Southwestern College of Maritime, Business and Technology, Inc.

Quezon Drive, Calero, Calapan City, Oriental Mindoro

www.scmbt.edu.ph / [email protected] / [email protected]

SUBJECT: The Contemporary World DATE:

MODULE #: 3 TEACHER: Ms. Judith Mae R. Zamora

I. TOPIC: The Global Economy

II. TARGET LEARNING OUTCOMES

At the end of the lesson, the student is expected to:
1. Define economic globalization.
2. Identify the actors that facilitate economic globalization.
3. Define the modern world system
4. Articulate a stance on global economic integration.

IV. MATERIALS NEEDED AND REFERENCES

Lobo, Joliver L. et. al.,The Contemporary World. Barangka Drive, Mandaluyong City:
Books Atbp. Publishing Corp.2019.

Aldama, Prince Kennex R. The Contemporary World.Nicanor Reyes Sr. St., Sampaloc,
Manila:Rex Book Store, Inc.2018

V. GEAR UP YOUR MIND

Economic Globalization refers to the international mobility of individuals, capital, technology,

goods, and services. It’s also about how in the global economy integrated countries are. It refers to
how different countries and regions have become interdependent across the globe.
According to one of the most often cited definitions, “economic globalization is a historical process,
the result of a human innovation and technological progress. It refers to the increasing integration
of economies around the world, particularly through the movement of goods, services, and capital
across borders. The term sometimes also refers to the movement of people (labor) and knowledge
(technology) across international borders. (IMF, 2008).
The phenomenon can thus have several interconnected dimensions, such as (1) the globalization
of trade of goods and services; (2) the globalization of financial and capital markets; (3) the
globalization of technology and communication; and (4) the globalization of production. What
makes economic globalization distinct from internationalization is that while the latter is about the
extension of economic activities of nation-states across borders, the former is ‘functional
integration between internationally dispersed activities’ (Dicken, 2004). That is, economic
globalization is rather a qualitative transformation than just a quantitative change. If, however,
globalization is indeed a complex, intermediate set of processes operating very unevenly in both
time and space (Dicken, 2004).
Szentes (2003) globalization is nothing but a process making the world economy an “organic
system” by extending transnational economic processes and economic relations to more and more
countries and by deepening the economic interdependencies among them.
“Economic globalization refers to the increasing interdependence of the world economies as a
result of the increasing scale of cross-border commodities and service trade, the flow of
international capital, and the rapid and widespread of technology. It reflects the ongoing expansion
and mutual integration of market boundaries and is an irreversible trend for worldwide economic
development at the turn of the millennium.”
Economic development, apart from the GDP growth, also includes improvements in literacy, life
expectancy, and well-being for people.

Advantages of Economic Globalization

1. It promotes local growth by stimulating overall growth. Multinational businesses spend
through national companies. Contributing public businesses through local businesses.
Local businesses are providing their community with jobs and dollars. If a business hoards
their cash, the entire system will collapse, but the theory as a whole is right.
2. Higher levels of mutual trust would be created. If different people can trust each other, the
only way business opportunities can grow. Different corners of the world have different
views on what is right or wrong. The colonial aspects of a growing business empire can be
reduced by working together and learning from the different views that people have
because people will work with other people to lift each other.
3. A global community requires a global economy. Goods and services are already being
bought from a global perspective. Thanks to many websites that allow individuals to
market their products or services to anyone with access to a computer or mobile device, a
worldwide market exists online.
4. It forces us to share financial considerations with everyone. Instead of having segmented
pots of cash used for personal needs, economic globalization creates a large pile of money
that can be used for everyone’s benefit.
5. It provides an opportunity for undeveloped countries to join the developed world. There is
no doubt that economic globalization would bring a new wave of outsourcing to nations
that could use a cash to burst to work on their infrastructure and other domestic needs.
6. Innovations in some fields would create new technologies. Whenever a change takes
place, new technologies also arrive in many different fields. The result is a better living
standard for all those involved in the process of development.

Disadvantages of Economic Globalization

1. It gives more power to businesses to influence civil government. As businesses grow in
wealth, political elections can be better shaped. Because of their cash flow they can lobby
for laws that benefit their business. In the past, foreign firms have been restricted from
influencing domestic elections, but recent U.S. Supreme Court rulings and other legal
entities have made it more potent than ever before.
2. It removes local cultures’ emphasis. There is no doubt that in economic globalization, the
American business revolution takes over the leading role. This means that the emphasis
on local culture will be extinguished as globalization continues. Instead of giving influence
from a business perspective, there will only be the three regions.
3. It encourages disease development and spread. Having a globalized economy means
more people will travel internationally than ever before.
4. In economic globalization, most of the world is ignored. It is believed that the world’s
richest 20 percent consumes about 85 percent of the total resources of the world. That
means that as the world becomes smaller, the undeveloped world will be left behind.
5. The exploitation of workers is likely to increase. Because economic globalization is
ultimately a quest for greater profits, there will be a need to exploit the workers in
undeveloped nations that do not make a living wage anywhere.
 6. It would change where there are unemployment and poverty. If jobs are outsourced in a
global economy, a maximum global output will eventually be achieved. There will be no
room for growth anymore. This means that outsourced jobs in developed nations will
create unemployment and potential poverty, shifting who holds power in the global
economy. Businesses are not concerned about frontiers. They are concerned about
profits. Social welfare or benefit programs ideas could cease to exist entirely.

Aspects of Economic Globalization and International Relations

The essential aspects of globalization and international industrial relations are:
1. Ensures a more natural movement across nations of goods and services.
2. Globalization, which is conducive to international industrial relations, has also made it
possible to move smoother people between countries. This also helps people in one
country migrate to another for work, thus tackling the unemployment problem in many
countries.
3. Leads to nationwide free trade. Several bilateral trade agreements have been signed
between countries since the early days of globalization.
4. The ensure information flows easier and faster across geographic boundaries. Economic
relationship success often depends on information.
5. It has led to a reduction in cultural barriers that have proved conducive to nationwide
economic cooperation.
6. Movement of capital between countries due to globalization has also played an essential
role in international economic relations.
7. It has given rise to several multinational corporations which undertake economic activity
across geographical borders.
8. It has helped to address environmental issues which are strategic to international
economic relations.

The Impact of Globalization on Developing, Transitional & Developed Countries

1. Developing countries are nations with a weak industrial base where people have a lower
life expectancy, less education, and less income. Examples of developing countries are
most of the countries in Africa and certain countries in East Asia.
2. Transitional countries are those emerging from a different type of economy towards a
market-based economy. Transitional economy refers to all states that attempt to change
their essential constitutional elements towards market-style fundamentals. The best
examples of transitional countries are China and Russia.
3. Developed countries are countries with a lot of industrial activities and where people
generally have high incomes. They have post-industrial economies, meaning the service
sector provides more wealth than the industrial area. The United States of America,
Australia, and most of the European countries are examples of developed countries.

In developing countries, economic globalization is reaping social benefits. Of course, in the

direction of her life, she must navigate a fine line, balancing between optimizing opportunities and
realizing potential, creating her enemies and thus becoming the architect of her demise.
Globalization’s benefits are true because it has yielded positive results just as often as it has
caused ruin. It leads to increased internal security and stability. It leads to better human well-being.
And it shares developed countries’ luxuries. But, of course, much of globalization is a waiting
game; it’s a time-consuming process indeed. The decision is whether the ends justify the means,
 whether the wait is worth, whether the ends justify the means, whether the wait is worth it, whether
the long-term benefit is greater than the short-term detriment. At its core, economic globalization is
an investment for the future.

NAME OF STUDENT: The Contemporary World

SECTION: MODULE #: 3

VI. BOOST UP YOUR LEARNING

Activity 2: “Global Free Trade Has Done More Harm Than Good”
Write a position paper that shows your stand on the topic above. Write an output with a minimum of
three paragraphs.

NAME OF STUDENT: The Contemporary World

SECTION: MODULE #: 3

VII. LEVEL UP YOUR LEARNING

Quiz #2 Identify the following items. Choose the correct answer from the choices below. Write your
answer on the space provided.

______ 1. Nations that are emerging from a different type of economy towards a market-based
economy.
______ 2. Countries with a lot of industrial activities and where people generally have high
incomes.
______ 3. Apart from GDP growth, it also includes improvement in literacy, life expectancy, and
people’s well-being.
______ 4. Nations with a weak industrial base where people have a lower life expectancy, less
education, and less income.
______ 5. It refers to the increasing interdependence of world economies as a result of the growing
scale of cross-border trade of commodities and services, the flow of international capital and wide
and rapid spread of technologies.
______ 6. “Economic globalization 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 the millennium.”
______ 7. It promotes local growth by stimulating overall growth.
______ 8. It encourages the development and spreading of disease.
______ 9. Countries have realized that with other countries, that is strategically important for the
growth of the economy in this era of globalization.
______ 10. It is the way of extending transnational economic processes and economic relations to
more and more countries and by deepening the economic interdependencies among them.

a. Disadvantages of economic globalization

b. Developed countries
c. According to the United Nations
d. Developing countries
e. Economic globalization
f. Advantages of economic globalization
g. Economic development
h. Economic cooperation
i. Transitional countries
j. Organic system