• There are three types of Globalization
namely: POLITICAL, ECONOMIC,
Much has changed since time immemorial. Of
these changes, we can say that globalization is a
very important change
The internet for example allow us to know what
is happening to the rest of the world
Thomas Larsson (2001) saw globalization as the
“process of world shrinkage, of distances getting
shorter, things moving closer. It pertains to the
increasing ease with which somebody on one side
of the world can interact, to mutual benefit with
somebody on the other side of the world
• The world becomes smaller (shrinkage), a
metaphor used which means that it is
now easy to reach and it is more
convenient than before
• It is all easier for people to interact from
one place to another
• Many scholars gave and tried to define it
however, the results are different and
sometimes contradicting. Some
connotations pertain to progress,
development, and integration like
Larsson’s. While some see it as occurring
through and with regression, colonialism,
and destabilization (political)
• Globalization is the free movement of
products and services coming from
different countries around the globe
• It trades and promotes the products and
services
• It is the interdependence of countries
GEC-TCW – The Contemporary World
CULTURAL GLOBALIZATION
• POLITICAL – when we became familiar
with their political system, democrats,
republicans etc.
• When you change the idea of the
government, leadership, & processes
• This also where the government
seize the opportunity of making
trades with other countries like
investments
• ECONOMIC – exchange of goods and
products/services (imports from other
countries, different brands of gadgets,
currencies-exchange rates)
• CULTURAL – changes the way our culture
is in our viewing patterns / cultural
exchanges
• Martin Khor regarded globalization as
colonialization
• It is a by-product of colonialism
because it is shown on how we
exchange our culture and how easily
they adapted to what they can see
around them
• The reality of globalization makes us see
ourselves as part of what we refer to as
the “global age” (Albrow, 1996)
• Global Age refers to a period of time
when there is a prevailing sense of
the interconnectedness of all human
beings, of a common fate for the
human species and of a threat to its
life on this Earth
• Period when we are interconnected
with each other. Started during the
18th century
• One of the effects of globalization is it
promotes and increases interaction
between different regions and
populations around the globe
• Because of globalization, we are now
aware that there is a product that exist in
a different side of the world
• It also increases our brand awareness
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THE TASK OF DEFINING GLOBALIZATION
There are a total of 114 definitions of
globalization by the Geneva Center for Security
Policy (GCSP) in 2006
The word globalization first appeared in the
Webster’s dictionary in 1961 and definitions of
this word could be classified as either (1) and (2)
(1) broad and inclusive definitions
• Ohmae (1992) stated “globalization
means the onset of the borderless world
• Borderless World – means that it is
now easy for one country to barter
or trade to another country. There is
nothing that can stop them from the
movement of goods and products
from one country to another
• Broad and inclusive definitions include a
variety of issues that deal with
overcoming traditional boundaries,
however, implications of globalization is
not well defined due to its vagueness
• It means that it has now a lot of
issues now arising concerning the
positive and negative effects of
globalization
(2) narrow and exclusive definitions
• Robert Cox said that “the characteristics
of the globalization trend include the
internationalizing of production, the new
international division of labor, new
migratory movements from South to
North, the new competitive environment
that accelerates these processes, and
internationalizing of the state, making
states into agencies of the globalizing
world”
• Narrow and exclusive definitions are
better justified but can be limiting
because their application adheres only to
a particular definitions. No matter how
one classifies a definition of
globalization, the concept is complex as
the definition deals with either economic,
political, and social dimensions
GEC-TCW – The Contemporary World
Why study GLOBALIZATION?
• Globalization is many things to many
different people
• All of us became part and parcel of
globalization and vice versa
• We are not just consumer but also
producers
• Globalization is changing as human
society develops. It has happened before
and is still happening today. We should
expect it to happen in the future
• Globalization is here to stay because
majority of what we are enjoying came
from other countries
• Overall, the concept of globalization is
not easy to define because in reality
globalization has a shifting nature
• The perspective of the person who
defines globalization shapes its
definition
• Arjun Appadurai (1996) said,
“globalization is a “world of things”
that have different speeds, axes,
points of origin and termination, and
varied relationships to institutional
structures in different regions,
nations, or societies
• in this article, “The Globalization of
Nothing,” Ritzer (2003) said,
“attitudes toward globalization
depend among other things, on
whether one gains or loses from it
METAPHORS OF GLOBALIZATION
• to better understand globalization, we
will utilize metaphors
• Metaphors make use of one term to help
us better understand another term
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SOLIDITY
• Refers to barriers that prevent or
make difficult the movement of
things
• Barriers that can either be natural or
man-made
• Today’s globalization paved way for
people, things, and information to
harden overtime. Consequently, they
have limited mobility (Ritzer, 2015)
Examples of natural solids are landforms and
bodies of water. Man made includes the Great
wall of China and the Berlin Wall and the
imaginary line such as the nine-dash line used by
the People’s Republic of China in their claim of the
South China Sea
These solid barriers still exist; however, solids
have the tendency to melt and are increasingly
becoming liquid. Liquid as a state of matter takes
the shape of its container. Liquids are not fixed.
The movement of the liquid is difficult to stop
(viral videos, internet sensations)
LIQUIDITY
• Refers to the increasing ease of
movement of people, things,
information, and places in the
contemporary world
• Tends to melt whatever stands in its path
(specially solids) (Ritzer, 2015)
• Liquids flow (foods, illegal and legal
information etc.)
FLOW
• The movement of people, things, places
and information brought by the growing
“porosity” of global limitations (Ritzer,
2015)
Liquidity and Solidity are in constant interaction;
however, liquidity is the one increasing and
proliferating today
GEC-TCW – The Contemporary World
• Theories on globalization see it as a
process that increases either
homogeneity or heterogeneity
• Homogeneity and Heterogeneity both
gives us the idea about the effects of
globalization
HOMOGENEITY
• refers to the increasing sameness in the
world as cultural inputs, economic
factors, and political orientations of
societies expand to create common
practices, same economies, and similar
forms of government.
McDonaldization is the process by which
Western societies are dominated by the principles
of fast-food restaurants (Ritzer, 2008)
• Jihad is the alternate of “McWorld”
which refers to the political groups that
are engaged in an “intensification of
nationalism and that leads to greater
political heterogeneity throughout the
world” (Ritzer, 2008)
• We are now becoming dominated by
small number of big corporations
HETEROGENEITY
• Pertains to the creation of various
cultural practices, new economies,
and political groups because of the
interaction of elements from
different societies in the world
• Heterogeneity that refers to the
differences because of either lasting
differences or of the hybrids or
combinations of cultures can be
produced through the different trans
planetary processes
• Culture is associated with cultural
hybridization
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PROGRESS
DEVELOPMENT
INTEGRATION
Progress - because once a country tried to trade
with another country, their GDP, and financial
capability increases
Development - every time that there is an
exchange of information, there are certain
developments that happens (infrastructure,
economic activities, businesses, opportunities)
Integration - with the integration of the culture
of other countries, the way people lives now is
greatly influenced by other culture
T. Lharsson, it pertains to increasing ease with
which somebody on one side of the world can
interact, to mutual benefit with somebody on the
other side of the world
• increase ease means that it is now easy
for the people to communicate with
anyone across the globe 24/7
Ritzer, it is a trans planetary process or a set of
processes involving increasing liquidity and the
growing multifunctional flows of people, objects,
places, and information
• trans planetary process (increasing
liquidity) – it’s now easy for people to
connect even when we are distant apart.
Manfred Steger – the expansion and
intensification of social relations and
consciousness across world time and across
world-space
GEC-TCW – The Contemporary World
• expansion and intensification of social
relations (across world time and across
world space) – the advent of changes
that happened from one country to the
other is brought by the exchange of
information that tends to expand from
one country to another.
• Expansion refer to both the creation of
new social networks and the
multiplication of existing connections
that cut across traditional, political,
economic, cultural, and geographic
boundaries
• Intensification – refers to the expansion,
stretching, acceleration of these
networks (Ex. trades and financial
markets)
Arjun Appadurai – different kinds of
globalization occur on multiple and intersecting
dimensions of integration that he calls “scapes”
• Ex. Ethnoscapes – global movement of
people (foreign people in a country where
they do not originate)
• Mediascapes – flow of culture (we
adopted the culture of other countries,
influence by their food, music, etc.)
• Technoscape – circulation of mechanical
goods and software (why we have
different brands of gadgets)
• Financescape – denotes the global
circulation of money [flow of money all
over the world] (the global circulation of
money let us increase our productivity,
economic viability in our country)
• Ideoscape – realm where political ideas
move around (political ideals and realism
are influenced of globalization)
DYNAMICS OF LOCAL AND GLOBAL CULTURE
CULTURAL DIFFERENTIALISM involves
barriers that prevent flows that serve to make
cultures more alike-so cultures remain
stubbornly different from one another
• which means that a certain country
remains to have different lifestyles with
MARANAN, ADRIAN
 other countries. Each culture is
stubbornly different from one another
CULTURAL HYBRIDIZATION is a mixture of
cultures and the integration of the global and the
local (what some refer to as “glocal”) leading into
unique combinations. It is important to remember
that many countries contribute to the sharing of
their culture (s) around the world
many new areas of the world, replacing
military dictatorships and communist
states (coming from the revolutionary
government of Bonifacio comes a
democratic ideas that we are using
today. )
• English Language – English has become
quite widespread as the international
second language throughout the world
• New Technologies – Satellite TV
• Global Sports Competitions – Winter /
Summer Olympics; World Cup in soccer

• they are not anymore different,

somehow, they work together.
• They still have their own culture but now,
with the mix or influences of other
countries.
• When languages is combined to form a
new language. The roots of our cuisines
has foreign influences.
In many ways, cultures are integrated/hybridized
as they “travel” around the world in different
products
The entertainment industry provides one
example: Hollywood makes movies for the world
(as does: Bollywood that makes more), but it
often remakes foreign films and gives them a
different cultural twist
Musicians increasingly sample sounds from
around the world and integrate those into new
genres (Indian hip-hop)

CULTURAL CONVERGENCE is when cultures are

subject to many of the same global flows and
tend to become more alike (cultural identity and
the attachment of culture to place are lost)

• their culture is loss forever and replaced

by another culture because of
globalization.
CULTURAL CONVERGENCE EXAMPLES

• Democratic Ideas – in the 1980s and

1990s democratic government spread to
GEC-TCW – The Contemporary World MARANAN, ADRIAN
 • This also denotes increased speed and
frequency of trading (books, music, etc.)
online

International Trading Systems

THE GLOBALIZATION OF WORLD ECONOMICS

Based on the history of the international
monetary fund (IMF) refers economic
globalization:
SILK ROAD (130-1453 BCE)
ECONOMIC GLOBALIZATION
• A historical process representing the • Oldest known international trade route
result of human innovation and • A network of pathways in the ancient
technological progress world that spanned from China to what is
• Characterized by the increasing now the Middle East and to Europe
integration (there is an increase in the • Silk Road was called such because one of
number of trades in terms of volume and the most profitable and highly prized
how the investment move all over the products traded through this network is
world at a faster speed) of economies silk
around the world through the movement • Silk road was international, but it was not
of goods, services, and capital across truly “global” because it has no ocean
borders routes that could reach the American
• Based on the IMF, the increasing continent
integration or the increase in trade
actually change as the world trade
(the percentage world GDP) in 1980 is
about 42.1% by the time of 2007, the
world GDP is now 62.9%. looking at
the figures, we can say that there is a
20% increase in the GDP of the world Age of Globalization
• With the increase trade, this also • Began when all important populated
means increase of investment and continents exchange products
the investment that flows to the continuously -both with each other
world as of 1982 was about 57B USD directly and indirectly via other
and when 2015 hits it became 1.76T continents -and in values sufficient to
USD. It just show a increase in global generate crucial impacts on all trading
trade. Speed and frequency of trading partners
• This speed happens because of the • Actually started in Philippine shores
proliferation of the use of
supercomputers and the internet
• Whereas, increasing integration here
means, increasing trade. This means that
investments are moving all over the
world at faster speeds

GEC-TCW – The Contemporary World MARANAN, ADRIAN


GALLEON TRADE (1571)
• Connected Manila, Philippines and
Acapulco, Mexico
• During the galleon trade, the Americas
were now directly connected to Asian
trading routes
• Countries completed with one another to
sell more goods as a means to boost their
country’s income
• Part of the age of mercantilism
• To defend their products from
competitors who sold goods
cheaper, those regimes (mainly
monarchies), imposed high tariffs,
forbade colonies to trade with other
nations, restricted trade routes and
subsidized its exports
• From then on, since the Americas are now
connected to Asian trading routes, the
European now and China have their own
competitors in terms of selling and
trading their goods. Because of this
competitions, comes the age of
mercantilism
• MERCANTILISM – when one particular
country defend their products from
competitors who sold cheaper and goods
with other countries in the world.
Because of mercantilism, a country or
monarchy can impose high tariffs or tax
for big colonies to trade with other
nationalities (cause of colonialism)
• was also a system of global trade
with multiple restriction, because of
this, a more open trade system
emerge in 1867 when the UK and US
adopted the gold standard
• Because of mercantilism, majority of
the countries who are under the
GEC-TCW – The Contemporary World
colony of European countries cannot
anymore trade with other countries
UK and the US adopted the gold standard to
establish a common basis for currency prices and
a fix exchange rate system-all based on the value
of gold. Its goal was to create a common system
that would allow for more efficient trade and
prevent the isolationism of the mercantilist era
G0LD STANDARD
• A common basis for currency prices and a
fixed exchange rate system-all based on
the value of gold
• You can actually barter your product and
what you will use to barter is based on the
value of your gold
• Despite facilitating simpler trade, the
gold standard was still a very restrictive
system as it compelled countries to back
their currencies with fixed gold reserves
(WWI)
COMMODITY CURRENCY - currency that you have
will be based on the value of the gold that is
reserved in a certain country
Returning to a pure standard became more
difficult as the global economic crisis called the
Great Depression started
• whatever the amount of gold in the
particular currency, that is also the
amount of goods that you can trade your
gold for
GREAT DEPRESSION – the worst and longest
recession (low economic activity that had
happened in a county) ever experienced by the
Western world
Some economists argued that it was largely
caused by the gold standard, since it is limited the
amount of circulating money and therefore,
reduced demand and consumption
Recovery form this crisis really began when the
US abandoned the gold standard. Today, the
world economy now operated based on fiat
currencies
MARANAN, ADRIAN
FIAT CURRENCIES
• Currencies that are not backed by
precious metals and whose value is
determined by their cost relative to other
currencies
• Don’t have any intrinsic value
• This system allows governments to
freely and actively manage their
economies by increasing or decreasing
the amount of money in circulation as
they see fit
THE BRETTON WOODS SYSTEM
After 2 world wars, world leaders sought to
create a global economic system that would
ensure a longer-lasting global peace. To achieve
this was to set up a network of global financial
institutions that would promote economic
interdependence and prosperity
BRETTON WOODS SYSTEM
• Influenced by the ideas of British
economist John Maynard Keynes
• Keynes believed that economic crises
occur not when a country does not have
enough money, but when money is not
being spent and, thereby, not moving
• Prevents the catastrophes of the early
decades from reoccurring and affecting
international ties
• Various countries also committed
themselves to further global economic
integration through the General
Agreement on Tariffs and Trade (GATT) in
1947
• General Agreement on Tariffs and
Trade (GATT) - Main purpose was to
reduce tariffs and other hindrances to
free trade
GEC-TCW – The Contemporary World
• Conducted in order to reduce tariffs
and other hindrances in order for free
trade to stimulate
• Delegates at Bretton system agreed to
create 2 financial institutions:
• International Bank for
Reconstruction and
Development (IBRD, or World
Bank) – responsible for funding
postwar reconstruction projects
• International Monetary Fund
(IMF) – the global lender of last resort
to prevent individual countries from
spiraling into credit crises
NEOLIBERALISM AND ITS DISCONTENTS
• In 1970s, the price of oil rose sharply.
Arab countries used the embargo to
stabilize their economies and growth
which affected Western countries that
were reliant an oil
• “embargo” – a government order that
limits bargain partly
• To make matter worse, the stock market
crashed ending the Bretton Wood
System. The result was a phenomenon
called Stagflation
• STAGLATION – a decline in economic
growth and employment (stagnation)
that takes place alongside a sharp
increase in prices (inflation)
NEOLIBERALISM
• A new form of economic thinking that
became the codified strategy of the IMF,
WB, US Treasury Dept., and eventually
World Trade Organization (WTO)
WORLD TRADE ORGANIZATION (WTO)
• A new organization founded in 1955 to
continue the tariff reduction under the
GATT
• The politics they forwarded came to be
called the Washington Consensus
• Its advocates conceded that along the
way, certain industries would be affected
MARANAN, ADRIAN
 and die, but they consider this necessary
for long term economic growth
Washington Consensus
• Was made to make sure that any
government will be able to monitored in
terms of its spending and in terms for
them to reduce their debt
• Minimal government spending to reduce
government debt
• Privatization of government-controlled
services like water, power,
communications, and transport believing
that the free market can produce the best
results
• Pressured governments, particularly in
the developing world, to reduce tariffs
and open up their economies, arguing
that it is the quickest way to progress
THE GLOBAL FINANCIAL CRISIS AND THE
CHALLENGE TO NEOLIBERALISM
Neoliberalism came under significant strain
during the global financial crisis of 2007-2008
when the world experienced the greatest
economic downturn since the Great Depression. It
can be traced back to the 1980s when the US
systematically removed various banking and
investment restrictions
In the attempt to promote free market,
government authorities failed to regulate bad
investments (attempt for government for free
trade)
• Cheap housing loans
• Mortgage-backed securities’ (MBSs)
• Sub-prime mortgages
• High-risk mortgages
GEC-TCW – The Contemporary World
ECONOMIC GLOBALIZATION TODAY
Some form of international trade remains
essential for countries to develop in the
contemporary world
• The global financial crisis will take
decades to resolve. The world has
become too integrated. Whatever one’s
opinion with Washington’s consensus is,
it is undeniable that some form of
international trade remains essential for
countries to develop in the contemporary
world
Exports, not just the local selling of goods and
services, make national economies grow at
present
• with exportations, growth of large Asian
economies like Japan, China, Hong Kong,
and Singapore took place. While some
countries corporations and individuals
have been benefiting more than others
WTO-led reduction of trade barriers, known as
trade liberalization, has profoundly altered the
dynamics of the global economy
Developed countries are often protectionists as
they repeatedly refuse to lift policies that
safeguard their primary products that could
otherwise be overwhelmed by imports from the
developing world
• Japan’s determined refusal to allow rice
imports into the country to protect it’s
farming sector. “Rice is sacred”
• United States likewise fiercely protects
it’s sugar industry, forcing consumers
and sugar-dependent business to pay
higher prices
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Trade imbalances characterize economic
relations between developed and developing
countries
Governments weaken environmental laws to
attract investors, creating fata; consequences on
their ecological balance and depleting them of
their finite resources
Many Philippine industries were devastated by
unfair trade deals under the GATT and the WTO

• One sector that was particularly affected

was Philippine Agriculture
International economic integration is a central
tenet of globalization, but it is not the entire thing
In the recent decades, partly as a result of
increased exports, economic globalization has
ushered in an unprecedented spike in global
growth rates. Yet, economic globalization
remains an uneven process

GEC-TCW – The Contemporary World MARANAN, ADRIAN