Chapter 1 4
Chapter 1 4
Chapter 1 4
CONTEMPORAR
1 S T S E M E S T E R , A . Y. 2 0 2 3
Y WORLD
SUBJECT ORIENTATION
GLOBALIZATIO
N
According to Dicken (1998)
“we now live in the borderless
world, in which the national
boundaries is no longer
relevant.”
GLOBALIZATIO
IncreaseN:
the interdependence,
connectivity and integration
on global level on the social,
cultural, political,
technological, economic, and
ecological levels.
GLOBALIZATIO
N:
process of interaction and
integration among people,
companies and governments
of different nations
GLOBALIZATIO
N:
breaking down of national
barriers so that nations can
interact freely with one
another.
GLOBAL POLICY
FORUM (GPF):
• Globalization of Economy
2. GLOBALIZATION IS
INEVITABLE AND
IRREVERSIBLE
IDEOLOGIES IN
GLOBALIZATION:
3. NOBODY IS IN CHARGE OF
GLOBALIZATION
IDEOLOGIES IN
GLOBALIZATION:
4. GLOBALIZATION
BENEFITS EVERYONE
IDEOLOGIES IN
GLOBALIZATION:
5. GLOBALIZATION
FURTHERS THE SPREAD
OF DEMOCRACY IN THE
WORLD
IDEOLOGIES IN
GLOBALIZATION:
6. GLOBALIZATION
REQUIRES A WAR ON
TERROR
According to Dally (1999)
“Globalization is considered by
many to be inevitable wave of
the future, is frequently confused
with internationalization, but it is
in fact something totally
different.”
INTERNATIONALIZ
ATION
-refers to increasing
importance of international
trade, international relations,
treaties, alliances, etc.
GLOBALIZATION
-refers to global economic
integration of many formerly
national economies into one
global economy, mainly by free
trade and capital mobility but
also by easy and uncontrolled
migration.
GLOBALISM
Keohane and Nye, Jr. (2000)
defined globalism as a state pf
the world involving networks
of independence at
multicomponental distances.
DIMENSIONS OF
GLOBALISM
• ECONOMIC GLOBALISM
• MILITARY GLOBALISM
• ENVIRONMENTAL
GLOBALISM
• SOCIAL AND CULTURAL
UNIT II
THE GLOBAL
ECONOMY
According to Gereffi (2005)
"Policy-makers, managers, workers,
social activists, and many other
stakeholders in developed as well
as developing nations need a firm
understanding of how the
contemporary global economy
works if they hope to improve their
position in it, or forestall an
The global economy can be
traced by to the expansion of
long-distance trade during the
period of 1450- 1640.
Wallerstein labeled, “long
sixteenth century”
trading companies emerged in
Europe, such us East India
Company and Hudson Bay
Company which created
international trade empire.
According to Dicken, the
development of the world trading
system over a period of several
centuries helped to create
tripartite, Core, Semiperipheral,
and Peripheral economic areas.
Bretton woods, New Hamshire, in
1944
Establishment of:
• International Monetary Fund (IMF)
• International bank for
reconstruction and development
(Present day, World Bank)
• General Agreement on Tariffs and
Trade (GATT) - Elimination of
protectionism
Bretton woods, New Hamshire, in
1944
• Currency: US DOLLAR
• Equivalent of Gold: $35 an ounce
of Gold
Bretton woods, New Hamshire, in
1944
• IN 1960'S, EURO CURRENCY
PLACED INCREASING STRAIN ON
THE BRETTON WOOD’S
FINANCIAL ORDER.
• August 15, 1971 President Nixon
– announced US dollar was no
longer freely convertible into gold.
Bretton woods, New Hamshire, in
1944
1. Globalization of Trade of
Goods and Services
2. Globalization of Financial and
Capital Market
3. Globalization of Technology
and Communication
4. Globalization of Production
COMPARATIVE ADVANTAGE
(David Ricardo)
CLASSIFYING GLOBAL
STRATIFCATION
SOCIOLOGY: BRIEF EDITION (v1.1,
2012)
1. FIRST TYPOLOGY
2. REPLACEMENT TYPOLOGY
a. Developed
b. Developing
c. Undeveloped
DIFFERENT TYPOLOGIES OF
GLOBAL STRATIFICATIONS
3. POPULAR TYPOLOGY
a. DOMINANT COUNTRIES OR
METROPOL
– can expand itself and can be self-
sustaining.
b. DEPENDENT OR SATELLITES
– can expand and self-sustain as a
WORLD SYSTEM THEORY
Ex. OFW
Five kinds of income in the
household:
C. Petty Commodity Production - A
product produced within the confines
of the household but sold for cash on
a wider market.
• International Companies
• Multinational Companies
• Global Companies
• Transnational Companies
POWER OF GLOBAL
CORPORATIONS:
• Economic Control -
Global corporations have
on world trade, financial
markets.
POWER OF GLOBAL
CORPORATIONS:
2. Political Influence - Global
corporations have on national
governments and regional
governance structures.
POWER OF GLOBAL
CORPORATIONS:
3. Social and Cultural
Influence - Global
corporations have on
people’s, attitudes, values,
and lifestyle choices through ,
POWER OF GLOBAL
CORPORATIONS:
4. Environmental Impact -
Global corporations have on
the natural environment.
MULTINATIONAL
CORPORATIONS
ROLE OF MULTINATIONAL
Lapko (2015) Discussed the differet role of
COMPANIES
multinational companies:
3. Promote regional
agreements and alliances
4. Increase of money
circulation in the economy
CHALLENGES OF MULTINATIONAL
COMPANIES:
1. Public Relations.
2. Ethics
3. Organizational Structure
4. Leadership
UNIT IV
THE GLOBAL
INTERSTATE
SYSTEM
One cannot deny the fact that
many facets of the lives that we
live now are an off-shoot of
globalization. The system of
education at present is a good
example.
The Depar tment of Education
implemented the K -12 program, and
the Commission on Higher Education
is implementing the new curriculum in
tertiary education as a result of the K
-12 program. Later on in this chapter,
we will understand why changes in the
educational system happened as a
result of globalization.
“But whether we want it or not,
change is bound to happen and it
will def initely happen”
ECONOMIC
INTERDEPENDENCE
Globalization changed the
relationships
and interactions of countries all over
the world. Just like the opening of the
Suez Canal in the 19th centur y,
globalization also opened many
opportunities and possibilities.
Surugiu and Surugiu (2015) def ined
economic interdependence as
relationships
between countries in which each
country is
dependent on another for necessary
goods
or services.
According to Davis (study.com),
companies
become part of the trading network,
when
they depend on other companies to
supply
the products that they cannot produce
THE ELECTRONIC
HERD AND THE
GOLDEN
STRAITJACKET
In the latter 1980s and the early 1990s,
loan in the United States had a boom. This
boom in the lending industry and the
improvements in communication technology
made lending in different parts of the world
possible. Developing countries want a piece of
this new money too because it promises
improvement in the quality of the people’s lives.
The promise of good prof it and
inf luence made the global f inancial
community happy to lend to these
developing countries (Dave, 2007).
The Electronic Herd
Friedman (2000) referred to it as the
electronic herd. He defined the electronic herd
as a group made up of all the faceless stock,
bond, and currency traders sitting behind a
computer
screens all over the globe, moving their
money around from mutual funds to pension
funds to emerging market funds, or trading on
the Internet from their basements.
The Golden Straitjacket
According to Dave (2007), the herd is
powerful because it has lots of money that
it is willing to lend to others. Once invested, it
has the ability to sell off its investments if
conditions in the country are no longer
favorable for them. To get her money, you
have to make yourself look attractive to it.
To fit into the Golden Straitjacket, a
country must either adapt or be seen
as
moving toward, the following golden
rules (Friedman, 2000):
1. making the private sector the primary
engine of its economic growth;
2. maintaining a low rate of inflation and price
stability;
3. shrinking the size of its state bureaucracy;
4. maintaining as close to a balanced
budget as possible, if not a surplus;
5. eliminating and lowering tariffs on
imported goods;
6. removing restrictions on foreign
investment;
7. getting rid of quotas and domestic
monopolies;
8. increasing exports;
9. privatizing state-owned industries and
10. deregulating capital markets;
11. making its currency convertible;
12. opening its industries, stock, and bond
markets to direct foreign ownership and
investment;
13. deregulating its economy to promote
as much domestic competition as possible;
14. eliminating government corruption;
15. subsidies and kickbacks as much as
possible;
16. opening its banking and
telecommunications systems to private
ownership and competition; and