Unit 1

 It involves both the creation of new social

Globalization networks and the multiplication of existing
connections that cut across traditional,
 is the process in which people, ideas and political, economic, cultural, and
goods spread throughout the world spurring geographical boundaries.
more interaction and integrationbetween the  Globalization is reflected in the expansion and
world's cultures, governments and economy. the stretching of social relations, activities,
and connections.
 is the process of integration of economies  Globalization involves the intensification and
across the world through cross-border flow of acceleration of social exchanges and
factors product and information. activities.
 Globalization processes do not occur merely
Technology or an objective, material level but they also
 Major driver of globalization involve the subjective plane of human
consciousness.
According to the International Monetary Fund
(IMF) Historical Periods of Globalization

 globalization is the growing economic  The Prehistoric Period (10000 BCE-3500

interdependence of countriesworldwide BCE)
through increasing volume and variety of  In this earliest phase of globalization,
cross border transactions in goods and contacts among hunters and gatherers –
services and of international capital flows and who were spread around the world – were
also through the more rapid and wide geographically limited. In this period due
diffusion of technology. to absence of advanced forms of
technology, globalization was severely
According to Steger.. limited.
 The Pre-modern Period (3500 BCE-1500 CE)
 Globalization is an expansion, and  In this period the invention of writing and
intensification of social relations and the wheel were great social and
consciousness across world time and world technological boosts that moved
space. It is about growing worldwide globalization to a new level. The invention
connectivity. of wheel in addition to roads made the
transportation of people and goods more
What are the 6 major sources of economic growth efficient. On the other hand writing
across country facilitated the spread of ideas and
 Stabilization inventions
 Property rights  The Early Modern Period (1500-1750)
 Institution for macro economic  It is the period between the
 Institution for social influence Enlightenment and the Renaissance. In
 Institution for conflict management this period, European Enlightenment
 Regulatory Institution project tried to achieve a universal form
of morality and law. This with the
Attributes, Qualities or Characteristics of emergence of European metropolitan
Globalization
 centers and unlimited material music, dance, film, fashion, and language. As
accumulation which led to the capitalist a result there is a scarcely any society in the
world system world that expresses itself in its own self-
 The Modern Period (1750-1970) contained and authentic culture.
 Innovations in transportation and  Religious Dimension
communication technology, population  Religion is a personal or institutionalized
explosion, and increase in migration led set of attitudes, beliefs, and practices
to more cultural exchanges and relating to or manifesting faithful devotion
transformation in traditional social to an acknowledged ultimate reality or
patterns. Process of industrialization also deity . It is the most important defining
accelerated. element of any civilization as contrasted
 The Contemporary Period (from 1970 to with race, language, or way of life. As
present) such, it is also portrayed as a defining
 The creation, expansion, and acceleration element in future conflicts. Whether the
of worldwide interdependencies occurred root cause of a particular conflict or
in a dramatic way and it was a kind of merely a vehicle for the mobilization of
leap in the history of globalization. nationalist or ethnic passions, religion is
certainly central to much of the strife
DIMENSION OF GLOBALIZATION currently taking place around the globe.
 Economic Dimesion  Jihadist globalism
 This refers to the extensive development - is a religious response to the materialist
of economic relations across the globe as assault by the ungodly West in the rest of the
a result of technology and the enormous world. Coming out of what they consider a
flow of capital that has stimulated trade in pure form of Islam, its disciples seek to
both sources and good destroy all those alien influences that have
 Political Dimesion been imposed on Muslim people.
 This refers to an enlargement and  Justice
strengthening of political interrelations - Commutative Justice
across the globe. This aims at fulfilling the terms of
 Cultural Dimension contracts and other promises on both
 This refers to the increase in the amount personal and social.
of cultural flows across the globe. - Distributive Justice
Cultural interconnections are at the This ensures a basic equity in how
foundations of contemporary globalization both the burden and the goods of society are
 Individualism and consumerism. distributed and that ensures that every person
- which are the dominant cultural enjoys a basically equal moral and legal
characteristics of our age and the drive for standing apart from differences in wealth,
economic success stimulated by the internet privilege, talent and achievements
and other technological devices circulate - Social Justice
much more easily than they did in earlier This refers to the creation of the
periods. conditions in which the first two categories of
 Cultural diversity justice can be realized and the common good
- often results hybridization- a constructive identified and defended.
interaction process between global and local  Ideological Dimension
characteristics which is often visible in food,
  Ideology is a system of widely shared  the advent of globalization approaching its
ideas, beliefs, norms and values modern form is witnessed. A short period
among a group of people. It is often before World War I is referred to as golden
used to legitimize certain political age of globalization characterized by relative
interests or to defend dominant peace, free trade, financial and economic
power structures. stability.
 Major Ideological Claims of
Advocates of Globalism International monetary system (IMS)
1. Globalization is about the liberalization  refers to a system that forms rules and
and global integration of markets. standards for facilitating international trade
2. Globalization is inevitable and among the nations.
irreversible. Gold
3. Nobody is in charge of globalization.  This was belief to guarantee a non
4. Globalization benefits everyone. inflationary stable economic environment a
5. Globalization furthers the spread of means of accelerating international trade and
democracy in the world standard function as a fix exchange rate
UNIT 2 rigime(bagay na ginagamit para magkipag
transact and makipag trading in other
Global Economy countries)

Economic Globalization The Bretton Woods system

 refers to the increasing interdependence of  ended in 1971 as the trade deficit and
world economies as a result of the growing growing inflation undermined the value of
scale of cross-border trade of commodities dollar in the whole world.
and services, flow of international capital and
wide and rapid spread of technologies. European Monetary Integration
 refers to a 30-year long process that began at
Two Major Driving Forces for Economic the end of the 1960s as a form of monetary
Globalization cooperation intended to reduce the excessive
1. The rapid growing of information in all influence of the US dollar on domestic
types of productive activities exchange rates, and led, through various
2. Marketization attempts, to the creation of a Monetary Union
. and a common currency.
ORIGIN OF ECONOMIC FLOBALIZATION  June 1998, the European Central Bank was
16th century established
 world system analysts identify the origin of  January 1999, a unified currency, the euro,
modernity and globalization through long was born and came to be used by most EU
distance trade in the 16th century. member countries.
17th and 18th century  According to the European Commission in
 global economy exists only in trade and 2008, the first ten years of the EMU were an
exchange rather than production as the world evident success for participating countries in
export to World GDP did not reached 1 to 2 terms of increased trade and capital
percent. transactions, more integrated economies,
In the 19th century restored macroeconomic stability and the
 utilization of Euro as the second most widely
used reserve currency.
 2008 to 2009 the European Union (EU) is Trade barriers
presented with dramatic challenges brought  They are state-imposed restrictions on trading
by global financial and economic crisis. a particular product or with a specific nation.
It can be linked to the product, service like
European Monetary System (EMS) technical requirement and it can also be
 on the other hand is a 1979 arrangement administrative in nature such as rules and
between several European countries which procedures of transactions. Tariffs, duties,
links their currencies in an attempt to stabilize subsidies, embargoes and quotas are the
the exchange rate. most common trade barriers
European Financial Stability Mechanism (EFSM) Safety
 is a permanent fund created by the European  This ensures that imported products in the
Union (EU) to provide emergency assistance country are of high quality.
to member states within the Union.
European Financial Stability Facility (EFSF) Types of Trade Policies
 on the other hand, is an organization created National Trade Policy
by the European Union to provide assistance  This safeguards the best interest of its trade
to member states with unstable economies. and citizen.
Bilateral Trade Policy
International trade  To regulate the trade and business relations
 is the exchange of goods, services and between two nations, this policy is formed.
capital across national borders.(True) International Trade Policy
 This defines the international trade policy
The two key concepts in the economics of under their charter like the International
international trade are specialization and economic organizations, such as Organization
comparative advantage. (true) for Economic Co- operation and Development
(OECD), World Trade Organization (WTO) and
Trade policies International Monetary Fund (IMF).
 refer to the regulations and agreement of
foreign countries.(true) The World Trade Organization
 It defines standards, goals, rules, and  deals with the global rules of trade between
regulations that pertain to The trade relation nations with the main function of ensuring
between countries. Each country has specific that trade flows smoothly,predictably and
policies formulated by its officials. freely.(True)
 Viewed as a means by which industrialize
Boosting the nation international trade is the aim countries can gain access to the markets of
of each country(True) developing countries(true)

Focuses of Trade Policy in International Trade Global Economy Outsourcing

 Outsourcing is an activity that requires search
Tariffs for a partner and relation-specific investments
 Heavy tariffs on imported goods are levied by that are governed by incomplete contracts
some nations for the protection of their local and the extent of international outsourcing
industries. depends on the thickness of the domestic and
 foreign market for input suppliers, the relative and subsequently dominant technologies
cost of searching in each market, the relative especially in shipping and navigation.
cost of customizing inputs and the nature of
the contracting environment in each country. The Finance Function in a Global Corporation
 Chief financial officers (CFOs) must balance
UNIT 2.2 the opportunities with the challenges of
MARKET INTEGRATION operating in multiple environments in
 refers to how easily two or more markets can managing their internal markets in building an
trade with each other. advantage.
 It occurs when prices among different
locations or related goods follow similar three functions can be created by CFOs through
patterns over a long period of time. exploiting their internal capital markets.
 exists when there are exerted effects that 1. Financing
prompt similar changes or shifts in other  A group’s tax bill can be reduced by the CFO
markets that focus on related goods on events like borrowing in countries with high tax rates
occurring within two or more markets. and lending to operations in countries with
lower rates.
Types of Related Markets where Market Integration 2. Risk Management
Occurs  Global firms can offset natural currency
exposures through worldwide operations
Stock Market Integration instead of managing currency exposures
 Two markets are perfectly integrated if through financial markets.
investors can pass from one market to another 3. Capital budgeting
without paying any extra costs and if there are  Getting smarter on valuing investment
possibilities of arbitration which ensures the opportunities CFOs can add value.
equivalence of stock prices on both market
Financial Market Integration Foreign Direct Investment (FDI)
 It is an open market economy between  It is a major driver of extended global
countries facilitated by a common currency corporate development. It is an investment
and the elimination of technical, regulatory made by a company or individual in one
and tax differences to encourage free flow of country in business interests in another
capital and investment across borders. country,

Global Corporation Brazil, Russia, India, China and South Africa

 is a business that operates in two or more (BRICS)
countries. It also goes by the name
"multinational company". China and India
 In 2050 two countries that will be worlds
Historical Periods of Global Corporation dominant suplliers of manufactured goods
 In early historical periods as both cities and Brazil and Russia
countries extended their reach beyond their  In 2050 Most dominant suppliers of raw
own borders, a form of globalization was materials
initiated which then followed complex
patterns directly influenced by the emergent
The General Agreement on Trade in Services International Legal Sovereignty
(GATS)  It refers to the acceptance of a given state
 the first multilateral agreement covering trade as a member of the international
in services which was negotiated during the community.
last round of multilateral trade negotiations, Westphalian Sovereignty
called the Uruguay Round, and came into  It is based on the principle that one
force in 1995. sovereign state should not interfere in the
General Agreement onTariffs and Trade (GATT) domestic arrangements of another.
 deals with trade in goods. Interdependence Sovereignty
two primary objectives of GATTS  It is the capacity and willingness to
 to ensure that all signatories are treated control flows of people, goods and capital
equitably when accessing foreign markets into and out of the country.
 to promote progressive liberalization of trade Domestic Sovereignty
and services.  It is the capacity of a state to choose and
implement policies within the territory
2.3 GLOBAL INTERSTATE SYSTEM
Economic and Political Integration (European
Two personalities who define globalization and Integration)
nation state
 Max Weber European integration
 a German social theorist define state as a  is the process of industrial, political, legal,
compulsory political organization with a economic,social and cultural integration
centralized government that maintains a of states wholly or partially in Europe.
monopoly of the legitimate use of force European Union (EU)
within a certain territory  is an international organization
 Hedley Bull comprising 28 European countries and
 a 20th century international philosopher governing common economic, social,
stated that states are independent political and security policies
communities each of which possesses a Economic integration
government and asserts sovereignty in  can be described as a process and a
relation to a particular portion of the means by which a group of countries
earth’s surface and a particular segment strives to increase their level of welfare
of the human population Seven Stages of Economic Integration
1. Preferential trading area (PTA)
Neoliberalism  Happens when there’s an agreement on
 is the intensification of the influence and reducing or eliminating tariff (tax or duty to be
dominance of capital. It is the elevation of paid on a particular class of imports or
capitalism as a mode of production into exports) barriers on selected goods imported
an ethic, a set of political imperatives, from other members of countries within the
and a cultural logic. geographical region or areas.
Economic sovereignty 2. Free trade area
 is the power or national governments to  Eliminate import tariffs as well as import
make decisions independently of those quotas between signatory countries
made by other governments
3.Customs union New Institutionalism
 Removal of tariff barriers between members,  This theory emphasized the importance of
together with the acceptance of a common or institutions in the process of European
unified external tariff against non-members is integration. Its three key strands are: rational
involved in the Custom Union. choice, sociological and historical.
4. Common market Multi-level Governance (MLG)
 One major step towards economic integration  This is a new theory of European integration.
5. Economic union  as dispersion of authority across multiple
 The trading bloc that has both a common levels of political governance
market between members
6. Eonomic and monetary union Transnational Activism in States
 involves a single economic market, a Transnational activism
common trade policy, a single currency and a  activism can be defined as the mobilization of
common monetary policy collective claims by actors located in more
7. Complete economic integration than one country and/or addressing more than
 The final stage of economic integration in one national government and/or international
which member states completely forego governmental organization or another
independence of both monetary and fiscal international actor
policies social movement
Political Integration  is a type of group action. It refers to the
 Refers to the integration of components within organizational structures and strategies that
political systems may empower oppressed populations to
mount effective challenges and resist the
Theories of European Integration more powerful and advantaged elites".
global justice movement
Neo-functionalism  describes the loose collection of individuals
 It is a theory of regional integration, building and groups often referred to as a “movement
on the work of Ernst B. Haas, an American of movements”,
political scientist and Leon Lindberg, also an new transnational activism
American political scientist. Jean Monnet's  is as multifaceted as the internationalism.
approach to European integration,
Intergovernmentalism Social media
 This theory provides a conceptual explanation  media is a computer-based technology that
of the European integration process. facilitates the sharing of ideas and information
 The main concept of the and the building of virtual networks and
Intergovernmentalism is emphasizing on the communities.
role of national states in the European
integration; in another words it argues that UNIT 2.4 CONTEMPORARY GLOBAL
"European integration is driven by the interest GOVERNANCE
and actions of nation states"
Liberal Intergovernmentalism Global governance or world governance
 This a dominant political theory developed by  is a product of neo-liberal paradigm shifts in
Andrew Moravsik in 1993 to explain European international political and economic relations
integration.  is a tool to identify solutions to problems
created by neo-liberal globalization.
The Role of the Nation -State in Globalization UNIT 3 WORLD OF REGIONS
Basic Elements of a State
1. Territory Global North
2. People  Rich Country or Developed Country
3. Sovereign Power Global South
 Poor countries or developing countries
Globalization’s Impact on the State
(HINDI KASALI SA ENUMERATION BUT BASAHIN Three Primary Concepts of Global South
DAW) 1. It refers to economically disadvantaged nation-
Factors which lead to the increase and states and as a post-cold war alternative to “Third
acceleration of movement of people, information, World”.
commodities and capital. 2. The Global South captures a deterritorialized
1. Lifting of trade barriers geography of capitalism’s externalities and means
2. Liberalization of world capital markets to account for subjugated peoples within the
3. Swift technological progress (information borders of wealthier countries, such that there are
technology, transportation and economic Souths in the geographic North and
communication) Norths in the geographic South.
3. It refers to the resistant imaginary of a
Problems afflicting the world today which are transnational political subject that results from a
increasingly transnational in nature-those that shared experience of subjugation under
cannot be solved at the national level or State to contemporary global capitalism.
State negotiations.
Asian Regionalism
1. Poverty Regionalism
2. Environmental pollution  refers to the decentralization of political
3. Economic crisis powers or competencies from a higher
4. Organized crime and terrorism towards a lower political level.
Globalization
Effects of greater economic and social is the intensification of economic, political, social,
interdependence to national decision- and cultural relations across borders and a
making processes. consciousness of that intensification, with a
concomitant diminution in the significance of
1. It calls for a transfer of decisions to the territorial boundaries
international level
2. It requires many decisions to be transferred to Views of Globalization in the Asia Pacific and
local levels of government due South Asia
to an increase in the demand for participation.
Globalization
The following can be guaranteed only by the  is an external phenomenon being pushed into
States through independent courts: the region by world powers particularly the
1. Respect of human rights and justice United States and Europe.
2. Promote the national welfare The Asia Pacific and South Asia
3. Protect the general interest  refer together to the regions of East (or
Northeast) Asia, South Asia, the Pacific
Islands, and South Asia.
Asia Pacific and South Asia’s Impact on The product of regional economic development in
Globalization the post war era are the middle classes in east
1. Japan Asia.
 embarked on procuring raw materials like coal
and iron at unprecedented economies of scale Two salient points in the history of east Asian
allowing them to gain a competitive edge in middle-class formation.
the global manufacturing market as well as
globalized shipping and procurement patterns 1. Middle class formation in Southeast Asia was
which other countries modeled driven by global and regional transnational
2. China capitalism working in alliance with national states
 pursues similar pattern of development at while middle class in Japan, South Korea, and
present and is now the world’s largest Taiwan were created by developmental states and
importers of basic raw materials such as iron national capitalism.
and surpassed Japan, the US and Europe in 2. New urban middle classes in East Asia, whether
steel production. in Japan, South Korea, Taiwan, or Southeast Asia,
3. India with their middle-class jobs, education, and
 opened -up and emphasized an export- income, have in turn created their own new
oriented strategy. lifestyles commensurate with their middle-class
4. India and China income and status.(I think di namn to isasama
 also become a major source of international HAHAHAHHAHAH)
migrant labor, which is also one of the
fundamental characteristics of the era of Complex historical forces shaped new urban
globalization. middle classes.(true)
5. The trend of the rising regional free
arrangements in the Asia Pacific and South Asia. The political consequences of the rise of East Asia
 This kind of regionalism would mean as middle classes vary.(true)
bulwark to globalization or as compatible and
even pushing forward the process of global
economic integration. Question included in the exam
6. In culture and globalization in the region, the
source of a wide variety of cultural phenomena Golden straitjacket
that have spread outward to the West and the rest There are two things that will happen if a country
of the world is the region. is in Gloden straitjacket; the politics shrink and
the economy grows(true)
The Region-Making in Southeast Asia and
Middle-Class Formation:
The Third Wave

Regionalization
 entails complex and dynamic interactions
between and among governmental and
nongovernmental actors which resulted to
hybrid East Asia.(true)