CHAPTER 1- THE STUDY OF GLOBALIZATION

LEARING OUTCOMES:

AT THE END OF THE LESSON, THE STUDENTS SHOULD BE ABLE TO:

 Differentiate the competing conceptions of globalization

 Identify the underlying philosophies of the varying definitions of globalization; and
 Agree on a working definition for the course

DEFINITION OF GLOBALIZATION
The following are the many varying definitions of the term globalization:
1. Globalization is the increasing interaction of people, states, or countries through the
growth of the international flow of money, ideas and culture. Thus, globalization is
primary focused on economic process of integration that has social and cultural aspects.
2. It is the interconnectedness of people and business across the world that eventually
leads to global, cultural, political and economic integration.
3. It is the ability to move and communicate easily with others all over the world in order
to conduct business internationally.
4. It is the movement of goods, services, and people across the world in a seamless and
integrated manner.
5. It is the liberalization of countries of their impact protocols and welcome foreign
investment into sectors that are mainstays of its economy.
6. It refers to countries acting like magnets attracting global capital by opening up their
economies to multinational corporations.

Globalization as defined by other authors

1. Martin Albrow and Elizabeth King-those processes by which the people of the world are
incorporated into a single world,
2. Anthony Giddens (the Consequence of Modernity)- it is the intensification of
worldwide social relations which link distant localities in such a way that local
happenings are shaped by events occurring many mikes away and vice versa.
3. Roland Robertson, Professor od Sociology at the University of Aberdeen- it is the
compression the world and the intensification of the consciousness of the world as a
whole.
HISTORICAL FOUNDAION OF THE TERM “GLOBALIZATION”

 Others trace its history long before the European Age of Discovery and voyages to the
new world. Large scale globalization began in 1820s. In the late 19 th century and early
20th century, the connectivity of the world’s economies and cultures grew very quickly.
 In 1897, Charles Taze Russell (of the Watch Tower Ible and Tract Society) coined a
related term, corporate giants. This term refers to the largely national trusts and other
large enterprises of the time. I
 In 1930, the world “globalize” as a noun appeared in a publication entitles “TOWARDS
NEW EDUCATION” where it denoted a holistic view of human experience in education
 In the late 1970’s the word “globalization” was coined. In 2013 this term was used to
mean “borderless society “referring to international migration.
 In the early part of 1981, the term “globalization” had been used in its economic sense.
However in the late of the half of the 1980’s, Theodore Levitt popularized the term
“globalization” by bringing it into the mainstream business audience..
 Lately in 2000, the IMF identified four (4) basic aspects of globalization:
1. trade and transactions
2. capital and investment movements
3. Migration of knowledge
4. Dissemination
 It is only in 2017 when the word “globalization” was often used in teaching, in
discussion, in meetings and conferences, in lectures, etc.
 Up to this time, the phenomenon of globalization is now in full swing in all academic
disciplines.

INDICATORS OF GLOBALIZATION

 JET ENGINE, THE INTERNET, E-BANKING, E-BOOKS, E-BIKE, THE MRT, LRT AND OTHER
INVENTIONS OF SCIENCE AND TCHNOLOGY ARE ATTRIBUTABLE TO THE SPREAD OF
GLOBALIZATION.
 Environmental changes challenges such as global warming, cross boundary water, air
population, and over fishing of the ocean are linked with globalization
 Globalizing process affect and are affected by business and work organization,
economies, socio-cultural resources and the natural environment.
 Academic literature commonly subdivides globalization into three (3) major areas”
1. Economic globalization
2. Cultural globalization
3. Political globalization

NATURE OF GLOBALIZATION
Globalization is a conglomerate of various multiple units located in the different parts of the
globe which are linked by common ownership.. The multiple limits draw on parts of the globe
but all are linked by common ownership. Multiple units draw a common pool of resources, such
as money, credit, information, patents, trade names and control systems. The units respond to
some common strategy. Product presence is in different markets of the world. Human
resources are highly diverse. Transactions involving intellectual properties such as copyrights,
patents, trademarks, and process technologies are across the globe.
DIMENSIONS OF GLOBALIZATION
1. Planning to expand the business on a worldwide scope
2. Giving up the distinction between domestic and foreign market and instead developing
a global outlook of such business.
3. Locating the production and physical facilities of the business by considering global
business dynamics irrespective of national consideration.
4. Creating product development and production planning on a global market sphere.
5. Global sourcing of the factors of production such as raw materials components,
machinery, technology, finance, and others that are obtained from the best source
anywhere in the world.
6. Global orientation or organization structure and management culture.

REASONS FOR GLOBALIZATION

Why do we have to globalize especially at this contemporary world? Here are the reasons:
1. Rapid shrinking of time and distance across the globe. One can easily cross the bridge
going to the other side of the market place due to advance tools of technology than
before.
2. Domestic markets are no longer rich as a consequence of many interlocking factors.
3. Companies and institutions go global to find political and economic stability which is
relatively good in other countries than the country of origin.
4. To get technological and managerial know-how of other countries due to their
advancement in science, technology, education, health and other fields of discipline
5. To reduce high transportation costs if one goes globally using the advance tools of
communication and information.
6. To be close to raw materials and to markets for their finished products which afre not
available in the country of origin.
7. The creation of the World Trade Organization (WTO) had made it possible in stimulating
increased cross border trade. There are other world bodies like the UN and several
arbitration bodies where countries agree.

STAGES OF GLOBALIZATION
STAGE 1
The first stage is the arm’s length service activity of an essentially domestic company/institution
which moves into new market overseas by linking up with local dealers and distributors.
STAGE 2
The company/institution takes over these activities on its own.
STAGE 3
The domestic –based company institution begins to carry out its own manufacturing marketing
and sales in key foreign markets.
STAGE 4
The company institution moves to full insider position in these markets supported by complete
business system including Research and Development (R&D) and engineering. However the
headquarters mentally continues to dominate.
STAGE 5
The company/institution moves towards a genuinely global mode of operati0n. Global
localization happens, that is, the company/institution serves local customers in markets around
the globe responding to their needs. This requires an organizational transition i.e the company
must denationalized its operations and create s system of values shared by global managers.
MERITS/ADVATAGES OF GLOBALIZATION
1. Global competition and imports keep a lid on prices such that inflation is less likely to
derail economic growth.
2. An open economy spurs fast innovation with fresh ideas from abroad.
3. Export jobs often pay more than the other jobs.
4. Unfettered capital flow keeps interest rates low.
5. Living standards go up faster.
6. Productivity grows more quickly when countries produce goods and services in which
they are of comparative advantage.
7. Countries liberalize their visa rules and procedures so as to permit the full flow of
people from country to country.
8. It results in freeing up unproductive sector to investment and the productive sector to
export related activities resulting in a win-win situation for the world economy.

DEMERITS/DISADVANTAGES OF GLOBALIZATION
1. Several people lose their jobs when companies import cheap labor or materials or shift
production abroad.
 2. Workers face pay cut demands from employers who often threatens to export jobs.
3. Unregulated globalization can cause serious problems to poor and developing countries
in terms of labor force, wages, benefits, job termination, and others.
4. High foreign stake on industries where it is not necessarily needed could affect
economic growth of domestic enterprise.
5. Sovereignty of a country and company/institution may be at stake.

IMPORTANCE OF STUDYING GLOBALIZATION

1. There is a greater demand in business and industry, health, engineering and technology
to have people who can work with people of other nations and cultures.
2. There is a greater demand of promoting the local business and indudtries to other
countries and if needed be, owners travel independently and internationally for a better
promotion.
3. The contemporary world face global challenges that will take interdisciplinaty groups to
solve these challenges. These challenges are:
a. How to provide access to clean water;
b. Clean environment
c. Clean renewable energy that is affordable to everyone
d. How to deal with the unpredictable climate change
These global challenges need to be solved as soon as possible through the gathering
and sharing of information across disciplines, institutions and other entities in a
global scale.
4. Creating meaningful, harmonious and workable relationship that link globally is an
important aspect of the merits of globalization, especially if one wish to be the president
of the future generation,
5. Knowledge of the merits, demerits and reasons for globalization will enable the students
to work as model of collaborative international team in the near future along the areas
of business, education, health science, arts, engineering, hotel industries, etc. and
discuss best products in these areas.

IMPORTANCE OF GLOBALIZATION OF EVERYONE

 Expansion of local economies and business into a broader market place.

 Small businesses have gotten active in the global environment as the internet and
mobile technology have enabled communication across continents and countries.
 The overall need of business to compete
 As people move to different parts of the world, hey spread different kinds of ideas
perspective and customs.
THE THEORY OF COMPARATIVE ADVANTAGE
Globalization is grounded on the theory of Comparative advantage “Countries that are good in
producing particular food are better of exporting it to other countries that are less efficient at
producing that good.” Conversely “countries that are not efficient in producing goods must
import these goods.
The underlying assumption here is that not all countries are good at producing all sorts of
goods, hence, they benefit by trading with each other. Further because of the wage differential
and the way which different countries are endowed with different resources, countries stand to
gain by trading with each other.
PHILOSOPHY UNDERRLYING GLOBALIZATION
Globalization is one of the most widely spread recent cultural, social, economic and political
phenomenon which has strong marked the discourse of the humanities and social sciences.
1. The concept of globalization has only recently been widely accepted and adapted—
words like global, globality, globalization, globalism as well as the concept of global
market, global ecology, global citizen is more truly unknown up to the very end of the
20th century.
2. Discussion of the world issues used the derivatives of “international” rather than
“global” relations because of the recent popularized new concept of “globalization” has
resulted in innumerable contradicting definitions of the same.
3. While normatively speaking, more people associate globalization with progress,
prosperity and peace, some others consider it to be retrogression, disaster and decay.
4. The common and indisputable characteristics of all its definitions is the view that
globalization is “a progress of economic, social, cultural and political activity, which
transcends nations-state boarders and that it pertains to the world as a whole.”
5. Globalization is a complex and controversial process of building the world as a whole
dueto the creation of global institutional structures and gloal cultural forms like free
market (economic unification) of the world with uniform patterns of production and
consumption.
6. Various ideological movements of resistance to globalization have been emerging in
response tro globalization such as violent and destructive mass demonstrations staged
in various countries are manifestations of resistance.

Finally, based on the above philosophical dimensions underlying globalization is the free
movement of goods, services and people across the world in a seamless and integrated
manner. It can be thought of to be the result of the opening up of the global economy and the
concomitant increase in trade between nations in this contemporary world.
The point her is that globalization has had positive and negative effects and therefore a deep
approach is needed when discussing the concept. What is undeniable is that globalization is
here to stay hence, it is better for countries in the global economy to embrace the concept and
live with it in this contemporary world.

STUDENTS LEARNING ACTIVITIES (This is an Individual activity)

Name:______________________________________________Score:____________
Date:_______________ ________________________________Time_____________
I. Words to know and understand (define the following terms according to your
understanding (don’t copy from the lecture.)
1. Globalization
2. Contemporary
3. Contemporary world
4. Philosophy
5. Dimension
II. Brush Up
a. What would be the working definition of globalization for your course?
b. Identify five stages of globalization
c. What is the importance of studying globalization?
d. When was the beginning of the contemporary world?
e. Why is the word “globalization” given emphasis or importance in today’s
contemporary world?
f. Identify the reasons for globalization
g. What are the indicators of globalization?
h. What is the theory of comparative advantage?
III. Draw or post inside a box the following data/information and write a brief
description of what you have drawn
1. Contemporary World
2. The Phenomenon of globalization
3. Cyber world _(The world tomorrow)
IV. Write an essay consisting of 150-300 words with this topic “What Globalization
Means to Me”
V. REFLECTION TIME
Direction: Below is a reflection figure that looks like a human figure. Determine
what:
 1. You have learned (the knowledge that serves as your foundation to stand
and keep.
2. The things that you realized and appreciated (attitude toward learning)
3. The things you have discovered (skills that you will cherish in life.)

Fill each part of the reflection figure. Share it to the whole class.

REFLECTION FIGURE

Things I have learned

(knowledge)

Things Have realized and appreciated

(Attitudes)

Things I have discovered

(Skills)