GLOBALIZATION GLOBALIZATION ACCORDING TO

GEWORLD LESSON 1 ECONOMIST

• Increased free trade
GLOBALIZATION • Speed of trade
• In education, it’s a 'global system' of • Formation of global economic
education is emerging, beyond the level of organizations
individual countries. • Setting up of regional economic blocs
• In communication, the ability to send and
receive information all around the World. The 5 Scapes of Globalization
• In engineering, the increasing trend (Arjun Appadurai)
towards internationally integrated markets •Ethnoscape – refers to the global
and global interconnectedness. movement of people.
•Mediascape – flow of culture.
RELEVANCE TO THIS COURSE •Technoscape – circulation of mechanical
• A cure to parochialism. goods and software.
• It can teach you more about yourself. •Financescape – global circulation of
•You need to study the world because you money.
will be interacting with it. •Ideoscape – realm where political ideas
• The phenomenon of globalization occurs move around.
subjectively

GLOBALIZATION
• primarily an “economic process.”
• usually refers to “the integration of the
national markets to a wider global market
signified by the increased free trade.”

Manfred Steger
• an expansion and intensification of social
relations and consciousness across world-
time and world-space.
• He differentiated “globalization” with
the term “globalism.”

Intensification and Acceleration of Social

Exchanges and Activities
• From snail mail to Facebook
• Live television broadcast
• Increased travel (cheap flights)
KEY CONCEPT OF GLOBALIZATION Rapid interconnection worldwide that links
Lesson 2 people
▪ local
GLOBALIZATION ▪ national
• CUTURELA (2012) ▪ regional context.
- Globalization is to designate an
overview of the human experience in This interconnectedness is created because of
education. the ff:
▪ social
• AFTER COLD WAR ▪ economic relationships
- an interdependent world when it ▪ networks which are relevant in the
comes to its economical and informational global interactions.
dimensions.
GLOBALIZATION
• WEBSTER • multidimensional set of social
- development of an increasingly processes that create, multiply, stretch, and
integrated global economy marked by free intensify worldwide social interdependencies
trade, free flow of capital, and the tapping of and exchanges.
cheaper foreign labor markets. • a growing awareness of deepening
connections between the local and the distant.
• ROLAND ROBERTSON (1992)
- the compression of the world and the • INTERNATIONAL MONETARY
intensification of the perception of the world FUND
as a whole. - offers extensive opportunities for
truly worldwide development, but it is not
• MARTIN ALBROW & progressing evenly.
ELIZABETH KING (1990)
- all those processes by which the • DURING 1980’s
people of the world are incorporated into a - advances in modern technologies
single world society (borderless community) that have made international transactions, in
both trade and finances, convenient,
• ANTHONY GIDDENS (1991) accessible, and easy.
- the intensification of worldwide
social relations which link distant localities in • IMF (2000)
such a way that local happenings are shaped - extension beyond national borders
by events occurring many miles away and of the same market forces that have operated
vice-versa. for centuries at all levels of human economic
activity.
• STEGER (2005)
- to a set of complex, social processes
that are changing out current social condition
derived from the modern independence of
nation-states.
 • WILL HUTTON & ANTHONY HIGH FREQUENCY TRADING
GIDDENS (AS CITED BY - a process by which computers can
CUTURELA, 2009) execute millions of stock purchases and sales
- interplay of extraordinary technological among different cities in a matter of seconds.
innovation mixed with influence of the world
that gives today’s changing its complexity. INTERNATIONAL TRADING
SYSTEMS
5 CORE CLAIMS OF MARKET
GLOBALISM SILK ROAD
1. Globalization is about the • oldest known international trade
liberalization and global integration of route.
market. • a network of pathways in the ancient
2. Globalization is inevitable and world that spanned from China to what is
irreversible. now the Middle East and Europe
3. Nobody is in charge of
globalization. Dennis O. Flynn & Arturo Giraldez
4. Globalization benefits everyone. • historians who traced the age of
5. Globalization furthers the spread of globalization.
democracy in the world. • they traced this back to 1571 with
the establishment of the Galleon trade that
connected Manila in the Philippines and
THE GLOBALIZATION OF WORLD Acapulco in Mexico
ECONOMICS
Lesson 3 Galleon Trade
• part of the age of mercantilism
GLOBAL ECONOMY
• also known as “world economy” Mercantilism
• international exchange of goods and • system of global trade with multiple
services that is expressed in monetary units of restrictions
money.
• free movement of goods, services, Monetary Reserves
capital, technology and information • selling more goods as a mean to
• historical process representing the boost their country’s income
result of human innovation and technological
progress
• characterized by the increasing A more open trade system emerged
integration of economies around the world in 1867. The countries thus established a
through the movement of goods, services and common basis for currency prices and a fixed
capital across the borders exchange rate system – all based on the value
of GOLD
GREAT DEPRESSION John Maynard Keynes
• started during the 1920’s and - “Economic crisis occur not when a
extended up to the 1930’s. country does not have enough money, but
• worst and longest recession ever when money is not being spent, and thereby
experienced by the Western World. not moving.”
• shows the important roles that
money, banks and the stock market play in THE BRETTON WOODS SYSTEM
our economy. 1. International Bank for Reconstruction
and Development (IBRD) or World Bank
Barry Eichengreen • responsible for funding post-war
- argues that the recovery of the reconstruction projects.
United States really began when, having • it was critical institution at that time.
abandoned the gold standard, the US
government was able to free up money to 2. International Monetary Fund (IMF)
spend on reviving the economy. • global lender of last resort to prevent
individual countries from spiraling into credit
FIAT CURRENCIES crisis.
• currencies that are not backed by • if economic growth slowed down
precious metals and whose value is because there was not enough money to
determined by their cost relative to other simulate the economy, the IMF would step in.
currencies
• this system allows government to GENERAL AGREEMENT ON TARIFFS
freely and actively manage their economies AND TRADE (GATT)
by increasing or decreasing the amount of - to reduce tariffs and other
money in circulation as they see fit. hindrances to free trade.
NEOLIBERALISM AND ITS Friedrich Hayek & Milton Friedman
DISCONTENTS • argued that the government’s
• government poured money into their practice of pouring money into their
economies, allowing people to purchase more economies had cause inflation
goods by increasing demands for these • Increasing demand for goods
products without increasing supply.
• As demand increased, so did the
price of these goods. WASHINGTON CONSENSUS
• Western and some Asian economies • dominated global economic policies
like Japan accepted the rise in prices because from 1980-2000
it was accompanied by general economic • its advocates pushed for minimal
growth and reduced unemployment. government spending to reduce government
• As price increased, companies debt
would earn more and would have money to • it includes privatization of
hire workers. government-controlled services like water,
power, communications and transport
Early 1970s (The start of ending Bretton believing that the free market can produce the
Wood System). best results
• prices of oil rose sharply as a result
of the Organization of The Arab Petroleum Post-communist Russia
Exporting Countries (OAPEC). ▪ After communism had collapsed in
• imposition of an embargo, a the 1990s, the IMF called for the immediate
government order that limits trade, in privatization of all government industries
response to the decision of the United States ▪ Only individuals and groups who
and other countries. had accumulated wealth under the previous
• the ‘Oil Embargo’ affected the communist order had the money to purchase
Western economies that were reliant on oil these industries
• stock market crashed in 1973-1974 ▪ In some cases, the economic elite
after the United States stopped linking the relied on easy access to government funds to
dollar to gold which effectively take over the industries
▪ This practice has entrenched an
Stagflation oligarchy that still dominates the Russian
– persistent inflation combined with economy to this very day.
stagnant consumer demand and relatively
high unemployment

Stagnation
– not active, changing or progressing
consumer demand

Inflation
– a continual increase in the price of
goods and services