PHINMA-University of Pangasinan

Arellano St., Dagupan City, 2418

Globalization - is growth on a worldwide much-needed jobs if a powerful
scale. It is the process of integration and organization can outsource its call
the international influence of economies center to a developing country,
and cultures. It is an exchange of goods which creates a new class of jobs
and an exchange of ideas and even for people who may not have had
anti-terrorist protections. that opportunity otherwise.

- Is an economic process that aims to 2. Globalization in the Blending of

integrate countries' economies globally, Cultures
internalization acts the same as
Globalization, improvising the local New cultures are being transmitted when
economy, leading to its growth and more people are traveling or exchanging
expansion of businesses across other goods. It is also affected by open
countries. Expanding local drug trade communication by the internet, especially
overseas and making his underground intermarriages coming from dating site
business rampant on a global scale meet ups. While world economies benefit
from globalization, the spread of new
1. Globalization in Economics cultures is also affected. Christian
missionaries from Europe added to the
Interdependence among international globalization of Christianity. As they
economies is a great starting point when migrated from one country to another,
seeking an understanding of globalization. more and more people converted to a new
The more technology advances and the spiritual way of living.
more transportation improves, the more
global outlets are revealed in different Improved travel facilitated the growth of
areas, such as reducing barriers to globalization, as people moved for a
international better job or a better life. Migrants also
trades and reducing restrictions to fled from danger or oppression. People
movements of capital and investments. A can pack up all their belongings and have
greater number of goods can be them shipped anywhere in the world.
exchanged, and production methods can Planes are faster, frequent, and, often,
be improved. more affordable.

Here are some examples: Food is another factor of globalization.

Filipino or Korean food, for example, is
● Multinational corporations operate certainly not only limited to the Philippines
on a global scale, with satellite or Korea. Instead, we can dine on Filipino
offices and branches in numerous and Korean delights in America, all across
locations. This means multinational Europe, and beyond.
companies can stay open virtually
24 hours a day and service 3. Globalization in Technology
customers no matter where they're
located. It's easy to argue that technology is a
● Outsourcing can add to the vehicle to globalization. Especially the use
economic development of a of internet, faster mode of travel by air,
struggling country, bringing land, and water, latest models of
 PHINMA-University of Pangasinan
Arellano St., Dagupan City, 2418
communication tools and medical labor, natural resources to compete for the
equipment, and life-saving drugs. The global market. It is an effort with its own
ability to access mountains of information nation's national labor, capital, and
online has opened countless doors. Here resources by operating in domestic and
are some examples of globalization, international markets. Still, Globalization
brought to us by the gift of technology: is to integrate the economies with
integrity and unity globally to use other
Global news networks, like CNN, nations' labor, capital, and resources to
contribute to the spread of knowledge. reach the best results.
Worldwide news is reported almost
instantly, if not via live broadcast, through Key Differences between
continual updates to online news outlets. Globalization and Internationalization
Globalization is the result, while
Cell phones connect people all over the Internationalization is one of the
world like never before. There are many tools/processes to achieve
platforms through which people can them.
communicate too, including Facebook,
Messenger, WhatsApp, Instagram, 1. Globalization is more with the nations
Snapchat, Twitter, Hangout, etc. and their economies. At the same time,
Internationalization is more related to the
Internet is a significant contributor to local individual, firm, and corporations for
globalization, not only technologically but doing
also in other areas, like the cultural up their businesses.
exchanges of art. Consider how we can 2. Globalization is a process, and
enroll in online educational programs from Internationalization is part of the same.
anywhere globally and access new 3. Significant factors that affect
information on virtually any topic. Globalization are infrastructural and
logistics setup, telecommunications, etc.
Internationalization is related to a In contrast, Internationalization gets
firm's movement overseas, artists affected by cultural tastes
performing overseas, Filipinos working and preferences, local traditions, etc.
4. The prominent example of Globalization
overseas. At the same time,
is the Elimination of Visa Obligations,
Globalization is the rapidly growing
removing
integration of communication, finance,
tariff and non-tariff trade barriers,
culture, and political ideology. liberalizing investment-related obligations,
Although, Internationalization is the etc. In
process that results in Globalization as contrast, inter-nationalization is sourcing,
firm movements could be the cause of producing, or selling materials or
Globalization. delivering
services from one or more countries,
There is a substantial difference setting up branches and subsidiaries in
between Globalization and other
Internationalization. countries, etc.
Internationalization is to perform at the 5. Globalization is an economic process as
international standards with our domestic it aims to integrate the economies.
 PHINMA-University of Pangasinan
Arellano St., Dagupan City, 2418
Internationalization is an improvisation and between nations. Globalization is
process as it will expand the business the greater integration among
across the countries and economies for trade,
nations.
economic, social, and political
7. Organizations like International
benefits. This increased
Monetary Fund (IMF), World Bank, World
interdependence, in the end, will also
Trade
Organization (WTO), etc., observe and eliminate war-related situations, which
work to implement Globalization. At the ultimately leads to harmony among
same time, institutions like the European the nation. Free trade, specialization,
Union (EU), Asia Pacific Economic and global integration mean that
Cooperation (APEC), North Atlantic Free countries are free to trade.
Trade Agreement NAFTA, etc., boosts
Internationalization. Globalization and Liberalization
Globalization and Liberalization are
concepts closely related to one
Liberalization generally refers to
another. Both Globalization and
removing restrictions; usually,
government rules and regulations are Liberalization refer to relaxing social
imposed on social, economic, or political and economic policies that result in
matters. It is a process whereby a state better integration with an economy
lifts restrictions on some private individual and between nations. Globalization is
activities. Liberalization occurs when the greater integration among
something which used to be banned is no countries and economies for trade,
longer prohibited or when government economic, social, and political
regulations are relaxed. Liberalization
benefits.
generally relates to activity within a
certain country as a result of
Globalization is the greater integration
modernization and development. Some
among countries and economies for trade,
countries offer visitor visas upon entry
economic, social, and political benefits.
into the country; many countries are
visa-free. Liberalization is a process of
Westernization, the adoption of the
removing government-imposed
practices and culture of western Europe by
restrictions on the movements between
societies and countries in other parts of
nations to create an "open and borderless"
the world, whether through compulsion or
world economy.
influence. Westernization reached much of
the world as part of the process of
What are Globalization and
colonialism and continues to be a
Liberalization? significant cultural phenomenon as a
Globalization and Liberalization are result of globalization. Westernization
concepts closely related to one began with traders, colonizers, and
another. Both Globalization and missionaries from western Europe who
Liberalization refer to relaxing social believed that their way of life was superior
and economic policies that result in to those of the peoples in the countries to
better integration with an economy which they traveled. The occupied peoples
 PHINMA-University of Pangasinan
Arellano St., Dagupan City, 2418
were required or encouraged to adopt • The main objective of the global
western European business practices, economy is to maximize the market.
languages, alphabets, and attire. They • Investment in the globalization process
were also encouraged to assume western has become a trade, not an investment in
European education systems, literary and the trade.
artistic standards, and to convert to • Due to Globalization, the power to make
Christianity. Many countries had Western decisions is transferred from the national
types of government and military state to the regional alliances.
practices imposed on them. • In the globalization economy, the
management system dominates as a
EFFECTS OF WESTERNIZATION component of
Westernization has greatly affected our production.
traditions, customs, family, and our love • The transaction of money mainly drives
and respect for others. The strong family globalization. Again, the existence of an
ties between Filipino members are individual
eroding. The respect for elders is response to these financial transactions is
diminishing, hence the need for a home seen. Unproductive foreign capital creates
for the aged in the Philippines. Prostitution adverse effects on the global market.
yields so many babies fathered by western • In economic Globalization, there is a
men given for adoption by many process of almost spontaneous lending,
prostitutes working in the Philippines' finance, and
red-light districts. investment throughout the world.
Information beyond the borders of the
1. Economic Globalization national state
The concept of Globalization as a whole is organizes this process.
mainly economic. Globalization has
emerged and developed largely as an
economic concept and system. Economic 2. Political Globalization
Globalization is the financial connection of Political ideology is often referred to as
a country with the global economic one of the characteristics of Globalization.
system. Globalization in the economic field That is, the expression of Globalization
is free economic adoption. This removes also occurs in political ideology. The
the regulatory rules imposed on a transformation of liberalism is called an
country's economic affairs and exposes example of political ideology in the
the domestic economy to the world. process of Globalization. Moreover, the
emergence, development, and expansion
Features of Economic Globalization of Non- Governmental Organizations
Prominent economist Peter Drucker in his (NGOs) as an expression of political
New Realities, discusses the economic Globalization; The role of the national
features of states is to refer to the part of climate
Globalization. They are: change and so on. The expression of
• Due to Globalization, international political Globalization has occurred in
organizations have spread globally to international organizations. All these
make the entire world a mere production organizations exceed the national
and product-service market. boundaries. Extending the edges of the
single state of the international
 PHINMA-University of Pangasinan
Arellano St., Dagupan City, 2418
organization extends to the global sphere most obvious example of military
of many states. There are many and many globalization is the nuclear age and the
international organizations in the present proliferation of weapons of mass
world. Most of these were formed in the destruction.
aftermath of World War II. Notable
examples of this are the United Nations Cultural Globalization is the process of
Organization (UNO), the European cultural globalization and is also
Economic Community (EEC), the World sometimes called
Bank, the International Monetary Fund McDonaldization. Cultural globalization is
(IMF), and the World Trade Organization how a world-class of goods, ideas, and
(WTO), etc. Theoretically, nation-states information is produced in one part of the
can take the initiative in organizing world. As a result, cultural differences
international organizations in a coherent between different races, regions, and
and organized manner without sacrificing individuals are removed. The emergence
their sovereignty. Transnational-state and development of international or
boundaries may force international multinational companies and the
institutions to impose their will on states. emergence of global goods have partly
driven globalization. The revolutionary
3. Financial Globalization growth and expansion of information
Financial Globalization can be linked with technology, the expansion of
the rise of a global financial system with satellite-based communication systems,
international and monetary exchanges. the Internet, the telecommunication
Stock markets, for instance, are a great infrastructure, and various global media
example of the financially connected corporations are highlighting the process
global world since when one stock market of globalization. However, as culture helps
has a decline, it affects other markets globalization, so does obstruction. As the
negatively as well as the economy as a elements or forces of globalization are
whole. enriched by culture, so is resistance.
Hollywood movies are screened
Military globalization is defined as the worldwide, Adidas sports goods are sold
process which embodies the growing around the world. The Coca-Cola market
extensity and intensity of military relations is worldwide. McDonald's has demanded
among the political units of the world the world's fast-food market; such
system. It reflects both the expanding products are many and varied worldwide.
network of worldwide military ties and But all these international brands have to
relations, as well as the impact of key do with the dignity of local culture and the
military technological innovations (from touch of social customs.
steamships to satellites), which over time,
have reconstituted the world into a single Environmental Globalization refers to
geostrategic space. internationally coordinated practices and
regulations in the form of international
Military globalization implies firmer treaties regarding environmental
integration of armed forces around the protection. The growth of globalization
world into the global military system. It is and its impact on the global environment
characterized by extensive as well as is an essential concern to the world.
intensive networks of military force. The According to some environmentalists,
 PHINMA-University of Pangasinan
Arellano St., Dagupan City, 2418
there is no doubt that the tide of Transnational criminals have been one
development that has come under the of the biggest beneficiaries of
influence of globalization is polluting the globalization." Globalization facilitates
environment. To them, globalization international trade and increases the
increases our consumption of many difficulty of regulating global trade;
products made through natural resources, traffickers and smugglers have exploited
affecting the ecological cycle very this. This has allowed illicit actors to
severely. launder the proceeds of crime more easily.
Many think that industrialization is part of
globalization, and industrialization has Market integration
been increasing with the help of Market integration refers to how easily
globalization. Due to industrialization, two or more markets can trade with each
harmful chemicals have been thrown into other. Foreign trade helps the Integration
the environment, affecting the of markets because it reduces barriers to
environment dangerously. It can be easier trade and increases fluidity between
to understand with an example. markets. *For example, Facebook buys
out WhatsApp and Instagram.
2nd December in 1984, in India, an
accident occurred at the Union Carbide Reasons for market integration:
pesticide plant in Bhopal (the capital city ● To remove transaction costs
of the Indian state of Madhya Pradesh). ● Foster competition
This plant accidentally released almost 30 ● Provide better signals for optimal
tons of highly toxic gas called methyl generation and consumption decisions.
isocyanate and other poisonous gases. ● Improve the security of supply
The gases were spread throughout its
surrounding town populated with 600 000 Market integration occurs when prices
people. Those gasses affect them very among different locations or related goods
severely; around 15000 people founded follow similar patterns over a long period.
death. Until now, those who directly or Groups of goods often move proportionally
indirectly but alive have given birth to to each other. When this relation is
mentally or physically challenged children. apparent among different markets, it is
said that the markets are integrated.
Criminal globalization poses severe Thus, market integration is an indicator
challenges to national and global security. that explains how much different markets
It includes trans-border crimes, such as are related to each other. A marketer
drug trafficking, money laundering, plays the role of an integrator in the sense
prostitution, alien smuggling, arms that he collects feedback or vital inputs
trafficking, and counterfeiting. Crimes of from other channel members and
globalization, or transnational crimes, are consumers and provides product solutions
crimes that are committed across national to customers by coordinating multiple
borders. Since the fall of the Soviet Union organization functions.
and the collapse of communism in its
neighboring countries, trade has expanded
globally. With it, the crime that so often
accompanies large flows of money.
 PHINMA-University of Pangasinan
Arellano St., Dagupan City, 2418
What is market integration, for trade. Examples: Companies using
example? horizontal Integration: Hp, Compaq,
1. Establish wholesaling facilities by food Facebook, WhatsApp, Google
retailers and set up another plant by a Motorola
milk processor.
2. Facebook buyout of Instagram and 2. Vertical Integration. This occurs
WhatsApp to have a bigger market for when a firm performs more than one
image sharing. activity in the sequence of
the marketing process. Example: San
Types of market integration Miguel Purefoods says “from farm to
1. Horizontal Integration platter goodies”; Apple
2. Vertical Integration: Forward, • It links two or more functions in the
Backward and Balanced Vertical marketing process within a single firm or
Integration under single
3. Conglomeration ownership.
1. Horizontal Integration. • This type of Integration makes it
possible to exercise control over the
This occurs when a firm or agency gains product's quality and quantity from the
control of other firms or agencies beginning of the production process until
performing similar marketing functions at the product is ready for the
the same level in the marketing sequence consumer.
• It reduces the number of mediators in
● In this type of Integration, some the marketing channel. Example Meat
marketing agencies combine to form a industry buys all the functioning plants
union to reduce their effective needed for running this meat industry.
number and actual competition in the 3. Forward Integration. Suppose a firm
market. assumes another function of marketing
● It is advantageous for the members who that is closer to the consumption function.
join the group. In that case, it is a case of forwarding
Integration. Example: wholesaler
Effects of Horizontal Integration considering the role of retailing
● Buying out a competitor in a time-bound 4. Backward Integration. This involves
way to reduce competition. ownership or a combination of sources of
● Gaining a larger share of the market and supply—for example: when a processing
higher profits. firm assumes the function of
● Attaining economies of scale. ● assembling/purchasing the product from
Specializing in the trade. the villages.
5. Balanced vertical Integration The
Advantages of Horizontal Integration third type of vertical Integration combines
1. Lower costs. (2)Higher efficiency. the backward and the forward vertical
(3)Increased differentiation. (4)Increased Integration.
market power. (5)Reduced
competition. (6)Access to new markets. Advantages of Vertical Integration
(7)Economies of scale. (8)Economics of 1. It allows you to invest in highly
scope. (9)International specialized assets.
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Arellano St., Dagupan City, 2418
2. It gives you more control over your • Acquisition of financial leverage
business. • Empire–building urge.
3. It allows for positive differentiation.
4. It requires lower costs of the
transaction. What are the effects of market
5. It offers more cost control. integration?
6. It ensures a high level of certainty Both producers and consumers gained,
when it comes to quality. but welfare gains were inversely related to
7. It provides more competitive the size of the country and positively to
advantages. the level of openness to trade. We infer
that welfare gains from international
Effects of Vertical Integration market integration were equivalent to
• More profits by taking up additional substantial shares of economic growth in
functions the 'long 19th century.
• Risk reduction through improved market
co-ordination
• Improvement in bargaining power and
the prospects of influencing prices
• Lowering costs through achieving
operational efficiency

6. Conglomeration A combination of
agencies or activities not directly related GOOD LUCK
to each other may be termed a
conglomeration when it operates under
unified management.
Examples:
SM Group of Companies, Lucio Tan Group
of Companies, Gokongwei Group of
Companies, PHINMA
Group of Companies, Manuel Villar Group
of Companies

Effects of Conglomeration
• Risk reduction through diversification