Contemporary World Reviewer
Contemporary World Reviewer
4. Mittelman, 2000
Global Issues
“Manifestation of globalization includes the
spatial reorganization of production, the 1. Population
interpenetration of industries across borders,
the spread of financial markets, the diffusion of 2. Food Production
identical consumer goods to distant countries, 3. The Energy
and massive transfers of population.
4. Military Issues
5. Economics
6 CORE CLAIMS OF GLOBALISM (Steger, 2005)
6. Environmental
1. Globalization is about the liberalization and
global integration of markets. 7. Poverty
a. Globalization in Economics – refers to the - for people in richer countries – helps to forge
prevalent international movement of goods, a sense of global community and transnational
capital services, technology, and information. solidarity.
b. Globalization in Politics – can take place - for unskilled and indigenous people – high
above the state through political integration rising building and increase mobility of
patterns. economic enterprise lead them to be displaced
and massive dislocation, environmental capital around the world. It led to the creation
degradation, and violations of human rights. of various global economic structures.
ITO – International Trade Organization
THEORIZATION OF GLOBALIZATION GATT – General Agreement on Trade and
Tariffs
1. Imperialism – describes various methods
employed by one country to gain territorial or WTO – World Trade Organization
geographical control over another.
GATS – General Agreement on Trade and
2. Colonialism – more formal mechanisms of Services
political control.
Bretton Woods led to the creation of
Decolonization – the process of revealing and International Monetary Fund in order to create
dismantling colonialist power in all its forms. a stable monetary system.
3. Neo-Liberalism - neo-liberal and laissez- Hamilton, 2008 “Economic globalization
faire economic ideologies favor free trade, free involves trading and investing between
circulation of capital, and freedom to invest countries.”
anywhere.
Global trade operates through various
economic networks such as supply chains,
international production networks, global
commodity chains, and global value chains.
CHAPTER II: STRUCTURES OF Global value chains follow the creation of value
GLOBALIZATION through different stages – from the creation of
a product to its disposal after use.
THE GLOBAL ECONOMY Commodities are the first link to this chain.
Economy – basic foundation which should be “Race to the bottom” – is a result of some
given importance and it also influences the countries stimulating trade and investment
condition of society as well as politics. through low prices and low wages.
Economic mobility – is considered as the major However, some theorize that after a point,
factor in competing in the global arena. where there is a move towards industrial “upgrading”.
the rich become richer and the poor become
poorer.
CHARACTERISTICS COMPRISING THE
GLOBAL ECONOMY
Economic Relationship was established when:
- The Philippines bartered goods with China International Trade – exchange of goods and
(i.e porcelain, silk and other goods) services between different countries.
- The Galleon Trade which is implemented by International Finance – transfer of money
Spaniards in the Philippines between countries.
- The Silk Road was introduced by China as - one of the primary features of a global
the oldest international trade route. economy.
- Bretton Woods System in 1944 was an Global Investment – an investment strategy
attempt to create institutional structures which that is not constrained by geographical
would foster international economic boundaries.
cooperation and encourage the free flow of
- transaction mainly comprise trade taking - treaties are formed when lawful
place between different countries representatives of several states go through a
ratification process, providing the IGO with an
international personality.
BENEFITS OF THE GLOBAL ECONOMY
a. Free trade – is an excellent method for WORLD TRADE ORGANIZATION
countries to exchange goods and services. It
allows countries to specialize in the production - regulates and facilitates international trade
of goods in which they have a comparative - the only international organization dealing
advantage. with the global rules of trade.
b. Movement of labor
c. Increased economies of scale – WORLD HEALTH ORGANIZATION
specialization of goods produced in most
countries has led to advantageous economic - responsible for providing leadership on global
factors such as lower average costs and lower health matters, shaping the health research
prices for customers. agenda, setting norms and standards,
articulating evidence-based policy options,
d. Increased investment – due to the presence providing technical support to countries, and
of a global economy, it has become easier for monitoring and assessing health trends.
countries to attract short-term and long-term
investments.
ASIAN DEVELOPMENT BANK
FACTORS AFFECTING THE GLOBAL
ECONOMY
b. Supranational Organization
1. Population
- extends beyond the borders of three or more
2. Human Capital states that seeks to promote economic,
political, or cultural unity between members.
3. Natural Resources
UNITED NATIONS
4. Infrastructure
- aims to maintain international peace and
5. Technology security, the promotion of the well-being of the
6. Law people of the world, and international
- offer European Union freedom, security, and - a commercial enterprise that operates
justice, without internal borders, while also substantial facilities that do business in more
controlling external borders than one country.
- aims to protect and assist victims of armed World System Theory – social system is known
conflict and promote understanding and as world system which one that has
respect for international humanitarian law. boundaries, structures, member groups, rules
of legitimation and coherence. (Wallerstein.
1979)
- its life is made up of conflicting forces which 3. Foreign Direct Investment – an investment in
hold it together by tension and tear it apart as the form of controlling ownership in a business
each group seeks eternally to remold it to its in one country by an entity based in another
advantage. country.
- corresponds with the divide between - the difference in the prices in the integrated
economically developed and industrialized market should be equal if they are well
countries and those countries that are less integrated
economically developed.
example: reduction and trade barriers, non- GATT was simply a forum for the meeting of
discrimination against a nation’s products representative countries while the WTO is an
independent organization.
b. monetary order – the goal was to provide
security as well as the flexibility to the GATT focused on tariff reduction, and WTO
monetary order. focus more on non-tariff-related barriers to
trade.
c. global investment – a key development in
terms of investment involved MNCs, especially
American-based firms in fields like automobiles
and computers, constructing their own plans International Monetary Fund (IMF)
and/or investing in indigenous companies in
other countries. - macroeconomic stability for both member
nations and the global economy
World Bank
General Agreement of Tariffs and Trade
(GATT) - a specialized agency of the UN
- an agreement made by the member states to - officially the International Bank for
eliminate restrictions on the use of currency for Reconstruction and Development
international trade.
- the most important element of the World Bank
Trade-Related Aspect of Intellectual Property Group
Rights (TRIPS)
- was established in 1944 at Bretton Woods
- involves intangible ideas and knowledge, and and began operations in 1946
expressions that require their users to be
approved by their owner.
- range of operating or performance measures - it is the one that has significant investments
that the host country governments impose on and facilities in multiple countries and lack
foreign firms to keep them from having a dominant headquarters
distorting effect on trade in goods and services.
Global Business – connects its talent,
World Trade Organization (WTO) resources, and opportunities across political
boundaries.
- a multilateral organization headquartered in
Geneva, Switzerland with 152 member nations A global corporation is more invested in its
(as of 2008) overseas locations and can be more sensitive
to local opportunities and vulnerable to threats.
- focus on trade places at the heart of
economic globalization and has made it a Global Companies or MNCs operate on a
magnet for those opposed either to the broader global scale which means they have huge
process of trade liberalization and promotion or assets in almost all countries they operate.
to some specific aspect of WTO operations
management of offices in other countries is
GATT vs WTO controlled by one head office located in the
home country.
one of the most effective survival strategies of - a relatively modern phenomenon in human
global corporations is spending a huge amount history whereby it is composed of two non-
of money on marketing, advertising, and interchangeable terms: nation and state
promotional activity.
Nation – an imagined community that does not
ADVANTAGES AND DISADVANTAGES OF go beyond a given “official boundary”
GLOBAL CORPORATIONS
- limited and sovereign
ADVANTAGES DISADVANTAGES State – refers to a country and its government
where a community of persons more or less
- the investment of - least concern for numerous occupying a definite territory
foreign capital priorities of host completely free of external control and
countries possessing an organized government to which
- generation of
the great body of inhabitants render habitual
employment - adverse effect on
obedience.
domestic enterprises
- use of advanced
technology - change in culture
PRINCIPLE OF INTERSTATE SYSTEM
- growth of ancillary
units Nationalism – a doctrine and/or a political
movement that seeks to make the nation the
- increase in the
basis of a political movement that seeks to
exports and inflow of
make the nation the basis of a political
foreign exchange
structure.
- healthy competition
Internationalism – the desire for greater
cooperation and unity among states and
people
GLOBAL INTERSTATE SYSTEM
- a political principle that places the interests of
- a system of competing and allying states the entire world above those of individual
nations and argues for cooperation among
Attributes of Global System nations for the common good.
International Institutions – form a vital part of United Nations was created for many
contemporary international relations. they are reasons:
the central focus of policy-making efforts
around the world these are organizations with - there should be peace and security after
an international membership, scope or WW2
presence
- countries should be friendly to each other
Globalism is an ideology based on the belief all the above-mentioned organs were
that people, goods, and information ought to be established in 1945 when the UN was founded.
able to cross national borders unfettered. It is
putting the interest of the entire world above Achievements of United Nations:
the interest of individual nations. - UN has helped many countries become
democratic and peaceful states.
Contemporary Global Governance
- UN plays an important role in protecting our
Governance – establishment of policies and environment.
continuous monitoring of their implementation
by members of the governing body. - the International Atomic Energy Agency is a
UN organization that controls over nuclear
Global Governance – a collection of weapons of countries and sees to it that they
governance-related activities, rules, and don’t build an atomic bomb.
mechanisms, formal and informal, existing at a - since 1950, the UN has given help to over 50
variety of levels in the world. million refugees.
Effective global governance – allow us to end - UN has given African countries money and
armed conflict and achieve levels of prosperity other kinds of help so that they can feed
and progress. people and give them work to do.
Roles and Functions of the United Nations - helps give developing countries safe and
clean water
United Nations – intergovernmental
- fights drug abuse and improve lives of
organization that promotes international
children who live in poverty
cooperation and creates and maintains
international order. - helps people learn how to read and write.
-humanitarian crises
- climate change
North and South
- development aid
- considered as a socio-political division which
- human rights created a development gap among nation-
borderless diseases (pandemic) states.
- comprised of only one quarter (25%) of the - non-aligned world, distinct from the First
total global population world (capitalist) and Second
(socialist/communist).
- richer and more economically developed
region - became a quick-and-easy referent for the
“poor world” because it has been
- accounts for over 90% of all manufacturing underdeveloped by the rich or first world,
industries through processes of globalization and
capitalist expansion.
- about 95% of the population have enough
basic needs and have access to functioning
education systems.
The “Three Worlds Theory”
The demise of second world brought about areas, and to promote the use of surplus and
new terms for the socio-economically divided marginal lands.
planet – that is the wealthy “Global North” and
the impoverished “Global South”. Characteristics of Developed Country
Global North mostly covers the First World, - Human Development Index
with mush of the Second World. - Per Capita Income
Characteristics of LDCs
Socio-economic Factors - Inadequate Technology and Capital
1. Occupation - Low Saving Rates
2. Education - Dual Economy
3. Income - Varying Dependence on International Trade
4. Wealth - Rapid Population Growth (1.6% to DC’s 0.1%
5. Where someone lives yearly)
Asian Regionalism
Difference between Regionalization and
- is the product of economic interaction, not
Globalization
political planning.
REGIONALIZATION GLOBALIZATION
NATURE divides and area promotes
- it does not only make Asian economies richer
into smaller integration of
but also make Asian countries closer together. segments called economies
regions across state
borders around
the world
MARKET monopolies are allows many
Asia was colonized by variety of major powers
more likely to corporations to
that had left behind specific social, political, develop – one trade on
and economic legacies. producer control international
supply of good or level; allows
The multiplicity of colonial experiences served services, and entry free market
to emphasize differences among countries and of new producer is
societies of Asia. prevented of highly
restricted.
Cold War also divided the Asian Region. does not support Acceleration to
CULTURAL multiculturalism multiculturalism
ASEAN – the first major regional player to AND through free
emerge and has been the center of regional SOCIETAL
and
RELATIONS
developments, including: APEC, ARF, ASEAN inexpensive
Plus Three, and the East Asian Summit. move of people
regionalized area globalized
does not get international
involved in the communities
Regionalization vs. Globalization AID affairs of other are more willing
areas. to aid countries
Processes of globalization and regionalization stricken by
reemerge during the 1980s and heightened disasters
after the end of Cold War in the 1990s. advance globalization
TECHNOLOGICAL technology is has driven
Globalization – global. The increased flows of ADVANCEMENT rarely available in great advances
goods, services, capita, people, and one country or in technology
region
information across borders. (Jacoby and
Meunier, 2010)
Regionalization – regional. The societal Integration of Asia
integration and often undirected process of
Regional Integration – process by which two or
societal economic interaction. (Hurrell, 2007)
more nation-states agree to co-operate and
- is the formal process of intergovernmental work closely together to achieve peace,
stability, and wealth.
collaboration between two or more states
(Ravenhill, 2008) In Asia, Southeast Asian countries have
already formed: