LESSON 1 IMPORTANCE OF STUDYING

CONCEPT OF GLOBALIZATION:

GLOBALIZATION - There is a greater demand in business

and industry for people to work with
- The ongoing process of increasing other nations.
interconnectedness, integration, and - There is a greater demand of promoting
interdependence among individuals, the local business and industry to other
businesses, nations, and economies countries.
worldwide. - Creating meaningful harmonious, and
- To put it simply, it is the increase in workable relationship.
interconnectedness worldwide. - To solve global challenges.
- Increasingly interaction of people, - Knowledge of the merits, demerits, and
states, or countries. reasons for globalization will enable the
- The liberalization of countries. students to work as models of
collaborative international teams in the
INDICATORS OF GLOBALIZATION: near future.
Jet engines, internet, e-banking, e-books, e-
bike, LRT, and MRT. EVEN IF YOU WANT TO AVOID
- Utilities that help the spread of GLOBALIZATION MOVEMENT, YOU HAVE
Globalization. NO CHOICE BUT TO COMPETE.

DOES GLOBALIZATION EXISTS? REASONS FOR GLOBALIZATION:

According to Steger… YES AND NO - Rapid shrinking of time and distance
NO = “Globaloney” across the globe.
YES = Economic, Political, and Cultural - Domestic markets are no longer rich.
Processes. - Companies and institutions go global
- ECONOMIC PROCESSES: exchange to [ind political and economic stability.
students, sending of OFWs, Out-of- - To get technological and managerial
country Movies/Series we get to know-how of other countries due to
watch in the Philippines, Banana their advancement.
Trades. - To reduce high transportation costs.
- CULTURAL PROCESSES: cosmetics - To be close to raw materials and to
from Korea, holidays and festivals, markets for their [inished products.
inspiration to other music genres, - The creation of the World Trade
different clothing styles. Organization (WTO) had made it
- POLITICAL PROCESSES: America possible in stimulating increased cross
and Philippines’ friendly border trade.
relationship, WHO/ASEAN/UN,
Foreign/International laws, GLOBALIZATION has been responsible for
Marxist Ideologies. remarkable changes in the 20th Century.
BUT it does not began in that century.
 ADVANTAGES OF GLOBALIZATION: THEORETICAL PARADIGMS OF
1. Economic Growth GLOBALIZATION:
Increased Trade and Investment; Higher 1. World-System Theory – The
economic growth and Job creation expansion of the capitalist system.
- Immanuel Wallerstein, the
2. Access to Resources and Markets principal proponent of this theory
Improves standards of living. tends to view globalization not as a
recent phenomenon but as virtually
3. Improved Technology and synonymous with the birth and
Knowledge Transfer. spread of world capitalism
Innovation Spread, - De[ined by the existence of a
division of labor.
4. Cultural Exchange 2. World Polity Theory – state remains
Diverse Perspectives: Enhance cultural an important component of world
diversity and promote peace and society, but primarily attention goes to
understanding. the global cultural and organization.
- Key element is a general, globally
DISADVANTAGES OF GLOBALIZATION: legitimated model of how to form a
1. Economic Disparities state.
Inequality; a widening gap between the 3. World Culture Theory - world
rich and the poor. culture is indeed new and important,
Job Displacement: Job losses in industries but less homogeneous than world
that cannot compete with international polity.
competition - Globalization is a process of
RELATIVIZATION.
2. Culture Homogenization - Globalization compresses the
Loss of Local Cultures: Spread of global world into a single entity - how to
brands and Western culture can make living together in one global
undermine and erode local cultures and system meaningful or even
traditions possible.
3. Environmental Impact MISCONCEPTIONS:
Resource Exploitation: Increased
1. Globalization equals
industrial activity and trade can lead to Westernization.
over-exploitation of natural resources.
- GLOBALIZATION is a more complex
Pollution: Global transportation and and multifaceted process. It’s not a
industrial activities. one-way imposition but a dynamic
exchange.
2. Globalization is a new
phenomenon.
- The process of globalization has
been ongoing for centuries.
3. Globalization leads to
Homogenization.
- Globalization can also enhance
cultural diversity.
 - GLOCALIZATION – Fusion of global PERIPHERY: lower-class, developing
and local elements. nations. EX: Philippines, Cambodia
4. Globalization is only about - PHILIPPINES IS THE FASTEST
economics. GROWING ECONOMY OUT OF
- Globalization also encompasses MOST DEVELOPING COUNTRIES.
signi[icant social, political, cultural,
and environmental dimensions. STRUCTURES OF GLOBAL ECONOMY:
5. Globalization is inevitable and The framework and arrangements that
irreversible. governs international economic
- Globalization is not an unstoppable interactions.
force driven solely by technological A. International Monetary Fund (IMF)
advancements. - Financial assistance sa mga
- Globalization is shaped by human mahihirap na countries/member
choices and policies. countries.
6. Globalization bene`its everyone B. World Bank
equally. - Umuutang/pang-utang
- Globalization are not automatically - To reduce poverty by lending
or equally shared, leading to money to the governments of its
signi[icant socio-economic poorer members to improve
disparities. economy.
5 INSTITUTIONS:
1. International Bank for
Reconstruction and Development
LESSON 2 (IBRD) – more on development.
THE STRUCTURE OF Original and largest destination of
World Bank. Financing development
GLOBALIZATION projects and programs
2. International Development
ECONOMIC GLOBALIZATION:
Association (IDA) – offers grants
Widespread use of international trade in and low-interests or zero interest
goods, services, capital, technology, and loans to low-income countries.
information. 3. International Finance
Corporation (IFC) – promotes
GLOBAL ECONOMY:
private sector investment. Provides
The international exchange of goods and
investment [inancing and advisory
services that is expressed in monetary services. Finance sa mga sector na
units of money. FREE MOVEMENT. gusto mag-invest sa ibang countries.
WORLD-SYSTEMS (Wallerstein): 4. Multilateral Investment
aligned with Economic Globalization. Guarantee Agency (MIGA) –
provides political risk assurance
CORE: capitalists, upper-class, highly and credit enhancement.
developed, [inished products. EX: US,
5. International Centre for
Japan
Settlement of Investment
SEMI-PERIPHERY: middle-class, also a Disputes (ICSID) – for resolving
capitalist nation. EX: Brazil, India
investment disputes between
foreign investors and host countries.
C. World Trade Organization (WTO) 5. DEMOGRAPHICS – Primary factor
- Resolves trade disputes among 6. NATURAL RESOURCES AND
member countries. ENVIRONMENTAL FACTORS.
- Prevents smuggling / Aims to
promote free and fair trade. • TAIWAN makes the world’s most
D. Regional Trade Arrangements advanced memory chips.
(RTAs) - Home to TSMC (Taiwan
- Aim to facilitate trade and Semiconductor Manufacturing
economic cooperation within a Company) – world’s largest
speci[ic geographic area. contract chip manufacturer.
- Properly aligned agreement. - Taiwan strait is a crucial chipping
E. Multinational Corporations (MNCs) route.
- Operate countries. • RUSSIA-UKRAINE CONFLICT is a
- Establish global supply chains complex geopolitical crisis.
- EX: McDonalds, Coca-Cola - Soviet Era and Independence:
Post-Independence, Ukraine
NEOLIBERALISM sought to establish itself as a
A political and economic philosophy that sovereign state.
emphasizes the ef[iciency of private - Economic Impact: Global
enterprises, free markets, and a limited economic disruptions, both Russia
role for government. Minimal state and Ukraine are major exporters of
intervention. oil, gas, and agricultural products.
In[lation and supply chain
NEOLIBERAL POLICIES emphasizes the challenges.
importance of competition,
entrepreneurship, and global trade as GLOBAL COMPANY – generally referred to
DRIVERS of economic development. as a multinational corporation (MNC).

ECONOMIC IMPACT: Opening of interest Two main types of economic inequality:

in competition. 1. Wealth Inequality – net worth.
POLITICAL IMPACT: Good governance 2. Income Inequality
and policy. Importance of individualism.
SOCIAL IMPACT: Convenience and
Accessibility. Faster Connections.
CULTURAL IMPACT: Erosion and social
collision. Neglects culture because of
multiple options.

FACTORS THAT AFFECT THE GLOBAL

ECONOMY:

1. MACROECONOMIC POLICIES
2. TRADE AND GLOBALIZATION
3. FINANCIAL MARKETS AND
INSTITUTIONS.
4. TECHNOLOGY AND INNOVATIONS
 LESSON 3 multilateral source for Latin America
MARKET INTEGRATION and Caribbean.
9. African Development Bank –
Process of linking separate markets to
African Nations.
create a uni[ied and interconnected
10. Asian Infrastructure Investment
economic system.
Bank (AIIB)
BUSINESS PROCESSING OUTSOURCING
(BPO) – The Philippines has 851 BPO MARKET INTEGRATION mostly bene`its
companies, more than half which are call EUROPEAN NATIONS
centers (429). Call center capital of the - Enhanced Trade and Economic
world. 18 PERCENT OF THE GLOBAL Integration
MARKET SHARE. - Price Transparency and Competition.
- Increased Financial Integration.
1. Horizontal Integration – no - Increased Foreign Direct Investment.
competition. Firm gains control of - Improved Monetary Policy and
other [irms performing similar Stability.
marketing. - Elimination of Exchange Rate
- EX: Citibank under ng Union Bank, Uncertainty.
Showtime under ng GMA
2. Vertical Integration – one company ASIAN INTEGRATION
owns all the operations and products. Established on August 8, 1967
FRANCHISING, there’s competition. – Bangkok, Thailand
- EX: McDonalds – owned by US pero - FOUNDING MEMBERS: Indonesia,
nasa iba’t ibang countries. Malaysia, Philippines, Singapore,
Thailand.
INTERNATIONAL FINANCIAL - Brunei 01071984, Vietnam
INSTITUTIONS: 07281985, Laos, Myanmar 07231997,
1. IMF and Cambodia 04301999 (ADDED
2. World Bank – 187 countries MEMBERS)
3. European Investment Bank (EIB) –
only European Unions (Finland, ASEAN ECONOMIC COMMUNITY 2025:
France, Germany…) - A regional economic integration
4. Islamic Development Bank (IDB) – initiative by ASEAN.
Saudi Arabia, Afghanistan… - AEC blueprint outlines the strategic
5. Asian Development Bank (ADB) – measures and targets for achieving
HQ: Philippines, in Mandaluyong, goals by the year 2025.
Manila. Development. - To establish a highly integrated and
6. European Bank for cohesive economy among ASEAN
Reconstruction and Development member states.
– central west Asia and North Africa.
7. Development Bank of Latin ASEAN SOCIO-CULTURAL COMMUNITY;
America – Peru, Brazil, Chile… - Aims to promote social progress,
8. Inter-American Development cultural development, and human
Bank Group – most important resource capacity-building within
ASEAN.
 5 CORE PRINCIPLES ASEAN SINGLE markets, expansion of trade networks,
MARKET AND PRODUCTION BASE: emergence of multinational
corporations.
1. Free `low of Goods
2. Free `low of Services LAISEZ-FAIRE – free-market economy
3. Free `low of investments NEOLIBERALISM – private proverty-wise
4. Free `low of Capital
5. Free `low of Skilled Labor LESSON 5
CURRENT TRENDS AND
LESSON 4 ISSUES IN
MARKET GLOBALIZATION GLOBALIZATION
Increasing interconnectedness,
integration, and interdependence of CURRENT TRENDS – refer to prevailing
markets worldwide. patterns, behaviors, and directions in
various [ields and sectors.
KEY ASPECTS OF GLOBALIZATION AND ISSUES – signi[icant challenges, problems,
ITS IMPACT ON ECONOMY: and controversies.
1. Increased International Trade 1. Digital Transformation and
2. Boosting Economic Growth Technological Advancements
3. Financial Integration - AI and Automation
4. Technological Advancements - 5G and Connectivity
5. Transnational Corporations 2. Climate change and
- Multinational corporations Environmental Sustainability
(MNCs) have been major drivers of - Green Economy Transition
globalization. Forefront of market - Environmental Regulations
globalization. 3. Global Health and Pandemics
6. Cultural Exchange and - Post-COVID 19 Recovery
Homogenization - Global Health Inequality
7. Income Inequality 4. Economic Disparities and
8. Environmental Impact Inequality.
9. Policy Challenges - Income Inequality
- Access to Opportunities
HISTORICAL CONTEXT AND FACTORS 5. Human Rights and Social Justice.
THAT CONTRIBUTED: - Social Movements
1. Colonialism and Imperialism: - Corporate Social Responsibility
during the 16 to 20th centuries.
th

Exploitation and integration of

colonies intro global markets created
economic interdependencies and
establish foundations for future
trades.
2. Industrial Revolution: began in the
18th century in Britain, and later to
Europe and United States. Growth of