Week 1 CONTEMPORARY WORLD

GLOBALIZATION….

- the increasing interaction of people, states, or countries through the growth of the international flow of
money, ideas, and culture. Thus, globalization is primarily focused on the economic process of integration
that has social and cultural aspects.
- the interconnectedness of people and businesses across the world that eventually lead to global, cultural,
political, and economic integration.
- the interconnectedness of people and business across the world that eventually lead to global, cultural,
political, and economic integration.
- free movement of goods, services and people across the world in a seamless and integrated manner.
- the liberalization of their countries of their impact protocols and welcome foreign investment into sectors
that are mainstays of its economy.
- refers to the countries acting like magnets attracting global capital by opening up their economies to
multinational corporations.

GLOBALIZATION AS DEFINED BY OTHER AUTHORS

- Martin Albrow and Elizabeth King - process by which the people of the world are incorporated into a single
word society.
- Anthony Gidanes - the intensification of worldwide social relations which link distant localities in such a way
that local happenings are shaped by events occurring many miles away and vice versa.
- Prof. Roland Robertson - the compression of the world and the intensification of the
- consciousness of the world as a whole.

FACTORS DRIVING GLOBALIZATION

 The Digital Revolution

Made it easy access to goods and services produced from anywhere in the world.

 International Economic Integration

Several trade blocs have made national borders as barriers to trade are reduced/removed among member

countries.

 Socio-cultural Convergence

Due to access to information through online newspapers and social media, people are losing cultural

identity.

 Global Education Providers

With the popularity of online learning, there are institutions which offers education courses to a global

audience.

 Cross-border Political Influence

Governments have formulated policies that facilitate cross-border trade and influence.

 Financial Liberalization

- Increasing interconnection of countries due to deregulation of financial markets.

 Intense Competition

- With intense competition among firms, firms are looking for new market across borders.
  Increased International Business and trade

- Some firms are involved in importing and exporting goods and services across national borders.

 Need for economic of scale

- As competition , firms are looking for ways of obtaining and enjoying cost savings.

THE SOCIOECONOMIC CHANGES IN GLOBALIZATION

Scholte – argues that Globalization is not just about going beyond territorial boundaries, but is also about changes in

the temporal connections of people.

And also he identifies four key shifts in society:

1. Growth of trans – and supra- territorial connectivity

2. The shift from capitalism to hyper-capitalism focused on production
3. A move from nationalism toward identifying pluralism and hybridity
4. From rationalism toward knowledge reflexivity

Week 2

INTERROGATING GLOBALIZATION

ECONOMIC GLOBALIZATION – it is concerned with globalization of production,

finance, markets, technology, organizational regimes, institutions, corporations and labor.

- It is expanding since the emergence of trans-national trade and increased exponentially

due to the increase rate of communication and technology.

- The creation of world trade organizations made countries cut down trade barriers and

open up their current accounts and capital accounts.

FLOWS IN THE AGE OF GLOBALIZATION:

TRADING – on a national scale, it loosely represents the proportion of all production that

crosses the boundaries of a country.

- It represents the proportion of all world production that is used for imports and exports

between countries.

CAPITAL MOVEMENT – refers to the movement of money for the purpose of investment, trade or business
operations. One capital movement is foreign investment.
Foreign investment can be categorized as:

1. COMMERCIAL LOANS – are money lend to foreign business or government

2. OFFICIAL FLOWS – refer to development aid or money granted by rich countries to developing
nations.
3. FOREIGN DIRECT INVESTMENT – refers to buying or putting up in a foreign country or contributing to the
enhancement of an existing firm.
 4. MOVEMENT OF PEOPLE – refers to the movement of people across international borders in the form of
immigration, international student flows, business travel and tourism.

CULTURAL GLOBALIZATION – refers to the transmission of ideas, meanings and values around the world in such a
way as to extend and intensify social relations. This process is marked by the common consumption of cultures that
have been diffused by the internet, popular culture media and international travel.

POLITICAL GLOBALIZATION – refers to the intensification and expansion of political interrelations across the globe.

ASSUMPTIONS BEHIND CRITIQUES TO THE ASSUMPTIONS

GLOBALIZATION

Rapid economic growth will lead Economic growth is only one aspect of development other aspirations are:
to development > achieving both material needs and broader social objectives;
> social and economic justice and equity;
> self-reliance;
> welfare, adequate provision of basic services; and
> equitable distribution of opportunities, income, and wealth.

Trading will bring prosperity Trading benefits some more than others

Poor countries will benefit from Borrowing of poor countries are coupled with conditions (SAPs), which
borrowed funds make countries compromise spending for social service and welfare

Poor countries need to catch up It will be difficult for poor countries to catch up because they are caught in
with rich countries by unequal exchanges and underdevelopment.
implementing economic policies Underdevelopment cannot be understood just by analyzing one country but
toward economic integration. by examining it within the historical and worldwide political-economic
system

Reduction of tariffs in the Philippines since the 1980’s led to unfair

Removal of tariffs, quota can competition of local industries imports. Industries direly affected by tariff
ease global trading and will lead cuts were paper products, textiles, ceramics, rubber products, furniture,
to economic integration. (toward wood, shoes and leather goods. One of the worst hit was the textile
prosperity) industry, down to less than 10 firms from 200 firms in 1970’s. Reduction of
tariffs led to the death of several domestic industries.
The loss of these local industries also resulted in massive unemployment.

Institutions and Actors Shaping Economic Globalization

 ROLE IN ECONOMIC GLOBALIZATION
ORGANIZATION

World Bank  Facilitate investment of capital for member countries

 Fund large-scale projects by improving loans for member countries
 Implement the Structural Adjustment Policies (SAPs) for countries borrowing
from the World Bank. SAPs are programs imposed on poor countries that
require their governments to:
- reduce spending for social services such as education , health, and price
subsidies;
- prioritize repaying debts;
- increase exports, provide subsidies for foreign export-oriented firms; and
- removed tariffs for imports.

International Monetary  Provide short-term emergency loans

Fund (IMF)  Help bring enormous flow of foreign money through loans and speculative
investments

 Create rules for global trade and investment

World Trade  Aim to reduce tariffs
Organization (WTO)  Create agreements for member countries regarding multilateral policies that
push governments to relax regulations on environment, food, safety, and
product quality
 Encourage countries to deregulate economies.

The impacts of Globalization

 Economic deregulation is met with disapproval from different groups such as labor organizations,
environmental groups, indigenous peoples, and even consumer groups. Lessening governments control over
business led to outcomes such as:

- neglect environment

- low wages

- unstable employment

- under servicing of consumers

- privatizing common resources

Contrasting Evidence of Positive Effects

 Increased income
 More employment
 Less poverty

Globalization Have Losers and Gainers

Increased trading may result to wider choices of consumer goods in the market. However, international
trading produces varying results. Restructuring of economy through fast-paced flux of capital across different
countries has impacts on places and social relations. This restructuring places and social relations can have
disintegrating effects for the development of communities (Katz, 2004). These kinds of interactions produce uneven
development.

Unequal playing field for local producers and foreign producers from developed countries lead to losses for
local producers.
The Effects of Global Trading on the Philippines Local Economy

Because of enhance global trading, cheap imported vegetables flood the local market. Local consumers and
business fin it cheaper to buy imported agricultural products that locally produced goods. Local producers are unable
to compete with the modern and highly supported vegetable production from developed countries such as China,
Australia, New Zealand, and the Netherlands.

Week 3

STRUCTURES OF GLOBALIZATION

ECONOMIC GLOBALIZATION
- is the expansion of national economies, the global market driven by modern technologies and institutional set ups
that promote faster and easier flow of goods and capital

GLOBAL ECONOMY
- denotes that the economies of various countries are more interconnected from extraction, production,
distribution, consumption, to disposal of goods and services.

INTERNATIONAL MONETARY FUND

- is an international organization with 183 member countries that promotes international monetary cooperation and
exchange stability to foster economic growth and high employment and to provide short-term financial assistance to
countries to help ease balance of payments adjustments.

INTERNATIONAL FINANCIAL INSTITUTION

- are global financial institutions that support a country’s economic growth through support to governments and
now other private sectors.

GLOBAL CIVIL SOCIETY

- is a system of nongovernmental institutions that operate across geographical borders and organize and mobilize.

GLOBAL CORPORATION
- is an enterprise that engages in activities which add value (manufacturing, extraction, services, marketing, etc. in
more than one country.

WORLD SYSTEM
- is a socioeconomic system, under systems theory, that encompasses part or all of the globe, detailing the aggregate
structural result of the sum of the interactions between polities.

ECONOMIC INTEGRATION
- is a process of combining or increasing the interconnectivity of national economies to the regional or global
economies.

Economic Integration
– means that separate production operations are functionally related to each other and form a unified product or
service. This requires efficient management of economic operations from different areas in the world..

Neoliberal Principles
– with the role of the market as a central driver of economic activities, with less government interventions

WHAT ARE THE ACTORS THAT FACILITATE ECONOMIC GLOBALIZATION

GLOBALIZATION has opened doors for other non-state authority and actors in driving economic globalization.

NON-STATE ACTORS INCLUDE:

>international economic organizations

>private sector led by multinational companies

>central banks - is a public institution that is responsible for implementing monetary policy, managing the
currency of a country, or group of countries, and controlling the money supply

>civil society - a political association governing social conflict through the imposition of rules that restrain
citizens from harming one another

Actors contributes to economic globalization:

> international Economic Organization

●Monetary Fund (IMF)

●World Bank

●Organization for Economic Cooperation and Development

- they help facilitate trade and development discussions among various state.
● Association of Southeast Asian Nations (ASEAN)

●North American Free Trade Agreement (NAFTA)

- these organizations promote regional agreements and standards that facilitate better trade and exchange of
knowledge, human resource, and regional cooperation

●The Group of 8 (G8) and G20

- are advisory organizations that discuss current economic and political problems and transfer the ideas from the
groups forum to national legislative regulations

> Multinational Companies (MNC’s) which are considered to be the main carriers of economic globalization.

In 1996
- there were 44,000 MNCs in the world with 280,000 MNCs in the world with 280,000 overseas subsidiaries and
branch offices.

In 2006
- there were 88,000 MNCs identified .

> MNCs started to emerge during World War II when US industrial production increased by 44 percent .

> Global Civil Society as major driver of economic globalization

- seen as either composed of individuals or groups of individuals disadvantaged by the effects of the
globalization of the world economy, they protest and seek alternatives.

●Transnational Advocacy Networks (TAN)

- networks which are organized to promote causes, principled, ideas, and norms and they often involve individuals
advocating policy changes that cannot be easily linked to a rationalist understanding of their interest.

WHAT IS THE MODERN WORLD SYSTEM

World Economy, according to Wallerstein is divided into core states:

CORE AREAS - are described as the engines of economic growth and are characterized by modern, technologically
advanced production methods as well as highly skilled and high-wage labor.

Peripherals – areas located far away from the main urban and economic centers.

- generally have lower economic potential and accessibility than the more central ones

- are mostly where production or raw materials are sourced out

Semi-peripherals –

- are less developed than core nations but more developed than peripheral nations.

- processed or distributed the products to the core areas-sites of major demands for goods and services.