Module 3

Assesment

1. In your own words, what is economic globalization? Present an argument that

economic globalization is not new but a phenomenon which has been in
existing since time immemorial.
Answer:Economic globalization refers to the increasing interconnection of
world economies through the trade of goods and services, capital flows, and
the spread of technology. This phenomenon is not new—it dates back to
ancient trade routes like the Silk Road and expanded significantly during the
Age of Exploration when global trade networks were first established.

2. Explain the actors that facilitate economic globalization.

Answer:Actors facilitating economic globalization include multinational
corporations that set up operations in multiple countries; governments that
negotiate trade agreements to reduce barriers and enhance cooperation;
international organizations like the WTO, IMF, and World Bank that establish
and enforce trade rules; financial institutions that move capital
internationally; technology providers that enhance global communication and
operations; and consumers whose demand for international products drives
companies to operate globally.

3.Explain the modern world system and provide a comparison with the old
world system. Which system do you think is more convenient and harmful to
the world’s growing population? Why?
Answer:The modern world system, characterized by global capitalism, is
marked by economic interdependence among industrialized core countries,
developing semi-peripheries, and underdeveloped peripheries. This contrasts
with the old world system, which was more localized, with economies based
on feudalism or agrarian structures and limited long-distance trade. The
modern system facilitates convenience through efficiencies in global trade,
technology, and international cooperation, enhancing economic growth and
living standards. However, it also poses significant risks, including
environmental degradation, exacerbated income inequalities, cultural
erosion, and increased dependency of peripheral countries on core nations.
While providing considerable advancements, the modern global system’s
sustainability and impact on equitable growth present ongoing challenges.

4.Do you think that the Philippines is being harmed as other countries transfer
their activities to us also known as outsourcing? Give a justification for your answer.
 Answer: Outsourcing to the Philippines has both positive and negative
impacts. On the positive side, outsourcing has been a significant contributor
to the Philippines’ economic growth, creating millions of jobs, especially in
the BPO (Business Process Outsourcing) sector. This has led to increased
income levels and has helped develop the country’s human capital by
providing training and skill development in high-demand industries. On the
negative side, outsourcing can make the economy overly dependent on
foreign companies and external markets, which can be volatile. Additionally,
it often involves relatively low-value-added jobs that may not significantly
advance the country’s broader economic capabilities. Therefore, while
outsourcing has brought economic benefits to the Philippines, it also poses
challenges that need careful management to avoid long-term harm.

5.How do you assess globalization in the sphere of production?

Answer: Globalization in the sphere of production refers to the way production of

goods and services is increasingly located across different countries, emphasizing
efficiency and cost reduction. This trend is driven by the desire for companies to
leverage lower labor costs, access new markets, and optimize supply chains, often
resulting in manufacturing hubs in developing countries. Global production has
enabled economies of scale and made products more affordable worldwide.
However, it also raises concerns such as labor exploitation, environmental
degradation, and a race to the bottom in terms of wages and working conditions.
Assessing globalization from this perspective highlights its dual nature: while it
fosters economic growth and global integration, it also necessitates robust
international agreements and national policies to mitigate its adverse effects and
ensure that the benefits are widely shared.

6.Does the position of US and China as giants in the economic chain threaten the
status of less developed countries in the global market? In the case of the
Philippines,provide specific examples and explain how is the country’s local market
(example, our local producers) being affected?

Answer:The economic dominance of the United States and China presents both
opportunities and challenges for less developed countries like the Philippines. Local
industries face stiff competition from cheaper imports, particularly in agriculture and
manufacturing, potentially undermining local producers. The significant influence of
these economic giants also impacts global economic trends, affecting everything
from investment flows to remittance income in the Philippines. Additionally, the
country’s integration into U.S. and China-led supply chains means that external
disruptions can have immediate local effects, such as reduced orders for Filipino
manufacturers. Moreover, substantial foreign investments, especially from China in
infrastructure, pose risks of debt dependency and economic sovereignty. Overall,
while the economic activities of the U.S. and China bring certain benefits to the
Philippines, they also require careful management to protect local industries and
maintain economic independence.
Enhancement Activity/To Do

1. Identify the origin, production, distribution and consumption of the following

poducts.
a. Starbucks coffee
Origin: Coffee beans primarily sourced from Latin America, Africa, and
Asia.
Production: Roasting and packaging facilities primarily in the United
States and the Netherlands.
Distribution: Global distribution network delivering to Starbucks outlets
worldwide.
Consumption: Consumed globally, with a significant presence in over
80 countries.

b. Lamborghini sports car

Origin: Founded in Italy, with most car components sourced from Europe.
Production: Manufactured almost exclusively in Sant’Agata Bolognese, Italy.
Distribution: Sold worldwide through exclusive dealerships.
Consumption: Primarily consumed by wealthy individuals around the globe.

c. iPhone

Origin: Designed by Apple in California, USA.

Production: Components sourced globally (e.g., screens from Japan and South
Korea, chips from the USA and Taiwan) and assembled mainly in China.

Distribution: Distributed globally through Apple stores, authorized resellers, and

online platforms.

Consumption: Widely consumed worldwide across diverse demographics.

d. Laptop
Origin: Designed by various companies in countries like the USA, Japan, and
China.
Production: Components are sourced internationally; assembly is typically
done in China, Taiwan, or Vietnam.
Distribution: Sold worldwide through electronics retailers, online stores, and
direct sales from manufacturer.
Consumption: Used globally by consumers for personal, educational, and
professional purposes.

e. McDonald’s BigMac Burger

 Origin: Originally created in the USA.Production: Ingredients are locally
sourced in each country to ensure freshness; burgers are assembled in
individual McDonald’s outlets.
Distribution: Distributed through McDonald’s restaurants worldwide.
Consumption: Consumed globally, available in most countries where
McDonald’s operates.

f. Rolex wristwatch
Origin: Founded and headquartered in Switzerland.
Production: Manufactured in Switzerland with in-house movement and mostly
proprietary components.
Distribution: Distributed globally through authorized Rolex dealers and
boutiques.
Consumption: Worn worldwide, often regarded as a status symbol.

g. Nike shoes

Origin: Designed in the United States.

Production: Manufactured primarily in Vietnam, China, and Indonesia using

materials sourced globally.

Distribution: Distributed worldwide through Nike stores, authorized retailers, and

online sales.

Consumption: Popular among consumers globally, spanning all ages and

demographics.

h. Toyota
Origin: Founded in Japan with a strong presence in global markets.
Production: Vehicles are manufactured in Japan and in numerous
overseas factories (e.g., USA, UK, Australia, Canada, and other
countries).
Distribution: Distributed through a network of company-owned and
independent dealerships worldwide.
Consumption: Toyota vehicles are widely consumed across the globe,
known for their reliability and value.

2. List down the main ingredients or raw material in manufacturing the chose
product.Identify the corresponding country from which each ingredient or raw
material came from.
Answer: The iPhone is assembled from diverse global materials: its aluminum
casing comes primarily from Australian bauxite, while the silicon for chips and
semiconductors is sourced from China and the U.S. The device’s batteries
 utilize lithium, predominantly extracted from Chile and Argentina. Key metals
for circuitry, such as gold, silver, and tantalum, are obtained from South
Africa, China, Mexico, Peru, and the Democratic Republic of Congo. Lastly, the
iPhone’s glass display is made using high-quality silica sand, extensively
available in the U.S. and China, underlining the intricate international supply
chain involved in creating this iconic device.

3. Cite the kinds of technology that made the creation of the product
possible.Consider communications and transportation.
Answer:The creation of the iPhone relies heavily on advanced technologies.
Communications technologies like internet and cloud computing enable
global teams to share data and collaborate effectively, while mobile
communications facilitate real-time project management. In terms of
transportation, container shipping is crucial for moving parts and products
efficiently across continents, and air freight is used for rapid delivery of
critical components and finished devices to meet market demands swiftly.
Together, these technologies streamline the complex global manufacturing
and distribution processes essential to the iPhone’s production.

4. Write a short reflection paper as what you have learned from the lessons
introduced in this module.
Answer:The study of the iPhone’s production highlights the complexities of
globalization in manufacturing. Sourcing materials like Lithium from South
America and Aluminum from Australia, the supply chain maximizes regional
strengths to ensure quality and cost efficiency. Technological advancements,
particularly in communications and transport, facilitate real-time global
collaboration and efficient just-in-time manufacturing, overcoming
geographical barriers. However, while globalization enhances efficiency and
innovation, it also poses challenges like supply chain disruptions and
environmental impacts. This exploration into the iPhone’s creation not only
deepens appreciation for the technology we use daily but also emphasizes
the need for mindful consumption and sustainable practices in the tech
industry.