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Republic of the Philippines

Surigao del Sur State University


Pag-antayan, Cantilan, Surigao del Sur 8300
Telefax No. 086-214-4221
www.sdssu.edu.ph

THE CONTEMPORARY
WORLD

First Semester
2021 - 2022

MODULE 1
Aspillaga , Harry Danny
Bea, Jennifer
Caperida, Lorly
Daling, Rudy
Martin, Lolita
Quezada, Lowelyn

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COURSE INFORMATION
Course Code GEC-CW
Course Title Contemporary World
No of Units 3 units
Pre-requisite None
Co-requisite None
Contact Hours 54 hours
Mode of Delivery Blended
Tools/Platforms Google Classroom, Google Meet, Google Forms
Facebook: Krishia L. Curayag
Course This course introduces students to the contemporary world by
Description examining the multifaceted phenomenon of globalization. Using the various
disciplines of the social sciences, it examines the economic, social, political,
technological, and other transformations that have created an increasing
awareness of the interconnectedness of peoples and places around the
globe. To this end, the course provides an overview of the various debates in
global governance, development, and sustainability. Beyond exposing the
student to the world outside the Philippines, it seeks to inculcate a sense of
global citizenship and global ethical responsibility.
This course includes mandatory topics on population education in the
context of population and demography.

Course Outcomes At the end of the course, the students should be able to:
A. Competencies
 Distinguish different interpretations of and approaches to
globalization
 Describe the emergence of global economic, political, social, and
cultural systems
 Analyze the various contemporary drivers of globalization
 Understand the issues confronting the nation-state
 Assess the effects of globalization on different social units and their
responses
B. Skills
 Analyze contemporary news events in the context of globalization
 Analyze global issues in relation to Filipinos and the Philippines
 Write a research paper with proper citations on a topic related to
globalization
C. Values
 Articulate personal positions on various global issues
 Identify the ethical implications of global citizenship

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COURSE TOPICS
Week Topic
Module 1
Lesson 1 VMGO of the University, Classroom policies, Scope of the course
Lesson 2 Introduction to Globalization
Lesson 3 The Global Economy
Lesson 4 Market Integration
Lesson 5 The Global Interstate System
PRELIM EXAM
Lesson 6 The United Nations and Contemporary Governance
Lesson 7 The Global Divides
Lesson 8 Global Media Cultures
Lesson 9 Globalization of Religion
MIDTERM EXAM
Lesson 10 The Global Cities
Lesson 11 Global Demography
Lesson 12 Global Migration
PRE-FINAL EXAM
Lesson 13 Sustainable Development
Lesson 14 The Global Food Security
Lesson 15 Global Citizenship
FINAL EXAM
GRADING Non-Laboratory Subject
SYSTEM Class Standing………………………………………….40%
 Attendance………………………………...5%
 Quizzes…….... …………………………. 15%
 Oral Graded Recitation…………...…….15%
 Assignment……………………………… . 5%

Examinations…………………………………….…40%
Requirements………………………………………….…20%
TOTAL 100%

REFERENCES Printed:
1. Aguilar, Filomeno V. 2012. “Differentiating Sedimented from Modular
Transnationalism: The View from East Asia.” Asian and Pacific Migration
Journal 21(2): 149–171
2. Lesthaeghe, Ron. 2010. “The Unfolding Story of the Second
Demographic Transition.” Population and Development Review 36(2):
211–251. .
3. Rodulfo M. (2018). The Contemporary World. Mind shapers Co. Inc. pp.1-
33.

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E-books:
1. Steger, Manfred B., Paul Battersby, and Joseph M. Siracusa, eds.
2014.The SAGE Handbook of Globalization. Two volumes. Thousand
Oaks: SAGE Publications.
Online References:
1. ../Downloads/Video/Globalization%20explained%20
(explainity®%20explainer%20video)%20-%20YouTube.mp4
2. https://www.youtube.com/watch?v=ipMiv2vQGqk
3. https://www.youtube.com/watch?v=hyX_FRIPVmk
4. https://www.youtube.com/watch?v=W26oG9wMYb0
5. https://www.youtube.com/watch?v=b5sP4GOO-fo
6. https://www.youtube.com/watch?v=X1xBpBaBbr
7. https://www.geopolitica.info/the-role-of-religions-in-conflicts/
8. https://www.youtube.com/watch?v=qO2onZwxBkM
9. https://www.youtube.com/watch?v=A-P3-1TjZuc
10. https://www.slideshare.net/efendievaz/globalization-and-religion
11. https://www.youtube.com/watch?v=V-4oMnmu47Q
12. https://courses.lumenlearning.com/alamo-sociology/chapter/reading-demographic-
theories/
13. https://doi.org/10.1111/issj.12185 This article is reprinted from International
Social Science Journal , 2000; 52: 269–281
14. https://books.google.com.ph/books?hl=en&lr=&id=uRyJCwAAQBAJ&oi=fnd&pg=P
A433&dq=%E2%80%9CMobility,+Diversity++and+Community+in+the+Global+City
%E2%80%9D+by+Val+Colic+-Peisker+&ots=YzmwWG0D-
y&sig=tjuyNJrzcgTZwIRgWPN2FHp2dZQ&redir_esc=y#v=onepage&q&f=false
Films:
 “The Corporation” directed by Mark Achbar and Jennifer Abbott
 “The Price of Sugar” directed by Bill Haney
 “The Rise of ISIS,” PBS Frontline
(http://www.pbs.org/wgbh/frontline/film/rise-of-isis/)
Project:
 Compilation of lecture/unreturned portion of the module
 Research proposal

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COURSE OVERVIEW:
This self-instructional module is produced and intended for the students of Surigao Del
Sur State University (SDSSU). It covers the preliminary duration of the GE-
Contemporary World course, which aims to enhance the ability of students to
differentiate between various definitions and approaches to globalization, to examine
current news developments in the sense of globalization, and to express personal views
on specific global issues. Via interdisciplinary and multimodal approaches, the course
takes the students to deeper understanding of globalization today, its history, and its
current significance in order to improve their competency in researching and curating
about global issues.

ACADEMIC INTEGRITY
Academic honesty is required to all students. Plagiarism or taking the works and ideas of
others as one’s own work will not be tolerated in this course. Penalties may be assigned for
any form of academic dishonesty (See Student Handbook/College Manual). Sanctions for
breaches in academic integrity may include receiving a grade of “5.0(Failed)” on a test or
assignment. In addition, the Director of Student Affairs may impose further administrative
sanctions.

INSTRUCTOR INFORMATION
Name : KRISHIA L. CURAYAG
E-mail Address : krishiacurayag@gmail.com
Contact Number : +639106296248
Consultation Hours : 09:00-10:00 AM (MWF)
Mode of Teaching/Learning Delivery: Blended Learning
Tools/Platforms : Google Classroom, Google Meet, Facebook, and Printed Module

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GENERAL INSTRUCTION

This module begins with an author’s note that encapsulates the topics or lessons that
students of this course have to learn, understand, and value. The module is composed of
five lessons of which the first part pertains to the VMGO of the University. The next part
focuses on Introduction to Globalization where students can use their higher order thinking
skills in answering all the questions. Moreover, the second and the last lessons is all about
global economy, global integration, global corporation and global interstate system. Each
student taking this course is also required to answer all the assessment tasks to measure
whether the student have learned from the lessons. Links for other supplementary reading
materials are also provided in this module.

AGREEMENT

I _________________________ have chosen to complete the following actions:


1. I will follow all the policies in this course.
2. I will answer the activities with all work completed.
3. I should be responsible for my own learning.
4. I will submit my module on time.

I am taking part in this learning contract because the strategies listed here will help
me to learn the material and perform well in this course.

_____________________________
Signature over printed name

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DISCLAIMER

This module is a compilation of the works from international sources,


manuals, and books from different authors and will be used for educational purpose only.

Due recognition is given to the authors who are the sources of some parts
found in this module. The compiler/owner does not claim copyrights to any part taken from
other sources.

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Lesson 1: Vision, Mission, Goals, Objectives, Core Values
I. Introduction. This is the institution’s direction on what the University hoped to achieve by
the students after graduation. It will also help to develop the public commitments with the
involvement of the academic community to increase general understanding of what it
hopes to accomplish, why it matters, and what may need to change to realize a stronger
academic program.

II. Intended Learning Outcomes


After the lesson, students are expected to:
 Express ideas based on learner’s understanding of the University’s VMGO (Vision,
Mission, Goals, and Objectives), Core Values and Quality Policy.
 Share learners personal plan to accomplish in life.
 List down and report expectations for the course.
III. Procedure
A. Activity. On this side of the University.
Link your own knowledge and understanding by filling up the spaces below the graphic
organizer on SDSSU Vision, Mission, Goals, Objectives and Core Values.

Vision Mission Goals Objectives Core Values

1. Vision
____________________________________________________________________________
____________________________________________________________________________

2. Mission
____________________________________________________________________________
____________________________________________________________________________

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3. Goals

4 .Objectives

5. Core Values

_____________________________________________________________________________
_____________________________________________________________________________

6. Quality Policy

______________________________________________________________________________
_____________________________________________________________________________

B. Analysis. My Direction in Life

Answer the questions below briefly’

1. What do you want to do or experience in your life?


2. What do you want to accomplish in your life?
(Use separate sheet of paper for your answer)

C. Abstraction. Read and Understand the SDSSU Operation

THE SURIGAO DEL SUR STATE UNIVERSITY


General Mandate of the University

The University shall primarily provide advanced education,


higher technological, professional instruction and training in trade,
fishery, agriculture, science, education, commerce, engineering,
forestry, nautical courses, and other related fields. It shall also
undertake research and extension services and provide progressive
leadership in its areas of specialization (RA 9998, Section 2 or you can read the whole Republic
Act 9998 through this url: https://lawphil.net/statutes/repacts/ra2010/ra_9998_2010.html)

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History

Surigao del Sur State University (SDSSU), formerly Surigao del Sur Polytechnic State
College (SSPSC), is composed of six campuses strategically located in the Province of Surigao
del Sur. It achieved its status as a university through Republic Act 9998 signed on February 22,
2010. The leadership of its dynamic President, Dr. Remegita C. Olvida, and the dedication and
commitment of its faculty and staff and other stakeholders for quality tertiary education and
excellence all played a key role on the conferment of the status of a state university to the
institution after 28 years of existence. The history of the University dates back to 1982 when
Bukidnon State College opened their extension in Tandag known as the Bukidnon External
Studies Center. In 1992, it became the Surigao del Sur Polytechnic College. The creation of the
College integrated four DECS-supervised schools in the municipalities of Cagwait, Tagbina,
Lianga, and Tago. Six years later in 1998, the College earned the status of being a state college
by virtue of Republic Act 8628. In 2000, the Surigao del Sur Institute of Technology (SSIT) in
Cantilan became the fifth satellite campus of the University (www.sdssu.edu.ph).

Cantilan Campus

SDSSU-Cantilan is located along the Pacific coast, 3 km. from the inter-island
wharf in the town of Cantilan. It is situated 117 km. south of Surigao City, and
67 km. north of Tandag City.

The campus is considered the College of Technological Education. It offers ten


(10) degree programs and eight (8) of which are accredited by AACCUP.

The campus boasts of its buildings and facilities in Architectural Drafting,


Automotive and Mechanical Technology, Electrical and Electronics
Technology, Home Economics, Food Trades, Garments, and
Computer/Information Technology also the state-of-the-art laboratories
(Chemistry Lab, Biology Lab, Speech Lab and AVR).

Philosophy

SDSSU believes that higher education is an instrument for the improvement of life
through democratized access to quality education in the development of a well-rounded
person.

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Vision

A leading “glocal” University with widened academic perspectives that focus on


attaining food security, supporting poverty alleviation, developing renewable energy, and
conserving natural environment.

Mission

SDSSU shall provide competency-based higher education training driven by relevant


and responsive instruction, research, extension and sustainable resource management.

Particularly, SDSSU is committed to:

1. Produce competent and skilled graduates prepared for gainful employment;


2. Develop graduates who shall not only foster economic progress but also care for
the environment, adhere to positive value system, and preserve cultural heritage;
3. Engage in high-impact research for instruction and develop technology for food
security and renewable energy;
4. Collaborate with government and non-government agencies to help improve
the lives of the marginalized groups; and
5. Promote cooperation/partnership among regional, national, and ASEAN
institutions in Higher Education.

Core Values

Competence
A combination of observable and measurable knowledge, skills, abilities, and
personal attributes that contribute to enhance SDSSU employee and student
performance and ultimately result in organizational success.
Accountability
Responsibility for own actions, decisions, and commitment to accomplish work
in an ethical, efficient, cost-effective and transparent manner manifesting the value of
sound stewardship in the wise use of resources for common good.
Responsiveness
A prompt action, consistent communication, quality information, and a focus on
providing a superior experience to stakeholders.

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Excellence
The quality spectrum at exceptional levels demonstrated by learning outcomes
and the development of shared culture of quality consistent with the vision, mission
and goals of University.
Service
Dedication for a continuous improvement of services, stakeholder’s
relationships and partnership which stresses interdependence and collaboration for a
sustainable success of clients and their communities in helping build a just, peaceful,
stable and progressive Filipino nation.

SDSSU CARES…

These core values are not descriptions of the work we do, nor the strategies we
employ to accomplish our University vision. They are the core values that underlie our
works and interactions as we internalize responsibilities to fulfil our mission. They are
the basic elements of how we go about our work and how we deal with stakeholders,
molds students to become competent, innovative, globally competitive and service-
oriented.

Goals

These are the specific goals in the four (4)-fold functions of the University:
KRA 1. Instruction
Develop highly competent, globally competitive, and morally upright graduates.
KRA 2. Research
Produce research for the advancement of knowledge, new technology and
innovative approaches for competitive endeavors.
KRA 3. Extension
Empower the rural poor to improve their lives through transfer of technologies
and knowledge.
KRA 4. Production
Sustain University operations through viable and profitable income generating
projects.

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Quality Policy

The Surigao del Sur State University commits itself to produce highly motivated,
globally competitive, and morally upright human resource through the delivery of
transformative and quality higher education that conforms to international standards driven
by excellent instruction, relevant researches, sustainable extension and production services.
Together with our stakeholders, we shall endeavor for continual improvement of our
quality management system in consonance with statutory and regulatory requirements for
clients and industry satisfaction for quality of life.
SDSSU Hymn

Hail! Oh, our greatest pride, SDSSU


Hail! Oh, our greatest pride
Surigao del Sur State University
The golden seeds of your education
Now spread to serve mankind
With labor, love, and true dedication
Your name and splendor sublime
For thy honor and thy noble mission
Our hearts and mind sound resound
The virtues you adhere you carry on SDSSU our home
Hail! Oh, our greatest pride, SDSSU
Your light guide SDSSU our loyalty resides
Here our loyalty resides!
LYRICIST: Prof Evelyn T. Bagood
Composer: Rex L. Ingotan
Music Arranger: Demeiboy T. Rosales

You can also watch and sing along the SDSSU Hymn through this link:
https://www.youtube.com/watch?v=ktLJiuD0K_I&t=6s.

D. Application. Knowing It.

Answer the following questions briefly: Provide another sheet for your answer

1. Is it your responsibility as an SDSSU student to carry out the Vision, Mission and Goals
of the University? Why?

2. Can you say that you have practiced the core values of the University? Cite specific
examples.

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3. Is the VMGO clear and definite to its purpose? How?

4. What do I want people to say about me in 10 years. . ., 20 years?

Assignment. To- bring List.

List down your expectations in the course.

topic instructor classmates

Summary:

The institution’s VMGO provides purpose, meaning, and significance to the work the
University and enables to motivate and empower the concerned individual to contribute to
the realization and attainment of the undertakings. Specifically, the four steps facilitate a
collaborative development of a shared VMGO and Core Values. The following are:

1. Know your organization - Clarify the nature and purpose


2. Involve critical individuals - Include those affected
3. Explore the possibilities- Consider possible futures
4. Put it in writing - Vision is committed to paper by writing their
understanding on it

Rubric of the Application:

Descriptive Adjective
Criteria 3 (1-1.5) 2 (1.6-2.1) 1(2.3-3)
Relevance Most/ all ideas are related to Some ideas are related to Few ideas are related
the topic the topic. to the topic
Coherence Ideas are well organized Some of the ideas are Ideas are illogically
organized arranged.

Mechanics Committed 1-8 errors Committed 9-16 errors Committed more than
16 errors.

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Summary:
The institution’s VMGO provides purpose, meaning, and significance to the work of the
University and enables to motivate and empower the concerned individual to contribute to the
realization and attainment of the undertaking. Specifically, the four steps facilitate a
collaborative development of a shared VMGO, Core Values and Program details. The following
are:

5. Know your organization - Clarify the nature and purpose

6. Involve critical individuals - Include those affected

7. Explore the possibilities - Consider possible futures

8. Put it into writing - Vision is committed to paper by writing their understanding on it.

References

Offline
 Contemporary World Module by Associate Professor Lolita M. Martin
 Student Handbook

Online
 www.sdssu.edu.ph
 https://lawphil.net/statutes/repacts/ra2010/ra_9998_2010.html
 RA 9998
 CMO No. 25, series of 2015
 Classroom.google.com/h
 SyllabusAnswer and return this portion

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WEEK 2
LESSON NO. 2
LESSON TITLE Introduction to Globalization
DURATION/HOUR 3 hours
S
Specific Learning During the students' learning engagements, they will be able to:
Outcomes:  Identify the definition of Globalization
 Distinguish the importance of globalization.
 Explain the meaning of globalization
TEACHING LEARNING ACTIVITIES

A. Activity: Let’s get to know GLOBALIZATION!


Direction: In the picture below, write your insights and ideas in the box provided.

https://www.vectorstock.com/royalty-free-vector/the-circle-routine-of-the-contemporary-world-
vector-19341458

https://www.teeturtle.com/products/i-know
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Activity 1.1: Globalization Case Study
Direction: Complete the following exercise by reading the short
passage about a brief history of the Coco-Cola Company and fill in
the blanks.

The Coca-Cola Company


The Coca-Cola company was founded in the United States in 1886. The company set up bottling plants in Canada
in 1906. In 1928, it introduced the soft drink Coca-Cola at the Olympic Games which were held in Amsterdam. In
the 1940s, the company began to set up bottling plants in countries around the world. Coca-Cola is popular
because it has been advertised as a brand of soft drink connected with fun, friends and good times. Its
international image was successfully promoted by a 1971 commercial, where a group of young people from all
over the world gathered on a hilltop in Italy to sing "I'd Like to Buy the World a Coke." In 1978, the Coca-Cola
Company was selected as the only non-Chinese company allowed to sell packaged cold drinks in the People's
Republic of China. Today, the company produces nearly 400 brands in over 200 countries. More than 70 percent
of the company’s income comes from outside the United States. Coca-Cola is an extraordinarily successful
example of multinationalization (跨國化). Its success raises the question of why and how it has been so
successful. The multinationalization of the Coca-Cola Company is also often used as an example to illustrate the
concept of economic globalization.
[Note: The following website provides more detailed information about the history of the company: http://heritage.coca-cola.com/]

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Discussion: Let’s Talk About the Introduction of Globalization

B. Abstraction Globalization https://depositphotos.com/vector-images/discuss.html

Globalization is an ongoing process driven by a combination of political, economic,


technological, and sociocultural forces. The process of globalization since World War II has been
driven by the planning of politicians to break down borders hampering trade so as to increase
prosperity and interdependence and to decrease the chance of future war. The process of
globalization has been further accelerated by the global expansion of multinational corporations
and the worldwide exchange of new developments in science, technology and in product
manufacturing and design. Hence, the term “globalization” is often used to refer to economic
globalization, that is, the integration of national economies into the international economy
through trade, direct foreign investment, capital flows, migration, and the spread of technology.
However, sometimes the term “globalization” is also used to refer to cultural globalization
because many people believe that globalization is driven by the worldwide export of western
culture through the new mass media: film, radio, television and recorded music. The
development of international transport and telecommunication is another driving force which
speeds up the process of globalization.
Globalization has various aspects which affect the world in several different ways. These
aspects include:
– development of worldwide production markets and
broader access to a range of foreign products for consumers and companies involving
particularly movement of material and goods between and within national boundaries.
– development of worldwide financial markets and better
access to external financing for borrowers.
– establishment of a global common market, based on the
freedom of exchange of goods and capital.
- creation of international organizations to regulate the
relationships among governments and to guarantee the rights arising from social and economic
globalization.
– increase in information flows between
geographically remote locations. (This can also be seen as a technological change related to the
advent of fibre optic communications, satellites, and increased availability of telephone and
Internet.)

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- sharing of ideas, attitudes and values across national
borders. This sharing generally leads to an interconnectedness and interaction between peoples
of diverse cultures and ways of life. Mass media and communication technologies are the
primary instruments for cultural globalization.

C. Analysis. Globalization box

1. What are the driving forces behind the process of globalization?

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2. How globalization affects your lifestyle?

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3. Why globalization exist?

______________________________________________________________________________
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_____________________________________________________________________________________
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Direction: In the box below, select your best answer that would fill in the blank.

mass media international economic technological

sociocultural political politicians distances

The driving forces behind the process of globalization:

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Application: Globalization Connectivity
What are some major effects of globalization?
Direction: Fill in the blanks in the flow-chart with words
from the box:

national values global political capital financial information


cultural governments consumers

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Assessment:
Direction: After you study the 7 events in the table and decide which of the following
aspects of globalization the event illustrates: economic, informational, cultural or
political. Now, answer in the blank box in aspects of globalization if it is economic,
information, cultural and political.
Note: Every item is 5 (five) points each.

Events Aspect of
globalization

1 Disneyland, the American theme park, has Economic


been set up in Hong Kong,

2 The parts of a car come from all over the world:


Germany, Japan, Korea etc. and the car is assembled
in the U.S.

3 Businesses are operated with many satellite locations


or call centres in other parts of the world to answer
questions in another: for example, someone in India
answering a call from the U.S. about a product or
service.
4 The creation of regional forums such as the European
Union , Asia-Pacific Economic Co-operation (APEC),
and international organization such as the World
Trade Organization and the World Health
Organization. These international forums and
organizations have new rules and
agreements for participating countries to follow.
5 The spread of language, products, and customs as
people are closely connected.

6 Franchises for McDonald's hamburgers, Pizza Hut,


Burger King, KFC and others carrying U.S. trade
names are operating
throughout the world
7 Cable News Network (CNN), based in the United
States, produces 24-hour news broadcasts that can be
seen by people around the world

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Assignment:
Direction: Write a summary of the ideas expressed in the whole module discussion about how
students’ lifestyles are affected by globalization.
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Criteria:

 50 points max - factual, complete, accurate, concise, comprehensive, and efficient


relay of ideas
 30 points max - effective manner or structure of explanation of knowledge or
ideas (grammar and convincing or persuasiveness factor)
 25 points max – less factual, complete, accurate, concise, comprehensive, and
efficient relay of ideas

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Reference :
https://www.edb.gov.hk/attachment/en/edu-system/primary-secondary/applicable-to-
secondary/moi/support-and-resources/personal-social-and-humanities-education-secondary-1-to-
3/s3%20topic%205%20introduction%20to%20globalization.pdf

https://courses.lumenlearning.com/suny-microeconomics/chapter/introduction-to-globalization/

You are now ready to proceed to the next lesson.

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MODULE Topic 1
LESSON 2
LESSON TITLE Global Economy
DURATION/ 3 hours
HOURS
Specific Learning During the students' learning engagements, they will be able to:
Outcomes:  explain further on economic globalization
 identify those actors which promote economic globalization
 articulate a stance on global economic inclusion
TEACHING LEARNING ACTIVITIES
ACTIVITY NO.1 Editorial Cartoon
In this module, we will start with an editorial cartoon. Look at and analyze what the cartoon is all about. An editorial cartoon is
a drawing that expresses a certain message or viewpoint.

Image TAKEN from https://businessmirror.com.ph/2020/03/30/editorial-cartoon-march-30-2020/

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By now, you are ready to answer the following questions: SEE- THINK – WONDER
1. What Do I SEE? (observations only)
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2. What Do I THINK? (connect observations to prior knowledge) (Make inferences)
____________________________________________________________________________
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3. What Do I WONDER? (formulate questions/ queries)
____________________________________________________________________________
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Criteria:
 10 points max – Clearly and accurately depicts the picture and demonstrates an understanding
of it.
 5 points max – Clearly describes the picture and is free of errors.
ESSENTIAL QUESTION:
In what ways did the COVID 19 pandemic situation change our local community? our country? the global arena? Discuss your
answer in a comprehensive and cohesive way in three to five sentences only.
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____________________________________________________________________________________________________
____________________________________________________________________________________________________
_________________________________________________________________________________

ACTIVITY NO.2
Mind Mapping of the Concept ----“GLOBAL ECONOMY‖

Whenever you hear or read the word ―Global Economy‖ what are some words that come up to your mind? Kindly list down at
least five terms that you can associate with the term ―Global Economy‖.

1.______________________________
2.______________________________
3.______________________________
4.______________________________
5.______________________________

Using the five terms/ words that you have given, create your own meaning of global economy based from your personal
understanding.
GLOBAL ECONOMY for me is
____________________________________________________________________________________________________
____________________________________________________________________________________________________
_________________________________________________

Now let us compare our answer with the definition of the term ―global economy‖ with the discussion.

ANALYSIS:
OPENING GUIDE QUESTIONS (5-minute Free Form formative assessment)
These are some essential questions for you to discover as you continue with your journey in answering this module. Try

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answering these questions and keep monitoring your status as to how you will answer these queries.

1. What is Global Economy all about? Is it a concept that all people can relate to?
2. Who and what is included in the Global Economy?
3. If you are asked to define the modern world system, how would you describe it?
4. What could be the goals of all economies in constructing the modern world system?
5. If these goals are met, how come there is a great divide between the developed countries and
the developing countries in the world today?
ABSTRACTION:
What is Global Economy? It is an economic interdependence developed between the most influential countries changing the
economic environment around the world. It is also combination of all the countries‘ gross economic production, movement
and impact.
The 20th largest economies constitute 80 percent of the world's economic production, and with their growth, the five largest
economies are big enough to affect the entire world. When one of these five economies recover from a natural catastrophe, or
some incident that triggers an economic downturn, the interconnections created by foreign trade would have an effect on the
global economy.

Global financial markets on the other hand, are often regulated by the largest economies, as they have a large amount of
capital which can be used to fund certain efforts and projects of the government. Especially these influential countries realize
the advantages they have of getting these immense economic structures and therefore use them to drive political agendas.

What is new about the Global Economy?

Most of the debate on globalization was fueled by various definitions of what is in the global economy and if that really is
anything different. We must make a distinction between the phase of internationalization, including the pure financial
expansion or regional distribution activities around frontiers, from globalization which is distinct in terms of price because the
functional integration of dispersed worldwide. (Dicken 2003, 12) However, one of the key actors that distinguishes the global
economy of the latter half of the twentieth century from its predecessors is the transnational corporation (TNC) The origins of
a global economy can be traced back to the expansion of long-distance trade during the period of 1450–1640, which
Wallerstein (1979) has labeled the ―long sixteenth century.‖ From the fifteenth century onward, a number of chartered
trading companies emerged in Europe, such as the East India Company and the Hudson‗s Bay Company, which created vast
international trading empires. Although their activities were worldwide in scope, their main purpose was trade and exchange,
rather than production.
The development of a world trading system over a period of several centuries helped to create the tripartite structure of
core, semi-peripheral, and peripheral economic areas. According to world-systems theory, the upward or downward mobility
of nations in the core, semi-periphery, and periphery is determined by a country‗s mode of incorporation in the capitalist
world-economy, and these shifts can only be accurately portrayed by an in-depth analysis of the cycles of capitalist
accumulation in the longue durée of history (Wallerstein 1974, 1980, 1989; Arrighi 1994). The dynamics of the capitalist
world-system laid the foundation for a process of industrialization and new international divisions of labor on a global scale.
Originally, as defined by the 18th century political economist Adam Smith ([1776] 1976), the ―division of labor‖ referred simply
to the specialization of workers in different parts of the production process, usually in a factory setting. At the global scale, the
classic international division of labor was between the industrial countries producing manufactured goods, and the non-
industrialized economies that supplied raw materials and agricultural products to the industrial nations and that became a
market for basic manufactures. This relatively simple pattern no longer applies. During the decades following the Second
World War, trade flows have become far more complex, and so have the relationships between the developed and developing
nations of the global economy.

ACTIVITY NO.3
Instruction: Kindly fill up the table below. Give three (3) sample countries which you think fits the category of CORE, SEMI-
PERIPHERY AND PERIPHERY. Then give at least two characteristics of the countries you have cited for justification.

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CORE COUNTRIES SEMI - PERIPHERY
1.__________________________ 1.__________________________
2. __________________________ 2. __________________________
3.___________________________ 3.___________________________
CHARACTERISTICS: CHARACTERISTICS:

PERIPHERY
1.__________________________
2. __________________________
3.___________________________
CHARACTERISTICS:

For further information, you may visit this link:


https://www.youtube.com/watch?v=Y9zThcMJzQU

The Modern World-System


This history of colonialism inspired American sociologist Immanuel Wallerstein's model of what he called the capitalist
world economy. Wallerstein described high-income nations as the "core" of the world economy. This core is the
manufacturing base of the planet where resources funnel in to become the technology and wealth enjoyed the Western world
today. Low-income countries, meanwhile, are Wallerstein called the ―periphery", whose natural resources and labor support
the wealthier countries, first as colonies and now by working for a multinational corporation under neocolonialism. Middle-
income countries, such as India or Brazil, are considered the semi-periphery due to their closer ties to the global economic
core.
In Wallerstein's model, the periphery remains economically dependent on the core in several ways, which tend to
reinforce each other. First, poor nations tend to have few resources to export to rich countries. However, the corporation ca n
buy these raw materials cheaply and then process and sell them in richer nations. As a result, profits tend to bypass the poor
countries. All of these unequal trade patterns lead to poor nations owing lots of money to richer nations and creating debt. For
example, the Philippines was recently approved of a $100 million loan from World Bank for Covid-19 Emergency Response
Project to help meet urgent healthcare needs in the wake of pandemic and bolster the country‘s public health preparedness.

The Reorganization Of Production And Trade In The Global Economy


The Role of Transnational Corporations while the post-war international economic order was defined and legitimized
by the United States and the other core powers that supported it in terms of the ideology of free trade, it was the way in which
TNCs linked the production of goods and services in cross-border, value-adding networks that made the global economy in
the last half of the twentieth century qualitatively distinct from what preceded it. Transnational corporations have become the
primary movers and shakers of the global economy because they have the power to coordinate and control supply chain
operations in more than one country, even if they do not own them (Dicken 2003, 198). Although they first emerged in the late
nineteenth and early twentieth centuries in the natural resource (oil, mineral, and agricultural) sectors, TNCs did not play a
central role in shaping a new global economic system until after the Second World War.
One of the central questions that generated great interest in TNCs was this: To what extent have TNCs supplanted
national governments, and in what areas? The attitude of many researchers was that TNCs had the power, the resources,
and the global reach to thwart the territorially based objectives of national governments in both developed and developing
countries (see Bergsten, Horst, and Moran 1978; Barnet and Müller 1974). This was a key tenet of dependency theory, one of

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the most popular approaches in the 1970s, which argued that TNCs undercut the ability of nationstates to build domestic
industries controlled by locally owned firms (Sunkel 1973; Evans 1979; Gereffi 1983). Even the most balanced scholarly
approaches reflected the challenge to national autonomy captured by the title of Raymond Vernon‗s best-known book,
Sovereignty at Bay (1971). The large size of TNCs, whether measured in sales or by more sophisticated calculations of value
added, still leads to the conclusion that many TNCs are bigger than countries. However, the concentrated power of vertically
integrated, industrial TNCs has been diminishing for the past couple of decades as a result of the tendency toward both the
geographic and the organizational outsourcing of production. Thus, the original concern with how TNCs affect the sovereignty
and effectiveness of national governments needs to be reframed in light of the current shift to a more network-centered global
economy.

ACTIVITY NO.4
When did Transnational Companies play a central role in shaping a new global economic system and how?
____________________________________________________________________________________________________
____________________________________________________________________________________________________
_________________________________________________

The Emergence of International Trade And Production Networks

The growth of world trade has probably received the most attention in the globalization literature because of its
direct relevance to employment, wages, and the rising number of free trade agreements around the world. The most common
causes usually given to explain expanding world trade are technological (improvements in transportation and communication
technologies) and political (e.g., the removal of protectionist barriers, such as tariffs, import quotas, and exchange controls,
which had restricted world markets from 1913 until the end of the Second World War). It is also important to acknowledge that
the volume of international trade depends to a considerable degree on how boundaries are drawn, both for different
geographies of production and according to whether trade covers final products only or whether it also includes intermediate
inputs. However, even though the share of trade in world output surpassed its 1913 peak in the 1980s and 1990s, the sheer
volume of trade is probably not sufficient to argue for a qualitative break with the past. Of far greater significance are several
novel features in the nature of international trade that do not have counterparts in previous eras. These suggest the need for
a new framework to understand both patterns of competition among international firms and the development prospects of
countries that are trying to upgrade their position in diverse global industries. The three new aspects of modern world trade
relevant here are (1) the rise of intra-industry and intra-product trade in intermediate inputs; (2) the ability of producers to
―slice up the value chain,‖ in Krugman‗s (1995) phrase, by breaking a production process into many geographically
separated steps; and (3) the emergence of a global production networks framework that highlights how these shifts have
altered governance structures and the distribution of gains in the global economy.

ACTIVITY NO. 5
What are two most common causes that explain expanding world trade?
1. ___________________________________________________________________________
2. ____________________________________________________________________________
What are the three new aspects of modern world trade?
3. ___________________________________________________________________________
4. ____________________________________________________________________________
5. ____________________________________________________________________________
Surpluses and Deficits
A good place to get a quick snapshot of global trade (Mann and Pluck,2007: 1159-66), as well as net economic
flows in and out of a nation-state, is by looking as a nation‗s trade surpluses and deficits. Of special interest and importance
as far as trade surpluses and deficits are concerned are the positions of the two global economic giants – the US and China –
in terms f their trade balances. On the one side is the US which by the end of Nvember,2007, had a trade deficit of $701.6
billion (it ended the year at $738.6 billion )(Peters, 2007:C3). The deficit dropped slightly in 2008 and dramatically in 2009 to
about half the 2007 figure because of the Great Recession. For its part, China announced that it had a record trade surplus o f
$177.47 billion in 2006 (Peter,2007:C3). China‗s surplus was 75% greater than it had been in the previous year (2005).
Through November 2006, the Chinese surplus with the US was almost equal to its surplus with all other countries in the
world. The US deficit with China alone was $22.9 billion and that was just for the month of November 2006. The US has a
larger deficit with China than with any of the country in the world. The US is negotiating with China over the size of the deficit

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blaming it, at least in part on Chinese monetary policies that , in the US view, artificially undervalue the yuan, thereby making
Chinese exports less expensive and therefore more affordable to Americans. Of course, there is much more to the American
attraction to Chinese products than their low prices traceable to China‗s undervalued currency. The fact is, many Chinese
products are attractive because they are priced low, mainly as a result of the low cost of labor there and because their qual ity
is high, at least for the price being paid.

Slicing Up The Value Chain


The notion of a value-added chain has been a useful tool for international business scholars who have focused on the
strategies of both firms and countries in the global economy. Bruce Kogut (1984, 151), a professor at the Wharton School of
Business, University of Pennsylvania, was one of the first to argue that value chains are a key element in the new framework
of competitive analysis that is needed because of the globalization of world markets: ―The formulation of strategy can be
fruitfully viewed as placing bets on certain markets and on certain links of the value-added chain. . . . The challenge of global
strategy formulation is to differentiate between the various kinds of economies, to specify which link and which factor captures
the firm‗s advantage, and to determine where the value-added chain would be broken across borders.‖ In a subsequent
paper, Kogut (1985) elaborates the central role of the value-added chain in the design of international business strategies,
which are based upon the interplay between the comparative advantage of countries and the competitive advantage of firms.
While the logic of comparative advantage helps to determine where the value-added chain should be broken across national
borders, competitive (or firm-specific) advantage influences the decision on what activities and technologies along the value-
added chain a firm should concentrate its resources in.

Production Networks in The Global Economy


In the 1990s, a new framework, called GLOBAL COMMODITY CHAINS (GCC), tied the concept of the value-added
chain directly to the global organization of industries (see Gereffi and Korzeniewicz 1994; Gereffi 1999, 2001). This work was
based on an insight into the growing importance of global buyers (mainly retailers and brand companies, or ―manufacturers
without factories‖) as key drivers in the formation of globally dispersed production and distribution networks. Gereffi (1994a)
contrasted these buyer-driven chains to what he termed producer-driven chains. The latter are the production systems
created by vertically integrated transnational manufacturers, while the former term recognizes the role of global buyers,
highlighting the significance of design and marketing in initiating the activities of global production systems.The GCC
approach drew attention to the variety of actors that could exercise power within global production and distribution systems. It
was the field-based methodology of GCC research, in particular, that provided new insights into the statistics showing an
increase in trade involving components and other intermediate inputs. The trade data alone mask important organizational
shifts because they differentiate neither between intrafirm and interfirm trade nor between the various ways in which global
outsourcing relationships were being constructed.
A variety of overlapping terms has been used to describe the complex network relationships that make up the global
economy. Each of the contending concepts, however, has particular emphases that are important to recognize for a chain
analysis of the global economy.
Supply chains. A generic label for an input-output structure of value-adding activities, beginning with raw materials and
ending with a finished product International production networks. A focus on the international production networks in which
TNCs act as ―global network flagships‖ (Borrus, Ernst, and Haggard 2000)
Global commodity chains. An emphasis on the internal governance structure of supply chains (especially the producer-
driven vs. buyer-driven distinction) and on the role of diverse lead firms in setting up global production and sourcing networks
(Gereffi and Korzeniewicz 1994) French ―filière‖ approach. A loosely knit set of studies that used the filière (i.e., channel or
network) of activities as a method to study primarily agricultural export commodities such as rubber, cotton, coffee, and coc oa
(Raikes, Jensen, and Ponte 2000)
Global value chains. Emphasis on the relative value of those economic activities that are required to bring a good or service
from conception, through the different phases of production (involving a combination of physical transformation and the input
of various producer services), delivery to final consumers, and final disposal after use (Kaplinsky 2000; Gereffi and Kaplinsky
2001)

Industrial Upgrading and Global Production Networks


Major changes in global business organization during the last several decades of the twentieth century have had a significant
impact on the upgrading possibilities of developing countries. This section will illustrate how the reorganization of international
trade and production networks affects the capability of developing countries in different regions of the world to improve the ir
positions in the value chains of diverse industries. Industrial upgrading refers to the process by which economic actors—
nations, firms, and workers—move from low-value to relatively high-value activities in global production networks. Different
mixes of government policies, institutions, corporate strategies, technologies, and worker skills are associated with upgrading

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success. However, we can think about upgrading in a concrete way as linked to a series of economic roles associated with
production and export activities, such as assembly, original equipment manufacturing (OEM), original brand name
manufacturing (OBM), and original design manufacturing (ODM) (Gereffi 1994b, 222–24). This sequence of economic roles
involves an expanding set of capabilities that developing countries must attain in pursuing an upgrading trajectory in diverse
industries. In the remainder of this section, we will look at evidence from several sectors to see how global production
networks have facilitated or constrained upgrading in developing nations.

Outsourcing
Outsourcing is defined as the act of obtaining semi-finished products, finished products or services from an outside
company if these activities were traditionally performed internally. In the previous sentence, the word "product" may be
replaced by "service". The company that out sources is called "buyer" whereas the company that provides the service is
known as the "vendor". Note that outsourcing leads to a significant rapprochement between the vendor and the buyer. An
important flow of technical and organizational information inevitably occurs between the protagonists. We shall see later that
this can lead to significant problems.
Confusions are frequent between "outsourcing", "offshore outsourcing", "off-shoring" and ―subcontracting.
We speak of "offshore outsourcing" where the vendor is located in a country different from that of the buyer.
Therefore, only the location of the seller differentiates the two concepts.
When a company is fully relocated to a country other than his home country, we speak of "offshoring". This situation
is relatively rare because it is risky.
Managers sometimes confuse "outsourcing" and "sub-contracting". The latter concept means that part of the work is
transferred to another company that has special skills or resources that allow it to perform tasks clearly specified in better
conditions. In other word, a subcontractor works for the buyer in specific limits, while a seller cooperates with a buyer.
Subcontract involves only the transfer of the specifications of the product or service.
We still will use the term "core competencies." This concept was first introduced by Prahalad and Hamel (1990) and
used by many authors including Dekkers (2000).
According to the authors, the "core competencies" can be defined as the collective knowledge of the production
system concerned, in particular knowledge of procedures and how to best integrate and optimize them. More simply, one
could say that the concept encapsulate the expertise of the company with regard to its "strengths", that is to say, the activities
that make that the company is ranked ahead of the competition.
In their article, Quinn and Hilmer (1994) give a more detailed definition of the "core competencies" concept. In their
view, the "core competencies" are defined as follows: - Have a range of expertise that crosses traditional functions
horizontally, - Have the capacity to adapt to changes in long-term demands of clients, - These "core competencies" must be
limited in number (as a matter of effective management), - Dominate the competitors with regard to these skills, - Being close
to customers in order to be recognized as a leader, - Finally, be able to continue and even improve the domination of the
competitors

Is outsourcing good or bad strategy?


We are in a period in which some companies that had previously decided to outsource part of their production are
backtracking on their decision. It is also during this period that we find in the literature more and more communications that
take for granted the positive aspect of outsourcing, to the point of not even ask the question that introduced this section ( see
for example the following sentence in (Yao et al., 2010): While outsourcing may enhance a client‗s firm‗s value in several
ways, such access core competency, current research finds that cost reduction ranks the highest among other outsourcing
benefits.

The Globalization Backlash: Dilemmas of Governance and Developments


In recent decades, a strong anti-globalization movement has emerged. As markets have gone global, many people sense that
globalization means greater vulnerability to unfamiliar and unpredictable forces that can bring economic instability and social
dislocation, as well as a flattening of culture in the face of well-financed global marketing machines and ―brand bullies
(Rodrik 1997; Klein 2000; Ritzer 2000). In addition, there is a growing imbalance in global rule-making: on the one hand, the
rules favoring market expansion have become stronger and more enforceable (such as intellectual property rights for software
and pharmaceutical companies, or the restrictions on local content provisions and export performance requirements in the
WTO); on the other hand, rules that favor other valid social objectives, such as human rights, labor standards, environmental
sustainability, or poverty reduction, are lagging behind. These perceived problems and others have provided the fuel for
anticorporate campaigns worldwide. Government policy alone is inadequate to handle these grievances: they are
transnational in scope, and they deal with social demands in areas where regulations are weak, ill defined, or simply absent.
A variety of new ―private governance responses or certification institutions are emerging (Gereffi, Garcia-Johnson, and

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Sasser 2001), such as individual corporate codes of conduct; sectoral certification schemes involving nongovernmental
organizations (NGOs), firms, labor, and other industry stakeholders; third-party auditing systems, such as SA 8000 for labor
standards or the Forest Stewardship Council (FSC) certification for sustainable forestry practices; and the United Nations‗
Global Compact, an initiative that encourages the private sector to work with the United Nations, in partnership with
international labor and civil society organizations, to move toward ―good practices in human rights, labor standards, and
environmental sustainability in the global public domain. Private governance in multi-stakeholder arrangements seeks to
strengthen oversight in global supply chains by charting a course that goes beyond conventional top-down regulation based
on uniform standards, on the one hand, and reliance on voluntary initiatives taken by corporations in response to social
protest, on the other. Some argue that a continuous improvement model based on ―ratcheting labor standards upward would
work well in a highly competitive, brand-driven industry such as apparel (Fung, O‗Rourke, and Sabel 2001). Others propose a
―compliance plus model that pushes beyond the basic floor of minimum standards set by most codes, and seeks an
―inside-out approach to ethical sourcing based on training and empowerment initiatives that address the needs and interests
of factory-based stakeholders (Allen 2002). In either instance, sustainable and meaningful change requires a shift in
organizational cultures and expectations regarding improvement of social and environmental conditions. Governance has
become a central theoretical issue in the global economy. Institutional paradigms and local or regional frameworks centered
on the nation-state are being superseded by approaches that emphasize transnational governance structures, with an
emphasis on power, networks, and the uneven distribution of gains from globalization. Much still needs to be done in this
area. The inability 10 of the neoliberal agenda to redress the most serious development problems in the world is leading to
fresh thinking on the role of the state and civil society institutions in developing nations (Wolfensohn 1998; IDB 1998, 2000;
Garretón et al. 2003). Transnational corporations are being pressured to comply with a broad range of social objectives in
multi-stakeholder institutions of private governance that can have an impact on public policies in the developed as well as the
developing world. The challenge in research on the global economy is to create theory and carry out insightful empirical
studies that provide tools to understand the constantly changing reality we seek to apprehend and change.

ASSESSMENTS:
A.Fill In the blanks the following words given in a box.

World System Theory Global Commodity Chains


Global Value Chains Industrial Upgrade
Division of Labor Outsourcing
Transnational Corporation Capitalist World System

1. A ___________ is an economic interdependence established between the most influential countries that drives the
worldwide economic environment.
2. ______________ is defined as the act of obtaining semi-finished products, finished products or services from an outside
company if these activities were traditionally performed internally.
3. According to _____________ theory, the upward or downward mobility of nations in the core, semi-periphery, and
periphery is determined by a country‘s mode of incorporation in the capitalist world-economy.
4. The _____________ can be defined as the collective knowledge of the production system concerned, in particular
knowledge of procedures and how to best integrate and optimize them.
5. ______________ referred simply to the specialization of workers in different parts of the production process, usually in a
factory setting.
6. The _____________ is a chain that emphasizes on the relative value of those economic activities that are required to bring
a good or service from conception, through the different phases of production.
7. _______________ have become the primary movers and shakers of the global economy because they have the power to
coordinate and control supply chain operations in more than one country, even if they do not own them.
8. ______________ is a chain that emphasizes on the internal governance structure of supply chains and on the role of
diverse lead firms in setting up global production and sourcing networks.
9. ______________ is a chain that has a generic label for an input-output structure of value adding activities, beginning with
raw materials and ending with a finished product International production networks.
10. ______________ refers to the process by which economic actors—nations, firms, and workers—move from low-value to
relatively high-value activities in global production networks.

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B. EVALUATING QUESTION:
Answer the question in three up to five sentences (3-5) the succeeding question. Use the rubric down below to assess your
points in this part of the Assessment. Avoid erasures.

How is analyzing the Global Economy helpful to a student like you in adapting to the present life under the ‗curse‘ of the
Pandemic?
____________________________________________________________________________________________________
____________________________________________________________________________________________________
____________________________________________________________________________________________________
____________________________________________________________________________________________________
____________________________________________________________________________________________________
_________________________________________________________________________________

Criteria:
3 points max - factual, complete, accurate, concise, comprehensive, and efficient relay of ideas
2 points max - effective manner or structure of explanation of knowledge or ideas (grammar and convincing or
persuasiveness factor)

ASSIGNMENTS Research on the Market Integration topics


1. Elements of Market Integration
2. 3 Types of Market Integration
3. Capital Market Integration in Asia
4. Market Shift amidst Pandemic

RESOURCES: Offline References


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Dolgui, A., and Proth, J.-M., (2010). Supply Chain Engineering: Useful Methods and Techniques.
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Narasimhan, R., Narayanan, S., Srinivasan, R., (2010). Explicating the mediating role of integrative
supply management practices in strategic outsourcing: a case study analysis. International
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Handbook of Economic Sociology, ed. Neil J. Smelser and Richard Swedberg. Princeton:
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Online References
https://www.youtube.com/watch?v=aemiFHJXrHI

https://www.thoughtco.com/the-governments-role-in-the-economy-1147544

https://people.ucsc.edu/~rlipsch/migrated/Folder%20for%20Shawn/Lectures/Structure%20of%20the%2
0global%20economy.pdf

https://www.youtube.com/watch?v=Y9zThcMJzQU

https://people.ucsc.edu/~rlipsch/migrated/Folder%20for%20Shawn/Lectures/Structure%20of%20the%2
0global%20economy.pdf

https://www.youtube.com/watch?v=uBdKkeuDXNc

https://press-release/2020/04/23/Philippines-world-bank-approves-usd100m-to-support-covid-19-
emergency-response

You are now ready to proceed to the next lesson.

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NO. 4
LESSON TITLE GLOBAL MARKET INTEGRATION
DURATION/HOURS 3 hours
Specific Learning During the students' learning engagements, they will be able to:
Outcomes:  Identify international financial institutions
 Examine the roles of each international financial institution in relation to the
country‘s economy.
 Trace the history of global market integration.

Activity 1: Name Me

Direction:
ACTIVATING
1. Identify the different international logos below.
PRIOR LEARNING 2. Can you name these logo?

Can you identify


the logo of the
following
international
financial
institutions?
Can you name
them?

A B C

D E F

logos taken from: https://tinyurl.com/y23jbgo5

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Analysis

1. Are you familiar with these logos?


2. What do these international financial institutions do to the country?
3. How do these institutions affect the economy of the world? And our country?

Abstraction
Direction: You are going to read about the International Financial Institution.
Then after Reading, you are expected to come up with a chart showing the
different IFI‘s and their details.

The International Financial Institutions

Globalization has brought the world economies back together. The


expression "when the American economy sneezes, the rest of the world catches a cold" represents that everyone
else will be affected. Yet it is not just America's economy that impacts on the global economy. Many countries do
have significant contributions to the global economy and finance.

The Bretton Wood System

The world's major economies had suffered as a result of the First World War , the Great Depression of the
1930s and the Second World War. Due to the fear of a recurrence of lack of nation-state cooperation, political unrest
and economic chaos, the elimination of trade barriers and the free flow of capital between nations became the goal of
reforming the world economy and ensuring global financial settlement.

So, the Bretton Woods System created currency expression in terms of the gold value. For example, a US
dollar 35 pegged by the US per ounce of gold is the same as 175 Nicaraguan cordobas per ounce of gold. Second ,
two official monetary authorities in each country (a central bank or its equivalent) agree to exchange their own
currency at the agreed exchange rates for those of other countries, plus or minus a margin of one percent (Boughton
2007:106-7).

This made foreign trade possible for the currencies of the countries involved at or near the exchange rate,
without the need for any external interference. Thirdly, the International Monetary Fund ( IMF) was created to set,

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stabilize, and oversee exchange rates. In 1946, forty states became IMF members, and had to deposit some of their
gold reserves with the IMF. The IMF was forced to accept currency par values, and member states were unable to
change the value by more than 10 per cent. If a currency was destabilized, the IMF was prepared to lend the money
needed to stabilize its currency to member states. Fourthly, the Member States decided to lift all limitations, at least
eventually.

The General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO)

Another structure born out of Bretton Woods was the General Tariff and Trade Agreement (GATT)
developed in 1947 by Goldstein et.al, 2007). The GATT was a forum for 23 member countries to meet. Through
Multinational Trade Agreement it focused on commercial goods.
It served until 1995 when the World Trade Organization ( WTO) superseded it. Although GATT concentrated on trade
and commodities, the WTO also assumed responsibility for the increasingly important service sector. Although GATT
was merely a venue for meetings of country representatives, the WTO is an autonomous organization. GATT has
been considered more appropriate by the US and other countries than the International Trade Organization (ITO);
and in 1947, a number of initial trade agreements were negotiated by 23 nations. Since then, international trade deal
has been negotiated under the bureaucratic umbrella of GATT (and later of the WTO). A variety of rounds of
discussion have been completed over the years. It was from the Uruguay Round (1986-1983) that a deal was
reached to build the WTO.

World Trade Organization (WTO)

As of 2008, WTO headquarters is based in Geneva , Switzerland with 152 member states (Trachtman,
2007) It is an independent multilateral body that has been responsible for trade in services, non-tariff barriers and
other wider trade liberalization areas.

Although GATT focused on rising tariffs, the WTO has come to focus more on trade barriers related to non-tariffs.
One example is nation-wide discrepancies over legislation on products such as processed food or milk. For these
laws, a given nation may be taken to task if they are considered to be an arbitrary restriction on trade in these
products. However, the WTO has been criticized for not going far enough to combat the trade barriers that
developing countries maintain in fields such as agricultural goods and other services.

The International Monetary Fund (IMF) and the World Bank


After the Second World War the IMF and the World Bank were established. Their establishment was chiefly
due to post-war peace advocacy. This was planned to complement the IMF and the World Bank.

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The main aim of the IMF was to support distressed countries at the time, and who could not by any means obtain
capital. Essentially both entities are banks. The IMF is a lightning rod for critics who see it as promoting developed
countries and their attempts to enforce their policies on less developed countries. It supporters see it as key to
emergence and further development of the global economy. t's regarded by supporters as crucial to the global
economy 's emergence and further growth. The essence and roles of the IMF have changed since its establishment
in 1944, as a result of developments in the global economy. It initially operated the exchange rate system that had
been established in Bretton Woods. The IMF is monitoring the balance of a nation closely to be sure that it can
sustain the agreed exchange rate for its currency. The IMF concerned itself with two matters if there were issues in
the other. The first was the nation's governance errors which could probably be rectified. The second was
fundamental economic problems (relating to productivity, for example). Above all, the IMF wanted to make sure that a
nation did not use such issues as an excuse to lower its exchange rate and thus improve its competitive position with
respect to other nations. If a fundamental imbalance occurred, the IMF had the power to authorize a change in the
nation's currency exchange rate.

The World Bank is the most important element of the World Bank Group (WBG) (Gilbert and Vines 2000;
Bradlow 2007:1262-7), officially the International Bank for Reconstruction and Development (IBRD). The
IBRD or the bank was established at Bretton Woods in 1944 and started operations in 1946. Membership is available
to all IMF member states, and comprises 184 nations as of this writing. It offers grants to government-sponsored or
promised services in so-called Part II countries (member states that are poorer nations of middle income or
creditworthy). Among the Bank's tasks are:

● encourage development of productive facilities and resources in less developed countries;


● funding for productive purposes when private capital cannot be obtained or reasonable Terms;
● encouraging international investment in order to promote international trade and development
and equilibrium in balance of payments; and
● helping member countries improve their productivity, standard of living, and labor Conditions
(Bradlow 2007:1264) Over the years, the bank has expanded for beyond its original focus on

The Organization for Economic Cooperation and Development (OECD), Organization of Petroleum Exporting
Countries (OPEC) and the European Union (EU).

As of 2016 the most inclusive group of the world's richest countries is the Organization for Economic
Cooperation and Development ( OECD) with 35 member states.
In 1960 the Petroleum Exporting Countries Organization (OPEC) was initially made up of Saudi Arabia,
Iraq, Kuwait, Iran and Venezuela. They are the world's biggest exporters of oil. OPEC had been organized because
they wanted to raise oil prices.

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The 28 member states form the European Union ( EU). European States adopted the euro as their basic
currency. Conservatives claim that the euro increased Eurozone prices and resulted in low economic growth rates
such as Greece, Spain and Portugal.

North American Free Trade Agreement (NAAFTA)

The North American Free Trade Agreement (NAFTA) was established on January 1, 1994, when Mexico
joined the other two countries, as a trade agreement between the United States, Mexico and Canada. Initially only
Canada and the United States became trade partners in 1989. By broadening international collaboration NAFTA
helps to grow and enhance world trade. Its development allows manufacturing jobs to be relocated to less developed
nations in developing countries, in order to reduce the cost of their goods.

Application

Task 1: The Chart (10 min)

Direction: Based on your reading, fill in the chart below with the details.

International With whom Where By When What Goal


Financial
Institution
1. IMF

You will be rated based on the following rubrics.

CHART RUBRIC

Exceeds Good Fair Poor


10 pts 7 pts 4 pts 2 pts
Fair
Good
Exceeds Does not have all of Poor
Chart meets all required
the required elements
elements; however, it
The chart includes all of the chart. Also, The chart is lacking in
does not utilize the
Chart Requirements its required sources are not used elements required and in
resources in the most
elements. It also in an effective resources used. There
effective manner.
includes effective manner, or there is are many gaps in
Includes the minimum
use of sources. not enough information presented.
amount of required
information
information
presented.

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Exceeds
Poor
Good
The work done Fair
exceeds all Work is done with little
The work was done with
expectations and Work is done with fair effort, quality is not what
good effort that shows
shows that the effort, but the quality the learner is capable of.
Work quality/effort what the learner is
learner is proud of is still not what the It is evident that the
capable of. It is evident
his/her work. The learner is capable of. work was rushed and
that time was put into
effort that was put It is evident that the little time was spent on
this poster and
into this task is the work was rushed. the final product. Work is
presentation.
best it can be by the incomplete.
learner.

Exceeds

The chart has an Fair


Good Poor
element of creativity
and style, and is not The chart lacks style
The chart is clear and The chart lacks a clear
just a list of facts. and reads more like a
Style/Mechanics logical and contains facts understanding of the
The chart is list of facts than an
as well as very few subject matter and there
presented in a clear oral presentation. The
mistakes. Good clear are many errors. Chart is
and concise manner chart lacks neatness
presentation. not creative.
with full and clarity
understanding of the
subject.

Task 2: Arrange Me Orderly

Direction: Study the picture below and arrange them according how our economy progresses.

1 2

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3 4

Pictures are taken from ; https://tinyurl.com/y4olokb8

Task2 : Match with the Pic (10 min)

Direction: With the picture given in activity no 4, match the description of the history of Global Market
Integration with the given explanation below.

1. As people learned how to make plants and animals domesticated, they found it was much more
successful than hunting. Therefore the emerging phenomenon was the agricultural economy. Farming
has helped communities create surpluses, providing food for everyone.

2. Around 1800 the latest economic weapon came from trade, such as steam engines, mining and mass
production. Factories were growing up and changing the way work works. Productivity increased,
standard of living grew, and because of mass production people had access to a wider range of products.
3. There are two contrasting economic models that arose at the time of the industrial revolution when
economic resources became increasingly important for commodity production. These were Communism
and Capitalism. Capitalism is a form of private ownership over all natural resources and means of
production (Aldama, 2018); Capitalism is an economic structure in which the means of development are
proper to private individuals. The four considerations are entrepreneurship, capital goods, energy and
human resources. Capital goods owners, natural resources, and entrepreneurship exercise control
through corporations. The person owns his or her labour. The only exception is slavery, where the labor
of one person is owned by another. Although slavery is still widely practiced illegally throughout the world.
Socialism is an economic structure in which everybody in society possesses the productive factors
equally. Property is obtained through a constitutionally elected government. This may also be a

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cooperative or a public company with shares shared by both. The four growth factors are jobs,
entrepreneurship, capital goods and natural resources (Kimberly Amadeo, 2020)

4. The Industrial Revolution was a period of tremendous industrialization and invention during the late 1700s
and early 1800s. The Industrial Revolution started in Great Britain and spread quickly all over the
world.(https:/www.investopedia.com).

Processing:

1. How did the history of global market integration help you understand the movement of a country‘s
economy?

Knowledge Enhancer: https://youtu.be/Yocja_N5s1I


https://youtu.be/zhL5DCizj5c

Task 3: Chain of Events (Outcome 3: Trace the history of global integration-10 min.)

Direction: Based on activity no. 3 & 4 create a chain of events showing the history of Global Market
Integration. Kindly use a separate sheet of paper.

THE HISTORY OF GLOBAL MARKET INTEGRATION

Rubric for chart maybe used for this activity (please refer to Activity no.3)

Processing:
1. What are the effects of information revolution in today‘s global market?

Congratulations! You are now ready to talk about global corporations

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References
Aldama, P. (2018). The Contemporary World.Rex Book Store. 856 Nicanor Reyes, Sr. Street

RectoAvenue Manila Philippines

Anderson, J. (2006). The Encyclopedia of North American Architecture. Stevenage,

Hertfordshire, UK:Chartwell Books, Inc.

Arystanbekova, A. (2007). Globalizacya. Almaty: Izdatelstvo Daik Press, 302 p. Palmer, L.

Globalizacya iskusstvo. Retrieved from http://zonakz.net/articles/18305.

Arquilla, John and Ronfeldt, David (2001) ―Networks and netwars‖, Santa Monica, Ca:

RAND Corporation.

Bhagwati, Jagdish. (2004). In Defense of Globalization. New York: Oxford University Press.

Aneloquent defense of globalization from orthodox economic premises.

Castells, Manuel. (1996). The Information Age: Economy, Society, and Culture, Vol. 1: The

Rise of the Network Society. Malden, MA: Blackwell. Probably the best known single work
dealingwith the information technology dimension of globalization and its possible social and

cultural implications.

Claudio, L. &Abinales P. (2018). The Contemporary World. C&E Publishing, Inc.: 839 EDSA, SouthTriangle,
Quezon City

Collier, Paul, and David Dollar. (2002). Globalization, Growth, and Poverty: Building an

Inclusive World Economy. Washington, DC: World Bank; New York: Oxford University Press. The
standardly optimistic "World Bank" view of globalization.

(Castells, 1980; Castells, 1996 and 2000; Castells, 1997 and 2003; Castells, 2001; Castells

and Kiselyova, 2003).

Castells, Manuel (1996) ―The rise of the network society‖, Oxford: Blackwell (2nd edition,

2000) (2000a in the reference)

Dicken, Peter. (2003). Global Shift: Reshaping the Global Economic Map in the Twenty-First

Century, 4th edition. New York: Guilford Press. An extremely comprehensive and

empirically thorough standard textbook on globalization. An excellent non-dogmatic starting


point for any beginning student of the subject.

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Friedman, Thomas L. (1999). The Lexus and the Olive Tree. New York: Farrar, Straus, Giroux. The source
of the "Golden Arches" theory of international relations: Countries that are sufficiently
capitalistic and consumerist as to have at least one McDonalds franchise do not go to war with
each other.

Monge, Peter R. and Contractor, Noshir S. (2003) ―Theories of communication networks‖,

Oxford:Oxford University Press

San Juan, D. (2018). Journey Through our Contemporary World. Vibal Group Inc.: 1253 G.
AranetaAvenue cor. Ma Clara Street, Talayan Quezon City

You are now ready to proceed to the next lesson.

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LESSON NO. 4.1
LESSON TITLE GLOBAL CORPORATION
DURATION/HOURS 3 hours
Specific Learning During the students' learning engagements, they will be able to:
Outcomes:  Show understanding about Global Corporation through a “hugot line”
and poster slogan.
 Develop a comic strip showing the impact of a selected multinational
corporation to the country.

Activity
Let Talk about Corporations

Can you
determine the 1. Touch the Perfection
multinational 2. The power of Dreams
corporation with 3. Digitally Yours
these tagline/ 4. What we’re Made Of
slogan ? 5. Taste The Feeling

Analysis
1. Could there be a party without the soda?
2. Would you say that Samsung is a good product and a good company?
3. Which one would you prefer to buy a Toyota or a Honda?
4. Where would you like to eat McDonalds or Jollibee?
5. Which do you prefer to drink Coke or Pepsi?

These products are manufactured by multinational corporations or global


corporations.

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Abstraction

GLOBAL CORPORATIONS
International trade development has also been generated and sponsored by
international regulatory bodies, the WTO. The legislative groups and agreements control the
movements between countries of goods and services. Therefore businesses can produce
their products and services in many different countries. You can have a backpack designed in the US for example,
but the materials came from China and were put together in Mexico.
Such businesses that reach beyond one country's borders are called multinational or transnational
corporations (MNCs or TNCs) that purposely transcend national boundaries and take advantage of opportunities to
produce, import, market , and sell their goods in various countries. Major businesses are placing their factories in
countries with low labor costs to save the product expenses.
In most reports the multinational company (MNC) is the other big player in economic globalization (beyond
the nation-state and the organizations mentioned above). Transnational companies (TNCs) are also of concern.
While operations involve TNCs in more than one country, MNCs operate in more than two countries. In this book we
will generally use the term MNC to encompass both MNCs and TNCs. There are those who believe the MNC has
become more powerful, maybe much more powerful, than the nation-state and all of the above-described
organizations centered on nation-states. For example, dela Dehesa (2006:85) argues: −We must get used to the fact
that, thanks to the cycle of globalization, corporations will be the leading actors in the world economy rather than
states. " There is no question that MNCs are increasingly important on the global scene. Adapting Dicken's
(2007:106) definition of a TNC, an MNC is "a firm that has the power to coordinate and control operations" in more
than two countries, "even if it does not own them.” This means they work in a variety of economic , political, social ,
and cultural settings. While MNCs have proliferated and grown in recent years, it is not new to companies that
operate, have interests, and have activities outside a home country, and this has been exemplified by the East India
Trading Company and the Hudson's Bay Company amongst others. Why are companies becoming global or
transnational? One collection of explanations relates to business-oriented investments that are made possible by
industry regional unequalities. An enterprise in its domestic market will reach a saturation point: identifying new
markets that require its direct presence, finding that, unless it becomes transnational or multinational, its markets are
restricted by political regulations, finding a foreign market so idiosyncratic that it can only deal with it by being
physically present in it or by discovering that there are strong cultural and political reasons for it to be present
elsewhere. There are also reasons relating to market-oriented investment necessitated by the geographic location.

Knowledge Enhancer: https://youtu.be/5C8hLIpZcXo


https://youtu.be/RP0FvlTGuvo

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Task 1: Let’s Do Comics

Direction:
Select a multinational corporation we have in the
Philippines.
Develop a 2 page comics with 6 frames each page
showing the impact to the Philippine economy

Use a short bond paper for this task.

Sample comic taken from: https://tinyurl.com/y2su85dq

Processing: 1. Do you think the positive effects of multinational corporations outweighs the negative effects?
Why? Or why not?

2. Of your chosen multicultural corporation, what benefits did our country enjoy?

Rubrics taken from: https://tinyurl.com/y6n6dtfk

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You may also visit this link below for additional information Knowledge Enhancer:
https://youtu.be/GmomzubjO1I

Application

Direction

1. Make a slogan about your understanding on different International Financial Institutions.


2. Make a ―hugot‖ line about global corporation.
3. Use a short bond paper for this.

Criteria:

 3 points max - factual, complete, accurate, concise, comprehensive, and efficient relay of ideas
 2 points max - effective manner or structure of explanation of knowledge or ideas (grammar and convincing
or persuasiveness factor)

QUESTIONS. (in 20 minutes)


1. Do global Corporation have social responsibility to end poverty? Justify your answer.

2. What do you think would be the role of the nation-state with respect to the changes in the world economic
system?

Criteria:

 8 points max - factual, complete, accurate, concise, comprehensive, and efficient relay of ideas.
 2 points max -statements and responses structure and grammar

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Assessment

All competencies/outcomes based teaching-learning activities serve as the major assessments.

I Identification
Directions. Identify the following questions below:

_______1. A forum for the meeting of representatives from 23 member countries. It


focused on trade goods through multinational trade agreements
conducted in many ―rounds‖ of negotiation.
_______2. When was Bretton Wood system established?
_______3. It is an independent multilateral organization that became responsible
for the liberation of trade.
_______4. It is the second major economic revolution
_______5. A trade pact between the US, Mexico and Canada

II TRUE or FALSE.

Directions: Write TRUE if the statement is True, write the correct answer if the
statement is False.

______1. Capitalism is a system in which all natural resources and means of


Production are privately owned.
______2. Robber Barons made distinction between two systems of globalization.
______3. OECD means Organization for Economic Corporation and Development
______4. The European Union is the world‘s largest common market, composed of
28 European nations
______5. The Organization of Petroleum Exporting Countries (OPEC) was formed
because member countries wanted to increase the price of oil.

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Assignment

A. The students will answer the following:

1. Do you think that the Global Market can still recover in this pandemic? When and how?

B. Read The Global Interstate System:

1. Effects of Globalization to Government


2. The Interaction between the nation-state and international organization.
3. The Challenges Encountered in Globalization
4. The Relevance of the State amid Globalization

References
Aldama, P. (2018). The Contemporary World.Rex Book Store. 856 Nicanor Reyes, Sr. Street

RectoAvenue Manila Philippines

Anderson, J. (2006). The Encyclopedia of North American Architecture. Stevenage,

Hertfordshire, UK:Chartwell Books, Inc.

Arystanbekova, A. (2007). Globalizacya. Almaty: Izdatelstvo Daik Press, 302 p. Palmer, L.

Globalizacya iskusstvo. Retrieved from http://zonakz.net/articles/18305.

Arquilla, John and Ronfeldt, David (2001) ―Networks and netwars‖, Santa Monica, Ca:

RAND Corporation.

Bhagwati, Jagdish. (2004). In Defense of Globalization. New York: Oxford University Press.

Aneloquent defense of globalization from orthodox economic premises.

Castells, Manuel. (1996). The Information Age: Economy, Society, and Culture, Vol. 1: The

Rise of the Network Society. Malden, MA: Blackwell. Probably the best known single work
dealingwith the information technology dimension of globalization and its possible social and

cultural implications.

Claudio, L. &Abinales P. (2018). The Contemporary World. C&E Publishing, Inc.: 839 EDSA, SouthTriangle,
Quezon City

GE-CW CONTEMPORARY WORLD


Collier, Paul, and David Dollar. (2002). Globalization, Growth, and Poverty: Building an

Inclusive World Economy. Washington, DC: World Bank; New York: Oxford University Press. The
standardly optimistic "World Bank" view of globalization.

(Castells, 1980; Castells, 1996 and 2000; Castells, 1997 and 2003; Castells, 2001; Castells

and Kiselyova, 2003).

Castells, Manuel (1996) ―The rise of the network society‖, Oxford: Blackwell (2nd edition,

2000) (2000a in the reference)

Dicken, Peter. (2003). Global Shift: Reshaping the Global Economic Map in the Twenty-First

Century, 4th edition. New York: Guilford Press. An extremely comprehensive and

empirically thorough standard textbook on globalization. An excellent non-dogmatic starting


point for any beginning student of the subject.

Friedman, Thomas L. (1999). The Lexus and the Olive Tree. New York: Farrar, Straus, Giroux. The source
of the "Golden Arches" theory of international relations: Countries that are sufficiently
capitalistic and consumerist as to have at least one McDonalds franchise do not go to war with
each other.

Monge, Peter R. and Contractor, Noshir S. (2003) ―Theories of communication networks‖,

Oxford:Oxford University Press

San Juan, D. (2018). Journey Through our Contemporary World. Vibal Group Inc.: 1253 G.
AranetaAvenue cor. Ma Clara Street, Talayan Quezon City

You are now ready to proceed to the next lesson.

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LESSON NO. 5
LESSON TITLE Global Interstate System
DURATION/HOUR 3 hours
S
Specific Learning During the students' learning engagements, they will be able to:
Outcomes:  explain the effects of globalization to government;
 identify the institutions that govern international relations;
 differentiate globalism from informationalism;
 create a poster about globalism and informationalism;
 appreciate the importance of studying global interstate system.

TEACHING LEARNING ACTIVITIES

ACTIVITY
Activity 1
ONE PIC IN WORDS
Mechanics: From the pictures below. What do you think are the effects of globalization to
government? Kindly write your answers inside the box.

https://www.google.com/search?q=Terrorism&tbmc https://www.google.com/search?q=Price+Instability&tbmns https://www.google.com/search?q=Currency+Fluctuation&tbm

https://www.google.com/search?q=Unemployment&tbm https://www.google.com/search?q=biodiversity+loss&tbm https://www.google.com/search?q=https%3A%2F%2Fwww.economist.com

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P_ _ _ _
C______y
_ _ _ _ O _ _ _M _ _S_ _ _ _ _ _ _ Y
F _ _ _ T_ _T_ _N

Effects of globalization to
government

B _ _E A _ _ _ A _ _
U_ _ _ _ _ _ _ _ _ _ T
B _ _ D _ _ _ _ _ _ _Y
L___
Activity 2
Bluff Board Activity
Direction: Write ―Mahal ako‖ if the statement is correct and write ―Pinaasa ako‖ if the statement
is wrong.
Statements Answers
1. Working for a World Free of Poverty is
World banks motto. Is it mahal ako o
pinaasa ako?
2. The United States is a member of
European Union. Mahal ako or Pinaasa
ako?
3. The International Criminal Court or ICC
was created to bring justice to the
world’s worst war criminals, but
debate over the court still rages. Is it
mahal ako o pinaasa ako?
4. The World Trade Organization (WTO)
is the only international organization
dealing with the global rules of politics.
Its main function is to ensure that trade
flows as smoothly, predictably and
freely as possible. Is it Mahal ako or
pinaasa ako?

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5. There are four purpose of United Nation
and these are the following:
To keep peace throughout the world;
To develop friendly relations among nations;
To help nations work together to improve the
lives of poor people, to conquer hunger, disease and
illiteracy, and to encourage respect for each other’s
rights and freedoms;
To be a centre for harmonizing the actions of
nations to achieve these goals.
Is it mahal ako or pinaasa ako?

6. NATO’s fundamental goal is to


safeguard the Allies’ freedom and
security by political and military means.
Mahal ako or Pinaasa ako?
7. Red cross (Red Cresent in Muslim
countries) is not considered as non-
governmental organization (NGO).
Mahal ako or Pinaasa ako?
8. The United Nations Environment
Programme (UNEP) mission is to
provide leadership and encourage
partnership in caring for the environment
by inspiring, informing, and enabling
nations and peoples to improve their
quality of life without compromising
that of future generations. Mahal ako or
Pinaasa ako?
9. United Nations Children’s Fund,
formerly United Nations International
Children’s Emergency Fund
(UNICEF) was created in 1935 to
provide relief to children in countries
devastated by World War II.
Is it mahal ako or pinaasa ako?
10. NAFTA is an economic treaty between the
United States, Canada, and Mexico in which
the three countries trade freely without
taxing each other.

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Activity 3
Venn diagram Activity
Direction: Write your own thoughts about Globalism and Informationalism. Use the Venn
diagram below to compare and contrast about globalism and informationalism.

Globalism Informationalism

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ANALYSIS
Direction: After the activity, in a short bond paper the students will answer the
following questions.
Activity 1
1. How do you find the activity?
2. What was your realization upon guessing or naming those pictures?
3. What picture struck you the most and why?
4. Choose only one among the six effects of globalization which do you think
has the greatest impact to the government? Why?
Activity 2
1. What do you think is the role of those institutions in international relations?
2. When international relations did starts?
3. Did you find the importance of international relations? Why and Why not?

Activity 3
1. How did you differentiate globalism to informalism?

ABSTRACTION
EFFECTS OF GLOBALIZATION TO THE GOVERNEMNT
Globalization restrains governments by inducing increased budgetary pressure according
to the disciplining hypothesis. Consequently, governments shift their spending toward transfers
and subsidies, and away from capital spending. This increase in spending is theoretically
exacerbated by the desires of people to compensate for the effects of globalisation
("compensation hypothesis").
The government has had many obstacles, and finally, to state autonomy. We may break
these challenges into four: common challenges, regional or identity movements’ challenges,
global economics and global social movements.
Common Challenges
 International Recruiting
 Managing Employee Immigration
 Incurring Tariffs and Export Fees
 Payroll and Compliance Challenges
 Loss of Cultural Identity
 Foreign Worker Exploitation
 Global Expansion Difficulties
 Immigration Challenges and Local Job Loss

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Challenges from Regional/Identity Movements’

The era of globalization is posing a variety of challenges to national identity. In order to


meet these challenges, it is important to offer theoretical scientific interpretations of them.
A scrutiny of national identity as a concept reveals that national identity is actually a ―four
in one‖ combination of institutional identity, interest identity, cultural identity and non-
national community identity, with formative mechanisms characterized the unity of the
primordial state and the constructive, expressive forms characterized by the unity of
consciousness and action, content characterized by the unity of politics and culture, and
maintenance mechanisms characterized by the unity of emotion and self-interest. In the
global age, national identity crisis usually arises in political, economic and cultural levels.
The root cause for national identity crisis lies in the ineffectiveness of nation states’ self-
governance. In order to promote the construction of national identity in the global age, we
need to: (1) promote reform of the political system, explore democratic models of
governance, and create the institutional preconditions for national identity; (2) promote
economic development, ensure fairness and justice, and guarantee interests in national
identity; (3) develop national culture, strengthen value integration and enrich the cultural
significance of national identity; and (4) recognize different levels of community
development and promote community integration in national identity.

Global Economics

Globalization may affect all sorts of other policy-relevant phenomena directly, including
economic growth, income inequality, the tax structure and so on. Extensions of and
adaptions to the meta-study approach proposed in this paper arguably are useful for
addressing many other research questions on globalization’s effects.

Global Social Movements

Global social movements, defined as transnational networks of actors that define their
causes as global and organize protest campaigns and other forms of action that target more
than one state and/or international governmental organization. Bridging insights from
international relations and social movement studies, the chapter analyzes the spread of
transnational contention, examining some main characteristics of repertoires of action,
organizational model, and framing processes, with particular attention to the global justice
movement. Explanations for the spread of global movements are then reviewed: the
politicization of international relations, the development of multilevel opportunities,
movements’ strategies of domestication and externalization, and the spreading of
neoliberal globalization. Finally, the chapter examines the potential evolution of global
movements, considering the challenges to transnationalization of contention in recent anti-
austerity protests.

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Institutions That Govern International Relations
There are several international organizations that governments of countries around the
world and individuals participate in. These include the United Nations, the International Court of
Justice, NAFTA and NATO. There are also non-governmental organizations promoting social
and economic growth.
THE UN AND NATO

The United Nations is an international organization founded in 1945 after the Second
World War by 51 countries committed to maintaining international peace and security,
developing friendly relations among nations and promoting social progress, better living
standards and human rights. Due to its unique international character, and the powers vested in
its founding Charter, the Organization can take action on a wide range of issues, and provide a
forum for its 193 Member States to express their views, through the General Assembly, the
Security Council, the Economic and Social Council and other bodies and committees.

The UN has 4 main purposes

 To keep peace throughout the world;


 To develop friendly relations among nations;
 To help nations work together to improve the lives of poor people, to conquer hunger,
disease and illiteracy, and to encourage respect for each other’s rights and freedoms;
 To be a centre for harmonizing the actions of nations to achieve these goals.

The UN is not all about fights. It has also programs.

UNICEF, acronym of United Nations Children’s Fund, formerly (1946–53) United


Nations International Children’s Emergency Fund, special program of the United
Nations (UN) devoted to aiding national efforts to improve the health, nutrition, education,
and general welfare of children.

In terms of economic issues, the main focus of UN is the reduction of global inequality.

The Sustainable Development Goals are the blueprint to achieve a better and more
sustainable future for all. They address the global challenges we face, including those related to
poverty, inequality, climate change, environmental degradation, peace and justice.
The 17 Goals are all interconnected, and in order to leave no one behind, it is important that we
achieve them all by 2030.

Environmental issue, such as pollution and hazardous wastes, are addressed through the
United Nations Environment Programme (UNEP) is the leading environmental authority in the
United Nations system.

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The Intergovernmental Panel on Climate Change IPCC was created to provide policymakers
with regular scientific assessments on climate change, its implications and potential future risks,
as well as to put forward adaptation and mitigation options.

The UN also has International Court Justice (ICJ), usually referred as the World Court.
Aside from this, there are also a variety of international Criminal Court (ICC) and the
International Tribunal for the Law of the Sea (ITLOS).

The ICC was created to bring justice to the world’s worst war criminals, but debate
over the court still rages.

The International Tribunal for the Law of the Sea is an independent judicial body
established by the Third United Nations Convention on the Law of the Sea to adjudicate disputes
arising out of the interpretation and application of the Convention.

The UN promotes and protects human rights.

The Office of the High Commissioner for Human Rights (UN Human Rights) is the
leading UN entity on human rights. The General Assembly entrusted both the High
Commissioner and her Office with a unique mandate to promote and protect all human rights for
all people.

The UN Development Group’s Human Rights Mainstreaming Mechanism (UNDG-


HRM) advances human rights mainstreaming efforts within the UN development system. HRM
aims to strengthen coordinated UN responses to requests from Member States for support in
fulfilling their human rights commitments. Key priorities of this inter-agency mechanism are
strengthening coherence, delivering results and ensuring impact at the national level. The
International Bill of Human Rights consists of the Universal Declaration of Human Rights, the
International Covenant on Economic, Social and Cultural Rights, and the International Covenant
on Civil and Political Rights and its two Optional Protocols.

North Atlantic Treaty Organization formed in 1949 with the signing of the Washington
Treaty, NATO is a security alliance of 30 countries from North America and Europe. NATO’s
fundamental goal is to safeguard the Allies’ freedom and security by political and military
means. NATO remains the principal security instrument of the transatlantic community and
expression of its common democratic values. It is the practical means through which the security
of North America and Europe are permanently tied together. NATO enlargement has furthered
the U.S. goal of a Europe whole, free, and at peace .

NON-GOVERNMENTAL ORGANIZATIONS (NGOs)

NGOs provide sheltering, emergency food supplies, counseling services, and other vital
support services, and other vital support services to support response and promote the recovery

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of the victims. Example of international organization that was developed out of war is the Red
Cross (Red Cresent in Muslim Countries).

THE WTO AND NAFTA

The World Trade Organization (WTO) is the only global international organization
dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated
and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is
to ensure that trade flows as smoothly, predictably and freely as possible. The WTO has many
roles: it operates a global system of trade rules, it acts as a forum for negotiating trade
agreements, it settles trade disputes between its members and it supports the needs of developing
countries.

The North American Free Trade Agreement (NAFTA), which was enacted in 1994 and
created a free trade zone for Mexico, Canada, and the United States, is the most important
feature in the U.S.-Mexico bilateral commercial relationship. As of January 1, 2008, all tariffs
and quotas were eliminated on U.S. exports to Mexico and Canada under the North American
Free Trade Agreement (NAFTA).

Globalism vs Informationalism

Globalism, at its core, seeks to describe and explain nothing more than a world which is
characterized by networks of connections that span multi-continental distances. It attempts to
understand all the inter-connections of the modern world — and to highlight patterns that
underlie (and explain) them. There are four distinct dimensions of globalism: economic, military,
environmental — and social. Economic globalism involves long-distance flows of goods,
services and capital and the information and perceptions that accompany market exchange.
These flows, in turn, organize other processes linked to them. One example of economic
globalization is low-wage production in Asia for the United States and European markets.
Economic flows, markets and organization — as in multinational firms — all go together.
Environmental globalism refers to the long-distance transport of materials in the atmosphere or
oceans or of biological substances such as pathogens or genetic materials that affect human
health and well-being.

Informationalism refers to a technological paradigm that replaces and subsumes the previous
paradigm of industrialism (Castells 1996). From metallurgy to transportation, industrialism was

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marked by a revolution in materials engineering triggered by the Industrial Revolution.
Informationalism, on the other hand, is connected with the information revolution that begins
after World War II, covering developments associated with computer science and its various
expressions in electronics and telecommunication networks. Informationalism manifests itself in
the added importance of knowledge, information, and communication in the globalized world
where human labor is increasingly involved in the production of immaterial goods (Hardt &
Negri 2000). However, the rise of informationalism as the new paradigm does not suggest that
industrialism disappears as a material fact; it only suggests that industrialism loses centrality in
discourses of technology; indeed, informationalism subsumes and transforms industrial
technologies from within. For example, the automobile, an important industrial artifact, does not
become less important; it retains its role and appearance while undergoing an informational
transformation whereby the automobile becomes an assemblage of computers and data‐
communication networks that begin to mediate its basic functions, including acceleration,
breaking, and steering.

Application and Assessment

Direction:

1. Make a poster about your understanding on globalism and informalism.


2. The following material should be used in poster making.
i. Long Bond paper.
ii. Coloring materials - crayon, oil pastel, water colors anything that is
available is okay.
3. The students will be scored based on the given rubric.

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Guide Questions:

Direction: Answer the following questions briefly.

1. Why is it important to study international relations?

2. Why is it important to have international relations?

3. What is the role of international law in international relations?

4. Compare and contrast globalism and informationalism.

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5. Kindly give at least 10 examples of institutions that govern international relations and
its role to globalization.

● 10 points max - organization of thoughts, factual, complete, accurate, concise,


comprehensive, and efficient relay of ideas.
● 10 points max - level of participation in the group discussion and knowledge
construction... to be identified by the group members themselves.

(II) ESSAY.
Directions: Give your responses to the following guide questions by writing an essay.

1. Do we need a global interstate system? What is its purpose?

2. What are the challenges brought by the global interstate system?

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https://www.google.com/search?q=rubrics+in+writing+essay&sxsrf

Assignment

Direction: In a short bond paper kindly write an essay about this topic ―The challenges
the world is facing now in terms of politics, economy and technology‖ at least 500 words.

Criteria:

 50 points max - factual, complete, accurate, concise, comprehensive, and efficient relay
of ideas
 30 points max - effective manner or structure of explanation of knowledge or ideas
(grammar and convincing or persuasiveness factor)
 25 points max – less factual, complete, accurate, concise, comprehensive, and efficient
relay of ideas

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References:
Aldama, P. (2018). The contemporary world. 856 Nicanor Reyes, Sr. Street Recto Avenue
Manila Philippines: Rex Bookstore.
Wang Zhuojun. National Identity in the Era of Globalization: Crisis and Reconstruction
Retrieved from: https://www.tandfonline.com/author/Zhuojun%2C+Wang. Retrieved on August
19, 2020
Heimberger Philipp. Does economic globalization affect government spending? A meta-analysis
https://link.springer.com/article/10.1007/s11127-020-00784-8

Porta della Donatella. Global Movements. Retrieved from:


https://www.oxfordhandbooks.com/view/10.1093/oxfordhb/9780190630577.001.0001/oxfordhb-
9780190630577-e-10. Retrieved on August 19, 2020
Globalization: Benefits and Challenges. Retrieved
from:https://velocityglobal.com/blog/globalization-benefits-and-challenges/. Retrieved on
August 19, 2020
https://www.un.org/un70/en/content/history/index.html#:~:text=The%20United%20Nations%20i
s%20an,living%20standards%20and%20human%20rights. Retrieved on August 19, 2020
Felter Claire. The role of the International Criminal Court. Retrieved
from:https://www.cfr.org/backgrounder/role-international-criminal-court Retrieved on August
19, 2020
UNEP: United Nation Environmental Programme. Retrieved
from:https://www.un.org/youthenvoy/2013/08/unep-united-nations-
environmentprogramme/#:~:text=UNEP's%20mission%20is%20to%20provide,compromising%
20that%20of%20future%20generations. Retrieved on August 19, 2020
Sustainable Development Goals. Retrieved
from:https://www.un.org/sustainabledevelopment/sustainable-development-
goals/#:~:text=The%20Sustainable%20Development%20Goals%20are,environmental%20degra
dation%2C%20peace%20and%20justice. Retrieved on August 20, 2020
Intergovernmental Panel on Climate Change. Retrieved from: https://www.ipcc.ch/ Retrieved on
August 20, 2020
International Tribunal Law of the Sea. Retrieved
from:https://wcl.american.libguides.com/c.php?g=563260&p=3877828#:~:text=International%2
0Tribunal%20for%20the%20Law%20of%20the%20Sea%20(ITLOS)*&text=The%20Internatio
nal%20Tribunal%20for%20the%20Law%20of%20the%20Sea%20is,and%20application%20of
%20the%20Convention. Retrieved on August 20, 2020
United Nation Human Rights office of High Commissinoner. Retrieved from:
https://www.ohchr.org/EN/AboutUs/Pages/WhoWeAre.aspx Retrieved on August 20, 2020

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https://www.ohchr.org/Documents/Publications/FactSheet2Rev.1en.pdf
Homeland Security (Second Edition) 2018 . Non-Governmental Organization. Retrieved from:
https://www.sciencedirect.com/topics/economics-econometrics-and-finance/non-governmental-
organization Retrieved on August 20, 2020
World Trade Organization. Retrieved from: https://www.wto.org/english/thewto_e/thewto_e.htm
Retrieved on August 20, 2020
North American Free Trade Agreement. Retrieved from: https://www.trade.gov/north-american-
free-trade-agreement-nafta Retrieved on August 20, 2020

Joseph Nye, April 15, 2002.What are the different spheres of globalism — and how are they
affected by globalization?. Retrieved from: https://www.theglobalist.com/globalism-versus-
globalization/ Retrieved on August 20, 2020

Aneesh, February 29, 2012Informationalism. Retrieved from:


https://onlinelibrary.wiley.com/doi/abs/10.1002/9780470670590.wbeog300#:~:text=Information
alism%20refers%20to%20a%20technological,triggered%20by%20the%20Industrial%20Revolut
ion. Retrieved on August 20, 2020
A.

Photo sources:
https://www.google.com/search?q=Terrorism&tbmc
https://www.google.com/search?q=Price+Instability&tbmns
https://www.google.com/search?q=Currency+Fluctuation&tbm
https://www.google.com/search?q=Unemployment&tbm
https://www.google.com/search?q=biodiversity+loss&tbm
https://www.google.com/search?q=https%3A%2F%2Fwww.economist.com%2Fchina%2F2018
%2F03%2F15%2Fan-overhaul-of-chinas-bureaucracy&tbm

You are done for module 1!

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