TOPIC increasingly made global the frame of reference for

SUBTOPIC human thought and action.

SUB-SUBTOPIC
HISTORICAL PERIODS OF GLOBALIZATION

1. The Prehistoric Period (10000 BCE – 3500 BCE)

GLOBALIZATION CONCEPTS, MEANINGS, FEATURES,
In this earliest phase of globalization, contacts
AND DIMENSIONS
among hunters and gatherers – who were spread
around the world – were geographically limited. In
GLOBALIZATION this period due to absence of advanced forms of
> is the process in which people, ideas and goods technology, globalization was severely limited.
spread throughout the world, spurring more >mobility, movement
interaction and integration between the world's
cultures, governments and economies. 2. The Pre-modern Period (3500 BCE – 1500 CE)
> a process of interaction and integration among In this period the invention of writing and the wheel
the people, companies, and governments of were great social and technological boosts that
different nations, a process driven by international moved globalization to a new level. The invention
trade and investment and aided by information of wheel in addition to roads made the
technology. transportation of people and goods more efficient.
> is considered a multi-dimensional process On the other hand writing facilitated the spread of
ideas and inventions.
involving economic, political, technological,
>economics
cultural, religious and ecological dimensions.
> Globalization is an expansion, and intensification 3. The Early Modern Period (1500 – 1750)
of social relations and consciousness across world It is the period between the Enlightenment and the
time and world space. It is about growing Renaissance. In this period, European
worldwide connectivity according to Steger. Enlightenment project tried to achieve a universal
> Both beneficial and dentrimental form of morality and law. This with the emergence
of European metropolitan centers and unlimited
FIRST WORLD WAR IN 1914
material accumulation which led to the capitalist
> there is an increase cross border- trade, world system helped to strengthen globalization.
investment, and migration due to policy and
technical developments. 4. The Modern Period (1750 – 1970)
Innovations in transportation and communication
ATTRIBUTES, QUALITIES OR CHARACTERISTICS OF technology, population explosion, and increase in
GLOBALIZATION migration led to more cultural exchanges and
Globalization has four characteristics or qualities. transformation in traditional social patterns. Process
These are: of industrialization also accelerated.
1. It involves both the creation of new social >enlightenment
networks and the multiplication of existing
connections that cut across traditional, political, 5. The Contemporary Period (from 1970 to present)
economic, cultural, and geographical boundaries. The creation, expansion, and acceleration of
2. Globalization is reflected in the expansion and worldwide interdependencies occurred in a
the stretching of social relations, activities, and dramatic way and it was a kind of leap in the
connections. history of globalization.
3. Globalization involves the intensification and
acceleration of social exchanges and activities. DIMENSIONS OF GLOBALIZATION
4. Globalization processes do not occur merely or
an objective, material level but they also involve 1. Economic Dimension
the subjective plane of human consciousness. This refers to the extensive development of
Without erasing local and national attachments, economic relations across the globe as a result of
the compression of the world into a single place has
technology and the enormous flow of capital that 2. Distributive justice
has stimulated trade in both sources and goods This ensures a basic equity in how both the
burden and the goods of society are
Major Sources of Economic Growth across distributed and that ensures that every
Countries person enjoys a basically equal moral and
1. Property rights legal standing apart from differences in
2. Regulatory institutions wealth, privilege, talent and achievements
3. Institutions for macro-economics
4. Stabilization 3. Social justice
5. Institutions for social influence This refers to the creation of the conditions in
6. Institutions for conflict management which the first two categories of justice can
be realized and the common good
2. Political Dimension identified and defended.
This refers to an enlargement and strengthening of
5. Ideological Dimension
political interrelations across the globe
Ideology is a system of widely shared ideas, beliefs,
norms and values among a group of people. It is
Political Issues that Surface in this Dimension
often used to legitimize certain political interests or
1. The principle of state sovereignty
to defend dominant power structures. Ideology
2. Increasing impact of various
connects human actions with some generalized
intergovernmental organization
claims.
3. Future shapes of regional and global
governance
Major Ideological Claims of Advocates of
3. Cultural Dimension Globalism
This refers to the increase in the amount of cultural 1. Globalization is about the liberalization and
flows across the globe. Cultural interconnections global integration of markets.
are at the foundations of contemporary 2. Globalization is inevitable and irreversible.
globalization 3. Nobody is in charge of globalization.
4. Globalization benefits everyone.
4. Religious Dimension 5. Globalization furthers the spread of democracy in
Religion is a personal or institutionalized set of the world.
attitudes, beliefs, and practices relating to or
manifesting faithful devotion to an acknowledged UNIT 2: THE STRUCTURE OF GLOBALIZATION
ultimate reality or deity. It is the most important 2nd Semester | A.Y. 2022-2023
defining element of any civilization as contrasted
with race, language, or way of life.

Roman Catholic Teaching of Globalization TOPIC 1: GLOBAL ECONOMY

There are eight (8) principles that summarize the
Roman Catholic Teachings. ECONOMIC GLOBALIZATION
1. Commitment to universal human rights
> refers to the increasing interdependence of world
2. Commitment to the social nature of the human economies as a result of the growing scale of cross-
person border trade of commodities and services, flow of
3. Commitment to the common good international capital and wide and rapid spread of
4. Solidarity
technologies.
5. Preferential option of the poor
> It reflects the continuing expansion and mutual
6. Subsidiary
integration of market frontiers, and is an irreversible
7. Justice
trend for the economic development in the whole
8. Integral Humanism- is concerned with whole world at the turn of the millennium
person
> According to the International Monetary Fund
economic globalization is a historical process, the
Justice is divided in three (3) categories:
result of human innovation and technological
1. Commutative justice
progress.
This aims at fulfilling the terms of contracts
> It refers to the increasing integration of economies
and other promises on both personal and
around the world, particularly through the
social level.
movement of goods, services, and capital across
borders. It also refers to the movement of people
(labor) and knowledge (technology) across Road, which started in western China, reached the
international borders. boundaries of the Parthian empire, and continued
> In economic terms, globalization is nothing but a onwards towards Rome. It also connected Asia,
process making the world economy an organic Africa, and Europe.
system by extending transnational economic >In the 17th and 18th century global economy
processes and economic relations to more and exists only in trade and exchange rather than
more countries and by deepening the economic production as the world export to World GDP did
interdependencies among them. not reached 1 to 2 percent.
>In the 19th century the advent of globalization
Two Major Driving Forces for Economic Globalization approaching its modern form is witnessed. A short
1. The rapid growing of information in all period before World War I is referred to as golden
types of productive activities . age of globalization characterized by relative
2. Marketization (A restructuring process that peace, free trade, financial and economic stability.
enables state enterprises to operate as >Growth in international exchange of goods
market-oriented firms by changing the legal accelerated in the second quarter of the 19th
environment in which they operate and can century. Global economy in the 19th and 20th
be achieved through reduction of state centuries grew by an average of nearly 4 percent
subsidies, organizational restructuring of per annum, which is roughly twice as high as growth
management such as corporatization, in the national incomes of the developed
decentralization, and privatization) economies since the late 19th century.

DIMENSIONS OF ECONOMIC GLOBALIZATION INTERNATIONAL MONETARY SYSTEMS AND GOLD

1. The globalization of trade of goods and STANDARD
services
2. The globalization of financial and capital INTERNATIONAL MONETARY SYSTEMS (IMS)
markets >refers to a system that forms rules and standards
3. The globalization of technology and for facilitating international trade among the
communication nations.
4. The globalization of production >It helps in reallocating the capital and investment
from one nation to another.
Difference between Economic Globalization from >It is the global network of the government and
Internationalization financial institutions that determine the exchange
>Economic globalization is a functional integration rate of different currencies for international trade.
between internationally dispersed activities which >It is a governing body that sets rules and
means that it is a qualitative transformation rather regulations by which different nations exchange
than a quantitative change while currencies with each other .
internationalization is an extension of economic >It also reflects economic power and interests, as
activities between internationally dispersed money is inherently political, an integral part of high
activities. politics or diplomacy.
>Economic globalization produces its own major >Organizations – facilities – customs – instruments –
players in the form of transnational corporations rules
(TNCs), the main driving forces of economic
globalization of the last 100 years or roughly two- EVOLUTIONS OF THE INTERNATIONAL MONETARY
thirds of world export. Transnational corporation SYSTEM
otherwise known as multi-national corporation is a >In 1870 to 1914, with the help of gold and silver,
corporation that has a home base, but is registered, trade was carried without any institutional support.
operates and has assets or other facilities in at least Monetary system during that time was
one other country at one time. Examples are the decentralized while market based and money
US-based General Electric (GE), the Coca-Cola played a minor role in international trade in contrast
Company of Atlanta, Georgia, US Nike and others. to gold.
>Gold was believed to guarantee a non-
Origin of Economic Globalization inflationary, stable economic environment, a
>Economic globalization is a process that creates means for accelerating international trade and the
an organic system of the world economy. gold standard functioned as a fixed exchange rate
>In the 16th century world system analysts identify regime, with gold as the only international reserve.
the origin of modernity and globalization through >Gold Standard is a system of backing a country’s
long distance trade in the 16th century. This best currency with its gold reserves. Such currencies are
known example of archaic globalization is the Silk freely convertible into gold at a fixed price, and the
country settles all its international trade transactions
in gold EUROPEAN MONETARY INTEGRATION (EMI)
>After World War I, the use of gold declined due to >on the other hand is a 1979 arrangement between
increased expenditure and inflation which were several European countries which links their
caused by war. Major economic powers were on currencies in an attempt to stabilize the exchange
gold standards but could not maintain it and failed rate. This system was succeeded by the European
because of the Great depression in 1931. Economic and Monetary Union (EMU), an institution
>In 1944, 730 representatives of 44 nations met at of the European Union (EU), which established a
Bretton Woods, New Hampshire, United States to common currency called the euro.
create a new international monetary system called > originated in an attempt to stabilize inflation and
as the Bretton Woods system, the aim of which is to stop large exchange rate fluctuations between
create a stabilized international currency system European countries. Then, in June 1998, the
and ensure a monetary stability for all the nations. European Central Bank was established and, in
>Since the United States held most of the world’s January 1999, a unified currency, the euro, was
gold, all the nations would determine the values of
born and came to be used by most EU member
their currencies in terms of dollar. The central banks
countries
of nations were given the task of maintaining fixed
exchange rates with respect to dollar for each According to the European Commission in 2008, the
currency. The Bretton Woods system ended in 1971 first ten years of the EMU were an evident success
as the trade deficit and growing inflation for participating countries in terms of increased
undermined the value of dollar in the whole world. trade and capital transactions, more integrated
In 1973, the floating exchange rate system, also economies, restored macroeconomic stability and
known as flexible exchange rate system was the utilization of Euro as the second most widely
developed that was market based. used reserve currency. But in 2008 to 2009 the
>To assess whether the gold standard was European Union (EU) is presented with dramatic
successful, the following roles of a properly challenges brought by global financial and
designed IMS must be considered: to lend order economic crisis.
and stability to foreign
exchange markets, to encourage the elimination of The EU in 2010 in response to the crisis enacted the
balance-of-payments problems, and to provide three-pillar financial rescue program which includes:
access to international credits in the event of
disruptive shocks. The gold standard has never 1. The European Financial Stability Mechanism (EFSM)
worked satisfactorily in controlling inflation or >a permanent fund created by the European Union
maintaining equilibrium in international transactions. (EU) to provide emergency assistance to member
states within the Union.
EUROPEAN MONETARY INTEGRATION >It raises money through the financial markets, and
is guaranteed by the European Commission. Fund
EUROPEAN MONETARY INTEGRATION (EMI) raised through the markets, use the budget of the
>refers to a 30-year long process that began at the European Union as collateral.
end of the 1960s as a form of monetary
cooperation intended to reduce the excessive 2. The European Financial Stability Facility (EFSF)
influence of the US dollar on domestic exchange >is an organization created by the European Union
rates, and led, through to provide assistance to member states with
various attempts, to the creation of a Monetary unstable economies.
Union and a common currency. This Union brings >The EFSF is a special purpose vehicle (SPV)
many benefits to Member States. managed by the European Investment Bank, a
lending institution. The fund raises money by issuing
However, over the past decade, the build-up of debt, and distributes the funds to eurozone
macroeconomic imbalances, and the imprudent countries whose lending institutions need to be
fiscal policies of some Member States, resulted in recapitalized who need help managing their
the continuing double crisis in banking and sovereign debt or who need financial stabilization.
sovereign. As a result of this crisis, many individual
Member States face difficult re-adjustment 3. The Financial Assistance of International Monetary
processes, and Members States collectively must Fund (FAIMF)
reappraise the governance architecture of
Monetary Union and adopt new mechanisms to Since the three -pillar system is temporary EU in 2013
detect, prevent, and correct problematic activated its own permanent European Stability
economic trends Mechanism. The future of EMU depends on the
willingness ofmember states to agree on more Heavy tariffs on imported goods are levied by some
fundamental changes in the governance of nations for the protection of their local industries.
Eurozone. The prices of imported goods in local markets are
inflated due to high imported taxes to ensure
INTERNATIONAL TRADE AND TRADE POLICIES demand of local products.
2. Trade Barriers
INTERNATIONAL TRADE >These are measures that governments or public
>is the exchange of goods, services and capital authorities introduce to make imported goods or
across national borders. services less competitive than locally produced
>It is a multi-million dollar activity, central to the goods and services. They are state-imposed
Gross Domestic Product (GDP) of many countries, restrictions on trading a particular product or with a
and it is the only way for many people in many specific nation. It can be linked to the product,
countries to acquire resources. In acquiring service like technical requirement and it can also
products where demand is inelastic and domestic be administrative in nature such as rules and
supply is inadequate absent traders, consumers procedures of transactions. Tariffs, duties, subsidies,
and suppliers are forced to either develop embargoes and quotas are the most common
substitute goods or devote a large percentage of trade barriers.
their income. 3. Safety
>is the exchange of goods or services along >This ensures that imported products in the country
international borders. are of high quality. Inspection regulations laid down
>This type of trade allows for a greater competition by public officials ensure the safety and quality
and more competitive pricing in the market standards of imported products.

TYPES OF TRADE POLICY

Two Key Concepts in the Economics of International
Trade are:
1. National Trade Policy
>This safeguards the best interest of its trade and
1. Specialization
citizen.
>it refers to this process; countries as well as
2. Bilateral Trade Policy
individual businesses can maximize their welfare by
specializing in the production of those goods where >To regulate the trade and business relations
they are most efficient and enjoy the largest between two nations, this policy is formed. Under
advantages over rivals the trade agreement the national trade policies of
2. Comparative Advantage both the nations and their negotiations are
>Comparative advantage comes in; so long as the considered while bilateral trade policy is being
two countries have different relative efficiencies, formulated.
3. International Trade Policy
the two countries can benefit from trade – the
country with absolute advantage will still benefit by >This defines the international trade policy under
directing its resources to those goods where it is their charter like the International economic
most productive and trading for the others organizations, such as Organization for Economic
Co-operation and Development (OECD), World
TRADE POLICIES Trade Organization (WTO) and International
>refer to the regulations and agreement of foreign Monetary Fund (IMF). The best interests of both
countries developed and developing nations are upheld by
>It defines standards, goals, rules, and regulations the policies.
that pertain to trade relation between countries.
TRADE POLICY AND INTERNATIONAL ECONOMY
Each country has specific policies formulated by its
officials. Boosting the nation’s international trade is In most developed countries where open market
the aim of each country. Taxes imposes on import economy prevails, the international economic
and export, inspection, regulations, tariffs and organizations support free trade policies. In the
quotas are all part of country’s trade policy case of developing nations partially-shielded trade
practices are preferred to protect their local trade
FOCUSES OF TRADE POLICY IN INTERNATIONAL TRADE industries. The following are dependent on
globalization: sound trade policies for market
changes, establishment of free and fair trade
1. Tariffs
practices and expansion of possibilities for booming
>These are taxes or duties paid for a particular class
international trade.
of imports or exports. Imposing taxes on imported
and exported goods is a right of every country.
 THE WORLD TRADE ORGANIZATION (WTO) 3. They must induce the necessary
>deals with the global rules of trade between relationship specific investments in an
nations with the main function of ensuring that environment with incomplete contracting
trade flows smoothly, predictably and freely.
>It is the only global international organization Possible Determinants of the Location of Outsourcing:
dealing with the rules of trade between nations with 1. Size of the country can affect the
WTO agreements, negotiated and signed by the “thickness” of its markets.
bulk of the world’s trading nations and ratified in 2. The technology for search affects the cost
their parliaments at its heart. and likelihood of finding a suitable partner.
>WTO is viewed as the means by which 3. The technology for specializing
industrialized countries can gain access to the components determines the willingness of a
markets of developing countries . partner to undertake the needed
GLOBAL ECONOMY OUTSOURCING investment in a prototype.
4. The contracting environments can
OUTSOURCING impinge on a firm’s ability to induce a
>is an activity that requires search for a partner and partner to invest in the relationship.
relation-specific investments that are governed by
incomplete contracts and the extent of
international outsourcing depends on the thickness TOPIC 2: MARKET INTEGRATION
of the domestic and foreign market for input
MARKET INTEGRATION
suppliers, the relative cost of searching in each
market, the relative cost of customizing inputs and >refers to how easily two or more markets can trade
the nature of the contracting environment in each with each other.
country. >It occurs when prices among different locations or
>is a means of finding a partner with which a firm related goods follow similar patterns over a long
can establish a bilateral relationship and having the period of time. Groups of prices often move
partner undertake relationship-specific investments proportionally to each other and when this relation
so that it becomes able to produce goods and is very clear among different markets it is said that
services that fit the firm’s particular needs. the markets are integrated
>The term is further used in identifying related
Bilateral Relationship phenomenon of market of goods and services
>is governed by a contract, but even in those cases experiencing similar patterns of increase or
the legal document does not ensure that the decrease in prices of products.
partners will conduct the promised activities with >It may also refer to the movement of prices of
the same care that the firm would use itself if it were related goods and services sold in a defined
to perform the tasks geographical location in similar patterns.
>exists when there are exerted effects that prompt
SUBCONTRACTING similar changes or shifts in other markets that focus
>is a central element of the new economy. It is the on related goods on events occurring within two or
more markets.
practice of assigning part of the obligations and
tasks under a contract to another party known as a TYPES OF RELATED MARKETS WHERE MARKET
subcontractor and especially prevalent in areas INTEGRATION OCCURS:
where complex projects are the norm like
construction and information technology 1. Stock Market Integration
>This is a condition in which stock markets in
One of the most rapidly growing components of different countries trend together and depict same
international trade is the outsourcing of expected risk adjusted returns. Two markets are
intermediate goods and business services. perfectly integrated if investors can pass from one
Three essential features of a modern outsourcing market to another without paying any extra costs
strategy: and if there are possibilities of arbitration which
1. Firms must search for partners with the ensures the equivalence of stock prices on both
expertise that allows them to perform the markets
particular activities that are required. 2. Financial Market Integration
2. They must convince the potential suppliers >It is an open market economy between countries
to customize products for their own specific facilitated by a common currency and the
needs. elimination of technical, regulatory and tax
differences to encourage free flow of capital and
investment across borders.
>It occurs when lending rates in several different balance the opportunities with the challenges of
markets begin to move in tandem with one another. operating in multiple environments in managing
Emergence of similar patterns within the capital, their internal markets in building an advantage.
stock, and financial
Three Functions can be created by CFOs through
GLOBAL CORPORATION exploiting their internal capital markets:
>a business that operates in two or more countries.
>It also goes by the name "multinational company". 1. Financing
Several advantages are offered by global >A group’s tax bill can be reduced by the CFO like
expansion of business over running a strictly borrowing in countries with high tax rates and
domestic company. lending to operations in countries with lower rates.
>Success in different types of economies is
achieved by means of multiple countries operation 2. Risk Management
while it causes also logistic and cultural challenges. >Global firms can offset natural currency exposures
>Expanding revenue opportunities and diversifying through worldwide operations instead of managing
business risk are the purposes of becoming global currency exposures through financial markets.
corporation. Access to more customers and capital 3. Capital Budgeting
is obtained through a model that works >Getting smarter on valuing investment
domestically well and translates foreign markets
opportunities CFOs can add value.
well.
FOREIGN DIRECT INVESTMENT (FDI)
HISTORICAL PERIODS OF GLOBAL CORPORATION >was of corporate origin.
An approach to the study of globalization >It is a major driver of extended global corporate
that locates the phenomenon itself in early patterns development.
of trade and exchange is known as historical >It is an investment made by a company or
globalization. individual in one country in business interests in
In early historical periods as both cities and another country, in the form of either establishing
countries extended their reach beyond their own business operations or acquiring business assets in
borders, a form of globalization was initiated which the other country, such as ownership or controlling
then followed complex patterns of interactive interest in a foreign company and the key feature
engagements organized through trade and industry of foreign direct investment is that it is an investment
directly influenced by the emergent and made that establishes either effective control of, or
subsequently dominant technologies especially in at least substantial influence over, the decision
shipping and navigation. The entities operating making of a foreign business.
within this environment were functionally and >Foreign direct investment is made open to
organizationally not different from contemporary economies; frequently involves more than just a
organizations being possessed with head offices, capital investment and includes provision of
foreign branch plants, corporate hierarchies, management or technology as well. There are
extraterritorial business law, and even bit of foreign many methods to establish FDIs such as opening a
direct investment and value-added activity. subsidiary or associate company in a foreign
Combination of invention and social country; acquiring a controlling interest in an
organization resulting to increase in worldwide existing foreign company, or by means of a merger
capital and wealth of nation is allowed by modern or joint venture with a foreign company.
nation state system that emerged in the period prior
to the end of World War II. American Corporations BRICS Economies
led the economic recovery and expansion after the
World War II destruction. This period up to the Brazil, Russia, India, China, and South Africa (BRICS)
reentry of Japanese and European corporation to > is an acronym for the combined economies of
the global scene is viewed as multinational Brazil, Russia, India, China and South Africa.
> BRIC, without South Africa, was originally coined in
corporations (MNCs). From the end of World War II
2003 by Goldman Sachs, which speculates that by
to the present is considered the period of
2050 these four economies will be the most
transformation of global corporation. dominant. South Africa was added to the list on
THE FINANCE FUNCTION IN A GLOBAL CORPORATION April 13, 2011 creating "BRICS".
As corporations go global, capital markets open up > These five countries were among the fastest
within them, giving companies a powerful growing emerging markets as of 2011.
mechanism for arbitrage across national financial > Further, Brazil, Russia, India and China (BRIC) refer
markets. Chief financial officers (CFOs) must to the idea that China and India will, by 2050,
become the world's dominant suppliers of members, meet them, or even hear of them, yet in
manufactured goods and services, respectively, the minds of each lives the image of their
while Brazil and Russia will become similarly communion
dominant as suppliers of raw materials. Due to lower  The nation is imagined as limited because even
labor and production costs in these countries now the largest of them, encompassing perhaps a billion
including a fifth nation, South Africa, many human beings, has finite, if elastic, boundaries,
companies have also cited BRIC as a source of beyond which lie other nations.
foreign expansion opportunity i.e. promising  It is imagined as sovereign because the concept
economies in which to invest. was born in an age in which Enlightenment and
Revolution were destroying the legitimacy of the
GENERAL AGREEMENT ON TRADE IN SERVICE (GATS) divinely ordained, hierarchical dynastic realm…
nations dream of being free, and if under God,
General Agreement on Trade in Service (GATS) directly so. The gauge and emblem of this freedom
>is the first multilateral agreement covering trade in is the sovereign state
services which was negotiated during the last round  It is imagined as community, because regardless
of multilateral trade negotiations, called the of actual inequality and exploitation that may
Uruguay Round, and came into force in 1995. prevail in each, the nation is always conceived as a
>The GATS provides a framework of rules governing deep horizontal comradeship
services trade, establishes a mechanism for
countries to make commitments to liberalize trade In everyday political speech and media
in services and provides a mechanism for resolving commentary, the terms nation and states are used
disputes between countries. interchangeably. The term nation-state has a dual
>GATS has similar principle with the GATT. concept, with the modern state going back to the
Peace of Westphalia, and nationalism tracing back
General Agreement on Tariffs and Trade (GATT) to Protestantism, the Enlightenment, the rise of the
>General Agreement on Tariffs and Trade (GATT) vernacular, with both concepts of nation and state
that deals with trade in goods. The two primary fused in the French Revolution.
objectives of GATTS are to ensure that all signatories
are treated equitably when accessing foreign Qua-states
markets; and second, to promote progressive >nation–states are territorial organizations
liberalization of trade and services. characterized by the monopolization of legitimate
violence
Qua-nation
>natio –states are membership associations with a
TOPIC 3: THE GLOBAL INTERSTATE SYSTEM collective identity and a democratic pretension to
rule
GLOBALIZATION AND THE NATION-STATES
THE STATE AND THE ECONOMIC INTERDEPENDENCE
Max Weber The rising momentum of global free-market
>a German social theorist capitalism in the final decades of the 20th century,
>define state as a compulsory political organization the accompanying rise in transnational enterprises,
with a centralized government that maintains a and the resulting disparities between easy flows of
monopoly of the legitimate use of force within a money and commodities across international
certain territory boarders and the legal barriers and logistical
hurdles that keep most workers tied to their home
communities are associated with globalization.
Hedley Bull
>a 20th century international philosopher
The belief that globalization imposes a forced
>stated that states are independent political choice upon states either to conform to free market
communities each of which possesses a principles or run the risk of being left behind is
government and asserts sovereignty in relation to a termed into a phrase called “Golden Straitjacket”
particular portion of the earth’s surface and a by Thomas Friedman, a neoliberalism journalist and
particular segment of the human population advocate, to illustrate the forcing of states into
policies that suit the preferences of investment
Nation on the other hand is an imagined political houses and corporate executives (Electronic Herd)
community and imagined as both inherently limited who swiftly move money and resources into
and sovereign. countries favored as adaptable to the demands of
 It is imagined because the members of even the
smallest nation will never know most of their fellow-
international business and withdraw even more
rapidly from countries deemed uncompetitive

Golden Straitjacket
>a state of affairs where "[a country's] economy
grows and its [democratic] politics shrinks.