TCWD 111 – PRELIM national and even in regional context.

This
interconnectedness is created because of
PPT + CANVAS
social and economic relationships and
I. GLOBALIZATION networks which are relevant in the global
interactions.
1. Cuturela (2012)
- cited a published work, Towards New 7. Steger (2005)
Education, which used the term - cited Freeden (2003) who pointed out that
“globalization” in 1930. globalization denotes not an ideology, but
- Globalization means to designate an ‘a range of processes nesting under one
overview of the human experience in rather unwieldy epithet.
education. - He furthered that global flows occur in
different physical and mental dimensions.
2. Inosemtsev (2008) - opined that globalization should be
- distinguished globalization as one of the confined to a set of complex, social
most known social studies, but is still a processes that are changing our current
hollow terminology. social condition derived from the modern
- However, after the Cold War the term was independence of nation-states.
already used to define an interdependent - He furthered that key concept of
world when it comes to its economical and globalization have been defined such as
informational dimensions. multidimensional set of social processes
that create, multiply, stretch, and intensity
3. Webster worldwide social interdependencies and
- globalization is the development of an exchange while making people aware of
increasingly integrated global economy connections between the local and the
marked by free trade, free flow of capital, distant.
and the tapping of cheaper foreign labor - The term globalization should be confined
markets. to a set of complex, sometimes
contradictory, social processes that are
4. Robertson (1992) changing our current social condition based
- in his article, Globalization: Social Theory on the modern system of independent
and Global Culture, defined globalization as nation-states.
the “understanding of the world and the - Indeed, most scholars of globalization have
increased perception of the world as a defined their key concept along those lines
whole.” as a multidimensional set of social
- Therefore, the term has a rich concept that processes that create, multiply, stretch, and
people need to have deliberate grasp in intensify worldwide social
order to fully understand the term. interdependencies and exchanges while at
the same time fostering in people a growing
5. Albrow and King (1990) awareness of deepening connections
- defined globalization as “all those processes between the local and the distant.
by which the people of the world are
incorporated into a single world society. 8. International Monetary Fund (IMF, 2000)
- This only means that peoples around the - identified some overviews of various areas
globe live in a borderless community. of globalization.
- It is, however, significant to say that - Globalization ‘offers extensive
globalization has exerted a tremendously opportunities for truly worldwide
serious impact on each sovereign state. The development, but it is not progressing
transnational spread of capital and the evenly’.
formation of the global markets have - IMF conveyed that there are some
replaced the disintegrated economies of countries that have been able to integrate
various countries. into the global market rapidly, yet there are
also some that have not yet integrated.
6. Giddens (1991) - Those countries that were able to integrate
- has supported Albrow and King claim when in the global market are growing fast and
he highlighted in his definition that are able to reduce problems of poverty.
globalization is the process of intensifying - To reiterate, globalization is not a recent
social relationships among countries around phenomenon and there is nothing
the world connecting separate localities in a mystifying about it.
manner in which local events are formed as - In the 1980’s, the term “globalization” has
a result of happenings that have occurred become a common word manifesting
from afar. advances in modern technologies that have
- There is a rapid interconnection worldwide made international transactions, in both
that links among people in the local,

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 trade and finances, convenient, accessible, have the capacity to use new technologies
and easy. to solve social problems.
- IMF (2000) noted that globalization refers
to an extension beyond national borders of 3. Nobody is in charge of globalization
the same market forces that have operated - highlights the semantic link between
for centuries at all levels of human ‘globalization-market’ and the adjacent idea
economic activity which includes village of ‘leaderlessness’.
markets, urban industries, or financial
centers. b. Robert Hormats (1998)
- Opined that ‘The great beauty of
9. Hutton & Giddens globalization is that no one is in control.’
- as cited by Cuturela (2009) emphasized that - This only means that no individual, no
globalization is the interplay of government or no institution has the
extraordinary technological innovation control over globalization.
mixed with influence of the world that gives
today’s changing its complexity. c. Thomas Friedman (1999:112-3)
- They expressed that the balance between - Similarly emphasized that the most basic
science or knowledge and resources has truth about globalization is this: ‘No one is
changed in such a way that science and in charge…But the global marketplace today
knowledge have become perhaps the most is an Electronic Herd of often anonymous
significant factor in the determination of stock, bond, and currency traders and
the country/s standard of living. multinational investors, connected by
- Truly, the countries with the most advanced screens and networks.’
economies are the countries with the most
modern technology based on science and 4. Globalization benefits everyone
knowledge. - This lies at the heart of market globalism
and represents a ‘good’ phenomenon.
- At the 19986 G-7 Summit in Lyons, France,
THE FIVE CORE CLAIMS OF MARKET GLOBALISM
the heads of state and government of the
a. Steger (2014) world’s seven most powerful industrialized
- pointed out that in the mid-1990’s, more nations issued a joint Economic
population in the global north and south Communique (1996) that exemplifies the
had accepted globalism’s core claims, thus principal meaning of this claim:
internalizing large parts of its overarching o Economic growth and progress in
neo-liberal framework that advocated the today’s interdependent world is
deregulation of markets, the liberalization bound up with the process of
of trade, the privatization of state-owned globalization.
enterprises, and after 9/11, the qualified o Globalization provides great
support of the global ‘War on Terror’ under opportunities for the future, not
US leadership. only for our countries, but for all
others, too.
1. Globalization is about the liberalization and global o Its many positive aspects include an
integration of market unprecedented expansion of
- Is absolutely anchored in the neo—liberal investment and trade; the opening
ideal of self-regulating market as the up to international trade of the
normative basis for a future global order. world’s most populous regions and
- This perspective explains the relevant opportunities for more developing
functions of free market-its rationality and countries to improve their
efficiency, as well as its alleged ability to standards of living; the increasingly
bring about greater social integration and rapid dissemination of information,
material progress-can only be realized in a technological innovation, and the
democratic society that values and protects proliferation of skilled jobs.
individual freedom.
5. Globalization furthers the spread of democracy in
2. Globalization is inevitable and irreversible the world
- market-globalist perspective sees
globalization as the spread of irreversible d. Francis Fukuyama (2000)
market forces driven by technological - stressed that there exists a ‘clear
innovations that make the global correlation’ between the country’s level of
integration of national economies economic development and successful
inevitable. democracy.
- As a matter of fact, market globalism is - While globalization and capital
always interlaced with a belief that markets development do not automatically produce
democracies, ‘the level of economic
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 development resulting from globalization is o There is no singular academic field
conducive to the creation of complex civil that can completely explain the
societies with a powerful middle class. topic of global economy because it
- It is this class and societal structure that is inherently interdisciplinary.
facilitates democracy’.
ACCORDING TO GEREFFI, THE GLOBAL ECONOMY CAN
BE STUDIED AT DIFFERENT LEVELS OF ANALYSIS.
e. Hillary Rodham Clinton (1999)
- the former First Lady 1. Macro level
- praised the Eastern Europe’s economic o This includes the international
transition towards capitalism by saying, organizations and regimes that
“The emergence of new businesses and establish rules and norms for the
shopping centers in former communist global community.
countries should be seen as the ‘backbone o The World Bank, the International
of democracy.’ Monetary Fund, the World Trade
Organization, and the International
Labor Organization are the existing
II. GLOBAL ECONOMY
international organizations that
- For the past centuries, the global economy make impact to the economy of the
has significantly changed. world.
- In the 11th century, the long-distance o The regional integration schemes
trading flourished between Venice and the like the European Union and the
Netherlands. North American Free Trade
- The woolen industry in the 13th century in Agreement are also part of these
Flanders and in 14th century in Florence can organizations. Since these regimes
also be an example of a sustained economic blend both the rules and resources,
growth throughout history. they substantiate the widest
- Those global changes have contributed parameters within which the global
much to the economy of the world. There economy operates.
was the birth of capitalism.
- Conversely, the standards of living of most 2. Meso level
of the population in the globe have o It is believed that the building
remained at the subsistence levels until in blocks for the global economy are
the middle of 18th century. the countries and firms.
- In Gary Gereffi’s journal, The Global o The global economy is seen as the
Economy: arena in which countries compete
o Organization, Governance, and in different product markets.
Development, he mentioned that
the global changes are attributed to 3. Micro level
how the global economy is o There is a growing literature on the
organized and governed. resistance to globalization by
o He furthered that these changes consumer groups, activists, and
give impact not only to the flow of transnational social movements.
goods and services across national
borders, but also the implications of - Therborn (2000) expressed, “There are
these processes for how a particular many theories related to economic
country move up or down in the sociology incorporate the global economy
international scene. in their frameworks, but they differ in the
o Nowadays, the various countries’ degree to which it is conceptualized as a
strategies on development are system that shapes the behavior and
influenced by the new degree on motivation of actors inside it, or as an arena
how industries are organized. where nationally determined actors meet,
o These development strategies are interact, and influence each other.”
manifested in a shift in theoretical - The development of a world trading system
frameworks from those centered over a period of several centuries helped to
on the legacies and actors of create the tripartite structure of core, semi
nation-states to a greater concern peripheral, and peripheral economic areas.
with supranational institutions and - According to world-systems theory, the
transnational organizations. upward or downward mobility of nations in
o Developed countries and the core, semi periphery, and periphery is
developing countries like the determined by a country’s mode of
Philippines have to fully understand incorporation in the capitalist world-
the impact of the contemporary economy, and these shifts can only be
global economy to improve their accurately portrayed by an in-depth analysis
position in the global system. of the cycles of capitalist accumulation in
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 the longue durée of history (Wallerstein
1974, 1980, 1989; Arrighi 1994).
- The foundation for a process of
industrialization and new international
divisions of labor on a global scale is
attributed to the dynamics of the capitalist
world-system.
- Adam Smith, an eighteenth-century political
economist, defined “division of labor” as
the specialization of
- workers in different parts of the production
process, usually in factory setting.
- Gereffi stressed that the division of labor
also acquired a geographical dimension 3. Vertical Integration
during the influx of industrial economies as - It occurs when a firm performs more than one
evolved. activity in the sequence of the marketing
- In a global scope, the “classic” international process.
division of labor was between the industrial
countries producing manufactured goods a. Forward integration
and the non-industrialized economies that - if a firm assumes another function of marketing
supplied raw materials and agricultural which is closer to the consumption function, it
products to the industrial nations which is a case of forward integration.
became a market for basic manufacturers.
- Years after World War II, trade flows have
b. Backward integration
become far more complex, and so have the
- this involves ownership or a combination of
relationships between the developed and
sources of supply.
the developing nations of the global
economy.

III. MARKET INTEGRATION

- A situation in which separate markets for

the same product become one single
market (Cambridge Business English
Dictionary)
Example: when an import tax in one of the markets is
removed.

TYPES OF INTEGRATION

1. Horizontal Integration
- is a type of Integration, by combining the
market agencies to form.
FORMS OF MARKET INTEGRATION
- a union to reduce their effective member and
the extent of actual competition in market. 1. Preferential Trading Agreement
- trade agreements between countries in which
a. Partnership: collaborating with another they lower tariffs for who have signed the
company to tackle the market together (with a agreement, but not for the rest of the world.
common product, promotion, sales strategy,
etc.)

b. Merger: when two different companies in the

same market become one.

c. Acquisition: when a company buys another

within the same market.

2. Conglomerate Integration
- A combination of agencies or activities not
directly related to each other may operate
under a unified management. 2. Free Trade Agreement
- reduces barriers to trade among member
countries to zero, but each member country still

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 has autonomy in deciding for external rate of - el Mercado Común del Sur (the Common
tariff for its trade with non-member countries. Market of the South) is a regional integration
process, initially established by Argentina,
a. North American Free Trade Agreement (NAFTA) Brazil, Paraguay and Uruguay, and subsequently
- It was implemented in order to promote trade joined by Venezuela and Bolivia.
between the U.S., Canada, and Mexico
c. The Common Market for Eastern and Southern
b. The ASEAN Free Trade Area (AFTA) Africa (COMESA)
- It is a trade bloc agreement by the Association - is a free trade area that encompasses 19
of Southeast Asian Nations supporting local countries stretching from Libya to Zimbabwe.
manufacturing in all ASEAN countries.

3. Customs Union
- an agreement to remove trade barriers among
members and impose uniform trade restrictions
against non-members

a. Benelux
- an economic Customs Union founded in 1948
between Belgium, Netherlands and
Luxembourg

4. Common Markets
- allows for the movement of labor and capital
within the member countries
- Custom Unions + integration of factor markets
(capital and labor) TRANS-MULTI-INTERNATIONAL
- means a for-profit enterprise
Example:
a. European Common Market • Characteristics:
- is the example of common market which aims 1. It engages in enough business activities –
to provide the free movement of goods, capital, including sales, distribution, extraction,
services and labor within the EUROPEAN manufacturing, and research and development
UNION. - outside the country of origin so that it is
- it refers to an agreement between countries dependent financially on operations in two or
that allows product, services and workers to more countries.
move freely across borders. 2. The management decisions are made based on
regional or global alternatives.
b. The Southern Common Market (MERCOSUR)

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 - Transnational Corporation or TNC can be a IMPORTANCE OF GLOBAL INTERSTATE SYSTEM
"public" corporation, which trades its shares of - A hegemon is a core state that has a
stock at stock exchanges or brokerage houses; significantly greater amount of economic power
the buyers from the public are "shareholders," than any other state, and that takes on the
and can include individuals as well as political role of system leader
institutions such as banks, insurance
companies, and pension funds. PRINCIPLES OF THE INTERSTATE SYSTEM
✓ Sovereignty
• Nature of TNC: ✓ Territoriality
✓ Companies operating in at least 2 countries ✓ Non-interference
✓ Production Cost more lower cost
✓ Access to all the markets ECONOMIC AND POLITICAL INTEGRATION: THE CASE
✓ Expand the resources of foreign countries OF EUROPEAN UNION
✓ Escape trade tariffs - Alongside economic interdependence, states
formed regional partnerships;
GLOBAL CORPORATION - Europe as continent’s political elite made the
- A kind of corporation that operates in countries
leap into market integration after WWII from
all around the word.
European Coal and Steel Community to
European Union;
PROS CONS
Economic scale- greater - It has 28 members today with single currency
Scope for tax avoidance and monetary system, supranational European
efficiency and lower
and lost tax revenue Parliament, and common citizenship
prices
More research and Automated system can
development, leading to show lack of empathy GLOBAL GOVERNANCE
improved products with the events - It is the process of designating standards, laws,
Create jobs and wealth Power in setting lower rules, or regulations intended for a global scale.
around the world wages
Some workers displaced-
Can give consumers • Contemporary Global Governance
possible structural
greater choice of goods - is a purposeful order that emerges from
unemployment
institutions, processes, norms, formal
MULTI-NATIONAL CORPORATION/COMPANY (MNC) agreements, and informal mechanisms that
- Known as a company with headquarter in one regulate action for a common good;
country and its branches or subsidaries are - it encompasses activity at the international,
spread across many countries. transnational, and regional levels, and refers to
activities in the public and private sectors that
transcend national boundaries (K. Benedict,
2001).

• Role of public international law in Global

governance
- Public International Law or law of nations, is the
body of legal rules, norms, and standards that
apply between sovereign states and other
entities that are legally recognized as
international actors
- A multinational corporation/company is an
organization doing business in more than one DOCTRINE OF TRANSFORMATION VS. DOCTRINE OF
country. 'In other words it is an organization or INCORPORATION
enterprise carrying on business in not only the
country where it is registered but also in several • Doctrine of Transformation
other countries. - any international law must be
consciously/mindfully transformed through
IV. GLOBAL INTERSTATE SYSTEM legislation before the said international law
V. CONTEMPORARY GLOBAL GOVERNANCE could be implemented locally

PROBLEMS AFFLICTING THE WORLD • Doctrine of Incorporation

✓ Poverty - an automatic reception of the international law
✓ Environmental pollution into domestic law without the formal needs for
✓ Economic crisis official legislation to sanction it and give effect
✓ Crime and terrorism to it
✓ Pandemic
✓ Climate change
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 INTERNATIONAL LAW VS. DOMESTIC LAW THE EUROPEAN CIVILIZATION
- Europe has a long history of human
a. International Law development and is considered the birthplace
- Provides normative guidelines, methods and of Western Civilization.
mechanisms to sovereign states and - Today, this cultural wealth is used to solidify the
international organizations European Community and is exported to the
Example: United Nation Conventions Law of the Sea rest of the world as one of the continent's
greatest global assets.
Example of International Law subjects:
✓ Human Rights • What made Europe so powerful?
✓ World Trade - Gunpowder was really important for
✓ War conquering territory; it allows a small number
✓ Migration of people to exercise a lot of influence.
- The technology grew to include more than just
b. Domestic Law guns: armed ships, fortifications that can resist
- body of law and rules existing within a country’s artillery, and more, and the Europeans became
the best at user of these things.
territory

• Why was Britain the first country to industrialize?

• International treaty
- The final reason for why Britain was the first
- Is an agreement formed by international actors,
country to industrialize was due in large part to
such as sovereign states and international
its vast colonial empire.
organizations under the international law; - This is important because it gave Britain access
cogent source of international law. to huge amounts of natural resources that it
Example: International Water Agreement by UNCLO could then use in the factories that developed
International customs during the Industrial Revolution.

- A general practice accepted as law [ARTICLE 38 • Why did Europe expand instead of another society?
1B] TWO ELEMENTS: STATE PRACTICE AND - In the 15th century, Europe sought to expand
OPINIO JURIS trade routes to find new sources of wealth and
Example: Head-of-State Immunity bring Christianity to the East and any newly
found lands.
• Some issues revolved through global governance: - This European Age of Discovery saw the rise of
✓ human rights colonial empires on a global scale, building a
✓ the protection of individuals during wars and commercial network that connected Europe,
✓ Armed conflicts. Asia, Africa, and the New World.
✓ the fight against terrorism and other serious
crimes A SOVEREIGN STATE
✓ environment ✓ Sometimes called an independent state.
✓ Space or territory that has internationally
✓ trade and development
recognized boundaries.
✓ telecommunications
✓ People who live there on an ongoing basis.
✓ transport
✓ Regulations governing foreign and domestic trade.
✓ The ability to issue legal tender that is recognized
• Issues of global governance: across boundaries.
✓ Military conflicts among or within states
✓ Climate change problems - International law and Hobbes’ statement on law
✓ Humanitarian crisis are intimately connected; the sovereign will of
✓ Economic imbalances the state is the ultimate authority in the
composition of international law.
• Purpose of global governance: - Essentially the role of international law is to
✓ National policies have a direct effect on a regulate the behavior of states.
country, good or bad
✓ Its global effects on other countries cannot be • U.S. Recognition of Philippine Independence, 1946
ignored; - The United States recognized the Republic of
✓ Global governance stresses on cooperative the Philippines as an independent state on July
forms of conflict management; 4, 1946, when President Harry S. Truman did so
in a proclamation.
✓ It helps nations to develop their capacity to deal
- The United States and the Philippines signed a
with the challenges of globalization;
treaty on the same date whereby the United
✓ Global governance includes citizens'
States renounced all claims to the Philippines,
participation in the global decision-making. which had previously been under American
sovereignty.

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 TRANSNATIONAL ACTORS (TNAs) - The world is becoming more homogenous, a
- have come to be considered political, social, cosmopolitan culture is developing in which people
cultural, and economic agents or groups that think globally.
have trans societal relations across borders. - A rapid economic transformation made the world
- They pursue their goals somewhat more interdependent.
independently of governmental consideration.
• WIDESPREAD - Resistance to the adoption of a
common culture.
NOTES

• NAFTA - North American Free Trade Agreement • TRANSNATIONALISM RESULTS FROM ALL OF THE
FOLLOWING:
• WTO - World Trade Organization. Founded in 1995 to - Increased abstract thinking.
continue the tariff education - Increased economic interdependence.
- Increased global communication.
• GATT - General Agreement on Tariffs and Trade.
Reduce tariffs and other hindrances to free trade. • TRANSNATIONALISM - It describe individuals who
adopt a political identification that does not focus on
• CHINA - It is the leading manufacturing center country the nation-state.
which has a lot of resources to dictate how it
participates in processes of global integration • Liberalists believe that a transition from a state-
centric system to an interdependent system is both
• CAPITALISTS - A person who uses their wealth to under way and desirable.
invest in trade and industry for profit in accordance
with the principles of capitalism. • NON-GOVERNMENTAL ORGANIZATION (NGO) - An
organizations that operate across national boundaries
• TRANSPORTATION - The key thing to have in and whose membership is composed of individuals.
Globalization.
• The level of global interconnectiveness is in large part
• COMMUNICATIONS, ECONOMICS & CULTURE - due to advancements in communications and
Globalization represents an increasing integration are transportation.
the following.
• The media has had significant role in promoting a
• LIBERALIZATION - Free and open border-less world common culture.
economy.
• NGOs doesn't have little effect on governmental
• Globalization could not exist without a common policies.
religion.
• Transnational interaction is increasing.
• The growth in global communication has meant
people now rely on different sources for the news. • SUNNIS AND THE SHIITES - A major source of conflict
within Islam is between the two major sects of Islam.
• Economic interchange and interdependence is a
phenomenon that affects individuals in everyday life. • CURRENT TREND OF TRANSNATIONALISM -
Transnationalism continues to progress, but it is difficult
• GLOBALIZATION - the process of expanding globalism to determine how long it will continue to grow.
and refers to the increasing integration of economics,
communications and culture across national boundries. • False - The term McWorld is used to describe a
transnational path toward greater conflict.
• THOMAS FRIEDMAN – He divides the history of
globalization in three (3) periods. • The following trends SUPPORT HUNTINGTON'S
"CLASH OF CIVILIZATIONS":
• Globalization 1 involved the globalization of countries. - Persistent racism
- Cultural clashes
• Globalization 2 involved the globalization of - Religious fundamentalism
companies.
• A POLITICAL STRUCTURE DOMINATED BY RELIGIOUS
• TECHNOLOGY - It advances and rapidly expanded the LAW - The goal of fundamentalist Muslims.
speed with which merchandise, money, people,
information and ideas move over long distances. • ECONOMIC GLOBALIZATION - A modern term used to
describe the changes in societies and the world
• THE BRETTON WOODS INSTITUTIONS INCLUDE: The economy that result from dramatically increased
World Bank and The International Monetary Fund. international trade and cultural exchange.

• All of the following are EXAMPLES OF THE BENEFITS • THE DRIVERS OF GLOBALIZATION:
OF GLOBALIZATION: - The reduction of barriers to international trade
- There is now a global culture with urbanization and - Increased consumer demand
resemblance. - Lowered costs of shipping and production, and
technological advancements in communication and
transportation.
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 spiraling into credit crises. It promotes international
• INOSEMTSEV (2008) - Globalization is one of the most financial stability and monetary cooperation. It also
known in social studies but still a hollow term. facilitates international trade, promotes employment
and sustainable economic growth, and helps to
• ROBERTSON (1992) - Globalization is the
reduce global poverty.
understanding of the world and the increased
perception of the world as a whole
• ICC - International Criminal Court (ICC), permanent
• THOMAS FRIEDMAN (1999) - He emphasized that the judicial body established by the Rome Statute of the
most basic truth in globalization is that “No one is in International Criminal Court (1998) to prosecute and
charge…” adjudicate individuals accused of genocide, war
crimes, and crimes against humanity.
• ALBROW & KING (1990) – They defined globalization
as a process by which people of the world are • TNC - Transnational corporations, a company that has
incorporated into a single society. operations in more than one country. The result of
the processes occurring in the world economy,
• WEBSTER - Globalization is the development of an leading to the improvement of production relations,
increasingly integrated economy marked by free the expansion of the geography of production. They
trade, free flow of capital, and the tapping of cheaper contribute to strengthening the economic
foreign labor markets. globalization and global competitive relations.

• CUTURELA (2012) - To him, globalization is to • MNC - Multinational corporations, a company that

designate an overview of the human experience in has operations in more than one country. These
education. companies are often managed from and have a
central office headquartered in their home country,
• GIDDENS (1991) - He claimed that globalization but with offices worldwide. Simply exporting goods to
intensifies social relationships among countries be sold abroad does not make a company a
around the world.
multinational.
• HUTTON & GIDDENS (2009) - They emphasized that
• UNCTAD - United Nations Conference on Trade and
globalization is the interplay of extraordinary
Development, a UN body responsible for dealing with
technological innovation mixed with the influence of
development issues, particularly international trade.
the world that gives today’s changing complexity.
Deals with trade policies, regulations, and institutions
at national, regional and international levels
• FRANCIS FUKUYAMA (2000) – He stressed that the
country’s level of economic development and
democracy is correlated. • UNCTC - United Nations Centre on Transnational
Corporations, was established in 1975 and abolished
• ROBERT HORMATS (1988) - According to him, no in 1992. It was an early effort by the UN to address
individual, no government, or no institution has the the overlapping issues of national sovereignty,
control over globalization. corporate responsibility and global governance.

• UN - United Nations, an international organization • THE BRETTON WOODS SYSTEM - A set of unified rules
founded in 1945 after the Second World War by 51 and policies that provided the framework necessary
countries committed to maintaining international to create fixed international currency exchange rates.
peace and security, developing friendly relations Essentially, the agreement called for the newly
among nations and promoting social progress, better created IMF to determine the fixed rate of exchange
living standards and human rights. for currencies around the world. It was also the first
- United Nations 1946 was created because of system used to control the value of money between
these ideas: different countries. It meant that each country had to
o Emphasized the need to form common have a monetary policy that kept the exchange rate of
international principle (Kant) its currency within a fixed value—plus or minus one
o Enshrined principles of cooperation and percent—in terms of gold.
respect among nation-states (Mazzini) - Inaugurated in 1944 to prevent catastrophies of
o Democracy and self-determination the early decades
(Wilson)
• According to WHO, GLOBALIZATION can be defined
• FDI - Foreign direct investment, a category of cross- as ” the increased interconnectedness and
border investment in which an investor resident in interdependence of peoples and countries. It is
one economy establishes a lasting interest in and a generally understood to include two inter-related
significant degree of influence over an enterprise elements: the opening of international borders to
resident in another economy. increasingly fast flows of goods, services, finance,
people and ideas; and the changes in institutions and
policies at national and international levels that
• IMF - International Monetary Fund, the global leader
facilitate or promote such flows.”
of last resort to prevent individual countries from

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• ECONOMIC GLOBALIZATION - the development of contributed to closing the digital divide between
trade systems within transnational actors such as more and less advanced countries.
corporations or NGOs;
2. Communication technology. The introduction of 4G
• FINANCIAL GLOBALIZATION - can be linked with the and 5G technologies has dramatically increased the
speed and responsiveness of mobile and wireless
rise of a global financial system with international
networks.
financial exchanges and monetary exchanges. Stock
markets, for instance, are a great example of the
3. oT and AI. These technologies are enabling the
financially connected global world since when one tracking of assets in transit and as they move across
stock market has a decline, it affects other markets borders, making cross-border product management
negatively as well as the economy as a whole. more efficient.

• CULTURAL GLOBALIZATION - refers to the 4. Blockchain. This technology is enabling the

interpenetration of cultures which, as a development of decentralized databases and
consequence, means nations adopt principles, storage that support the tracking of materials in the
beliefs, and costumes of other nations, losing their supply chain. Blockchain facilitates the secure
unique culture to a unique, globalized supra- access to data required in industries such as
culture; healthcare and banking. For example, blockchain
provides a transparent ledger that centrally records
and vets transactions in a way that prevents
• POLITICAL GLOBALIZATION - the development and corruption and breaches.
growing influence of international organizations
such as the UN or WHO means governmental action 5. Transportation. Advances in air and fast rail
takes place at an international level. There are technology have facilitated the movement of
other bodies operating a global level such as NGOs people and products. And changes in shipping
like Doctors without borders or Oxfam; logistics technology moves raw materials, parts and
finished products around the globe more efficiently.
• SOCIOLOGICAL GLOBALIZATION - information
moves almost in real-time, together with the 6. Manufacturing. Advances such as automation and
interconnection and interdependence of events and 3D printing have reduced geographic constraints in
their consequences. People move all the time too, the manufacturing industry. 3D printing enables
digital designs to be sent anywhere and physically
mixing and integrating different societies;
printed, making distributed, smaller-scale
production near the point of consumption easier.
• TECHNOLOGICAL GLOBALIZATION - the Automation speeds up processes and supply chains,
phenomenon by which millions of people are giving workforces more flexibility and improving
interconnected thanks to the power of the digital output.
world via platforms such as Facebook, Instagram,
Skype or Youtube. • THREE TYPES OF GLOBALIZATION:
a. Economic globalization. Here, the focus is on
• GEOGRAPHIC GLOBALIZATION - is the new the integration of international financial
organization and hierarchy of different regions of markets and the coordination of financial
the world that is constantly changing. Moreover, exchange. Free trade agreements, such the
with transportation and flying made so easy and North American Free Trade Agreement and the
affordable, apart from a few countries with Trans-Pacific Partnership are examples of
economic globalization. Multinational
demanding visas, it is possible to travel the world
corporations, which operate in two or more
without barely any restrictions;
countries, play a large role in economic
globalization.
• ECOLOGICAL GLOBALIZATION - accounts for the
idea of considering planet Earth as a single global b. Political globalization. This type covers the
entity – a common good all societies should protect national policies that bring countries together
since the weather affects everyone and we are all politically, economically and culturally.
protected by the same atmosphere. To this regard, Organizations such as NATO and the UN are
it is often said that the poorest countries that have part of the political globalization effort.
been polluting the least will suffer the most from
climate change. c. Cultural globalization. This aspect of
globalization focuses in a large part on the
technological and societal factors that are
• AMONG THE RECENT TECHNOLOGICAL CHANGES
causing cultures to converge. These include
THAT HAVE PLAYED A ROLE IN GLOBALIZATION
increased ease of communication, the
ARE THE FOLLOWING: pervasiveness of social media and access to
faster and better transportation.
1. Internet and internet communication. The internet
has increased the sharing and flow of information • ECONOMIC GLOBALIZATION - It is characterized by
and knowledge, access to ideas and exchange of increasing integration of economics around the
culture among people of different countries. It has world.

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• Age of Globalization begin at 1571 • Washington Consensus dominated global economic
policies from 1980s until the early 2000s
• HOW DO ORGANIZATIONS COPE WITH THE
CHALLENGES OF GLOBALIZATION? • KEYNESIANISM - When economies slow down, this
- By forming regional organizations strategy will reinvigorate markets with infusions of
capital.
• WHICH OF THE FOLLOWING IS NOT INCLUDED IN
THE AREAS ENCOMPASSED BY REGIONALISM? • FIAT CURRENCY - Exhange rate system was all
- Sustainable Development based on the value of gold, but it was replaced by a
currency which is determined by their cost relstibe
• REGIONALISM - refers to the political process to other currencies.
characterized by economic policy.
• Singapore ake advantage of its strategic location as • WESTPHALIA - A treaty signed in 1648 to end 30 yrs
a response to economic and political globalization. war of major continent powers of Europe

• WHY COUNTRIES FORM REGIONAL • It is important to examine external relations.

ASSOCIATIONS?
- Military Defense • NAM - created in 1961 to pursue world peace and
international cooperation. (Egypt, China, India,
• MOST WIDELY KNOWN DEFENSE GROUP Indonesia, Yugoslavia)
- NATO
• IMMANUEL KANT - WIthout a form of World
• Economic crisis compels countries together. An Government, international system would be
example of this is when thailand's economy chaotic.
collapsed, ASEAN countries agreed to establish an
emergency fund to anticipate the crisis • ARJUN APPADURAI - Anthropologist that said
different kinds of globalization occur on multiole
• The challenge for new regionalists is that they differ and intersecting dimensions of integration.
from traditional state regionalism when it comes to
identifying problems. • JOHN MAYNARD KEYNES - Economic crises occur
whrn money is not being spend and therefore, not
• The most serious challenge faced by regionalism is moving.
resurgence of militant nationalism and populism
• MAX WEBER - "There is a connection between
• RELIGION AND GLOBALISM IS TWO CONTRASTING religion and capitalism"
BELIEFS:
- Religion follows divine commandment, • CONCERT OF EUROPE - Also called Metternich
Globalism abides human made laws system (named after systems main architect)
- Human actions are in moral terms in religion
and Globalism follows its subsequent wisdom.
• POPE FRANCIS - “Globalization is a throw away
culture that is fatally destined to suffocate hope
• GLOBALIZATION IS SPATIAL BECAUSE IT OCCURS IN and increase risk.”
PHYSICAL PLACES:
- Foreign investments and capital move through
• SUPRANATIONALISM - the state or condition of
cities
transcending national boundaries, authority, or
- People start purchasing high rise condominium
interests.
- More poor people are driven out of city centers

• Australia's 3rd largest export is Education

• Shanghai plays a critical role in the global economic

supply chain

• London, New York, Tokyo are hub of global finance

and capitalism

• CULTURE IMPERIALISM - American values and

culture would overwhelm all others

• WORLD BANK - responsible for funding postwar

reconstruction projects

• IMF regards Economic Globalization as a historical

process representing results of human innovation
and technological process.

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