COURSE CODE: GE 103

COURSE NAME: The

Contemporary World
COURSE MODULE: 1

AUTHOR

Dr.Leoncio P. Olobia
Note: The contents of this module are for reading only. Activities will be conducted during the
virtual class.

Olobia, L. Contemporary World. Leyte Normal University.

Module 1
Globalization
Overview

In this module, you are going to learn about globalization, its meaning, theories and
perspectives. Globalization is the highlight of the study of Contemporary World which explains
the dynamics of interconnectedness among nations through various interaction and integration
among people, companies and governments of different nations, a process driven by
international trade and investment and added information technology. This process has effects
on the environment, on culture, on political systems, on economic development and prosperity,
and on human physical well-being in societies around the world (globalization101.org).

Finally, Macroeconomics, the study that focuses on economic aggregates of a nation is related
to the study of globalization. Concepts like Gross National Product (GNP), international trade
and finance, foreign exchange rates are only some of the topics under Microeconomics that are
relevant to the study of globalization.

Objectives

At the end of this module, you will be able to

 Define globalization, global city and discuss their characteristics

 Explain the different metaphors, theories and perspectives of globalization and
regionalism
 Analyze the negative effects of globalization and its impact on regionalism and world
religions.

IMPORTANT DIRECTIONS: ANSWER 10 QUESTIONS ASKED THROUGHOUT THE MODULE AND

SUBMIT IN ONE EMAIL ONLY. USE MY INSTITUTIONAL EMAIL: [email protected].

What is globalization?

Globalization is the process by which ideas, knowledge, information, goods and services spread
around the world. In business, the term is used in an economic context to describe integrated
economies marked by free trade, the free flow of capital among countries and easy access to
foreign resources, including labor markets, to maximize returns and benefit for the common
good.

Globalization, or globalisation as it is known in some parts of the world, is driven by the

convergence of cultural and economic systems. This convergence promotes -- and in some cases
necessitates -- increased interaction, integration and interdependence among nations. The more
countries and regions of the world become intertwined politically, culturally and economically,
the more globalized the world becomes.
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How globalization works

In a globalized economy, countries specialize in the products and services they have a
competitive advantage in. This generally means what they can produce and provide most
efficiently, with the least amount of resources, at a lower cost than competing nations. If all
countries are specializing in what they do best, production should be more efficient worldwide,
prices should be lower, economic growth widespread and all countries should benefit -- in
theory.
Policies that promote free trade, open borders and international cooperation all drive economic
globalization. They enable businesses to access lower priced raw materials and parts, take
advantage of lower cost labor markets and access larger and growing markets around the world
in which to sell their goods and services.
Money, products, materials, information and people flow more swiftly across national
boundaries today than ever. Advances in technology have enabled and accelerated this flow and
the resulting international interactions and dependencies. These technological advances have
been especially pronounced in transportation and telecommunications.
Among the recent technological changes that have played a role in globalization are the
following:
Internet and internet communication. The internet has increased the sharing and flow of
information and knowledge, access to ideas and exchange of culture among people of different
countries. It has contributed to closing the digital divide between more and less advanced
countries.
Communication technology. The introduction of 4G and 5G technologies has dramatically
increased the speed and responsiveness of mobile and wireless networks.
Increased speed and bandwidth are among the benefits of 5G technology.

IoT and AI. These technologies are enabling the tracking of assets in transit and as they move
across borders, making cross-border product management more efficient.
Blockchain. This technology is enabling the development of decentralized databases and storage
that support the tracking of materials in the supply chain. Blockchain facilitates the secure access
to data required in industries such as healthcare and banking. For example, blockchain provides a
transparent ledger that centrally records and vets transactions in a way that prevents corruption
and breaches.

Questions:

What is the meaning of globalization as convergence?

2. What are the benefits of specialization?
10 benefits of blockchain technology

Transportation. Advances in air and fast rail technology have facilitated the movement of people
and products. And changes in shipping logistics technology moves raw materials, parts and
finished products around the globe more efficiently.
Manufacturing. Advances such as automation and 3D printing have reduced geographic
constraints in the manufacturing industry. 3D printing enables digital designs to be sent
anywhere and physically printed, making distributed, smaller-scale production near the point of
consumption easier. Automation speeds up processes and supply chains, giving workforces more
flexibility and improving output.

Why is globalization important?

Globalization changes the way nations, businesses and people interact. Specifically, it changes
the nature of economic activity among nations, expanding trade, opening global supply chains
and providing access to natural resources and labor markets.
Changing the way trade and financial exchange and interaction occurs among nations also
promotes the cultural exchange of ideas. It removes the barriers set by geographic constraints,
political boundaries and political economies.
For example, globalization enables businesses in one nation to access another nation's resources.
More open access changes the way products are developed, supply chains are managed and
organizations communicate. Businesses find cheaper raw materials and parts, less expensive or
more skilled labor and more efficient ways to develop products.

With fewer restrictions on trade, globalization creates opportunities to expand. Increased trade
promotes international competition. This, in turn, spurs innovation and, in some cases, the
exchange of ideas and knowhow. In addition, people coming from other nations to do business
and work bring with them their own cultures, which influence and mix with other cultures.

The many types of exchange that globalization facilitates can have positive and negative effects.
For instance, the exchange of people and goods across borders can bring fresh ideas and help
business. However, this movement can also heighten the spread of disease and promote ideas
that might destabilize political economies.

History of globalization

Although many people consider globalization a twentieth century phenomenon, the process has
been happening for millennia. Examples include the following:
• The Roman Empire. Going back to 600 B.C., the Roman Empire spread its economic and
governing systems through significant portions of the ancient world for centuries.
• Silk Road trade. These trade routes, which date from 130 B.C. to 1453 A.D., represented
another wave of globalization. They brought merchants, goods and travelers from China
through Central Asia and the Middle East to Europe.
• Pre-World War I. European countries made significant investments overseas in the decades
before World War I. The period from 1870 to 1914 is called the golden age of
globalization.
• Post-World War II. The United States led the effort to create a global economic system with a
set of broadly accepted international rules. Multinational institutions were established
such as the United Nations (UN), International Monetary Fund, World Bank and World
Trade Organization to promote international cooperation and free trade.
The term globalization as it's used today came to prominence in the 1980s, reflecting several
technological advancements that increased international interactions. IBM's introduction of the
personal computer in 1981 and the subsequent evolution of the modern internet are two examples
of technology that helped drive international communication, commerce and globalization.
Globalization has ebbed and flowed throughout history, with periods of expansion and
retrenchment. The 21st century has witnessed both. Global stock markets plummeted after the
Sept. 11, 2001, terrorist attacks in the United States, but rebounded in subsequent years.
More recently, nationalist political movements have slowed immigration, closed borders and
increased trade protectionism. The pandemic has had similar effects on borders and immigration
and also disrupted supply chains. However, overall, the early 21st century has seen a dramatic
increase in the pace of global integration. Rapid advances in technology and telecommunications
are responsible for much of this change.

Questions:

3. Why is globalization important?

What is the G20?

The G20, or Group of Twenty, is an international forum that aims to foster international
cooperation by addressing global economic issues, such as financial stability and climate
change. The G20 is made up of 19 countries and the European Union, including most of the
world's largest economies.
The nations involved account for 60% of the planet's population, 75% of global trade and 80% of
world GDP. It was founded in 1999, following the 1997 financial crisis, and has met every year
since then.
Since 2008, the G20 has held an annual summit that brings together heads of state to discuss
important economic issues. The G20's president is selected annually on a rotating basis, and that
person's home country hosts the summit.
In 2019, the summit was held in Osaka, Japan, and it addressed issues such as women's
empowerment, climate change and artificial intelligence. The 2020 summit was to be in Riyadh,
Saudi Arabia, but was held virtually because of the pandemic. Three of the main themes
addressed were empowering people, especially women and youth; safeguarding the planet; and
long-term strategies to share the benefits of innovation and technological advancement. The
2021 summit will be held in Rome, Italy, and will focus on recovery from the pandemic and
climate change.
The members of G20 are Argentina, Australia, Brazil, Canada, China, France, Germany, Japan,
India, Indonesia, Italy, Mexico, Russia, South Africa, Saudi Arabia, South Korea, Turkey, the
United Kingdom, the United States and the European Union. Spain is a permanent guest of the
organization.

Questions:

4. What is the meaning of G20?

Types of globalization: Economic, political, cultural

There are three types of globalization.

1 Economic globalization. Here, the focus is on the integration of international financial markets
and the coordination of financial exchange. Free trade agreements, such the North
American Free Trade Agreement and the Trans-Pacific Partnership are examples of
economic globalization. Multinational corporations, which operate in two or more
countries, play a large role in economic globalization.
2 Political globalization. This type covers the national policies that bring countries together
politically, economically and culturally. Organizations such as NATO and the UN are
part of the political globalization effort.
3 Cultural globalization. This aspect of globalization focuses in a large part on the technological
and societal factors that are causing cultures to converge. These include increased ease of
communication, the pervasiveness of social media and access to faster and better
transportation.
These three types influence one another. For example, liberalized national trade policies drive
economic globalization. Political policies also affect cultural globalization, enabling people to
communicate and move around the globe more freely. Economic globalization also affects
cultural globalization through the import of goods and services that expose people to other
cultures.

Questions:
5. Differentiate the 3 types of globalization.

Effects of globalization

The effects of globalization can be felt locally and globally, touching the lives of individuals as
well as the broader society in the following ways:
• Individuals. Here, a variety of international influences affect ordinary people. Globalization
affects their access to goods, the prices they pay and their ability to travel to or even
move to other countries.
• Communities. This level encompasses the impact of globalization on local or regional
organizations, businesses and economies. It affects who lives in communities, where they
work, who they work for, their ability to move out of their community and into one in
another country, among other things. Globalization also changes the way local cultures
develop within communities.
• Institutions. Multinational corporations, national governments and other organizations such as
colleges and universities are all affected by their country's approach to and acceptance of
globalization. Globalization affects the ability of companies to grow and expand, a
university's ability to diversify and grow its student body and a government's ability to
pursue specific economic policies.

While the effects of globalization can be observed, analyzing the net impact is more complex.
Proponents often see specific results as positive and critics of globalization view the same results
as negative. A relationship that benefits one entity may damage another, and whether
globalization benefits the world at large remains a point of contention.
Internationalization and localization are both product strategies used in globalizing industries.

Examples of globalization
Multinational corporations are a tangible example of globalization. Some examples include the
following:
• McDonald's had 39,198 fast-food restaurants in 119 countries and territories, according to its
Securities and Exchange Commission filing at the end of 2020. It employed more than
2.2 million people at that time, the filing said.
• Ford Motor Company reported in 2021 that it works with about 1,200 tier 1 suppliers around
the globe.
• Amazon's recent expansion has it using tens of thousands of suppliers and employing more
than nearly 1.3 million full- and part-time employees.
Through their influence on social and economic development in the countries that host them,
multinational corporations embody the contradictions of globalization. They bring jobs, skills
and wealth to the region they are investing or doing business in. But they also can destroy local
businesses, exploit cheap labor and threaten indigenous cultures. The benefits they offer are
often unsustainable because the loyalty of multinationals is to their investors and bottom lines
and not to the local people, economies and cultures where they are doing business.
Another example of globalization is the response to the COVID-19 pandemic. Because the world
was able to communicate across boundaries, nations were able to work together to quickly
produce vaccines for the virus. In addition, doctors traveled where they were needed. For
example, Cuba sent doctors to Italy at the beginning of the pandemic to assist with the crisis as it
developed there.
However, countries also enacted strict travel restrictions and many closed their borders to cut
down on the free movement of people and spread of the virus.
Benefits of globalization
Globalization enables countries to access less expensive natural resources and lower cost labor.
As a result, they can produce lower cost goods that can be sold globally. Proponents of
globalization argue that it improves the state of the world in many ways, such as the following:
• Solves economic problems. Globalization moves jobs and capital to places that need these
resources. It gives rich countries access to lower cost resources and labor and poorer
countries access to jobs and the investment funds they need for development.
• Promotes free trade. Globalization puts pressure on nations to reduce tariffs, subsidies and
other barriers to free trade. This consequently promotes economic growth, creates jobs,
makes companies more competitive and lowers prices for consumers.
• Spurs economic development. Theoretically, globalization gives poorer countries access to
foreign capital and technology they would not otherwise have. Foreign investment can
result in an improved standard of living for the citizens of those nations.
• Encourages positive trends in human rights and the environment. Advocates of globalization
point to improved attention to human rights on a global scale and a shared understanding
of the impact of people and production on the environment.
• Promotes shared cultural understanding. Advocates view the increased ability to travel and
experience new cultures as a positive part of globalization that can contribute to
international cooperation and peace.
Questions:
6. Give an example of globalization.
7. What are the positive effects of globalization?

Negative consequences of globalization

Many proponents view globalization as way to solve systemic economic problems. But critics
see it as increasing global inequality. Among the critiques of globalization are the following
issues:
• Destabilizes markets. Critics of globalization blame the elimination of trade barriers and the
freer movement of people for undermining national policies and local cultures. Labor
markets in particular are affected when people move across borders in search of higher
paying jobs or companies outsource work and jobs to lower cost labor markets.
• Damages the environment. The transport of goods and people among nations generates
greenhouse gas and all the negative effects it has on the environment. Global travel and
trade also can introduce, sometimes inadvertently, invasive species to foreign
ecosystems. Industries such as fishing and logging tend to go where business is most
lucrative or regulations are less strict, which has resulted in overfishing and deforestation
in some parts of the world.
• Lowers living standards. When companies move operations overseas to minimize costs, such
moves can eliminate jobs and increase unemployment in sectors of the home country.
• Facilitates global recessions. Tightly integrated global markets carry a greater risk of global
recessions. The 2007-2009 financial crisis and Great Recession is a good example of how
intertwined global markets are and how financial problems in one country or region can
 quickly affect other parts of the world. Globalization reduces the ability of individual
nations to effectively use monetary and fiscal policy to control the national economy.
• Damages cultural identities. Critics of globalization decry the decimation of unique cultural
identities and languages that comes with the international movement of businesses and
people. At the same time, the internet and social media are driving this trend even
without the movement of people and commerce.
• Increases the likelihood of pandemics. Increased travel, critics say, has the potential to
increase the risk of pandemics. The H1N1 (swine flu) outbreak of 2009 and coronavirus
in 2020 and 2021 are two examples of serious diseases that spread to multiple nations
quickly.

Questions:
8. Discuss one negative impact of globalization.

Future of globalization

Technological advances, particularly blockchain, mobile communication and banking, are

fueling economic globalization.
Nonetheless, rising levels of protectionism and anti-globalization sentiment in several countries
could slow or even reverse the rapid pace of globalization. Nationalism and increasing trends
toward conservative economic policies are driving these anti-globalization efforts.
Global trade is also made more difficult and facing rising threats from other factors, such as
these:
• climate change
• decaying infrastructure
• cyber attacks
human rights abuses

Metaphors of Globalization

This section of the module will introduce you to metaphors of globalization. Aldama (2018)
explains that globalization can be explained using metaphors – solid and liquid for better
understanding. Apparently, events prior to globalization today gave rise to people, things,
events to harden over time giving rise to limited mobility (Ritzer, 2015), such solidity also
determined as physical and social barriers. For example, a country’s physical barrier is solid in
natural form. Solidity can also be man-made as in the case of an imaginary barrier like the West
Philippine Sea claimed by the Philippine government as belonging to the country and at the
same time China claiming it to be theirs. Such absurdity in territorial ownership affects Filipinos
in terms of physical mobility as restrictions are imposed.

Solidity ‘melts’ when barriers are removed even in the metaphorical level. For instance, when
two countries agree to free restrictions on people’s movements between them, a form of
liquidity emanates creating a free movement of people, ideas, and processes giving rise to
interconnectivity among nations. Removing barriers is critical in a global process that is
mutually understanding.
It cannot be denied that solid and liquid interactions abound in today’s world but liquidity is key
to spreading growth in many aspects articulated in the form of flows.

Flows are the movement of people, things, places, and information brought by the growing
“porosity “of global limitations (Ritzer, 2015). This simply means that the process of
interconnectivity brought about by liquid interactions gives rise to exchange of cultural
understanding as in the case of Filipinos patronizing Japanese, American and other
international cuisines apart from local choices. Flows can also have a negative connotation
when a country’s financial crisis can have global impact. In health, the recent Covid-19
pandemic that started in China has affected nations globally afflicting many people. The flow
continues to endanger economies, social life and health of many people.

In conclusion, as highlighted in the discussion, solid, liquid and the concept of flow provide
metaphors in your approach to learning globalization. For the solid part, globalization
accentuates resource boundaries that define nations. Liquidity is construed as a country’s
gradual opening up with the rest of the world seen in fluid interactions, free movement of
people, among others. Lastly, flows indicate a cultural understanding of both countries
following an exchange of ideas, goods and people. Such metaphors provide a robust
understanding of globalization’s view on interconnectedness.

CONCEPT MAP ON THE

METAPHORS OF
GLOBALIZATION

Globalization

Liquid Solid Flow

Concept map analysis. In the concept map, globalization is divided into three components:
liquid, solid and flow. Based on the given explanation of each element, analyze the properties
of each element and explain their relationship with each other and to globalization.

Questions:
9. Differentiate the three metaphors of globalization.

II. Perspectives of Globalization

For your increased learning, globalization has three major perspectives: hyper-globalists,
skeptics and transformationalists.

Hyper-globalists contend that pre-globalization is called internationalization. In the

contemporary setting, nation-states reduce their power as the focus shifts to global processes.
As such, national economy is less-prioritized because capital mobility outside national borders is
the target. Likewise, proliferation of multinational corporation links economies in the global
setting where interdependency is sought in an open economy with less national restrictions.
Sceptics, on the other hand, believe that globalization is a novel idea and at the same time
argue that it has existed for many centuries before where cultural, economic, social and
technological developments have occurred in various stages. Nation-states play an important
role alongside transnational responsibility. In Northern America and Europe, for instance, states
continue to be very powerful (Martell, 2010). Transformationalists contend that hyper-
globalism should be rejected. However, nations transform in the process of globalization, such
transformation elucidating national forces combined with international elements so that
change occurs affecting people’s experiences and sensibilities.

Source: Upali, P. (2017). An Introduction to the Theoretical Perspectives of Globalisation.

Retrieved from www.researchgate.net

Conceptualizing Globalization: Three Tendencies

Categorical Question Hyper-globalizers Skeptics Transformationalists

(Ohrnae 1990, 1995; Boyer & Drache Sassen 1991);
Albrow 1997) 1996; Hirst 1997; Rosenau, 1997)
Hirst & Thompson,
1999)
What’s New? A global age Trading blocs, Historically
weaker geo- unprecedented levels
governance than in of global
earlier periods interconnectedness
Dominant features? Global Capitalism, World less Thick (intensive and
global governance, interdependent than extensive)
global civil society in 1890s globalization
 Power of National Declining or eroding Reinforced or Reconstituted,
governments? enhanced restructured.
Driving forces of Capitalism and Governments and Combined forces of
globalization technology markets modernity
Pattern of Erosion of old Increased New architecture of
stratification hierarchies marginalization of world order
south
Dominant motif McDonald’s, National Interest Transformation of
Madonna, etc. political economy
Conceptualization of A reordering of the Internationalization Reordering of inter-
globalization? framework of human and regionalization regional relations
action and action at a
distance
Historical trajectory? Global civilization Regional blocs/clash Indeterminate: global
of civilizations integration and
fragmentation
Summary argument The end of the Internationalization Globalization
nation-states depends on transferring
government government power
acquiescence and and world
support

Source: Held et al 1999, cited in Giddens, 2009:137

III. Theories of Globalization

III. 1 World Systems Theory – this theory focuses on the world as a unit instead of
concentrating on each country. It divides countries into core countries which include Western
nations like United States, Europe. These countries are economically robust with heavy
industrialization and information and technology are widely utilized; periphery countries
include Latin America and Africa where raw materials are widely produced to be processed in
Western countries. Proliferation of low-income groups characterize these nations and a few
percentage of the population are in the upper group, thus there is a large income inequality in
the population. Semi-periphery countries like India and Brazil make up the middle ground
between core and periphery countries. They usually have diversified and well-developed
economy even if they are not internationally competitive.

The World Systems Theory is criticized for its lack of sensitivity towards culture and class
struggles of member countries, instead, it focuses on division of core and periphery nations.

III.2 Modernization Theory – this theory presupposes that countries follow a similar pattern
from traditional to modern society. This implies that traditional countries can develop into
modern nations with advancement in technology, increased labor and capital resource
allocation.

III. 3 Dependency Theory – this theory is a reaction to Modernization theory which looks
into inequalities between countries. The idea that Third World countries export raw materials
to Western countries is integrated into World Systems theory because they are recognized as
underdeveloped countries. Quagmire of poverty pervades in poor countries where
opportunities for advancement is difficult to achieve as economies fall into poverty trap. Thus,
they remain dependent on wealthier countries.

Source:

……. Globalization Theories: Society and Culture. Khan Academy. Retrieved from
https://www.youtube.com/watch?v=IQIVIYCZ4ec&feature=share .

IV. Globalization and Religion

One of the impacts of globalization is the spread of religion in many countries. Whereas before,
religion was confined to specific countries based on geographical demographics, today,
religious faith is spread globally thru the use of technology. Indeed, technological uptake has
improved communication, dissemination of information, religious services within members of
the same denomination and those from other religious groups which have also been made easy
by mass media, social media and other technological affordances.

As a consequence of a globalizing faith, religion has become a non-territorial touchstone of

identity (Aldama, 2018). Practitioners endorsed their faith to a global level linking Muslims,
Christians and other religious faiths from different parts of the globe as one community.

However, despite attempts at hybridity (homogeneity) of religion due to its worldwide

connectivity, the case of identity assertion is inevitable as each faith follows some internal
religious practices, rituals and belief systems that can give rise to conflict with other religions.
Islam is so much different with Christianity, as such, any form of globalization will only dispel
individual faiths rather than collective understanding. This is true in imperialist structure of
Western religious faith that conquers religion in developing countries making the latter
defensive, political and aggressive if not contained.

V. Globalization and Regionalization

Regionalization is a counter-globalization process that seeks to focus on integration and

connectivity within the region instead of a global community. One of the reasons for its
popularity is the attainment of security necessary for peace and unity among regional partners.
Association of South East Nations (ASEAN) is one example of regionalization that brings
together countries of the region to form a communal pact that allows free trade, economic
cooperation and exchange of goods and services within member countries. Together, these
countries form a single community.

The aforementioned explanations do not imply that regionalization is anti-globalization.

Instead, it forms part of a bigger global village that can be summed up to the saying: the core
driving force is global even if the manifestation is regional (Hurrell, 2007, p.4) Sentiment of
‘glocality’ (thinking global acting local) is yet another statement that highlights connection
between regionalization and globalization.

The age of economic globalization has also been the age of regionalization, and much of
the analysis of the new regionalism has been devoted to the links between the two
tendencies. Thus, regionalism is seen as a critical part of the political economy of global
relation and strategies that states (and other actors) have adopted in the face of
globalization (Aldama, 2018).

In the political arena, globalization explains power relations among leaders of a globalized
village where dominant countries in the core assert power over other nations from low-income
groups in the periphery. Such power structure accentuates divisiveness that further
exacerbates already existing discrimination. This power issue is experienced in regional settings
with countries like Singapore and Thailand exercising influence due to high status economy that
affects political influence.

On the economic front, the benefits of regionalization include control of financial flows as one
robust regional economy (ASEAN Economy) gains global competitive advantage. This has a
positive effect in national economies as they gain protection as well in large-scale transactions
with the rest of the world. The upscaling of production processes to meet with regional
standards increase labor and capital utilization of domestic resources thereby resulting to
quality goods and services.

VI. Global City

You will realize that globalization has given rise to production activities strategically located in
urban centers globally. In these areas, new production of goods, services, information and
knowledge were managed by networks. Such complexity of processes required complex
learning to cope up with an ever-changing global village.

According to Renn (2012), a global city is a significant production point of specialized financial
and producer services that make the globalized economy run. Examples of global cities include
New York, London and Tokyo but there are many global cities other than this (Rerin, 2012).

The rise of global cities is due to many reasons. For one, the proliferation of technology used in
education, economy, among other functionalities has connected nations at a great speed.
Second, deregulation and privatization of companies has unbundled and loosened government
interventions which paved the way for more international transactions as opposed to inter-
state trades, negotiations with heavy governmental interventions in the past.

Due to the increasing complexity of networked productions, strategic territories were built that
became centers for all complex functions to operate.
Finally, global cities drive the economy as these economic powerhouse fuels macroeconomic
functions. In relation to globalization, these cities drive connectivity with networked production
and exchange are centered in these strategic spots. Also, the presence of airports attests to
connectivity literally and figuratively speaking. In education, these are considered educational
hubs with think tanks, intellectuals, corporate masters congregate.

Cities are centers of innovation and businesses. They portray the economic, social, and political
state of the country and its people. Cities are categorized differently depending on the role they
play on the global scene. Although the city of Tokyo is the largest in the world with a population
of about 38,000,000, it is considered an Alpha + city, one level below the cities of New York and
London which are considered Alpha ++ cities. Other Alpha + cities include Shanghai, Tokyo,
Dubai, Singapore, Hong Kong, Paris, and Beijing. To be considered a global city, an urban
center must prove it enjoys a significant global advantage over other cities and serves as a hub
within the world economic system. Initially, global cities were ranked depending on their size.
Today, several other factors other than the size of the city are being considered. Amsterdam,
Houston, Mexico City, Paris, São Paulo and Zurich have all grown to be global cities. These
cities possess several similar characteristics including Home to several financial service
providers and institutions, headquarters to large multinationals, dominate the trade and economy
of their countries and are a major hub for air, land and sea transport. They are also centers of
innovation, boast of well-developed infrastructure, large population of employed people and act
as the centers of communication of global news.

Some Of The World's Best-Known Global Cities

According to the A.T. Kearney’s Global Cities Index 2017, New York outsmarted London as the
world’s best-performing city while the latter ranked second. Paris, Tokyo and Hong Kong
followed respectively. The city of San Francisco topped the Global Cities Outlook Index ahead
of New York, Paris, London, and Boston respectively. New York was ranked the best city for
business activities, and human capital. Paris topped the best cities for information exchange
while London was rated the best city for a cultural experience. Washington, D.C. the best city for
political engagements. Hon Kong boasts of being a global leader in air freights while Brussels
boasts of being the best place to set up an embassy.

Reasons Of Increase In Global Cities

The increase in global cities is linked to the globalization of economies and the centralization of
mass production within urban centers. The two factors have led to the emergence of networks of
activities that seek to fulfill the service and financial requirements of multinationals. The cities
grow to became global while other suffer deindustrialization or stagnation of their economies.
Criticisms Of Global Cities
Despite playing significant roles in the global economy, global city thesis has been known for
being a threat to state-centric perspectives. These cities have been accused of focusing their
reach to other global cities and neglecting cities within the national outreach. These cities are
more connected to the outside world than to their domestic economy. Although they are
interconnected and interdependent, global cities are always in a competitive state. The cities of
New York and London have been trying to outwit each other as the global financial centers.
Local governments have been keen to promote the global cities within their territories as either
economic or cultural centers, and sites of innovation.

VII. Negative Effects of Globalization

A very distinct pitfall of globalization that you need to know is its inability to bring all countries
together to be integrated into the global process. In other words, there are countries that are
unable to cope up with all the pressures of the global process. Hence, countries that are not
integrated due to economic, political and cultural incapacities are left out in the process, thus,
suffer a form of displacement.

In the economic sphere, when digitization fails to equalize access creating digital divide among
its users, the overall effect is skewed economic growth against ‘have-nots’. Such inequality
spirals technology-rich countries to be globally connected while those technology-poor nations
fail to join the race and become immersed in poverty. This large disparity only displaces the
‘have-nots’, the incapacitated citizens to come to terms with their sorry state.

In the political front, countries that have power take dominion over global processes
encroaching upon discriminated countries, reaping of their identity integrity in the pursuit of
global influence.

Finally, in the cultural level, globalization steals away cultural identity, renders nationalist
consciousness as a dismal engagement when all efforts are geared towards global connectivity.
It’s just as simple as taking away one’s authentic identity amidst growing influence due to an
open society. Hence, it cannot be denied that nationalistic struggles asserting for freedom will
always cry for their cause as globalization eradicates people’s sense of nationhood.

Questions:

10. Discuss the three theories of globalization.

References

Aldama, P. (2018). The Contemporary World. REX Publishing Company. First Edition.

Renn, A. (2012). What is a Global City. Retrieved from www.newgeography.com

Lutkevich, B. (n.d.). Globalization.
https://www.techtarget.com/searchcio/definition/globalization

Sassen, S. (2010). The Global City: Introducing a Concept. Columbia University, New York, USA.
Retrieved from www. bbvaopenmind.com

Upali, P. (2017). An Introduction to the Theoretical Perspectives of Globalisation. Retrieved

from www.researchgate.net

……. Globalization Theories: Society and Culture. Khan Academy. Retrieved from
https://www.youtube.com/watch?v=IQIVIYCZ4ec&feature=share .