1.

1 GLOBALIZATION
o Conceptualization, Origins, and History
GLOBALIZATION IS
CONTEMPORARY,

Why?
 GLOBALIZATION
• Definition (Ritzer, 2011):
• Trans planetary processes involving the increasing
liquidity and growing multi-directional flows as
well as the structures they encounter and create.
• We are living in the “global age” (Albrow, 1996).
• The most important change in human history
(Bauman, 2003)
 GLOBALIZATION
• set of processes through which the world is becoming “a single
place” (Robertson & Chirico, 1985).
• “ G l o b a l i z a t i o n refers to the expansion and
intensification of social relations andconsciousness across
world-time and world-space” (Steger,2010)
 GLOBALIZATION
• A set of processes through which the world is becoming “a single
place”:
• People feel increasingly connected in many waysso that they feel asif
they are part of a single world
o Is Syria solely responsible for theirproblems?
o What is the most important issue forAmericans today? Why do
you know this?
• There are events in one part of the world impact that people living far away
with a greater immediacy (travel ban, closure of tourist sites, labour ban)
REALIZATIONS FROM GLOBALIZATION
• Avoid parochialism
o avoid isolationist minset;
o avoid apathy/ encourage empathy and mutual learning;
o what is happening beyond our borders: north and south?
o beyond ASEAN?
o beyond Asian?
REALIZATIONS FROM GLOBALIZATION
• World teaches us more about our own society
o standard of living, health of our ASEAN
neighbors?
o why do we need to abide by global standards in
education, tourism, human rights, IP Rights, etc?
REALIZATIONS FROM GLOBALIZATION
• Increasing interaction of Filipinos to the world
o OFW;
o Internet and Social Media;
o Cheaper travel;
o Presence of MNCs.
o Influx of Financial Capital/
 Figure 1:
Foreign-Born Migrants, 2005 (millions)
 Figure 2:
Stock of Foreign Direct Investment, 2006 ($ billions)
REALIZATIONS FROM GLOBALIZATION
• Globalization: inherently interdisciplinary
o See contemporary world through a broad lens
o Allows us to examine various globalizing processes:
 Forces us to ask questions re. global citizenship,
ICC membership, implications of trade
agreements, foreign debt, etc.
 Human costs
HUMAN COSTS OF JPEPA
oNURSES & CARE WORKERS:
Ended-up returning to the Philippines.
oCONCERNS: Difficulty in learning the
language & culture, rigid training on
Japanese health facilities before taking
another licensure exam, change of
terms of payment.
oSTATISTICS: 1,200 Filipino nurses PH ASSOCIATION OF NURSES: “JPEPA is a
went to Japan (2009), 60 over 200 bad deal for Filipino nurses & caregivers
Filipino nurses passed the licensure working in Japan”
exam (2010-2015), 56 over 60 Filipino
nurses excluding the 275 caregivers
(2016).
 HUMAN COSTS OF MAJOR POLITICAL-
ECONOMIC EVENTS
• BREXIT;
• Protectionists policies of President Trump;
• The influx of FDI.
 THE CONTEMPORARY WORLD
• Globalization reaches into every dimensionof social life and
more deeply than we might imagine into each of ourlives.
o globalization is the phenomenon that influences our
choice of clothing, entertainment, hygiene
o events in one country can have repercussions across the
world/ do youagree?
• globalization is an inescapable phenomenon.
o how does globalization affect your decisions, goals?
THE CONTEMPORARY WORLD
 THE CONTEMPORARY WORLD
• Globalization is a centuries-old phenomenon of “increasing
interactions” gradually involving more people in more
parts of the world (explorations, silk road, colonization).
THE CONTEMPORARY WORLD
 THE CONTEMPORARY WORLD
• Contemporary period is significantly differentfrom the past.
• Every person and society is now “caught” in the same webs of
worldwide web.
• Contemporary social life has grown beyond its societal
attachments
The types of goods imported by the United States has
changed drastically over the past 84 years.

Figure 3:
The US Import Industries, 1925-2009
The types of exported by the United States has also changed
drastically over the past 84 years.

Figure 4:
The US Export Industries, 1925-2009
 EXPERIENCING GLOBALIZATION
• Students meet friends thru socialmedia and games?
• The products we use are made of materials derived from
different parts of theworld.
• Shared experiences in sports, education (“US” model,
“internationalization”) and medicine.
• Globally standardized models of education, business,
entertainment, etc.
 EXPERIENCING GLOBALIZATION
However...
• Increasing interaction and interdependence increases
contention and conflict (i.e. guided democracy)
UNITED STATES OF AMERICA
RUSSIAN FEDERATION
PEOPLE’S REPUBLIC OF CHINA
 EXPERIENCING GLOBALIZATION
However...
• Determining who makes the critical decisions on the rules of
conduct across political borders and who oversees
accountability.
 EXPERIENCING GLOBALIZATION
However...
• It is impossible to turn the clock back (close your door?) on
globalization;only change direction (forgo US relations in favor of
China, EUto ASEAN)
 DEFINING GLOBALIZATION
• Differentiating globalization from other terms:
o International
o Multi-national
o Transnational
o Supranational
 DEFINING GLOBALIZATION
• INTERNATIONAL
• Any type of relationship, governmental or non-
governmental, that involves more than one country.
o “international sociological assoc., international
journal, international school, etc.
o Bilat agreements/ treaties: agreements between
nations.
 DEFINING GLOBALIZATION
•MULTI-NATIONAL AND MULTI-LATERAL
•Forms of internationalism but more restricted in their use.
o multi-national: primarily used in reference to
corporations (e.g. headquarters, subsidiaries, production
facilities in different countries).
o multi-lateral: affiliations among more than two
governments (e.g. EU,ASEAN, APEC, NAFTA)
 DEFINING GLOBALIZATION
•TRANSNATIONAL
•Processes that interconnect individuals and social groups across
specific geo-political borders.
o Transnationality: Dual citizenship, Europeans, British.
o Transnational sports: Basketball, Baseball.
•Not “global” because it has not flowed on a trans-planetary basis
to a large portion of the world.
 DEFINING GLOBALIZATION
•TRANSNATIONAL
•Processes that interconnect individuals and social groups across
specific geo-political borders.
o Transnationality: Dual citizenship, Europeans, British.
o Transnational sports: Basketball, Baseball.
•Not “global” because it has not flowed on a trans-planetary basis
to a large portion of the world.
 DEFINING GLOBALIZATION
• SUPRANATIONAL
o Usually refers to an organization thathas been delegated authority
across thosegovernments.
o International group or union in which the power and influence of
member states transcend national boundaries or interests to share
in decision making and vote on issues concerning the collective
body.
o The European Union (EU) and the WorldTrade Organization
are both supranationalentities.
o International Monetary Fund, WB, AIIB
 Figure 5:
Trade in Goods
and Services
relative to GDP
 CYCLE OF GLOBALIZATION
• THE FIRST GOLDEN AGE OF TRADE
• 1890 to WWI (1914-1918)
• Dramatic improvements in transportation, such as the
steamship and the railroad, that allowed for a great
increase in the amount of international trade.
 CYCLE OF GLOBALIZATION
• THE SECOND GOLDEN AGE OF TRADE
• End of World War II and tariff reductions under the
General Agreement on Tariffs and Trade (GATT).
• Improved transportation costs contributed to the
growth in trade.
• Invention of Shipping Container on 1956, which
allowed goods to be moved by ship, rail, and truck
more cheaply than before.
 A SEA CHANGE IN SHIPPING 50 YEARS AGO
• 50 years ago Malcom McLean, an entrepreneur
from North Carolina, loaded a ship with 58 35-
foot containers and sailed from Newark, N.J., to
Houston.
• McLean was the first to design a transportation
system around the packaging of cargo in huge A fully loaded container ship
metal boxes that could be loaded and unloaded by can carry thousands of
containers.
cranes.
• Replacing break-bulk with cargo containers
dramatically reduced shipping costs,
reinvigorating markets and fueling the world
economy.
WAVES OF GLOBALIZATION (Therborn, 2000: 151-179)

1. Globalization of Religion, i.e. Christianity and Islam,

Protestantism (4th-7th Century).
2. European Conquest led by Spain and Portugal (Late 15th
Century).
3. Intra-European wars led by Napoleon Bonaparte (Late 18th-19th
Century).
4. Heyday of European Imperialism (Mid-19th Century to 1918).
5. Post WW2.
6. Post Cold War.
 MORE RECENT CHANGES
• Foreign Direct Investments: The flow of capital
across borders when a firm owns a company in
another country.
• Robert Feenstra: Majority of world flows of foreign
direct investment occur between industrial countries.
• 85% of the total world stock of FDI come from/
occurs among industrial/developed/OECD nations.
 Figure 6:
Stock of Foreign Direct Investment, 2006 ($ billions)
 FOREIGN DIRECT INVESTMENTS
• HORIZONTAL FDI:
• Between two developed economies
• When a firm from one industrial country owns a
company in another industrial country.
• Chrysler was bought by Mercedes-Benz in 1998
 HORIZONTAL FDI
• Reasons:
1. To avoid tariffs from exporting to a foreign market since it
can produce and sell locally in that market.
2. A foreign subsidiary abroad can provide access to the
domestic economy.
3. Sharing of technical expertise and avoidance of duplication
of products
 FOREIGN DIRECT INVESTMENTS
• VERTICAL FDI
• When a firm from an industrial country owns a plant
in a developing country.
• Low wages are the principal reasons that firms shift
production abroad to developing countries.
 VERTICAL FDI
• Reason:
1. Low wages in developing countries.

• Note: The traditional view of FDI, firms from developed

countries use their technological expertise + inexpensive
labor in developing countries to produce goods for the world
market.
 REVERSE-VERTICAL FDI
• Companies from developing countries buying firms in
the industrial one.
• Example: In 2007, Chrysler was sold to Fiat (An
Italian automobile firm).
• Reason:
1. Acquisition of technological knowledge, combined
with low wages in their home countries.
 FRICTIONS TO GLOBALIZATION
• Tariffs and Quotas
• Border Controls
• Geo-political events (i.e. wars)
 Figure 6:
Average
Worldwide Tariffs
on 35 countries,
1860–2000
 NORTH AND SOUTH DIVIDE
• Lack of Technology
• The negative effect of distance on trade according to the
gravity models is significant, but has grown smaller over
time due to modern transportation and communication.
• Technologies that have increased trade:
oWheels, sails, compasses, railroads, telegraph, steam
power, automobiles, telephones, airplanes, computers, fax
machines, Internet, fiber optics, personal digital assistants, GPS
satellites…
 GEO-POLITICAL FACTORS
• Political Factors (i.e. wars)
• Change the trade patterns much more than innovations in
transportation and communication.
• World trade grew rapidly from 1870 to 1913.
oThen it suffered a sharp decline due to the two world wars
and the Great Depression.
oIt started to recover around 1945 but did not recover fully
until around 1970.
• Since 1970, world trade as a fraction of world GDP has
achieved unprecedented heights.