GLOBALIZATION

CONCEPTS
CHAPTER 1
GLOBALIZATION
 Globalization Concepts, Meanings,
Features, and Dimensions
Globalization is the process in which people, ideas and goods spread
throughout the world, spurring more interaction and integration between the
world's cultures, governments and economies .

Globalization is a process of interaction and integration among the

people, companies, and governments of different nations, a process driven by
international trade and investment and aided by 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 .

Globalization is about growing worldwide connectivity.

 There were similarities in features of those
prevailing wave of globalization before the outbreak
of the First World War in 1914 to the current wave.
There is an increase cross border- trade, investment,
and migration due to policy and technical
developments in the past few decades. It is in the
area of economic development that observers
believe the world has entered a new phase. Today’s
globalization is farther faster, cheaper, and deeper in
compared to earlier wave of globalization.
 One principal driver of globalization is
technology. Economic life is dramatically transformed
by advancement in information technology. All sorts of
individual economic actors like consumers, investors,
and businesses which are valuable new tools for
identifying and pursuing economic opportunities,
including faster and more informed analyses of
economic trends around the world, easy transfers of
assets, and collaboration with far-flung partners are
provided by information technologies
 Globalization is the process of integration of
economies across the world through cross-border
flow of factors product and information . According
to the International Monetary Fund (IMF)
globalization is the growing economic
interdependence of countries worldwide through
increasing volume and variety of cross border
transactions in goods and services and of
international capital flows and also through the
more rapid and wide diffusion of technology.
 Globalization is an expansion, and
intensification of social relations and
consciousness across world time and
world space. It is about growing
worldwide connectivity according to
Steger.
 Globalization is considered a multi-
dimensional process involving economic, political,
technological, cultural, religious and ecological
dimensions. It suggests a dynamic process of
change that results in either positive or negative
development. It leads to the creation of something
new; it involves the multiplication of social
connections and various activities that transgress
traditional and political, economic, cultural and
geographical lines
 Attributes, Qualities or Characteristics of
Globalization

1. It involves both the creation of new social

networks and the multiplication of existing
connections that cut across traditional, political,
economic, cultural, and geographical
boundaries.
2. Globalization is reflected in the expansion and the
stretching of social relations, activities, and connections

3. Globalization involves the intensification and

acceleration of social exchanges and activities

4. Globalization processes do not occur merely or an

objective, material level but they also involve the
subjective plane of human consciousness. Without erasing
local and national attachments, the compression of the
world into a single place has increasingly made global the
frame of reference for human thought and action.
 Historical Periods of Globalization
❑ The Prehistoric Period (10000 BCE-3500 BCE) In this earliest phase of
globalization, contacts among hunters and gatherers – who were
spread around the world – were geographically limited. In this period
due to absence of advanced forms of technology, globalization was
severely limited.

❑ The Pre-modern Period (3500 BCE- 1500 CE) In this period the invention
of writing and the wheel were great social and technological boosts
that moved globalization to a new level. The invention of wheel in
addition to roads made the transportation of people and goods more
efficient. On the other hand writing facilitated the spread of ideas and
inventions
❑ The Early Modern Period (1500-1750) It is the period between
the Enlightenment and the Renaissance. In this period,
European Enlightenment project tried to achieve a universal
form of morality and law. This with the emergence of European
metropolitan centers and unlimited material accumulation
which led to the capitalist world system helped to strengthen
globalization.

❑ The Modern Period (1750-1970) Innovations in transportation

and communication technology, population explosion, and
increase in migration led to more cultural exchanges and
transformation in traditional social patterns. Process of
industrialization also accelerated
❑ The Contemporary Period (from 1970 to present)
The creation, expansion, and acceleration of
worldwide interdependencies occurred in a
dramatic way and it was a kind of leap in the
history of globalization.
 Dimensions of Globalization
1. Economic Dimension This refers to the extensive development
of economic relations across the globe as a result of technology
and the enormous flow of capital that has stimulated trade in both
sources and goods .
❑ Major players in the current century’s global economic order
▪ Huge international corporations (General Motors, Walmart, Mitsubishi)
❑ International Economic Institutions (IMF, World Bank, The World Trade
Organization)
❑ Trading Systems
2. Political Dimension This refers to an enlargement and
strengthening of political interrelations across the globe.

3. Cultural Dimension This refers to the increase in the amount of

cultural flows across the globe. Cultural interconnections are at
the foundations of contemporary globalization.

4. Religious Dimension Religion is a personal or institutionalized set

of attitudes, beliefs, and practices relating to or manifesting faithful
devotion to an acknowledged ultimate reality or deity . It is the
most important defining element of any civilization as contrasted
with race, language, or way of life.
5. Ideological Dimensions Ideology is a system of widely
shared ideas, beliefs, norms and values among a group
of people. It is often used to legitimize certain political
interests or to defend dominant power structures.
Ideology connects human actions with some
generalized claims .Globalization is a social process of
intensifying global interdependence while globalism is
an ideology that gives the concept of neo-liberal
values and meanings to globalization.
 CHAPTER 2

THE GLOBAL
ECONOMY
 Origin of Economic Globalization
It can be traced from history the time when there was an
economic movement in Asia, Africa and Europe called the
Silk Road, a trade route which connects the East,
particularly China, and the West. This route brings us to
the history of how Philippines was discovered by the
Portuguese and Spain envoys in search of spices and
eventually led to colonization.

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 At this present day time, foreign expatriates
come to the country to manage their
company’s foreign subsidiaries. Likewise, the
Philippines send thousands of skilled workers to
the Middle East as construction workers,
seafarers, nurses ,etc.

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Economic globalization refers to
the expanding interdependence of
world economies.

4
The term global economy also refers
to the interconnected worldwide
economic activities that take place
between multiple countries.
These economic activities can have either a positive
or negative impact on the countries involved.
 The International Monetary Fund
(IMF) also defined Economic
Globalization as a historical process,
the result of human innovation and
technological progress(IMF,2008)

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 How does global economy work?
A global economy is one in which goods and
services are traded across national borders.
Because the trade is among sovereign nations,
those nations may enact trade restrictions that
alter free market out comes.

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 The New World Economy is characterized by:
1. More options for production. No matter what your
production process, the chances are that the same
capabilities exist elsewhere.
2. The chance to create new markets
3. Small firms can think big
4. A more level playing field

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 5. Networks are important
6. Culture is no constraint

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 Specific actors that facilitate economic globalization are highlighted as
follows:
1. The International Economic and Financial Organization
2. The International Governmental Organization (IGOs)
3. The Media
4. The Multilateral Development Banks
5. The Nation-States
6. The Non-Governmental Organizations (NGOs)
7. The Trans-National Corporations (TNCs)
8. The United Nations (UN) System

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Presentation title 14
Thank you
MARKET INTEGRATION
Chapter 2: Lesson 2
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.
 Integrated marketing allows you to spread your
marketing messages across multiple channels and
increases the chances of it being heard. Best of all
customers engaged through multiple channels tend
to spend more than other customers. Therefore
spreading your marketing message can increase your
return on investment.
Colonization and imperialism rose as
the new ways of putting order to the
economic interrelationships among
countries.
 --
Through colonialism, equity, corporate
ownership, management subsidiaries, and
central headquarters which supply goods
and services were establish through
colonialism.
 ▪ Brazil, Russia, India, China and South
Africa (BRICS) is an acronym for the
combined economies of Brazil, Russia,
India, China and South Africa. BRIC,

BRICS without South Africa, was originally

coined in 2003 by Goldman Sachs,
Economies which speculates that by 2050 these
four economies will be the most
dominant. South Africa was added to
the list on April 13, 2011 creating
"BRICS"
 ▪ The General Agreement on
Trade in Services (GATS) is the
first multilateral agreement
General
covering trade in services
Agreement on
which was negotiated during
Trade in
the last round of multilateral
Services (GATS)
trade negotiations, called the
Uruguay Round, and came into
force in 1995.
 ▪ deals with trade in goods. The
two primary objectives of
General GATTS are to ensure that all
Agreement on signatories are treated
Tariffs and Trade equitably when accessing
(GATT) foreign markets; and second, to
promote progressive
liberalization of trade
THANK YOU !
THE GLOBAL INTERSTATE
SYSTEM
Lesson 3
DEFINING “INTERSTATE”
A system of unequally powerful and
competing states in which no single state is
capable of imposing control on all others.
These states are in interaction with one
another in a set of shifting alliance and wars
and changes in relative power of states upsets
any temporary set of alliances, leading to
restructuring of balance of power”
DEFINING “STATE”
States are independent political
communities each of which possesses a
government and assert sovereignty in
relation to a particular portion of the
earth’s surface and particular segment of
human population (Hedley Bull)”
NATION
The concept of nation emphasizes the
organic ties that hold groups of people
together and inspire a sense of loyalty
and belonging – i.e., ethnicity, language,
religion, and others (Schattle, 2014)
 STATE NATION
• A legal and political entity • A socio-cultural entity
• Linked to a territory • Linked to a group people
• Exist with sovereignty • May exist even w/o
• Established consciously sovereignty
• United by law • Can be created
unconsciously
• United by bond and shared
history
NATION-STATE
❑This refers to modern countries and their
political apparatuses rules over a single
nation.

❑It is a political community that emanates

from civic society to legitimately execute
peace.
 The State and the Economic
Interdependence
• The belief that globalization imposes a forced choice
upon states either to conform to free market principles or
run the risk of being left behind is termed into a phrase
called “Golden Straitjacket”
• There are two things that will happen if a country is in
Golden Straitjacket: the economy grows and politics
shrinks. It is a straitjacket because it narrows the political
and economic policy choices of those in power to
relatively tight parameters
Neoliberalism
❑the intensification of the influence and dominance of
capital.
❑It values market exchange capable of acting as a guide
to all human action.
❑It emphasizes the significance of contractual relations in
the marketplace.
❑the social good will be maximized by maximizing the
reach and frequency of market transactions
Economic Sovereignty
The power or national governments to make
decisions independently of those made by other
governments. There are four diff. concepts of
sovereignty.
1. International legal Sovereignty,
2. Westphalian Sovereignty,
3. Interdependence Sovereignty and
4. Domestic Sovereignty.
 World’s Three Leading Financial
Institutions
1. World Bank (WB)- The international financial institution that
provides loans to countries of the world for capital projects. It
was established by the United Nations Monetary and
Financial Conference or the Bretton Woods conference.
2. International Monetary Fund (IMF)- It does so in three ways:
keeping track of the global economy and the economies of
member countries; lending to countries with balance of
payments difficulties; and giving practical help to member
3. World Trade Organization (WTO)-regulates international
trades deals with the rule of trade between nations, ensure
the trade will flows smoothly, predictably and freely as
possible. Act as forum in negotiation trade agreements
European integration
Is the process of industrial, political, legal,
economic, social and cultural integration
of states wholly or partially in Europe.
European integration has primarily come
about through the European Union and
its policies
European Union (EU)
Is an international organization
comprising 28 European countries and
governing common economic, social,
and security policies
Economic Integration
❑can be described as a process and a
means by which a group of countries strives
to increase their level of welfare.
❑It is an arrangement between different
regions that often includes the reduction or
elimination of trade barriers, and the
coordination of monetary and fiscal policies.
Seven Stages of Economic Integration
1. Preferential trading area (PTA
2. Free trade area
3. Customs union
4. Common market
5. Economic union
6. Economic and monetary union
7. Complete economic integration
Preferential Trade Areas (PTAs)
Happens when there’s an agreement on
reducing or eliminating tariff (tax or duty to be
paid on a particular class of imports or
exports) barriers on selected goods imported
from other members of countries within the
geographical region or areas.
Free Trade Agreements (FTAs)
Eliminate import tariffs as well as import
quotas between signatory countries.
These agreements can be limited to a
few sectors or can encompass all aspects
of international trade.
Custom Union
Removal of tariff barriers between
members, together with the acceptance
of a common or unified external tariff
against non-members
Common Market (CM)
All barriers to the mobility of people, capital
and other resources within the area in
question, as well as eliminating non-tariff
barriers to trade, such as the regulatory
treatment of product standards are removed
by CM aside from containing the provisions of
a customs union.
Economic Union
The trading bloc that has both a
common market between members, and
a common trade policy towards non-
members, although members are free to
pursue independent macro-economic
policies
Economic and Monetary Union (EMU)
Involves a single economic market, a
common trade policy, a single currency
and a common monetary policy.
Complete Economic Integration
The final stage of economic integration in
which member states completely forego
independence of both monetary and fiscal
policies.
Theories of European
Integration
Neo-functionalism
❑This theory focuses on the supranational institutions
of the EU of which the main driving forces of
integration are interest group activity at the
European and national levels, political party
activity, and the role of governments and
supranational institutions.
❑It is a theory of regional integration, building on
the work of Ernst B. Haas, an American political
scientist and Leon Lindberg, also an American
political scientist.
Intergovernmentalism
This theory provides a conceptual explanation
of the European integration process. The main
concept of the Intergovernmentalism is
emphasizing on the role of national states in
the European integration; in another words it
argues that "European integration is driven by
the interest and actions of nation states" . This
theory was suggested by Stanley Hoffmann
Liberal Intergovernmentalism
Application of rational institutionalism to
the field of European integration is the
aim of this theory.
Multi-level Governance (MLG)
Writers defined MLG as dispersion of
authority across multiple levels of political
governance. (Liesbet Hooghe and Gary
Marks )
 Transnational
Activism in States
Transnational Activism
Defined as the mobilization of collective
claims by actors located in more than
one country and/or addressing more
than one national government and/or
international governmental organization
or another international actor.
Social Movement
Is a type of group action. It refers to the
organizational structures and strategies
that may empower oppressed
populations to mount effective
challenges and resist the more powerful
and advantaged elites".
Global Justice Movement
Describes the loose collection of
individuals and groups often referred to
as a “movement of movements”, who
advocate fair trade rules and are
negative to current institutions of global
economics such as the World Trade
Organization
New Transnational Activism
Is as multifaceted as the internationalism. Although
globalization and global neo-liberalism are frames
around which many activists mobilize, the protests
and organizations are not the product of a global
imaginary but of domestically rooted activists who
are the connective tissue of the global and the
local, working as activators, brokers and
advocates for claims both domestic and
international
Social Media and the State
Social media is a computer-based
technology that facilitates the sharing
of ideas and information and the
building of virtual networks and
communities.
 CONTEMPORARY
GLOBAL GOVERNANCE
LESSON 4
 Global Governance or World
Governance
Is a product of neo-liberal paradigm shifts in
international political and economic relations . It is a
movement towards political integration of
transnational actors aimed at negotiating responses
to problems that affect more than one state or
region. It tends to involve institutionalization. These
institutions of global governance – the United
Nations, the International Criminal Court, the World
Bank, etc. – tend to have limited or demarcated
power to enforce compliance.
 Global Governance or World
Governance
The capacity of within the international system,
at any given moment to provide government-like
services and public goods in the absence of a world
government. It is a combination of informal and
formal ideas, values, rules, norms, procedures,
practices, policies, and organizations that help all
actors-state, international organization, non-
government organizations identify ,understand, and
address transboundary problems.
 Commonly used to
refer international
International intergovernmental
organizations on
Organization groups that are
(IOs) primarily made up of
member-states.
 Powers of International
Organization
1. Power of classification
2. Power to fix meanings
3. Power to diffuse norms
4. Because of these immense powers, IOs can be
sources of great good and great harm.
 As an intergovernmental
organization, the United
Roles and Nation is tasked to
Functions of the promote international
United Nations co-operation and to
create and maintain
international order.
 The United Nations (UN) in the world
of politics has the roles of preventing and
managing conflicts, regulating
armaments, championing human rights
Roles and and international humanitarian law,
Functions of the liberating the colonized, providing
economic and technical aid in newly
United Nations liberated countries, organizing elections,
empowering women, educating
children, feeding the hungry, sheltering
the disposed and displaced, housing the
refugees, tending the sick and
coordinating disaster relief and
assistance.
 1. Maintaining worldwide peace
and security
2. Developing relations among
nations
Four Main
3. Fostering cooperation between
Purposes of the nations in order to solve
UN Charter economic, social, cultural, or
humanitarian international
problems
4. Providing a forum for bringing
countries together to meet the
UN's purposes and goals
 The UN aims to save succeeding
generations from the scourge of war; to
reaffirm faith in fundamental human rights;
to establish conditions under which justice
and respect for the obligations arising from
treaties and other sources of international
law can be maintained; and to promote
social progress and better standards of life
in larger freedom
 Challenges of Global Governance in the
Twenty-first Century

It is a process which allows interconnectivity across

different borders and sovereign territories. Global
governance is governing, without sovereign authority,
relationships that transcend national frontiers. Global
governance has evolved as one of the most influencing
tools for globalization which has led to the foundation
of sustainable development projects around the globe.
 Challenges of Global Governance in the
Twenty-first Century
❑Issues that involve interwoven domestic and foreign challenges
include threats at the beginning of the century which include ethnic
conflicts, infectious diseases, and terrorism as well as a new generation
of global challenges including climate change, energy security, food
and water scarcity, international migration flows and new
technologies.
❑Within states the first trajectory or path is the depoliticization which can
be observed in the form of delegating decisions to independent
regulators and experts, central banks, or judiciaries.
❑A second trajectory is the rescaling of economic and social relations
well beyond the territorial boundaries of nation states, facilitated by
transnational legal arrangements that have their roots in national law
 Basic Elements of a State

1. Territory
The Role of the 2. People
Nation -State in
3. Sovereign Power ( the
Globalization authority of a state to
govern itself)
Nation- state role in globalization is complex. Since
nation-states are divided by physical and economic
boundaries, reduced barriers in international
commerce and communication are considered
their potential threat. Sovereignty of individual
nations is not abolished by expanded trade among
countries, instead globalization is a force that
changed the way nation-states deal with one
another, particularly in the area of international
commerce.
 In setting international commerce
policies, isolated states are forced to
engage to one another, while nation-
state’s domestic role unchanged. Roles
of some states were diminished while
others have exalted role is due to
interactions of various economic
imbalances.
 1. Poverty
Globalization’s 2. Environmental
pollution
Impact on the
3. Economic crisis
State
4. Organized crime and
terrorism
 Decision making processes in
globalization is complex as it takes place
in various levels such as sub-national,
national, and global which lead to the
growth of a multi-layered system of
governance.