GEN 005: THE CONTEMPORARY WORLD (P1 REVIEWER)

LESSON 1: INTRODUCTION TO GLOBALIZATION

GLOBALIZATION
➢ is growth on a worldwide scale. It is the process of integration and the international influence of economies and
cultures.
➢ It is an exchange of goods and an exchange of ideas and even anti-terrorist protections.

FACTORS OF GLOBALIZATION
1. GLOBALIZATION IN ECONOMICS
➢ Interdependence among international economies is a great starting point when seeking an understanding of
globalization.
➢ The more technology advances and the more transportation improves, the more global outlets are revealed in
different areas, such as reducing barriers to international trades and reducing restrictions to movements of
capital and investment.
➢ A greater number of goods can be exchanged, and production methods can be improved. Here are some
examples:
➢ Multinational corporations operate on a global scale, with satellite offices and branches in numerous locations.
This means multinational companies can stay open virtually 24 hours a day and service customers no matter
where they're located.
➢ Outsourcing can add to the economic development of a struggling country, bringing much-needed jobs if a
powerful organization can outsource its call center to a developing country, which creates a new class of jobs for
people who may not have had that opportunity otherwise.
2. GLOBALIZATION IN THE BLENDING CULTURE
➢ New cultures are being transmitted when more people are traveling or exchanging goods. It is also affected by
open communication by internet, especially intermarriages coming from dating site meet-ups.
➢ While world economies benefit from globalization, the spread of new cultures is also affected. Christian
missionaries from Europe added to the globalization of Christianity. As they migrated from one country to
another, more and more people converted to a new spiritual way of living. religion
➢ Improved travel facilitated the growth of globalization, as people moved for a better job or a better life. Migrants
also fled from danger or oppression. People can pack up all their belongings and have them shipped anywhere in
the world. Planes are faster, frequent, and, often, more affordable. employment
➢ Food is another factor of globalization. Filipino or Korean food, for example, is certainly not only limited to the
Philippines or Korea. Instead, we can dine on Filipino and Korean delights in America, all across Europe, and
beyond. food
3. GLOBALIZATION IN TECHNOLOGY
➢ It's easy to argue that technology is a vehicle to globalization. Especially the use of internet, faster mode of travel
by air, land, and water, latest models of communication tools and medical equipment, and life-saving drugs.
➢ The ability to access mountains of information online has opened countless doors. Here are some examples of
globalization, brought to us by the gift of technology: Global news networks, like CNN, contribute to the spread
of knowledge. Worldwide news is reported almost instantly, if not via live broadcast, through continual updates
to online news outlets. Cell phones connect people all over the world like never before. There are many
platforms through which people can communicate too, including Facebook, Messenger, WhatsApp, Instagram,
Snapchat, Twitter, Hangout, etc.
WHICH WAS THE MAJOR CONTRIBUTOR TO GLOBALIZATION?
➢ Internet is a significant contributor to globalization, not only technologically but also in other areas, like the
cultural exchanges of art. Consider how we can enroll in online educational programs from anywhere globally
and access new information on virtually any topic.

LESSON 2: GLOBALIZATION AS INTERNALIZATION AND LIBERALIZATION

➢ Globalization is an economic process that aims to integrate countries' economies globally, internalization acts the
same as Globalization, improvising the local economy, leading to its growth and expansion of businesses across
other countries.

WHAT IS INTERNATIONALIZATION?
➢ Internationalization is related to a firm's movement overseas, artists performing overseas, Filipinos working
overseas. At the same time, Globalization is the rapidly growing integration of communication, finance, culture,
and political ideology. Although, Internationalization is the process that results in Globalization as firm
movements could be the cause of Globalization.
➢ There is a substantial difference between Globalization and Internationalization. Internationalization is to
perform at the international standards with our domestic labor, natural resources to compete for the global
market. It is an effort with own nation's national labor, capital, and resources by operating in domestic and an
international market. Still, Globalization is to integrate the economies with integrity and unity globally to use
other nations' labor, capital, and resources to reach the best results.
 ➢ Filipinos are trained to be globally competitive professionals. They can work worldwide and bring their culture
and skills with them, like Nurses, Engineers, Doctors, Teachers, Architects, Pilots, Domestic Helpers/Nannies,
Cruise ship Crew, Law Enforcement, etc. They are part of the International labor market.

KEY DIFFERENCES BETWEEN GLOBALIZATION AND INTERNATIONALIZATION

1. Globalization is the result, while Internationalization is one of the tools/processes to achieve them.
2. Globalization is more with the nations and their economies. At the same time, Internationalization is more
related to the local individual, firm, and corporations for doing up their businesses.
3. Globalization is a process, and Internationalization is part of the same.
4. Significant factors that affect Globalization are infrastructural and logistics setup, telecommunications, etc.
In contrast, Internationalization gets affected by cultural tastes and preferences, local traditions, etc.
5. The prominent example of Globalization is the Elimination of Visa Obligations, removing tariff and non-
tariff trade barriers, liberalizing investment-related obligations, etc. In contrast, inter-nationalization is
sourcing, producing, or selling materials or delivering services from one or more countries, setting up
branches and subsidiaries in other countries, etc.
6. Globalization is an economic process as it aims to integrate the economies. Internationalization is an
improvisation process as it will expand the business across the nations.
7. Organizations like International Monetary Fund (IMF), World Bank, World Trade Organization (WTO),
etc., observe and work to implement Globalization. At the same time, institutions like the European Union
(EU), Asia Pacific Economic Cooperation (APEC), North Atlantic Free Trade Agreement NAFTA, etc., boosts
Internationalization.

LIBERALIZATION
➢ Liberalization generally refers to removing restrictions; usually, government rules and regulations are imposed on
social, economic, or political matters. It is a process whereby a state lifts restrictions on some private individual
activities. Liberalization occurs when something which used to be banned is no longer prohibited or when
government regulations are relaxed.
➢ Liberalization generally relates to activity within a certain country as a result of modernization and development.
Some countries offer visitor visas upon entry into the country; many countries are visa-free.
➢ Liberalization is a process of removing government-imposed restrictions on the movements between nations to
create an "open and borderless" world economy.

LIBERALIZATION AND GLOBALIZATION

➢ Globalization and Liberalization are concepts closely related to one another. Both Globalization and
Liberalization refer to relaxing social and economic policies that result in better integration with an economy and
between nations.
➢ Globalization is the greater integration among countries and economies for trade, economic, social, and
political benefits. This increased interdependence, in the end, will also eliminate war-related situations, which
ultimately leads to harmony among the nation. Free trade, specialization, and global integration mean that
countries are free to trade.
➢ Globalization and Liberalization are concepts closely related to one another. Both Globalization and
Liberalization refer to relaxing social and economic policies that result in better integration with an economy and
between nations. Globalization is the greater integration among countries and economies for trade,
economic, social, and political benefits.

BARRIERS TO A FREE PHILIPPINE PRESS

➢ The government affirms that press freedom in the country is guaranteed. According to Presidential
spokesperson Harry Roque, “The (Philippine) media remains alert and vibrant in their reportage of the
government and the actions of officials.” This is contrary to Reporters Without Borders’ (RSF) 2021. World
Press Freedom Index which ranked the Philippines 138th out of 180 countries, indicating that the country’s
press freedom is in a “difficult situation.” In this lesson we will find out why the Philippine press ‘seems free but
not free’.
SIX CRITERIA USED BY RSF
✓ Pluralism: the degree to which opinions are represented in the media
✓ Media Independence: the degree to which the media are able to function independently of sources of
political, governmental, business and religious power and influence
✓ Environment and Self-censorship: the environment in which news and information providers operate
✓ Legislative Framework: impact of the legislative framework governing news and information activities
✓ Transparency: transparency of the institutions and procedures that affect the production of news and
information Infrastructure: the quality of the infrastructure that supports the production of news and
information
✓ Abuses: level of abuses and violence against the press

1. Globalization is the result of Internationalization. TRUE

2. Trade is the least factor of Globalization. FALSE
3. Internationalization is related to a firm's movement overseas. TRUE
4. Internationalization is a process that resulted in globalization. TRUE
5. Globalization is a process that aims is to disintegrate the economies of the countries in the world. FALSE
6. Internationalization is the process that results in Globalization. TRUE
7. Internationalization is an improvisation process as it will lead to the expansion of the business across the nations.TRUE
8. Organizations like International Monetary Fund (IMF), World Bank, World Trade Organization, etc., observed and
worked to implement Globalization. TRUE
9. Global integration means that nations are not free to trade. Free trade, specialization, and global integration mean
that nations are free to trade. FALSE
10. Institutions like the European Union (EU), Asia Pacific Economic Cooperation (APEC), North Atlantic Free Trade
Agreement, NAFTA, etc., support and boost Internationalization. TRUE
11. Liberalization is the implementation of restrictions on human activities. FALSE
12. Philippine Passport is not accepted anywhere in the world visa-free. FALSE
13. Same-sex marriage is allowed in all countries. FALSE
14. Legalizing marijuana as medicine is very bad for chronically ill persons. FALSE
15. Being liberal-minded person, you can freely do what you want to do. TRUE

LESSON 3: GLOBALIZATION AS WESTERNIZATION

WHAT IS WERTERNIZATION?
➢ Globalization is the greater integration among countries and economies for trade, economic, social, and
political benefits.
➢ Westernization, the adoption of the practices and culture of western Europe by societies and countries in other
parts of the world, whether through compulsion or influence. Westernization reached much of the world as part
of the process of colonialism and continues to be a significant cultural phenomenon as a result of globalization.
➢ Westernization began with traders, colonizers, and missionaries from western Europe who believed that their
way of life was superior to those of the peoples in the countries to which they traveled. The occupied
peoples were required or encouraged to adopt western European business practices, languages,
alphabets, and attire. They were also encouraged to assume western European education systems, literary
and artistic standards, and to convert to Christianity. Many countries had Western types of government
and military practices imposed on them.

EFFECTS OF WESTERNIZATION
➢ Westernization has greatly affected our traditions, customs, family, and our love and respect for others. The
strong family ties between Filipino members are eroding. The respect for elders is diminishing, hence the
need for a home for the aged in the Philippines. Prostitution yields so many babies fathered by western men
given for adoption by many prostitutes working in the Philippines' red-light districts.

ADVANTAGE OF WESTERN CULTURE

➢ Western civilization has brought good things, too, most especially in the form of modern medicine.
Central cooling is excellent if you live in an unsuitable climate. You can eat the abundance of food
simultaneously in the starving world due to food cropping and food preservation. You are traveling by air, land,
and water in the fastest possible way because of technology in building ports, airports, and expressways.

GLOBALIZATION AS WESTERNIZATION
➢ Westernization is a cultural transformation whereby other societies adopt western ideas. Usually, it is associated
with capitalism, freedom of thought and expression, and more and more with American cultural
entertainment and lifestyles. At the same time, Globalization, on the other hand, refers to closer integration of
people in both cultures and more practical concerns like transport and products.
➢ Both terms are relatively vague and open to interpretation, so it is easy to see how people get confused. Given
the pervasiveness of the US's "Western" ideas globally, other countries that open themselves up to that world
are bound to get a mixture of Globalization and Westernization together.
➢ For example, suppose you ask your friends here in the Philippines what they think of Westernization. In that
case, they'll point to the nearest McDonalds, KFC, or Kobe Bryant, or Nike shoes or something like these.
➢ On the other hand, Globalization refers to closer integration of people in both cultures and more
practical concerns like transport and products. Inevitably, there is some overlap with Westernization. Still,
it’s easy to see that people will be confusing it with Filipinization or Arabianization or Sinozation (Chinese)
instead of in a few decades. Some are the examples:
1. Houses in Asia are supposed to be built tropical style with wide-open windows and open ground
floors to make way for floods to just pass. But houses now were patterned after Western styles, so little
windows make it so hot, and it was run over when the flood came.
2. Celebrations in the Philippines were dominated by Chinese and American cultures, from gowns, food
array and events places, firecrackers, etc.
 3. Academic dreams: Filipinos take courses needed in Western countries, so after graduation, they
dream of working in the USA or any country in Europe, not here at home. We need farmers, agricultural
engineers, and agricultural business people because the Philippines is an agrarian state.

HOW DID FILIPINOS BECOME SO WESTERNIZED?

➢ The Philippines was colonized by Spain (European Kingdom) in 1565 and the United States of America (western
country) in 1898, so Filipinos adopted Spanish culture for 333 years.
➢ We learned Roman Catholic religion from Spain and human rights violations that led to a revolution in 1896.
➢ Spain sold the Philippines, Mexico, Cuba, and Puerto Rico to the United States in 1898 for 20 Million dollars. The
United States gave the Philippines every system we have today; Education and Culture, Hygiene, Sanitation and
Health care, Agriculture, Public Works and Engineering, Government and Politics, Entertainment, Building
Codes, Military Officers' schools, and Police system.
➢ The United States makes Filipinos their Little Brown Brothers that speak English and accept everything the
USA told us to do and say until we were granted Independence in 1946.
➢ Filipinos mostly have the American dream. So we took up courses which will give us a chance to go to the
USA. We get our colonial mentality, thinking that anything imported from western countries is better than
what we have here locally.
➢ These two western countries gave us mixed cultures. They improved the genetic stock of Filipinos, so we
Filipinos were so good-looking and intelligent. We are also the third-largest English-speaking nation outside
America.

LESSON 4: FORMS OF GLOBALIZATION: PART I

FORMS OF GLOBALIZATION
1. ECONOMIC GLOBALIZATION
➢ The concept of Globalization as a whole is mainly economic. Globalization has emerged and developed largely as
an economic concept and system. Economic Globalization is the financial connection of a country with the
global economic system. Globalization in the economic field is free economic adoption. This removes the
regulatory rules imposed on a country's economic affairs and exposes the domestic economy to the world.
➢ Prominent economist Peter Drucker in his New Realities, discusses the economic features of Globalization:
Due to Globalization, international organizations have spread globally to make the entire world a mere
production and product-service market.
✓ The main objective of the global economy is to maximize the market.
✓ Investment in the globalization process has become a trade, not an investment in the trade.
✓ Due to Globalization, the power to make decisions is transferred from the national state to the regional alliances.
✓ In the globalization economy, the management system dominates as a component of production.
✓ The transaction of money mainly drives globalization. Again, the existence of an individual response to
these financial transactions is seen. Unproductive foreign capital creates adverse effects on the global
market.
✓ In economic Globalization, there is a process of almost spontaneous lending, finance, and investment
throughout the world. Information beyond the borders of the national state organizes this process

2. POLITICAL GLOBALIZATION
➢ Political ideology is often referred to as one of the characteristics of Globalization. That is, the expression
of Globalization also occurs in political ideology.
➢ The transformation of liberalism is called an example of political ideology in the process of Globalization.
Moreover, the emergence, development, and expansion of Non- Governmental Organizations (NGOs) as an
expression of political Globalization; The role of the national states is to refer to the part of climate change
and so on.
➢ The expression of political Globalization has occurred in international organizations. All these organizations
exceed the national boundaries. Extending the edges of the single state of the international organization
extends to the global sphere of many states.
➢ There are many and many international organizations in the present world. Most of these were formed in the
aftermath of World War II. Notable examples of this are the United Nations Organization (UNO), the European
Economic Community (EEC), the World Bank, the International Monetary Fund (IMF), and the World Trade
Organization (WTO), etc.
➢ Theoretically, nation-states can take the initiative in organizing international organizations in a coherent and
organized manner without sacrificing their sovereignty. Transnational-state boundaries may force international
institutions to impose their will on states.

3. FINANCIAL GLOBALIZATION
➢ Financial Globalization can be linked with the rise of a global financial system with international and monetary
exchanges. Stock markets, for instance, are a great example of the financially connected global world since when
one stock market has a decline, it affects other markets negatively as well as the economy as a whole.
 LESSON 5: FORMS OF GLOBALIZATION: PART 2
1. MILITARY GLOBALIZATION
➢ Military globalization is defined as the process which embodies the growing extensity and intensity of military
relations among the political units of the world system. It reflects both the expanding network of worldwide
military ties and relations, as well as the impact of key military technological innovations (from
steamships to satellites), which over time, have reconstituted the world into a single geostrategic space.
➢ Military globalization implies firmer integration of armed forces around the world into the global military
system. It is characterized by extensive as well as intensive networks of military force. The most obvious
example of military globalization is the nuclear age and the proliferation of weapons of mass
destruction.

2. CULTURAL GLOBALIZATION
➢ Cultural Globalization is the process of cultural globalization and is also sometimes called
McDonaldization. Cultural globalization is how a world-class of goods, ideas, and information is produced
in one part of the world. As a result, cultural differences between different races, regions, and individuals are
removed.
➢ The emergence and development of international or multinational companies and the emergence of
global goods have partly driven globalization. The revolutionary growth and expansion of information
technology, the expansion of satellite-based communication systems, the Internet, the telecommunication
infrastructure, and various global media corporations are highlighting the process of globalization.
➢ However, as culture helps globalization, so does obstruction. As the elements or forces of globalization are
enriched by culture, so is resistance. Hollywood movies are screened worldwide, Adidas sports goods are
sold around the world. The Coca-Cola market is worldwide. McDonald's has demanded the world's fast-food
market; such products are many and varied worldwide. But all these international brands have to do with
the dignity of local culture and the touch of social customs.

3. ENVIRONMENTAL GLOBALIZATION
➢ Environmental Globalization refers to internationally coordinated practices and regulations in the form of
international treaties regarding environmental protection. The growth of globalization and its impact on the
global environment is an essential concern to the world.
➢ According to some environmentalists, there is no doubt that the tide of development that has come
under the influence of globalization is polluting the environment. To them, globalization increases our
consumption of many products made through natural resources, affecting the ecological cycle very
severely.
➢ Many think that industrialization is part of globalization, and industrialization has been increasing with the help
of globalization. Due to industrialization, harmful chemicals have been thrown into the environment,
affecting the environment dangerously. It can be easier to understand with an example. 2nd December in 1984,
in India, an accident occurred at the Union Carbide pesticide plant in Bhopal (the capital city of the Indian state
of Madhya Pradesh).
➢ This plant accidentally released almost 30 tons of highly toxic gas called methyl isocyanate and other
poisonous gases. The gases were spread throughout its surrounding town populated with 600 000
people. Those gasses affect them very severely; around 15000 people founded death. Until now, those who
directly or indirectly but alive have given birth to mentally or physically challenged children.

4. CRIMINAL GLOBALIZATION
➢ Criminal globalization poses severe challenges to national and global security. It includes trans-border crimes,
such as drug trafficking, money laundering, prostitution, alien smuggling, arms trafficking, and counterfeiting.
➢ Crimes of globalization, or transnational crimes, are crimes that are committed across national borders. Since the
fall of the Soviet Union and the collapse of communism in its neighboring countries, trade has expanded globally.
With it, the crime that so often accompanies large flows of money.
➢ Transnational criminals have been one of the biggest beneficiaries of globalization." Globalization
facilitates international trade and increases the difficulty of regulating global trade; traffickers and
smugglers have exploited this. This has allowed illicit actors to launder the proceeds of crime more easily

LESSON 6: GLOBAL ECONOMY AND MARKET INTEGRATION

MARKET INTEGRATION
➢ Market integration refers to how easily two or more markets can trade with each other. Foreign trade helps the
Integration of markets because it reduces barriers to trade and increases fluidity between markets. *For
example, Facebook buys out WhatsApp and Instagram.
➢ Reasons for market integration:
✓ To remove transaction costs
✓ Foster competition
✓ Provide better signals for optimal generation and consumption decisions.
✓ Improve the security of supply
 ➢ Market integration occurs when prices among different locations or related goods follow similar patterns
over a long period. Groups of goods often move proportionally to each other. When this relation is
apparent among different markets, it is said that the markets are integrated. Thus, market integration is an
indicator that explains how much different markets are related to each other. A marketer plays the role of
an integrator in the sense that he collects feedback or vital inputs from other channel members and consumers
and provides product solutions to customers by coordinating multiple organization functions.
➢ Examples of Market Integration:
1. Establish wholesaling facilities by food retailers and set up another plant by a milk processor.
2. Facebook buyout of Instagram and WhatsApp to have a bigger market for image sharing.

TYPES OF MARKET INTEGRATION

1. HORIZONTAL INTEGRATION
➢ This occurs when a firm or agency gains control of other firms or agencies performing similar marketing
functions at the same level in the marketing sequence
➢ In this type of Integration, some marketing agencies combine to form a union to reduce their effective number
and actual competition in the market.
➢ It is advantageous for the members who join the group.
Effects of Horizontal Integration
➢ Buying out a competitor in a time-bound way to reduce competition.
➢ Gaining a larger share of the market and higher profits.
➢ Attaining economies of scale.
➢ Specializing in the trade.

Advantages of Horizontal Integration

a. Lower costs.
b. Higher efficiency.
c. Increased differentiation.
d. Increased market power.
e. Reduced competition.
f. Access to new markets.
g. Economies of scale.
h. Economics of scope.
i. International trade. Examples: Companies using horizontal Integration: Hp, Compaq, Facebook, WhatsApp,
Google, Motorola

2. VERTICAL INTEGRATION
➢ This occurs when a firm performs more than one activity in the sequence of the marketing process. Example:
San Miguel Purefoods says “from farm to platter goodies”; Apple
➢ It links two or more functions in the marketing process within a single firm or under single ownership.
➢ This type of Integration makes it possible to exercise control over the product's quality and quantity from the
beginning of the production process until the product is ready for the consumer.
➢ It reduces the number of mediators in the marketing channel. Example Meat industry buys all the functioning
plants needed for running this meat industry.

3. FORWARD INTEGRATION
➢ Suppose a firm assumes another function of marketing that is closer to the consumption function. In that
case, it is a case of forwarding Integration. Example: wholesaler considering the role of retailing

4. BACKWARD INTEGRATION
➢ This involves ownership or a combination of sources of supply—for example: when a processing firm assumes
the function of assembling/purchasing the product from the villages.

5. BALANCED VERTICAL INTEGRATION

➢ The third type of vertical Integration combines the backward and the forward vertical Integration.
Advantages of Vertical Integration
a. It allows you to invest in highly specialized assets.
b. It gives you more control over your business.
c. It allows for positive differentiation.
d. It requires lower costs of the transaction.
e. It offers more cost control.
f. It ensures a high level of certainty when it comes to quality.
g. It provides more competitive advantages.
Effects of Vertical Integration
✓ More profits by taking up additional functions
✓ Risk reduction through improved market co-ordination
✓ Improvement in bargaining power and the prospects of influencing prices
✓ Lowering costs through achieving operational efficiency

6. CONGLOMERATION
➢ A combination of agencies or activities not directly related to each other may be termed a conglomeration
when it operates under unified management.
➢ Examples: SM Group of Companies, Lucio Tan Group of Companies, Gokongwei Group of Companies,
PHINMA Group of Companies, Manuel Villar Group of Companies
Effects of Conglomeration
✓ Risk reduction through diversification
✓ Acquisition of financial leverage
✓ Empire–building urge.

EFFECTS OF MARKET INTEGRATION

➢ Both producers and consumers gained, but welfare gains were inversely related to the size of the country
and positively to the level of openness to trade. We infer that welfare gains from international market
integration were equivalent to substantial shares of economic growth in the 'long 19th century.