LESSON 1

WHAT IS GLOBALIZATION?

Globalization refers to the expansion and intensification of social relations and consciousness across
world-time and world-space

Steger notes that “globalization do not occur merely at an objective, material level but they also involve
the subjective plane of human consciousness”.

Expansion refers to “both the creation of new social networks and the multiplication of existing
connections that cut across traditional political, economic, cultural and geographic boundaries.

Globalisation is the integration of economic through markets across frontiers

Is the “death of distance”

Valiant conquest of the world by universal western culture in face of undying parochialism reactionary
forces of tribalism, localism and nationalism.

Stragers 2 part definition:

End state- pattern/ effect

Driving action- process/cause

Globalization (process)

Globality (pattern or end state)

Social condition- tight interconnections and flows across all 4 dimensions that make current borders
irrelevant.

Condition- state of being or situation

Interconnections & flows- and potential for flows

Borders no longer barriers

This is a goal, not current condition

Goal- something always striving for but never fully reach

Not stable end point can be supplanted by future goals

Indeterminate character does not address how it operates

Globalization a dynamic action or process transformation

Transformation- dynamic ongoing process

Leaving behind nationality

Moving towards globality

 Not yet reached it

Reconfiguration of social space and geography

Local, regional, national no longer describe all get interwined

Anthropologist Arjun Appadurai explain the different kinds of globalization occur on multiple and
intersecting dimensions of integration that he calls “scapes”.

1. Ethnoscape- refers to global movement of people

2. Mediascape- is about flow of culture
3. Technoscape- refers to circulation of mechanical goods and software.
4. Financescape- denotes the global circulation of money
5. Ideoscape- is the realm where political ideas move around.

Appaduarai’s argument is simple:

There are multiple globalizations

If one does not agree that globalization can be divided into five scapes, it is hard to deny appadurais
central thrust of viewing globalization through various lenses.

LESSON 2
The globalization of world economics

Multidimensional phenomenon, creating economic, political, cultural and even technological forms of
connectivity.

Economic Globalization- refers to the expanding interdependence of world economies

This is attributed:

Growing scale of cross-border trade commodities and services

Flow of international capital

Wide and rapid spread of technology

Foreign Direct Investment (FDI) a type of investment in which a company establishes a business in
another country for production of goods and services and still takes part in the management of that
business.

Flow of International Capital

1. Foreign Portfolio Investment- the entry of foreign funds into a country where foreigners deposit
money in a country’s bank or make purchases in the country’s stock and bond markets,
sometimes for speculation
2. Trade Flow- is the buying and selling of goods and services between countries
 3. External Assistance all official resources (loans, grants, technical assistance, guarantees or other
assistance) which the recipient can use or otherwise benefit from in pursuit of its objectives.
4. External Commercial Borrowing (ECB) are commercial loans made by non-resident lenders in
foreign currency to Philippine borrowers; they are used widely to facilitate access to foreign
money by Philippine corporations and public sector undertakings.

Economic Globalization (IMF) is a historical process representing the result of human innovation and
technological progress

It is characterized by the increase integration of economies around the world through the movement of
goods, services, and capital across borders

According to the IMF

 The value of trade (goods and services) as a percentage of world GDP increased from 42.1% in
1980 to 62.1% in 2007.
 Increased trade also means that investments are moving all over the world at faster speeds

The silk road (130 BCE- 1453 CE)

 Economic globalization can be traced from the time when there was economic movement in
Asia, Africa, Europe through the Silk Road a network of trade routes that connected the East
particularly China and the West.
 Historically, these routes led to the discovery of the Philippine island when Portuguese and
Spanish envoys search for spices.

Dennis O. Flynn and Arturo Giraldez believed that the age of globalization began when

“All important populated continents began to exchange products continuously – both with each other
directly and indirectly via other continents – and in values sufficient to generate crucial impacts on all
trading partners.”

4 interconnected dimensions of the economy:

1. Globalization of trade of goods and services – this is demonstrated in the establishment of the
WTO that eases trade among countries.
WTO established in 1995 ensures that trade flows as smoothly, predictably and freely as
possible
2. Globalization of financial and capital markets – this is evident in the liberalization of financial
and capital markets
a. Cross-listing of shares- when a frim lists its equity shares on one or more foreign stock
exchange in addition to its domestic exchange.
b. Cross-hedging – is used to manage risk by investing in two positively correlated
securities that have similar price movements. The investor takes opposing positions in
each investment in an attempt to reduce the risk of holding just one of the securities.
c. Round the clock trading- happening or done all day and all night.
3. Globalization of technology and communication – emphasizes that various transactions and
interactivities that transpire instantly due to the internet and communication technology
 4. Globalization of production – is best illustrated by the existence of multinational corporations
and transnational corporations.

Agents of Interdependence of Global Economy

1. Nation-state – as manager of the national economy is being redefined by globalization.

Can still act as the buffer to negative effects of globalization.

2. Global corporations – Filipino consumers for instance prefer to consume and avail of global
product and services (ex H&M; Uniqlo; Accenture; Amazon; Alibaba; FedEx) thus transforming
national economy into a global one.
3. International monetary system (IMS) - refers to the internationally agreed rules, conventions
and institutions for facilitating international trade, investment and flow of capital among nation-
states.

Open trade system- Its goal was to create a common system that would allow for more efficient trade
and prevent the isolationism of the mercantilist era.

Bretton Woods System – the US dollar was the only convertible currency. Thus it was agreed by 44
countries to adopt the gold-exchange standard.

The Bretton woods system was largely influenbced by the ideas of bristish economist

John Maynard Keynes- believed that economics crises occur

Main purpose of GATT was to reduce tariffs and other hindrances to free trade.

2 financial institutions were established:

1. International Bank for Reconstruction and Development (IBRD) – now known as the WORLD
BANK, is responsible for post-war reconstructions.
2. International Monetary Fund (IMF) – aims to promote international financial cooperation and
strengthen international trade. Global lender

Two types of international financial instituions:

 Intergovernment
 Private (ongovernment)

What is a Central Bank?

It is a financial institution given privileged control over the production and distribution of money
and credit for a nation or a group of nations.

The IMF is also an intergovernmental institutions (IO-International Org) with the following
objectives:

Works to foster global monetary cooperation

Secure financial stability

Facilitate international trade

 Grants financial assistance and loans to developing countries
European Monetary System (EMS) – came after the collapse of the Bretton Woods System. It was
successful in the stabilization process of exchange rates

Globalization allows a worldwide distribution of income

One country needs nation-states to produce or provide raw materials

Globalization reduces poverty

Foreign countries need workforce that lead to OFW working to support their families

Globalization creates mutual dependence between developing and developed countries

Some developing countries rely on developed countries for employment and income while the
latter relies on the former for raw materials and services like labor.

LESSON 3
The world is composed of many countries or state, all of them having different forms of government.

International relations – it deals with the study of political, military and other diplomatic engagements
between two or more countries.

Internationalization – explores the deepening of interactions between states.

The attributes of today’s global system

4 attributes of world politics today

1. There are countries or states that are independent and govern themselves;
2. These countries interact with each other through diplomacy;
3. There are international or organizations, like the United Nations (UN), that facilitate these
interactions;
4. Beyond simply facilitating meetings between states, international organizations also take on
lives of their own.

Evolution of the State

 Tribal State;
 Oriental Empire;
 Greek City States;
 Roman Empire;
 Feudal State;
 Nation-States

Nation-State

Concept is modern phenomenon in human history; Moreover the modern theory of the state system
was perfected only when the concept of sovereignty was introduced into it.
Composed of two non- interchangeable terms:

Not all states are nations

Not all nations are states

STATE – refers to a country and its government. It has four attributes or

characteristics

Sovereignty

Come from Latin word “superanus” meaning supreme. Therefore, sovereignty denotes supreme
power of the state.

Internally, no individuals or groups can operate in a given national territory by ignoring the
state.

Externally, sovereignty means that a state policies and procedures are independent of the
interventions of the other states.

NATION
“imagined community

A large body of people united by common descent, history, culture, or language, inhabiting a
particular country or territory.

Most nations strive to become states.

Nation and state are closely related because it is nationalism that facilitates state formation.

Interstate system- the origin of the present day concept of sovereignty can be trace back to the Treaty
of Westphalia.

Was a set of agreements signed in 1648 to end the Thirty Years’ War between the major
continental powers of Europe.

INTERNATIONALISM – a system of heightened interaction between various sovereign states, particularly

the desire for greater cooperation and unity among states and people.

Divided into two broad categories:

Liberal Internationalism

Socialist Internationalism

Immanuel Kant – first major thinker of liberal internationalism, he likened states in a global system to
people living in a given territory

Jeremy Bentham – who coined the word “international” advocated the creation of international law
that would govern the interstate relations

Guiseppe Mazzini- the first thinker to reconcile nationalism with liberal internationalism in the 19th
century.
Woodrow Wilson (US President (1913-1921)

He saw nationalism as a prerequisite for internationalism.

He forwarded the principle of self-determination – the belief that the world’s nations had a right
to a free and sovereign government.

He became most notable advocate for the creation of the League of Nations

Socialist Internationalism a union of European socialist and labor parties established in Paris in 1889.

Karl Marx – one of Mazzini’s biggest critics who was also an internationalist but he did not believe in
nationalism.

He believed that any true form of internationalism should deliberately reject nationalism which
rooted people in domestic concerns instead of global ones.

He did not divide the world into countries, but into classes:

 Capitalist class – the owners of the factories, companies and other means of production.
 Proletariat class -included those who did not own the means of production but instead worked
for the capitalists.

Friedrich Engels they opposed nationalism because they believed it prevented the unification of the
world’s workers.

LESSON 4
The United nations and Contemporary global governance

What is global Governance?

Global governance refers to the various intersecting processes that create global order.

Source of global governance

1. States sign treaties and form organizations in the process of legislating public international law
(international rules that govern interactions between states as opposed to private companies).
2. NGO’s though not having formal state power, can lobby individual states to behave in a certain
way
3. Powerful transnational corporations have tremendous effects on global labor laws,
environmental legislation, trade policy

International Organization (IO) It is an organization established by treaty or the instrument governed by

international Law and possessing its own international legal personality

Powers of international organizations

1. IOs have the power of classification – Because IOs can invent and apply categories, they create
powerful global standards
 2. IOs have the power to fix meanings – This is a broader function related to the first. States,
organizations and individuals view IOs as legitimate sources of information.
3. IOs have the power to diffuse norms – Norms are accepted codes of conduct that may not be
strict law, but nevertheless produce regularity in behavior.

6 organs of United Nations

1. General Assembly (GA) – the central deliberative and the only organ where all member-states
have equal representation in discussion and consideration and policymaking.
2. Security Council (SC) – is the organ which has the commitment to preserve peace and security.
3. Economic and Social Council (EcoSoC) is the main organ for cooperation, policy review, policy
dialogue and advice on social, economic and environmental issues.
4. International Court of Justice (ICJ) – its task is to settle legal disputes in accordance with
international law. UN’s prime judicial organ.
5. Secretariat is the organ tasked to execute the daily activities as assigned by the five other
organs.
6. Trusteeship Council is the organ task to administer international oversight for 11 trust
territories and to make sure that adequate procedures are taken for independence and self-
government.

Trust Territories Agreements - Trusteeship agreements were concluded between the United Nations
and the administrating power.

Five Ps:

1. People – promote health and safety; Improve public morals.

2. Planet – balanced ecology; Scientific and technological capabilities.

3. Peace – maintain peace and order.

4. Partnership – comfort and convenience of inhabitants.

5. Prosperity – economic prosperity and social justice; Full employment of residents; Preservation and
enrichment of culture.