Pointers to Review in

GED 104 The Contemporary World

2. Globalization is reflected in the expansion and the

UNIT I INTRODUCTION TO stretching of social relations, activities, and connections.
GLOBALIZATION Examples:
Globalization is the process in which people, ideas and  Reaching of financial markets around the globe
goods spread throughout the world, spurring more  Occurrence of electronic around the clock
interaction and integration between the world's cultures,  Social stretching – process of which emergence of
governments and economies. gigantic and virtually identical shopping malls in
all continents to cater to consumers who can afford
Globalization is a process of interaction and integration
commodities all over the world-including products
among the people, companies, and governments of
whose various components were manufactured in
different nations, a process driven by international trade
different countries.
and investment and aided by information technology. This
process has effects on the environment, on culture, on Covered in the process of social stretching are:
political systems, on economic development and
prosperity, and on human physical well-being in societies  Non-governmental organization
around the world  Commercial enterprises
 Social clubs
Globalization is about growing worldwide connectivity.  Regional & global institutions and associations
Example: (UN, EU, ASEAN, Google And others)
People are engaged in buying and selling from other places
3. Globalization involves the intensification and
in far-away lands like the famed Silk Road across Central acceleration of social exchanges and activities.
Asia that connected China and Europe during the Middle
Age for thousands of years and they also invested in Examples:
enterprises in other countries for centuries.
 The worldwide web relays distant information in
According to the International Monetary Fund (IMF) real time
globalization is the growing economic interdependence of  Satellites provide consumers with instant pictures
countries worldwide through increasing volume. of remote events
Globalization is an expansion, and intensification of social  Sophisticated social networking by means of
relations and consciousness across world time and world facebook or twitter has become routine activity for
space. It is about growing worldwide connectivity more than a billion people around the globe.
according to Steger. 4. Globalization processes do not occur merely or an
A defining feature of globalization is an institutional objective, material level but they also involve the
industrial and financial business structure. subjective plane of human consciousness. Without erasing
local and national attachments, the compression of the
Economic life is dramatically transformed by advancement world into a single place has increasingly made global the
in information technology. frame of reference for human thought and action.
One principal driver of globalization is technology. Historical Periods of Globalization
Attributes, Qualities or Characteristics of 1. The Prehistoric Period (10000 BCE-3500 BCE)
Globalization
In this earliest phase of globalization, contacts among
1. It involves both the creation of new social networks and hunters and gatherers – who were spread around the world
the multiplication of existing connections that cut across – were geographically limited. In this period due to
traditional, political, economic, cultural, and geographical absence of advanced forms of technology, globalization
boundaries. was severely limited.
Example: 2. The Pre-modern Period (3500 BCE- 1500 CE)
Brazilian World Cup: Today’s media combine In this period the invention of writing and the wheel were
conventional TV coverage with multiple streaming feeds great social and technological boosts that moved
into digital devices and networking sites that transcend globalization to a new level. The invention of wheel in
nationally based services. addition to roads made the transportation of people and
goods more efficient. On the other hand, writing facilitated industrial productions. It is also important for resource
the spread of ideas and inventions. distribution.
3. The Early Modern Period (1500-1750) 2. Political Dimension
It is the period between the Enlightenment and the This refers to an enlargement and strengthening of political
Renaissance. In this period, European Enlightenment interrelations across the globe.
project tried to achieve a universal form of morality and
law. This with the emergence of European metropolitan Political Issues that Surface in this Dimension
centers and unlimited material accumulation which led to 1. The principle of state sovereignty
the capitalist world system helped to strengthen 2. Increasing impact of various intergovernmental
globalization. organization
4. The Modern Period (1750-1970) 3. Future shapes of regional and global governance

Innovations in transportation and communication Example:

technology, population explosion, and increase in European Union, United Nations, NATO, The World
migration led to more cultural exchanges and Trade Organization
transformation in traditional social patterns. Process of
industrialization also accelerated. 3. Cultural Dimension
5. The Contemporary Period (from 1970 to present) This refers to the increase in the amount of cultural flows
across the globe. Cultural interconnections are at the
The creation, expansion, and acceleration of worldwide foundations of contemporary globalization.
interdependencies occurred in a dramatic way and it was a
kind of leap in the history of globalization. Individualism and consumerism which are the dominant
cultural characteristics of our age and the drive for
Dimensions of Globalization economic success stimulated by the internet and other
1. Economic Dimension technological devices circulate much more easily than they
did in earlier periods.
This refers to the extensive development of economic
relations across the globe as a result of technology and the Cultural diversity often results hybridization- a
enormous flow of capital that has stimulated trade in both constructive interaction process between global and local
sources and goods. characteristics which is often visible in food, music, dance,
film, fashion, and language. As a result there is a scarcely
 Major players in the current century’s global any society in the world that expresses itself in its own self-
economic order contained and authentic culture.
1. Huge international corporations (General
Motors, Walmart, Mitsubishi) Media empires: Yahoo, Google, Microsoft, and Disney
 International Economic Institutions (IMF, World Advertisement plays an important role in this cultural flow.
Bank, The World Trade Organization)
 Trading Systems 4. Religious Dimension

The result of these powerful forces resulted in the wide gap Religion is a personal or institutionalized set of attitudes,
between the rich and the poor countries. beliefs, and practices relating to or manifesting faithful
devotion to an acknowledged ultimate reality or deity. It is
Major Sources of Economic Growth across Countries the most important defining element of any civilization as
contrasted with race, language, or way of life. As such, it
1. Property rights
is also portrayed as a defining element in future conflicts.
2. Regulatory institutions Whether the root cause of a particular conflict or merely a
vehicle for the mobilization of nationalist or ethnic
3. Institutions for macro-economics passions, religion is certainly central to much of the strife
currently taking place around the globe.
4. Stabilization
Jihadist globalism is a religious response to the materialist
5. Institutions for social influence
assault by the ungodly West in the rest of the world.
7. Institutions for conflict management Coming out of what they consider a pure form of Islam, its
disciples seek to destroy all those alien influences that have
Economic institutions have decisive influence on been imposed on Muslim people. It applies to those
investment in physical and human capital, technology, and extremely violent strains of religion that convert the global
imaginary into very concrete political agendas and terrorist power structures. Ideology connects human actions with
tactics. It is also applied to those violent fundamentalists in some generalized claims (14a).Globalization is a social
the West who seek to transform the world into a Christian process of intensifying global interdependence while
Empire. globalism is an ideology that gives the concept of neo-
liberal values and meanings to globalization.
Roman Catholic Teaching of Globalization
Major Ideological Claims of Advocates of Globalism
There are eight (8) principles that summarize the Roman
Catholic Teachings (15). 1. Globalization is about the liberalization and global
integrati of markets.
1. Commitment to universal human rights
The problem with this claim is that liberalization and
2. Commitment to the social nature of the human person integration of markets happen through political project of
3. Commitment to the common good engineering free markets by interference of centralized
state power, and it is in contrast to the neoliberal ideal of
4. Solidarity (The principle of Solidarity affirms that limited role of governments.
membership in the human family means that all bear
responsibility for one another.) 2. Globalization is inevitable and irreversible.

5. Preferential option of the poor (In the Theology of the Globalists believe that spread of market forces driven by
Incarnation- Christ God became poor for us so as to enrich technological innovations is inevitable in globalization.
us by his poverty. The poor are susceptible to the effects of Neoliberals use this claim to convince people to adopt the
environmental irresponsibility because they live in natural discipline of the market if they want to prosper,
countries where cheap building materials and cheap labor which implies the elimination of government controls over
are readily available. They regularly work in farming, the market.
fishing, and forestry, areas which suffer environmental 3. Nobody is in charge of globalization.
damage).
This claim seeks to depoliticize the public debate on
6. Subsidiary (The Catholic Church teaches that decisions globalization and neutralizing anti -globalist movements.
should be made at the lowest level in order to achieve the
common good. 4. Globalization benefits everyone.
7. Justice Globalists talk about the benefits of market liberalization
such as rising global living standards, economic efficiency,
8. Integral Humanism- is concerned with whole person. individual freedom, and technological progress. But the
Justice is divided in three (3) categories: reality is that the opportunities of globalization are spread
unequally and power and wealth are concentrated among a
1. Commutative justice specific group of people, regions and corporations.
This aims at fulfilling the terms of contracts and other 5. Globalization furthers the spread of democracy in the
promises on both personal and social level. world.
2. Distributive justice For the globalists democracy and free markets are
synonymous.
This ensures a basic equity in how both the burden and the
goods of society are distributed and that ensures that every
person enjoys a basically equal moral and legal standing
apart from differences in wealth, privilege, talent and UNIT II THE STRUCTURES OF
achievements GLOBALIZATION
3. Social justice The Global Economy
This refers to the creation of the conditions in which the Economic globalization reflects the continuing expansion
first two categories of justice can be realized and the and mutual integration of market frontiers.
common good identified and defended.
According to the International Monetary Fund (18)
5. Ideological Dimensions economic globalization is a historical process, the result of
human innovation and technological progress.
Ideology is a system of widely shared ideas, beliefs, norms
and values among a group of people. It is often used to Two Major Driving Forces for Economic Globalization
legitimize certain political interests or to defend dominant
1. The rapid growing of information in all types of twice as high as growth in the national incomes of the
productive activities developed economies since the late 19th century.
2. Marketization- A restructuring process that enables International Monetary Systems and Gold Standard
state enterprises to operate as market-oriented firms by
changing the legal environment. International monetary system (IMS) refers to a system
that forms rules and standards for facilitating international
Dimensions of Economic Globalization trade among the nations. It is the global network of the
government and financial institutions that determine the
1. The globalization of trade of goods and services exchange rate of different currencies for international
2. The globalization of financial and capital markets trade.

3. The globalization of technology and communication Gold Standard is a system of backing a country’s
currency with its gold reserves. Such currencies are freely
4. The globalization of production convertible into gold at a fixed price, and the country
settles all its international trade transactions in gold.
Economic globalization is a functional integration
between internationally dispersed activities which means European monetary integration refers to a 30-year long
that it is a qualitative transformation rather than a process that began at the end of the 1960s as a form of
quantitative change. monetary cooperation intended to reduce the excessive
influence of the US dollar on domestic exchange rates, and
Economic globalization produces its own major players in
led, through various attempts, to the creation of a Monetary
the form of transnational corporations (TNCs), the main
Union and a common currency.
driving forces of economic globalization of the last 100
years or roughly two-thirds of world export (23). European Monetary System (EMS) a 1979 arrangement
Transnational Corporation otherwise known as multi - between several European countries which links their
National Corporation is a corporation that has a home base, currencies in an attempt to stabilize the exchange rate.
but is registered, operates and has assets or other facilities
in at least one other country at one time (24). Examples are European Financial Stability Mechanism (EFSM) is a
the US-based General Electric (GE), the Coca-Cola permanent fund created by the European Union (EU) to
Company of Atlanta, Georgia, US Nike and others. provide emergency assistance to member states within the
Union.
Internationalization is an extension of economic
activities between internationally dispersed activities. International trade is the exchange of goods, services and
capital across national borders. It is a multi-million dollar
Origin of Economic Globalization activity, central to the Gross Domestic Product (GDP) of
many countries, and it is the only way for many people in
Economic globalization is a process that creates an organic
many countries to acquire resources.
system of the world economy.
Trade policies on the other hand refer to the regulations
In the 16th century world system analysts identify the
and agreement of foreign countries. It defines standards,
origin of modernity and globalization through long
goals, rules, and regulations that pertain to trade relation
distance trade in the 16th century. This best known
between countries.
example of archaic globalization is the Silk Road, which
started in western China, reached the boundaries of the Focuses of Trade Policy in International Trade
Parthian empire, and continued onwards towards Rome. It
also connected Asia, Africa, and Europe. 1. Tariffs – These are taxes or duties paid for a particular
class of imports or exports.
In the 17th and 18th century global economy exists only in
trade and exchange rather than production as the world 2. Trade barriers – Theses are measures that governments
export to World GDP did not reached 1 to 2 percent. or public authorities introduce to make imported goods or
services less competitive than locally produced goods and
In the 19th century the advent of globalization approaching services.
its modern form is witnessed. A short period before World
War I is referred to as golden age of globalization 3. Safety – This ensures that imported products in the
characterized by relative peace, free trade, financial and country are of high quality.
economic stability. Growth in international exchange of Types of Trade Policies
goods accelerated in the second quarter of the 19th century.
Global economy in the 19th and 20th centuries grew by an National Trade Policy. This safeguards the best interest
average of nearly 4 percent per annum, which is roughly of its trade and citizen.
Bilateral Trade Policy. To regulate the trade and business 3. They must induce the necessary relationship-specific
relations between two nations, this policy is formed. investments in an environment with incomplete
contracting.
International Trade Policy. This defines the international
trade policy under their charter like the International Possible Determinants of the Location of Outsourcing
economic organizations, such as Organization for:
1. Size of the country can affect the “thickness” of its
 Economic Cooperation and Development (OECD) markets.
 World Trade Organization (WTO)
2. The technology for search affects the cost and likelihood
 International Monetary Fund (IMF).
of finding a suitable partner.
The best interests of both developed and developing
3. The technology for specializing components determines
nations are upheld by the policies.
the willingness of a partner to undertake the needed
Trade Policy and International Economy. In most investment in a prototype.
developed countries where open market economy prevails,
4. The contracting environments can impinge on a firm’s
the international economic organizations support free trade
ability to induce a partner to invest in the relationship.
policies.
Market Integration
The following are dependent on globalization:
Market integration refers to how easily two or more
 Sound trade policies for market changes markets can trade with each other. It occurs when prices
 Establishment of free and fair trade practices and among different locations or related goods follow similar
expansion of possibilities for booming patterns over a long period of time.
international trade.
Example:
The World Trade Organization (WTO) deals with the
global rules of trade between nations with the main China produces toys at a cheaper price than the US. If
function of ensuring that trade flows smoothly, predictably foreign trade increased between the two countries, toys
and freely. It is the only global international organization could be sold to the US more easily, making them more
dealing with the rules of trade between nations with WTO available, thus reducing price.
agreements, negotiated and signed by the bulk of the
world’s trading nations and ratified in their parliaments at Types of Related Markets where Market Integration
its heart. Occurs

Global Economy Outsourcing Stock Market Integration This is a condition in which

stock markets in different countries trend together and
Outsourcing is an activity that requires search for a partner depict same expected risk adjusted returns.
and relation-specific investments that are governed by
incomplete contracts and the extent of international Financial Market Integration It is an open market
outsourcing depends on the thickness of the domestic and economy between countries facilitated by a common
foreign market for input suppliers, the relative cost of currency and the elimination of technical, regulatory and
searching in each market, the relative cost of customizing tax differences to encourage free flow of capital and
inputs and the nature of the contracting environment in investment across borders.
each country. Outsourcing is a means of finding a partner Global Corporation
with which a firm can establish a bilateral relationship.
A global corporation is a business that operates in two or
One of the most rapidly growing components of more countries. It also goes by the name "multinational
international trade is the outsourcing of intermediate goods company".
and business services.
Example:
3 Essential Features of modern outsourcing strategy
One can find more customers in a country whose economy
1. Firms must search for partners with the expertise that is vibrant and expanding in lieu of stagnant local and
allows them to perform the particular activities that are domestic economy or market share that has hit a plateau.
required.
Historical Globalization. An approach to the study of
2. They must convince the potential suppliers to customize globalization that locates the phenomenon itself in early
products for their own specific needs. patterns of trade and exchange
The Finance Function in a Global Corporation
Chief financial officers (CFOs) must balance the The State and the Economic Interdependence
opportunities with the challenges of operating in multiple
environments in managing their internal markets in The belief that globalization imposes a forced choice upon
building an advantage. states either to conform to free market principles or run the
risk of being left behind is termed into a phrase called
These three functions can be created by CFOs through “Golden Straitjacket” by Thomas Friedman.
exploiting their internal capital markets.
Thomas Friedman, a neoliberalism journalist and advocate,
1. Financing to illustrate the forcing of states into policies that suit the
preferences of investment houses and corporate executives
A group’s tax bill can be reduced by the CFO like (Electronic Herd).
borrowing in countries with high tax rates and lending to
operations in countries with lower rates. There are two things that will happen if a country is in
Golden Straitjacket: the economy grows and politics
2. Risk Management shrinks.
Global firms can offset natural currency exposures through Neoliberalism is the intensification of the influence and
worldwide operations instead of managing currency dominance of capital.
exposures through financial markets.
Economic sovereignty on the other hand is the power or
3. Capital budgeting national governments to make decisions independently of
Getting smarter on valuing investment opportunities CFOs those made by other governments.
can add value. There are four different concepts of sovereignty.
Foreign Direct Investment (FDI) was of corporate origin. 1. International Legal Sovereignty. It refers to the
It is a major driver of extended global corporate acceptance of a given state as a member of the international
development. community.
BRICS Economies 2. Westphalian Sovereignty. It is based on the principle
Brazil, Russia, India, China and South Africa (BRICS) that one sovereign state should not interfere in the domestic
is an acronym for the combined economies of Brazil, arrangements of another.
Russia, India, China and South Africa. BRIC, without 3. Interdependence Sovereignty. It is the capacity and
South Africa, was originally coined in 2003 by Goldman willingness to control flows of people, goods and capital
Sachs, which speculates that by 2050 these four economies into and out of the country.
will be the most dominant (BRIC).
4. Domestic Sovereignty. It is the capacity of a state to
South Africa was added to the list on April 13, 2011 choose and implement policies within the territory.
creating "BRICS". These five countries were among the
fastest growing emerging markets as of 2011 Economic and Political Integration (European
Integration)
General Agreement on Trade in Services (GATS)
European integration is the process of industrial,
The General Agreement on Trade in Services (GATS) political, legal, economic, social and cultural integration of
is the first multilateral agreement covering trade in services states wholly or partially in Europe
which was negotiated during the last round of multilateral
trade negotiations, called the Uruguay Round, and came European Union (EU), is an international organization
into force in 1995. comprising 28 European countries and governing common
economic, social, and security policies.
The Global Interstate System
e.g. Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech
Max Weber. German social theorist define state as a Republic, Denmark, Estonia, Finland, France, Germany,
compulsory political organization with a centralized Greece, Hungary, Ireland, Italy, Latvia, Lithuania,
government that maintains a monopoly of the legitimate Luxembourg, Malta, the Netherlands, Poland, Portugal,
use of force within a certain territory. Romania, Slovakia, Slovenia, Spain, Sweden, and the
Hedley Bull. 20th century international philosopher stated United Kingdom.
that states are independent political communities each of Economic integration can be described as a process and a
which possesses a government and asserts sovereignty in means by which a group of countries strives to increase
relation to a particular portion of the earth’s surface and a their level of welfare.
particular segment of the human population.
Seven Stages of Economic Integration The European integration is mostly seen as an upper class-
driven process- driven by national and international
1. Preferential Trade Areas (PTAs) happens when political and economic upper crusts.
there’s an agreement on reducing or eliminating tariff (tax
or duty to be paid on a particular class of imports or Intergovernmentalism
exports) barriers on selected goods imported from other
members of countries within the geographical region or This theory provides a conceptual explanation of the
areas. European integration process. The main concept of the
Intergovernmentalism is emphasizing on the role of
2. Free Trade Agreements (FTAs) or Preferential Trade national states in the European integration; in another
agreements (PTAs) eliminate import tariffs as well as words it argues that "European integration is driven by the
import quotas between signatory countries. The North interest and actions of nation states".
American Free Trade Agreement (NAFTA) is an example
of such an arrangement Liberal Intergovernmentalism

3. Custom Union Removal of tariff barriers between This a dominant political theory developed by Andrew
members, together with the acceptance of a common or Moravsik in 1993 to explain European integration.
unified external tariff against non-members is involved. Application of rational institutionalism to the field of
European integration is the aim of this theory.
4. Common Market (CM). One major step towards
economic integration. All barriers to the mobility of Moravcsik stated that 'state-society relations--the
people, capital and other resources within the area in relationship of state to the domestic and transnational
question, as well as eliminating non- tariff barriers to trade, social context in which they are embedded--have a
such as the regulatory treatment of product standards are fundamental impact on state behavior in world politics and
removed by CM aside from containing the provisions of a that the 'universal condition of world politics is
customs union. globalization.'

5. Economic Union. The trading bloc that has both a New Institutionalism
common market between members, and a common trade This theory emphasized the importance of institutions in
policy towards non-members, although members are free the process of European integration. Its three key strands
to pursue independent macro-economic policies. The best are: rational choice, sociological and historical.
example of Economic union is the European Union (EU).
Multi-level Governance (MLG)
6. As a key stage towards complete integration, the
Economic and Monetary Union (EMU) involves a single This is a new theory of European integration. Writers
economic market, a common trade policy, a single Liesbet Hooghe and Gary Marks defined MLG as
currency and a common monetary policy. dispersion of authority across multiple levels of political
governance.
7. Complete Economic Integration is the final stage of
economic integration in which member states completely Transnational Activism in States
forego independence of both monetary and fiscal policies.
Transnational activism can be defined as the mobilization
of collective claims by actors located in more than one
country and/or addressing more than one national
Political integration refers to the integration of government and/or international governmental
components within political systems; the integration of organization or another international actor.
political systems with economic, social, and other human
systems; and the political processes by which social, A social movement is a type of group action. It refers to
economic, and political systems become integrated. the organizational structures and strategies that may
empower oppressed populations to mount effective
Theories of European Integration challenges and resist the more powerful and advantaged
Neo-functionalism elites".

This theory focuses on the supranational institutions of the The global justice movement describes the loose
EU of which the main driving forces of integration are collection of individuals and groups often referred to as a
interest group activity at the European and national levels, “movement of movements”, who advocate fair trade rules
political party activity, and the role of governments and and are negative to current institutions of global economics
supranational institutions. such as the World Trade Organization.
The new transnational activism is as multifaceted as the
internationalism.
Social Media and the State 3. Fostering cooperation between nations in order to solve
economic, social, cultural, or humanitarian international
Social media is a computer-based technology that problems
facilitates the sharing of ideas and information and the
building of virtual networks and communities. 4. Providing a forum for bringing countries together to
meet the UN's purposes and goals.
Social media have changed the ways in which this
knowledge is being recorded and passed on. 5 stages or main gaps meet by UN in the 21st century
Economic Union requires coordinated monetary and fiscal knowledge, norms, policy, institutions and compliance
policies as well as labor market, regional development,
transportation and industrial policies. The Role of the Nation -State in Globalization

The Contemporary Global Governance Basic Elements of a State

Global governance or world governance is a product of 1. Territory

neo-liberal paradigm shifts in international political and 2. People
economic relations.
3. Sovereign Power
Global governance is a tool to identify solutions to
problems created by neoliberal globalization. Nation- state role in globalization is complex. Since
nation-states are divided by physical and economic
The State has the roles in operating the intricate web of boundaries, reduced barriers in international commerce
multi-lateral arrangements and inter-governmental and communication are considered their potential threat.
regimes, enter into agreements with other States, make
policies which shape national and global activities, agenda Globalization’s Impact on the State
of integration by clearly pronouncing the problem of
Factors which lead to the increase and acceleration of
capacity inadequacy of individual States.
movement of people, information, commodities and
The Roles and Functions of the United Nations capital.
As an intergovernmental organization, the United Nation 1. Lifting of trade barriers
is tasked to promote international co-operation and to
2. Liberalization of world capital markets
create and maintain international order. It is the largest,
most familiar, most internationally represented and most 3. Swift technological progress (information technology,
powerful intergovernmental organization in the world. transportation and communication)
The United Nations (UN) in the world of politics has the Problems afflicting the world today which are increasingly
roles of preventing and managing conflicts, regulating transnational in nature those that cannot be solved at the
armaments, championing human rights and international national level or State to State negotiations.
humanitarian law, liberating the colonized, providing
economic and technical aid in newly liberated countries, 1. Poverty
organizing elections, empowering women, educating 2. Environmental pollution
children, feeding the hungry, sheltering the disposed and
displaced, housing the refugees, tending the sick and 3. Economic crisis
coordinating disaster relief and assistance. In policy
motivation, peacekeeping is the most important feature of 4. Organized crime and terrorism
UN activity in peace and security. Effects of greater economic and social interdependence to
The UN aims to save succeeding generations from the national decision making processes.
scourge of war; to reaffirm faith in fundamental human 1. It calls for a transfer of decisions to the international
rights; to establish conditions under which justice and level
respect for the obligations arising from treaties and other
sources of international law can be maintained; and to 2. It requires many decisions to be transferred to local
promote social progress and better standards of life in levels of government due to an increase in the demand for
larger freedom. participation.
Four Main Purposes of the UN Charter The following can be guaranteed only by the States through
independent courts:
1. Maintaining worldwide peace and security
1. Respect of human rights and justice
2. Developing relations among nations
2. Promote the national welfare South Korea, and Taiwan were created by developmental
states and national capitalism.
3. Protect the general interest
2. New urban middle classes in East Asia, whether in
UNIT III THE WORLD OF REGIONS Japan, South Korea, Taiwan, or Southeast Asia, with their
Global Divides: The North and the South (focus: Latin middle-class jobs, education, and income, have in turn
America) created their own new lifestyles commensurate with their
middle-class income and status.
Global South refers to the regions of Latin America, Asia,
Africa, and Oceania mostly low- income and often Middle Classes in The Philippines
politically or culturally marginalized. New urban middle classes emerged in the post 1986
Global South refers to these countries' "interconnected Philippines. They were created through growth in retail
histories of colonialism, neo-imperialism, and differential trade, manufacture, banking, real estate development, and
economic and social change through which large an expanding range of specialist services such as
inequalities in living standards, life expectancy, and access accounting, advertising, computing, and market research.
to resources are maintained. Refers to the decentralization
of political powers or competencies from a higher towards
a lower political level. PASA NA!
Three Primary Concepts of Global South PART 2 : Reviewer for GED 104 – The Contemporary
World
1. It refers to economically disadvantaged nation-states and
as a post-cold war alternative to “Third World”.
2. The Global South captures a deterritorialized geography True or False
of capitalism’s externalities and means to account for
Direction: Read and analyze the following statements.
subjugated peoples within the borders of wealthier
countries, such that there are economic Souths in the Choose A if the first statement is correct and the second
geographic North and Norths in the geographic South. statement is incorrect; B if the first statement is incorrect
and the second statement is correct; C if both statements
3. It refers to the resistant imaginary of a transnational
are correct; and D if both statements are incorrect.
political subject that results from a shared experience of
subjugation under contemporary global capitalism.
The strongest vehicle for social redistribution and the main 1. The middle class in East Asia was formed through
mechanism for social transfer is the state. regional economic development in the postwar era.
Regional economic development took place within the
Asian Regionalism
American informal empire in Free Asia. C
Regionalization entails complex and dynamic interactions
between and among governmental and nongovernmental
actors which resulted to hybrid East Asia. 2. Middle class formation in Southeast Asia was
driven by developmental states and national capitalism. On
Regionalism refers to the decentralization of political
the other hand, middle class in Japan, South Korea and
powers or competencies from a higher towards a lower
Taiwan was created by global and regional transnational
political level.
capitalism. D
The Asia Pacific and South Asia refer together to the
regions of East (or Northeast) Asia, South Asia, the Pacific
Islands, and South Asia. It includes some of the world’s 3. The United States has implemented a policy shift
most economically developed states such as Japan, South to commit more resources and attention to the Asia Pacific
Korea, Singapore, and Taiwan, and highly impoverished Region. This foreign policy shift is called Pacific Pivot. C
countries such as Cambodia, Laos, and Nepal.
Two salient points in the history of east Asian middle-
class formation. 4. The Asia and the Pacific was considered to
become a key driver of global politics. This area in the
1. Middle class formation in Southeast Asia was driven by region is home to several key allies and important
global and regional transnational capitalism working in emerging powers. B
alliance with national states while middle class in Japan,
 15. International organizations may have universal
membership or limited membership. The World Trade
5. Regionalism refers to the centralization of political Organization is an example of the first type of international
powers or competencies from a higher towards a lower organization. C
political level. It can either be bottom-up or top-down. B

16. Social media helps foster the sense of a digital

6. The global south’s development begins by village. This is where individuals are able to see the lives
becoming dependent on foreign investments and foreign of others within their organization and feel closer to them.
financial markets. Drawing financial resources from within C
will not enable its development. D

17. Often referred to as “movement of movements”,

7. The First World is composed of countries whose transnational activism advocates fair trade rules and are
views aligned with NATO and capitalism. Third World negative to current institutions of global economics.
countries supported communism and the Soviet Union. A Transnational activism mobilizes collective claims by
actors located in more than one country. B

8. Problems and issues in the global south are being

globalized. Some of these include issues about the global 18. Intergovernmentalism is a theory of regional
environment. C integration. Its core is the use of the concept of spillover.
D

9. The global south is a directional designation and a

point due south from a fixed north. It is a symbolic of the 19. Political integration is a means by which a group
cohesion that emerged from decolonization toward post- of countries strives to increase their level of welfare. It
colonial international order. B often includes the reduction or elimination of trade
barriers. D

10. The global north is focused on Latin America. It is

often politically-marginalized. D 20. A state is an independent political community with
a government, asserting sovereignty over its territory and
population. A nation is imagined as both inherently limited
11. The role of the nation-state in a global world is and sovereign. C
largely regulatory. This is a factor in global
interdependence. C
21. BRICS economies are among the fastest growing
emerging markets as of 2011. These include Brazil, Russia,
12. Sovereignty of individual nations is not abolished India, China and South America. A
by expanded trade among countries. It has, however,
changed the way nation-states deal with one another. C
22. Foreign direct investment is a major driver of
extended global corporate development. It involves capital
13. Global governance has led to the foundation of investment and provision of management or technology. C
sustainable development projects around the globe. It is
governing with sovereign authority. A
23. Studying globalization looks at the early patterns
of trade and exchange. This is known as historical
14. Global governance faces challenges in the 21st globalization. C
century. These issues involve both domestic and foreign
challenges. C
24. Global corporations run a strictly domestic
company. They intend to expand revenue opportunities an
diversify business risks. C
 34. Technology has transformed economic life. Faster
and more informed analysis of economic trend have been
25. When prices of related goods and services sold in provided by information technologies. C
a particular location has movement, market integration
occurs. Integration of markets can be aided by increasing
barriers to trade. A
35. Globalization has similar features since before
World War 1 up to the present. Since 1914, known as the
current wave of globalization, economic development has
26. Importers and exporters pay taxes or duties for progressed. A
their imports and exports. These taxes are in the form of
tariffs. C

27. The European Monetary System was an agreement

entered into by several European countries in 1975. was an
attempt to stabilize inflation and stop large exchange rate
fluctuations between European countries. B

28. Gold reserves back up a country’s currency. Using

the Gold Standard as a system, currencies are freely
convertible into gold at a fixed price. C

29. An organic system of the world economy is

created through the process of economic globalization.
This started through a long-distance trade during the 17th
century called the Silk Road. A

30. Economic globalization is driven by rapid growing

information in all types of productive activities.
Marketization is also a driving force of economic
globalization. C

31. Ideology connects human actions with some

generalized claims. Globalization is an ideology. A

32. Globalization processes occur on an objective

material level. It erases local and national attachments. D

33. Globalization has enabled the growing

interdependence in the economies of countries. This is
evidenced by decreasing volume in goods and services
across borders. A