Introduction to Globalization

Contemporary World
✔ examining the multifaceted phenomenon of globalization
✔ considering the economic, social, political, technological, and other transformations that have created an increasing
awareness of the interconnectedness of people and places around the globe
Globalization
✔ integration of goods, services, and culture among the nations of the world
✔ experienced since the days of European colonization
✔ innovations and advances in telecommunication and transportation technologies accelerated globalization
✔ The Internet enabled all nations to become next-door neighbors

The Three Eras of Globalization

1. Globalization 1.0
✔ took place from 1429 until about 1800
✔ It has been centered around different countries.
✔ focused on how much horsepower, wind power, and steam power a country had and how creatively they have been
deployed

2. Globalization 2.0
✔ took place from 1800 until about 2000
✔ It has been interrupted by only two World Wars.
✔ Multinational companies became its dynamic force and driving change

3. Globalization 3.0
✔ convergence of computers, fiber-optic internet connections, and software has created a “flat-world platform”
✔ This is the newfound power of the individuals to collaborate and to compete globally provided by the internet

Roles of Information Technology in Globalization

1. Information is readily available.
2. Information is readily accessible via electronic transactions which made businesses competitively edged and improves
productivity.
3. Storage of large amounts of information came to light.
4. Internet communication from a large distance in any format (text, video, audio, etc.) at a lower or no cost at all

Advantages gained by Global Firms

1. The new era of globalization enabled businesses to become international.
2. The ability to locate expertise and labor around the world.
3. The ability to operate 24 hours a day which makes a larger marker for their products.

Challenges faced by Global Firms

1. Labor laws and regulations
2. Legal restrictions
3. Infrastructure differences
4. Language, customs, and preferences
5. International differences
6. Cultural differences
 Global Economic Structures (The Global Economy)
Economic Globalization
- it refers to the increasing interdependence of world economies as a result of the growing scale of cross-border trade of
commodities and services, the flow of international capital, and the wide and rapid spread of technologies.
(Gao, 2000).
-It is one of the three main processes of “generic globalization”, with the two others, political globalization and cultural
globalization.

According to Flynn and Giraldez (1995), economic globalization emerged with the founding of manila in 1571.

Attributes of the Global Economy

1. Global communication systems 4. Abundance of global goods and services
2. Transportation systems 5. Economic disparities
3. Global agreements that promote free trade

THE GLOBAL ECONOMIC SYSTEM

Structural similarities: Then and Now
a. Large-scale flows of capital Global economic specialization
b. Emphasis on free trade
c. Large-scale immigration

Problems created: Then and Now

a. The poor are subjugated by the operations of the global economy.
b. Certain industries and social classes lose out
c. The poor tend to suffer most when forced to pay debts.
d. Not all parts of the world gain equally

THE BRETTON WOODS SYSTEM

-A set of unified rules and policies that brought the framework necessary to determine fixed international currency
exchange rates.
- Fear of the occurrence of the Great Depression
-Fear of a resurrection of barriers to trade and the free flow of money Concern for financial stability
- A set of unified rules and policies that brought the framework necessary to determine fixed international currency
exchange rates
July, 1944- Bretton woods conference at Mount Washington Hotel Bretton Woods, New Hampshire.

5 KEY ELEMENTS OF BWS

1. Each participating state would establish a “par value” for its currency expressed in terms of gold or terms of the gold
value of the US dollar as of July 1994.
2. Each country would agree to exchange its currency for those of those other countries at the established exchange rates,
plus or minus a one-percent margin.
3. The International Monetary Fund (IMF) was created to establish, stabilize, and oversee exchange rates.
4. Member states agreed to eliminate all restrictions on the use of their currency for international trade.
5. The entire system was based on the US dollar

Economic Organizations Created by BWS

1. IMF (International Momentary Fund)- it deals with the exchange rates, balance of payments.
2. WB (World Bank)- provide funds to government
3. GATT (General Agreement on Tariffs and Trade)- system for the liberalization of trade.
4. WTO (World Trade Organization)- focus on trade places at the heart of economic globalization.
The End of BWS
-On August 15, 1971, President Richard Nixon took the US off the gold standard, resulting in a devaluation of the dollar
and the end of the standard by which the currencies of other nations operated.

OTHER ECONOMIC ORGANIZATIONS

1. Organization for Economic Cooperation and Development (OECD)
2. European Union (EU)
3. Trans-Pacific Partnership (TPP)
4. Organization of Petroleum Exporting Countries (OPEC)
5. Brazil, Russia, India, China, & South Africa (BRICS)

THE MULTINATIONAL CORPORATION (MNC)

✔It is a major player in economic globalization.
✔While transnational corporations (TNCs) involve operations in more than one country, MNCs operate in more than two
countries.

GLOBAL DEMOGRAPHY
Population
- Population and Ecology are closely alike. The population’s growth can strain the environment, depleting its resources
and threatening human and animal life.

Global Demography
- refers to the study of human populations and the process through which populations change concerning the environment,
geography, and climate.
- age, race, marital status, gender, socioeconomic status, religion.

Demographers
✓ seek to know the levels and trends in population size and its component
✓ They search for explanations of demographic change and their implication for society.
✓ They use census birth and death records, surveys, visa records, school registration, and even motor vehicles.

THE TOOLS OF DEMOGRAPHY

1. Count- absolute number of a population or any demographic event occurring in a specified area in a specified period.
Ex: 1, 200, 500 live births occurred in Japan in 1997

2. Rate- tells how common it is for a given event to occur. Most rates are expressed per 1,000 population.
Ex: In 1997 in Korea, there were 27 births per 1000 population.

3. Ratio- relation of one population subgroup to the total population or another subgroup, that in one subgroup divided by
another.
Ex: The sex ratio in Peru in 1995 was 103 males per 100 females

4. Proportion- relation of population subgroup to the entire population, that is, a population subgroup divided by the
entire population.
Ex: The proportion of Malaysia’s population classified as urban was .57 or 57%
 Strains of the Rise of the Global Population vis-à-vis COVID 19
The Rise of the Global Population is alarming. WHY?
reason WHY
1. Resources are decreasing.
2. Land masses are being filled up by infrastructures such as houses.
3. The economy of overpopulated countries will fall. There will be a rise of illiterate people due to poverty.
4. The elderly population will rise.

recent reason WHY

*Infectious diseases start to spread from point A to point B.
a. We wouldn’t know how deadly this virus is.
b. number of death rates
c. spread of infection rates

GLOBAL MEDIA CULTURES

1. Global Media- corporation or entities globally engaged in media production and/or distribution
2. Global Integration- process of product standardization and technology development centralization.
example: global products, marketed internationally, same brand name features and specifications across countries

remember: Globalization cannot occur without media.

FIVE STAGES OF DEVELOPMENT MEDIA

1. Oral Communication
✓Language allowed mankind to communicate and share information.
✓Language is the most important tool for exploring the world and different cultures.
✓Language helped people move and settle down

2. Script
✓allowed mankind to communicate over a larger space
✓allowed permanent codification of economic, cultural, technological, social, and political practices

3. Printing Press
✓allowed mankind to communicate over a larger space
✓allowed permanent codification of economic, cultural, technological, social, and political practices

4. Electronic Media
✓It includes the internet, telephone, radio, film, and television.

5. Digital Media
✓It allows the advertisement of products and online business transactions.

CULTURE
✓ The unified style of human knowledge, beliefs, and behavior, from which people learn, and the ability to communicate
knowledge to the next generations.

1. Cultural Differentialism- it views cultural differences as immutable.

2. Cultural Convergence- it suggests that globalization engenders a growing sameness of culture.
3. Cultural Hybridity- it suggests that globalization creates an increasing and ongoing mixing of cultures