Combined PDF File For Contemporary World 1

DR. IMELDA C.
NERY
First Edition
DR. IMELDA C. NERY
First Edition
Published & Distributed by:
ñaque City
Tel. #: 260-0037
Email: JTCAPublishing@yahoo.com
Contemporary World
Published & Distributed by:
ñaque City
Tel. #: 260-0037
Email: JTCAPublishing@yahoo.com
All praises and thanks to the One Above for His never-ending blessings and guidance
to complete this work.
To family, especially to Nanay Betty, Daddy Rey, Rain and RayMel, and loved ones for
your continuous encouragement and motivation.
To colleagues and friends in the academe for your dynamic support in this undertaking.
To the many authors, experts, foreign and national scholars and researchers, whose
works, which have been cited in this very first publication, are the foundations of this book.
Author
Contemporary World is a three-unit course in the General Education Curriculum mandated by
the Commission on Higher Education (CHED) as part of the paradigm shift in the Philippine
educational system in the context of the K to 12 curriculum.
In order to uphold the mission of the Philippine Higher Education to produce competent,
humane and moral professionals capable of addressing the demands of the 21st Century, the need
to learn continuously throughout life has been viewed essential. This course introduces students to
the contemporary world by examining the multifaceted and undeniable phenomenon of globalization.
Using the various disciplines of the social sciences, it examines the economic, social, political,
technological, and other transformations that have created an increasing awareness of the
interconnectedness of peoples and places around the globe. The course intends to provide an
overview of the various debates in global governance, development, and sustainability. Beyond
exposing the students to the world outside the Philippines, it seeks to inculcate a sense of global
citizenship and global ethical responsibility.
This book contains six chapters, each one addressing an essential facet of the global world.
The first chapter seeks to present the various structures of globalization ranging from the global b
economy to global politics to facilitate the development of the basic understanding of what
globalization truly is based on different perspectives. This part enables the students to
demonstrate an understanding and appreciation of world integration in general, including the
significant roles of institutions related to it. The second chapter explores the World of Regions,
which is divided into the north and the south, also focusing on Asian regionalism. The third chapter
enables the students to explore the world of ideas, specifically about global media cultures and the
globalization of religion. The fourth chapter intends to present global population and mobility to
students to better understand the global city, global demography, and global migration. The final
chapter will allow students to make more meaning from globalization, utilizing the contemporary
world concepts to promote advocacies and other programs towards a sustainable world. It also
aims to direct the students to develop the attitudes and values of a global citizen capable of
contributing something worthy for the nation’s advancement.
This book provides a more practical application of the knowledge, skills and values related to
globalization as discussed in this course to aid the students to become better individuals capable of
creating change for the betterment of the future.
Using the Outcomes-Based Approach, each lesson is comprised of start-up activities that
motivate the students to activate their capabilities to engage in the lesson, leading to an overview
and discussion proper to empower them with the necessary knowledge and skills about the nature of
globalization. Each lesson ends with worksheets that strive to provide opportunities for students
to evaluate and apply their understanding of the concepts learned, reflect on their insights and
create a personal stance about the effects of globalization.
Author
Table of Contents
An Introduction to the Study of Globalization
UNIT 1: The Structures of Globalization
Lesson 1 The Global Economy ..……………………………………………………………………………………………………...…………………… 22
Lesson 2 Market Integration .….…………………………………….………………………………………………………………………………….. 41
Lesson 3 The Global Interstate System and Contemporary Global Governance…………... 71
UNIT 2: A World of Regions
Lesson 4 Global Divides: The North and the South ………………………………...……………………………..…………… 96
Lesson 5 Asian Regionalism ……………………………………………………………..………………………………………………………………… 111
UNIT 3: A World of Ideas
Lesson 6 Global Media Cultures…………………………………………………………..…………………………………………………………….. 126
Lesson 7 The Globalization of Religion ……………………………………………..………………………………………………………… 135
UNIT 4: Global Population and Mobility
Lesson 8 Global Cities …..………………………………………………………………....……………………………………………………………………. 146
Lesson 9 Global Demography …………………………………………………………….…………………………..…………………………………. 157
Lesson 10 Global Migration ……………………………………………………………………………………….………………………………………..…. 166
UNIT 5: Towards Sustainable Development and Global Citizenship
Lesson 11 Sustainable Development and Global Citizenship …………………………………………………………… 172

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LEARNING OUTCOMES:
At the end of the course, the students will be able to:
1. Raise fundamental questions about globalization.
2. Develop an understanding of the links that people have beyond

local and national boundaries.
3. Discuss the underlying approaches to the study of

globalization.
4. Create a working definition of globalization.
Contemporary World An Introduction to the Study of Globalization

AN INTRODUCTION
TO THE STUDY OF GLOBALIZATION
Lesson Objectives:
a. Raise fundamental questions about globalization.
b. Develop an understanding on the links that people have beyond local and
national boundaries.
c. Give various definitions of globalization.
d. Identify and explain the underlying approaches the study of globalization.
e. Generate a working definition of globalization for the course.
ACTIVATE
Look in your bag, at the tags on your clothing last weekend, at your cell phone, at
your accessories, etc. Write down five (5) objects that you have with you and try to
identify where each object was made. Chart your discoveries and answer the
questions that follow below:
OBJECT Maker Who profits from these Who suffers or

(country/region) objects? is exploited?
1. What ideas do you have about globalization in relation to your discoveries above?
____________________________________________________________________________
____________________________________________________________________________
2. Have you experienced globalization? Why do you say so?
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
3. In your own understanding, define globalization.
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________

EMPOWER
On days that you do not have to wear your school uniform, you wake up and put on a set of
clothing that probably read 'made in China' on the inside tag. You then went to your bedside closet
to get your iPhone (or Samsung) cellphone and off to your garage to get in a car that had parts
that were manufactured in all parts of the world. You drove that car to a ‘membership only’
grocery store to buy grapes that were grown in Chile, sugar from Jamaica, and curry from India.
You did all of this because of globalization. In this lesson, you will learn the various meanings of
globalization, some of its positive and negative effects, and some real examples of globalization in
the 21st century.
The discussion of this lesson over the next few days will allow us to explore how we are
connected to each other all over the world. The ways that we are connected to the people who
make our products (in China, Taiwan, U.S., etc.) is NOT NEW. The reality is that, the world has been
connected for a long time.
?
A lot has taken place in the lives of human beings over the last century. Among these
changes, and perhaps the most important one, is the presence of ’globalization.’ The question of
what it is, is probably an easy one to answer but as it appeared, the term ’globalization’ has
several competing meanings, sometimes contradicting each other since it encompasses a multiple of
processes involving one’s cultural, economic and political systems, which directly affect the
structures of the society. How is this so? Let’s talk about real-life examples of globalization.
Some of you may not be a fan of Filipino teleseryes but did you know that Pinoy TV Series
have become popular not just in our country but among our ASEAN neighbors as well? The first
release of the love story entitled Pangako Sa’Yo was in 2000, which became a hit in countries like
Malaysia and Singapore, and made Jericho Rosales and Kristine Hermosa a household name. In
fact, Pangako Sa’Yo was adapted into a show called, ‘The Promise’ in Cambodia which aired from
2013 to 2014. Later on, this TV series also became popular in Africa and Latin America. In 2015,
this show was revived with Daniel Padilla and Kathryn Bernardo playing the leads and it also became
a hit in Indonesia and Vietnam.
If you have been to Malaysia, you certainly have found an assortment of cuisines such as
Chinese, Indian, and Malay. This was a result of how the British reorganized the Malaysian society
during the colonial period — not much has been changed to the Malays’ way of life but the Brits
have brought in laborers from China to work in the rubber plantations and tin mines, and Indians to
serve as the potential professionals who belong in the middle class.
Go to Singapore and you will discover that the food is no different from Malaysia because of
the fact that it was once part of the British colony of Malay and the post-war independent
Federation of Malaysia. It was only in August 1965 that it separated from the Federation and
became a nation-state.
Who wouldn’t know Starbucks? Even kids these days are so into their Frappuccino beverages
and drink ware including mugs and tumblers. A working adult does not only go to this famous coffee
shop but tries out any nearby café that serves “flat whites” (or simply an espresso drink akin to a
latte, usually served in cafés in Australia and New Zealand).
The use of Facebook and other social media are so famed that it has become an essential

part of almost everybody’s life — you have certainly posted a selfie (or a photo of your OOTD or
your food at lunch), greeted a friend on a special occasion, liked other people’s photos, described
the movie you just watched, or stayed in touch with people whom you have not seen or talked to in
years.
These and many other examples lead us to appreciate the meaning and impact of
globalization: the spread of Filipino TV in other countries suggests how quickly popular culture has
boomed all over Asia; the spread of different cuisines in a specific country as a result of history;
the influx of a special Frappuccino and latte as part of an individual’s daily life; and the use of
Facebook as a global social networking site that provides immediate communication across
continents.
What, then, is globalization and what does it stand for in our contemporary world?
Globalization has connotations pertaining to progress or development, and sometimes,
integration. Sociologists Martin Albrow and Elizabeth King (1990) define globalization as "all those
processes by which the people of the world are incorporated into a single world society." Anthony
Giddens (1991), in The Consequences of Modernity, writes: "Globalization can thus be defined as 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." For Roland Robertson
(1992), Professor of Sociology at the University of Aberdeen and an early writer in the field,
globalization is “the compression of the world and the intensification of the consciousness of the
world as a whole." David Held and his co-writers describe globalization as “the transformation in the
spatial organization of social relations and transactions—assessed in terms of their extensity,
intensity, velocity and impact—generating transcontinental or inter-regional flows (Global
Transformations, 1999). Paul James (2005) defines globalization as “the extension of social relations
through changing world-time. Lechner and Boli (2012) define globalization as more people across
large distances becoming connected in more and different ways. By the same token, the Suny Levin
Institute describes globalization as “a process of interaction and integration among the people,
companies, and governments of different nations, a process driven by international
trade and investment and aided by information technology. This process has effects on
the environment, on culture, on political systems, on economic development and prosperity, and
on human physical well-being in societies around the world.”
Alternatively, others refer to globalization as something related to regression, colonialism
and destabilization. Marin Khor (1990), director of the NGO Third World Network, once regarded
globalization as colonization. On the other hand, Swedish journalist Thomas Larsson (2001) states
that globalization is “the process of world shrinkage, of distances getting shorter, things moving
closer” pertaining to “the increasing ease with which somebody on one side of the world can
interact, to mutual benefit, with somebody on the other side of the world.”
The best scholarly definition of globalization is provided by Manfred Steger (2009) who
describes globalization as “a variety of accelerating economic, political, cultural, ideological and
environmental processes that are rapidly altering our experience of the world.” He described the
process as “the expansion and intensification of social relations and consciousness across world-
time and world-space.”
Let’s discuss the details of Steger’s definition.
“Expansion” means both the creation of new social networks and the multiplication of existing
connections that cut across traditional political, economic, cultural and geographic boundaries. Note
that these connections occur at different levels — while social media creates new connections

between people all over the world, international organizations such as NGOs (non-governmental
organizations) are networks that connect a more specific group of people (like social workers and
activists) from all corners of the world.
“Intensification” refers to the expansion, stretching, and acceleration of these networks.
Hence, global connections are not only growing but are also becoming more closely-knit where
financial integration and trading are made possible.
When Steger (2009) pointed out that globalization relates to the way people perceive time
and space, he meant that people begin to develop the feeling that the world is now becoming
smaller and that distance has shrunken from a million miles to a just “a click away.” One can simply
send an e-mail or text message to a friend who lives in another country and get a response
instantaneously, which makes distance and time less of a problem. With the kind of technology that
exists at this time and age, people from all over the world have a greater sense of what is
happening in other places as Cable TV and internet have made possible the exposure of news from
different places.
In truth, globalization is a complex concept that cannot be defined within a set time frame.
It is also not a process that can be defined clearly without any biases or ambiguity. It cannot even
be explained with certainty and be applicable to all people and in all situations. Indeed, globalization
may be difficult to assess since it is a global process that embodies everything.
It is for this reason that some scholars do away with talking about globalization as one
whole process. Instead, they prefer to discuss the diverse and overlapping dimensions of
globalization, which will be discussed in great detail in the next lessons. This “multiple globalizations”
was termed by anthropologist, Arjun Appadurai (in Heyman & Campbell, 2009) as the 5 ‘scapes”
namely: (1) ethnoscapes (the migration of people across cultures and borders); (2) mediascpaes (the
use of media that shapes the way we understand our imagined world); (3) technoscapes (cultural
interactions due to the promotion of technology); (4) financescapes (the flux of capital across
borders); and (5) ideoscapes (the global flow of ideology). According to Appadurai, it is through
these ‘scapes’ that one can better understand globalization using various lenses that focus on a
particular kind of globalization. This way, each expanding and intensifying network and connection can
be treated as a window to realizing the distinct phenomenon of globalization in the contemporary
world.
Given that there is no generally accepted definition for globalization, Steger (2013) describes
it as a process, a condition or an ideology.
Globalization as a process relates to changes in technology as well as in many aspects of
human existence ranging from cultural, economic and political systems that have brought a
multi-dimensional set of social processes that escalate deepening connections, worldwide
interdependence and social exchanges among people from all different parts of the world.
Globalization as a condition is about the creation of linkages between people located at
different corners of the planet characterized by cultural, economic, and political interconnections
and global flows, which make any kind of barrier (be it political or economic) insignificant. Remember
how the international community supported Yolanda typhoon victims? Social media posts and news
reports have moved people from across the world to express and send their concern over the
plight of the victims where tons of material and financial help were given to Filipinos. This is an
example of globalization as a process and condition.

Globalization as an ideology explains that globalization exists in people’s minds because of a
set of coherent and complementary ideas and beliefs about the global order as defined by six (6)
core claims:
1. Globalization is about the liberalization and global integration of markets
Ever-heard of Adam Smith’s “Invisible Hand”? This claim asserts that globalization is a result
of the integration of markets as part of the ‘free trade.’ As published in the Business Week article
in the late 90s, “Globalization is about the triumph of markets over governments.” Proponents and
opponents of globalization agree that the driving force today is markets, inducing the role of
government. The same claim is made over and over again in Thomas Friedman’s best-selling book on
globalization, The Lexus and the Olive Tree, which provide the ‘official narrative of globalization’ in
the US today. As stated in his narrative following the ‘truth’ about globalization, “The driving idea
behind globalization is free-market capitalism — the more you let market forces rule and the more
you open your economy to free trade and competition, the more efficient your economy will be.
Globalization means the spread of free-market capitalism to virtually every country in the world.”
In other words, globalist Friedman strives to create the impression that globalization
does represent primarily an economic phenomenon. Adjacent to the concepts of liberalization and
integration, the liberation of markets from state control is a good thing. As Joan Spiro (US
Undersecretary of the State for Economic, Business, and Agricultural Affairs in the Clinton
Administration) put it, “One role [of government] is to get out of the way — to remove barriers to
the free flow of goods, services and capital” (in Steger, 2009).
2. Globalization is inevitable and irreversible.

Manuel Villar, the former Philippines Speaker of the House of Representatives, insisted that,
“We cannot simply wish away the process of globalization. It is a reality of a modern world. The
process is irreversible.” Former President Clinton on his speech on US Foreign Policy told the
audience that: “Today we must embrace the inexorable logic of globalization – that everything from
the strength of our economy to the safety of our cities, to the health of our people, depends on
events not only within our borders, but half way a world away.” Frederick W. Smith, Chairman and
CEO of FedEx Corporation proclaimed that, “Globalization is inexorable and it is
accelerating… Globalization is happening, it’s going to happen. It does not matter whether you like it
or not, it’s happening, it’s going to happen” (in Steger, 2009).
3. Nobody is in-charge of Globalization.

The third claim is founded on the classical liberal concept of the ‘self-regulating market.’ The
connection between ‘globalization-market’ and the adjoining idea of ’leaderlessness’ is plain and
simple. As Steger (2009) puts it, “if the undisturbed workings of the market indeed preordain a
certain course of history, then globalization does not reflect the arbitrary agenda of a particular
social class or group. In other words, globalists are not ‘in charge’ in the sense of imposing their
own political agenda on people. Rather, they merely carry out the unalterable imperatives of a
transcendental force much larger than narrow partisan interests.
Robert Hormats, Vice Chairman of Goldman Sachs, asserted that: “The great beauty of
globalization is that no one is in control. The great beauty of globalization is that it is not
controlled by any individual, any government, any institution.” In fact, the meetings, the groups, the
foundations, that all work on spreading neoliberal principles and new world order principles have
been deeply rooted in ancient history.

4. Globalization benefits everyone (in the long run)
The characteristics of globalization are found to have led to expansion of wealth and
prosperity in the world. For those who have embraced globalization, opportunities for growth and
progress have opened up. With free trade and free markets, societies may be lifted out of
poverty while individual nations work hand in hand with their respective regions and the entire global
trading community to build a world that trades in freedom and therefore grow in success (in
Steger, 2009).
5. Globalization furthers the spread of democracy in the world.

There exists a similarity between the terms freedom, free markets, free trade and
democracy. Francis Fukuyama asserts that there is a correlation between a country’s economic
development and successful democracy (which actually resulted from globalization). This democracy
leads to the creation of civil societies with a powerful middle class that will facilitate democracy (in
Steger, 2009).
6. Globalization requires a global war on terror.

This last claim combines the idea of economic globalization with openly militaristic and
nationalistic ideas associated with the American-led global War on Terror. Before the September 11
attack, the economic globalization was dominated mainly by Western Europe, US and Japan. These
core states were challenged by Al Qaeda’s Bin Laden during the 9-11 attack. Globalists believe that
an aggressive, militaristic US foreign policy will protect the gains of globalization. (in Steger, 2009).
Again, globalization is not so easy to define. The flourishing literature about globalization has
resulted in several approaches or theories that provide diverse ways of interpreting the said social
phenomenon. While there exists many contradicting assumptions about it, it is best to discuss the
major theories to give us a clear view of globalization.
The World Systems Theory was developed by sociologist Immanuel Wallerstein. It is an

approach to world history and social change that suggests that there is a world economic system in
which some countries benefit while others are exploited. Just like we cannot understand an
individual's behavior without reference to their surroundings, experiences, and culture, a nation's
economic system cannot be understood without reference to the world system of which they are a
part of.
The main characteristics of this theory are as follows:
 The world systems theory is established on a three-level hierarchy consisting of core,
periphery, and semi-periphery areas.
 The core countries dominate and exploit the peripheral countries for labor and raw materials.
 The peripheral countries are dependent on core countries for capital.
 The semi-peripheral countries share characteristics of both core and peripheral countries.
 This theory emphasizes the social structure of global inequality.

According to the World Systems
Theory, the world is divided into three types
of countries or areas: core, periphery, and
semi-periphery.
Core Countries
These are dominant capitalist
countries that exploit peripheral countries
for labor and raw materials. They are
strong in military power and not dependent
on any one state or country. They serve the
interests of the economically powerful. They
are focused on higher skill and capital-
intensive production. Core countries are
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powerful, and this power allows them to pay
lower prices for raw goods and exploit cheap labor, which constantly reinforces the unequal status
between core and peripheral countries.
The first core region was located in northwestern Europe and made up of England, France,
and Holland. Today, the United States is an example of a core country. The U.S. has large amounts
of capital, and its labor forces are relatively well paid.
Periphery Countries
These countries fall on the other end of the economic scale. These countries lack a strong
central government and may be controlled by other states. These countries export raw materials to
the core countries, and they are dependent on core countries for capital and have underdeveloped
industry. These countries also have low-skill, labor-intensive production, or, in other words, cheap
labor. Periphery countries are commonly also referred to as third-world countries.
Eastern Europe and Latin America were the first peripheral zones. An example from today is
Cape Verde, a chain of islands off the west coast of Africa. Foreign investors promote the
extraction of raw materials and the production of cash crops, which are all exported to core
countries.
Semi-Periphery Countries
These countries fall in the middle of the economic spectrum. These countries share
characteristics of both core and periphery countries. These are core regions in decline or periphery
regions attempting to improve their economic position. These countries are sometimes exploited by
core countries, but they also may exploit periphery countries themselves. For example, India is
largely dependent on core countries for capital, but India has a growing technology industry and an
emerging consumer market.
It is important to note that there are countries and areas that exist outside of the world
systems theory. These areas are referred to as external areas.
External areas maintain their own economic systems and are, therefore, not part of the
world systems as described in this lesson. These areas have their own labor market, grow their own

crops, and produce goods for their internal market. They have a regulated economy without outside
influence. Russia is an example of an external market.
Shifting World System

Note that the World Systems Theory emphasizes global economic inequality and suggests that
the world economic system is ever changing. As countries build their industries and capital,
economic statuses shift. The world system originated in the 1500s with the emergence of the
modern world and has seen a shift in dominance from Europe to the United Kingdom to the United
States of America. This shift was influenced by geographic expansion, recessions and growth in
various economic markets, a shift in power (influenced by wars and military efforts), and transition
from the pre-industrial era to higher-level industrial production.
Global capitalism is a qualitatively new stage in the evolution of capitalism characterized by

the rise of transnational capital, a transnational capitalist class, and a transnational state. Global
capitalism is capitalism that rises above national borders and is known as the fourth period of
capitalism in recognition of the three periods that came before it. To understand how capitalism
developed into the global system that we have today, a short discussion of its history is provided
below to determine how capitalism has developed into the global system we have today:
1st Period: Mercantile Capitalism (14th century)

The first epoch was popularized by European traders who aimed to increase their profits by
looking outside of local markets. Merchants during this time started traveling to distant places
where they could acquire resources at a cheap price and trade with other nations. Banks and
governments financed these ventures in return for shares in the mercantile company and its profits.
The early American colonies practiced mercantile capitalism, but colonists were only permitted to
trade with their mother country, such as France or Great Britain.
2nd Period: Classical Capitalism

The second epoch closely resembles the system that we recognize today, where countries
began to organize on free market capitalist principles, including the United States. Economists like
Adam Smith debated the role of the government in the capitalist economy and concluded that
economic value came when the marketplace regulated itself through self-interest, competition, and
supply and demand without government intervention. This is known as laissez-faire economics. The
theory is that each person, by looking out for himself, helps to ensure the best outcome for all.
A major component of classical capitalism was the launch of capital markets that set prices
for goods, currency, stocks and financial instruments according to the laws of supply and demand.
Capital markets allowed corporations to raise funds to expand.
3rd Period: Keynesian Capitalism

The third epoch was launched with the dominance of laissez-faire ideologies and the belief
that governments should take a hands-off approach to capitalism. But following the stock market
crash of 1929, questions were raised about free market ideology and whether the market could
self-regulate. Several nations, including the U.S., moved toward government intervention as a

way of regulating the excesses of monopolies and maintaining a level playing field for smaller
businesses. Policies were introduced to protect national industries from overseas competition and to
provide for those who could not sell their labor and were disenfranchised by capitalism, such as the
elderly, sick and disabled.
4th Period: Global Capitalism

This fourth epoch of capitalism differs from the other epochs in one key way: The system,
once organized and regulated within nations to protect them, now transcends national borders.
Basically, it is based on the same ideology as classical capitalism but the holders of the means of
production extend their reach to everywhere around the globe, monetizing cheap labor and
resources, and profiting as best they can. Integrated globally, this fourth epoch is backed by
international policies that support the free movement and trade of goods. This massively increases
the flexibility that corporations have to choose where and how they operate.
The Characteristics of Global Capitalism:

1. Production takes place on the global stage.
Companies can produce goods in a variety of places around the world. For example, a
motorcycle manufacturer might make frames in China and engine parts in India, then assemble the
finished item in the U.S. In short, companies can choose locations that hold cheap resources and
minimize the impact of import and export tariffs. Thus, they earn more income. Global corporations
like Walmart are an extreme example of globalized capitalism when they source and distribute
products from suppliers all over the world without producing a single item themselves.
2. Labor can be sourced around the world.
As companies expand their production across borders, they do not make use of the labor
available in their home country. Instead, they can now draw from an entire globe's worth of labor
and locate production wherever workers are cheaper or more highly skilled. This circumvents
national government intervention like labor laws and puts downward pressure on the wages of
unskilled workers.
3. The financial system operates globally.

Collecting taxes becomes very difficult when companies generate and hold wealth around the
world since it is now possible for global corporations to develop complex organizational structures
and spread wealth across multiple jurisdictions to minimize their liabilities to pay taxes. This way,
companies can have great power to avoid corporate taxes on accumulated wealth.
4. Power relations are transnational.

Transnational capitalists have the power to shape the policies of trade, finance and
production at a global level. These policies may trickle down to national and state governments.
Hence, companies have an expanded influence in the society as a result of globalization—this gives
them great power to impact people’s lives all over the world.
5. Global system of governance.

Global capitalism requires a new system of transnational governance. Core institutions such
as the World Trade Organization, the United Nations, the World Economic Forum, the International
Monetary Fund, the World Bank and the G20 make the rules and adjudicate global trade, setting an
agenda for global capitalism that nations must comply with if they wish to participate in the system.

Information and technology are all around us. How much time do you spend on your phone or
your computer? Have you noticed how quickly you can communicate with people across the globe?
While we might take these things for granted today, they are part of a profound shift in the way
that society, culture, and the economy operate. This is known as the a major shift in the society
called information society, whereby the circulation and production of information is key in social and
economic activity. Things like Internet Communication Technologies (ICTs), such as the internet, cell
phones, and wireless networks, are key to the functioning of our society.
Scholars of the information society have called this a shift from manual labor to mental
labor, in the sense that the primary form of production in the economy has shifted from
goods-based to knowledge-based. In other words, instead of a focus on the production of a
particular good, such as steel, the most important economic activity comes in the form of producing
information, like computer technologies and software. This information replaces material goods as
the most important driving force of economic activity.
Let's talk more about the origins of this term.
One of the earliest uses of the term ‘information society’ can be found in the work of
sociologist Daniel Bell. In the 1970s he wrote a book called The Coming of the Post-Industrial
Society, where he argued that the United States was moving away from an industrial society to a
post-industrial society. An industrial society is when the focus is on the production of goods. In Bell's
argument, the main economic activities of society will be that people produce various types of
knowledge instead of consumer goods.
In more contemporary writing, Manuel Castells is a key figure. The key idea to Castell's
interpretation of the information society is that we are really witnessing a new kind of capitalism,
and as mentioned earlier, it is happening on a global scale. Technology and society are intertwined
in Castell's formulation. Now, core areas of production are organized around what Castells calls
the network society. The network society is characterized by profound shifts in technological
development and innovation. Economies and production within them are now flexible. This has led to a
global economy that is highly informational. One major shift here is the way that internet technology
allows us to work and communicate in real time and at dizzying speeds. For example, Person A’s
office is based in New York City, but this person has clients in Tokyo and Paris. In the information
age, Person A and the co-workers across the globe can communicate almost instantly without ever
leaving their offices.
Characteristics of the Information Society
 Information is a key economic resource in the information society - not that information is
more widespread but it is now crucial to how businesses and the economy function. In this
modern day and age, it is how companies make money, how the economy grows overall, and
information allows us to become more productive and efficient as a society.
 Consumers are key to the information society. Citizens in the information society have
started using information and technology more and more. We consume more information
technologies and we also use information to make choices about everything ranging from
what clothes we want to buy to where we want to live.
 The economy in the information age has a specific infrastructure meant for the circulation
and distribution of information. In other words, the economy is structured in order to
facilitate the circulation of information as a key economic resource.
Contemporary
ContemporaryWorld
World Unit 1: An
An Introduction
Introduction to
to the
the Study
Study of
of Globalization
Globalization
The information society is characterized by the fact that information is now a key economic
resource, citizens use and consume information in nearly every aspect of their lives, and an entire
infrastructure exists to facilitate this in our economy. So next time that you are glued to your
smartphone, remember that it is all part of the information age.
To sum, while most scholars look to transformations in the capitalist economy to account for
globalization, Castells is unique in that he gives just as much attention to changes in the social
organization of communication and information. He argues that globalization is a network of
production, culture, and power that is constantly shaped by advances in technology, which range
from communications technologies to genetic engineering. It is informational flows and codes that
connect various corporations and states to each other and the world. For Castells, new global
forms emerge due to the advancement of the Information Age.
,
David Harvey coined the term “time–space compression”
to refer to the way the acceleration of economic activities
leads to the destruction of spatial barriers and distances
(Routledge, 2016). According to Harvey, it is this compression of
social time–space through economic activity that is the driving
force behind globalization.
In his best-selling The Condition of Postmodernity, he
argues that capital moves at a pace faster than ever before,
as the production, circulation, and exchange of capital happens
at ever-increasing speeds, particularly with the aid of advanced https://www.google.com.ph/imgres?imgurl=http://3.bp.blogspot.com/-OLcBuc3_qrI/Te3xbOiHn 2I/AA
AAAAAAAJc/CCMQYaG5MA4/s1600/images.jpeg&imgrefurl=http://socialaccelerationblogsp
ot.com/2011/06/globalisation-space-time- compression.html&h=219& w=231& tbnid =CX hC5_kE
communication and transportation technologies. The most 5RRWjM:&q=time+space+compression+globalisation&tbnh=160&tbnw=168&usg =AI4_-kRpPq9F5X

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extreme example of this is how a computer on Wall Street can

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transfer millions of dollars in one national currency into another, in response to a slight fluctuation
in the exchange rate and, in the process, gain millions of dollars in profit in a matter of seconds. In
these scenarios (which happen every day on Wall Street and other global financial institutions), the
time it takes to get from production to exchange to profit is almost non-existent.
Transnationalism is a social phenomenon that has grown out of the increased

interconnection between people, and the diminishing economic and social significance of boundaries
among nation states (Levitt, 2001).
As discussed in passing in the previous topic about Global Capitalism, transnationalism as an
economic process involves the reorganization of the production process globally. This is when
various stages of the production of any product can occur in various countries, usually with the aim
of minimizing costs. Multinational corporations could be seen as a form of transnationalism, in that
they seek to minimize costs, and hence maximize profits, by organizing their operations in the most
efficient means possible irrespective of political boundaries.
Individuals, groups, institutions and states interact with each other in a new global space,
combining cultural and political characteristics of national societies with emerging multinational and
multi-level activities. Hence, transnationalism refers to multiple links and interactions linking people
and institutions across the borders of nation-states.

Transnationality and Transnationalism encompass the transformative processes, practices and
developments of corporations taking place not only in the local level but in the global level as well.
Theorists of the global culture emphasize the effects of globalization on one’s culture such as
communication, consumption, ethnicity, religion, tourism, and the like. Obviously, religious differences
and other historical differences continue to shape human values today (Inglehart, 2005). Take for
example the McDonald's restaurants in different countries, which include dishes based on the
traditions of local cuisine and religious requirements in their menu. Given the fact that different
regions have their own dominant cultures, globalization has, in fact, caused the spread and influence
on the surrounding cultures, which can be much stronger than that of ‘Westernization.’ For the
people of Irian Jaya, Indonesianization may be more worrisome than Americanization, as
Japanization may be for Koreans, Indianization for Sri Lankans, and Vietnamization for the
Cambodians’ (Appadurai, 1990). In addition, the spread of western multinational companies
producing consumer goods, means not only (and not that much) cultural globalization, but also an
economic phenomena where there is now a unified organization of production, methods of
management and quality control, as well as uniform standards. This being said, the question about
the depth and nature of the impact of these changes on the culture of individual societies remains
open (Holton, 2011).
The intensified transnational cultural flows have also contributed to the increasing cultural
diversity as a result of increased frequency of contacts between different cultures (including those
that are geographically remote areas) through their frequent encounters in various media. Thus,
globalization leads to blending, interpenetration, and ‘recycling’ of particular elements of different
cultures within various social frameworks.
Rolan Robertson (1992) also perceived this cultural hybridization as an example of the
phenomenon of ‘glocalization’ - a combination of the words “globalization” and “localization,” used
to describe a product or service that is developed and distributed globally, but is also adjusted to
accommodate the user or consumer in the local market. To put it simply, it is the adaptation
of globally marketed products and services into local markets, whereby a global product or service
(which is something that everyone needs and can get use out of), may be tailored to conform with
local laws, customs, or consumer preferences. Products that are 'glocalized' are, by definition, of
much greater interest to the end user (the person who ends up using the product) because while its
localization makes it more specific to an individual, their context, and their needs.
Indeed, these approaches help us understand the concept of globalization. However, it is

important to note that globalization has, in fact, varied and contending meanings which is why up to
now, the concept has fueled academic debates on how to correctly interpret globalization.
We will, for this class, define globalization as the process of the integration of
communication, culture, and economics across the world into an overall global system. Basically,
globalization means that all the countries, their economies, and their cultures become
interconnected and interdependent. Instead of being islands unto themselves, globalization means
that states are increasingly becoming a part of a larger global system that has the ability to exert
influence upon them.

Contemporary
Contemporary World
World An Introduction
Unit 1: An Introduction to
to the
the Study
Study of
of Globalization
Globalization
EVALUATE
Name: ________________________________________________________________ Year/Section: ________
Worksheet 1
How close is the world to me?
Try to find your connection to the rest of the world based on the music you listened to by
answering the following questions:
1. What was the most recent song or piece of music that you listened to?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
2. What is the origin of that song or piece of music? Describe the nationality of the creator of the
music as well as the tradition to which it belongs.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
3. What technology do you most commonly use to listen to music?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
4. Where is the technology made? Where is the company that owns the technology based?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
5. How have you obtained music? Was it downloaded? Through online purchases? Or was it physical
bought from retail outlets?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Contemporary
Contemporary World
World Unit 1: An Introduction to the Study of Globalization
Worksheet 2
Misconceptions about Globalization
You have just learned that globalization is defined in various ways. However, there are
misconceptions pertaining to this concept that we still need to realize. Below are
common misconceptions about globalization. Conduct a research on each item and
explain why they are considered misconceptions. Write your answers on the given table.
MISCONCEPTIONS EXPLANATION
Globalization
as Internationalization
Globalization
as Liberalization
Globalization
as Universalization
and
Westernization
Contemporary
Contemporary World
World Unit 1: An
An Introduction
Introduction to
to the
the Study
Study of
of Globalization
Globalization
Worksheet 3A
Think of a current event featuring in headlines around the world. Topics may be about poli-
tics, music, sport, film, celebrity culture, or disaster (Hint: Twitter might provide some ideas).
Write about the event using some of the following prompts: national identity, language, design,
place of manufacture, origin of natural resources, cultural traditions, use of technology, history
etc. A sample is provided below:
Example: Globalization = Osama Bin Laden
He was born in Saudi Arabia to a family of Yemeni descent and educated at a school modelled on
the British education system. He joined the US– and Pakistani–Government backed resistance
against the Soviet Union’s invasion of Afghanistan and formed a series of organizations, whose
members came from Saudi Arabia, Egypt, Turkey and Lebanon— to name just a few. His men
fought with imported weapons and were funded by off-shore accounts, and by the early 1990s his
networks, influence and terror attacks spanned across the Middle East, North Africa and the Bal-
kans.
The victims of the September 11, 2001 attacks in the USA came from all over the world and
worked for multinational companies from countries like Japan, Germany, Switzerland and Singapore.
Bin Laden’s death in Pakistan at the hands of US forces (who arrived in helicopters that were built by
a company founded by a Ukrainian immigrant) was initially reported via Twitter; spreading the news
worldwide within minutes and more than half an hour before US President Barack Obama officially
confirmed the news in a live television speech.
Taken from: https://www.globaleducation.edu.au/teaching-activity/whats-globalisation-got-to-do-with-me.html#activity4

Worksheet 3B
Reflect on what you have written on the previous activity (Worksheet 3A). What can you gen-
eralize about globalization? Write a 100-word essay as your reflection.
______________________________________________________________________________________________________
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______________________________________________________________________________________________________

Worksheet 4
Try to understand the advantages and disadvantages of global trends, technologies and economies.
Read each of the following scenarios and decide whether the most significant impact of the
scenario (for you, for your fellow Filipinos or for the Philippines) is positive or negative by marking
the box with a check. You may use the ‘Depends’ column but you will need to justify this selection.
Scenario Positive Negative Depends
In your local community, one of the main

sources of employment for three
generations has been the fish cannery. The
company has recently decided to close the
factory and outsource the canning of fish to
another country where labor and fish are
cheaper.
Your friend's school band has really taken
off on YouTube and people from distant
places are downloading it.
You meet someone really nice while you're
on holiday in Bali and can now keep in
touch via Skype.
The shoes that you really like are much
cheaper via an online shop in the U.S.
The company that your father works for has
recently been taken over by a transnational
corporation with job opportunities in many
parts of the world if he is prepared to
relocate.
A representative from World Wildlife Fund
invites students to become involved in and
advocate to secure the future of
orangutans.
Your mom’s retirement fund has been
affected by the Global Financial Crisis and
she is worried that she won’t have enough
money when she retires.
1. What are the complexities of each given situation? ____________________________________________

_____________________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________________
2. How does globalization affect local communities in complex and interdependent ways?___________
_____________________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________________

REFERENCES:
Albrow, M. & King, E. (1990). Globalization, Knowledge and Society. London: Sage.
Anttiroiko, A. (2015). Castells’ network concept and its connections to social, economic and political
network analyses. Journal of Social Structure 16.11: 208-219.
Bell, D. (1999). The Coming of Post-Industrial Society. New York: Basic Books
Chakravartty, P. & Sarikakis (2006). Media Policy and Globalization. New York: Palgrave MacMillan.
Giddens, A. (1991). The Consequences of Modernity. Cambridge: Polity Press. p. 64.
Held, D., Goldblatt, D., McGrew, A. & Perraton, J. (1999). Global Transformations. Cambridge: Polity
Press.
Harvey, D. (1989). The Condition of Postmodernity: An Enquiry into the Origins of Cultural Change.
Cambridge Massachusetts: Blackwell Publishers.
Heyman, J. & Campbell, H. (2009). The Anthropology of Global Flows: A critical reading of
Appadurai's Disjuncture and Difference in the Global Cultural Economy. Anthropological Theory
(9:2) 131-148, 133.
Holton, R. (2011). The Routledge International Handbook of Globalization Studies (2nd Ed). London:
Routledge.
Inglehart, R. (2005). Modernization and Postmodernization: Cultural, Economic, and Political Change
in 43 Societies. New Jersey: Princeton University Press.
James, P. (2005). Arguing Globalizations: Propositions Towards an Investigation of Global

Formation. Globalizations. 2 (2): 193–209. doi:10.1080/14747730500202206.
James, P. (2014). Faces of Globalization and the Borders of States: From Asylum Seekers to
Citizens. Citizenship Studies. 18 (2): 208–23. doi:10.1080/13621025.2014.886440.
Larsson, T. (2001). The Race to the Top: The Real Story of Globalization Washington, D.C.: Cato
Institute.
Lechner, F. & Boli, J. (2011). The Globalization Reader. New Jersey: Wiley-Blackwell Publishers.
Levitt, P. (2001). The Transnational Villagers. London: University of California Press.
Ritzer, G. (2008). The Blackwell Companion to Globalization. John Wiley & Sons.
Robertson, R. (1992). Globalization: Social Theory and Global Culture (Reprint. ed.). London: Sage.
Steger, M. (2009). Globalization: A Very Short Introduction. New York: Oxford University Press.
Steger, M. & James, P. (2013). Levels of Subjective Globalization: Ideologies, Imaginaries,

Ontologies. Perspectives on Global Development and Technology. 12 (1–2).
(No Author). (2016) Networks of Capital. Retrieved last August 2017 from http://routledgesoc.com/
theme/networks-capital.

https://www.google.com.ph/search?q=economic+globalization&tbm=isch&tbs=rimg:CdWJEVI2P8MKIjjPJkcJAmrcuHg2ngfaPE-lqXP8Sfvw4Akt3R04XB2sqxi1bdul3K_196 geetEndDXybVCIextRh gyoSCc8mRwkCaty4EYNU6bHkX4wjKhI-
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2ahUKEwiOt5PQpbreAhVZE4g KHbpbAngQ9C96BAgB EBs&biw=1093&bih =486&dpr=1.25 #imgdii= gm53XtQDcdtR6M:&imgrc=wDQTeYcsx4OS4M:
LEARNING OUTCOMES:
1. Define and explain the underlying principles of each structure

of globalization.
2. Identify the role of each actor that facilitates globalization.

3. Explain the role of various institutions in the creation of the
structures of globalization.
4. Articulate a personal stance on global integration.
Contemporary World Unit 1: The Structures of Globalization

LESSON 1
THE GLOBAL ECONOMY
Lesson Objectives:
a. Define economic globalization.
b. Identify and explain the actors that facilitate economic globalization.
c. Characterize the Modern World System.
d. Recognize the advantages and disadvantages of global economic integration.
e. Formulate a personal stance on global economic integration.
ACTIVATE
Let’s play the Island Game!
(adopted from http://hrlibrary.umn.edu/edumat/
sustecon/activities/2-2.htm)
Here is the scenario: Take a

good look around, because these are
the people with whom you have just
been shipwrecked on a distant
uncharted island. As far as you know, https://www.google.com.ph/search?tbs=sbi:AMhZZiuBkrrSLFpPQLsU5ItrL1a3fG5K8wYeAjNzFgsut1jd7dkfH872WfsUGAKYS0wZVPhXyX9BOuBNumk25t3d0aJUAEIv jZh0YP5SCIzLJTwf5DUIr_1ze OsuGn9DZQAC-
pxg2K9TLKacRxk4G_1cpZmfvrMZwxrNj0bUQi5d9RGsQlviNwvM2J4RJAgzJOuwWkSUGFDrqnlkE3a-gS49lLJ-fzA2HlcXp8U3yUHnIvcrlDEzPBuoBRzUFYLNJ0hvDviW8z8smaVuP4O7TmHsE5hUHFww1pup67pB-
you are the only survivors of global

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catastrophe and it is up to you to develop a new society. This society should meet your needs, as
you define them, and it should avoid the mistakes of "the old ones," those who died in the recent
tragedy.
This is a beautiful island. It is tropical (average temperature 26°C), it has many sources of
food (fruit trees, fish, land for agriculture), and it has a steady wind from the West of about 15
mph. Remember, this is not a vacation, you have work to do so get to it!
Your task is to come up with your own Island Society. Use the following questions to guide
your discussion of how you will set up this new society. Record your answers on a separate sheet
of paper headed by the name you have given to the island.
Take note of these roles to help you in setting up your Island Society:
Interrogator: Ask questions one at a time. Keep the group moving along and on schedule.
Recorder: Record any group response to each question.
Group: Make sure answers do not conflict with one another and that they
are consistent with the economic plan. Ask questions to help group develop more specific
responses.
Map Specialist: Keep others aware of geography and natural resources of island to help
group develop a realistic economy.
Guide Questions:
Economic Plan
1. What will be your economic and/or socioeconomic goals? Choose only most important ones,
recognizing trade-offs.
2. Overall, what will be produced? How will it be produced? For whom will it be produced? Who will

make those decisions (government, individuals or a mix)?
3. How will your island government be involved in the economy?
Use your answers to “Economic Plan" to determine the following. Make sure your responses
are consistent with your overall plan.
Land/Distribution/Location
 Will the land be privately owned? If so, who gets it and how?
 Should the land be owned by everyone together?
 Should you divide it up and distribute it?
 If so, should it be divided equally? What constitutes equal?
 Where on the island should you live? (Draw this on map.)
 Should you consider the needs of the environment? How?
 Who has rights to the water? How will these be provided for?
Labor
 What work must be done?
 List the kinds of jobs required to sustain the lifestyle you desire.
 Who should do these jobs?
 What about the jobs that nobody likes?
 Does each person just have one job or many?
Land
 What natural resources will be used to produce goods?
 Will there be rules governing use of natural resources? Why or why not? If yes, what would
it be?
Capital
 What kind of capital (tools, machines, etc.) will be used to produce goods? How will this capi-
tal be attained?
Basic Needs
 Are there some basic needs that you believe should be guaranteed for all? If so, what are
they? Or do you think that individuals should secure their needs by themselves?
Do not forget to create a name for your team that reflects the type of system you have
developed.
Reflection:
1. Which problem/s did you have to address in your island economy?
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
2. How did you respond?
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
3. How was it consistent or not with the type of economic system that your island has?
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________

EMPOWER
As you sit on a chair in a five-star hotel, you might realize that it was made in Sweden. As
you look out your window, you might see a car that carries a Japanese name. As you look down at
your keyboard, you see another Asian brand, and if you backed away from your computer for a
moment and checked out the label on your shirt, you just might see the words ‘Made in China'.
Without a doubt, you are surrounded by products that have come from across the seas. In other
words, your daily life (and others’, too!) is a living example of this lesson on the globalization of the
world's economy.
To explain, economic globalization is the economic mixing and interdependence of economies
across the world through an escalation of cross-cultural movement of goods, services,
technologies, and wealth (Joshi, 2009). Stated really simply, it is the world's money being spread
around as goods, products, and technology are sent from one country to another country.
Economic globalization is the reason that you can go to your local superstore and buy products
from all over the world, while people in Europe and Asia can also buy American products. It is also
the reason someone in China can order a Grande mocha latte at the same coffee chain you
bought yours from this morning. To play on a very familiar song, it is one of the reasons that ‘It's
a small world after all!' According to many economists, it has reached new heights in the past few
years (James, 2014).
With this unprecedented growth in economic globalization some argue its impact on the
world has been very positive. However, there are some who are not so sure that it has been the
best thing for all parts of the world. Indeed, going global is a big decisions that many businesses
think long about making. For the remainder of the lesson, we will look at these two arguments so
you can decide whether economic globalization is truly a good thing for countries to embrace. We
will also discuss the actors that facilitate it and the modern global economic system it has built
today. But before that, let us look at the good and bad about doing business internationally first.
Many businesses go global because it makes sense to. They have developed business
relationships internationally and their presence abroad will benefit the company economically and
professionally. Take Matthew for example. Matthew is a small business owner who has many
international contacts. He has been contemplating the idea of expanding his business
internationally so he decided to travel abroad to scope out a potential business location he had in
mind in order to determine if it would meet his company's needs.
While there, Matthew met many people and he was able to make a name for his business
quickly. Considering it a viable option, he spoke to his colleagues and partners back home. After
careful consideration of finances, laws, and regulations of the country, along with all expenses
needed to expand the business, Matthew and his team decided it was the right move to expand
their business overseas. Though they ultimately decided to move the business overseas, it was not
an easy choice for Matthew and his team. They really had to weigh out the many pros and cons in
order to make such an important decision.
What could be the pros that Matthew needs to consider when going global? The first benefit
is a global reputation. Since the business builds a name internationally, this could help it stay in

business longer and build an admirable reputation. The second benefit is there can be cheaper
labor costs, which can help reduce employee costs. Hiring local employees is another advantage,
since by hiring employees overseas, the business is fostering a good relationship with the country
and local economy. Companies going global also benefit from fresh ideas. By hiring new employees,
the business is increasing the likelihood of new and creative business ideas.
Cheaper operating costs are also a pro, since the cost of running the business abroad could
be cheaper than at home. Cheaper supply costs may also come into play, since the cost of suppliers
and distributors could also be cheaper than at home. Another advantage is the ability to
have global partnerships. More partnerships could be built with neighboring countries and these
partnerships can assist in increased marketing potential for the business. Finally, going global
provides a back-up income source in case the business at home has trouble meeting its yearly
goals.
Now that you have learned the positive impacts of going global in business to the owner
itself, let us consider the pros on the global economy.
&
The proponents for the expansion of economic globalization argue that it creates jobs and
lowers the prices of goods. For instance, when an American-born manufacturing company sets up
shop in an impoverished country, it creates jobs for the people there. On the other hand, when
China exports, or sends goods to another country like the U.S., it forces American manufacturers to
offer their goods at cheaper prices as well. Although it would not be all that empirical, to see this
phenomenon in action, just go to your local super store (that probably has the word 'mart' in its
name) and check out the prices and how many times you read the words 'Made in China'!
Relating Matthew’s situation to the macro impact of economic globalization, a global
reputation is definitely established, along with the creation of global partnerships that is beneficial
for expansion in the future.
Speaking rather ethnocentrically, many in the West argue that economic globalization will
encourage the growth of democracy as impoverished nations, especially those under dictatorships,
begin to interact with the freer West. In other words, when people get a taste of the products
from the industrialized world, they may just want more.
Although Matthew and his team have seen all the benefits of going global, they also have to
look at some of the downsides. One of these is dealing with local politics, since the country may run
into some political issues that could cause some harm to business sales. It is important for the
business to do its homework before expanding and make sure the country it does business in does
not have strong political issues. Other issues or risks to watch out for are the crime rate and war.
Cultural differences also have to be considered, since it is important to really understand the
culture of the country where you are moving to. Knowing beliefs and traditions will go a long way to
ensuring success and not offending the locals. For example, a country where the people believe in
dressing modestly will not welcome a business that manufactures revealing clothing.
Finally, it is essential to consider the possibility of financial instability. It is important to

consider how the country does when it comes to managing its wealth. It would be good to know how
the local businesses are managing, as well as how the currency compares to the US dollar. For
example, a business owner looking to move into the economy would want to be aware if the country
has poor trading conditions with other countries or is not producing a lot of exports.
Of course, there are always two sides to every argument. While proponents of
economic globalization tout its power to create jobs in impoverished nations, many argue that it has
allowed for the following situations to take place:
Opponents argue that economic globalization has caused capital flight, the large-scale
departure of companies, assets, and wealth from a country due to economic instability or the
opportunity for cheaper production (Hermes, et. Al, 2003). Linking capital flight back to our
conversation on jobs, economic globalization has made it possible for large companies to move their
businesses to countries where they can pay their employees less. For example, a large computer
company knows it can pay a worker overseas 50¢ an hour, as opposed to the United States'
minimum wage of over $7.
Consequently, opponents to globalization have a problem with the effects of offering
lower-priced goods to consumers. This is nice for us when we go shopping, but goods coming into a
country cheaper has also been the demise of some local economies — once a large store comes to
a specific area, the small businesses just could not compete with the cheap prices that they offer,
forcing them to shut their doors. Yes, these huge stores have made a science out of importing, or
bringing in goods from another country, but many assert it has come at the loss of local businesses
and the demise of what many have called main-street local businesses. Although this sounds great
in theory, others do not see it with such rose-colored glasses. Opponents fear that large
companies, without any sort of accountability, just may end up being as dangerous as the dictators
they replaced.
If truth be told, economic globalization has, indeed, allowed for social injustices, such as poor
working conditions, wages that are scandalously low, and even the exploitation of children in the
form of forced labor. In other words, when a company sets up shop in a nation that does not
enforce fair labor practices, abuses may abound.
We have learned in the previous lesson that globalization is

about interconnecting people around the world beyond the
physical barrier of geographical boundaries. Since it is inevitable
that pros and cons can result from it, it is necessary to
recognize the many factors that are responsible for the flourishing
of economic globalization.
Say for example, Meat Queen. It is the supreme ruler of
fast food restaurants around the globe. How did they do it? They
embraced globalization, or the integrating of economies across https://www.google.com.ph/search?q=economic+globalization&rlz=1C1CHBD_enP H767
the globe through the process of procuring goods, services, and

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capital across the world.

As we go along with our study of the major drivers of the globalization process of the
economy, we will begin examining Meat Queen’s adoption of globalization.

Meat Queen’s globalization success can be linked to numerous key drivers of the overall
process. The first factor is the benefit of technological innovation, which has allowed the Meat
Queen to rapidly globalize their restaurants. The company has been able to manage, reproduce, and
standardize their food across the world with local sourcing of ingredients coordinated by
technology, such as video conferencing and emailing with suppliers. It is also easy to communicate
with employees worldwide to ensure coordinated global efforts for topics such as training.
Another major driver of globalization for King Meat has been the development of their
transportation systems, which allow quick, affordable migration of their products across the globe.
The company utilizes freight trains, ships, and even planes to transfer products to their restaurants.
For example, new roads in India have allowed the company to open restaurants in that country. In
the past, Meat Queen was limited by small dirt roads that did not support their trucks.
Social and political reforms have also affected the globalization of Meat Queen's business.
The enormous growth in population and consumerism of countries, such as China, Japan, and India,
has created opportunities for new customers globally. And the collapse of communism in Central
and Eastern Europe has created even more new markets and business partnerships for Meat Queen
to establish their restaurant business.
All of these drivers have allowed Meat Queen to quickly establish restaurants globally with
minimal effort.
In this day and age, the world has changed as globalization takes place where we are moving
away from being self-contained countries to being a more integrated world. Imagine for a
moment that you run a business that produces digital cameras. How would globalization impact your
company?
There are two broad categories that describe the impact of globalization: market
globalization and production globalization (Levitt, 2001).
Market globalization is the decline in barriers to selling in countries other than the home
country. This change will make it easier for your company to begin selling products internationally,
since lower tariffs keep consumer prices lower and fewer restrictions when crossing borders makes
it easier for a company to enter a foreign market. It also means that companies must consider
other cultures when developing their business strategies and potentially adjust the product and
marketing messages if they aren't appropriate in the target country. This may not be an issue in the
camera industry, but a hamburger company entering India would definitely need to revisit their
product and strategies to be successful.
Production globalization is the sourcing of materials and services from other countries to
gain advantage from price differences in different nations. For example, you might purchase
materials and components for your cameras from multiple countries and then assemble the product
in yet another international location to reduce your costs of production. This change should lead to
lower prices for consumers since products cost less to produce. It also impacts jobs, since
production may shift from one country to another, usually from more developed countries to less
developed countries with lower average wage rates.
At present, there is an obvious change in businesses, a state known as globalization of
business, as changes in a business from a company associated with a single country to one that

operates in multiple countries occur.
What, then, are the effects of globalization?
The primary effects of globalization include the following:
1) Distributed Operations wherein companies may locate facilities in multiple countries. There
are many reasons to spread out operations, including: (a) reduced labor or production costs in the
country where a plant is located, and (b) reduced distribution costs due to locating a plant nearer
to the customers. For example, a company with sales in Europe may build a production facility in
Europe as well so that goods do not have to be shipped over the ocean from the U.S. or Asia.
2) Changes in location wherein companies may locate their firms in new places, both to
reduce labor and production costs and to take advantage of free trade zones. In a free trade
zone, goods can travel freely between countries and no tariffs are charged when crossing borders.
This helps keep prices lower than if the goods were shipped in from another area.
3) Increasing complexity — although multiple locations and distributed operations may lead to
reductions in cost, it also causes increasing complexity in management of the interactions between
the facilities.
In addition, although a free trade area has fewer hurdles for moving goods within the
region, companies may still have to adjust their marketing strategies for regional economies. For
example, advertising in France still needs to be translated into French, even though a German
company may send their goods there without dealing with border restrictions.
The Modern World System is focused on the concept of economic integration. In this lesson,
we will learn about economic integration, its theoretical basis, and the different levels of integration
considering the trend that has been going on over the past decades.
?
Economic integration involves agreements between countries to permit, to varying degrees,
the flow of capital, labor, goods, and services across their respective international borders (Tovias,
1994). It is an arrangement between different regions that often includes the reduction or
elimination of trade barriers, and the coordination of monetary (consists of the decisions made by a
government concerning the money supply and interest rates) and fiscal policies (the use of taxation
and government spending policies to affect the overall business activity). The aim of economic
integration is to reduce costs for both consumers and producers and to increase trade between
the countries involved in the agreement.
The argument in support of economic integration can be very complex, but the general
theoretical basis of it will be outlined here. Every country is better suited to engage in certain
activities than other activities. Some countries are rich in natural resources, some in labor, and
some in capital, just to name a few. For simplicity, the discussion will be restricted to capital (money
available for investment) and labor (workers).
If labor and capital are free to move across international borders, each country can
capitalize on its advantages. Countries with a great amount of capital will focus on economic
activities requiring a great amount of capital investment, such as pharmaceuticals, aerospace, and
emerging technologies. They will export capital-intensive goods and services, and import labor-
intensive goods and services.

Since such a country does not focus on labor-intensive businesses, its labor supply will
increase, causing wages to go down as more people compete for the same jobs.
On the other hand, countries with an abundance of labor will focus their economic activities
on industries that rely on a great amount of labor, such as manufacturing, because labor is cheap.
However, eventually the supply of labor will decrease, which will cause wages to go up. The country
will also increase its capital, from the profits it generates from its exports, and that will permit
more investment.
The theory hypothesizes that eventually the ratio between wages and profits should equalize
among the participating countries, resulting in fair and balanced trade. In other words, according
to the theory, there will eventually cease to be a disparity between labor costs, capital investment,
and wealth among nations.
As you might expect, there are varying degrees or levels of economic integration. Each type
of integration represents a particular level of economic integration. You can think of economic
integration as being on a continuum, in which no integration is at one end, and complete economic
integration is at the other end (Machlup, 1977).
FREE TRADE AGREEMENTS

Most efforts at economic integration occur today through the use of free trade agreements,
which are agreements entered into between countries regarding specific trade issues, such as
reduction of tariffs (a type of tax on imported or exported goods and services) and quotas (non-
tariff barriers between countries) that limit imports. Trade agreements can be bilateral (between
two countries) or multilateral (between several countries). Countries that are not a party to the
agreement will be subject to higher tariffs and other trade barriers.
FREE TRADE AREAS

A free trade area eliminates barriers to trade among the members such as tariffs and
quotas. Members of a free trade area make their own policies concerning trade with other
countries outside of the free trade area. You should note that a free trade area may be limited to
specific types of goods and services. The best example of a free trade area is NAFTA, the North
American Free Trade Agreement.
CUSTOMS UNION
A customs union is formed by countries that not only eliminate trade barriers between the
members but also have a unified trade policy with countries outside of the union. For example, a
customs union will establish a common tariff that is applied to all imports coming into each member
country. The tariff revenues may be split among the members, according to a formula agreed to by
the members. An example of a customs union is the Andean Community consisting of Bolivia,
Colombia, Ecuador, and Peru.
COMMON MARKET
A common market has all of the characteristics of a customs union but also eliminates
barriers to the movement of capital, labor, and technology. Restrictions on immigration, emigration,
and foreign investment between members are lifted. Mercosur (short for Mercado Común del Sur
(or Common Market of the South) is a South American group of nations that is an example of a

common market.
ECONOMIC UNION
The highest level of economic integration occurs in economic unions. In addition to all of the
economic integration features found in common markets, members of an economic union must be
able to maintain consistency with monetary policy, fiscal policy, and tax policy. An economic union
also uses a common currency. It should be noted that an economic union requires that member
states give up a significant amount of their independent sovereignty. The European Union is an
example of an economic union.
In other words, the more integrated economies become, the fewer the trade barriers are,
and the more economic and political coordination there is between countries.
Of course, it is not always a walk in the park when it comes to being in agreement with other
countries. While there are potential benefits to economic integration, there are also potential costs
that need to be considered.
Let us discuss the advantages of economic integration, which fall into three categories
namely: 1) trade benefits, 2) employment and 3) political cooperation.
With economic integration, member countries (a) have a wider selection of goods and
services not previously available; (b) can acquire goods and services at a lower cost after trade
barriers due to lowered tariffs or removal of tariffs; and (c) have increased efficiency gains which
leads to an increased purchasing power since more trade is encouraged between member
countries, hence the balance of money spent for cheaper goods and services can be used to buy
more products and services.
Employment opportunities, on the other hand, tend to improve because as economic
integration encourage trade liberation and lead to market expansion, more investment into the
country and greater diffusion of technology, it creates more employment opportunities for people
to move from one country to another to find jobs or to earn higher pay. For example, industries
requiring mostly unskilled labor tend to shift production to low wage countries within a regional
cooperation.
Lastly, political cooperation among countries can improve because of stronger economic ties,
which can help resolve conflicts peacefully and lead to greater stability. A group of nations can have
significantly greater political influence than each nation would have individually. This integration is an
essential strategy to address the effects of conflicts and political instability that may affect the
region. Economic integration is, in fact, a useful tool to handle the social and economic challenges
associated with globalization.
Despite these benefits, economic integration has disadvantages. For one, there is creation of
trading blocs since economic integration can also increase trade barriers against non-member
countries. The downsides also include trade diversion and the erosion of national sovereignty.
Because of trade barriers, trade is diverted from a non-member country to a member country
despite the inefficiency in cost. For example, a country has to stop trading with a low cost
manufacture in a non-member country and trade with a manufacturer in a member country which
has a higher cost. In short, trade unions can turn away trade from non-members even if it is
economically detrimental for them to do so.

Additionally, national sovereignty requires member countries to give up some degree of
control over key policies like trade, monetary and fiscal policies. The higher the level of integration,
the greater the degree of controls that needs to be given up particularly in the case of a political
union economic integration which requires nations to give up a high degree of sovereignty. Members
of economic unions are typically required to adhere to rules on trade, monetary policy and fiscal
policy, which are established by an unelected external policymaking body. Sovereignty, in fact, was
one of the key debates in the United Kingdom's decision to leave the European Union in 2016.
Now that you were presented with the main ideas about economic integration, its pros and
cons, do you think it gives more benefits than costs?
In truth, there really is plenty of debate on globalization. Whatever side you end up taking,
there are a few essential points to keep in mind to help make sure that your argument is as
intelligent as possible.
First point is: Remember that globalization measures cost per unit, not per hour - this is
crucial, and helps explain why factory workers in Germany and Japan are not victims of globalization
like those in the United States. This is because those countries have access to better technology,
which means that they can produce at a lower cost per unit. In those countries, technology is so
advanced that even while providing higher wages and better benefits, technological efficiency allows
those companies to still make more money by leaving their operations in their home countries.
Second point is: Knowledge is power - being able to adapt is an asset. A job is not a safety
net; however, a skill set is. People who work jobs that are replaceable overseas may find themselves
without a pay check, but those people who have a skill set that is needed locally will almost always
have a job.
Third, companies have to face consequences - many companies may be tempted to use
globalization to lower their costs far beyond what would be possible in the past, but they should be
careful in doing so. After all, creating an economy in which consumers do not have the money to buy
goods once the jobs have been moved overseas is not an economy that will generate many sales.
Consumers who lost their jobs because the company moved the factory overseas won't have money
to buy the now cheaper goods.

EVALUATE
Worksheet 1
A. Multiple Choice. Read and analyze each question carefully. Write the CAPITAL LETTER of the
correct answer on the space provided.
___1. What is defined as the economic mixing and interdependence of economies across the world
through an escalation of cross-cultural movement of goods, services, technologies and wealth?
a. capital flight c. economic shift
b. economic globalization d. communism
___2. ___ is defined as large-scale departure of companies, assets, and wealth from a country due
to economic stability or the opportunity for cheaper production?
a. subsistence economics c. capital flight
b. macroeconomics d. capital reduction
___3. ___ is the decline in barriers to selling in countries other than the home country.
a. production globalization c. globalization of business
b. economic globalization d. market globalization
___4. It is the sourcing of materials and services from other countries to gain advantage from
price differences in different nations.
a. production globalization c. globalization of business
b. economic globalization d. market globalization
___5. Importing is the act of _____.
a. exchanging goods between countries c. bringing goods from another country
b. bringing goods to another country d. selling goods at less than cost
___6. Why might a country import goods instead of making everything itself?
a. To boost the country’s income (Gross Domestic Product)
b. It keeps a country’s ports and shipping industry in business
c. It can be more effectively and cheaply produced by another country
d. It keeps relationship with other countries positive and reduces the risk of conflicts.
___7. Which of the following best describes economic integration?
a. Agreements between countries regarding tariffs
b. Agreements between countries to create common markets
c. Agreements between two or more countries to reduce barriers to trade and economic
activities between countries
d. Effort to create a one world government with a completely integrated economy
___8. Which of the following is the general argument in support of economic integration?
a. It helps poor countries.
b. It helps rich countries.
c. It helps international organizations such as the UN and the World Bank.
d. It will eventually lead to an equalization of wealth among nations.
___9. Which among the following types of economic integration eliminates barriers to trade such as
tariffs and quotas among its members?
a. free trade agreements c. free trade areas
b. customs union d. common market

EVALUATE
Worksheet 1
___10. Which among the following types of economic integration makes use of agreements entered
into between countries regarding trade issues?
___11. Which among the following types of economic integration has all of the characteristics of a
customs union but also eliminates barriers to the movement of capital, labor and technology?
___12. Which among the following types of economic integration is formed by countries that not
only eliminate trade barriers between members but also have a unified trade policy with countries
outside of the union?
___13. The following are characteristics of economic union except for ___.
a. It is the highest level of economic integration.
b. It has the features of common markets.
c. It is consistent with monetary policy, fiscal policy and tax policy.
d. Member states give-up a significant amount of independent sovereignty.
___14. The following are major drivers of globalization except for ____.
a. Technological innovation
b. Capital Investment
c. transportation systems
d. social and political reforms
___15. Economic integration does more good than harm.
a. True
b. False
B. Justify your answer in number 15: __________________________________________________________
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EVALUATE
Worksheet 2A
The Pros and Cons of Going Global
Complete the following template to describe the advantages and disadvantages of

going global for a business owner.
PROs CONs

EVALUATE
Worksheet 2B
The Pros and Cons of Economic Globalization

economic globalization.
PROs CONs

EVALUATE
Worksheet 2C
The Pros and Cons of Economic Integration

economic integration.
PROs CONs

EVALUATE
Worksheet 2D
Let’s find the common denominator! Using the Pros and Cons in the previous activities and
the Venn-Diagram below, try to examine the similarities and differences between business
going global, economic globalization and economic integration.
Going Global Economic

Globalization
Economic
Integration

EVALUATE
Worksheet 3
What have you realized about the similarities and differences between the three concepts (going
global, economic globalization and economic integration? Is global economic integration good or
bad? Justify your stand by writing your reflection below.
____________________________________________________________________________________________
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REFERENCES:
Ajayi, S. & Ndikumana, L. (2015). Capital Flight from Africa: Causes, Effects, and Policy Issues. Oxford
University Press.
Albrow, M. & King, E. (1990). Globalization, Knowledge and Society. London: Sage.
Epstein, G. (2005). Capital Flight and Capital Controls in Developing Countries. Edward Elgar
Publishing.
Farnie, D. (1969). East and West of Suez: The Suez Canal History. Oxford, UK: Clarendon Press.
Joshi, R. (2009). International Business. New York: Oxford University Press.
Hermes, N., Lensink, R. & Murinde, V. (2003). Capital Flight: The Key Issues. Chapters in: Handbook of
International Banking. Edward Elgar Publishing.
Hopkins, A. (2004). Globalization in World History. London: Norton
James, P. (2014). Faces of Globalization and the Borders of States: From Asylum Seekers to
Citizens. Citizenship Studies. 18 (2): 208–23.
Latham, A. (1996). Modernization and Progress: Southeast Asia in the World Economy 1860-1941. In
Proceedings of the International Symposium Southeast Asia: Global Area Studies for the
Twenty First Century. Kyoto, Japan: Centre for Southeast Asian Studies, Kyoto University.
Latham, A. & Neal, L. (1983). The International Market in Rice and Wheat. Economic History Review 2.
36:260-280.
Levitt, P. (2004). The Globalization of Markets. Harvard Business Review, 61:92-10.
Machlup, Fritz (1977). A History of Thought on Economic Integration. New York: Columbia University
Press.
Neverdeen, P. (2012). Periodizing Globalization: Histories of Globalization. New Global Studies, 6 (2), 1-
25.
O’Rourke, K. & Wiliamson, J. (2002). When did Globalization Begin. European Review of Economic
History, 6: 23-50.
Robertson, R. (1992). Globalization: Social Theory and Global Culture. Thousand Oaks, CA: Sage.
Svante Andersson & Göran Svensson (editors) (2009) Global Marketing: think globally and act locally,
Lund: Studentlitteratur.
Tovias, A. (1994). The Theory of Economic Integration: Past and Future. 2d ECSA-World conference
Federalism, Subsidiarity and Democracy in the European Union. Brussels.
(No Author). (No Year). Island Game. Retrieved from http://hrlibrary.umn.edu/edumat/sustecon/

activities/2-2.htm)
(No Author). (2013). UNWTO World Tourism Barometer (PDF). UNWTO World Tourism Barometer. 11 (1).
January 2013. Archived from the original (PDF) on 28 February 2013. Retrieved 9 April 2013.

LESSON 2
MARKET INTEGRATION
Lesson Objectives:
a. Recognize and critically analyze the role of international financial institutions in the creation of
global economy.
b. Explain the history of the Global Market in the 20th Century.
c. Identify and describe the attributes of Global Corporations.
d. Rationalize the Crises of Global Capitalism.
ACTIVATE
Look at the items below. Put a “✓” if the item has the characteristic of money, an “X” if the item
does not have that characteristic of money, and a “?” if you are unsure. Then add four more items
to the list. The first item is done for you.
Item Portable Divisible Durable Scarce Generally

Accepted
Crayon ? X X
(but not evenly) (can break or melt)
Salt
Chocolate
Book
Beads
Desk
Could any of these items replace the money we have today? Why or why not?
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
Contemporary
Contemporary World
World UnitUnit 1: TheStructures
2: The StructuresofofGlobalization
Globalization
EMPOWER
What would the world be like without money? An economy
can operate without money. In fact, most economies have
operated without it at some point in history. But we would not
want to try this for long, as it would become quite frustrating.
You know why? Here is how that would play out.
Suppose there are only two people in the entire economy: https://www.google.com.ph/search? rlz=1C1CHBF_enPH803PH803&biw=1280&bih=560 &tbm=I sch&sa=1&ei=g-INXLHAEtT7
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Carl the mechanic and Mary the cake baker. Instead of using
money, they could trade products or services. Carl could trade an oil change that he sells for
P1000 normally for two of Mary’s chocolate cakes (which she sells for P500) normally. This seems
pretty simple in an economy with only two people. However, the more people you have and the
more types of goods you have, the more complicated your economy gets and the more costly it
becomes to satisfy everyone's needs and wants. A world without money becomes problematic.
Take for example, if you produce wheat, but you want cows, then you will have to find
somebody who raises cattle, who also wants wheat. Suppose you are a mason who lays bricks, and
you need some oil. Where can a mason find an oil refiner who happens to need a brick wall? This
may cost you a great deal of time and effort, and as you try to locate the right person to
exchange goods and services with, this could be a long time.
This lesson presents an overview of what money is, the benefits that come with using it,
including its functions in the economy. Said discussion will then lead us to the discussion on the role
of financial institutions in the creation of the global economy.
As you can see, money offers consumers and businesses some very basic and practical
benefits. Money was invented as an alternative to bartering. The major benefit of money is that it
increases the efficiency of an economy by reducing transactions costs. When people can use money
instead of bartering, this leads to more specialization and better division of labor within the
economy (Mishkin, 2007).
In an economy with money, Mary and Carl can specialize in what they do best instead of
what they can use to exchange with other people. Mary can bake cakes instead of being a farmer,
and Carl can repair cars, which he is really good at, instead of raising a cattle. Why does this
really matter? Because an economy with more specialization and division of labor trades more
often, produces more, and enjoys greater economic output.
Economists recognize three types of money: commodity money, representative money, and
fiat money. Money that is in the form of a commodity with intrinsic value is considered commodity
money. 'Intrinsic value' means it has value outside of its use as money. For example, gold has been
used as commodity money for thousands of years. Suppose Mary decided to pay Carl with a gold
bar that she inherited from her European grandfather - this would be an example of commodity
money being exchanged. In short, if we used gold coins to buy things, that would be an example of
commodity money.

Representative money is not money itself, but something that represents money. It is
exchangeable for a commodity. During colonial days in America, tobacco was a valuable commodity.
Somebody could pay for the goods and services that they needed using tobacco, and it would be
accepted just like money was (Mankiw, 2007).
Tobacco became such a big deal during this time that people would store their tobacco in a
warehouse and receive a receipt showing that they owned a certain amount of tobacco in the
warehouse. Sounds kind of like a bank, doesn't it? A tobacco warehouse receipt quickly became
representative money because this receipt was backed by tobacco sitting in a warehouse.
Suppose Carl and Mary lived in colonial days, and, of course, Carl was just as attracted to
Mary’s cakes as he is right now. When Carl wants to pay for a chocolate cake in colonial days, then
he would use a tobacco receipt. Representative money is treated just as if it was real money, even
though it is not. In today's economy, a check from a check book is an example of representative
money because it represents money but it is not the money itself.
So far, the previously mentioned types of money are both based on something of real value.
The third type of money is most common— it is called fiat money. Fiat money is money with
absolutely no intrinsic value that is just used as money. Fiat money only has value because the
government says it's valuable. A fiat is simply an order or decree given by a government. Basical-
ly, fiat money is money because the government says it is, not because it is actually worth anything.
In fact, most of the paper currency - including the Bank Notes issued by the Central Bank of the
Philippines is not worth the paper it is printed on, in spite of the fact that it is used and accepted
virtually everywhere in the world.
Suppose Carl the mechanic worked for five weeks straight on Mary's minivan. During this long
project, each Friday at three o'clock, when Carl would expect to be paid for all of his hard work
during the week, he would go inside Mary's house. Although he dreamed of getting Mary's cakes, she
would instead write on a piece of scratch paper “P1000.” Obviously, this is ridiculous because Carl
could not take a piece of paper that says “P1000” and go to a grocery store to buy something
with it. This piece of paper does not represent anything of tangible value, like gold, for example.
Therefore, it is not commodity money. However, if the government made a decree that it was worth
something, then it would be. Such is our money today - the government says it is worth something,
therefore people believe it and they act on it. This is what fiat money is.
But how did the money system came about? To answer this question, we need to understand
the basic functions of money that help create the foundation of the money system.
Money Is a Unit of Account

Money is a unit of account because everything in the economy is quoted in terms of it
(Bernstein, 2008). For example, when Mary sells cakes in her bakery, she offers the cakes for sale
at a certain price. That price is quoted in terms of money. Say, she has a chocolate cake selling for
P500. When Mark sells his lawn service, he charges P1000 per yard. If you think about it, Mark’s
lawn service is really worth two of Margie's chocolate cakes, and Mary’s P500 cake is worth a half
of Mark’s lawn service. Since Mark is not the only customer that Mary has, and Mary is not Mark’s
only customer, they need a unit of account that works for everyone in the economy. In this way,
money functions as a unit of account, which is the foundation of every transaction taking place
around us.

Money Is a Medium of Exchange
Money is a medium of exchange because it can be used to satisfy unlimited needs and wants
(Greco, 2001). For Mark, he wants chocolate cake and lots of it. Every time he buys a cake from
Mary’s bakery, he exchanges the money he earned from his job for a cake. Money serves as an
important medium of exchange in the economy, empowering people to purchase goods and services
in an attempt to satisfy their unlimited needs and wants.
Money Is a Store of Value

Money is a store of value because Mark can exchange his lawn services for money one day
and then use it to purchase goods and services at a later date (Mises, 1981). When he earns his
paycheck, he cashes it at the bank, for example. Mark can hold on to that cash in his wallet for a
few minutes, a few days or even a few months or years before he decides to exchange the money
for one of Mary’s outrageously, decadently delicious, chocolate cakes. Unfortunately, inflation
prevents most of the money in existence today from serving as a pure store of value, because the
money loses a significant portion of its purchasing power over time. However, if there were no
inflation, then money would serve as a near-perfect store of value.
Money Is a Standard of Deferred Payment

Finally, money is a standard of deferred payment because it is sometimes used to buy
something today and pay for it over time (Mises, 1981). For example, when Mark needs a new
commercial lawn mower with a built-in TV, he borrows the money from the bank. They require him
to make a small down payment of cash today, however, he pays for most of the cost of the mower
through monthly loan payments over time. When Mark buys now and pays later over time, money is
functioning as a standard of deferred payment.
For something to be considered money, it must be a unit of account, a medium of exchange
and a store of value. For example, gold is not considered money, because it is not used as a
medium of exchange (at least in most places in the world). In addition, it does not serve as a unit
of account. It may, however, serve as a store of value. The Mona Lisa painting with a fake
moustache painted over it is not money. It does serve as a store of value, however, and I would
argue that, with the moustache that has been added, it could be worth even more than it was
before. However, it is not a medium of exchange or a unit of account. Therefore the Mona Lisa is
not money.
Indeed, money is essential in economic transactions especially when there is exchange of
goods and services (Mankiw, 2007). Since money functions in various ways, reaching a global scale,
it is necessary to understand the organizations that help facilitate its exchange. The next lesson will
discuss the financial institutions that exist in the society and its role in the creation of a global
economy.
?
If you have a part-time job or full-time job, a credit or debit card, you most likely have a
customer relationship with a financial institution. Financial institutions are organizations that
process monetary transactions, including business and private loans, customer deposits, and
investments (Wright & Quadrini, 2012). They are key to the financial intermediation process, whereby
financial institutions transfer funds from those who save money to those who borrow money. A
financial institution is an organization that manages different financial transactions such as
investments, loans and deposits.

Nearly everyone in the society deals with financial institutions on a regular basis — from depositing
money to taking out loans and exchanging currencies. Let us take a look at the three main types of
financial institutions: depository, non- depository, and investment (Siklos, 2001).
Depository institutions allow customers to deposit money in an

account. You are probably most familiar with these types of financial
institutions if you have a checking or savings account. Examples of
depository institutions include commercial banks and credit
unions. Commercial banks are for profit entities that provide a
number of services to their account holders. These types of financial
institutions usually operate at the local, regional or national level, have large advertising budgets,
and charge higher fees than a credit union. Credit unions are non-profit entities owned by ac-
countholders, also called members. You must be affiliated with a certain organization or live within
a certain proximity to the credit union to be a member. Fees are usually lower at credit unions.
They are typically found at the local level.
It is relatively easy to understand how financial intermediation works at depository
institutions because customers deposit money in accounts, and the institutions loan that money to
borrowers. Now let us see how non-depository institutions play a role in this process.
-
As you may have already guessed, non-depository institutions do not allow customers to
deposit money. However, they are considered financial institutions because they transfer funds from
savers to borrowers by investing the funds they receive. Insurance companies are non-depository
institutions. Insurance companies provide customers with policies that protect them from risk, for
which they charge them monthly premiums. Only a small percentage of the premiums collected are
paid out in losses. Insurance companies invest the rest of the premiums in securities, like stocks,
bonds, and other commodities, such as cattle, gold, and silver. Sometimes, insurance companies
purchase securities and commodities directly from an entity. Other times, there is a middleman
involved: an investment firm.
Investment banks are also financial institutions in that they play a role in the financial
intermediation process by channeling funds from savers to borrowers. Unlike commercial banks,
they usually do not provide services to the public. Areas of focus include initial public offerings
(IPOs), mergers, share offerings, and underwriting. Investment banks may also function as brokers,
provide financial advice to corporations, or serve as the middlemen between investors and
securities issuers. Examples of investment banks in the Philippines include BPI Capital Corporation,
Insular Investment and Trust Corporation, PNB Capital and Investment Corporation, Unioil
Resources & Holdings, Inc. Regulatory bodies, like the Securities and Exchange Commission (SEC)
and the Bureau of Treasury, oversee the activities of investment banks.
Now that you have learned about the financial institutions that normally exist in a local
economy, let us discuss the financial institutions that play a significant role in the global scale.

International commerce, a key part of globalization, requires extensive support. The World
Bank (WB), International Monetary Fund (or IMF), and World Trade Organization (or WTO) are the
three international financial and trade institutions that establish the boundaries by which
international commerce is transacted.
(www.worldbank.org)
When you think of a bank, what comes to your mind?
Probably deposits, ATMs, tellers behind the counter, loan
officers, and things like that. Basically, it is the place where
you borrow money, put money into accounts, and maybe even
keep things secure in a safe deposit box. However, unlike any
bank that you have ever been to, the World Bank does more
than just borrow and loan out money. This United Nations
agency provides development assistance, with eight goals
focused on improving health and reducing poverty and
Women washing their laundry in the streets following the war
inequalities around the world. Let us learn more about this because of the damage.
institution. https://www.google.com.ph/search?tbs=sbi:AMhZZitF0Xk6MMj9kIVv3d2tjmN2u5d fR69T yqjNKHCXzJWK_
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WHAT IS THE WORLD BANK?

You may think that the World Bank is a place for countries around the world to do the same
things that you do at your bank, just on a global scale. But in reality, the World Bank is a specialized
agency of the United Nations. Composed of the International Bank for Reconstruction and
Development (or IBRD) and the International Development Association (or IDA), it is the world's
largest source of development assistance. It has over 180 member countries around the world that
determine where its money comes from and how it spends its money, whether that's on low-interest
loans, free-interest credit to developing countries, and so on.
The World Bank is different from the World Bank Group. The latter includes the two
components of the World Bank, but also the International Finance Corporation, the Multilateral
Investment Guarantee Agency, and the International Centre for Settlement of Investment Disputes.
But these are another lessons for another day.
HISTORY OF THE WORLD BANK

The World Bank was created in 1944 during World War II
when it was expected that Germany and Japan would soon be
defeated. Since the devastation in Europe and Asia was beyond
belief, the funds needed to rebuild war-ravaged nations would
be immense. The United States, the one remaining economic
superpower, would shoulder more than its share of the
recovery. World leaders had a real fear that post-war
reconstruction could push the United States into another
depression and carry the global economy with it. A big
question remained. How could the US rebuild the world without
Architects of the Bretton Woods Agreement,
jeopardizing its own financial security? White (left) and Keynes (right )
John Maynard Keynes, an advisor to the United Kingdom https://www.google.com.ph/search?tbs=sbi:AMhZZiuEGrAZLFEhin4RCxEZ2r7FPOviV PUG Az2 P2sND y80Rc IoahUs9KZY2YhezL-9p9j
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Treasury, and Harry Dexter White, the chief international economist for the US Treasury, had a few
ideas. From them, The Bretton Woods Agreement and a renewed hope for the future emerged. It
was approved in 1944 to address the financial concerns of post-war reconstruction and recovery.
The Bretton Woods Conference was held in Bretton Woods, New Hampshire, with the goal of
setting-up financial arrangements for the world after the war ended.
730 delegates from 44 nations gathered in Bretton Woods, New Hampshire in July of 1944 to
draft a new international monetary policy. The goal of the new policy was to establish a stable
foreign exchange rate system, prevent competitive currency devaluations, and promote economic
growth. A key element of the agreement called for currency to be backed by gold. The US dollar
would serve as a reserve currency and be pegged at an exchange rate of $35 USD to one ounce of
gold. Nations could either peg their currency to gold or the US dollar. The agreement called for an
adjustable peg system to allow for fluctuations in the economy. Nations were expected to maintain
their currency within 1% of parity. The US Federal Reserve would maintain gold reserves equal to 40%
of the US dollar currency in circulation.
Both Keynes and White believed a central agency was needed to coordinate and stabilize
current exchange. At the same time, post-war reconstruction financing was needed to help
countries recover. The International Monetary Fund (IMF) and the International Bank for
Reconstruction and Development were established to support both needs, which will be discussed in
detail later on. The IMF would monitor exchange rates and lend reserve currency to settle account
balances. The International Bank would provide and guarantee the funds needed to rebuild
developing countries. The International Bank would later evolve into the World Bank and continue its
mission.
Unfortunately, a series of events led to the Collapse of the Bretton Woods Agreement.
Depleted gold reserves, rising inflation and an unwillingness for surplus countries to adjust their
currency eventually led to the suspension of the gold standard. From 1950 to 1957, the US Current
Account experienced significant account balance deficits. Foreign nations increased their US dollar
holdings by $500- 600 million and gold reserves by $400-500 million per year. The account balance
deficits for the US during the policy period continued to rise year over year. By 1964, the US dollars
held abroad exceeded the depleted gold reserves of the US and created a convertibility crisis.
The current account is a financial ledger of economic transactions between nations. The
current account records exports, imports, income, and currency transfers. An account
balance deficit may occur when imports exceed exports and/or currency outflow exceeds inflow.
During the Bretton Woods policy period, the deficits experienced by the US were the result of
foreign aid to help Europe and Asia rebuild, currency outflows.
Dollar Value of Account Bal- Account Balance Deficit as a % of

Time Period
ance Deficit in USD Total Exports
1951-1955 $2 Billion 15%

1961-1965 $6 Billion 25%
1971-1975 $23 Billion 31%
Taken from: The World Bank (1978)

Accelerating the decline of the policy, inflation had increased from 2% in 1965 to 6% by 1970.
The rising rates elevated concerns that a weaker US dollar would trigger the exchange of dollars
for gold in large numbers. In October of 1960, speculations of a weaker dollar pushed the free
market price of gold up in the London markets from $35.20 to $40 USD. The US intervened in the
markets and lowered the price back down to $35 USD per ounce. However, cross-exchange rates
were not able to quickly adjust to the balance of payments disequilibrium and continued the risk of
destabilization.
The Bretton Woods Agreement included an adjustable peg option. Nations were expected to
adjust their currency to maintain equilibrium. The unwillingness of nations with account balance
surpluses to adjust their currency contributed to increasing account balance deficits. The increase in
account balance deficits caused by
u n a d ju s ted for ei g n c u rren c i es
increased the flow of US dollars
abroad and compounded the risk of a
convertibility crisis.
The chart on the left shows the
depletion of the US gold reserves
during the Bretton Woods Policy
period.
I n 19 71, P res i d en t N i x on
suspended the gold standard, fearing
the Federal Reserve could not fulfil its
obligations.
As mentioned earlier in this lesson, the International Bank has evolved into the World Bank,
which has gone through some changes. Initially, it focused on providing aid to European countries,
but in the late '60s, it shifted its focus to non-European countries instead, especially developing
nations. Then, in the late '80s, the World Bank began offering loans and financial assistance to not
just countries, but also non-governmental and environmental organizations in an effort to improve
world health and reduce poverty and disease.
WORLD BANK GOALS

The objectives of the World Bank are really what sets it apart from what you might consider a
'traditional' bank. Instead of just borrowing and loaning out money, the World Bank is deeply
committed to human welfare in a much larger sense than just finances.
In fact, the World Bank has outlined eight specific goals they call their Millennium Development
Goals, which are multi-faceted, international development goals developed during the UN Millennium
Summit in 2000. These goals are very specific and also quite challenging tasks to take on. The eight
goals are: to eradicate extreme poverty and hunger; achieve universal primary education; promote
gender equality and empower women; reduce child mortality; improve maternal health; combat HIV/
AIDS, malaria, and other deadly diseases; ensure environmental stability; and develop a global
partnership for development.
At the time these goals were developed, there were 189 UN member states and all of them,
along with dozens of other international organizations, committed to helping these goals reach
realization by 2015. But these are pretty lofty goals to accomplish in only 15 years. And while there

has been some progress, it has not happened evenly among either the countries or the different
goals. However, because these are goals that benefit all humankind, not just individuals in developing
countries, work will still be made once 2015 has come and gone.
Going back to our example about the Meat Queen, the World Bank is a central factor in the
growth of globalization with the aim of providing business loans to its member nations that help
build infrastructure such as roads. Without the loans from the World Bank, Meat Queen might have
been unable to establish their restaurants due to poor infrastructure.
( ) (www.imf.org)
International stability requires economic stability. Another actor that make global economy
possible is the International Monetary Fund, which helps establish economic stability.
Also referred to as the 'sister' organization to the World Bank, the institution's purpose is to
encourage currency exchange with member countries in order for them to orchestrate global trade.
It also provides loans to governments and debt relief. This institution has helped developing nations
grow so that companies, like Meat Queen, will be interested in establishing businesses there due to
customer potential.
Let us have another hypothetical example. Meet John. He is the leader of a lesser-developed
country (LDC), and like many leaders of LDCs, John’s country has a problem. His country is having
trouble developing economically because it simply does not have the resources and money available
to make necessary investments to develop, such as investments in infrastructure and education.
John, like many leaders of LDCs, decides to turn to the International Monetary Fund for help.
The IMF It consists of nearly all sovereign states in the world today and is headquartered in
Washington, D.C.
The International Monetary Fund was legally established in 1945 with 29 members for starters.
More members joined as time passed, but because of Cold War potential membership growth was
prevented, as the Soviet Union, many of its allies
and its client states did not join. In the 1970s, the
IMF started to assist poor countries with
concessional financing, offering financing terms
more favorable than what the private market
offers. The fall of the Soviet Union and dissolution
of the communist bloc resulted in the ability of
more states to join the IMF, and it achieved nearly
universal membership in the 1990s. Today, the IMF
is attempting to help create stability during the
ongoing globalization process.
The IMF's overall goal is to help encourage
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m=isch&sa=X&ved=0ahUKEwiqksHn_O7eAhXMvLwKHUrqAGUQ_AUIDigB&biw=1242&bih=553#imgrc=-ZAPRv6Ov3y2JM:
economic growth and stability on a global basis. It

does this through three primary activities namely: surveillance, technical assistance and lending.
As part of its membership obligations, John’s country has agreed to allow the IMF to review
the country's economic and financial policies. Member states also agree to pursue policies that
cultivate disciplined growth, avoid currency rate manipulation and provide the IMF with data
sufficient to fulfil its surveillance role. In fact, member states undergo annual consultations with the
IMF to examine their policies, and its findings are shared with the country being reviewed.
The IMF also engages in surveillance at the regional and global level. In conducting regional

surveillance, the IMF examines polices of regional currency unions. For example, members of the
European Union use a regional currency, the Euro. Aside from monitoring regional currencies, the
IMF also monitors the economic outlook for specific regions and important economic issues. Regions
include Asia Pacific, Europe, Middle East and Central Asia, Sub-Saharan Africa and the Western
Hemisphere. Global monitoring is based on three reports: 1) the World Economic Outlook reports,
2) Global Financial Stability Reports, and 3) the Fiscal Monitor reports.
TECHNICAL ASSISTANCE
The IMF also provides technical assistance to middle-and low-income countries, which involves
help with macroeconomic policies. Macroeconomic policies are concerned with the big economic
picture of an economy, such as a state's unemployment, growth rate, GDP and inflation. Technical
assistance is also provided to help create and implement programs to reduce poverty, manage and
reduce debt and spur economic growth.
The IMF will send a team to John’s country to provide training in key economic areas,
including central banking, monetary policy, exchange rate policy, tax policy, administration and
collection and use of economic statistics. The IMF may even bring in short-term and even long-term
specialists who reside in the country and work side-by-side with its officials.
LENDING
The IMF also serves as a lender to its members. Members go to the IMF for loans when they
cannot find favorable loan terms through other avenues. Two general types of financing are
available to John’ country. The IMF provides loans to help restore stability to countries with
struggling economies. The funds may be used to rebuild a country's cash reserves, stabilizing an
erratic currency or pay for imports. All these things will help John’s country grow economically. The
IMF also loans funds to low-income countries to help them develop economically and reduce poverty.
Finally, certain extremely poor courtiers with insurmountable debt may be eligible to debt relief,
including debt forgiveness.
Before we move on to discussing the last institution that facilitates economic globalization, it
is important to examine another institution that is closely related to it, the General Agreement on
Tariffs and Trade (GATT).
( ) (www.wto.org)
International trade is the exchange of goods between national borders. Many nations
depend on international trade agreements, such as the General Agreement on Tariffs and Trade
(GATT), to stimulate their economies. The General Agreement on Tariffs and
Trade, or GATT for short, was drafted in 1947 as a provisional agreement
to regulate international trade. However, the International Trade
Organization (ITO), which was supposed to take the place of GATT, was
never ratified. GATT was enforced from January 1, 1948 until December 31,
1994, when it was finally replaced by the World Trade Organization (WTO) on
January 1, 1995.
Members of the GATT included 23 nations that originally signed in
1947 in Geneva before it went into effect. The signatories, or contracting https://www.google.com.ph/search?q=gatt+logo&rlz= 1C1CHB D_ en
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parties, comprised the following: Australia, Belgium, Brazil, Burma, Canada,

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Ceylon, Chile, China, Cuba, Czechoslovakia, France, India, Lebanon, Luxembourg, The Netherlands,
New Zealand, Norway, Pakistan, Southern Rhodesia, Syria, South Africa, The United Kingdom, and The
United States.
It is always helpful to examine other world events that may have impacted the signing of any
trade agreement. For this discussion, World War II ended in 1945, just a couple years prior to GATT.
Many European countries were economically devastated in the aftermath of World War II. Creating
an international trade agreement was one way to help stimulate the world economy.
More than a decade before GATT, during the Great Depression which took place from 1929
until the late 1930s, nations used protectionist strategies as a way to safeguard their economies.
This means that nations instigated policies that restricted trade between nations. Instead of helping
national economies, protectionist strategies stagnated economic conditions.
The United States fought World War II mostly on foreign shores and did not suffer as
devastating effects as most of Europe. Thus, the United States promoted the idea of creating a
trade agreement that lowered trade barriers and tariffs (taxes imposed on imports) to bolster the
world economy. Many of the 23 nations that originally signed the agreement fought the war on the
Allies side with the United States. Ironically, it was the United States' refusal to ratify the ITO
charter in 1950 that left the provisional GATT in place for 47 years.
The purpose of GATT was to lower trade barriers among the signatories. It was also
expected that GATT would increase incomes and standards of living, develop national resources, and
expand trade. GATT also allows for the creation of the MFN (Most Favored Nation) designation, which
permits the designated country to export goods with very low tariffs and other beneficial terms.
GATT aims to make sure that every member enjoyed the same trade terms.
How many of you have ever gone to the grocery store and gotten a card that the cashier
swipes every time you purchase something? When the store discounts an item, every card-carrying
member is given that discount without discrimination. This is the idea behind the most favored
nation — every GATT member gets the same deal. GATT members hoped that developing nations,
especially, would profit from these terms.
An example of the power of GATT can be seen in their ability to ensure a living wage
worldwide. The GATT fights for companies to pay above minimum wage to help working conditions.
GATT is considered a success as over 100 countries are members and covers 90% of world trade.
Then in 1995, the GATT actually joined the World Trade Organization.
( ) (www.wto.org)
Have you ever wondered who helped make all the rules and regulations for how businesses
and countries trade goods with each other? Today's global marketplace is extremely complex, with
thousands of moving parts. Many of the
The World Trade Organization
electronics, clothes you wear, or food you
enjoy may be partly made possible by the
agreements and policies that the World Trade
Organization has helped establish.
The World Trade Organization (WTO) is
a global organization that helps countries and
producers of goods deal fairly and smoothly
with conducting their business across
international borders. It mainly does this https://www.google.com.ph/search?q=the+world+trade+organization&rlz=1C1CHBD_enPH7 67PH767&source=lnms&tbm
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through WTO agreements, which are negotiated and signed by a large majority of the trading
nations in the world. These documents act as contracts that provide the legal framework for
conducting business among nations. There are several groups within the WTO, with the highest
decision-making authority going to a group known as the Ministerial Conference, which can make
decisions on all matters and trade disputes among members.
The WTO was officially created in January of 1995 and essentially replaced the General
Agreement on Tariffs and Trade (GATT), details of which will be discussed later on. The WTO had
been in force since 1948, a few years after the Second World War. Before it was created, an
initiative to start something similar known as the International Trade Organization (ITO) took place.
Unfortunately, the ITO treaty was not approved by the U.S. and a few other countries and ultimately
never went into effect.
In the 1980s, as the world economies became more global in trade and business, it became
evident that GATT was not built or structured to address many of the new global trading challenges
that were arising. As a result, the biggest trade negotiating event on record began in 1986. It was
known as the Uruguay Round, seeing as it took place in Punta del Este, Uruguay. One of the final
accomplishments of this round was the creation of the WTO. The WTO is currently working on new
negotiations and agreements, known as the Doha Development Agenda, and these started in 2001.
As stated earlier, the WTO is a complex international organization with many moving parts.
Simply stated, its main purpose is to help trade flow smoothly for all member nations so that they
may increase the well-being of their countries and standards of living for their citizens. It works to
educate and inform companies and governments on the acceptable rules that govern trade (i.e.,
imports and exports). When issues arise, it works to settle disputes based on the legal agreements
that the countries have adopted and ratified in their governments.
In short, the WTO does many things. Here are just a few of its main focuses:
 Cut living costs and raise living standards through more economic trade and competition among
countries - As more trade happens, consumers will have more choices for low cost and higher
quality products.
 Settle disputes and reduce trade tensions - This is by acting as a governing body and
discouraging unfair practices, such as export subsidies and dumping products at below cost to
gain market share.
 Stimulate economic growth and create jobs - This is by lowering trade barriers such as customs
duties, tariffs, import bans, and quotas that countries may have. This allows companies to enter
new markets and grow their business, often resulting in higher revenues and more jobs.
 Give smaller countries a voice - Over three-quarters of WTO members are developing countries
and countries in transition to market economies. The WTO works to ensure that these countries
are heard from and it is not just the top seven to ten economies of the world driving
agreements and policy.
 Contribute to peace and stability - Many political and government tensions can arise from
economic disputes between countries. By helping develop agreements that ensure free and
smooth trade, countries should experience more peace and stability among each other.
As of 2017, there are 164 member countries that are part of the WTO. Countries such as the
United States, Canada, China, Honduras, Japan, Mexico, Pakistan, Singapore, the Russian Federation,
Australia, and South Africa are just a few, with Afghanistan as the 164th country to join.
Many countries officially joined in 1995 when the WTO replaced GATT, which they had been a

part of before. Countries who want to join will often become an observer first. This allows them to
follow discussions that are of direct interest to them and get to know how the WTO works better. It
is important to note that you do not have to become a member if you are an observer. Those
countries that do apply for membership will find that the process of becoming a WTO member is
quite unique to each country, based on its economic development and current trade structure. The
whole process takes about five years on average.
Now that we have learned the major drivers of economic globalization, let us now proceed to
identifying the existing world system in this modern time and age. Of course, it is best to go back
to the basic economic models used in the past to describe economic growth.
Pretend that Person A is on his way to a place because he is taking the day off. Person A
then takes the very busy expressway, which has three lanes on each side. Now imagine, you are
inside of a helicopter far above the expressway, looking at Person A’s car from a bird’s eye view.
You can see the progress of every car on it, and you can see the movement on the expressway, like
it is a big machine with moving parts. As you watch the traffic from above, you notice that the cars
are going an average of 55 miles per hour, considering the speed limit sign posted that says 55. If
you are on this expressway, 55 is your potential speed. From time to time, however, the cars slow
down. Let us look at two scenarios that would cause a slowdown.
Imagine that traffic is slowing down on the expressway right now. Why is it slowing down?
Because there are too many cars trying to get on at the same time. There is an influx of cars trying
to merge on to the expressway ahead. What happens next? The average speed of the cars goes
below 55 miles per hour as all of the cars behind slow down for a few minutes. This machine made
up of individual cars goes below its potential. Eventually, though, this situation resolves itself when
the extra cars get on to the expressway. The cars begin moving faster again, and traffic returns to
its potential of 55 miles per hour. Nothing is required to help the cars, they simply slow down for a
little bit.
Now let us look at another scenario. Imagine there is an accident between the place where
Person A was from and the place where this person is heading to. A big business truck carrying
products and services flips on its side and blocks the road. Fortunately, the driver is okay, and he
gets out of the truck. However, the truck is blocking everyone from moving through. When this
happens, it takes a long time before traffic is traveling at its potential speed again. In fact, traffic
stops completely until the police arrive on the scene and tow trucks come and clear the accident
from the road. Finally, even after a bad accident like this, traffic will start up again and it will reach
its potential speed of 55 miles per hour. But there is no telling how long it would have taken to clear
the accident without the help of the police and the tow trucks.
Over the years, economists came up with two basic models of the economy. There are other
variations of this, but these are the basic concepts. The first one is called the Classical Model, which
started just about the same time as Beethoven. The other model is called the Keynesian Model,
named after the famous economist John Maynard Keynes. This is a newer model. When you hear the
word 'Keynesian' just think of the Great Depression, because this model came about as a result of
the Great Depression.

The Classical Model was popular before the Great Depression. It says that the economy is
very free-flowing, and prices and wages freely adjust to the ups and downs of demand over time.
(Mankiw, 2007). In other words, when times are good, wages and prices quickly go up, and when
times are bad, wages and prices freely adjust downward.
The major assumption of this model is that the economy is always at full employment,
meaning that everyone who wants to work is working and all resources are being fully used to their
capacity. The thinking goes something like this: if competition is allowed to work, the economy will
automatically gravitate toward full employment, or what economists call potential output - just like
the expressway at an average speed of 55 miles per hour. Remember what happened when traffic
slowed down because there were too many cars? After a few minutes, everything went back to
normal. Classical economists believe that the economy is self-correcting, which means that when a
recession occurs, it needs no help from anyone.
A second model is called the Keynesian Model. As mentioned earlier, this model came about as
a result of the Great Depression. Economist John Maynard Keynes observed that the economy is not
always at full employment. In other words, the economy can be below or above its potential. During
the Great Depression, unemployment was widespread, many businesses failed and the economy was
operating at much less than its potential (Mankiw, 2007).
Think back of the expressway that Person A was driving on. Picture Person A behind the wheel,
when the business truck fell on to its side and traffic came to a complete standstill for a long time.
It was stuck until the police and the tow truck came. When economist John Maynard Keynes was
observing the Great Depression, he realized that the economy could be well below its potential for a
long time, and that something was causing it to get stuck. It may be self-correcting like the
classical economists were saying, but it was taking way too long. In the meantime, people were
losing jobs and were suffering. Keynes believed that the government and monetary leaders should do
something to help the economy along in the short run, or the long run may never come. In fact, he
is quoted as saying 'In the long run, we are all dead.'
Most of us can identify with this idea when we think about the economy. Sometimes the
economy is strong and sometimes it is weak. This is exactly what Keynes' model recognizes. The
economy may start out in a state of balance in which everyone is fully employed, but strong demand
for products and services temporarily pulls the economy above the full employment level. This is
what economists call an expansion. When weaker demand temporarily pulls the economy below the
full employment level, economists call that a recession.
: ?
We just had an overview of the two models of economic growth. The Classical Model says that
the economy is at full employment all the time and that wages and prices are flexible. The Keynesian
Model says that the economy can be above or below its full employment level and that wages and
prices can get stuck. So, which model is the correct one?
Just think about the expressway again for a moment. If you watch the expressway for a long
time, you will notice that from time to time, too many cars try to enter the expressway at once, and
traffic slows down. This happens more frequently, but when it does, traffic returns to its potential
speed of 55 miles per hour without any help. Once in a long while, there is a major accident though.

It does not happen very often, but when it does, chances are, if the police and the tow trucks do
not show up, it could take a really long time before traffic returns to its potential speed of 55 miles
per hour.
When it comes to these two economic models, both of them are correct, because they are
describing the economy at two different points in time. The Classical Model does a great job of
describing the economy in the long run - where resources are fully employed and everyone is
working. The Keynesian Model does a great job of describing what happens when there is a recession
and people are out of work or when the economy is temporarily overheating and a shortage of
workers takes place.
Going back to what is the world-system today, we look back to global Keynesianism in the
mid-1940s to the early 1970s, where governments have poured money in their economies, allowing
people to purchase more goods and, in the process, increase demand for these products. As a
result, prices also surged. Countries in the West and some in Asia (like Japan) accepted this price
build-up because it was complemented with an economic growth and reduced unemployment. The
theory is simple: as prices increased, companies would earn more and would have more capability to
hire more workers. The Keynesian model tells us that this was a necessary trade-off for economic
development.
For the macroeconomists who help to manage the economy of an entire country, it is a
constant balancing act between too much unemployment or too much inflation (Mankiw, 2007).
Neither are good for the economy, but in healthy economic environments, they can act to
counterbalance the other. Note that this is only for 'healthy' economic environments. In unhealthy
economic situations, such as the one that former President Richard Nixon was faced with throughout
his time in office, fixing the economy can be much more difficult. This is because sometimes high
unemployment and high inflation rates can actually coexist. When this combination happens, it is
known as stagflation, largely because the economy is in a stagnant state between high
unemployment and high inflation.
In order to cope with these higher prices, President Nixon reluctantly agreed to use the price
control mechanisms given to him by an opposition Congress. However, while these controls proved to
be useful in the short term, another crisis loomed on the horizon. OPEC, the Organization of
Petroleum Exporting Countries, refused to sell oil in 1973. This caused the price of oil to quadruple
and led to high rates of inflation because more and more money was necessary to buy things.
Meanwhile, the shortage of jobs was exacerbated by the lack of oil supply. Many were unsure
about how their companies would be able to stay in business. The result: high unemployment coupled
with high inflation, creating the classic example of stagflation. The ensuing stagflation ruined much
of the economic growth of the 1950s and '60s, while driving up prices significantly. To make matters
worse, the stock markets crashed in 1973-1974 after the U.S. stopped linking the dollar to gold, which
effectively ended the Bretton Woods System. The result was a phenomenon that Keynesian
economists could not have predicted known as stagflation (in which a decline in economic growth
and employment (stagnation) takes place alongside a sharp increase in prices (inflation).
Ultimately, it was the oil crisis that pushed the American economy into stagflation. However,
the rising inflation rates as a result of the Bretton Woods System de facto failure were a major
issue as well. But the question remained on how to resolve stagflation. In short, Americans found a
way to live without oil. They opted out of big gas-guzzling cars in favor of smaller models, meaning
that less oil was needed. Additionally, they moved towards businesses and processes that required
less oil in favor of other fuels. A primary winner in this field was coal, of which the United States

had a very large domestic supply. Eventually, through changes such as these, the United States was
able to bring itself out of stagflation.
Around this time, a new form of economic thinking was beginning to challenge the Keynesian
paradigm. It has been argued that the government’s practice of pouring money into their
economies had caused inflation by increasing demand for goods without necessarily increasing
supply. They argued that government intervention in economies alter the proper functioning of the
market.
Then emerged neoliberalism (Vincent, 2009). From 1980s onward, it became the strategy of
the U.S. Treasury Department, the World Bank, the IMF and the WTO. The policies they forwarded
came to be called the Washington Consensus, which dominated global economic policies from 1980s
until the early 2000s. Its supporters pushed for minimal government spending to reduce
government debt, privatization of government-controlled services (like water, power,
communications, and transport), believing that free market can produce the best results, and finally,
they pressured governments in the developing world to reduce tariffs and open up their economies
in order to experience a quick progress.
Of course, advocates of the Washington Consensus knew that along the way, there would be
certain industries that would be affected and possibly die, but they considered it necessary to
achieve a long-term economic growth.
Neoliberal politicians like British Prime Minister Margaret Thatcher and U.S. President Ronald
Reagan justified their reduction in government spending by comparing national economies to
households. Thatcher, in particular, promoted an image of herself as a mother, who restricted
overspending in order to reduce the national debt. However, the household analogy has posed a
problem in that, governments are not households — governments can print money and households
cannot. Also, the governments’ taxation systems provide them a steady flow of income that allows
them to pay and refinance debts steadily.
The defects of the Washington Consensus became evident despite the successes of neoliberal
politicians in running their own economies. For instance, the post-communist Russia. After the
collapse of communism in the ‘90s, the IMF called for the immediate privatization of all government
industries, which would actually free the industries from corrupt bureaucrats and pass them on to
private investors whoa re more dynamic and independent. Unfortunately, only those who are
wealthy enough under the previous communist order had the money to purchase these industries.
In fact, in some cases, the economic elites relied on easy access to government funds to take over
the industries. This practice has established an oligarchy that still dominates the Russian economy
up to this date.
MARKET INTEGRATION
There have been substantial advancements in in-
ternational market integration in the 19th century, which
led to the creation of a true world economy. Of course,
technological advances played a major role in this. From
https://www.google.com/search?q=railroad+locomotive&rlz=1C1CHBF_enPH803P H80 3&source=lnms&tbm=isch&s
the 1830s, the world transport has been revolutionized as a=X&ved=0ahUKEwig2uniy7z fAhUPZt 4KHVLLD gkQ_AUIDigB&biw=1280&bih=560#imgrc=Z5HjiT7K63BQoM:
vast improvements in the railroad locomotive and the marine steam engine took place. Steamships

connected the world's ports to each and from the said ports, the railroads ran inland, creating
a new and faster world transport network. This resulted to a fall in freight rates since goods can
be carried across the world to ever more distant markets and still be cheaper in those faraway
places than the same item produced locally.
Closely related to these changes in the transport
system was the electric telegraph, whose lines often ran
along the new railroad networks. Telegraph systems
were established in most countries, including the major
market of British India, until 1854. Beginning with the first
transatlantic cable, which was laid by steamship in 1866,
these existing domestic telegraph systems were linked
together by marine cables. The resulting international
information network was crucial in communicating details
of prices and price movements, reducing the cost of
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making deals and transactions.

A major significant change in the
infrastructure came in 1869 with the opening
of the Suez Canal, which linked
the Mediterranean Sea by way of Egypt to
the Red Sea. With this opening, ships sailing
from Europe to Asia could take the new
shortcut rather than sail all the way around
Africa.
As a result, Asia was immediately some https://www.google.com/imgres?imgurl=http://www.britishempire.me.uk/wpimages/wpc4c43242_05_06.j pg&imgrefurl=http://www.bri tishem-
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terms, and freight costs fell. Yet, the low
efficiency of early steamships meant that many bulk cargoes such as rice were still carried to
Europe from Asia by sail around the Cape of Good Hope. Technological change in the shape of
steel hulls and steel masts made sailing ships larger and more efficient, and they continued to be
active until the more efficient triple-expansion engine finally drove the sailing ships from the oceans
during the last quarter of the nineteenth century.
RISE OF FREE TRADE

The physical changes that brought about the
lowering freight and transaction costs were not
the only forces that stimulated market integration.
During that time, it was normal for countries to
impose import duties on foreign goods with the
objective of gaining an inflow of gold in their
foreign trade accounts by selling more to each of
their trading partners than they bought from them. https://www.google.com/search?q=free+trade&rlz=1C1CHBF_enPH803PH803&s ource=lnms&tb m=isc h
&sa=X&ved=0ahUKEwizqf3o07zfAhXLE4gKHVFBCv4Q_AUIDigB&biw=1280&bih=560#imgrc=0rXkiBDloUmGkM:
However in 1846, the merchants of Manchester,

England (which is the center of the world's cotton textile industry), struck their famous victory
for free trade by forcing the British government to abandon tariffs on all imported goods apart
from a few luxury items. The tariffs on wheat were the first to go, opening up the Great Plains of

the United States for wheat production to supply to Britain. With this free trade, trade relations
with a foreign country no longer have to balance or be in surplus. Instead, a deficit in trade with
one country could be offset by a surplus in trade with another country, thus, liberalizing world trade
in a way never previously seen. Britain moved heavily into deficit on trade account, but this was
sustained by considerable invisible inflows generated by her substantial overseas investments,
particularly in the railroad systems of the United States.
This policy of open markets became a dominating principle extended through much of
the British Empire, including the key market of India, although Canada and the State of Victoria in
Australia chose to be notable exceptions. The United States retained import duties, and after short
periods of trade liberalization, most European countries also returned to protectionism so that their
new manufacturing industries could establish themselves safe from the competition of cheaper
goods from Britain. Note that Britain itself ran heavy trade deficits with the United States due
largely to grain purchases, and it also had deficits with the newly industrialized countries of
continental Europe, due to purchases of manufactured goods. But then Britain was able to sustain
these deficits because of its own sales of manufactures, especially cotton yarn and textiles, to India
and the rest of Asia, including China. So the open-market polices of the British Empire played a
crucial role in sustaining a complicated interrelated mesh of world payments, and newly
industrializing countries took advantage of these open markets whilst maintaining their own
protective walls. Each country could specialize in producing those goods they were best endowed by
nature to produce, and could exchange them for the other products they needed. The vast market
of British India was crucial, and though Britain, the colonial power, was the leading supplier of
manufactured goods there, Germany and other industrial nations were free to trade, and did so
very effectively. India itself had big surpluses with the rest of Asia, particularly China, because of its
sales of opium and of cotton yarn and textiles from Bombay.
A CLOSER LOOK AT THE INTEGRATION OF GRAIN MARKETS

AT THE TURN OF THE CENTURY
Within Asia, major effects
of market integration were seen.
In areas where markets are fully
integrated, commodity prices
equalize across that area.
Fluctuations in prices across the
reg i on h a v e s yn c h ron i z ed ,
demonstrating that they are sub-
ject to the same influences.
Transport costs became crucial
wherein a commodity will only
move from one location to
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another if the cost of production in
the place of origin plus the cost of transport is less than the prevailing price for that commodity in
the destination. In Asia, the late nineteenth century saw market integration in one of Asia's key
commodities: rice. Prices moved in the same way in the exporting countries (Burma, French
Indochina, and Siam), in the great redistribution centers (the British free ports Singapore and Hong

Kong), and in the receiving countries (India, Ceylon, the Straits Settlements, the Dutch East Indies,
the Philippines, China, and Japan). The movement of migrant workers to tin mines and rubber and
tea plantations in places like the Straits Settlements, the Dutch East Indies, and Ceylon had created
increased demand for rice in those countries which was now satisfied by rice imports from those
countries capable of producing supplies. Shifts in the flow of rice from country to country and from
year to year reflected harvest variations in both producers and consumers. The transport and
information networks established in the second half of the nineteenth century had created an
intra-Asian economy in which the income received by rice cultivators was spent on the products of
the new manufacturing industries of the region, particularly the cotton yarn and textiles of the
factories of Bombay, Shanghai, and Osaka. Rice was also supplied in very substantial quantities to
Europe, where it was used for food, brewing, and starch. It joined a flow of wheat to Europe from
Karachi. This period saw the integration of the world wheat market and the world rice market,
creating a global market in basic food grains. The two markets interlocked in British India, which
both consumed and exported both crops. Now the world price of wheat and rice moved in unison,
which meant that the incomes of U.S. farmers and other world wheat producers were influenced by
forces such as a monsoon in India!
But this integration of the world wheat markets and world rice markets had serious
consequences. During the 1920s there was great expansion in the amount of land under wheat and
rice in the world at large. Normally, good wheat harvests were offset by poor rice harvests, and
good rice harvests were offset by poor wheat harvests. But when favorable climatic conditions
occurred for both grains, particularly beginning in 1928, this resulted in a glut, forcing down prices
and bankrupting farmers all over the world. As farm incomes fell, so did the ability of farmers to
purchase manufactured goods, and this affected manufacturers, contributing to the
worldwide Great Depression of the 1930s. As the depression bit, countries increased their tariff
duties to keep foreign products out of their markets in order to help their own manufacturers and
farmers. In 1932 even Britain, with its deep commitment to free trade, was forced to turn to
protectionism and surrender the free trade ideal. Free trade and open markets were unfortunate
casualties of the Great Depression. In fact, their breakdown contributed to the slump's
prolongation. The restoration of free trade and open markets was one of the primary aims of those
planning the operation of the world economic system after the end of world hostilities in 1945.
In early historical periods, as both cities and countries extended their reach beyond their
own borders, a form of globalization was initiated which then followed complex patterns of
interactive engagements organized through trade and directly influenced by the emergent and
subsequently dominant technologies, especially in shipping and navigation (Harvey, 1990).
The modern nation-state system emerged in ways that allowed invention and social
organization to combine that vastly increased world capital and the wealth of nation states.
Coupled with an extraordinary rise in global population that attended the industrial revolution, the
societies that arose would invent new ways to organize the world itself through colonialism and
imperialism that vastly weakened their interactions between peoples, states and regions such that a
clearly differentiated era of global interaction can be said to exist (Harvey, 1990). Global
corporations are characterized in terms of patterns of equity ownership, corporate ownership and
management of subsidiaries, the relationship of “central” organizational functions to supply and
distribution chains, etc.., which are actually attributes of corporate structures in the most

prosperous and globally-engaged nations (largely through colonial and imperialist relationships.
As the world emerged from the vast destructions of WWII, economic recovery and expansion
were led by American corporations, which for a period from the end of the war until the re-entry
of Japanese and European corporations onto the global scene essentially stood for what by then
had come to be viewed as multinational corporations (MNCs) (Barnet & Muller, 1974). This period
from the end of WWII to the present can be viewed, therefore, as the period of transformation of
the global corporation.
The contemporary global corporation is simultaneously and commonly referred to either as a

multinational corporation (MNC), a transnational corporation (TNC), an international company, or a
global company. But what constitutes global corporations?
As stated in Neubauer’s “The Rise of the Global Corporation” (2014):
 International companies are importers and exporters, typically without investment outside
of their home country;
 Multinational companies have investment in other countries, but do not have coordinated
product offerings in each country. They are more focused on adapting their products and
services to each individual local market.
 Global companies have invested in and are present in many countries. They typically market
their products and services to each individual local market.
 Transnational companies are more complex organizations which have invested in foreign
operations, have a central corporate facility but give decision-making, research and develop
(R&D) and marketing powers to each individual foreign market.
EMERGING MARKET GLOBAL CORPORATIONS (Neubauer, 2014):

1. Basic Element (Russia) is a world leader in alumnia production
2. Bharat Forge (India) is one of the world’s largest forging companies
3. BYD Company (China) is the world’s largest manufacturer of nickel-cadmium batteries
4. CEMEX (Mexico) has developed into one of the world’s largest cement producers
5. China International Marine Containers Group (China) is the world’s largest manufacturer of
shipping containers
6. Cosco Group (China) is one of the largest shipping companies in the world
7. Embraer (Brazil) has surpassed Canada’s Bombardier as the market leader in regional jets
8. Galanz Group (China) has a 45% share of the European and a 25% share of the US microwave
market
9. Hisense (China) is the number one supplier of flat-panel TVs to France
10. Johnson Electric (China) is the world’s leading manufacturer of small electric motors
11. Nemak (Mexico) is one of the world’s leading suppliers of cylinder head and block casings for the
automotive industry
12. Sistema (Russia) is a conglomerate with a focus on telecommunications
13. Tata Chemicals (India) is an inorganic-chemicals producer with a significant global market share
of soda ash
14. Techtronic Industries Company is the number one supplier of power tools to Home Depot
15. Wipro (India) is the world’s largest third-party engineering services company.

- (Taken from Toyota Corporate History)
Toyota is one of the most well-known automobile companies in
the world. Starting out as a local brand in Japan, it has grown to a
giant global brand.
It has been said that Toyota started using domestic focus at
first, where customers are from the home country. This is known as
domestic marketing. Then, it began to embrace export marketing that
includes indirect vs. direct exporting to its choice of country plus its home country customers. This
was followed by international marketing where it markets in many countries using of multi-domestic
marketing. Since it caters to many markets, it then moved to the next phase of economic
globalization which is multinational marketing, where consolidation was made possible on a regional
basis. Toyota is currently in the last phase, which uses global marketing where interaction goes
international and multinational, with the whole world as its market.
HISTORY OF TOYOTA
The finding of the Toyota Motor Company came from the mind of Toyoda Sakichi. Sakichi gave
his son Kiichiro the money to urge him to study the possibility of manufacturing automobiles in
Japan.
Kiichiro produced his 20 first vehicles in 1935 and in 1936, the automobile department
produced 1,142 automobile vehicles, 910 trucks, 100 cars, 132 buses. In 1937, Kiichiro and Risaburo
decided to corporate the automobile department as a separate company to attract outside
investors and named it Toyota Motor Company.
However, WWII started and damaged the whole market. After WWII, they had to completely
reinvent themselves. They were facing many challenges in this like: the Japanese market was too
small for them to get technology to mass-produce like American companies since the technology
aspect was not good enough); Japanese economy was very damaged — there was too little capital
for investment (economy aspect was not good enough); It was hard to lay off workers because
Americans established new labor laws that gave employees more power (political aspect was not
favorable); They slowly increased mass production (not as well as international countries) but Toyota
was still not able to expand overseas until the late 1960s because of one main reason: Japanese
cars were not competitive enough.
For example, in 1957, the Toyota Corona’s price was $1,694 while the Volkswagen Beetle was
priced at $1,111. Companies in other countries had cheaper mass production, giving them a competitive
advantage. They still tried to enter the US market in the 1950s even with a higher price, and they
realized there was an issue with the engine. After this issue, they learned and redesigned their
model.
By 1964, they finally had a car that was competitive internationally, after which they continued
growing globally.
SUCCESS FACTORS:
Toyota did many things to overcome their challenges and rise in the global market. There are
3 unique factors that made Toyota rise as a global corporation:
(1) Lean Production System — In normal mass production, they made limited products in huge
quantities in a long production line. Each of the employees was doing one small, single task at a

time. This caused issues because they needed more factory space for the production lines and also
needed more employees because each was only doing one task. Toyota instead adopted a lean
production system; they produce each part in small quantities, and also employed people were
multi-specialized so they could do more jobs at one time. As a result, Toyota was able to harvest
the following advantages: less time taken in each process; lower costs of production; and with lower
cost of production, consumers can enjoy low price.
(2) Supplier Relations

Typical US car manufacturers produced half of their parts in the company itself. They
outsourced the other half by having bids with suppliers. Toyota did this for a while but then changed
their strategy. They started outsourcing most of their parts production, and instead of having bids,
they had long-term relationships with suppliers. Suppliers therefore gave discounts and were more
loyal to Toyota.
(3) Customer Relations

Toyota has data banks at their showrooms where they can collect data about their customers
and their preferences. They take these preferences into consideration when producing their cars to
make sure they can meet their needs and wants. By doing this, they develop a reputation that they
always meet customer expectations. This is what has helped them really increase their market share
and beat their rivals.
The main source of Toyota’s competitive advantage has been its ability to improve its
products constantly, either by having new ways of production, building relationships with high quality
suppliers, or taking consumer expectations into mind. Their constant change makes it hard for rivals
to keep up with them. This is how it has grown into a global brand and will continue to expand
further, as long as it keeps up this culture of constant improvement.

EVALUATE
Worksheet 1
Read and analyze the story of Toyota in the previous pages. Then, answer the questions
that follow.
1. Identify the attributes of Toyota as a global corporation.
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2. What were the challenges that Toyota encountered throughout its history?
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3. How did globalization contribute to Toyota’s success?
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EVALUATE
Worksheet 2
Write a summarized version of the 2008 Global Financial Crisis. Use the following guide
questions to accomplish this worksheet.
1. What was the 2008 Financial Crisis?
2. What caused the Global Financial Crisis?
3. How did the Financial Crisis end?
4. When did the financial crisis end?
5. Reflect on the effect of market integration on the 2008 Financial Crisis.
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EVALUATE
Worksheet 2
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EVALUATE
Worksheet 3
If you are to design the 21st century paper bill, showing the integration of markets around the
globe, how will it look like? Create your own design of any paper bill that would best represent the
global economy. You may use coloring materials to make your paper bill more creative.
Briefly explain the elements in your paper bill. How can you say that it represents the global
economy?
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EVALUATE
Worksheet 4
Go back to our lesson on financial institutions. Make an assessment of the financial institutions
that exist in the Philippines. Then, make a comparison about the global financial institutions and
that of the Philippines’.
Global Financial Financial Institutions in the Similarities

Institutions Philippines

REFERENCES:
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Barnie, D. (1969). East and West of Suez: The Suez Canal in History. Oxford, U.K.: Clarendon Press.
Bello, W. (2006). The Multiple Crises of Global Capitalism. In Deglobalization: Ideas for a New World
Economy. Quezon City: Ateneo de Manila University Press, pp. 1-31.
Bernstein, P. (2008). A Primer on Money and Banking, and Gold. New York: Wiley.
Bretton Woods Project (2010)"Out of sight, out of mind? IFC investment through banks, private equity
firms and other financial intermediaries", Bretton Woods Project, London
Ferguson, N. (2009). The Ascent of Money: A Financial History of the World. Penguin.
Greco, T. (2001). Money: Understanding and Creating Alternatives to Legal Tender. White River
Junction, Vt: Chelsea Green Publishing.
Kindleberger, C. & Aliber, R. (2005). Manias, Panics, and Crashes: A History of Financial
Crises. Palgrave Macmillan.
Kohler, G. & Chaves, E. (2005). Globalization: Critical Perspectives. Hauppauge, New York: Nova
Science Publishers
Latham, A. (1986). The International Trade in Rice and Wheat Since 1868: A Study in Market
Integration. In “In The Emergence of a World Economy” by Wolfram Fischer, R. Marvin McInnis,
& Jurgen Schneider. Wiesbaden, Germany: Franz Steiner Verlag.
Latham, A. (1996). Modernisation and Progress: Southeast Asia in the World Economy 1860–1941.
In Proceedings of the International Symposium Southeast Asia: Global Area Studies for the
Twenty-First Century. Kyoto, Japan: Centre for Southeast Asian Studies, Kyoto University.
Latham, A. & Neal, L. (1983). The International Market in Rice and Wheat, 1868–1914. Economic History
Review 2, 36.
Mankiw, G. (2007). Macroeconomics (6th ed.). New York: Worth Publishers.
Mises, L. (1981). The Theory of Money and Credit. Indianapolis, IN: Liberty Fund, Inc.
Mishkin, F. (2007). The Economics of Money, Banking, and Financial Markets (Alternate Edition). Boston:
Addison Wesley.
Mingst, K. (2014). Essentials of international relations. W. W. Norton & Company.
Neal, L. (1990). The rise of financial capitalism. Cambridge University Press.
Neubauer, D. (2014). The Rise of the Global Corporation. London: Sage.
O'Rourke, K. & Williamson, J. (2002). When did Globalization Begin. European Review of
Economic History, 6 (2002), 23–50.

Pilbeam, K. (2005). Finance and Financial Markets. New York: Palgrave, MacMillan.
Reinhart, C & Rogoff, K. (2009). This Time is Different: Eight Centuries of Financial Folly. Princeton
University Press.
Sébastien, C. (2008). Teaching Minsky's Financial Instability Hypothesis: A Manageable

Suggestion. Journal of Post Keynesian Economics, 31:1, 125-138, DOI: 10.2753/PKE0160-3477310106
Siklos, P. (2001). Money, Banking, and Financial Institutions: Canada in the Global Environment. Toronto:
McGraw-Hill Ryerson.
Taylor, B. (2013). The Rise and Fall of the Largest Corporation in History. BusinessInsider.com.
Retrieved 8 August 2018.
Van Wincoop, E. (1999). How Big are Potential Welfare Gains from International Risk
Sharing? Journal of International Economics. 47 (1): 109–135.
Vogt, J. (2014). Fear, Folly, and Financial Crises – Some Policy Lessons from History. UBS Center Public
Papers, International Center of Economics in Society, Zurich.
Wright, R. & Quadrini, V. (2012). Money and Banking: Financial Intermediaries.
Valdez, S. (2007). An Introduction To Global Financial Markets. Macmillan Press.
Vincent, A (2009). Modern Political Ideologies. Hoboken, New Jersey: Wiley-Blackwell.

LESSON 3
THE GLOBAL INTERSTATE SYSTEM & CONTEMPORARY GLOBAL GOVERNANCE
Lesson Objectives:
a. Explain the effects of globalization on governments.
b. Identify and give details on the roles of the institutions that govern international relations.
c. Rationalize the challenges of global governance in the 21st century.
d. Formulate possible solutions to the problems in the structure and dynamics of the United
Nations.
e. Substantiate the relevance of the state and globalization.
f. Articulate a personal stance on global interstate system and understand its impact to the
Philippines.
ACTIVATE
Imagine how the world might look if no
opportunities were available for individuals to discuss
conflicting matters. Think of a problem that you have
encountered in your life with another person — a
family member, friend, classmate, etc. Then, create a
flowchart below detailing the steps (using words and
images, if possible) you used in solving the matter. https://www.google.com/search?rlz=1C1CHBF_enPH803PH803&biw=1280&bih= 560&tb =isc h&sa=1&ei=gR0jXNSpLNitoAS
DlpxQ&q=fighting+people+cartoon&oq=fighting+people+cartoon&gs_l=img.3..0i8i30l5.44239.50542..50866...0.0..0.89.1055.13.
.....1....1..gws-wiz-img.......0j35i39j0i67j0i30j0i5i30.dzDbERD85P0#imgrc=RY1eALsMsRMQkM:
PROBLEM: __________________________________________________________

EMPOWER
How does the world solve problems? What if countries around the globe have no
opportunities to discuss international matters? Would there be cooperation among countries?
Would there be consensus on international matters? Would any international problems be resolved?
You have just learned in the previous activity that problems in a micro-level arise due to
conflicting issues. While these happen on a personal level, they also do in a large-scale level.
This lesson presents how globalization has affected governments. Since this is the case, you
will also learn more about the institutions that oversee world relationships. You will not only learn
what the United Nations is, but you will also gather information about its history, members, and
purpose. As we go along with our discussions, it is necessary to identify the challenges that the
United Nations is currently facing so that you, as students of the 21st century, may formulate
possible solutions to help your local community as well as the world at large.
At this time, you have already learned how globalization has changed our lives. Coca-Cola
sells soda around the world and the United Nations acts as a world government to try to make the
world a safer place. But how does it affect laws in cities like Lagos, Nigeria, and Long Beach in
California? How has globalization affected governments?
Let us have a quick recap about globalization.
Globalization is the way countries and people around the world
have become more connected and interdependent economically,
politically, and socially. It has made it possible for a person in
Lebanon to eat a McDonalds cheeseburger, talk to a friend in New
York City on Skype about fracking, and listen to Korean pop music
on Spotify. But it also means that local governments have to deal
with international companies coming to do business in their towns, https://www.google.com/search?q=mc+donalds+in+lebanon&rlz=1C1CHBF_ enPH80 3PH
803&source=lnms&tbm=isch&sa=X&ved=0ahUKEwirj5SY-rzfAhWSQd4KHUz-At8Q_AU IDy
and their local citizens are demanding more of a voice and can gC&biw=1280&bih=560#imgrc=jY-3gMTL4qgdbM:
unite more easily than ever before using the Internet. Globalization can impact local government
from the top down or from the bottom up. Let us take a look at some examples of how that might
look.
How It Looks From Top-Down

As countries have become more interconnected, they have needed to work together more.
For example, countries work together to protect the environment or to fight terrorism. This has led
to the development of world government. After WWII, the United Nations (UN) was formed as a
kind of world government. This will be discussed in more detail later on. But the UN cannot really
govern the world. It needs local governments to turn their policies into realities on the ground. For
example, the UN has asked local governments to become involved in making sure that human rights
are protected. After all, the UN is just a bunch of ambassadors from different countries that all
meet in New York City. They cannot actually control the everyday lives of someone who lives in
Jeonju, South Korea. But the local government in the city of Jeonju can. It can pass laws that
protect human rights, and the police can make sure that people follow these laws.
Now, local government must take international norms and make that a norm where they live,
such as women's rights to an education or protecting the environment. This is called domesticating
international norms, and this could look different in different places. For instance, the UN supports
protecting the environment, so a local government in California could pass a law that charges a

small fee for using plastic grocery bags, while the local government in a small village in Guatemala
might focus on helping people use natural resources more efficiently for agriculture.
How It Looks From Big Business

Sometimes globalization forces local governments to accept ideas and laws that they do not
really like. This happens most often when it comes to economic globalization. For a small town in
Bangladesh, it is exciting to become involved in the global economy when a big company like
Walmart wants to open factories in your town and employ your citizens. But to keep those big
companies around, it means the local government might look the other way on workers' rights. That
can leave people working for slave wages, or even allowing companies to harm the environment or
remove people from their homes.
These big international corporations can threaten to leave and take their business to some
other city. Local governments want to keep the business and jobs in their city, so they might agree
to whatever policies the big companies want. In that way, corporations, like Exxon Mobil or
Coca-Cola, can have more say in the local government than the people who live there.
How It Looks From Bottom-Up

What is fascinating about globalization is that even as it has created a big world
government, it has also made it possible for tiny organizations and small local governments to have
a say in the world (Fawcett & Hurrell, 1995). As more people have been given a choice through the
spread of technology, more people are demanding that their voices be heard. On the Internet,
everyone has access to Google and everyone can leave comments on Facebook or a forum and
they can start a petition on change.org. But let us say a group of people in Argentina is
campaigning for better access to healthcare. Well, they might get help from international
organizations who help spread their message. But ultimately, they need their local government to
pass new laws and policies to help them get better access to healthcare. These citizens in
Argentina can use the power of globalization to strengthen their cause and get their local
government to act.
There have been reactions against globalization from the bottom up. Great Britain voted to
leave the European Union, and voters voiced outrage against globalization and wanted more
control over their local government. However, countries and people are now so interconnected
through technology and trade that it seems more likely that local governments must continue to
find ways to work effectively with the forces of globalization.
An increased economic participation of different countries around the world means an
increased regulation by governments to keep everything in order. Generally, countries enter into
treaties in order to resolve matters between each other. On a more complex worldwide matters,
such as world peace and promoting social justice for humanity, a forum is needed to foster
discussion and decision. The United Nations is one such organization, which will be discussed in
greater detail later.
One might ask how international relations emerged, which led to the creation of
international organizations such as the United Nations. Well, the world is comprised of different
countries or states — all of which have distinct forms of government. While some scholars examine
the internal political affairs of individual states, others are more interested in studying the
interactions between states, including the military and diplomatic encounters between two or more
countries (Avant, 2010).

These scholars are studying international relations. When they explore the growing interactions
between countries, they refer to the phenomenon known as internationalization.
It should be noted, however, that internationalization is not the same as globalization. It is,
in fact, a very important facet of globalization because states and governments are key drivers of
the globalization process. In this part of the lesson, we will examine internationalization to better
understand the globalization of politics. Let us begin by discussing its foundations.
-
Other than the nation-state, there have been different kinds of states in history. For
example, in 15th-century Italy, the independent body of government was centered on a city, which
were called city-states, but their power extended beyond the city limits and could change
depending on other powers, resources, etc. The nation state, by contrast, has a definite border
where its power ends. Say, the United States cannot enforce its laws in Canada.
At one time, kingdoms and empires ruled over lots of very different people who did not see
themselves as united or sharing any sort of identity. The transition from kingdoms, empires, and city
-states into nation states did not happen everywhere in the world at the same time, or in the
same way. In actual fact, we may never really know exactly what created the nation-state, but
literacy and press media, new shipping technologies, and new maps all changed the way people
understood their world and helped governments and people reorganize along new ideals. The
nation-state first appeared during the age of exploration, sometime between the 1500s and 1700s,
and it became the dominant system by the late 1800s. Sometimes the nation developed first, but
sometimes the state did.
The nation-state is a concept with two non-interchangeable terms — not all nations are
states, and not all states are nations. Take for example, Scotland. It has its own flag and
national culture but it belongs to the state of United Kingdom. The Philippines’ Bangsamoro is a
separate nation but it recognizes the authority of the country’s state. On the other hand, there
are states with multiple nations and there are nations with multiple states like the nation of Korea,
which is divided into two states: North Korea and South Korea. Ever heard of the ‘Chinese nation’?
Well, it can refer to both the People’s Republic of China (also known as the mainland China) and
Taiwan.
When we talk about the nation state, we are really talking about three separate things: the
nation, the state, and the nation state.
The nation state is a system of organization in which people with a common identity live
inside a country with firm borders and a single government (Roeder, 2007). In other words, the
nation state is how we identify ourselves as in: ‘I’m Filipino. I'm American. I'm Russian. And so on
and so forth.’ It also determines what language we speak, what laws we follow, and what holidays
we celebrate. Cinco de Mayo? Boxing Day? Fourth of July? Rizal Day? The nation state is a system
of political, geographic, and cultural organization, and it is one of the most important parts of
your life that you do not really think about. It is held together by its physical boundaries, its gov-
ernment, and the fact that the people believe they are connected to each other.
The fundamental parts of the nation state are the nation and the state. What then is a
state? In the broadest of terms, the state is a body of government. All the rules and laws, the
government officials and their titles, the physical boundaries and those who define them - these
make up the state. The state is what makes a country run from a political, practical standpoint. In
layman’s terms, the state refers to a country and its government, like the government of

the Philippines. The state has four essential attributes namely: (1) it exercises authority over a
specific population, called its citizens, (2) it governs a specific territory; (3) it has a structure of
government that constructs rules for the society to follow, and (4) it has sovereignty over its
territory. The fourth and the most crucial attribute of the state can be internal or external
sovereignty. The former means that nobody (or no groups) can ignore the state if he or she wants
to operate in a given national territory. Therefore, people, organizations or other entities will have
to follow the laws set by the state. The latter, on the other hand, means that a state’s laws and
policies are independent of other states. This means that other states cannot intervene in any
affairs of another country. For example, Russia or any other country, cannot pass laws for the
Philippines and vice versa.
Then again, the nation is the people. The nation is created by a shared belief that the people
inside a country are connected to each other. Whether you live in Cebu, Davao or Manila, you still
share a connection with other Filipinos. The idea that people of a nation are connected to each
other is called nationalism. Nation-states must also have a shared national culture. This is often
achieved through common language, history, holidays, and education. Sometimes national culture is
a result of similar people living in the same area.
In the modern era, the nationalist movements are responsible for the formation of nation-
states. It is through the nationalist sentiments of the citizens that states achieve their freedom
because of their clamor for independence.
At this point, we now realize that sovereignty is one of the fundamental principles of modern
state politics. To better understand the beginnings of the sovereign power of states, let us go
back to as far as four centuries ago.
The origins of the present-day concept of the sovereignty dates back to the Thirty Years’
War and the subsequent Peace of Westphalia. The said continental conflict arose out of political
and religious issues in the Holy Roman Empire and Europe as a whole, whose conclusion in 1648
changed the face of European politics.
In today’s century, if one does not like the church he or she attended to last Sunday, he or
she may try the one across the street — sort of taking religious freedom for granted. However, if
we had lived four hundred years ago, choosing a church was such an important decision that
making the wrong choice could actually cost us our life. From 1618 to 1648, a series of conflicts was
fought between Roman Catholic and Protestant states, in part to answer the question of what
churches European Christians were allowed to attend. These conflicts are known as the Thirty Years’
War.
To give you a brief background, we now go back to the 16th century when Martin Luther's
Protestant Reformation caused Christianity to splinter into numerous sects and subsects. In
the Holy Roman Empire, where the Emperor remained a staunch Catholic, members of these sects
often had to fight to defend their rights to worship or emigrate to states with princes or
monarchs sympathetic to Protestantism. Conflict between the Emperor and an alliance of German
princes - named the Schmalkaldic League - that preferred Lutheranism was settled with the 1555
Peace of Augsburg, in which the Emperor Charles V agreed to allow the princes of each state
within the Holy Roman Empire to choose either Catholicism or Lutheranism as the religion of their
state.

While this measure stopped the internal struggle for a time, new issues created new
problems. As the preacher John Calvin's more radical Protestant beliefs gained footing among
Europeans during the middle of the sixteenth century, Calvinists began to clamor for the same
recognition and acceptance that Lutheran rulers and subjects had achieved with the Peace of
Augsburg.
These tensions, called the Bohemian Revolt, came to a head in 1618 in the Germanic state of
Bohemia. King Matthias of Bohemia, who was also Holy Roman Emperor, had no legitimate heirs and
in 1617 named the Archduke of Austria, Ferdinand, heir to the Bohemian throne and likewise put him
in line to become Holy Roman Emperor. This alarmed the primarily Calvinist population of Bohemia
as Ferdinand was an ardent Catholic. In 1618 the Calvinists revolted, famously by first throwing some
of Ferdinand's Catholic advisers out a church window in Prague, an event which became known as
the Defenestration of Prague. The Calvinist rebels in Bohemia appealed to the other Protestant
states in the Holy Roman Empire for help in throwing off Catholic rule, but their efforts and those
of the few allies they found failed; the Bohemians were defeated decisively by Ferdinand - now Holy
Roman Emperor Ferdinand II - in 1620 at the Battle of White Mountain. As a result, Catholicism was
forced upon Bohemia, and the Protestant king the Bohemians had attempted to install, Frederick V,
was exiled from the Holy Roman Empire.
Though the Bohemians and their Protestant allies were defeated, fighting began again in
1625 with Denmark's invasion of the Holy Roman Empire on behalf of the Protestant state of Saxony,
which the Danish King Christian IV feared might fall to the Catholic states that encircled it.
Christian's invasion proved foolish, and Emperor Ferdinand employed the Bohemian nobleman and
brilliant general Albrecht von Wallenstein to repulse the invaders. The Danes were defeated several
times in Germany and in their own territory and retreated to the Danish islands where Wallenstein,
who was without a fleet, could not reach the Danish forces. In 1629, Christian IV and Ferdinand II
signed the Treaty of Lübeck, which returned previously Danish lands to Denmark in return for a
pledge that Denmark would no longer interfere in the affairs of the Empire.
At this point, the Thirty Years' War gained a new political dimension: with the consolidation of
power in the Holy Roman Empire by the Emperor, Ferdinand II, France worried about being
surrounded, as the Hapsburg family had members installed as both the King of Spain and the Holy
Roman Emperor. Meanwhile, Protestant Sweden worried about the growing Catholic forces of the
Holy Roman Emperor and what that would mean for Swedish control of the Baltic Sea. As a
result, Sweden landed troops in Pomerania in 1630 and France and Sweden signed an alliance -
despite France being a Catholic country - to aid the Protestant German states. The Swedes scored
several victories in the northern and central parts of the Empire, led by their King Gustavus
Adolphus, until he died in battle in 1632. After his death, the imperial Catholic forces began to claw
back lost territory and in 1635 concluded a peace with the Protestant states of the Holy Roman
Empire. The 1635 Treaty of Prague stated that princes of the Holy Roman Empire were not allowed
to make alliances and treaties with outside sovereign states and merged the armies of each state
within the Holy Roman Empire into one imperial army.
The Treaty of Prague angered the French, who quickly realized the Treaty strengthened
Hapsburg control over the entirety of the Holy Roman Empire; it was the exact antithesis of the
stated French goals for entering the war. As a result, France entered the war directly, declaring
war on the Holy Roman Empire in 1636 and on the other Hapsburg-controlled state, Spain, in 1635.
The Swedes and several Protestant Germanic states joined the French in continuing the war. Despite
early Spanish successes, French and Swedish forces were largely successful in military efforts over

the next decade.
In the face of French and Swedish victories in the north and west, Ferdinand III (who had
taken the imperial throne after his father's death in 1637) sought to negotiate an end to the
protracted conflict. Over the last several years a series of treaties and ceasefires were signed
between France, Spain, Sweden, the Holy Roman Empire, and various Germanic states. These
collective agreements became known as the Peace of Westphalia (also known as the Treaty of
Westphalia). This agreement was designed to prevent wars in the future by recognizing that the
treaty signers exercise complete control over their domestic affairs and swear not to meddle in
each other’s affairs.
Practically, the Peace achieved several things. Some territory changed hands, as France was
granted parts of Alsace and Sweden gained part of Pomerania. Calvinists were granted the same
degree of toleration in the Holy Roman Empire that Lutherans had been afforded since 1555, and
the states of the Holy Roman Empire were granted a greater degree of sovereignty from the
imperial throne than they had previously held; indeed, any illusions Emperor Ferdinand III had of
retaining strong authority over all of the Holy Roman Empire's provinces and maintaining the Empire
as a solely Catholic entity were shattered. In turn, the Peace of Westphalia, through destroying
imperial authority, isolated Hapsburg Spain and primed France to become the preeminent power of
continental Europe under King Louis XIV.
The Westphalian system provided stability for European nations until the time that it faced
Napoleon Bonaparte who believed in the principles of the French Revolution: that there should be
liberty, equality, and fraternity to the rest of Europe which is why he challenged the power of
kings, nobility and religion in Europe. The Napoleonic Wars lasted from 1803 to 1815, and in every
country that Napoleon and his armies conquered, the French implemented the Napoleonic Code that
forbade birth privileges, encouraged freedom or religion, and promoted meritocracy in government
service. This shocked the monarchies of Europe and their heirs (the dukes, duchesses, etc.) and
they gathered their armies to push back against the French emperor.
Anglo and Prussian armies then finally defeated Napoleon in the Battle of Waterloo in 1815,
ending Napoleon’s mission to spread his liberal code across Europe. To prevent another war from
happening, the royal powers created a new system, which essentially restored the Westphalian
System. This has been known as the Concert of Europe, an alliance of “great powers” (comprising
United Kingdom, Austria, Russia and Prussia), all sought to restore the world of monarchy and
religious privileges way before the French Revolution and the Napoleonic War. More importantly, it
was an alliance that aimed to restore the sovereignty of states.
The Concert’s power lasted until the dawn of World War I but the international system still
has traces of this history. Until now, states are considered sovereign and the “great powers” still
hold significant influence over world politics.
To sum everything up, the international state system (or simply, interstate system) was born
in Europe with the Treaty of Westphalia in 1648, after the Thirty Years’ War. With this treaty, state
sovereignty was recognized for the first time wherein states begin to grown in power.
In truth, the world is chaotic. This has been a result of the existence of a much more
powerful state than others. And in a world where there is anarchy, there is no such thing as a
world political system that imposes rules and order. This is when nation-states impose its
sovereign power within its territory. But given the fact that there is an increasing interdependence
between different states, the world necessitates a system of global governance to maintain
international peace and security.

Global governance is defined as the “formal and informal arrangements that produce a
degree of order and collective action above the state in the absence of a global government” that
involve coordination among state and non-state actors (Thakur & Weiss, 2015).
In order for us to realize the role of global governance, we will discuss in detail the United
Nations as the primary organization for international cooperation, peace, and security, and the
other institutions that govern international relations.
(www.un.org)
Just a quick recap of the Aftermath of World War II: The effects of World War II presented
countless challenges. The dawning of the post-war era revealed a complex, more fragile world. The
United States and the Soviet Union emerged from the ashes of war as world superpowers. Both
superpowers had very different ideas of how Europe should be rebuilt.
To assist in the recovery of war-torn Europe, the Marshall Plan was implemented by the
United States. Between 1948-1951, the Marshall Plan provided economic aid to 16 European countries
struggling to rebound from the destruction of World War II. The Marshall Plan was officially called
the European Recovery Program, or ERP. The program was named after U.S. Secretary of State
George C. Marshall.
The Berlin Airlift was another important event following World War II. In 1948, Soviet forces
blockaded Allied-controlled West Berlin, restricting food, supplies, and even electricity. Though a
daunting undertaking, American and Allied aircraft flew around the clock to transport food to the
desperate people of West Berlin for nearly a year. The Soviets lifted the blockade in May 1949.
The Beginnings of the United Nations

The concept behind the United Nations has its roots in a
post-World War I organization called the League of Nations. The
League of Nations was an international peacekeeping organization
founded in 1920, following the end of World War I. American President
Woodrow Wilson was instrumental in its founding.
Going back to our knowledge of world history, World War I was
such a horribly brutal conflict that the major powers wanted to ensure www.google.com/search?q=united+nations&rlz=1C1CHBF_enPH803PH803&
source=lnms&tbm=isch&sa=X&ved=0ahUKEwjllKbQtcTfAhVPat4KHXy-DEgQ
that a war like it never happened again. It was supposed to be the 'war
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to end all wars.’ Obviously, the league was not too successful because a second world war broke out
20 years later. Although largely ineffective, the League of Nations is important because it helped
set the foundation for the U.N.
The United Nations, often just called the U.N., is an international peacekeeping organization
aimed at promoting harmony between nation-states and preventing war.
The underlying principle behind the formation of the United Nations is collective security.
Under a collective security arrangement, a host of states band together in order to stop an
aggressor state. Say there is a bully in senior high school. He might pick on a kid or two if they are
isolated, but if 20 kids present a united front and tell the bully, 'Hey, if you pick on one of us, you
have to deal with all of us!', that bully is likely to back down. That is the idea of collective security:
strength in numbers.
The real concept of the U.N. began to become clear throughout World War II, wherein the
term ’United Nations’ was often used as a general term to refer to the Allies. One famous poster
from the war reads, 'The united nations fight for freedom.' As the war progressed, however,

President Franklin Roosevelt and others increasingly began to conceive of the United Nations as a
very specific international peacekeeping organization.
Much of the thinking behind the U.N. was based on a very important document called
the Atlantic Charter, which was issued years before in August 1941. The Atlantic Charter set forth
goals for the post-war era such as democratic self-determination for all nations, free trade, and
movements toward decolonization. Basically, it called for the spread of democracy around the
world. Determined to put the ideals of the Atlantic Center into place, the U.N. was created.
Representatives from 50 countries met in San Francisco in 1945, where they drafted the proposed
United Nations Charter. The representatives signed the Charter on June 26, 1945. The United
Nations officially came into existence after the United Nations Charter was ratified on October 24,
1945, in San Francisco by the United Kingdom, the United States, France, China, and the Soviet
Union, and by a majority of the other member states.
President Franklin Roosevelt and others increasingly began to conceive of the United Nations
as a very specific international peacekeeping organization.
Role of United Nations

The United Nations has four basic purposes: (1)
Peacekeeping; (2) Cultivating of friendly relationships among
states; (3) Assisting in alleviating poverty, hunger, disease, and
illiteracy, and encouraging respect for human rights; (4)
Providing a forum where nations work together for these
goals. https://www.google.com/search?q=united+nations&rlz=1C1CHBF_enPH803PH803&source=lnms&tbm=isch&sa=X& ved=0ahUKEwio3Ju-
usTfAhXRFIgKHYOEAL4Q_AUIDigB&biw=1280&bih=560#imgrc=g-VY2AagzRQRiM:
To see how the U.N. seeks to accomplish these goals, let us examine its organizational
structure.
Structure of United Nations

The United Nations is organizationally structured into six primary organs: (1) the General
Assembly; (2) the Economic and Social Council; (3) the International Court of Justice; (4) the
Trusteeship Council; (5) the Security Council; and (6) the Secretariat.
The General Assembly is the deliberative and policy-making body of the United Nations. Each
member state has a seat in the General Assembly. Each member of the Assembly is entitled to one
vote - it does not matter if you are the most powerful state on the planet or the weakest.
According to the United Nation's Charter, the General Assembly is empowered to perform a
broad range of activities, including:
 Considering and approving the United Nations' budget and setting membership financial
assessments
 Electing non-permanent members of the Security Council, members of other UN councils, as
well as appointing the Secretary-General with the recommendation of the Security Council
 Deliberating and making recommendations on general principles of international cooperation
for the maintenance of peace and security
 Conferring on any question relating to international peace and security and making
recommendations, unless the Security Council is discussing the issue
 Conferring on any issue that is within the scope of the United Nations Charter and making
recommendations regarding the issues, unless the Security Council is discussing the issue
 Conducting studies and making recommendations related to issues of international law, human

rights, and international cooperation relating to economic, social, humanitarian, cultural,
educational, and health fields
 Providing recommendations for peaceful settlement of issues that may mar friendly relations
between states
 Deliberating on reports submitted by other United Nations organs
The Economic and Social Council (ECOSOC) focuses on economic, social, and environmental
issues. It engages in coordination and policy review, as well as making recommendations on these
issues. It also plays a role in the implementation of internationally agreed upon development goals.
The International Court of Justice is the judicial organ of the United Nations. The Court
settles disputes between members. It also provides advisory opinions to the U.N. and its agencies.
The Trustee Council was originally formed to supervise 11 territories and to take the steps
necessary for these territories to achieve self-governance. All these territories have either gained
independence or self-governance. Consequently, the Trustee Council is pretty much inactive and only
meets on an as-needed basis.
The Security Council is charged with maintaining international peace and security. It also
recommends the appointment of the Secretary General and the admission of new members to the
United Nations. The Security Council, along with the General Assembly, elects judges to the
International Court of Justice. It has 5 permanent members and 10 non-permanent members who
are elected by the General Assembly for 2-year terms.
The permanent members of the Security Council include China, France, the Russian Federation
(which inherited the Soviet Union's seat), the United Kingdom, and the United States. Permanent
members have veto power to prevent the adoption of any substantive resolution proposed by the
Security Council and any reform to the United Nations' Charter.
The Secretariat manages the day-to-day operations of the United Nations and provides
services to the other organs. It is staffed with around 43,000 people as of 2014. The Secretary-
General is the head of the Secretariat. According to the U.N., the Secretariat's duties range from
administering peacekeeping operations to mediating international disputes, from surveying
economic and social trends and problems to preparing studies on human rights and sustainable
development.
The United Nations is headed by the Secretary-General of the United Nations. This position is
kind of like president, although the power is more limited. The Secretary-General is elected to
5-year terms. As of 2018, the Secretary-General of the United Nations is António Guterres,
appointed by the General Assembly on 13 October 2016. When the United Nations was founded in
1945, 51 member states joined. Today, the U.N. has 193 member states.
Regional Commissions are a group of officials in different countries that instruct, debate
and are in-charged of making a specific law or right. to develop the economy and the society (e.g.

Human Rights, Science and Technology). These include: the Economic Commission for Africa (ECA),
Economic Commission for Europe (ECE), Economic Commission for Latin American and the Caribbean
(ECLAC), Economic and Social Commission for Asia and the Pacific (ESCAP), and Economic and
Social Commission for Western Asia (ESCWA).
WORLD BANK
The World Bank, as you have learned in the previous
lessons, is the international financial institution that provides
loans to countries of the world for capital projects. It was
established by the United Nations Monetary and Financial
Conference or the Bretton Woods Conference.
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International organizations under the World Bank (called the World Bank Group) were also
established for specific reasons and these include:
International Bank Reconstruction and Development (IBRD) that offers loans to

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middle-income countries to develop and improve their economy.
International Development Association (IDA) provides loans and grant programs that
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boost economic growth, reduce inequalities, and improve people’s living conditions.
International Finance Corporation (IFC) provides loans for private sectors in

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developing countries to create markets that open up opportunities for all.
Multilateral Investment Guarantee Agency (MIGA) promotes Foreign Direct Investment (FDI)
into developing countries to help support economic growth, reduce poverty, and improve
www.google.com people’s lives.
International Centre for Settlement of Investment Disputes (ICSID) administers

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the majority of all international investment cases. It is the forum for investor
in most of international investment treaties and in numerous investment laws
and contracts.
International Monetary Fund (IMF) ensures the stability of the international monetary
system by keeping track of the global economy and the economies of member countries;
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leading to countries with balance of payments difficulties; and giving practical help to
members.
World Trade Organization (WTO) regulates international trades. It deals with the rule of
www.google.com trade between nations to ensure that trade will flow smoothly, predictably, and freely as
www.google.com possible. Basically, it acts as a forum in negotiating trade agreements.
Organization for Economic Cooperation and Development (OECD) consists of 35 member

countries. It stimulates economic progress and world trade, providing a platform to
www.google.com compare policy experiences, seeking answers to common problems, identify good
Practices, and coordinate domestic and international policies of its members.
Specialized agencies of the United Nations are discussed in brief on the next page.

:
International Labor Organization (ILO) is a United Nations agency that deals with labor
problems, particularly international labor standards, social protection, and work
www.google.com opportunities for all.
Food and Agriculture Organization of the United Nations (FAO) is a specialized agency of
the United Nations that leads international efforts to defeat hunger. It helps eliminate
hunger, food insecurity and malnutrition. It also aims to reduce rural poverty by making
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agriculture, forestry, and fisheries more productive and sustainable. It enables inclusive and
efficient agricultural and food systems and increases the resilience of livelihoods to threats and
crises.
United Nations Educational, Scientific and Cultural Organization (UNESCO) aims to

contribute to peace and security by promoting international collaboration through
educational, scientific and cultural reforms in order to increase universal respect for
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justice, the rule of law, and human rights along with fundamental freedom. It contributes to build
peace among nations.
World Health Organization (WHO) aspires to build a better, healthier future for people all
over the world. It is concerned about public health whose primary aim is to eradicate
and combat dangerous diseases like AIDS/HIVS. It makes researches in medicines and
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vaccines to eliminate diseases, and to develop nutritious foods. It is also responsible for World
Health Report and Survey.
:
International Civil Aviation Organization (ICAO) intends to foster the planning and
development of international air transport so as to ensure the safe and orderly growth
www.google.com of international civil aviation throughout the world.
International Maritime Organization (IMO) is responsible for the safety and security of
shipping and prevention of marine pollution by ships.
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International Telecommunication Union (ITU) connects all the world’s people by allocating a
global radio spectrum and satellite orbits, and develop the technical standards that
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ensure networks and technologies seamlessly interconnect, and strive to improve access to
ICTs to underserved communities worldwide.
Universal Postal Union (UPU) ensures a truly universal network of up-to-date products and
services. It sets rules for international mail, exchanges and makes recommendations to
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stimulate growth in mail, parcel and financial services volumes and improve the quality
of service for customers.
World Meteorological Organization (WMO) is a specialized agency of the United Nations

for meteorology (weather and climate), operational hydrology, and related geophysical
sciences. It is the authorized agency of the UN in-charge of the state and behavior of
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the Earth’s atmosphere, its interaction with the oceans, the climate it produces and the
resulting distribution of water resources.

World Intellectual Property Organization (WIPO)
Intellectual property (IP) refers to creations of the mind, such as inventions, literary
and artistic works, designs, symbols, names and images used in commerce (e.g. patents,
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copyright and trademarks), which lead to the development of a balanced and effective
international intellectual property (IP) system that enables innovation and creativity for the benefit
of all.
International Fund for Agricultural Development (IFAD) invests in rural people, empowering
them to increase their food security, improve the nutrition of their families and increase their
incomes. IFAD aims to build resilience among them, expand their businesses and take charge
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of their own development.
United Nations Industrial Development Organization (UNIDO) is the specialized agency of

the United Nations that promotes industrial development of poverty reduction, inclusive
globalization and environmental sustainability.
www.google.com
United Nations World Tourism Organization (UNWTO) is responsible for the promotion of
responsible, sustainable, and universally accessible tourism, leading international
organizations in the field of tourism, which promotes tourism as a driver of economic
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growth, inclusive development and environmental sustainability. It also offers leadership and
support to the sector in advancing knowledge and tourism policies worldwide.
It was mentioned in the earlier part of this lesson, there is no such thing as “world
government” (James, 2014). As Thomas Weiss (2014) puts it, “There is no global government. Yet, on
any given day, mail is delivered across borders; people travel from one count1y to another via a
variety of transport modes; goods and services are freighted across land, air, sea and
cyberspace; and a whole range of other cross-border activities take place in reasonable
expectation of reliable, safe and secure service for the people, groups, firms and governments
involved. Disruptions are rare - indeed, in many instances less frequent in the international domain
than in some countries that should have effective and functioning governments. That is,
international transactions are typically characterized by order, stability and predictability.”
In truth, there is no single government aimed at solving different disputes around the world.
However, Wess (2014) finds this puzzling: “How is the world governed even in the absence of a world
government in order to produce norms, codes of conduct and regulato1y, surveillance and
compliance instruments? How are values allocated quasi-authoritatively for the world and accepted
as such, without a government to rule the world?”
Well, there is one common denominator between the governments of various states in the
globe: cooperation. Hence, the existence of global governance or world governance, a movement
towards political cooperation among international actors aimed at creating negotiations to answer
the problems that affect more than one state or region.
Although the contemporary system of global political relations is not integrated because
of each nation-state’s sovereign power, the political, economic and cultural laws, rules and
regulations intended for a global scale are common to all regimes — they are bureaucratic
rational, regularized, and codified.

It cannot be denied that despite the fact that international organizations and specialized
agencies exist interdependently, there are still challenges that need to be addressed by a collective
management of human societies on a global scale so that regulations may be organized and
centralized for the common good.
Many would agree that the sharp rise in terrorist attacks around the world has pushed the
international community to exert extra efforts on areas beyond fighting the terrorist activities of
organizations like Al-Qaeda. In fact, the ongoing flow of foreign fighters from different countries
into Syria and Iraq, and the threat that comes with it upon their return to their home country,
coupled with the violent extremism of the Islamic State (ISIL), have been the central discussion in
European institutional organs. Issues that have to do with prevention of terrorism, including
putting off radicalization and recruitment of young terrorists, confronting violent extremism, and
intercepting the financial flows fueling terrorism have been a major challenge of global governance.
The acceleration of human life and the effects of human activities on nature also require
collective answers from governments and citizens around the world. The irreversible effects of
global warming and climate change, ocean and air pollution, nuclear risks, those that are related to
genetic manipulation, reduction and extinction of resources and biodiversity also confront global
governance.
Worldwide health issues such as problems related to HIV/AIDS, malnutrition and the global
outbreak of viruses are being addressed by the international community.
Another area of great concern is the use of anti-dumping practices, which seem to
discriminate against producers in developing countries.
While "integrating with the world economy is a powerful vehicle for growth and poverty
reduction in developing countries…” (Stem, 2000), an increasing widening gap between the rich and
the poor is still very evident, which comes with poverty and many forms of social injustices.
Of course, in this Information Technology era, the use of the internet and those that are
related to intellectual property rights have become rising problems that have to be addressed by
global governance where rules, management issues and security are vital in international
discussions.
The challenges of this age call for the creation of a paradigm shift to protect and preserve
the people and communities of the 21st century planet as we face many kinds of complex disasters
every year relating to the 3S’s (Safety from recurring natural hazards, Security and Sustainability),
5E’s (Economy, Energy, Environment, Ecology and Education, and 1H (Healthcare).
A disaster is a set of failures that occur when three continuums (1) people, (2) community
(i.e. a set of habitats, livelihoods, and social constructs), and (3) recurring events (e.g. floods,
earthquakes and the like) intersect at a point in space and time, when and where the people and
community are not ready. Universally speaking, there are weak-links that cause disasters to take
place: ignorance, apathy, disciplinary boundaries and unwise decisions. What, you may ask, are the
likely causes of complex disasters during the 21st century? According to Economic Times (2017),
disasters are most likely caused by poverty, chronic hunger, health care needs, increasing risk of
pandemic diseases, large-scale migration of people, endangered plant and animal life, conflict and
terrorism.
Therefore, aside from the above-mentioned challenges of the 21st century governance, the
endemic challenges include: accountability of governments, effectiveness of leaders and legitimacy
of policies that could cut across several distinct global issues present in this world.
Unless a realistic new strategy for disaster prevention is designed and implemented, global

problems may just worsen so rapidly that we will reach many tipping points before we realize it in
an unnecessary and irreversible reduction in the quality of life on this planet.
The removal of trade barriers and the implementation of liberalization of world capital
markets, and swift technological progress, specifically in the fields of information technology,
transportation and telecommunications, have vastly increased and accelerated the movement of
people, information, commodities and capital across the globe. Correspondingly, they have also
broadened the range of issues which spill over the borders of nation-states. As a result, an
international norm setting and regulation has become a necessity, including consultations and
formal negotiations on a global or regional scale. Many of the problems afflicting the world today
(such as poverty, environmental pollution, economic crises, organized crime and terrorism) are
increasingly transnational in nature, and cannot be dealt with only at the national level, nor by
state-to-state negotiations.
This being said, the national decision-making process calls for a transfer of decisions to the
international level, and due to an increase in the demand for participation, it also requires many
decisions to be transferred to local levels of government. This implies that public policies have to
be undertaken at different levels (Subrandt, 2000) since globalization entails complex decision-
making process, which take place at different levels namely: sub-national, national, and global,
paving the way to a growing multi-layered system of governance.
It is increasingly being acknowledged that good governance is a key element in the
development process of any country, and in ensuring that globalization benefits all in society. The
State, in partnership with civil society and the private sector, has a major role to play in the quest
for peace, greater freedom, social equity and sustainable development. Improving and reforming
public administration and governance systems is critical in addressing a number of issues, including
making globalization work for all; alleviating poverty and income inequality; advancing human rights
and democracy; protecting the environment and promoting sustainable development; and managing
violent conflict and combating international crime. States can either guarantee people’s freedom
and a measure of social justice, or can hold back development. How the public sector is structured,
administered and operated, as well as what policies are pursued, has therefore a great impact on
people’s well-being.
The promotion of a higher quality of life and the protection of human dignity should be
regarded as a crucial element in any effort to globalize. To survive and thrive, a state must have a
more solid foundation of governance, in shared values and institutional practice.
With the advancement of globalization and increased unpredictability, there is a need to
redefine the role of the State and to strengthen its capacity to manage effectively change and
complexity. With the current global issues experienced by the world, the state’s responsibilities
have changed leading government institutions to make important modifications in the way they
operate. Overall, the course of change points to a shift of focus away from hands-on management
and the direct production of services and goods towards strategic planning with a view to the
establishment of an enabling framework for private enterprise and individual initiative (i.e. from
direct intervention in the economy to regulator). Competing demands on the State from local,
regional and transnational levels have also caused a shift of the State’s center of gravity and with
it the locus of power.

Truly, there is a growing need to strengthen national capacity to design and implement
people-centered programs and policies; to strengthen national capacity to ensure that countries
benefit from globalization, while minimizing its costs; to enhance citizen participation at all levels of
governance and to foster partnerships between the State, civil society and the private sector for
development.
In brief, to label globalization in absolute terms as either a totally positive or negative
phenomenon is debatable. Ultimately, globalization benefits society at large in countries that enjoy
some degree of political stability, that have in place adequate infrastructure, equitable social
safety nets and in general strong democratic institutions. Experience has shown that globalization
requires strong, not weak States. Thus, one of the main preconditions to ensure that the benefits
of globalization are evenly spread throughout the developed and the developing world and within a
given country is good governance, including an efficient and effective public administration.

EVALUATE
Worksheet 1
Below are global issues that confront our world today. Assign an international institution that
could be tasked to address the problem and on the third column, suggest a possible solution that
a student like you can do to help solve the problem.
Global Issue Assigned International Suggested Solution

Institution
Ebola virus outbreak

in West Africa
Mexico’s forests are

now victims of climate
change
Sustainable
Development for Asia
and the Pacific
Human Trafficking
Nuclear Arms Control
Gender Violence
Philippines’ War on
Drugs
Food Security
ISIS

EVALUATE
Worksheet 2
A. Multiple Choice. Read and analyze each question carefully. Write the CAPITAL LETTER of the
correct answer on the space provided.
___1. What is the primary deliberative body of the United Nations?

a. The Security Council c. The Trustee Council e. none
b. The General Assembly d. The Secretariat
___2. Which of the following is not a role of the United Nations in international politics?
a. Cultivating of friendly international relations c. Alleviating hunger and poverty
b. Provide a forum to achieve other goals d. Peacekeeping e. none
___3. ___ is the number of permanent members on the United Nation’s Security Council.
a. 3 c. 10 e. none
b. 5 d. 15
___4. How many countries signed the UN’s charter when it was ratified to form the UN?
a. 51 c. 54
b. 50 d. 44
___5. What was the entity that was the precursor to the United Nations?
a. League of Nations c. European Union
b. Allied Powers d. Axis Powers
___6. Which of the following is not a permanent member of the UN Security Council?
a. US c. Russian Federation
b. China d. Japan
___7. Which of the six branches of the United Nations has the authority to issue sanctions and
authorize military action?
a. The General Assembly c. The Secretariat
b. The International Court of Justice d. Economic and Social Council
___8. When was the Marshall Plan in operation?

a. 1945-1948 c. 1948-1951
b. 1947-1954 d. 1953-1955
___9. A host of nations banding together to stop an aggressor state could be considered:
a. Collectivism c. Common Security Program
b. Mutual Defense d. Collective Security
___10. Who was instrumental in founding the League of Nations in 1920?

a. Franklin Roosevelt c. Woodrow Wilson
b. Mikhail Gorbachev d. Theodore Roosevelt

EVALUATE
Worksheet 3
The Universal Declaration of Human Rights was created by the United Nations in 1948 to
firmly define the ideas of human rights and fundamental freedoms. The Declaration contains 30
articles that are considered to be the basic rights that cannot be denied to any human being in
the world. Although this is not a legally binding international treaty, and therefore cannot be
strictly enforced, the Declaration formed the basis of modern ideas about human rights, and parts
of it have been included into nearly every international treaty written since 1948, including
the International Bill of Human Rights.
Prove or Contradict: Does the United Nations hold authority over the Philippines’ War on
Drugs under the Duterte Administration? Justify your answer.
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EVALUATE
Worksheet 3 (con’t.)
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EVALUATE
Worksheet 4
In your own words, define what a state is. Then, describe the role that the interstate
system plays in the international scene and identify its impact on the Philippines. Cite specific
instances wherein the global interstate system affects any situation in the Philippines.
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EVALUATE
Worksheet 4 (con’t.)
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REFERENCES:
Anderson, M. (2000). States and Nationalism in Europe since 1945. London: Routledge.
Avant, D., Finnemore, M. & Sell, S. (2010). Who Governs the Globe? Cambridge Studies in International
Relations 114. Cambridge University Press.
Ba, A. & Hoffmann, M. (2005). Contending Perspectives on Global Governance. London & New York:
Routledge.
Bauman, Z. (1998). Globalization: The Human Consequences. Cambridge: Polity Press.
Beiner, R. (1999). Theorizing Nationalism. Albany: State University of New York Press.
Caplan, R. & Feffer, J. (1996). Europe’s New Nationalism: State and Minorities in Conflict. Oxford:
Oxford University Press.
Castles, S. & Davidson, A. (2000). Citizenship and Migration: Globalization and the Politics of
Belonging. Basingstoke: Macmillan.
Clarke, K. & Primo, D. (2012). A Model Discipline: Political Science and the Logic of Representations.
Oxford: Oxford University Press.
Connor, W. (1978). “A Nation is a Nation, is a State, is an Ethnic Group, is a...". Ethnic and Racial
Studies. 1 (4): 377–400.
Croucher, S. (2004). Globalization and Belonging: Politics of Identity in a Changing World. Lanham:
Rowman and Littlefield Publishers.
Fawcett, L. & Hurrell, A. (1995). Regionalism in World Politics: Regional Organization and International
Order. Oxford: Oxford University Press.
Featherstone, M., Lash, S., & Robertson, R. (1995). Global Modernities. London: SAGE.
Giddens, A. (2002). Runaway World: How Globalization Is Reshaping Our Lives. London: Profile Books.
Giddens, A. (2006). Sociology. Cambridge: Polity Press.
Goodin, R. & Klingemann, H. (1998). A New Handbook of Political Science. Oxford: Oxford University
Press.
Held, D. (2004). Global Covenant. Cambridge, Polity Press.
Held, D., McGrew, A., Goldblatt, D. & Perraton, J. (1999). Global Transformations: Politics, Economy and
Culture, Cambridge, Polity Press.
James, P. & Soguk, N. (2014). Globalization and Politics, Vol. 1: Global Political and Legal Governance.
London: Sage Publications.
McGrew, A. & Lewis, P. (1992) Global Politics, Cambridge, Polity Press.
Roeder, P. (2007). Where Nation-States Come From: Institutional Change in the Age of Nationalism.
Princeton University Press.

Sengupta, S. (2017). The United Nations Explained: Its Purpose, Power and Problems. Retrieved from
the New York Times: http://www.nytimes.com/2017
Thakur, R. & Weiss, T. (2015). Framing Global Governance. In Steger: The Global Studies Reader, New
York, New York: Oxford University Press.
United Nations Department of Public Information. (2017). United Nations System. Retrieved from
http://www.unorg/en/aboutunstruture
United Nations Social and Economic Council. (2017). Retrieved from http://www.un.org/ecosoc/en
World Health Organization (WHO) (2015). Global Governance. January 2015. Retrieved from: http://
www.who.int/trade/glossary/story038/en/
Wallenstein, P. (2012). Understanding Conflict Resolution. London: Sage.

https://www.google.com/search?q=global+divides&rlz=1C1CHBF_enPH803PH803&source=lnms&tbm=isch&sa=X&ved=0ahUK
EwjugIChtN3fAhXbBIgKHRBjCZgQ_AUIDygC&biw=1280&bih=609#imgrc=PakqU6XTpaQWjM:
LEARNING OUTCOMES:
1. Explain how regions are formed and kept together.

2. Establish the important elements related to Global Divides.
3. Discuss the advantages and disadvantages of regionalism.
4. Identify the factors leading to a greater integration of the
Asian region.
5. Realize the over-all impact of regionalism to the Philippines.
Contemporary World Unit 2: A World of Regions

LESSON 4
GLOBAL DIVIDES: The NORTH and the SOUTH
Lesson Objectives:
a. Define Global Divides.
b. Differentiate Global North and Global South.
c. Develop an understanding of the rationale behind such division.
d. Determine the impact of globalization the existence of the Global North-South Divide.
e. Formulate a personal stand on the over-all impact of Global Divides on the Philippines, the
Filipino society and the Filipino self.
ACTIVATE
Analyze the cartoon below and then answer the questions that follow.
https://www.google.com/search?q=comics+about+global+divide&rlz=1C1CHBF_enPH803PH803&tbm=isch&source=iu&ictx=1&fir=BwMvx14Bw0K0hM%253A%252CmG8j90GwV5OsuM%252C_&usg=AI4_-kQ_GpY2Q
yjvUQa3fg5-MmunJoh-2Q&sa=X&ved=2ahUKEwiY_f7ajuDfAhWHdd4KHTOECuQQ9QEwAnoECAEQCA#imgdii=6hwHKnlG121CHM:&imgrc=bl0KeOeaXhPcrM:
1. What do you see in the picture above? ____________________________________________

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2. How will you interpret the said cartoon? ___________________________________________
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EMPOWER
Do you agree that the world is unequal? A lot of you would say, “Yes,” but have you
ever thought of the reason why the world is in such as state? Have you ever wondered why
other countries are so rich, while others are considered as the poorest of the poor? Indeed,
we all have learned how globalization has brought various countries together and yet, it can
also be debated upon that it paved the way for countries to regroup in order to harvest the
fruits of globalization. This lesson will allow you to explore the many factors that brought about
the division of the world. We will investigate the characteristics of the rich and the poor
countries in terms of its location in the globe, and how globalization has contributed to
existence of the global divide.
In the cartoon in the previous page, the one rich man represents the small number of
countries having an abundant and wealthy life. The many people surrounding this man
represents the large member of the globe that is reliant on the rich man. Well, this is basically
how the world appears — a great majority of the population represents the poor countries and
the very few are the rich.
According to Rubin (2018), the North-South or Rich-Poor Divide is the socio-economic and
political division that exists between the wealthy developed countries, known collectively as “the
North,” and the poorer developing countries, known collectively as “the South.”
Let us discuss first how “North” and “South” divide came into being.
When the Civil War ended in 1865, America entered
a period called Reconstruction. Reconstruction was the
national effort to reintegrate the North and the South
so they could function as one nation without slavery. The
war left the Southern economy devastated, and since it
had been based on slavery in the first place, the entire
economic structure had to be rebuilt. Millions of newly
emancipated slaves also had to be integrated into
society as free people. During Reconstruction, the South https://www.google.com/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwiaj aPohPDfAhU-
JwbwKHQkZBMkQjRx6BAgBEAU&url=ht tps%3A%2F%2Fwww.history.com%2Ftopics%2Famerican-civil-
saw a temporary period of military government and war&psig=AOvVaw0RgIePgCly5mYJys8EsTSg&u st=1547649955800018
tremendous social upheaval. But the period after the Civil War also brought significant changes to
the North. Wartime economic growth changed the way people lived after the war, and with the end
of slavery came the beginnings of the Civil Rights Movement that would come to life a whole century
later. So why is the North richer and the South poorer?
The North had already been more industrialized than the South at the start of the war, and
the demands of wartime accelerated the transition in the North from an economy based on farming
to one based on manufacturing. In other words, there was a movement from being an agricultural
country to an industrial one. While the agricultural, slave-based Southern economy was devastated
by the war, the Northern economy benefited from development in many of its industries, including

textile and iron production. The war also stimulated the growth of railroads, improving
transportation infrastructure.
The increasing importance of industry also provided an indirect benefit to education. After
the war, Northerners benefited from wartime legislation, like the Morrill Act, which granted land to
the states for technical colleges that would teach important skills for the new economy. Other
improvements to the new industrial society included the wider spread of telegraph lines, initially
justified by the need for swift military communications. After the war, these telegraph lines made
for easier civilian communication across the growing country, and the quicker spread of news all
around the nation. The mass media as we know it was gathering steam.
Admittedly, the war also demanded some economic sacrifice in the North. The Northern
government had funded its military by raising taxes and borrowing money. People living in the North
emerged from the war paying income tax for the first time.
Like the South, the North had also printed additional paper
money. The value of this money fluctuated during the war,
causing some economic instability. But despite the stress of
wartime, the enormous industrial and economic expansion
allowed the North, and eventually the whole country, to grow
into the industrial power that it is today.
The economy was not the only thing that changed for
people in the North after the Civil War. The fight for racial
equality during Reconstruction changed Northern society as
well as the South. These social movements were less disruptive
to the basic structure of society in the North than they were in https://www.google.com/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwimm7 qcjfDfA
hUBe7wKHcdMByQQjRx6BAgBEAU&url=https%3A%2F%2Fwww.midlandscbd.com%2Farticles%2Fthr
ee-quarters-of-whites-donaaat-have-any-non-white-friends-640&psig=AO vVaw2O-NRQscY0 ClqEiY
the South, and they did not provoke the same level of 0eSN2r&ust=1547652544362428
widespread violence, partly because there were fewer Black people as a percentage of the
population. But Northerners did have to grapple with many of the same issues.
Even though less than 2% of the Northern population was Black, organizations like the National
Equal Rights League pressured white politicians in support of civil rights, particularly voting rights,
and educational opportunities for freed slaves. While they had not been enslaved before the war,
African American citizens in the North still did not enjoy equal status with whites. They had been
guaranteed equal economic privileges and equal status under the law by the Civil Rights Act of 1866,
but these rights were slow to materialize. Especially after many Black soldiers had fought and died in
the Union army, Black citizens felt they deserved the same rights after the war.
Black communities in Philadelphia also fought to desegregate the city's streetcars,
foreshadowing the bus boycotts of the 1960s. Education was another important issue. Many Black
activists in the North focused on equal access to public schools for Black children, another fight that
would continue on into the Civil Rights Movement of the 1960s.
While they did not get all the social changes they wanted, Black people living in the North did
make important gains after the war. One example is the Fifteenth Amendment, which allowed
American men to vote regardless of their 'race, color, or previous condition of servitude.' This was

obviously a big change for the South, but it was also a change for the North: Only seven Northern
states allowed Black people to vote before it was passed. Migration after the war also changed
Northern communities. Many newly freed slaves moved from the South to the North and West,
seeking economic opportunity in Northern industrial cities like Chicago and New York. Other groups
founded towns in the West for ex-slaves. Migration from the South to the North and the West
increased in the years after Reconstruction ended, when it became clear that the newly freed slaves
had not gotten the opportunities they hoped for. The influx of Black immigrants to the North and
West intensified racial tensions there and set off new struggles over housing segregation and pay
discrimination.
These being said, the simplification of the Cold War era in the mid-20th century has
positioned countries in two distinct groups - the North and the South. During this time, nation-states
were primarily classified according to their alliance with the Russian East and the American West.
Countries in the East like the Soviet Union and China, have been categorized as Second World
countries. In the west, the United States and its allies were labelled as First World countries. This
division left out many countries which were poorer than the First World and Second World countries.
Eventually, these poor countries were labeled as Third World countries. This labelling was later on
abandoned after the Second World countries joined the First World countries. Later on, new criteria
was established to categorize countries, which was named the North-South Divide where First World
countries were known as the North while Third World countries comprised the South.
The Brandt Line is a visual
representation of the North-South divide
between various economies, based on GDP per
capita as proposed by Willy Brandt in the 1980s.
It encircles the world at a latitude of 30° N,
passing between North and Central America,
north of Africa and India, but lowered towards
the south to include Australia and New Zealand
above the line. It should be noted, however,
that this categorization ignores the geographic https://www.google.com/imgres?imgurl=https%3A%2F%2Fupload.wikimedia.org%2Fwikipedia%2Fcommons%2Fthumb%2F2%2F2c%2FThe_B
randt_Line.png%2F437px-The_Brandt_Line.png&imgrefurl=https%3A%2F%2Fen.wikipedia.org%2Fwiki%2FBrandt_Report&d ocid=zdJfKO Qgc
position of countries — not because Australia

S0G9M&tbnid=4GQjPcngFZgeIM%3A&vet=10ahUKEwiO7Li-kvDfAhWEW7wKHULcB3YQMwhFKAAwAA..i&w=437 &h=310&b
ih=526&biw=1093&q=brandt%20line&ved=0ahUKEwiO7Li-kvDfAhWEW7wKHULcB3YQMwhFKAAwAA&iact=mrc&uact=8
and New Zealand are located at the southern hemisphere of the globe does not mean that they are
part of the Global South. In fact, these two countries have been labeled as part of the North.
Brandt’s (1980) thesis on international development issues provided a foundation to the study
of the drastic differences in the economic development for both the North and South hemispheres
of the world. The findings of his report suggests that there is a great gap between the standards
of living along the North and South divide. With this in mind, developed countries should therefore
transfer a large amount of resources to the developing countries since the countries of the North
divide are extremely wealthy because of their successes in terms of trade in manufactured goods
and the countries of the South divide suffer from poverty due to their trade in intermediate goods,
where export incomes are low.

( )
All of us are certainly well-aware of the term, 'First World country.' Do you know exactly what
this meant? Again we go back to the Cold War Era of the early 1950s to trace the first use of the
terms ‘First World,’ ‘Second World,’ and ‘Third World’, which actually came into use in France during
this time. The First World was the allied powers of western Europe and North America, including of
course, their allies. Generally, the Global North is comprised of countries which have developed
economies. These countries are the reasons why there are over 90% manufacturing industries in the
world. Although these countries consist of only one-quarter of the total global population, they
control 80% of the total income earned around the world. Hence, the first world countries are
considered as the most affluent and economically stable countries in the world. The major key
players in this capitalist and democratic alliance included all the members of the Group of Eight
(also known as the G8) and the permanent members of the United Nations Security Council (also
known as the Permanent Five, Big Five or P5). The G8 or the eight highly industrialized nations came
from the North namely, France, Germany, Italy, the United Kingdom, the United States, Canada,
Russia, with the exception of Japan; the permanent members of the United Nations Security
Council (also known as the Permanent Five, Big Five, or P5) are the five states which the UN
Charter of 1945 grants a permanent seat in the UN Security Council include: China (formerly
the Republic of China), France, Russia (formerly the Soviet Union), the United Kingdom, and the
United States. The Global North also includes the Four Asian Tigers namely: Hong Kong, Singapore,
Soutuh Korea and Taiwan, as well as Australia and New Zealand (as mentioned previously. Mostly, it
covers the West, along with much of the Second World.
It should be noted that the term ‘First World’ was formerly based on strictly geographical
location but as nations become economically developed, countries become part of the ‘North”
depending on the degree of industrialization or development in the country, regardless of
geographical location. In other words, countries that are developed are classified as belonging to
the Global North. The Dictionary of Human Geography defines development as “processes of social
change or [a change] to class and state projects to transform national economies (2016). Hence,
the basis for this classification is the country’s economic development, which is actually a measure
of progress in a specific economy. This refers to advancements in technology, improvement in living
standards, life expectancy, levels of education, poverty rate, employment rate, and a transition from
an agricultural economy to an industrial one (IMF, 2016). It is for these reasons that The North is
also coined as the More Economically Developed Countries (MEDCs). They are the rich, developed
nations, which would include the richest and most powerful nations from both sides of the Cold War
conflict.
To date, about 95% of the population in countries in The North have enough basic needs and
have access to functioning education systems (World Bank, 2017). Many countries that were made
rich by extracting oil reserves since the end of the Cold War, like Venezuela, Saudi Arabia, United
Arab Emirates, Qatar, and others are now also considered economically developed First World
countries.

Take a look at the chart below and see how certain countries are classified:
Original
Country Modern Industrial Classification
Political Classification
United States First World First World

Russia Second World First World
United Kingdom First World First World
China Second World First World

Australia First World First World
France First World First World
There are also some examples of First or Second World countries becoming Third World
countries, and of Third World countries moving up the industrialization ladder. The chart below may
hold more surprises for you than the last one.
Original
Country Modern Industrial Classification
Political Classification
Cuba Second World Third World
North Korea Second World Third World
Saudi Arabia Third World First World
Venezuela Third World First World
( )
The term ‘Third World’ was originally a political term not aligned with either the capitalist or
communist powers of the Cold War. It was actually defined as all those states that did not involve
themselves in the Cold War conflict of ideologies (McMahon, 2003). This loose conglomeration of
countries included most of Africa, almost all of Central and South America, most of the Baltic
States and the Middle East, most of the southern Asian countries from Afghanistan to Thailand as
well as most of the island nations between Australia and southern Asia. These varied states included
rich and poor nations and also communist and capitalist nations.
This definition has morphed over the years so much so that the term ‘Third World’ is almost
exclusively used to refer to countries with lots of poverty and very little economic or industrial
development. Countries that hoped to navigate between the two poles of the Cold War to explore
the countries that were generally less economically developed than their First- and Second-World

represents the colonized countries which are in need of international aid and is considered as the
Less Economically Developed Countries (LEDCs) because their Gross Domestic Product (GDP), Human
Development Index (HDI), and the general standard of living are deemed inferior to that of
countries in the North. The Global South is described as the poorer part of the world that lacks
appropriate technology, has no political stability, whose prices are fluctuating, economies are
unyielding and whose foreign exchange earnings are primarily dependent on export products to the
North. Another common characteristic of the countries in the South is the very high population rate
that lack of basic amenities. As little as 5% of the population is able to access basic needs such as
food and shelter. The lack of development of the Global South leaves it a source of raw material for
the first world countries as it exercises a low level of control over imports and exports to conform
to the ‘imperialist system.’
The poor countries making up the South, which are mainly drawn from South America, Africa
and Southern Asia are (by both definitions), are Third World. The only Asian countries not from the
South are Japan and South Korea. The Global South comprises the 3/4 of the world populations that
has access to only 1/5 of the world income. Some examples of these countries include Somalia,
Botswana, Sumatra, Sudan, Vietnam, Haiti and India.
What then are the key differences between the Global North and the Global South?
KEY DIFFERENCES BETWEEN THE GLOBAL DIVIDES:

The following are the major differences between the Global North and the Global South:
1. The countries which are independent and prosperous are known as Global North (Developed
Countries). The countries which are facing the beginning of industrialization are called
(Developing Countries).
2. The Global North have a high per capita income and GDP as compared to the countries in the
Global South.
3. Countries in the North have literacy rate that is high. Conversely, illiteracy rate is high in the
South.
4. The Global North have good infrastructure and a better environment in terms of health and
safety, which are absent in the Global South.
5. The first world countries generate revenue from the industrial sector while the third world
countries generate revenue from the service sector.
6. In developed countries, the standard of living of people is high, which is moderate in
developing countries.
7. Resources are effectively and efficiently utilized in the North. On the other hand, proper
utilization of resources is not done in the South.
8. In the North, the birth rate and death rate are low, whereas in developing countries both the
rates are high.

Clearly, there is a big disparity in many aspects of the Global North and the Global South.
The said characteristics and measures are significant factors that continue to worsen global
inequality that widen the gap between the rich and poor.
Let us now try to characterize the so-called Second World Countries.
THE ORIGINAL SECOND WORLD COUNTRIES

In the past, there existed an incredibly large and quite powerful nation called the Soviet
Union (USSR). It consisted of what is now Russia as its core member, with the capital of the Soviet
Union being Moscow, Russia. The rest of the Soviet Union included member states that are now
independent countries called: Armenia, Azerbaijan, Belarus, Estonia, Georgia, Kazakhstan, Kyrgyzstan,
Latvia, Lithuania, Moldova, Tajikistan, Turkmenistan, Ukraine and Uzbekistan.
The Soviet Union was founded in 1922 and was fully dissolved in 1991. During its existence, the
Soviet Union was far and away the most powerful and influential communist nation on Earth. At the
time, the Western democracies decided to label the Soviet Union and other communist nations of the
world as Second World countries. Meaning, the original term of a Second World country had a more
geopolitical ring to it. Second World countries have a fair degree of development and wealth (but
not as much as the richest nations. Other communist nations at the time were: Poland, Albania,
Yugoslavia, Czechoslovakia, Romania, Bulgaria, Hungary, East Germany, Angola, Benin, Congo-
Brazzaville, Ethiopia, Mozambique, Somalia, Afghanistan, Cambodia, Mongolia, North Vietnam, South
Yemen, China, North Korea, Vietnam, Laos, and Cuba. All, but the last 5 nations are no longer com-
munist, having dissolved or overthrown their communist regimes right around the time the Soviet
Union, their main benefactor (or oppressor), collapsed as well.
In a modern manner of speaking, the term Second World is used far more loosely. Today, it is
sometimes used by people to refer to countries with developing economies that are not quite as
advanced as Western nations like the U.S. but definitely not as far behind as many developing
nations, such as some of those in found in Africa. But the delineation between these nations is very
subjective and can be based on many other factors.
The North-South Divide is criticized for being a way of segregating people along economic
lines and is seen as a factor of the widening gap between developed and developing economies.
However, several measures have been put in place to contract the North-South Divide including the
lobbying for international free trade and globalization. The United Nations has been in the forefront
in diminishing the North-South Divide through policies highlighted in its Millennium Development Goals.
It is likewise important to remember that the terms First World country, Second World
country, and Third World country are seen as either outdated, politically incorrect, useless, too
subjective, or any combination thereof nowadays. Ergo, a Second World country is no longer any
specific nation or group of nations whatsoever.

EVALUATE
Worksheet 1
Comparison Chart of the Global Divides
Evaluate the characteristics of the Global South and the Global North. Write the differences
between the two based on the characteristics given on the first column of the table below.
BASIS FOR COMPARISON GLOBAL SOUTH GLOBAL NORTH
Definition
Unemployment and Poverty

Rates
(low, high, moderate)
Mortality Rate (Infant, Birth,

and Death Rates)
Life Expectancy Rate

Living conditions
(good, moderate)
Generates more revenue

from
Growth
Standard of living
Distribution of Income
(equal, unequal)
Factors of Production
(effectively or ineffectively utilized)

Worksheet 2
Short Essay. You have just learned the differences between the Global Divides. This time,
let’s examine the factors that lead to these differences. Read and analyze each question
carefully. Answer each item briefly but concisely in not more than 5 sentences.
1. Why are countries in the North considered as MEDC? _____________________________________

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2. Why are countries in the South considered as LEDC?____________________________________

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3. Why is the South at such as disadvantage? _____________________________________________

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Worksheet 3
As a region, Latin America has multiple nation-states, with a complex export-based
economy comprising of countries in Central America, South America, and the Caribbean. Your task
is to describe one of the following Latin American countries: Brazil, Argentina, Colombia, Mexico,
and Chile, based on economic sectors, infrastructure, foreign investment, and contemporary
foreign and economic policies. Fill-in your answers using the table below.
__________________________________
COUNTRY
Economic Foreign Foreign Economic

Infrastructure
Sectors Investment Policies Policies
Based on your given answers above, is your chosen country part of the Global North or
the Global South? Justify your answer. _______________________________________
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Worksheet 4
The Philippines is among the third world countries belonging to the Global South. What do you think
are the factors that lead to it being one of the LEDCs? What should the leaders of the Philippines
do to help improve its economy so that it can have a chance to become part of the Global North in
the future? Write a short reflection on these questions to describe the over-all impact of Global
Divides on the Philippines, the Filipino society and the Filipino self.
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Worksheet 4 (continuation)
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REFERENCES:
Eriksen, T. (2015). What’s wrong with the Global North and the Global South?. Global South Studies
Center. Archived from the original on 2016-10-09. Retrieved last 2016-10-06.
Fioramonti, L. (2013). Civil Society and World Regions: How Citizens are Shaping Regional Governance in
Times of Crisis. Lanham, Maryland: Lexington Books.
Gregory, D, Derek, R., Pratt, G., Watts, M. & Whatmore, S. (2009) The Dictionary of Human Geography. 5th.
Wiley-Blackwell, 2009.
Grugel, J. & Hout, W. (1999). Regionalism Across the North-South Divide: State Strategies and Globalization.
Psychology Press.
Kanbur, R., Changyong, R. & Zhuang J. (2014). Inequality in the Asia Pacific: Trends, Drivers and Policy
Implications. Asian Development Bank and Routledge.
Katzenstein, P. (2005). A World of Regions. Cornell studies in Political Economy. University of

Michigan: Cornell University Press.
Mimiko, O. (2012). Globalization: The Politics of Global Economic Relations and International Business.
North Carolina: Carolina Academic Press.
Mitlin, D. & Satterthwaite, D. (2013). Urban Poverty in the Global South: Scale and Nature. Routledge.
Preece, J. (2009). Lifelong learning and development: a perspective from the 'South'. A Journal of
Comparative and International Education. 39(5): 585–599. doi:10.1080/03057920903125602.
Reuveny, R., & Thompson, W. (2007). The North-South Divide and International Studies: A
Symposium. International Studies Review. 9(4): 556–564. doi:10.1111/j.1468-2486.2007.00722.x.
Sawe, B. (2017). What is the North and South Divide? Retrieved last February 2017 from https://
www.worldatlas.com/articles/what-is-the-north-south-divide.html
Therien, J. (1999). Beyond the North-South divide: The two tales of world poverty. Third World
Quarterly. 20 (4): 723–742. doi:10.1080/01436599913523.
United Nations Millennium Development Goals. Taken from www.un.org.
No Author. (1980). Patterns of Urban and Rural Population Growth. United Nations Population Studies. 68:13.
Retrieved last January 14, 2017 from https://esa.un.org/unpd/wup/Archive/Files/studies/United%
Nations%20(1980)%20Patterns%20of%20Urban%20and%20Rural%20Population%20Growth.pdf.
No Author. (2013). South-south cooperation. Appropriate Technology, 40(1), 45-48. Retrieved

from http://search.proquest.com/docview/1326792037

LESSON 5
ASIAN REGIONALISM
Lesson Objectives:
a. Compare and contrast globalization and regionalization.
b. Characterize Asian Regionalism and explain its purpose.
c. Expound on the rationale behind the creation of regional organizations.
d. Determine the factors leading to a greater integration of the Asian Region.
e. Synthesize on how Asian countries confront globalization and regionalization.
ACTIVATE
If you are to give a title on the cartoon below, what would it be and why?
TITLE: _______________________________________________________________________
https://www.google.com/search?q=cartoon+about+regional+integration&tbm=isch&tbs=rimg:Ccw--Ya7r1PLIjj2WNuZkiEITAJCYMuA7eMNZjXjlvS6Xa6UnDVsufVfuY8krGZZ7pt2bsfnhO7TBlQa0Dq2AvyEkyoSC fZY25mSIQhMEZB0Cjk
8QKLeKhIJAkJgy4Dt4w0RqT6WfUReMBwqEglmNeOW9LpdrhEcn-MljIYKvioSCZScNWy59V-5EddUAWA1KwRvKhIJjySsZlnum3YRYFa_1ysekwnAqEglux-eE7tMGVBGkKmUDfi-_1OioSCRrQOrYC_1ISTESZTUC1XBA5n&tbo=u &sa=X
&ved=2ahUKEwi99NnDl_jfAhWYdt4KHYyoCVgQ9C96BAgBEBg&biw=911&bih=438&dpr=1.5#imgrc=zD75hruvU8vc3M:
Why did you give that title for the cartoon above? _____________________________________
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What does the picture have to do with globalization? __________________________________
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____________________________________________________________________________

EMPOWER
Imagine being a geographer. That, certainly is a big job because you have got to study all
the landforms of the world. Think you can do it? Actually, geographers rarely work on a scale that
big. Instead, they break the world up into smaller pieces that are more efficient to study. These
pieces are regions. In geography, a region is a conceptual unit; it is a place defined not necessarily
by strict physical borders but by whatever criteria the geographer finds to be most useful. Maybe
the geographer wants to study a physical region and looks at the rocky mountains or, maybe the
geographer is more interested in a cultural region, and examines the distribution of people who
speak Spanglish. There are many ways to break apart the world into regions, and it can make
geography much more manageable, and also a lot of fun.
So, how exactly do geographers identify regions? Breaking apart a larger area into
smaller regions is something known as the regionalization process. This is how geographers
identify the parameters of regions within a greater area of space. For it to be useful,
regionalization must break areas into practical units. Therefore, the regionalization process is
not actually about creating regions as much as it is about identifying regions that already exist.
While regionalization can occur based around any topic of study, m ost regions can be
assigned into one of three categories. Formal regions are defined by a single trait shared by every
person in the region. Vernacular regions are more cultural, defined by common ideas shared by
people in the region. People in a functional region share some sort of relationship with a concrete
focal point. The scale of a region, whether it is global, national, or local, can help geographers
identify trends or groupings of people.
What then is the difference between globalization and regionalization?
You all have learned that globalization is the process of international integration arising from
the interchange of world views, products, ideas and other aspects of human life such as technology.
It refers to the establishment of worldwide operations and the development of standardized
products and marketing. The rationale behind globalization is to compete by establishing worldwide
economic of scale, offshore manufacturing and international cash flows. The firms’ strategies
normally include forming an alliance with rivals, suppliers and customers although it is more
vulnerable to environment risk. With globalization, countries are difficult to manage because it
requires the coordination of broadly divergent national cultures to some extent, that the firms
need to lose some of their original identity. Global strategy necessarily treats all countries
similarly, regardless of their differences in cultures and systems.
A s globalization spread all over the world practically involving many countries,
customs and legal restrictions because business must cross international borders,
globalization has been found most effective for increasing competitive influence resulting
from regional trading alliances and declining tariffs, which in turn, encourage trading
across borders and open up new markets. Other than that, the information technology
explosion such as e-commerce has made the coordination of far-flung operations easier

while increasing the commonality of consumer tastes.
Regionalization, on the other hand, is the process of dividing an area into smaller segments
called regions. Basically, this is the division of nation into states or provinces. According to Hoshiro
(2008), regionalization is defined as an increase in the cross-border flow of capital, goods, and
people within a specific geographical area. It develops from the bottom up through societal drive
processes coming from markets, private trade, and investment flows, none of which is strictly
controlled by governments. The core players are non-governmental actors such as the firms or
individuals. Here, local markets are linked together within a region where leaders within
each region decide on their own investment locations, product mixes and competitive
positioning. Furthermore, regionalization is more limited to an area like a prefecture, that has
many cities, each of which has unique, special ways of doing business. Compared to
globalization, regionalization is more manageable and less risky, which allow firms to
capitalize on local competencies while subsidiaries retain a flexible approach to each other.
In addition, regionalization offers more local responsiveness and specialization and is suitable for
newly developed economies and developing economies. Conceived as an undirected process of
growing interdependence which originates in the actions of individuals, groups, and corporations,
rather than through the deliberate actions of national governments, regionalization facilitates an
increase in the number of regional economic transactions such as money, trade, and foreign direct
investment or FDI, and lead to the use of domestic subsidies and tax exemptions. New production
technologies on a regional level also tend to facilitate product variation for less cost than before.
Since economic integration is inevitable in the local, regional or international levels, whereby
economic opportunities and threats spur from all over the world as a result of globalization and
regionalization, forging ties and alliances has become a practical need for a nation. As they say,
‘there is always strength in numbers.’
To purposely fashion out the rationale behind establishing regional organizations, and grant a
formal status in the international scene, legally recognized by the international law such as that of
the United Nations or the World Trade Organization, it is imperative that the concept of Regionalism
be understood first.
Regionalism is defined as a political will to create a formal arrangement among states on a
geographically restricted basis. Regionalism refers to the conscious and deliberate attempts by
national states to create a formal mechanism for dealing with common transnational issues through
intergovernmental dialogue and treaty (Breslin, 2004). In simplest term, it is a formal process of
intergovernmental collaboration between two or more states. Since its main participants are
governments, it can be expressed as an artificial top-down process. It sets out an agreement of
regionally close governments to establish kinds of formal institutions such as the Asia Pacific
Economic Cooperation, the East Asia Summit, or bilateral preferential trade agreements in order to
cooperate with each other on various issues.
This lesson will focus on Asian Regionalism as it has been emerging against the backdrop of
a remarkable half century of economic development.

The center of gravity of the global economy is
shifting to Asia (Jayanthakumaran, et. Al. 2008). In fact,
the World Development Indicators describe Asia’s
economy as already similar in size to those of Europe
and North America, and its world impact continues to
increase (2008). In many Asian countries, the cycle of
poverty has been broken while others persist to grow
well. With regional economic cooperation, Asia’s https://www.google.com/search?rlz=1C1CHBD_enPH767PH767&biw=1093&bih=526&tbm=isch&sa=1&ei=vhZDXJTXJpimoATpop3wBA&q=asian+economy& o
q=asian+economy&gs_l=img.1.0.0l2j0i5i30j0i8i30j0i24l4j0i10i24l2.318961.321180..322827...0.0..0.939.4187.3-2j0j3j2......0....1..gws-wiz-img.......0i67.M51
extraordinary success is unprecedented.

Z8G17uSg#imgrc=j60X1UzSy-weRM:
Note, however, that in the early stages of Asia’s economic take-off, regional integration
was slow. Specifically, East Asian economies focused on exporting to developed country markets
rather than selling to each other. Initially, they specialized in simple, labor-intensive manufactures.
As the more advanced among them graduated to more sophisticated products, less developed
economies filled the gap that they left behind. The Japanese economist Akamatsu (1962) famously
compared this pattern of development to flying geese. In this model, economies were described to
have moved in formation not because they were directly linked to each other, but because they
followed similar paths. Of course, the development did not yield strong economic links within Asia at
first considering the sequential and competing markets outside the region. But as Asian economies
are becoming closely intertwined not because of the changes in the region’s development strategy
but because of predominantly nondiscriminatory and outward-oriented policies, interdependence has
proved very evident. In effect, Asia’s economies have grown large and prosperous enough to
become important to each other, that patterns of production have increasingly depended on
networks that span several Asian economies and involved wide-range exchanges of parts and
components among them. Asia is at the center of the development of such production networks
because it has efficient transport and communication links, as well as policies geared to supporting
trade.
The region is home to over half the world’s population, producing 3/10 of global output (in
terms of purchasing power), and consistently records the world’s highest economic growth rates.
The Asian “miracle” (World Bank 1993) did not end with the 1997-1998 financial crisis — for some
countries, it even marked Asia’s Renaissance Period or the beginning of its renewed acceleration
focused on finding new and flexible forms of cooperation that reflect the region’s diversity and
simplicity. Asia’s economies are increasingly connected through trade, financial transactions, direct
investment, technology, labor and tourist flows, and other economic relationships. It conducts more
than half of its trade with itself, with some of the world’s wealthiest economies and some of its
poorest. Its strength derives from many factors such as openness, diversity, and dynamism of its
interconnected economies.
Recent times have witnessed an unprecedented growth in the number of regional economic
integration agreements in Asia across the globe, which helps bridge development gaps among its

members. This being said, the Asia-Asia economic cooperation in the region is deemed even more
imperative in the future.
China, Japan, India, South Korea and Indonesia are currently the top five economies in
Asia (ADB, 2017). In fact, it is now common knowledge that India and the People's Republic of China
(PRC) are the fastest growing economies in Asia. The most distinct characteristic of Asian
economies is making good use of what some of the individual countries have to contribute. Let us
discuss in brief the leading countries with their strong points that promote the Asian region
(adopted from Vogel, 2010).
Japan, as we know it, has been the pioneer in bringing modernization to Asia. It may be
relatively small in size, but Japan remains one of the three largest economies in the world, with one
of the best-educated and healthiest populations. Its technology and quality of production has
positioned the global standards, and its law-abiding citizenry facilitate one of the lowest crime
rates in the world. Being the only major country in the globe that has chosen not to have nuclear
weapons, Japan has the moral authority to take a leading position in the fight against nuclear
proliferation. Finally, as the global leader in energy technology and environmental protection, it can
make a major contribution in these areas.
On the other hand, China, driven by an unpredictable economic growth and a massive
population, has begun to play a central role in boosting the region’s economy. Its people have
continuously produced new ideas and developed extraordinarily quick. Now, it is producing large
numbers of young minds capable of taking a role in strengthening regional and global organizations.
Similarly, both South Korea and Australia also have unique contributions to make. South
Korea, along with Singapore, is the most multicultural country in East Asia, and continues to send
many students to countries throughout the world. Australia has played a special role, not only as
the region’s key supplier of many raw materials, but also as the one sizeable Caucasian country
that is in effect in Asia. No country outside South Korea has trained a higher percentage of its
population in Japanese language and culture. No country outside Indonesia has done more to study
Indonesia. Accordingly, Australia continues to play a key role in maintaining security within the Asia-
Pacific.
How, then, does regionalism benefit the Asian region?
(adopted from ADB, 2008)

Asian Regional cooperation, effectively structured and implemented, has been a powerful tool
in addressing global challenges in the region and provide stronger foundation for its global role. An
integrated region can:
 link the competitive strengths of its diverse economies in order to boost their productivity
and sustain the region’s exceptional growth;
 connect the region’s capital markets to enhance financial stability, reduce the cost of capital,
and improve opportunities for sharing risks;
 cooperate in setting exchange rate and macroeconomic policies in order to minimize the

effects of global and regional shocks and to facilitate the resolution of global imbalances;
 pool the region’s foreign exchange reserves to make more resources available for investment
and development;
 exercise leadership in global decision making to sustain the open global trade and financial
systems that have supported a half century of unparalleled economic development;
 build connected infrastructure and collaborate on inclusive development to reduce inequalities
within and across economies and thus to strengthen support for pro-growth policies;
 and create regional mechanisms to manage cross-border health, safety, and environmental
issues better.
The opportunities are indeed clear, which is why regional integration has become a high
priority in national policy making. Yet the challenge of cooperation cannot be underestimated since it
requires trust, innovation, and compromise and, most likely, time. However, policy-makers appear
committed to pushing the regional agenda forward, but most definitely, it requires considerable
leadership and energy to achieve desirable results.
The rest of the world could benefit, too. With continuous economic integration not just with
each other but with the rest of the globe, coupled with sustained dynamism of the Asian Region, and
strengthened regional cooperation, Asia would surely reinforce a new and stabilizing mechanism of
global economic growth. So how does Asian Regionalism benefit the world?
? (adopted from ADB, 2008)

An integrated Asia can:
 generate productivity gains, new ideas, and competition that boost economic growth and
raise incomes across the world;
 contribute to the efficiency and stability of global financial markets by making Asian capital
markets stronger and safer, and by maximizing the productive use of Asian savings;
 diversify sources of global demand, helping to stabilize the world economy and diminish the
risks posed by global imbalances and downturns in other major economies;
 provide leadership to help sustain open global trade and financial systems; and create
regional mechanisms to manage health, safety, and environmental issues better, and thus
contribute to more effective global solutions of these problems.
Asia’s deepening connections are beginning to be reinforced by policy until formal economic
cooperation among Asian governments found it crucial to establish regional organizations as an
important element of the region’s policy making architecture.
(Source: www.asean.org)
ASSOCIATION OF SOUTH EAST ASIAN NATIONS (ASEAN)
Founded in 1967, the ASEAN now has ten member states (Brunei Darussalam, Cambodia,
Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam). Cooperation

in ASEAN up to this day has focused on economic integration. Its member states decided to
establish the ASEAN Economic Community (AEC) in November 2015 as a symbolic step towards an
internal market with free movement of goods and capital and freedom of movement for workers.
The ASEAN Charter, which entered into force on December 15, 2008, motivated cooperation within
ASEAN, particularly in the political and security spheres, and in the cultural and social fields. The
Charter provides a foundation for the further development of the ASEAN community and gives
ASEAN a legal personality. It also records the ASEAN states’ commitment to the rule of law,
democracy and good governance and envisages the formation of a human rights body.
ASEAN + 3
ASEAN Plus Three is the name given to the regional framework for dialogue between the ten
ASEAN member states and the three East Asian powers China, Japan and South Korea. ASEAN Plus
Three was formed in the late 1990s in response to the Asian financial crisis and works mainly on
economic, trade and financial policy, but also on environmental and health issues. The multilateral
cooperation of ASEAN Plus Three has also given rise to a number of agreements such as the free
trade agreements of the ASEAN with China, Japan and South Korea.
EAST ASIA SUMMIT (EAS)

16 Heads of State and Government of the 10 ASEAN states as well as of China, Japan, South
Korea, Australia, New Zealand and India have been meeting in the framework of the East Asia
Summit since 2005. The United States and Russia have been full members of the EAS process since
the EAS Summit in 2011. The EAS, a forum in which security policy issues and soft issues are
discussed, is becoming increasingly important. The EAS complements the Asia-Pacific Economic
Cooperation, which primarily focuses on economic and financial policy issues.
ASEAN Regional Forum (ARF)

The ASEAN Regional Forum (ARF) was founded in 1994 following a decision by the ASEAN
Foreign Ministers. The ARF deals with security issues and is the only institutionalized security-policy
discussion forum in the Asia-Pacific region. Along with the ten ASEAN member states, another 16
countries – Australia, Bangladesh, Canada, China, India, Japan, Mongolia, New Zealand, North Korea,
Pakistan, Papua New Guinea, the Russian Federation, South Korea, Sri Lanka, Timor-Leste and the
United States – currently participate, as well as the EU. For the EU, the ARF is the important forum
in the Asia-Pacific for advocating its security policy concepts and promoting confidence-building and
preventive diplomacy (Sourced from the official website of ASEAN Regional Forum).
SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION (SAARC)

SAARC was founded in 1985 by Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri
Lanka. Afghanistan has been the eighth member since 2007. Together with China, Japan, South
Korea and the United States, the EU attended the SAARC Summit as an observer for the first time
in New Delhi in 2007. SAARC itself has had observer status at the UN since December 2004. SAARC
concentrates on economic and trade issues. The agreement to create the South Asian Free Trade

Area (SAFTA), which entered into force in 2006, marked a milestone in regional economic
cooperation. SAFTA has been ratified by all member states. SAARC’s remit extends to cooperation in
seven key areas, including agriculture and rural development, environment and forestry, human
resources development and transport (Sourced from the official website of SAARC).
ASIA-PACIFIC ECONOMIC COOPERATION (APEC)

APEC was founded in 1989 on the initiative of Japan and Australia and aims to strengthen
economic growth in the Asia-Pacific region, not least by dismantling tariffs and other barriers to
trade. At their summit in Bogor (Indonesia) in 1994, the APEC countries agreed to set up a free
trade area within the economic community (Bogor Goals). Summits at head of state and government
level are held annually with the participation of business executives. Climate protection appeared on
APEC’s agenda for the first time at the 15 th Summit in Sydney in 2007. APEC currently has 21
“member economies”: Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, Malaysia,
Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, the Russian Federation, Singapore,
South Korea, Taiwan, Thailand, the United States and Viet Nam. Together these economies account
for some 55% of global GDP and some 45% of global trade.
The Philippines remains to be an active and important founding member of the ASEAN having
hosted several summits recently and in the past. With the dispute between China and the Philippines
over the West Philippine Sea, the current administration under President Rodrigo Duterte aims to
preserve the incessant cooperation between the members of the organization as he finds various
means to foster peaceful and open ties with China.
Without a doubt, Asia’s outlook is

bright - statistics may inherently be
speculative and questioned, but Asia is
likely to continue to outperform over the
next decade, with rapid income growth
remains to be a high priority for Asian
countries in the foreseeable future.
The indicators of which include: an
intense intraregional trade, tourism,
trade policy cooperation, foreign direct
in ves tment, equity ma rk ets an d
macroeconomic links.

The logic for Asian economic cooperation is powerful. The region is already highly integrated,
and its governments are aware of their common interests and obligations. Increasingly, they are
working together. Asia has returned to stability and growth, and goals that seemed daunting a few
years ago—the elimination of systematic poverty and the absorption of large masses of people into
a prosperous middle class—are now within reach. To be sure, important problems remain, and
regional cooperation will require complex and delicate decisions. But Asia has begun the search for
common solutions to its shared challenges.
Given the problems that arose from the Asian Financial Crisis, the following are the policy
recommendations used to speed resolution and minimize impact.

Asia’s growing interdependence presents a compelling case for regional cooperation — to
deliver regional public goods, manage regional externalities, and help coordinate policies within the
region, as well as acting together to ensure an open global economic environment. Efforts were
undertaken as well as specific proposals on trade, investment and financial cooperation. The
following Recommendations of the East Asia Study Group (2001) for the creation of an East Asian
Economic Community.
Economic integration has facilitated a bonafide regional community in East Asia where
collective efforts are made for peace, prosperity, and progress. Given the divergences that exist
among the member states, it is cooperation that contributed much to Asia’s prosperity.

EVALUATE
Worksheet 1
Compare and contrast ‘globalization’ and ‘regionalization’ by filling-up the graphic organizer below.

Worksheet 2
Research on the most recent ASEAN Summit held in the Philippines. Write down the main
point agenda of the summit to bolster the economic growth of the Asian Region and then evaluate
the potential impact of each identified agenda on the member countries. You may use the table
below for your answers.
Most Recent ASEAN SUMMIT in the Philippines

Date: ______________________________ Venue: ___________________________
AGENDA POTENTIAL IMPACT

Worksheet 3
While Asian Regionalism has posed several advantages for its member countries and the
entire world, it cannot be denied that there are major issues in relation to its implementation. List
down ten (10) issues and explain its potential impact on the region and the world. An example has
been provided for you below.
PROBABLE THREAT
POTENTIAL IMPACT
caused by Asian Regionalism
Ex. Security threats The free flow of people and goods pose a security threat on the
countries as control over its entry and exit are minimized.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

REFERENCES:
Agosin, M. R., and R. Mayer. 2000. Foreign Investment in Developing Countries: Does it Crowd in Domestic
Investment? UNCTAD Discussion Paper 146. Geneva: United Nations Conference on Trade and
Development (UNCTAD). Barro, R. J., and X. Sala-I-Martin. 1992. Convergence. Journal of Political
Economy 100: 223–251.
Berthelon, M. (2004). Growth Effects of Regional Integration Agreements. Working Papers 278. Santiago:
Central Bank of Chile.
Crespo-Cuaresma, J., Dimitz, M. & Ritzberger-Grünwald, D. (2002). Growth, Convergence, and EU Membership.
Oesterreichische Nationalbank Working Paper 62. Available: http://www.oenb.at/de/img/wp62_tcm14-
6151.pdf (accessed 26 December 2017).
Jayanthakumaran, K., & Verma, R. (2008). International Trade and Regional Income Convergence: The ASEAN-5
Evidence. ASEAN Economic Bulletin 25(2): 179–194.
Kaitila, V. (2004). Integration and Conditional Convergence in the Enlarged EU Area. Discussion Paper 031.
Helsinki: Elinkeinoelämän Tutkimuslaitos (ETLA).
Kawai, M., & Wignaraja, G. (2007). ASEAN+3 or ASEAN+6: Which Way Forward? ADBI Discussion Paper 77. Tokyo:
ADBI.
Hirata, H., Kose, A., & Otrok, C. (2013). Regionalization vs. Globalization. An IMF Working Paper.
Retrieved last February 22, 2017 from https://www.imf.org/external/pubs/ft/wp/2013/
wp1319.pdf
No Author. (2007). Towards Broader Regional Cooperation in Asia. Discussion Paper. Colombo: UNDP-Regional
Centre in Colombo.
Vamvakidis, A. (1998). Regional Integration and Economic Growth. World Bank Economic Review May(12): 251–270.
Vogel, E. (2010). Regionalism in Asia: Why we should stick with existing structures. An Essay presented
to the Japan Institutional Affairs Conference on the East Asian Community idea in Tokyo on
March 17, 2010. Retrieved last February 14, 2017 from http:// www.eastasiaforum.org/2010/03/
30/regionalism-in-asia-why-we-should-stick-with-existing- structures/
World Bank. (2008). World Development Indicators. Washington, DC: World Bank.
Yeats, N., & Deacon, B. (2006). Globalism, Regionalism, and Social Policy: Framing the Debate. UNU/CRIS
Occasional Papers 0-2006/6. Helsinki: United Nations University
No Author. (2006). Regional Trading Arrangements of India: Conceptual and Policy Issues. Paper Presented at
The Indian Economy in the Era of Financial Globalisation, University of Paris–X and Maison des Sciences
de l’Homme, Paris, 28–29 September.
No Author. (2009). Regional Trade-FDI-Poverty Alleviation Linkages: Some Analytical and Empirical Explorations.
Discussion Paper 18. Bonn, Germany: German Development Institute (GDI). Das, R. U., P. Edisuriya, and A.
Swarup. Forthcoming. Regional Economic Engagements and the Free Trade Agreements. New Jersey, NY:
World Scientific.

https://www.google.com/url?sa=i&source=images&cd=&ved=2ahUKEwif37mYyfrfAhWSZt4KHSVVCs0QjRx6BAgBEAU&url=http%3A%2F%2Fwww.innovationmanagement.se%2F2011%2F08%2F15%
2Fideas-move-the-world%2F&psig=AOvVaw35X2QT-iNj5JxDkyuQ9Trt&ust=1548012237532079
LEARNING OUTCOMES:
1. Analyze how various global ideas form global integration.

2. Explain the dynamics between local and global cultural
production.
3. Discuss how globalization affects media culture and religious
beliefs, global conflict and global peace.
4. Develop a deeper understanding of global ideas and its
correlation to the Philippines in general, and to oneself in
particular.
Contemporary World Unit 3: A World of Ideas

LESSON 6
GLOBAL MEDIA CULTURES
Lesson Objectives:
a. Distinguish various media that drive various forms of global integration.
b. Describe the relationship between media and globalization.
c. Explain the dynamic between local and global cultural production.
ACTIVATE
What role does media play in your life as a student?
https://www.google.com/search?q=cartoon+about+global+media&rlz=1C1CHBD_enPH767PH767&tbm=isch&source=iu&ictx=1&fir=ojOCMwpVdGJfNM%253A%252C0DxrPB6WTIHoFM%252C_&usg=AI4_-
kSDAuZJKoOCbyAOpiqW-gLHmHYTTQ&sa=X&ved=2ahUKEwif5MudsfvfAhWEf7wKHQISDPIQ9QEwAnoECAQQCA#imgrc=Eyt9-xQfAyl45M:
1. What types of mass media do you use for entertainment and to gather information? _________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
2. How is it different if you do not media in your everyday encounter with your daily activities ? ___
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________

EMPOWER
Where do you usually get your news? How do you acquire goods and services? How does
technology affect your daily life? You have read this since the beginning of this book: Whether we
like it or not, whether we are ready for it or not, the phenomenon of globalization is more actual
than ever. At this point, we should have realized that there are different ways to approach this
topic, different levels of arguments, and different points of view. What is certain is that,
globalization is intimately connected to sharing information, media (especially new media) often
being regarded as the main vehicle for its rapid expansion. Without gainsaying, globalization has
impacted the media tremendously. How societies create opinions about anything under the sun, how
they stay abreast of market conditions and where they attain information about worldwide issues
have something to do with media. This lesson highlights the overall importance of media for the
core argument of globalization’s far pervading effects. With the expansion and extension, the
debates of impacts, effects and influences of globalization inevitably divide the world into centers
and peripheries. This lesson will address the functions of media in the backdrop of economic,
cultural, technological and new media spheres developed in the recent decades and some of the
challenges that media has to face in a globalized world.
Media refers to the different means of communication like radio, television, internet, direct
mail, etc. It plays a very important role in shaping human mind - in the uncovering, promotion,
education, and dissemination of information. Mass media is a section of the media determined to
reach a greater audience or the general public. On the other hand, Global media refers to forms of
mass communication that reach across the world. Today that includes everything from traditional
media, such as TV, radio, and newspapers, to social media like Youtube, Twitter, and Facebook.
Thanks to satellites and the internet, even the most regional news can be found and accessed
across the entire world.
Most globalization theorists believe that media has played an important role in acceleration
of globalization. With the increase in the importance of economic, cultural and technological
integration between countries, it has a great impact on our society’s personal lives. It is because of
globalization that today there is an increased access to a broad range of media. The most visible
effect of globalization is wide spread communication. The introduction of newspapers, magazine,
internet and TV has immensely helped to spread information and has helped people to come
together from all over the world.
From all the discussions about globalization, we have learned that there are positive and
negative impacts of globalization on various aspects of the human life. Its influence on media has
also its own advantages and disadvantages, but the advantages are much more.
As mentioned above, one can see that the process of globalization has led to opening up of
people mind not just within their boundaries but also be aware of what is happening around the

world. Ever since mass media came into existence, societies have used it as a means to
communicate to let a large number of people aware about their products. Even the people
watching, listening, or reading about an issue, a product or a service, are in a position to gain
maximum benefit because of the opportunity to decipher between good or bad as per their
requirements. Sure enough, with the years passing by and the increasing globalization, there have
been a sophisticated development in advertising methods and advancement in the techniques. Note,
however, that globalization in media, is not just restricted to advertisement in other fields. In fact,
it encompasses every field that has opened up broader communication lines bringing several
companies, economies and more importantly, countries together.
Aside from providing people opportunities to do things with more ease, the roles of the
internet, television, the radio and other forms of media have transformed the consumer behavior in
today’s fast paced world.
Whether at school, work or home, people have access to the internet these days. Younger
people are heavily active on social networks like Facebook and LinkedIn. In fact, these social
networks sometimes bring integrity and helps people stay connected. It acts as a platform to the
society for better connectivity. In Asia, almost 10% of Asians are on Facebook. The number of
Facebook users in Asia is 93,584,580 and the internet users in Asia is 828,930,856 (Sourced from
internetworldstats..com/Asia).
In the political field, media serve as a medium to connect to the viewers. Given the situation
that many people are unable to go through the newspapers everyday because of a very busy
schedule, they still get to read, watch or listen about political issues through the internet, television
or the radio. Media updates at every instant on the internet is able to solicit a lot of responses
from all its viewers which helps them get feedbacks to make amendments. In the Philippines, the
internet has been a powerful tool during the campaign period. Imagine how the so-called
“Dutertards” and “Yellowtards” have thrown issues at each other to get ahead of one another. The
television gives people a clearer picture of what is happening around the world.
In terms of economical aspect, media has also allowed people to start shifting from the
conventional ways of doing things to a more modern, much easier and hustle-free method of
trading, banking, and many others. The internet facility provided by media channels, broadcast
channels, and radio frequencies have made cross-border transactions faster and diverse.
Another important aspect of media has also impacted the cultural and traditional aspects
of the human life, shaping people’s cultural identity. The free flow of information, the variety of
choices that have changed the tastes of individual and societies, the inter-mix and exchange of
ideas and thoughts between countries have led to a stronger integration between people and
countries alike, as various issues of the society and politics are depicted in media and as exchange
of these cultural and traditional aspects leads to a consolidation of culture.
Global Media has similarly impacted social values. One of the most obvious recent examples of
how global media has impacted social values comes to us from the time of the Arab Spring. This
was a series of events whereupon the citizens of numerous Arab and North African nations began a
series of demonstrations that called for everything from democracy to human rights in countries

known for quite the opposite. While there is some debate about the specifics of this, it is clear that
global media was involved in these pro-democracy and pro-human rights protest in at least one of
three ways: 1) Global media helped spread the message of human rights and democracy. In a way, it
planted the seed that an alternative to living under a dictatorship was not only possible but also
successful in other countries; 2) Global media, especially social media, may have helped incite or
sustain the Arab Spring as it may have been used as a way to coordinate protest activities;
3) Global media helped spread the message about such protests to neighboring countries and those
across the world. The initial success of one protest blasted in the media may have helped foment
the start of a protest in a neighboring country as a result.
An international example of how global media can impact social values comes to us from the
world of health. One of these is the World No Tobacco Day that occurs on May 31st of each year and
is backed by the member states of WHO (the World Health Organization). WHO and these member
states use things like social media to drive awareness of the problems associated with smoking
across the world.
Of course, the opposite is also possible with respect to improving people's health. Think about
how various forms of media inundate the minds of girls and women in the U.S. or the U.K. on what
perfect beauty is supposed to be like. In Western countries, this may mean girls starve themselves
to be skinny. For a more regional example, look to Asian countries, such as Thailand, where this may
result in the application of harsh skin-whitening products to match a certain stereotype of beauty.
Global media helps spread this message far and wide.
Another example of global media's impact can be seen on issues like landmines, such as those
found in Cambodia. When the actor/director Angelina Jolie brought renewed attention to this issue,
the media spread the news across the world and charities involved in clearing these mines saw a
boost with respect to addressing this issue.
Other nations, however, such as Russia and China, have built up their own forms of mass
communication and have spread their own messages about their values and norms to other nations
as well. The takeaway is that global mass media can be used to alter social values and awareness
around the world but that does not mean that the receiving nation and its people (or the
government in-charge) will be pleased by it or use its message successfully.
Clearly, there should be a responsible use of media for it to successfully serve its purpose to
us, to our country, and to the global world. As the process of globalization becomes more
prominent, the role of media, advertisement and consumerism also increases considerably. Therefore
globalization is not just integrating trade, investment, consumer and financial markets, but also
integrating tradition and culture—all of which have allowed globalization-especially globalized media-
to take hold.
The media industry is, in many ways, perfect for globalization. The low marginal costs of
media mean that reaching a wider market creates much larger profit margins for media companies.
Because information is not a physical good, shipping costs are generally inconsequential. Finally, the
global reach of media allows it to be relevant in many different countries.

EVALUATE
Worksheet 1
Interview someone who loves Koreanovela. Print-out a cover of his/her chosen Koreanovela
and write a brief summary about its story below. In bullet points, find out what he/she wants to
watch about the television series. How do you think globalization contributed to the spread of
Koreanovelas in the Philippines? What various forms of media have helped in the success of these
Koreanovelas in the country?
Summary:
(print-out of the Koreanovela cover)
INTERVIEWEE’s Contributions of Forms of media that helped in the

DESCRIPTIONS of the Globalization to the spread of success of Koreanovelas in the
Koreanovela Koreanovela in the country
Philippines

Worksheet 2A
Think of a U.S. product that is available throughout the world, such as an athletic brand like
Nike or a food product like Pepsi or Coca-Cola. Now go online to the different country-specific
branches of the company’s website.
1. What differences are there?

2. How might the company be attempting to tailor its globalized product to a specific
culture?
3. What advances into the foreign market does this use of the Internet allow the company
to make?
4. What advantages does this globalization of its products give the company?
5. In what other ways has technology helped speed this globalization?
Reflect on these questions and submit your paper (computerized) on a short bond paper
next meeting.
Worksheet 2B
Using your FB account, post a statement on your wall about the role of media in the
contemporary world. Observe how your friends would react and take note of their comments.
Share your experience to the class.

Worksheet 3
Using the interview result in the previous activity, write a reaction paper about how media
has shaped the Philippine culture. You may use Koreanovelas as an example, but make sure that
you also use your own observation about how the Korean industry has changed the way Filipinos live
their lives at present by citing five (5) specific instances/situations about this.
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REFERENCES:
Elliott, P. (2007). Another radio is possible: community radio, media reform and social change
in Thailand. Creative Commons Attribution-NonCommercial-NoDerivs 3.0, Regina, Saskatchewan
Canada.
Flor, A. (2009). Developing Societies in the Information Age: A Critical Perspective. Philippines
Open University.
Kaul, V. (2011). Globalisation and Media. Mass Communication Journalism 1:105. doi:10.4172/21
65-7912.1000105.
Kheeshadh, M. (2012). Effects of globalization on mass media in the world. International Journal of
Asia:2, 10.
Nag, B. (2011). Mass media and ICT in development communication: comparison & convergence.
Global Media Journal – Indian Edition: 2, 2.
Nigam, M. (2009). Impact of Globalization. Retrieved from http://education.ezine9.com
Obijiofor, L. & Inayatullah, S. (2005). Impact of New Information and Communication Technologies
(ICTs) on Socio-economic and Educational Development of Africa and the Asia-Pacific. A pilot
study.
Zilkova, M. (2006). Globalisation Trends in Media. Newcastle, UK: Cambridge Scholars Press.

LESSON 7
THE GLOBALIZATION OF RELIGION
Lesson Objectives:
a. Characterize the relationship between religion and globalization.
b. Assess the effects of globalization on religious practices and beliefs.
c. Analyze the relationship between religion and global conflict, and global peace.
ACTIVATE
Access this link before the beginning of this lesson: “The Rise of ISIS” (http://www.pbs.org/
wgbh/frontline/film/riseof-isis/). Then, think of words that you can associate with the world religion.
RELIGION
EMPOWER
How did you feel about giving a definition of religion on your own? Was it easy to think of
words that you can associate with religion? Indeed, religion is difficult to describe and realize,
because human belief structures are varied and complex. But one thing is for sure, religion is
strongly connected to culture.
Ole Preben Riis in "Methodology in the Sociology of Religion" (2011) defines religion as "a world
view, an ideology, an organization, an attitude, a set of values, as moods and motivations, or as an
ethical disposition.“ The The Penguin Dictionary of Religions says religion is "a general term used in
most modern European languages to designate all concepts concerning belief in God(s) and
Goddess(es) as well as other spiritual beings or transcendental ultimate concerns.“
Some Christians declare that Christianity as "not a religion, but a relationship with Jesus.“
Some Muslims say "Islam is not a religion - it is a way of life.“ It used to be the case that "most

Hindus do not realize they 'belong' to that religion, for it is a name given by outsiders. Thankfully,
most adherents understand the utility of words well enough to accept that they belong to specific
religions, and nowadays there is a strong Hindu-awareness movement that heralds a new
generation of Hindus.
Many definitions of religion have been attempted but many fall foul of being too narrow, or
too wide. Aside from the definitions given earlier, religion is also explained as “the belief in and
worship of a superhuman controlling power, especially a personal God or gods.“ It is “a set of
beliefs concerning the cause, nature, and purpose of the universe, especially when considered as
the creation of a superhuman agency or agencies, usually involving devotional and ritual
observances, and often containing a moral code governing the conduct of human affairs.“ Religion,
then, “consists of beliefs, actions, and institutions which assume the existence of supernatural
entities with powers of action, or impersonal powers or processes possessed of moral purpose.”
Religions are shared collections of transcendental beliefs that have been passed on from believers
to converts, that are held by adherents to be actively meaningful and serious and either based on
(1) formally documented doctrine (organized religion) or (2) established cultural practices (folk
religion).
Actors of religion are among the oldest of transnationals, carrying words and praxis across
vast spaces, which include individuals or groups, who act on consistent messages regarding the
relationship between religion, politics and society.
How did religions crossed the local barriers? Well, globalization began 3000 years ago as the
Silk Road facilitated trade and cultural exchange (i.e. textiles, spices and even religions were all
exchanged along the Silk Road). The Silk Road presented religious communities with the most
efficient way to spread their beliefs where Missionaries often joined caravans and traders. Buddhism
was the first great missionary faith spreading from Northern India to Afghanistan and Bengal and
finally to China, Korea, and Japan, and back to Tibet. Note that silk was extensively used in Buddhist
ceremonies stimulating the demand and facilitating trade along the Silk Road enhancing
globalization but Islam was the dominant religion among Silk Road traders for most of the time.
Islamic scientific and medical advancements also had significant impact on Silk Road travelers. In
fact, Chinese Buddhist traders adopted Islamic medical knowledge in wound healing and urine
analysis. Thus, interconnectivity of trade, culture and religion enhanced globalization.
The irony is that, religious actors have been agents of globalization for centuries
(individualists) and yet globalization is often associated with spreading same ideas and views
(universalists). Samuel Huntington (1992) sees a clash of civilizations between the universalists and
individualists, between the West and Rest because globalization does not lead to identical responses
from all religious actors (although globalization is sometimes actively pursued by religous actors). A
perfect example of this paradox is the Al Qaeda which opposes Westernization, but at the same
time, utilizes the tools and techniques of this phenomenon to achieve their own globalizing aim.
Huntington offers six explanations for why civilizations will clash:
1. Differences among civilizations are too basic in that civilizations are differentiated from each
other by history, language, culture, tradition, and, most importantly, religion. These fundamental

differences are the product of centuries and the foundations of different civilizations, meaning they
will not be gone soon.
2. The world is becoming a smaller place. As a result, interactions across the world are increasing,
which intensify "civilization consciousness" and the awareness of differences between civilizations and
commonalities within civilizations.
3. Due to economic modernization and social change, people are separated from longstanding local
identities. Instead, religion has replaced this gap, which provides a basis for identity and
commitment that transcends national boundaries and unites civilizations.
4. The growth of civilization-consciousness is enhanced by the dual role of the West. On the one
hand, the West is at a peak of power. At the same time, a return-to-the-roots phenomenon is
occurring among non-Western civilizations. A West at the peak of its power confronts non-Western
countries that increasingly have the desire, the will and the resources to shape the world in
non-Western ways.
5. Cultural characteristics and differences are less mutable and hence less easily compromised and
resolved than political and economic ones.
6. Economic regionalism is increasing. Successful economic regionalism will reinforce
civilization-consciousness. Economic regionalism may succeed only when it is rooted in a common
civilization.
IMPACT OF GLOBALIZATION ON RELIGION:

Religion and globalization have always shared a relation of struggle and conflict. While
globalization has generally been linked with economic and political interdependence, which ultimately
brought people closer, it also has shifted the cultural build-up of the world that led to the
formation of a global culture. As mentioned earlier, globalization has diverse, even paradoxical
implications for religion. By diminishing the barriers between different cultures, globalization lands
religion in a dilemma of conflicts. The distinct norms, different cultures and different worshipping
ways and practices will be wiped out by globalization, which promotes homogeneity (referred to as
worldwide cultures becoming similar). Threat to traditions of religions, disintegrate traditional social
norms and values by the invasion of consumerism, cyber culture, and etc. Moreover, human rights
are becoming the main issue in the global world concerning the status of women and ritual killings
and human sacrifice. Globalization may have also implied on faith in the following three possible
impacts: 1) Religion is being eroded; 2) Religion is being strengthened; and 3) Religion is declining but
it has developed new identities of hybridity.
CONFLICTS vs. COOPERATION

Many internal and external conflicts exist in this multipolar world. There is evidence of
resurgence of conservative-traditionalist religious movements that have often been labelled as
religious fundamentalism. Religious fundamentalism is best explained as: 1) a religious phenomenon;
religious is very essential as ideology, ethos, goals, leadership of fundamentalism are founded and

built on religious beliefs and practices; 2) a reaction to and cultural changes which are experienced
as a dramatic crisis so that it differs from traditionalism; and 3) a defensive reaction which
attempts to preserve or restore an idealized or imagined former social order which is
characterized by a strict patriarchal order and moralism.
People cannot bear these uncertainties - any movements, like religious fundamentalism, that
are regarded to bring certainties back will gain its market and acceptance (i.e. the creation of
extremists and terrorists).
Essentially, all religions teach these shared principles of love, patience, peace, justice and
equality.. The phenomenon of globalization of religion has made it easier to transfer the all-
embracing message of any religion all over the world. As a result, societies are becoming less
exclusive and more multi-religious.
Social reality forces world religious communities to get rid of their exclusive attitudes and to
develop some universal orientations, which should be more accommodating to the other. Inter-
religious dialogue, therefore, can be a discourse between two or more religious organizations for
better understanding of the tenets of each religion in order to promote peaceful coexistence
among the practitioners of such religions. Thus, interreligious dialogue will be fruitful as people of
different religions and faith encounter each other in an atmosphere of freedom and openness for
each partner to listen and understand each other.
THE SPREAD OF RELIGION VS. SECULARIZATION

The inner nature of religions and the purpose to be
embraced and practiced by people all over the world prompts it to
spread throughout all the world’s geographical spaces. In order to
emerge and spread, therefore, religions make good use of the
technologies of globalization.
Having geographical boundaries and frontiers blurred and
dissolved, religions find it easy to spread and reach every part of
the world. For instance, countless websites providing information
about religions have been created. This makes pieces of
information and explanations about different religions readily at
the disposal of any person regardless of his or her geographical
location. In addition, the internet allows people to contact each
other worldwide and therefore hold forums and debates that allow religious ideas to spread.
Furthermore, the media plays the same important role in the dissemination of religious ideas. In this
respect, a lot of TV channels, radio stations and print media are founded solely for advocating
rel i g i on s . T a k i n g I s l a m a s a n ex a m pl e, w e fi n d s uc h T . V c h a n n el s
as Iqrae, Ennass, Majd, El Houda, Erahma, etc. as purely religious channels created for the
strengthening and the fortification of Islam. Transportation means– as a technology of globalisation
as well–have contributed considerably to the emergence, revivalism and fortification of religion. In
this respect, Turner (2003) states that the “Islamic revivalism in Asia is related to the improvement

in transportation has allowed many Muslims to travel to Mecca, and return with reformist
ideas. Globalization technologies, therefore, have helped religions of different forms i.e.,
fundamentalist, moderate, etc. to cross geographical boundaries and be present everywhere.
Consequently, the increase of industrialization, urbanization and rationalization would bring
about the decrease of religious faith. Religion would become less important factor in human life of
modern society and a modern secular system would be a dominant force as theological system was
falling down. Religion would eventually vanish from the lives of modern secular society.
RELATIONSHIP BETWEEN GLOBALIZATION AND RELIGION

Religion has always sought to spread its message beyond frontiers. While globalization with
its homogenization can disturb cultures so that some religions oppose it, some people might seek
protection from globalization impacts and foster opposition. It is important to note that
globalization does not lead necessarily to a homogenization of groups and the rise of a universal
community, because there is the desire for esteem within a culture.
SECULARIZATION
Each religion has secularized in its own distinctive way, which has resulted in its own distinctive
secular outcome. Even if globalization increases secularization, it does not bring one common
worldview. As counter-movement to US-globalization, Islam revivalists and developing neo-
Confucianism promote Asian values. Great religions see the globalization led by the US closely
connected to secularization and therefore as threat to themselves. Special in the world view is
Protestantism as it rejects hierarchy and community and any intermediaries between the individual
and God in contrast to most other religions.
Is secularization a consequence of globalization? Let us analyze in the following table.

RELIGION IN GLOBALIZATION: ONGOING CONFLICT OR COEXISTENCE?
Mark Juergensmeyer (1995) explains why global religious resurgence is possible. Nation-state
provided a secure sense of identity, accountability, and security for a stable society. However, nation
-states have lost its role.
① Transnational economic systems undercut national structuresof authority and control.
② New communication networks made instant contact possible across the world.
③ Massive demographic shift everywhere.
As a result, the idea of a homogenous national cultural identity became a relic of the past.
People started to regard that religious community can provide identity, accountability and security.
Harald Müller (2010) explains the coexistence of civilization in terms the relationship between
globalization and religion. The impact of globalization, is without a doubt, a huge change in every
aspect of life. The impact to one‘s identity, however, poses diverse responses due to unfamiliarity
such that ① Aggressive responses include religious fundamentalism and xenophobia and
② Receptive responses include attention and adaptation, coexistence. In other words,
communication and cooperation are the keys to coexistence. But how, you may ask? People must
have common perceptions in terms of ① Respect for human right and dignity and
② Improvement based on peace.
In the process of cultural exchange around the globe, a peaceful relationship involves
methods for mutual trust, namely:
① Government : Summit meeting, IGOs (more communications)
② Economy : Trade relation (interests by cooperation)
③ Society : The role of NGO ( Mediator between civilizations)
In summary, Müller’s view on religion and globalization include: 1) Different religion is one of
important elements making different culture; 2) Ignorance and repulsion on different culture make
conflicts; and 3) Communication and understanding other culture is important for peace.
We have learned that globalization 1) provides more chances of communication, given the
evolution of communication, transportation, and migration; 2) also intensifies the economic
interdependence among actors, where people perceive the economic benefit from cooperation; and
3) Globalized NGO can hold “merciless global capital (Neo-liberalism)” in check. As a result, these
networks will help to make common values in the globe: Humanity, Mutual Respect, and Peace,

EVALUATE
Worksheet 1
Read and analyze the question and answer each item concisely.
1. When secularization increases, what could replace religion?
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2. Is religion affected by globalization or does globalization affect religion? Justify your answer.
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3. Do you see the possibility for religions to cooperate or there will be more religious conflicts?
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4. Do you think there is religious intolerance in the Philippines? Explain your answer.
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Worksheet 2
Search for an article about a man or a woman who has been mistaken for an ISIS
member. Print-out or cut-out the article and paste it on the space below. Cite your reference/s
for this below the article.

Worksheet 2 (continuation)
Write in brief your answers to the following:
1. Give a sentence or two about the scenario. _________________________________________________
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2. Why was the man/woman mistaken for ISIS? ______________________________________________
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3. What did the authorities did to him/her? ___________________________________________________
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4. What could be the possible reasons why people are sometimes mistaken for ISIS or any other
terrorist group? ____________________________________________________________________________
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5. How has religion and globalization contributed to this incident? _______________________________
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6. What can you do, as a student, to avoid misjudging people such as in the article? ______________
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REFERENCES:
Ankerl, G. (2000). Global communication without universal civilization. INU societal research. Vol.1:
Coexisting contemporary civilizations: Arabo-Muslim, Bharati, Chinese, and Western. Geneva:
INU Press.
Azzouzi, M. (2013). Religion and Globalization: Benefits and Challenges. Romanian Review of Political
Science and International Relations, 10 (1), 150-154.
Blankley, T. (2005). The West's Last Chance: Will We Win the Clash of Civilizations?, Washington, D.C.,
Regnery Publishing, Inc..
Goldstein, W. (2009). Secularization Patterns in the Old Paradigm. Sociology of Religion, 70 (2), 157-
178.
Harrison, L. & Huntington, S. (2001). Culture Matters: How Values Shape Human Progress, New York,
Basic Books.
Huntington, S. (1996). The Clash of Civilizations. In "Foreign Affairs," 72:3, 22–49.
Mueller, W. (2011). A Good Example of Peaceful Co-Existence. Druck und Bindung: Prime Rate kft.,
Budapest.
Rantanen, T. (2005). The Media and Globalization. SAGE Publications.
Scholte, J. (2005). Globalization: A Critical Introduction. New York: Palgrave Macmillan.
Thomas, S. (2005). The Global Resurgence of Religion and the Transformation of International
Relations: The Struggle for the Soul of the Twenty-First Century. New York: Palgrave Macmillan.

https://www.google.com/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwi2tvushf3fAhVLEnAKHVbgB6EQjRx6BAgBEAU&url=https%3A%2F%2Fwww.seriousfacts.com%2Frussia-facts%
2Frussia-is-the-worlds-ninth-largest-country-in-terms-of-population%2F&psig=AOvVaw1PmWDXdnaZzrx5GUPUPKvQ&ust=1548097081875974
LEARNING OUTCOMES:
1. Establish the foundation of the important concepts relating to

population, mobility, demography and migration.
2. Analyze the importance of these concepts in the realm of the
various dimensions of the contemporary world.
3. Discuss the underlying principles behind its impact on

globalization.
4. Correlate one’s deeper understanding of these concepts with
the Philippine situation.
Contemporary World Unit 4: Global Population and Mobility

LESSON 8
GLOBAL CITIES
Lesson Objectives:
a. Recognize the attributes of a Global City.
b. Analyze how cities serve as engines of globalization.
ACTIVATE
Think-Pair-Share Activity. Pair-up with your seatmate and conduct an interview with each other
following the set of questions indicated below. Write your answers on the space provided.
Interviewee’s Name: ____________________________________________________________
_
1. In what city do you currently live? ___________________________________________________________

2. How would you describe your city? _________________________________________
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3. What is your city known for? __________________________________________________________
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4. What makes your city unique from the other cities in the Philippines? ______________
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EMPOWER
Would you move to New York or Tokyo if you had the chance? How about London or
Singapore? Chances are, many you might have visited these places already. If not, many of you
would probably like to visit them soon as you may have heard great stories about them, or have
seen them on TV or in the movies.
Globalization has not only changed the economy, politics and culture, but the way we view the
concept of city. Not all people have been to global cities. This lesson will explore the existence of
the Global City, its attributes and importance, and how it serves as an engine to globalization.
?
The onslaught of globalization has introduced us to the concept of Global City. For one, cities
are ecosystems for business and innovations. It is a critical site for analyzing how an urban
center’s network of businesses take place, where the talent of its citizens are honed, where cultural
exchanges are born, and so on and so forth. Highlighting the important role of cities in the world
economy has been deemed significant since it mainly functions as the command and control nodes
of global corporations, which have been termed as “global cities” (Friedmann, 1986). Cities have
become mediums and arenas of globalization and in the years to come, more and more people will
experience globalization through cities.
A global city, is also called world city or sometimes alpha city or world center. It is a
city which is a primary node in the global economic network. The term "global city", rather than
"megacity", was popularized by sociologist Saskia Sassen in 1991. She initially identified three global
cities namely, New York, London, and Tokyo - all of which are hubs of global finance and capitalism.
"World city", meaning a city heavily involved in global trade and is a home of the world’s top stock
exchanges where investors buy and sell shares in major corporations. New York has the New York
Stock Exchange (NYSE), London has the Financial Times Stock Exchange (FTSE) and Tokyo has the
Nikkei. The value of shares traded in these markets are staggering — while the Philippine Stock
Exchange traded only $231.3 billion, the value traded in the NYSE alone is $19,300 billion.
More recently, the term has focused on a city's financial power and high technology infra-
structure, with other factors becoming less relevant.
The following criteria are variable and fluid but they are the typical characteristics of
global cities (adopted from Beaverstock, 2010):
1. There is a variety of international financial services, notably in finance, insurance, real
estate, banking, accountancy, and marketing.

Financial institutions are essential aspects for global cities that is why banking and financial
service providers are important to sustain the demand for exchange and financial mobility.
2. Headquarters of several multinational corporations
Multinational corporations prefer global cities for investment because they have advanced
producer services, cosmopolitan environments, and are capable of interconnecting to the
international market place.
3. There exist financial headquarters, a stock exchange, and major financial institutions
The proximity and accessibility of banking, stock exchange, and other financial institutions are key
elements in the growth and proliferation of global cities, which is why financial headquarters are
essential.
4. Domination of the trade and economy of a large surrounding area
Capital and investment flow operates at a massive scale in global cities. In this Information
age, global cities are the necessary trading and commercial hubs, with the most stable governments
and economies and are typically the cultural centers in countries with younger and morel liberal
populations.
5. Major manufacturing centers with port and container facilities
Most global cities such as Hong Kong, possess massive port and container infrastructures to
facilitate further international commerce and trade.
6. Considerable decision-making power on a daily basis and at a global level
Global cities have the capacity to create immediate impact in terms political, economic, and socio
-cultural decisions, actions, and policy directions that possess a huge global appeal.
7. Centers of new ideas and innovation in business, economics, culture, and politics
The conglomeration of people as well as the architecture for development is firmly established in
global cities, with numerous research and development facilities.
8. Centers of media and communications for global networks
The ability of global cities to produce global media that would cater to the taste of local
audiences and conquer market shares is essential in strengthening specialization, connection and
efficiency.
9. Dominance of the national region with great international significance
The improved intercity organizational techniques have elevated cities on a global stage. When
one talks about Japan, for example, one can easily associate it with a major city like Tokyo, or US
with New York. Through globalization, cities have become the center of nation-states in almost all
aspects.
10. High percentage of residents employed in the services sector and information sector
IT-related businesses, and an information-oriented manpower capital pool are necessary for
global cities since products that are attractive in the globe is no longer a tangible good, but a
remarkable service or a unique information. In addition, the influx of tourism activities and hotel
industries have also characterized global cities (Robinson, 2006).
11. High-quality educational institutions, including renowned universities, international student at-
tendance and research facilities

Global cities are destinations for more advanced learning institutions and highly renowned
universities that are more engaged in scholarship. Literacy rates are highly commendable wherein
strong records of domestic educational attainment is very evident. The instruction and research of
these institutions are very strong that academe-industry linkages are even made possible to further
the growth and mobility of most global cities.
12. Multi-functional infrastructure offering some of the best legal, medical, and entertainment
facilities in the country
Global cities are important destinations to some of the most prestigious legal and medical
services and research hubs with overwhelming infrastructures and effective transportation that
encourage entertainment and tourism from all over the world.
13. High diversity in language, culture, religion, and ideologies.
Looking at the streets, buildings, or signs of the urban spaces, there is more engagement in
creative process of cultural experimentation, performing hybridization and pluralization that ensures
a level of cultural diversity necessary to satisfy multi-cultural aspirations (Klaus, 2017).
Every few years, the Globalization and World Cities Research Network rate cities by ranks. As
the leading institute ranking world cities, GaWC takes into account many factors such as economic
factors that are deemed more important than cultural or political factors though in the ranking.
Below is a list with the latest data from 2016 (since GaWC has not done a study in 2017 or 2018).
Alpha++ world cities: London, New York
Alpha+ world cities Singapore, Hong Kong, Paris, Beijing, Tokyo, Dubai, Shanghai
Alpha world cities: Sydney, Sao Paulo, Milan, Chicago, Mexico

City, Mumbai, Moscow, Frankfurt, Madrid, Warsaw,
Johannesburg, Toronto, Seoul, Istanbul, Kuala Lumpur,
Jakarta, Amsterdam, Brussels, Los Angeles
Alpha− world cities: Dublin, Melbourne, Washington, New Delhi, Bang-

kok, Zurich, Vienna, Taipei, Buenos Aires, Stockholm, San Francisco,
Guangzhou, Manila, Bogotá, Miami, Luxembourgh, Riyadh,
Santiago, Barcelona, Tel Aviv, Lisbon,
Cities are ranked based on Alpha, Beta and Gamma but for this lesson, only the alpha cities
are shown. Alpha++ world cities are cities most integrated with the global economy; Alpha+ world
cities are highly integrated cities, filling the advanced service needs; Alpha world cities and Alpha-
world cities are cities that link major economic states and regions to the world economy.

The Global Cities Index evaluates the current performance of cities based on five dimensions:
business activity, human capital, information exchange, cultural experience, and political engagement.
It provides insights into the global reach, performance and level of development of the world’s
largest cities so that comparison and identification of core strengths and distinctive differences
may be possible.
The Global Cities Outlook, on the other hand, evaluates a city’s potential based on the rate of
change across four dimensions: personal well-being, economics, innovation, and governance. It
brings a forward-looking perspective to city-level policies and practices that shape future
competitiveness, identifying growing cities that are likely to become the world’s most prominent
cities.

Global cities are, therefore, material representations of globalization. Through them, we see
the best of this phenomenon: economic opportunities, competitiveness, higher learning and
intellectual opportunities, cultural diversity, and tremendous wealth, and sustainable development.
However, they remain sites of great amount of inequality, where global servants serve global
entrepreneurs.
Why do you think there is a lot of inequality in global cities? The question of how globalization
can be made more just depends on how people make their cities more just.

EVALUATE
Worksheet 1
What can you infer from the 2018 Global Cities Index and the 2018 Global Cities Outlook? Compare
and contrast the two and write your realizations below.
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Worksheet 2
Form groups of not more than 5 members. Choose a global city from the given alpha world
cities and prepare a report on it. Use the following guide questions for your report:
1. Describe your assigned global city.
2. What specialization does your global city offer?
3. What are the contributing factors that make your assigned city a global city?
Then, after the presentation, write a short reflection below on your assigned global city.
REFLECTION:
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Worksheet 3
What do you think are the contributory factors to the burgeoning problem of traffic in Metro
Manila? Try to provide solutions that are being used by global cities in other parts of the world
that may be applicable to the case of Metro Manila?
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Worksheet 4
Write an essay on the topic: “The path of the Philippines towards becoming a Global City.”
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REFERENCES:
Alderson, A., Beckfield, J. & Sprague-Jones, J. (2010). Intercity relations and globalization: A Survey
of Cities in Globalization. London: Earthscan.
Beaverstock, J. (2006). World City Networks 'From Below.' Taken from https://www.lboro.ac.uk/gawc/
last January 2, 2019.
Doel, M. & Hubbard, P. (2002), Taking World Cities Literally: Marketing the City in a Global Space of
Flows City. 6:3, 351–68.
Donald, J. (1992). Metropolis: The City. As text in R. Bocock and K. Thompson (eds), Social and Cultural
Forms of Modernity, Cambridge: Polity Press.
Kearney, A. (2018). Global Cities Report. Retrieved from https://www.atkearney.com/2018-global-cities

-report.
No Author. (2014). The World's Most Influential Cities. Forbes Magazine dated 14 August 2014.
Retrieved last 29 August 2017.
No Author. (2017). The World According to GaWC 2018. GaWC. 13 November 2018. Archived from the
original on 3 May 2017. Retrieved 29 November 2018.
Phillips, L. (2007). Global Cities: Introduction. Retrieved from http://journals.openedition.org/

transtexts/129
Sassen, S. (2006). The global city: strategic site/new frontier Archived last 18 October 2017 at
the Wayback Machine.
Sassen, S. (1991). The Global City: New York, London, Tokyo. Princeton University Press.
Taylor, P. (2018). Measuring the World City Network: New Results and Developments. Archived from the
original on 29 September 2018. Retrieved 1 November 2018.

LESSON 9
GLOBAL DEMOGRAPHY
Lesson Objectives:
a. Develop a better understanding of the demographic patterns of the world.
b. Assess how global demography affects others aspects of the human life.
c. Determine the relationship between global demography and globalization.
d. Suggest solutions to the matters concerning global demography.
ACTIVATE
As of 2018, the population of the Philippines is at 106,512,074 which has grown 1.5% from
2017. With this amount of people in the country, can we say that population increase detrimental
to the development of the Philippines? Write the pros and cons of population increase using the
table below.
https://www.google.com/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=2 ahUKE wje1

96u2_3fAhVFEnAKHU_cA_QQjRx6BAgBEAU&url=https%3A%2F%2Fwww.lifeper sona.co
m%2Fwhat-is-the-demographic-explosion-causes-and-consequences%2Fwhat-is-the-demog
raphic-explosion-causes-and-consequences%2Fpopulation-explosion& psig=A OvVaw 1L_D9
2Z1 i02R3SPyEEcUd6&ust=1548120193857284
Based on your answers above, what can you conclude about the effect of population to the
development of the Philippines? ______________________________________________________________
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EMPOWER
How many are you in the family? Have you encountered difficulties living in that number at
home? Try to imagine a family with 12-15 members. How different would their life be compared to
yours? This lesson will focus on the Theory on Demographic Transition as it affects Global Population.
But before that, it is best to emphasize that the discussion on this topic is as significant as the
other dimensions of globalization since the very vital and indispensable component of globalization is
people.
?
Demography is the study of statistics such as births, deaths, income, or the incidence of dis-
ease, which illustrate the changing structure of human population, and thus, poses an effect on
globalization on a holistic level. Basically, it pertains to the composition of a particular human
population.
Through the years, the demographic patterns of human history has been stable — its growth
was slow and the structures of age, birth rates and death rates have changed gradually (Bloom &
Canning, 2003).
However, the human population is constantly changing. In this lesson, we will also explore the
factors that cause increases and decreases in the human population, including births, deaths, immi-
gration, and emigration.
Take a minute and think about all of the different people you interact with in a given day. For
most people, this would include family, friends, co-workers, and strangers. A population is often
described as a group of individuals of the same species that inhabit the same area. Therefore, all
of the people you encounter each day are part of your population. Other examples of populations
include the dandelion plants growing in a field or the cockroaches that inhabit a single house.
On a larger scale, you can think of all humans on Earth as the human population. As of 2017,
the human population reached 7.6 billion. Although the human population has been around this size
for most of us for our entire lives, the population has not always been so large. Around 10,000
years ago, before the invention of agriculture, it is estimated that the human population was only a
few million people worldwide. After the invention of agriculture, the human population began to grow
slowly until the 1900s, when a rapid increase in the human population began. With increases in
technology and medical advances, the human population was able to reach three billion in the 1960s.
Since that time, the population has more than doubled and continues to increase.
Now that we know how the human population has changed overtime, it is important to
investigate the factors that have influenced these changes. There are many factors that can
influence the size of a population. Some factors result in an increase in the population, while others
can cause a decrease in population size.

There are two factors that result in an increase in the size of a population. First, there
is natality, which is the number of individuals that are added to a population over a period of time
due to reproduction. This term is often used to describe reproductive rates over a variety of time
periods.
The term most commonly used when describing natality in the human population is 'birth
rate'. Birth rate is the number of individuals born per 1,000 individuals per year. An example of birth
rate would be if a population of 5,000 people resulted in the birth of 50 children in a year, which
would yield a birth rate of ten individuals per 1,000 per year. Birth rate is often reported as a
percentage of the population. In 2010, the birth rate in the United States was 1.38%, which is
considerably lower than the birth rate in many developing countries. For example, in 2010, the birth
rate in Ethiopia was 4.34%. Birth rates can vary a great deal by region and can have drastic effects
on the overall human population.
The second factor that can cause a rise in a population is immigration. Immigration is the
migration of an individual into a place. When an individual immigrates to a new location, they
increase the population within that area. Immigration is a factor that can influence the size of a
specific population of humans, but does not influence the overall human population.
For example, if an individual decides to move from London to New York, they would be
immigrating to the United States and would therefore increase the population of the U.S. Their
immigration would have no influence on the overall human population because no matter where they
live, they are included in the size of the human population. The only way that immigration could
influence the overall human population on Earth is if humans lived on a different planet and
immigrated to Earth. In that scenario, the human population on Earth would increase.
Now that we have learned about the factors that increase population size, let us investigate
the factors that have the opposite influence. The first factor that results in a decrease in the
population size is mortality. Mortality is the number of individual deaths in a population over a period
of time. In terms of the human population, mortality is often described as the death rate, which is
the number of individuals that die per 1,000 individuals per year.
Death rates are often used to describe how many individuals die in specific age groups. For
example, the death rate of infants is often an important statistic to investigate when looking at
changes in the population. Similar to birth rates, the death rate is also often described as a
percentage of the population. In 2010, the death rate for infants in the United States was 0.6%,
while in Ethiopia the infant death rate was 7.1%.
The second factor that can decrease the size of a population is emigration. Emigration is the
migration of an individual from a place. When an individual emigrates from a location, they decrease
the population within that area. If you think back on the immigration example, with the person
moving from London to New York, we said that the person was immigrating to the United States.
Using this same example, the person would also be emigrating from England. Similar to immigration,

emigration also does not have an influence on the overall human population on Earth because peo-
ple are not leaving Earth to move to a new planet.
Although there are factors that either increase or decrease the human population, when
these factors are combined, they represent the overall population growth rate. The population
growth rate is the rate at which the population changes in size. As discussed earlier, the rate of
change is determined by subtracting the number of people that leave the population, through death
or emigration, from the number of individuals that enter the population, through birth or
immigration. This calculation makes it possible to combine all of the statistics that influence
population size and to determine how the overall population is changing over time. The population
growth rate can result in either a positive or negative rate depending on the factors.
There are many differences between non-industrial and industrial countries. In this part of
the lesson, we will explore the concept of demographic transition and the stages that guide a
country through its changes into an industrial country.
Over the course of human history, there have been many people who have been interested in
the characteristics of the human population and the future of population growth. After analyzing
how western populations have changed over time, one pattern was discovered that indicated there
was a connection between population growth and the economic development of a country. It was
observed that in countries with high standards of living, the population grew at a slow rate, while in
countries with low standards of living, the population grew more rapidly.
This discovery resulted in the creation of the concept of demographic transition, which is a
series of stages that a country goes through when transitioning from non-industrial to industrial.
The demographic transition concept involves four stages that are based on changes to population
size and social behaviors.
Pre-Industrial Stage
The first stage of the demographic transition is the pre-industrial stage. During this stage,
the population is stable, with both high birth rates and high death rates. The death rates are high
because there is increased disease, minimal medical care, poor sanitation, and limited food supplies.
As a result of the high death rate, people tend to produce more offspring to try to compensate
for the mortality. Although the birth rate and death rate can fluctuate slightly, overall they remain
equal, which results in zero population growth.
Transitional Stage
Following the pre-industrial stage is the transitional stage. During this stage, the human

population begins to increase due to high birth rates and declining death rates. The death rates are
decreasing because, as the country transitions into an industrial country, there are improvements in
the economy and social conditions. These changes lead to the control of diseases, the production of
more food, better jobs, and improved medical care and sanitation.
As the death rates decrease, the birth rates remain high because people are still
accustomed to producing more children, and during this stage, they have more food and resources
to support larger families. As a result of the declining death rates and high birth rates, the human
population will increase at a rapid pace.
Industrial Stage
The third stage of the demographic transition is the industrial stage, which is characterized
by an increasing population with declining birth rates and low death rates. The death rates remain
stable and low during this stage due to the continuation of the economic and social changes that
improved the standard of living during the previous stage. During this stage, the birth rates begin to
decline for many reasons. For the most part, people realize that they no longer have to produce
large numbers of offspring because the offspring they do produce have a higher chance of
surviving to adulthood. Many people also start to prefer smaller families, where they can
concentrate more resources on less people and increase overall livelihood.
The decline in birth rates also correlates with an increase in employment opportunities for
women and the increased access to contraception. Although the birth rates are declining, the
population continues to increase due to the low death rates and the momentum of the population
from the previous stage. The high birth rates in the previous stage produced more overall people
that will reach reproductive age, and even if they produce fewer offspring than previous
generations, they are still adding to the population.
Post-Industrial Stage
Following the industrial stage is the final stage of the demographic transition. This stage is
referred to as the post-industrial stage and is characterized by a stable human population, with
both low birth rates and low death rates. The birth rates and death rates remain low due the
economic and social changes of the previous stages. As the gap is closed between death rates and
birth rates, the human population will stop increasing and remain at a stable level.
According to the United Nations Report, the current world population is at 7.7 billion as of
2018 and is projected to increase by 1 billion over the next 12 years. This may even reach 9.6 billion
by 2050, pointing the said growth unevenly across the world with a huge portion coming from the
developing countries, with more than half in Africa.
The population of the world’s 50 least developed countries is expected to more than double
by the middle of this century, with several poor nations tripling their population over the period. In
contrast, the population of the developed world is expected to remain steady at around 1.2 billion,

with a decline in population in wealthy countries (Bloom, et. Al. 2015).
Some years, it seems like everyone you know is having a baby. Other years, it might seem like
giving birth is the last thing going on in your circle of friends. But, whether it affects you directly or
not, birth surrounds you all the time — someone is probably being born at this very minute and
minute by minute, the number of people being born into the world starts to stack up.
We look at the number of births in a given time period and population as the crude birth
rate, or CBR. More specifically, CBR is the number of live births per year, is estimated mid-year, and
is almost always reported per 1000 living people. Let us look at an example.
The calculation of crude birth rate is simple, as long as the required data is available. The
formula is: CBR = (number of births) x 1000 / estimated population at mid-year
For example, say we wanted to calculate the CBR for Z Place in U.S. for year 2013. If we say
the number of live births that year was 672 and the estimated mid-year population was 107,619, we
can plug the numbers in to look like this: 672 x 1000 / 107619 = 6.24 births per 1000 people
This little example is quite a bit below the average of United States birth rate of 13 per 1000
people but this is just a simple example.
At this point you may be wondering why someone would want to calculate CBR. Like most
math and sociological problems, there actually is a purpose other than making students do work.
As the name implies, the CBR is a crude measure of public health. Crude measure in this
sense doesn't mean awful or unmannerly; it actually refers to an unrefined or nonspecific way of
figuring something out. In other words, though reliable, crude measurements have their flaws.
One reason we use CBR is that the data to compute it--the number of births and the total
population--is more readily known than other, more accurate (and non-crude) measures, like general
fertility rate, total fertility rate, and pregnancy rate. These other measures all take into account the
sex and age of the population that might give birth and are more difficult to track and measure.
Why do scientists even care about birth rates? The main reason that birth rates in general
are calculated is so future populations can be predicted. Government officials living in a country with
a population expected to double in 20 years would be facing a very different set of challenges than
one where the population is expected to decline by 10%. Population scientists use birth rates,
including CBR, along with a lot of other factors to predict what the population of a country will be in
10 or 20 years.
Even so, the CBR for a population does give some 'big picture' insight into what is going on in
an area, region, or country. For example, Japan (CBR of 8 in 2013, according to the World Bank),
Germany (9), Canada (11) and the United States (13) all have significantly lower CBRs than do
Afghanistan (34), Somalia (44), and South Sudan (36). Population scientists would look at these
numbers and wonder why, or form hypotheses about resources and tests to examine data.
Important to note is the fact that using CBR is not a perfect predictor of prosperity or
industrialization by any means, since Cuba has a CBR of 10, but is very poor and under-developed.

The Global Life Expectancy or the average expected living age of individuals has steadily
increased. Life expectancy has increased from 47 years in 1950-1955 to 65 years in 2000-2005. In
2016, the WHO reported that 72.0 years is the average life expectancy at birth of the global
population.
Because people are living longer, and as a result of the global decline in fertility, the median
age is rising. The proportion of the elderly in the total population is rising sharply. The number of
people over the age of 60, is expected to reach 1 billion by 2020, and almost 2 billion by 2050.
Population ageing is occurring in both developed and developing countries, although more rapidly in
the developed.
What can we expect in the next half century? Based on the indicators that are available,
Roser (2018 made a few points: 1.) There will be continued by slowing population growth; 2.) The
world’s population is ageing and the growth in the sheer number of elderly people will be huge;
3.) International migration will continue, but the extent is still unclear; 4.) Urbanization will continue
and greater economic opportunities in the cities will surely continue to attract migrants from rural
areas, along with environmental and social problems that may persist.
EVALUATE
TAKE HOME ACTIVITY:
1. POSITION PAPER. Write a position paper on this topic: “What demographic change do you
think is the best suited for the Philippines? Why? Justify your answer.”
Submit your paper on a short bond paper, computerized, font type: arial, font size: 12,
single-spaced by the end of the week’s meeting.
2. POSTER-MAKING. Using a 1/8 illustration board and coloring materials, create a poster that
shows the differences between a rural and urban area. Be able to depict the distinct
characteristics of each in your poster. Prepare for a presentation of your poster in
class.

Worksheet 1
Fill-in the table below to characterize the impact of demographic changes to globalization.
INDICATOR IMPACT TO DEVELOPED IMPACT TO IMPACT TO

COUNTRIES DEVELOPING GLOBALIZATION
COUNTRIES
Birth Rate
Death Rate
Fertility Rate
Life Expectancy
Working Age
Population

REFERENCES:
Agcaoili, L. Remittances, PBO REveneus may Top $51B this Year. PhilStar Global, June 2, 2016.
Retrieved last February 24, 2017 from http://www.phistar.com/business/2016/06/02/1589080/
remittances-bpo-revenues-may-top-51-b-year.
Ang, A., Sugiyarto, G. & Jha, S. (2009). Remittances and Household Behavior in the Philippines. Asian
Development Bank Working Paper Series No. 188 (December 2009): xii.
Bloom, D., Canning, D., and Malaney, P. (2000). Demographic Change and Economic Growth in Asia.
Population and Development Review, 26: 257-290.
Bloom, D. Canning, D., and Sevilla, J. (2004). The Effect of Health on Economic Growth: A Production
Function Approach. World Development, 32 (1), 1-13.
Boserup, E. (1981). Population and Technological Change: A Study of Long-Term Trends. Chicago:
University of Chicago Press.
Hartman, B. (1999). Reproductive Rights and Wrongs: The Global Politics of Population Control. Boston:
South End Press.
International Labor Organization. Global Estimate of Forced Labor: Executive Summary. Retrieved
last February 19, 2017 from http://www.ilo.org/wcmsp5/groups/groups/public/@ed_norm/
@declaration/docments/publication/wcms_181953.pdf.
Kelley, A. (1988). Economic Consequences of Population Change in the Third World. Journal of
Economic Literature. 26 (4), 1685-1728.
OECD. International Migration Outlook. June 2013.
United States Federal Bureau of Investigation. Human Trafficking/Involuntary Sevitude. What we

Investigate. Retrieved last February 19, 2017 from https://www.fbi.gov/investigate/civil-rights/
human-trafficking.
World Bank. Topics/Migration: Overview. Retrieved February 10, 2017 from http:www.worldbank.org/en/
topic/migrationremittancesdiasporaissues/overview.
World Health Organization. Global Health Observation Data. Retrieved last January 14, 2017 from
http://www.who.int/gho/urban_health/situationtrends/urban_population_growth_text/en/.

LESSON 10
GLOBAL MIGRATION
Lesson Objectives:
a. Identify the factors underlying the global movements of people.
b. Understand the reasons for global migration.
c. Evaluate the issues and concerns related to migration.
d. Explain the impact of global migration to the Philippines.
ACTIVATE
A. Imagine you were moving to a new country. What would be the most important factors to
take into consideration? Put these in order of importance by writing numbers inside the box before
each item (with 1 being the most important).
 Cinemas/theatres/concert halls  Parks/green areas
 Good flats/houses  Free press and media
 Good transport systems  Democratic system/equality
 Good schools/hospitals/universities  Language
 Presence of family/friends  Culture
 Safe streets  Others : (please indicate)________________
B. Which of these things would most make you want to leave your home city or country?
 Unemployment
 Poor housing and services
 Poverty
 Famine
 War/unsafe social situation
 No job prospects for your skills/qualifications
 Government persecution
 Discrimination
 Climate
 Geographical location
 Others: (please indicate) ____________________
C. Why do you think these factors are important to consider when leaving your home country
to move to another one? ____________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
_____________________________________________ _______________________________________________

EMPOWER
Now that you have learned about global demography, it is best that you develop an
understanding of an important aspect essential to demographic analysis and that is, migration.
Human populations relocate for various reasons, and social scientists have explained these
through a variety of theories. In this lesson, we will explore several reasons and theories for
migration, and later on evaluate issues and concerns related to it.
Every year, we see geese flying overhead during the fall, migrating south for the winter.
Aren't you glad we don't do that? Well, we all travel for sure, but most of us do not have to
relocate every single season.
However, just because most humans do not migrate every season, does not mean there are
not human migrations. A human migration is the movement of people with the goal of long-term
relocation, so commuting and vacations do not count. Generally, we do not consider a move down
the street to be a migration either; this term is usually applied to a significant relocation.
Throughout human history, people, communities, and entire societies have migrated for various
reasons. Turns out, migrating is not just for the birds.
Historically, human societies have engaged in several major migrations, from Moses telling the
Pharaoh to let his people go, then wandering around the desert for 40 years, to the mysterious
abandonment of advanced Amerindian cities like Chaco Canyon.
So why do people migrate? The most basic way to divide up the many reasons is into
categories of push and pull. Push factors are those which force people to leave their current home.
Across history, push factors have included a diverse range of situations, including drought, famine,
flooding, war, invasion, disease, lack of job opportunities, unsafe environment, high criminal rate,
crop failure, lack of religious or personal freedoms, or discrimination. You will notice that these are
all pretty unpleasant things.
The other category of reasons to migrate are somewhat nicer. Pull factors are things that
attract people to a new area. Things that are attractive enough to make people want to migrate
could include job opportunities, education opportunities, freedom, safety, food, climate, more wealth,
better services, safer environment, political stability, more fertile land, lower risk from natural
hazards, or established networks of family and friends. Humans are a pretty stubborn species, so
getting us to migrate usually requires a combination of push and pull factors. Things can be great
somewhere else, but generally, they also have to be pretty bad where you currently are. That is the
basic recipe for a migration.
One other important distinction between types of migration is the idea of voluntary versus
involuntary. It is a pretty basic idea: if you make the choice to move, based on whatever push and
pull factors matter most to you, it is a voluntary migration. But if you are physically forced to

relocate, that is an involuntary migration. The most obvious example of this is slavery. A group of
people are forcibly taken from their home and relocated, with no ability to decide where they are
going. That is an involuntary migration. For better or worse, each of these forms of migration have
been important throughout history, moving people into new areas, mixing gene pools, and
integrating cultures.
Obviously, people have been migrating for a long time, otherwise we would all still be living in
Africa, and things would be getting pretty crowded. But human migration was not just a phenomenon
of the past. Migrations are still an important part of modern society, and most modern theories
believe that 21st century migrations are primarily related to economic factors; In other words,
where people can find work and where they can afford to live. There are still migrations for other
reasons, such as political freedom and education opportunities, but work seems to be the most
common.
Let us look at some modern ideas about migration. The dual labor market theory explains this
as the result of technologically developed societies dividing labor into high-skilled and low-skilled
labor, but refusing to work in low-skilled positions. This creates an abundance of job opportunities
that others will gladly pursue.
The relative deprivation theory claims that most economic-based migration is a result of
awareness of income differences. This means that people tend to leave areas with high levels of
economic inequality to areas where most people make about the same amount of money, under the
assumption that they can eventually become financially stable.
The world systems theory states that the interaction between societies on a global scale
influences migration. The basic idea is that every part of the global community affects the others -
Country A trades with Country B, which hurts the economy of Country C, and so people leave
Country C for Countries B or A. Although none of these theories are universally accepted, they all
base their ideas on the assumption that money drives modern migrations. More importantly though,
they show that human migration is still an important part of our modern global community.
Given the benefits that migrant workers give to their home countries with their remittances,
global migration leads to a removal of dynamic young workers in the home country. This process is
often referred to as “brain drain.” Sub-Saharan Africa and Asia have lost 1/3 of their college
graduates, 60% of which have moved to MEDCs for better job opportunities and income (McKinsey
Global Institute, 2016).
The loss of professionals performing key roles in the society like doctors, has been
detrimental to the home countries. Although the governments are aware of this long-term handicap,
they have no choice but to encourage migrant work as part of state policy because of the
remittances’ impact on the country’s GDP.

Human trafficking has also been found to be a problem next to brain drain. 21 million men, women,
and children are victims of forced labor, exploitation, underemployment, and sexual abuse (ILO,
2012). Human trafficking has been profitable for syndicates, smugglers and corrupt state
officials earning billions of dollars every year. It is for these reasons that governments, the private
sector and civil society groups have constantly worked together to combat human trafficking.
Like globalization, global migration produces various contradictory responses. Yet, it is very
clear that as global interdependence increase, so does global migration. This is because
economies that are dependent on globalization (such as Singapore, Saudi Arabia and even
protectionist Japan) rely on foreign labor to continue growing and will actively encourage foreign
labor to earn.
EVALUATE
TAKE HOME ACTIVITY:
1. REFLECTION PAPER. Write a short reflection on the topic: “How does global migration
benefit the Philippines?“ Submit your paper on a short bond paper, computerized,
font type: arial, font size: 12, single-spaced by the end of the week’s meeting.
2. GROUP PRESENTATION. Divide the class in two and prepare for a 5-minute role-play
Activity next meeting. One group will portray the push factors affecting global
migration and the other one will portray the pull factors.

Worksheet 1
Give at least five (5) push and five (5) pull factors that cause global migration and identify its
pros and cons for both the home and host countries.
PUSH FACTORS ADVANTAGES FOR THE DISADVANTAGES FOR THE

HOME COUNTRY HOME COUNTRY
PUSH FACTORS ADVANTAGES FOR THE DISADVANTAGES FOR THE

HOST COUNTRY HOST COUNTRY
PULL FACTORS ADVANTAGES FOR THE DISADVANTAGES FOR THE

HOME COUNTRY HOME COUNTRY
PULL FACTORS ADVANTAGES FOR THE DISADVANTAGES FOR THE

HOST COUNTRY HOST COUNTRY

https://www.google.com/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwjY1vWbxP_fAhWXHHAKHc35C6kQjRx6BAgBEAU&url=https%3A%2F%2Fwww.admtl.com%2Fen%2Fadm%
2Fcommunities%2Fsustainable-development&psig=AOvVaw09JIZeNGcg4NwfPGHHOMlw&ust=1548182699973241
LEARNING OUTCOMES:
1. Realize the importance of Sustainable Development.

2. Discuss the underlying principles behind Global Food Security.
3. Develop a sense of Global Citizenship.
Contemporary World Unit 5: Towards Sustainable Development and Global Citizenship

LESSON 11
SUSTAINABLE DEVELOPMENT AND GLOBAL CITIZENSHIP
Lesson Objectives:
a. Define and explain sustainable development in the context of globalization.
b. Analyze the United Nations’ Sustainable Development Goals.
c. Rationalize the various models of Global Food Security.
d. Discuss the World Food Crisis.
e. Articulate a personal definition of global citizenship.
f. Realize the ethical obligations of global citizenship.
g. Apply the concepts of sustainable development and global citizenship in the Philippine setting.
ACTIVATE
Close your eyes and imagine that you are now 50 years older, with a wonderful wife/
husband and beautiful children. What would you want them to have and experience in their lives
that you yourself enjoyed during their age? On the contrary, what is it that you are hoping for
them not to experience in this globalized world? List down your answers and be able to share it to
the class.
I want my children to have and experience: I don’t want my children to have and
experience:

EMPOWER
How do you think it will ever be possible for your children to experience the good things that
this life can offer and at the same time, for them not to truly experience the not-so-good ones on
our list? In this lesson, we will discuss the idea of sustainable development and look at the obstacles
involved with developing the world's economy to meet the needs of the present without hurting
future generations. We will also walk around the topic on Food Security and the Global Food Crisis
and realize the essence of developing a sense of global citizenship. After all, we all want our
children to inherit a healthy Earth, right?
The natural environment is very giving. Every day, humans take advantage of resources from
nature to meet their daily needs, including fresh air, food and clean water. When humans take only
what they need, nature replenishes these resources and life is sustainable. However, if the natural
environment is pushed beyond its limits because humans use resources too quickly, introduce
pollutants into the environment or destroy nature in a pursuit of more economic and social
prosperity, then nature has a hard time keeping pace.
The World Commission on Environment and Development came out with a report in 1987 called
'Our Common Future.' This report is often referred to as the 'Brundtland Report' and is credited with
coining the term 'sustainable development,' which is defined as development that meets the needs of
the present without compromising the ability of future generations to meet their own needs.
This sounds like a very responsible concept. Most people want to preserve all that is good in
the natural environment, so their children and grandchildren can benefit from its rich resources. This
also sounds like a very simple concept. If each human being only uses what he or she needs for
survival, then the natural environment can keep giving back, and essentially humans and the
environment can live in harmony for many generations to come.
However, the concept gets muddied when we consider the fact that life is not only about
survival. There are economic and social needs that must be met and these needs impact the
environment's ability to sustain itself. For example, if we look at the economy, we see that it is
dependent on society for things such as labor and a market to exchange goods and services.
We also see that both the economy and society are dependent on the environment. This is
because the environment provides them with raw materials, such as food, clean air and freshwater,
as well as natural resources, such as timbers and fossil fuels. The economy, society and the
environment must work together and they have done so for centuries.
Be that as it may, at some point, the Earth may no longer be able to support the world's
population. Many scientists believe in the limits to growth hypothesis, which implicates that society is
ignoring signs that Earth's carry capacity is reaching its maximum limit. Carrying capacity, also
known as the ecological footprint, is the amount of basic elements, such as water, a population
requires to make the resources it uses and to eliminate its wastes. But businesses may actually have

a solution to preserving our world's resources. Many global businesses have adopted sustainable
development as part of their overall business strategy, which requires that natural resources are
used at an amount that can be extended over an infinite period.
Although the idea of sustainable development seems to be the perfect solution to save our
Earth's resources, not all businesses support the idea. Many companies do not want to support the
idea of sustainable development because many businesses only care about profits and not about
saving Earth's natural resources. Another obstacle is that companies wrongfully believe that there
will always be a plentiful supply of Earth's resources. The impact from this type of corporate
thought is devastating to the environment. Though water and forests can be replenished, if the rate
of depletion is faster than growth, the resource will also disappear. The growth of many
corporations comes with polluting our resources, which impacts future generations that will not be
able to use those resources as they cannot be fixed. For example, a top company in the U.S. is
responsible for polluting the Hudson River. In addition, non-renewable resources, such as fossil fuels
like oil, are gone forever once the Earth's reserve is depleted. In truth, there is no way for
businesses to reproduce oil and gas. Currently, the rate of depletion and pollution is not at a
sustainable rate for life to continue infinitely.
There are three critical factors that have resulted in hastening Earth's environmental
catastrophe and making sustainable development extremely challenging to implement. First, is the
Earth's population explosion, which has put a huge strain on Earth's natural resources. The world's
population has dramatically increased quickly in the last two hundred years with no end in sight. In
addition, the world's income inequality has dramatically affected the living conditions of populations.
Lastly, the rapid industrialization of many developing nations has created an immediate need for
resources. For instance, countries such as India and China have grown quickly with economies that
need more of the Earth's resources for cars, technology, food production, etc.
There are four possible solutions that businesses may use to adapt sustainability business
strategies and the depletion of resources:
1.) Technological innovation by creating new technologies that allow companies to produce products
using less energy and resources with less waste. Companies must develop ideas, such as air
conditioners that use salt water, or gravity powered irrigation that delivers nutrients and water to
the root.
2) Change consumption patterns by shaping consumer demand for less harmful product production
and promote safer, environmentally-sound products.
3) Reasonable pricing will allow consumers to choose sustainable products for consumption. In
addition, governmental support by imposing taxes on companies that use harmful products or
activities.
4). Pollution prevention by eliminating waste and curtailing pollution during the production and

manufacturing of products.
In September 2015, the UN General Assembly adopted the 2030 Agenda for Sustainable
Development that includes 17 Sustainable Development Goals (SDGs). Building on the principle of
“leaving no one behind”, the new Agenda emphasizes a holistic approach to achieving sustainable
development for all.
GOAL #1: No Poverty (End poverty in all its forms everywhere)
GOAL #2: Zero Hunger (End hunger, achieve food security and improved nutrition and promote
sustainable agriculture
GOAL #3: Good Health and Well-being (Ensure healthy lives and promote well-being for all at all
ages)
GOAL #4: Quality Education (Ensure inclusive and equitable quality education and promote lifelong
learning opportunities for all)
GOAL #5: Gender Equality (Achieve gender equality and empower all women and girls)
GOAL #6: Clean Water and Sanitation (Ensure availability and sustainable management of water and
sanitation for all)
GOAL #7: Affordable and Clean Energy (Ensure access to affordable, reliable, sustainable and
modern energy for all)
GOAL #8: Decent Work and Economic Growth (Promote sustained, inclusive and sustainable economic
growth, full and productive employment and decent work for all)
GOAL #9: Industry, Innovation and Infrastructure (Build resilient infrastructure, promote inclusive
and sustainable industrialization and foster innovation)
GOAL #10: Reduced Inequality (Reduce inequality within and among countries)
GOAL #11: Sustainable Cities and Communities (Make cities and human settlements inclusive, safe,
resilient and sustainable)
GOAL #12: Responsible Consumption and Production (Ensure sustainable consumption and production
patterns)
GOAL #13: Climate Action (Take urgent action to combat climate change and its impacts)
GOAL #14: Life Below Water (Conserve and sustainably use the oceans, seas and marine resources
for sustainable development)
GOAL #15: Life on Land (Protect, restore and promote sustainable use of terrestrial ecosystems,
sustainably manage forests, combat desertification, and halt and reverse land
degradation and halt biodiversity loss)
GOAL #16: Peace and Justice Strong Institutions (Promote peaceful and inclusive societies for
sustainable development, provide access to justice for all and build effective,
accountable and inclusive institutions at all levels)
GOAL #17: Partnerships to achieve the Goal (Strengthen the means of implementation and revitalize
the global partnership for sustainable development)

Although every human on Earth has to eat to survive, the amount of food consumed varies a
great deal by region. How many calories do you consume in a given day? To live a healthy and
productive life, it is recommended that people consume around 2,200 kilocalories each day. When
you look at the human population as a whole, the average person consumes around 3,000
kilocalories per day, and people who live in industrialized countries have been reported to consume
even more. Although the average person consumes more than enough calories to remain healthy,
and, worldwide, enough food is produced to feed the entire human population, the distribution of
food is not even. It is estimated that currently over 850 million people are living on daily diets of
much less than the recommended amount.
This uneven distribution of food is a major problem for the entire human population because
it threatens food security. Food security is when a person is able to obtain a sufficient amount of
healthy food on a day-to-day basis. People who do not consume enough food each day suffer
from food insecurity, which is when a person is unable to obtain a sufficient amount of healthy food
on a day-to-day basis. As a result of food insecurity, people suffer from chronic hunger and poor
nutrition, and are, therefore, less likely to have healthy and productive lives.
It is widely agreed upon that the main cause of food insecurity is poverty. Poverty makes it
very difficult for people to grow their own food and also to buy enough food. Currently, it is
estimated that over 1.5 billion people live on less than $1 a day, and are, therefore, unable to buy
enough food to keep them healthy. Due to the low-income levels in many areas, it is also not
possible for people to grow their own food because they do not have money to invest in agriculture.
The second leading cause of food insecurity is the growth of the human population. The human
population has been growing steadily, and the amount of food needed to feed the population has
also increased. Overall, the human population is expected to increase by about 2 billion people by
2050, and this will put a serious strain on the availability of food. Although currently enough food is
produced to feed every human on Earth, as populations grow, the amount of people suffering from
food insecurity will increase. The increase in the human population will be particularly difficult in poor
countries where people already struggle to obtain food and will have more trouble as the population
increases. Additionally, the growing population can also influence food insecurity by limiting the
amount of food available for consumption. As the human population increases, there is a higher
demand for alternative fuel sources, such as biofuels. In recent years, this demand has led to large
amounts of corn being used to create biofuels, thus reducing the amount of corn available to feed
people.
On the global scale, many poor countries have been given incentives by wealthier countries or
organizations to increase their own food production. The World Bank provides grants to poor
countries to increase their agriculture systems and food supplies. Wealthy countries have also

provided aid to poor countries by offering debt relief so that the country can spend money on
producing its own food instead of paying back debt.
Another method for combatting food insecurity is to use advances in technology to produce
more food. In recent years, food production has increased due to several advances in technology,
such as new farm equipment, fertilizers, pesticides and high-volume irrigation systems. New
advances in genetics have also made it possible to produce more food by creating varieties of
plants that have higher yields. There has also been an increase in the technology and techniques
used to farm large amounts of livestock and fish.
In addition to providing aid and increasing food production through technology, it has also
been suggested that food insecurity could be combated by developing sustainable methods for
harvesting or farming both new and underutilized wild species of plants and animals. For example, in
the Amazon rainforest, the Babassu palm grows wild, and this plant can produce more vegetable oil
than any other plant on Earth.
As population sizes increase and poverty continues, food insecurity remains a large challenge
that will need to be handled. There are several efforts in place to combat food insecurity and to
achieve a state of global sustainability, which is when the human population as a whole can use the
resources on Earth to meet current needs while not compromising the needs of future generations.
One method to try and combat food insecurity is to provide aid and relief to people or
countries that are suffering. In the United States, the Food Stamp Program was established to help
people with low-income status pay for food. An organization called Feeding America was also
developed to help collect and distribute donated food items to people in need.
In addition, the serendipity berry of tropical Africa can make a sweetener over 3,000 times
sweeter than regular sugar. If these two plants were to be sustainably harvested or farmed, it
would be possible to produce large quantities of vegetable oil and sugar with less effort. These
products could be produced at a cheaper rate and sold to people in need at lower prices.
Our world is incredibly large and filled with diverse people, countries, cultures, and beliefs. Do
you know checkers, oonch neech and semut, orang, gajah? What do all of these have in common?
They are all children's games! In the United States, children play checkers. 'Oonch Neech' is a version
of the game of 'tag' in Pakistan, and 'Semut, Orang, Gajah' is like the game 'Rock, Scissors, Paper'
for kids in Sumatra. Even though children in these countries may live very different lives, they all play
similar games.
Similarly, global citizenship is the idea that everyone, no matter where they live, is part of a
worldwide community. Although your life may not look like the lives of children in other countries, you
share similar experiences, like playing games or having a family. Being a global citizen means that
you look for these similarities and try to understand how life may be different for other people.
To better understand it, global citizenship can be broken down into four parts.

Civic Responsibilities
Civic responsibilities are the actions that people do to help their communities be successful.
If you have ever helped your neighbor, volunteered to clean up a park, donated food to the
homeless, or read books to younger kids, then you have done your civic responsibility. When you get
older, you can also vote and run for office in government.
Global citizens understand their civic responsibilities. They care about their communities
becoming better places to live and work towards making them this way. If people in local communi-
ties all over the world are well taken care of, supported, and successful, then the global community
is successful. Think of something you could do to help your community
Cultural Awareness
Have you ever eaten food from another country? Do you speak another language? More
importantly, do you actually understand what it would be like to live somewhere else? Another part
of global citizenship is cultural awareness. Cultural awareness means that you search for
opportunities to learn about other people's languages, food, religions, governments, homes, families,
history, and daily lives. Additionally, this means thinking about ways that other people's lives are both
the same and different from yours. Can you think of a person you know from another country? How
is his/her life compared to yours?
Environment
Oil spills, toxic fumes, and trash in the ocean are just a few examples of dangers to the
environment. Global citizens understand that the environment is shared by everyone.
What happens to the environment in one part of the world affects other places. Pollution in
the water or air does not just stay in one spot because air and water currents move it around the
earth. This means that if people in one part of the world don't take care of the environment, then it
could harm people in other countries. How can you help take care of the environment where you
live?
Global Economy
With today's ability to travel by air and water, people can buy things from all over the world.
You may eat a banana from Colombia or watch a television that was made in China. Global citizens
understand that everyone is connected through what they buy and sell. Different areas of the world
provide people with items that they need or want. Without people in other countries making certain
goods, you may be unable to have them. What are some things that you own that are made in other
countries?
Perhaps, people can never really be forced to think about their role as citizens of the world.
But remember, regardless of the race, nation, or creed that we have, we belong to the same world.
One way or another, we will have to find global solutions to the global problems that have been
around us for quite some time.

EVALUATE
Now that you have taken a tour of the various dimensions of globalization, you will synthesize
about everything that you have learned from the start until the end of this book.
A. ASSESSMENT PAPER. Watch Al Gore’s Film, “The Inconvenient Truth” OR Leonardo Di Caprio’s
11th hour and write an assessment paper of how you think these movies can be used to help
people realize the importance of sustainability. (Format to be given by the teacher)
B. RESEARCH PAPER. Choose from among the 17 Developmental Goals of the United Nations.
Research on how this specific goal is addressed and attained in the Philippines. Include in your
research two to three pictures that would show an interpretation that the government is really
working hard to achieve this goal.
C. COLLAGE-MAKING. On a 1/8 illustration board, create a collage that would show the
characteristics of a global citizen. Below your collage, write a 5-sentence explanation about it.
D. ESSAY WRITING. Write an essay on the following topic: “I am a citizen of the World, I am a
Global Filipino.”

REFERENCES:
Bedsworf, W. & Hanak, E. (2010). Adaptation to Climate Change". Journal of the American Planning
Association. 76: 4.
Christian, T. (2010). Grocery Store Access and the Food Insecurity–Obesity Paradox. Journal of
Hunger & Environmental Nutrition. 5 (3): 360–369.
Disability and Poverty Reduction Strategies: How to ensure that access of persons with disabilities
to decent and productive work is part of the PRSP process, Focus Programme on Skills,
Knowledge and Employability. Geneva: International Labour Organization, 2002.
Disability and International Cooperation and Development: A Review of Policies and Practices, Lord,
Janet, Aleksandra Nicoli, Karen McClain-Nhlapo, and Mary Keogh. Washington, DC: World Bank,
2010.
Sachs, Jeffrey D. (2015). The Age of Sustainable Development. New York: Columbia University Press.
Pearce, Joshua M. (2012). The Case for Open Source Appropriate Technology. Environment,
Development and Sustainability. 14 (3): 425–431.
Reese, G., Proch, J., & Cohrs, J.(2014). Individual differences in responses to global
inequality. Analyses of Social Issues and Public Policy. 14 (2): 217–238.
Reysen, S. & Katzarska-Miller, I. (2013). A model of global citizenship: Antecedents and

outcomes. International Journal of Psychology. 48 (5): 858–870.
Shaw, Martin (2000). Global Society and International Relations: Sociological and Political
Perspectives. Cambridge: Polity Press.
Tóth, G. (2012). Impact of land-take on the land resource base for crop production in the European
Union. Science of the Total Environment. 435–436: 202–214.
Yeo, Rebecca, and Kareen Moore. Including Disabled People in Poverty Reduction Work: Nothing
About Us, Without Us. World Development 31, no. 3 (2003): 571-590.
Zelenika, I. & Pearce, J. (2014). Innovation Through Collaboration: Scaling up Technological Solutions
for Sustainable Development. Environment, Development and Sustainability. 16 (6): 1299–1316.

ABOUT THE AUTHOR
Imelda C. Nery, Ed. D. finished her Bachelor’s degree in Secondary
Education Major in History, Minor in English, Master’s degree in
Educational Management, and Doctor of Philosophy degree in Educational
Management at the Centro Escolar University. She is also a holder of
Bachelor of Laws from Lyceum of the Philippines University. Dr. Nery is a
true-blooded Escolarian for 41 years, having worked as Head of Social
Sciences for seven years. She also worked as the Dean of MLQU for two
years. Currently, she holds various positions in the academe - she is
the College Dean and the Chairman of the Continuing Professional
Education of Chiang Kai Shek College; a Lecturer in the Graduate School
of CEU Manila, MLQU and Chiang Kai Shek College; and a part-time
Professor at San Beda College, Adamson College, MLQU and Chiang Kai
Shek College. She is also a PACUCOA Accreditor for Education since
2016 up to present. Indeed, Dr. Nery is a true Academician for 43 years.

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An Introduction to the Study of Globalization

UNIT 1: The Structures of Globalization

Lesson 1 The Global Economy ..……………………………………………………………………………………………………...…………………… 22

Lesson 2 Market Integration .….…………………………………….………………………………………………………………………………….. 41

Lesson 3 The Global Interstate System and Contemporary Global Governance…………... 71

UNIT 2: A World of Regions

Lesson 4 Global Divides: The North and the South ………………………………...……………………………..…………… 96

Lesson 5 Asian Regionalism ……………………………………………………………..………………………………………………………………… 111

UNIT 3: A World of Ideas

Lesson 6 Global Media Cultures…………………………………………………………..…………………………………………………………….. 126

Lesson 7 The Globalization of Religion ……………………………………………..………………………………………………………… 135

UNIT 4: Global Population and Mobility

Lesson 8 Global Cities …..………………………………………………………………....……………………………………………………………………. 146

Lesson 9 Global Demography …………………………………………………………….…………………………..…………………………………. 157

Lesson 10 Global Migration ……………………………………………………………………………………….………………………………………..…. 166

UNIT 5: Towards Sustainable Development and Global Citizenship

Lesson 11 Sustainable Development and Global Citizenship …………………………………………………………… 172

1. Raise fundamental questions about globalization.

2. Develop an understanding of the links that people have beyond

3. Discuss the underlying approaches to the study of

Contemporary World An Introduction to the Study of Globalization

OBJECT Maker Who profits from these Who suffers or

Contemporary World An Introduction to the Study of Globalization

Contemporary World An Introduction to the Study of Globalization

Contemporary World An Introduction to the Study of Globalization

Contemporary World An Introduction to the Study of Globalization

2. Globalization is inevitable and irreversible.

3. Nobody is in-charge of Globalization.

Contemporary World An Introduction to the Study of Globalization

5. Globalization furthers the spread of democracy in the world.

6. Globalization requires a global war on terror.

The World Systems Theory was developed by sociologist Immanuel Wallerstein. It is an

Contemporary World An Introduction to the Study of Globalization

Contemporary World An Introduction to the Study of Globalization

Shifting World System

Global capitalism is a qualitatively new stage in the evolution of capitalism characterized by

1st Period: Mercantile Capitalism (14th century)

2nd Period: Classical Capitalism

3rd Period: Keynesian Capitalism

Contemporary World An Introduction to the Study of Globalization

4th Period: Global Capitalism

The Characteristics of Global Capitalism:

3. The financial system operates globally.

4. Power relations are transnational.

5. Global system of governance.

Contemporary World An Introduction to the Study of Globalization

communication and transportation technologies. The most 5RRWjM:&q=time+space+compression+globalisation&tbnh=160&tbnw=168&usg =AI4_-kRpPq9F5X

extreme example of this is how a computer on Wall Street can

Transnationalism is a social phenomenon that has grown out of the increased

Contemporary World An Introduction to the Study of Globalization

Indeed, these approaches help us understand the concept of globalization. However, it is

Contemporary World An Introduction to the Study of Globalization

Contemporary World An Introduction to the Study of Globalization

Contemporary World An Introduction to the Study of Globalization

Scenario Positive Negative Depends

In your local community, one of the main