25/09/2023

Lesson 2: The Structures of Globalization

Objectives
GEC108 1. Define economic globalization.
Contemporary World 2. Identify the factors that facilitate economic

Lesson 2: The Structures of Globalization

globalization.
3. Define modern world system.
The Global Economy
4. Articulate a stance on global economic integration.

Global Economy Global Economy Tariffs

Global Economy or economic globalization is A tariff is a tax imposed by a government on goods and services
imported from other countries. Tariffs are typically used to increase the
Global Economy is also concerned on the globalization of production, finance, markets,
technology, organizational regimes, institutions, corporations, price of imported goods, making them more expensive than domestic goods
and services, thus protecting domestic industries.
and labor.
referred to as world • General Agreement on Tariffs and Trade
Tariffs can be used for a variety of purposes, including:
• World Trade Organization
economy. -which made countries gradually cut down trade barriers
•To protect domestic industries from foreign competition
•To raise revenue for the government
and open-up their current accounts and capital accounts. •To reduce imports and improve the balance of trade
•To retaliate against other countries for imposing tariffs on their own exports

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Global Economy Market Integration

This recent boom has been largely Market integration happens when different markets for the same good or
service become more interconnected. This can happen for a variety of reasons,
supported by developed economies integrating including:
• Reduced trade barriers: Governments can reduce or eliminate tariffs, quotas, and
with majority world through foreign direct other trade barriers, making it easier for goods and services to flow across borders.
investment and lowering costs of doing • Improved transportation and communication infrastructure: Better transportation

business, the reduction of trade barriers, and Market Integration and communication infrastructure makes it easier for businesses to trade with each
other and for consumers to access goods and services from other markets.
• Globalization: Globalization is the process of increasing interconnectedness
in many cases cross border migration. between countries and economies. This can lead to market integration through a
variety of channels, such as increased cross-border trade, investment, and migration.

Market Integration Market Integration Market Integration

Market integration can have a number of benefits, including: However, market integration also has some potential drawbacks, such as: Here are some examples of market integration:
• Increased competition: Market integration leads to increased • Job losses: Market integration can lead to job losses in some sectors • The European Union has created a single market for goods and services
if domestic businesses are unable to compete with foreign businesses. within its member states. This has led to increased trade and competition
competition between businesses, which can drive down prices between businesses in different member states.
and improve the quality of goods and services. • Exploitation of workers: Market integration can lead to the
exploitation of workers in developing countries, where labor costs are • The North American Free Trade Agreement (NAFTA) has integrated the
• Greater consumer choice: Market integration gives consumers lower. economies of the United States, Canada, and Mexico. This has led to
access to a wider range of goods and services at lower prices. • Environmental damage: Market integration can lead to increased
increased trade and investment between the three countries.
• Increased economic growth: Market integration can lead to environmental damage as businesses move to countries with less • The World Trade Organization (WTO) is an organization that works to
increased economic growth by promoting trade and investment. stringent environmental regulations. promote free trade between its member countries. The WTO has helped to
reduce trade barriers and improve market integration around the world.

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Free trade Free trade

Free trade is a policy that allows goods and Free trade is based on the principle of comparative
services to be bought and sold across advantage, which states that countries should
specialize in producing the goods and services that
international borders with little or no they are best at producing, and trade with other
government tariffs, quotas, subsidies, or
Free trade prohibitions to inhibit their exchange.
countries for the goods and services that they are
not as good at producing. This leads to a more
efficient allocation of resources and higher global
economic output.

Global Interstate System Global Interstate System

The global interstate system is a In the modern world-system, the division labor
consists of three zones according to the prevalence
network of relationships between of profitable industries or activities:
The Global Interstate sovereign states. It is a complex • Core

System system that is shaped by a variety of • Semi periphery

• Periphery
factors, including geography,
economics, politics, and culture.

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Global Interstate System Global Interstate System Global Interstate System

Core Semi-periphery Periphery
-are the most developed and industrialized -are in a transitional stage between the core -are the least developed and industrialized
countries in the world. They have high-tech and the periphery. They have a mix of high-tech countries in the world. They have low-tech
industries, high wages, and a high standard of and low-tech industries, as well as a mix of high industries, low wages, and a low standard of
living. and low wages. living.
Examples of core countries include the Examples of semi-periphery countries include Examples of periphery countries include
United States, Japan, and Germany. Brazil, Mexico, and South Korea. Bangladesh, Ethiopia, and Haiti.

Global Interstate System Global Governance Global Governance

The world-systems theory stresses that This term global governance is In response to the acceleration of
world-systems (and not nation states) should be sometimes referred to as world governance. worldwide interdependence, both between
the basic unit of social analysis. Thus, we should Global is a movement towards political human societies and between human kind and
focus not on individual states, but on the relations the biosphere, the term “global governance"
cooperation among transnational actors,
between their groupings (core, semi-periphery, may mean the process of designating laws,
and periphery). negotiating responses to problems that rules, or regulations intended for a global
affect more than one state or region. scale.

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Institutions that govern International Relations Institutions that govern International Relations Institutions that govern International Relations
• The European Institute for International Law and • Department of Latin America Studies (Centro Universitario de • The Canadian Instituteof International Affairs (Toronto,
International Relations (Brussels) Ciencias Sociales y Humanidades) at Universiy of Guadalajara ON, Canada)
located in Guadalajara, Mexico
• ISPI Instituto per gli Studi di Politica Internazionale (Italian • The Royal Institute of International Affairs, (RIIA) Karachi, • Geneva School of Diplomacyand InternationalRelations
Institute for International Political Studies (Milan, Italy) Pakistan (Geneva, Switzerland)
• Institute of World Politics (Washington, D.C.) • The New Zealand Institute of International Affairs (Wellington, • Graduate Institute of International and Development
New Zealand) Studies (Geneva, Switzerland)
• Department of International Studies (Centro Universitario
de Ciencias Sociales y Humanidades) at Universiy of • The Australian Institute of International Affairs (Deakin, ACT, • International Strategic Research Organization
Australia)
Guadalajara located in Guadalajara, Mexico (ISRO/USAK)

Institutions that govern International Relations Contemporary Global Governance UNITED NATIONS
• EGMONT-Royal Institute for International Relations Global governance/world governance is a • The main function of UN is to maintain peace and security
(Egmont), Brussels, Belguim movement towards political cooperation among for all of its member-states.
• University of Florida International Center (U.S.A) transnational actors, aimed at negotiating responses to • Aims to protect human rights and provide humanitarian
problems that affect more than one state or region. assistance when needed.
• Center for InternationalAffairs JahangirnagarUniversity, • United Nations (UN)
(Savar, Dhaka, Bangladesh) • International Criminal Court (ICC)
• South AmericanInstitutefor Policy and Strategy (Porto • World Bank (WB), etc.
Alegre, Brazil)

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Internationalism VS Globalization Internationalism VS Globalization

Internationalization is the process of designing and Globalization is the process of increasing
DISTINGUISH adapting a product, service, or internal operation interconnectedness and interdependence
Internationalism to make it more suitable for foreign markets. It is between different countries and economies. It is
vs a strategic business decision that allows
companies to expand their reach and increase
driven by a number of factors, including
advances in technology, transportation, and
Globalization their profits. communication.

Internationalism VS Globalization Internationalism VS Globalization

End of
Lesson 2.

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Assignment:
Below are organizations that govern international relations.
Compare two (2) of them in terms of their objectives, roles, functions.
Write your answers in bullet form.
• International Criminal Court (ICC)
• North Atlantic Treaty Organization (NATO)
• Asia-Pacific Economic Cooperation (APEC)
• United Nations Children’s Fund (UNICEF)
• Global Environment Policy (GEF)