that was developed out of war is the
Red Cross (Red Crescent in Muslim
countries). NGOs are not tied to any country.
This allows them to operate freely throughout the
world. They provide emergency relief such as
food, water, and medical supplies for those
whose homes or towns have been destroyed by
disaster or war. They also monitor the treatment
of prisoners of wars and go to conflicts to make
sure that no war crimes are taking place. In fact Red Cross began as an
Organization to help those who were wounded during wars. The big Red
Cross worn by the NGOs is the identification that they are not soldiers.
Activity 2.7
Search at least 5 NGOs in the news or internet explain what kind of
humanitarian, environmental, or any work that they are doing. ½ Yellow
pad.