THE STRUCTURE OF GLOBALIZATION

THE STRUCTURE OF GLOBALIZATION

Intended Learning Outcomes:
• The Global
Economy • Define the following concepts such as economic
globalization; market integration; modern world
• Market Integration system; and contemporary global governance
• The Global • Explain the effects of globalization on governments
Interstate System and differentiate internationalism and globalism

• Contemporary • Explain the roles and functions of the United

Nations; challenges of global governance in the
Global
twenty-first century; and the relevance of the state
Governance amid globalization
• Global economy or economic
globalization refers to the increasing
interdependence of world economies as a
result of the growing scale of cross-border
trade of commodities and services, flow of
international capital, and wide and rapid
spread of technologies (Shangquan, 2000).
• Global economy or World economy refers
to the international exchange of goods and
services through the use of monetary units of
money
• Global economy means the free movement of
goods, capital, services, technology, and
information
• Global economy or economic globalization is
concerned on the globalization of production,
finance, markets, technology, organizational
regimes, institutions, corporations, and labor
 Globalization of Organizational Regimes

Globalization of Production Globalization of Finance

Globalization of Corporation Globalization of Markets

Globalization of Labor
Globalization of Technology
 • Globalization of Production refers to
the sourcing of goods and services
from location around the globe to take
advantage of national differences in
the cost and quality of factors of
production like land, labor and capita
Globalization • Outsource - obtain (goods or a
of Labor
service) from an outside or foreign
supplier, especially in place of an
internal source
• Business Process Outsourcings or
BPOs (Call Center Agencies)
 Increase job
opportunities

Pressure firms to Upgrade education

correct labor Effect of system and leads
abuses to more training
Globalization
on Labor
Conditions

Increase labor Increase labor

productivity standard
 • Globalization of Technology refers to the global
exploitation of technologies through the patents
(a government authority or license conferring
a right or title for a set period, especially the sole
right to exclude others from making, using, or
selling an invention) and licenses

• The global sourcing of research and

development (R&D) through alliances and joint
ventures with foreign companies or universities
through the implication of technologies

• The global production of research and

Digital World development through overseas subsidiaries.
• Financial Globalization refers to:
• The liberation of trade in financial
assets
• It is the flow of capital and
corporate investments between
various countries
• World allocation of money leading
to exchange of services and goods
• International Monetary Funds (IMF)
• World Bank
• Globalization of Corporation refers to a company or group of people
authorized to act as a single entity and recognized as such law that
operates globally or internationally
• Global corporation refers to a company or corporation that operates
in more than one country which has significant investments and
facilities in multiple countries but lack dominant headquarters
• Global business (as mentioned by Michael Porter) refers to
business that maintains a strong headquarters in one country, but
has investments in multiple foreign location.
• International company is one that has headquarters likewise it does
business overseas and might have a large presence in multiple
areas.
• Multinational company/ corporation (Coca Cola/ Pepsi/ Samsung/ Apple/ Nestle/ Lacoste/
Penguins/ Guess/ Nike/ Gap)
 Globalization of Markets

• Globalization of markets refers to

the process of integrating and
merging of the distinct markets into
a single market
• This involves the identification of
some common norms, value, taste,
preference and convenience and
slowly enables the cultural shift
towards the use of common
product or service.
Globalization
of
Markets
 Broader access to wider variety of
products and services than
neighborhood offers

Greater vendor diversity leads to

better buying opportunities lower
Impact of prices; eg. Comparison shopping
via internet
Globalization
on Lost allegiance to domestic
producers
Consumers
More volatile labor market with
stronger competition from global
labor supply
 INTERNATIONAL FINANCIAL INSTITUTIONS
• An international financial institution (IFI) is a financial institution that has
been established (or chartered) by more than one country, and hence is
subject to international law. Its owners or shareholders are generally
national governments, although other international institutions and other
organizations occasionally figure as shareholders. The most prominent IFIs
are creations of multiple nations, although some bilateral financial
institutions (created by two countries) exist and are technically IFIs. The best
known IFIs were established after World War II to assist in the
reconstruction of Europe and provide mechanisms for international
cooperation in managing the global financial system.
 They are chartered by more than one country and they are subjects to
international law
International Financial
Institutions (IFIs)
The owners or shareholders are generally national governments

The first IFIs are established after the WWII to assist in the reconstruction
of Europe and to provide mechanism for international cooperation in
managing the global financial system

European Investment Bank

 Global in Scope World Bank Group

African Development
Bank

Multilateral
Asian Development
Development Bank Regional
INTERNATIONAL Banks (MDBs) Development Banks
FINANCIAL
INSTITUTIONS (IFIs)
Inter-American
International Development Bank
Monetary Bank
(IMF) European Bank for
Reconstruction and
Development
 Founded in 1944, the International Bank
for Reconstruction and Development—
soon called the World Bank—has
expanded to a closely associated group
of five development institutions.
Originally, its loans helped rebuild
countries devastated by World War II

World Bank, in full World Bank Group, international organization affiliated with the United Nations (UN)
and designed to finance projects that enhance the economic development of member states.
Headquartered in Washington, D.C., the bank is the largest source of financial assistance to developing
countries. It also provides technical assistance and policy advice and supervises—on behalf of
international creditors—the implementation of free-market reforms. Together with the International
Monetary Fund (IMF) and the World Trade Organization, it plays a central role in overseeing economic
policy and reforming public institutions in developing countries and defining the global macroeconomic
agenda.
 International Monetary Fund (IMF), United
Nations (UN) specialized agency, founded
at the Bretton Woods Conference in 1944
to secure international monetary
cooperation, to stabilize currency
exchange rates, and to expand
international liquidity (access to hard
currencies).

The IMF was established in 1944 in the aftermath of the Great Depression of the
1930s. 44 founding member countries sought to build a framework for international
economic cooperation. Today, its membership embraces 190 countries, with staff
drawn from 150 nations.

The International Monetary Fund (IMF) works to achieve sustainable growth and
prosperity for all of its 190 member countries. It does so by supporting economic
policies that promote financial stability and monetary cooperation, which are
essential to increase productivity, job creation, and economic well-being. The IMF
is governed by and accountable to its member countries.
 HOW DOES THE IMF WORK?

• The IMF fosters international financial stability by:

Monitoring economic and

financial developments
and advising countries.

Policy Advise
 Loans and other
financial aid to
member countries.

FINANCIAL ASSISTANCE
 Technical assistance
and training to help
governments to
implement sound
economic policies.

CAPACITY DEVELOPMENT
Market Integration refers to:
• Prices among different location or related goods
follow the same patterns over a long period of
time
• Group of prices that often moves proportionally
to each other and relation is very clear among
different markets
• Thus, it can be concluded that market integration
is an indicator that explains how much different
markets are related to each others

 A situation in which separate markets for the

same product become one single market.
• Market integration occurs when prices among different locations or
related goods follow similar patterns over a long period of time.
Groups of goods often move proportionally to each other and when
this relation is very clear among different markets it is said that the
markets are integrated.

• Simply put, market integration is a situation when products of one

market match up/catch up to the prices of another market of
similar products.

• Basically, market integration occurs when similar or related

products/services have similar prices in different locations due to
government policy or other factors i.e. Free trade agreements, No
import Taxes for a long period of time.
Brief Historical
Background of • Between 1882 and 1936 – labor market
Global Market integration occurred in the area of Asia
Integration in extending from South India to Southeastern
the 20th
China and encompassing the three
Century
Southeast Asian countries of Burma, Malaya,
and Thailand
• Late 19th century – mass migration of Indians
and Chinese to Southeast Asia gave rise to
both integrated Asian labor market and
period of real wages convergence (divergent
trends in unskilled real wages)
Brief Historical
Background of • 1880s – steamships had largely replaced sailing
Global Market vessels for transport within Asia as well as to
Integration in Western markets (shipping fares had begun to fall)
the 20th
Century
• 1880s – mass migration of Indian (Mandras, India),
and Chinese workers (provinces of Guandong, Fukien,
and Southeast Asia)
• Burma, Malaya, and Thailand are the chief
immigrant-receiving countries in Southeast Asia
• Late 19th century (early 20th century) – global
migration movement/ European immigration.
 STATE
• Body of people politically organized under a
government within a definite territory.
• A nation or territory considered as an organized
political community under one government
• Organization of political positions and
the structure of political relation in
Global Interstate • society.
System• World
• A community of persons, more or less
numerous, permanently occupying a definite
portion of territory, independent of external
control, and possessing an organized
government to which the great body of
inhabitants render habitual obedience.
 WORLD-SYSTEM
• It refers to existence of the division of labor
World System
• It deals with inter-regional and transnational division of labor, which divides
the world into:
• World System Theory (World Systems Analysis/ World
 Core countries Systems Perspectives – is a multidisciplinary, macro-
scale approach to the world history and social change
 Semi-periphery countries which emphasizes the world-system as the primary unit
 Periphery countries of social analysis

• Modern world-system has a multi-state political

structure (interstate system). Thus, the division of labor
are considered international/ global division of labor

• GLOBAL INTERSTATE SYSTEM – means:

 Multi-state political structure and
 the international or global division of labor of the core, semi-periphery, and periphery countries
WORLD SYSTEMS THEORY DEFINITION
• World systems theory is a sociological and economic
theory proposed in 1974 by sociologist Immanuel
Wallerstein in a paper called The Rise and Future
Demise of the World Capitalist System: Concepts for
Comparative Analysis. World systems theory is a way
of categorizing the countries in our world based on
their economic power. Countries are categorized as
either core, peripheral, semi-peripheral, or external.
 WALLERSTEIN'S WORLD SYSTEMS THEORY
CHARACTERISTICS

• \Dependency theory suggests that core countries, which are rich, take
resources from peripheral countries, which are poor. The rich continue to
increase their wealth through this relationship, while the poor remain
impoverished. World systems theory took the idea of core and peripheral
countries and expanded it as follows:
 Core countries are wealthy, militarily strong, and hold significant social
power and colonial power.
 Peripheral countries are poor, have exploitable resources, and do not
possess great social stability or government.
 Semi-peripheral countries have some of the characteristics of core and
peripheral countries.
 External areas are countries or regions that fall outside of the scope of
world systems theory.
 Global Interstate
System
World System Periphery Countries
• SEMI-PERIPHERY/ PERIPHERY Semi-Periphery
COUNTRIES
Countries
 Low Skills
 Labor Intensive Production Core
 Extraction of Raw Materials Countries
Core Countries
• CORE COUNTRIES
 Higher Skills
 Capital Intensive Production
GLOBAL GOVERNANCE

• The term world governance is broadly used to designate all

regulations intended for organization and centralization of
human societies on a global scale. The Forum for a new World
Governance defines world governance simply as "collective
management of the planet". Woodrow Wilson's League of
Nations, the predecessor of the United Nations, was one of the
first organizations to promote global governance.
• Global governance refers to institutions that coordinate
the behavior of transnational actors, facilitate
cooperation, resolve disputes, and alleviate collective
action problems. Global governance broadly entails
making, monitoring, and enforcing rules. Within global
governance, a variety of types of actors – not just
states – exercise power. Governance is thus broader
than government (Lake, David, 2021 )
•
• Global governance began in the mid-19th century. It became particularly
prominent in the aftermath of World War I, and more so after the end of
World War II. Since World War II, the number of international organizations
has increased substantially. The number of actors (whether they be states,
non-governmental organizations, firms, and epistemic communities) who are
involved in governance relationships has also increased substantially (Barnett,
Michael N.; Pevehouse, Jon C.W.; Raustiala, Kal (2021), Pevehouse, Jon C. W.;
Raustiala, Kal; Barnett, Michael N. (eds.), "Introduction", Global Governance
in a World of Change, Cambridge University Press,)
Contemporary Global
• World Governance
Governance Movement towards political
cooperation among
transnational actors, aimed at
negotiating responses to
problems that affect more than
one state or region

 These have limited

• Institution of Global Governance
or demarcated United Nations
power to enforce
compliance
International Criminal Court
World Bank
 • The United Nations is an international
organization founded in 1945 after the
Second World War by 51 countries committed
to maintaining international peace and
security, developing friendly relations among
nations and promoting social progress, better
Institution of Global Governance living standards and human rights.
• The predecessor of the United Nations was the
League of Nations, established in 1919, after
World War I, under the Treaty of Versailles
United Nations "to promote international cooperation and to
achieve peace and security."
• As of 20 April 1946, the League of Nations
ceased to exist, having handed over all of its
assets to the United Nations, and having
granted the new UN Secretariat full control of
its Library and archives
 • The work of the United
Nations covers five main
United Nations areas:
• Maintain International Peace and
Security.
• Protect Human Rights.
• Deliver Humanitarian Aid.
Institution of Global Governance • Support Sustainable Development and
Climate Action.
• Uphold International Law
ISSUES & CAMPAIGNS

•Global Issues
•Observances
•Sustainable Development Goals
•Climate Change
•UN and Sustainability
•Action for Peacekeeping (A4P)
•Global Ceasefire
•Global Crisis Response Group
ISSUES & CAMPAIGNS
 SG's Call to Action for Human Rights
 Hate Speech
 Rule of Law
 Refugees and Migrants
 Secretary-General's Action Agenda on Internal Displacement
 Action to Counter Terrorism
 Victims of Terrorism
 Children and Armed Conflict
 Violence Against Children (SRSG)
 Sexual Violence in Conflict
• Spotlight Initiative
 Issues & campaigns

•• Preventing Sexual Exploitation and Abuse

•• Prevention of Genocide and the Responsibility to Protect
•• The Rwanda Genocide
•• The Holocaust
•• The Question of Palestine
•• The Transatlantic Slave Trade
•• Decolonization
•• Messengers of Peace
ISSUES & CAMPAIGNS

• Countering Disinformaiton
• • UN75: 2020 and Beyond
• • Women Rise for All
• • Disability Inclusion Strategy
• • Secretary-General’s Data Strategy
• • Digital Financing Task Force
• • Stop the Red Sea Catastrophe
• • Black Sea Grain Initiative Joint Coordination Centre
• • Türkiye-Syria Earthquake Response (Donate)
 OFFICES OF THE UN
 New York
 Geneva
 Nairobi
 Vienna
 UN System Directory
 UN System Chart
 Global Leadership
• UN Information Centres
 Challenges of Global • Climate Change, Poverty, Violent
Government in the 21st Conflict, Intolerance, and
Century Extremism present direct threats
to the unity and well-being of the
International or Global Community
• Attacks on cultural rights and
cultural heritage, particularly in
Syria, Iraq, and Mali threaten the
Inter-Cultural Tolerance
(Irina Bokova, Director General of UNESCO, 2016)
 • First, openness of mind and out-of-box thinking is crucial.
3 Points to Address the New ideas must be transformed into norms (Efforts to
Challenges of Global teach people about the history of the Holocaust/ program
Government in the 21st Century promoting internet literacy/ help to instill common values
(Irina Bokova, Director General to the youth/ create environments that are conducive to
of UNESCO, 2016) respectful dialogue)
• Second, the international community must build resilient
societies (Fighting exclusion and fostering inclusion/
Participation of women in all sectors)
• Third, new thinking about peacebuilding. (The world
urgently needs legitimate and effective peace efforts,
before, during, and after conflicts. Preventive measures
are key and must involve the soft power embodied by
UNESCO’s educational and inter-cultural program)
Globalization
VS
Internalization
 Globalization refers to global  Internalization refers to the
economic integration of increasing importance of
many and formerly national international trade,
economies into one global international relations,
economy – mainly by free treaties, alliances and others
trade and free capital  International means between
mobility. or among nation
 Globalization refers to the
VS  Globalism refers to the
interconnectedness of operation or planning of
people and business across economic and foreign policy
the world that eventually lead on a global basis
to global, cultural, political,
and economic integration
 Global means worldwide
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