MARIE FE D. DE GUZMAN, Ed D.

Associate Professor V
Republic of the Philippines
PRESIDENT RAMON MAGSAYSAY STATE UNIVERSITY
Iba, Zambales

College of Industrial Technology

Contemporary World
Prepared by:
Jhon Kenneth Macandog
Jay Ramos
Jericho Galecio
Julie Ann Miraflor
Reza Rebultan
Raffy Aquinon
Vads Apinoll
Eveth Quitoriano
Joyce An Altares

Submitted to:
Yeon Hee Echaure Ye
Instructor
GLOBALIZATION
 Globalization is the spread of products, technology, information, and jobs
across national borders and cultures.
 In economic terms, it describes an interdependence of nations around the
globe fostered through free trade.
 Globalization motives are idealistic, as well as opportunistic, but the
development of a global free market has benefited large corporations based
in the Western world.
 Its impact remains mixed for workers, cultures, and small businesses around
the globe, in both developed and emerging nations.
 Arjun Appadurai is an Indian-American anthropologist recognized as a
major theorist in globalization studies. In his anthropological work, he
discusses the importance of the modernity of nation states and
globalization.

The 5 “Scapes” of Globalization

 Ethnoscape refers to the flow of people across boundaries.

 Mediascape is the movement of media around the world and how it allows
distant cultures to view each other. Often, it creates an image of a distant
culture that is skewed or narrow sighted.
 Technoscape refers to flows of technology.
 Ideoscape refers to the flow of ideas.
 Financescapes is the movement of money. Now with its much larger scale
of the World, money is even harder to follow than ever.
Ideoscapes is the movement of political ideas from one area to another.

Globalization is a social, cultural, political, and legal phenomenon. 

 Socially, it leads to greater interaction among various populations.

 Culturally, globalization represents the exchange of ideas, values, and
artistic expression among cultures.
 Globalization also represents a trend toward the development of single
world culture. 
 Politically, globalization has shifted attention to intergovernmental
organizations like the United Nations (UN) and the World Trade Organization
(WTO).
 Legally, globalization has altered how international law is created and
enforced.
 Globalization has sped up to an unprecedented pace since the 1990s, with
public policy changes and communications technology innovations cited as
the two main driving factors.
 China and India are among the foremost examples of nations that have
benefited from globalization.
 One clear result of globalization is that an economic downturn in one
country can create a domino effect through its trade partners.
The History of Globalization

 Globalization is not a new concept. Traders traveled vast distances in

ancient times to buy commodities that were rare and expensive for sale in
their homelands.

 The Industrial Revolution brought advances in transportation and

communication in the 19th century that eased trade across borders.

 Globalization has since sped up to an unprecedented pace, with public

policy changes and communications technology innovations cited as the two
main driving factors.

GLOBALIZATION
Advantages
 Proponents of globalization
believe it allows developing
countries to catch up to
industrialized nations through
increased manufacturing,
diversification, economic
expansion, and improvements
in standards of living.
 Outsourcing by companies brings
jobs and technology to
developing countries. Trade
initiatives increase cross-border
trading by removing supply-side
and trade-related constraints.
 Globalization has advanced social
justice on an international scale,
and advocates report that it has
focused attention on human
rights worldwide.
Disadvantages
 One clear result of globalization
is that an economic downturn in
one country can create a domino
effect through its trade partners.
 Globalization detractors argue
that it has created a
concentration of wealth and
power in the hands of a small
corporate elite which can gobble
up smaller competitors around
the globe.
 Globalization has become a
polarizing issue in the U.S. with
the disappearance of entire
industries to new locations
abroad. It's seen as a major
factor in the economic squeeze
on the middle class.

IMF (INTERNATIONAL MONETARY FUND)

 The International Monetary Fund (IMF) is an international organization that

aims to promote global economic growth and financial stability,
encourage international trade, and reduce poverty.

 It’s regards to the economic globalization.

  It is characterized by the increasing integration of economies around the
world through movements of goods, services, and capital across borders.

THE PURPOSE OF IMF (INTERNATIONAL MONETARY FUND)

 To promote international monetary cooperation;

 To facilitate the expansion an balanced growth of international trade and

contribute thereby to the promotion an maintenance of high levels of
employment and real income;

 To promote exchange stability, maintain orderly exchange arrangements

among members states, and avoid competitive currency depreciations;

 To assist in establishing a multilateral system of payments of currents

transactions among members and in eliminating foregin-exchange
restrictions that hamper worls trade.

THE FUNCTION OF IMF (INTERNATIONAL MONETARY FUND)

1. Exchange stability

2. Eliminating bop disequilibrium

3. Determination of par value

4. Stabilize economies

5. Credit facilities

International trade is the exchange of capital, goods, and services across

international borders or territories.

 In most countries, such trade represents a significant share of gross

domestic product (GDP). While international trade has existed throughout
history (for example Uttarapatha, Silk Road, Amber Road, scramble for
Africa, Atlantic slave trade, salt roads), its economic, social, and political
importance has been on the rise in recent centuries.

 Carrying out trade at an international level is a complex process when

compared to domestic trade.

 When trade takes place between two or more nations factors like currency,
government policies, economy, judicial system, laws, and markets influence
trade.
  To smoothen and justify the process of trade between countries of different
economic standing, some international economic organisations were
formed, such as the World Trade Organization.

 These organisations work towards the facilitation and growth of

international trade.

 Statistical services of intergovernmental and supranational organisations

and national statistical agencies publish official statistics on international
trade.

Gross Domestic Product (GDP) is the total monetary or market value of all the
finished goods and services produced within a country's borders in a specific time
period.

 As a broad measure of overall domestic production, it functions as a

comprehensive scorecard of the country’s economic health.

 Though GDP is usually calculated on an annual basis, it can be calculated

on a quarterly basis as well. In the United States, for example, the
government releases an annualized GDP estimate for each quarter and also
for an entire year.

 Most of the individual data sets will also be given in real terms, meaning
that the data is adjusted for price changes, and is, therefore, net of inflation.

 Gross Domestic Product (GDP) is the monetary value of all finished

goods and services made within a country during a specific period.

 GDP provides an economic snapshot of a country, used to estimate the size

of an economy and growth rate.

 GDP can be calculated in three ways, using expenditures, production, or

incomes. It can be adjusted for inflation and population to provide deeper
insights.

 Though it has limitations, GDP is a key tool to guide policymakers,

investors, and businesses in strategic decision making.

Foreign trade is exchange of capital, goods, and services across

international borders or territories.

 In most countries, it represents a significant share of gross domestic

product (GDP). While international trade has been present throughout
much of history, its economic, social, and political importance has been on
the rise in recent centuries.

International trade means trade between the two or more countries.

  International trade involves different currencies of different countries and
is regulated by laws, rules and regulations of the concerned countries. Thus,
International trade is more complex.

Bilateral trade is the exchange of goods between two nations promoting

trade and investment.

 The two countries will reduce or eliminate tariffs, import quotas, export
restraints, and other trade barriers to encourage trade and investment.

 In the United States, the Office of Bilateral Trade Affairs minimizes trade
deficits through negotiating free trade agreements with new countries,
supporting and improving existing trade agreements, promoting economic
development abroad, and other actions.

A multilateral trading facility (MTF) is a European term for a trading system

that facilitates the exchange of financial instruments between multiple parties.

 Multilateral trading facilities allow eligible contract participants to gather

and transfer a variety of securities, especially instruments that may not
have an official market.

 These facilities are often electronic systems controlled by approved market

operators or larger investment banks.

 Traders usually submit orders electronically , where a matching software

engine pairs buyers with sellers.

Import Trade - goods, services and products brought into a country and which
were bought from another country

Export Trade - the area of business or industry concerned with the export of
goods or services

Entrepot Trade - entrepot trade a commercial operation whereby goods are

imported into a country and re-exported without distribution within the importing
country (see IMPORTS, EXPORTS).

When did full economic Globalization begin?

According to Historian DENNIS O. FLYNN and ARTURO GIRALDEZ, the age of

globalization began when “all important populated continents began to exchange
products continuosly - both will each other directly and indirectly via other
continents – and in values sufficient to generate crucial impacts on all tradings
partners.”

Economic historian BARRY EICHENGREEN argues that the recovery of the US

really began when, having abandoned the gold standard.
Today the world economy operates based on what are called FIAT CURRENCIES.
THE BRETTON WOODS SYSTEM
BRETTON WOODS SYSTEMS was inaugurated in 1944 during the United Nations
Monetary and Financial Conference to prevent the catastrophes of the early
decades o fthe century from reoccuring and affecting international ties.
 Bretton woods agreed to create two Financial Institution
1. International Bank for Restruction and Development (IBRD OR WORLD
BANK)
2. International Monetary Fund
FRIEDRICH HAYEK and MILTON FRIEDMAN – had cause inflation by increasing
demand for goods without necessarily increasing supply.
THE GLOBAL FINANCIAL CRISIS AND THE CHALLENGE TO NEOLIBARALISM
 Neoliberalism cameunder significant strain during the global financial crisis
of 2007-2008 when the world experienced the greatest economic downturn
since the great depression
 The crisis can be traced back to thi. 1980s when the us systematically
removed various banking and investments restrictions
NEOLIBERALISM
 Neoliberalism a modified form of liberalism tending to favor free-market
capitalism. Despite dome of their claims, proponents of neoliberalism in
Latin America have no real interest in reproducing the free market of the
nineteenth century.
 However, even if the interest were there, it would not be possible.
Transnational corporations—with their centralized control of money, their
regulation of prices and profits, and their centrally planned management—
now dominate the world economy.
 This domination, along with the relentless pace of the ongoing technical-
scientific revolution, has irreversibly transformed the character of
competition in the global marketplace, introducing new forms of cooperation
and integration among industrialized countries. It is in this “new world
order” that we have to understand the neoliberal model.
Neoliberalism, promotes, above all, total freedom of movement for capital,
goods and services. It advocates the opening of economies, and competition in
the world market in conditions of absolute freedom.
 To achieve this, it attempts to remove controls on prices. Labor, in contrast,
is the only commodity, which is not considered free in the market, due
supposedly to the need for permanent extra-economic state regulation to
reduce its cost.
  This regulation can include everything from legal measures, to the
repression of strikes and the co-optation of union leaders.
 Neoliberalism would eliminate the regulatory functions of the state and
promote the denationalization and privatization of its goods and services.
Instead of the state, it favors using the market to determine distribution and
stimulation.
 The invisible hand of the market is to take care of the movement of
resources, the growth in productivity, the renovation of technology, and the
reinforcement of comparative advantages.
Friedrich August von Hayek CH FBA, often referred to by his initials F. A.
Hayek, was an Austrian-British economist and philosopher best known for his
defence of classical liberalism.
Milton Friedman was an American economist who received the 1976 Nobel
Memorial Prize in Economic Sciences for his research on consumption analysis,
monetary history and theory and the complexity of stabilization policy.
FINANCIAL CRISIS OF 2007–2008
 The financial crisis of 2007–2008, also known as the global financial crisis
and the 2008 financial crisis, was a severe worldwide economic crisis
considered by many economists to have been the most serious financial
crisis since the Great Depression of the 1930s, to which it is often
compared.
 It began in 2007 with a crisis in the subprime mortgage market in the United
States , and developed into a full-blown international banking crisis with the
collapse of the investment bank Lehman Brothers on September 15, 2008.
 Excessive risk-taking by banks such as Lehman Brothers helped to magnify
the financial impact globally.
 Massive bailouts of financial institutions and other palliative monetary and
fiscal policies were employed to prevent a possible collapse of the world
financial system.
 The crisis was nonetheless followed by a global economic downturn, the
Great Recession. The Asian markets (China, Hong Kong, Japan, India, etc.)
immediately impacted and volatilized after the U.S. sub-prime crisis.
 The European debt crisis , a crisis in the banking system of the European
countries using the euro , followed later.
GLOBAL FINANCIAL CRISIS
 Economic globalization involves a wide variety of processes, opportunities,
and problems related to the spread of economic activities among countries
around the world.
  There have been many periods in which it occurred, most recently including
the latter nineteen century to WWI, the quarter century after WWII, and the
late 1960s/early 1970s to the present.
 The latest period has involved several major trends, as capitalism has
spread throughout more of the world.

1. First, there has been an increased reliance on markets (versus government

involvement in the economy) by most nations (including industrialized
countries, developing countries, and formerly socialist countries like China
with over one-fifth of the world's population).
2. Second, many developing countries have shifted to the more open export-
oriented approach based on production for external trade from an import
substitution development strategy (production of essential goods for the
internal market).
3. Third, multinational corporations (MNCs) in manufacturing, service, and
finance sectors have moved into new tiers of countries and have established
burgeoning networks of subcontractors in many areas.
4. Fourth, since the late 1970s, economic globalization has also involved
structural adjustment policies (SAPs), mandated by the International
Monetary Fund (IMF) as a condition for granting countries loans. SAPs
require governments to take many steps that further promote globalization.
They also require austerity measures that fall heavily on the poor,
particularly women.
5. Fifth, there have been shifts in the power of key institutions internationally.
On the one hand, the influence of many national governments has been
eroded by the rising importance of institutions like the MNCs, the IMF, and
World Bank (WB), and trade organizations such as the

WORLD TRADE ORGANIZATION (WTO)

 On the other hand, there has been an increase in non-governmental

organizations (NGOs) advocating for the rights of groups of citizens (see
Pyle 1999 for more information regarding each of these five trends).

FEDERAL-AID HIGHWAY ACT OF 1944

 In the Federal-Aid Highway Act of 1944, the Congress acted on these

recommendations.
 The act called for designation of a National System of Interstate Highways,
to include up to 40,000 miles "... so located, as to connect by routes, direct
as practical, the principal metropolitan areas, cities, and industrial centers,
to serve the National Defense, and to connect at suitable points, routes of
continental importance in the Dominion of Canada and the Republic of
Mexico."
 On August 2, 1947, Commissioner MacDonald and Federal Works
Administrator Philip B. Fleming announced selection of the first 37,700
miles.
  The routes had been proposed by the State highway agencies and reviewed
by the Department of Defense. However, neither the 1944 act nor later
legislation in the 1940's authorized funds specifically for the Interstate
System. As a result, progress on construction was slow.
 The Federal-Aid Highway Act of 1956 called for uniform geometric and
construction standards for the Interstate System.
 The standards were developed by the State highway agencies, acting
through the American Association of State Highway and Transportation
Officials (AASHTO ) and adopted by the FHWA.
 The standards are included in the AASHTO publication A Policy on Design
Standards -- Interstate System available from the AASHTO web site.
Examples of design standards for the Interstate System include full control
of access, design speeds of 50 to 70 miles per hour (depending on type of
terrain), a minimum of two travel lanes in each direction, 12-foot lane
widths, 10-foot right paved shoulder, and 4-foot left paved shoulder.
 Initially, the design had to be adequate to meet the traffic volumes
expected in 1975. Later, the requirement was changed to a more general
20- year design period to allow for evolution of the System.
 On June 29, 1956, President Dwight Eisenhower signed the Federal-Aid
Highway Act of 1956. The bill created a 41,000-mile “National System of
Interstate and Defense Highways” that would, according to Eisenhower,
eliminate unsafe roads, inefficient routes, traffic jams and all of the other
things that got in the way of “speedy, safe transcontinental travel.” At the
same time, highway advocates argued, “in case of atomic attack on our key
cities, the road net [would] permit quick evacuation of target areas.”
 For all of these reasons, the 1956 law declared that the construction of an
elaborate expressway system was “essential to the national interest.”
 Eisenhower signed the Federal-Aid Highway Act of 1956, a few segments
of Route 66 had already been superseded by newer, wider, and safer roads.
 The act authorized federal funding for an Interstate Highway System of such
roads, and, despite an appeal by the state of Missouri on behalf…

FEDERAL AID HIGHWAY ACT OF 1956

 As nouns the difference between internationalism and globalism is that

internationalism is political, economic and cultural cooperation between
nations while globalism is an ideology based on the belief that people,
goods and information ought to be able to cross national borders unfettered.
 Globalism: universalism. For example, universal declaration of human
rights are embedded in all countries around the world and no country can
deny the spirit of it.
 Internationalism: connecting people all around the world where no
country has sovereignty, such as Switzerland.

ECONOMIC AND SOCIAL COUNCIL (ECOSOC)

  One of the six principal organs of the United Nations (UN), responsible for
the direction and coordination of the economic, social, humanitarian, and
cultural activities carried out by the UN.
 It is the UN’s largest and most complex subsidiary body.
 ECOSOC was established by the UN Charter (1945), which was amended in
1965 and 1974 to increase the number of members from 18 to 54.
 ECOSOC membership is based on geographic representation: 14 seats are
allocated to Africa, 11 to Asia, 6 to eastern Europe, 10 to Latin America and
the Caribbean, and 13 to western Europe and other areas.
 Members are elected for three-year terms by the General Assembly. Four of
the five permanent members of the Security Council have been continuously
reelected because they provide funding for most of ECOSOC’s budget, which
is the largest of any UN subsidiary body.
 Decisions are taken by simple majority vote. The presidency of ECOSOC
changes annually.

INTERNATIONAL COURT OF JUSTICE (ICJ)

 The International Court of Justice (ICJ) is the principal judicial organ of the
United Nations (UN).
 It was established in June 1945 by the Charter of the United Nations and
began work in April 1946.
 The seat of the Court is at the Peace Palace in The Hague (Netherlands). Of
the six principal organs of the United Nations, it is the only one not located
in New York (United States of America).
 The Court’s role is to settle, in accordance with international law, legal
disputes submitted to it by States and to give advisory opinions on legal
questions referred to it by authorized United Nations organs and specialized
agencies.
 The Court is composed of 15 judges, who are elected for terms of office of
nine years by the United Nations General Assembly and the Security
Council.
 It is assisted by a Registry, its administrative organ.
 Its official languages are English and French.

A world of Regions
Global divides North and South;

 Third World - is term for global cold war.

- Poorest rural areas . Today, the term i often used to describe the
developing countries of Africa,Asia,Latin,America and Oceana.
 Global South - formely labeled “third world countries” during the Cold war,
now often reffered to as “developing countries”
- Third world has been used less and less.
 Global North – Wealthy industrialized countries
 NORTH SOUTH
Rich Poor
Well Educated Underdevelopment
Good Medical Care Limited Education
Capitalism Higher Birth Rate
Supply and Demand Longer Life Expentancy

Latin American Experience

 The Latin American experience argues that democratic stability requires
policies that limit the society degree of substantive economic and social
inequality.
Asian Regionalism
 It is the product of economic interaction.

Regionalism
 It is the process of dividing an area into smaller segments called regions.
Globalization
 It is the process of international integration arising from the interchange of
world views,products,ideas, and other aspect such as technology etc.
Global Governance
 Is a movement towards political cooperation among transnational actors,
aimed at negotiating responses to problems affecting more than one state
or region.
 Global Gobernance is a purposeful order that emerges from institutions,
processes, norms, formal agreements, and informal mechanisms that
regulate action for a common good.
 Global governance encompasses activity at the international, transnational,
and regional levels, and refers to activities in the public and private sectors
that transcend national boundaries.
 The concept of global governance raises two sets of, as yet, unresolved
issues. 
United Nations
 The UN was established after World War II with the aim of preventing future
wars, succeeding the ineffective League of Nation adopted on 25 June 1945
and took effect on 24 October 1945, when the UN began operations.
Pursuant to the Charter, the organization's objectives include maintaining
 international peace and security, protecting human rights, delivering
humanitarian aid, promoting sustainable development, and upholding
international law.At its founding, the UN had 51 member states; there are
now 193, representing the vast majority of the world's sovereign states.

 The organization's mission to preserve world peace was complicated in its

early decades by the Cold War between the United States and Soviet Union
and their respective allies. Its missions have consisted primarily of unarmed
military observers and lightly armed troops with primarily monitoring,
reporting and confidence-building roles. UN membership grew significantly
following widespread decolonization beginning in the 1960s. Since then, 80
former colonies have gained independence, including 11 trust territories
that had been monitored by the Trusteeship Council.By the 1970s, the UN's
budget for economic and social development programmes far outstripped its
spending on peacekeeping. After the end of the Cold War, the UN shifted
and expanded its field operations, undertaking a wide variety of complex
tasks.

 The United Nations is an intergovernmental organization responsible for

maintaining international peace and security, developing friendly relations
among nations, achieving international cooperation, and being a centre for
harmonizing the actions of nations

UNITED NATION WAS CREATED MAJOR ORGANS TO AVOID ISSUES;

 The United Nations General Assembly is one of the six principal organs of
the United Nations, the only one in which all member nations have equal
representation, and the main deliberative, policy-making, and
representative organ of the UN.
 There are six main organs of the United Nations—the General Assembly, the
Security Council, the Trusteeship Council, the Economic and Social Council,
the International Court of Justice, and the Secretariat. The Court has its seat
at The Hague, Netherlands. All other organs are based at United Nations
Headquarters in New York.

 The General Assembly

- The General Assembly is the main deliberative organ of the United
Nations comprised of all Member States, each of which has one vote,
no matter its size or influence. It may discuss any matter arising
under the UN Charter.
 - General Assembly resolutions are only recommendations to the
Member States, but as they represent the majority of the world’s view,
they carry heavy moral weight and often lead countries to join
international agreements called treaties, conventions, and protocols,
etc., and, ultimately, have a positive influence in the world.

 The Security Council

- The Security Council has a primary responsibility under the UN Charter

to maintain international peace and security. Unlike the General
Assembly, the Security Council does not hold regular meetings. It can
be convened at any time, whenever international peace is threatened.
In fact, it meets almost every day.

 The Economic and Social Council (ECOSOC)

- The Economic and Social Council (ECOSOC) is the central body for
coordinating the economic and social work of the United Nations and
the UN System. The Council has 54 members which are chosen for
equal geographical representation and serve a three-year term. Voting
in the Council is by simple majority; each member has one vote.

 The Trusteeship Council

- The Trusteeship Council was assigned under the UN Charter to

supervise the administration of 11 Trust Territories—former colonies or
- dependent territories—which were placed under the International
Trusteeship System. The system was created at the end of the World
War II to promote the advancement of the inhabitants of those
dependent
- Territories and their progressive development towards self-governance
or independence.

 The International Court of Justice

- The International Court of Justice (ICJ) is the UN’s main judicial organ,
located in The Hague, Netherlands. Established in 1945, the ICJ, or
“World Court” assumed its functions in 1946.
- The Court settles legal disputes only between nations and not between
individuals, in accordance with international law. If a country does not
wish to take part in a proceeding, it does not have to do so, unless
required by special treaty provisions. Once a country accepts the
Court’s jurisdiction, it must comply with its decision. Since 1946, the
International Court of Justice has considered over 150 cases and issued
 numerous judgments on international disputes brought to it by states
involving economic rights, environmental
- protection, rights of passage, the non-use of force, non-interference in
the internal affairs of states, diplomatic relations, hostage-taking, the
right of asylum and nationality.
- It has also issued advisory opinions in response to requests by a range
of United Nations organizations. All judgments passed by the Court are
final and without appeal.

 The Secretariat

- The Secretariat is made up of an international staff working at UN

Headquarters in New York, as well as UN offices in Geneva, Vienna,
Nairobi and other locations.
- Their duties are as varied as the problems dealt with by the United
Nations. These range from administering peacekeeping operations,
mediating international disputes, surveying social and economic
trends, laying the ground work for international agreements to
organizing international conferences. The Secretariat is responsible
for servicing the other organs of the
- United Nations and administering the programmes and policies laid
down by them.
UNITED NATIONS:
 Maintain international peacekeeping and security
 Provide forum Children’s discussion
UNITED NATIONS SEVEN SPECIALIZED AGENCIES:
 Food and Agricultural Organization(FAO)
 International Labour Organization(ILO)
 International Monetary Fund(IMF)
 United Nations Educational, Scientific and Cultural Organization(UNESCO)
 United Nation Children’s Fund(UNICEF)
 World Bank(WB)
 Word Health Organization(WHO )