Ged 104 The Contemporary World - Module

The Contemporary World2020
The Contemporary World
This module on GED 104 - The Contemporary World is designed tointroducestudents to varied
concepts and perspectives of globalization; its effects todifferent social units and different challenges
posed by it.
This module is comprised of seven units with various subtopics.
Unit I deals with the introduction to globalization where students will beabletopresent their own
personal concepts of globalization; and be able to identify different underlying philosophies out of these
notions.
Unit II concerns with the structures of globalization which include thesubtopicson the global
economy, market integration, the global interstate systemandcontemporary global governance. Here,
students will be able to articulate a stanceonglobal economic integration; identify attributes of global
corporations; explain theeffectsof globalization in governments as well as the challenges of global
governanceinthetwenty first century.
Unit III deals with a world of ideas where Global Divides: the North andtheSouthas well as
Asian regionalism is the focus. Students in this unit will beabletodifferentiate the Global South for the
third world and identify the factors leadingtoagreater integration of the Asian region.
Unit IV presents a world of ideas in relation to global media cultureandglobalization of religion.
Students in this unit will be able to determine thedriveof various media to different forms of global
integration, as well as the relationshipbetween religion and global conflict including global peace.
Unit V focuses on globalization and mobility dealing on the subtopics about theglobal city, global
demography and global migration. Students in this unit will beabletoidentify the attributes of the global
city; explain the theory of demographic transitionasit affects global population, and analyze economic,
cultural and social factors underlyingthe global movements of the people.
Unit VI concerns toward a sustainable world focusing on sustainabledevelopment and global
food security. In this unit, students will be able to differentiatestability from sustainability and give
concepts on global food security.
Unit VII deals with global citizenship. Here, students will develop appreciationonthe ethical
obligations of global citizenship.
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With the different lessons covered in this module, it is hoped that studentswill gain the
necessary competencies, skills and values intended for this course.
2
Weeks
1-2 Introduction to Globalization 3-5 The Structures of Globalization
.The Global Economy
. Market Integration
. The Global Interstate System . Contemporary Global
Governance
6-8 A World of Regions

. Global Divides: The North and the South . Asian Regionalism
9 Midterm
!0-11 A World of Ideas
. Global Media Cultures
. The Globalization of Religion
12-14 Global Population and Mobility .The Global City
. Global Demography
.Global Migration
15-16 Towards a Sustainable World . Sustainable Development
. Global Food Security

17-18 Global Citizenship
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At the end of the course the students should be able to:
A. Competencies
1. Distinguish different interpretations of and approaches to globalization;
2. Describe the emergence of global economic, political, social, andcultural systems;
3. Analyze the various contemporary drivers of globalization; 4. Understand the
issues confronting the nation-state; and
5. Assess the effects of globalization on different social units andtheirresponses.
B. Skills
1. Analyze contemporary news events in the context of globalization; 2. Analyze
global issues in relation to Filipinos and the Philippines; and
3. Write a research paper with proper citations on a topic relatedtoglobalization.
C. Values
1. Articulate personal positions on various global issues; and 2. Identify the ethical
implications of global citizenship
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UNIT I INTRODUCTION TO GLOBALIZATION

Coverage: Weeks 1 and 2
Duration: 6 hours
Learning Objectives: After studying the unit, the students should be able to:
∙ synthesize the definitions of globalization by the different authorities;

∙ explain the different attributes or characteristics of globalization;
∙ trace the historical periods of globalization;
∙ identify the different dimensions of globalization; and
∙ expound the major ideological claims of advocates of globalism.
Globalization Concepts, Meanings, Features, and Dimensions

Globalization is the process in which people, ideas and goods spreadthroughout the world,
spurring more interaction and integration between theworld'scultures, governments and economies
(1).
Globalization is a process of interaction and integration among thepeople, companies, and governments
of different nations, a process driven by international trade and investment and aided by information
technology. This process has effectsonthe environment, on culture, on political systems, on economic
development andprosperity, and on human physical well-being in societies around the world
(2)
.
Globalization is about growing worldwide connectivity.
Example:
People are engaged in buying and selling from other places in far-away landslikethe famed Silk
Road across Central Asia that connected China and Europe duringtheMiddle Age for thousands of years
and they also invested in enterprises inothercountries for centuries.
There were similarities in features of those prevailing wave of globalizationbefore the outbreak of
the First World War in 1914 to the current wave. Thereisanincrease cross border- trade, investment, and
migration due to policy andtechnical developments in the past few decades. It is in the area of economic
development that observers believe the world has entered a new phase. Today’s globalizationisfarther,
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faster, cheaper, and deeper in compared to earlier wave of globalization (3).
Example:
Since 1950, the volume of world trade has increased by 20 times and from1997to 1999, flows of
foreign investment nearly doubled from $468 billionto$827domestically.
In the years since the Second World War, and especially during thepast twodecades, many
governments have adopted free-market economic systems, vastlyincreasing their own productive
potential and creating myriad new opportunitiesforinternational trade and investment. Governments also
have negotiateddramaticreductions in barriers to commerce and have established international
agreementstopromote trade in goods, services, and investment. Taking advantageof newopportunities in
foreign markets, corporations have built foreign factoriesandestablished production and marketing
arrangements with foreign partners. Adefiningfeature of globalization, therefore, is an international
industrial and financial businessstructure(4).
One principal driver of globalization is technology. Economic life is dramaticallytransformed by
advancement in information technology. All sorts of individual economicactors like consumers,
investors, and businesses which are valuable newtoolsforidentifying and pursuing economic
opportunities, including faster and moreinformedanalyses of economic trends around the world, easy
transfers of assets, andcollaboration with far-flung partners are provided by information technologies.
Globalization is the process of integration of economies across the worldthroughcross-border
flow of factors product and information
(5)
. According to the International
Monetary Fund (IMF) globalization is the growing economic interdependenceof countries worldwide
through increasing volume and variety of cross border transactionsin goods and services and of
international capital flows and also through the morerapidand wide diffusion of technology
(6)
.
Globalization is an expansion, and intensification of social

relationsandconsciousness across world time and world space. It is about
growingworldwideconnectivity according to Steger.
Further, globalization is considered a multi-dimensional process involvingeconomic, political,

technological, cultural, religious and ecological dimensions. It suggests a dynamic process of change
that results in either positive or negativedevelopment. It leads to the creation of something new; it
involves the multiplicationof
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social connections and various activities that transgress traditional andpolitical, economic, cultural and
geographical lines.
Attributes, Qualities or Characteristics of Globalization Globalization has four

characteristics or qualities. These are:
1. It involves both the creation of new social networks and the multiplication of existing connections that
cut across traditional, political, economic, cultural, and geographical boundaries.
Example:
Brazilian World Cup: Today’s media combine conventional TV coverage with multiple streaming
feeds into digital devices and networking sites that transcend nationally based services.
2. Globalization is reflected in the expansion and the stretching of social relations, activities, and
connections.
Examples:
∙ Reaching of financial markets around the globe
∙ Occurrence of electronic around the clock
∙ Emergence of gigantic and virtually identical shopping malls in all continents to cater to
consumers who can afford commodities all over the world-including products whose
various components were manufactured in different countries. This process is called
social stretching.
Covered in the process of social stretching are:

∙ Non-governmental organization
∙ Commercial enterprises
∙ Social clubs
∙ Regional & global institutions and associations (UN, EU, ASEAN, Googleand
others)
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3. Globalization involves the intensification and acceleration of social exchanges and activities.
Examples:
∙ The worldwide web relays distant information in real time ∙ Satellites provide consumers
with instant pictures of remote events∙ Sophisticated social networking by means of
facebook or twitter has become routine activity for more than a billion people around the
globe.
The intensification of worldwide social relations means that local happenings are shaped by
events occurring far away, and vice versa. This means that there is intermingling of local and global,
with the national and regional in overlapping horizontal scale.
4. Globalization processes do not occur merely or an objective, material level but they also involve
the subjective plane of human consciousness. Without erasing local and national attachments, the
compression of the world into a single place has increasingly made global the frame of reference for
human thought and action.
Globalization involves both the macro-structures of a global community and the micro-structures of
global personhood. It extends deep into the core of the self and its dispositions, facilitating the creation of
multiple individual and collective identities nurtured by the intensifying relations between the personal and
the global. They differ from each other by acceleration in the speed of social exchanges and widening of
geographical scopes(7).
Historical Periods of Globalization

1. The Prehistoric Period (10000 BCE-3500 BCE)
In this earliest phase of globalization, contacts among hunters and gatherers–who were spread
around the world – were geographically limited. In this period due to absence of advanced forms of
technology, globalization was severely limited.
2. The Pre-modern Period (3500 BCE- 1500 CE)
In this period the invention of writing and the wheel were great social and technological boosts
that moved globalization to a new level. The invention of wheel in addition to roads made the
transportation of people and goods more efficient. On the other hand, writing facilitated the spread of
ideas and inventions.
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3. The Early Modern Period (1500-1750)

It is the period between the Enlightenment and the Renaissance. In this period, European Enlightenment
project tried to achieve a universal form of morality and law. This with the emergence of European
metropolitan centers and unlimited material accumulation which led to the capitalist world system helped
to strengthen globalization.
4. The Modern Period (1750-1970)
Innovations in transportation and communication technology, population explosion, and increase in
migration led to more cultural exchanges and transformation in traditional social patterns. Process of
industrialization also accelerated.
5. The Contemporary Period (from 1970 to present)
The creation, expansion, and acceleration of worldwide interdependencies occurred in a
dramatic way and it was a kind of leap in the history of globalization.
Dimensions of Globalization
There are six dimensions in globalization. These include: economic, political, technological,
cultural, religious and ecological dimensions.
1. Economic Dimension
This refers to the extensive development of economic relations across theglobeas a result of
technology and the enormous flow of capital that has stimulatedtradeinboth sources and goods
(8)
.
∙ Major players in the current century’s global economic order 1. Huge international
corporations (General Motors, Walmart, Mitsubishi)
∙ International Economic Institutions (IMF, World Bank, TheWorldTrade
Organization)
∙ Trading Systems
The result of these powerful forces resulted in the wide gap between therichandthe poor
countries.
Major Sources of Economic Growth across Countries
(9)
1. Property rights
2. Regulatory institutions
3. Institutions for macro-economics
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4. Stabilization
5. Institutions for social influence
7. Institutions for conflict management
Economic institutions have decisive influence on investment in physical andhuman capital,
technology, and industrial productions. It is also important for resourcedistribution.
2. Political Dimension
This refers to an enlargement and strengthening of political interrelationsacrossthe
globe
(10)
.
Political Issues that Surface in this Dimension
1. The principle of state sovereignty
2. Increasing impact of various intergovernmental organization 3. Future shapes of
regional and global governance
The globalization rendered almost powerless any political efforts tointroducerestrictive policies affecting
individual states, with the results that the worldinmanyways turned into a borderless world. Governments
often seek to restrict the migrationof peoples, especially those coming from the poor countries in the
global South
(11 a)
.
In the development of supra-national structures and associations heldtogetherby common
concerns and mutually agreed upon norm, the most obvious is political globalization.
On the part of the involved parties, informal structures which are consideredbinding, bring
together world power centers due to common interests.
Example:
∙ Global cities like New York, London, Tokyo, and Singapore arecloselyconnected with one
another than they are to various cities intheir owncountries.
∙ European Union, United nations, NATO, The World Trade Organization
3. Cultural Dimension
This refers to the increase in the amount of cultural flows across theglobe. Cultural
interconnections are at the foundations of contemporary globalization
(11b)
.
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Individualism and consumerism which are the dominant cultural characteristicsof our age and the
drive for economic success stimulated by the internet andothertechnological devices circulate much
more easily than they did in earlier periods. Inthedissemination of popular culture, transactional media
corporations play a major rolewhich brought a sharp rise in homogenized popular culture that is
manifestedinthedominance of fast food restaurant on more aspects of life throughout the world.
Cultural diversity often results hybridization- a constructive interactionprocessbetween global and
local characteristics which is often visible in food, music, dance, film, fashion, and language. As a result
there is a scarcely any society in the worldthat expresses itself in its own self-contained and authentic
culture
(11c)
.
Media empires generated and directed the extensive flow of culture. Examplesof these are
Yahoo, Google, Microsoft, and Disney. Advertisement plays an important rolein this cultural flow by
featuring various celebrities in the television asidefromtransforming newscast into entertainment shows.
4. Religious Dimension
Religion is a personal or institutionalized set of attitudes, beliefs, andpracticesrelating to or
manifesting faithful devotion to an acknowledged ultimate reality or deity(12). It is the most important
defining element of any civilization as contrastedwithrace, language, or way of life. As such, it is also
portrayed as a defining element infutureconflicts. Whether the root cause of a particular conflict or merely
a vehiclefor themobilization of nationalist or ethnic passions, religion is certainly central to muchof
thestrife currently taking place around the globe
(13)
.
Jihadist globalism is a religious response to the materialist assault by theungodlyWest in the rest
of the world. Coming out of what they consider a pure formof Islam, itsdisciples seek to destroy all those
alien influences that have been imposed onMuslimpeople. It applies to those extremely violent strains of
religion that convert theglobal imaginary into very concrete political agendas and terrorist tactics. It is also
appliedtothose violent fundamentalists in the West who seek to transformthe worldintoaChristian Empire
(14)
.
Example:
∙ Bin Ladin understands umma as a single community of believersprofessing faith in the one
and only God, but at the same time committedto destroying not only alien invaders but also
corrupt Islamic elites inorderto return power to the Muslim masses.
∙ Since one third of the world’s Muslim population lives in non-Islamiccountries, the restoration
of God’s proper reign must be a global event. Hence, Al-Qaeda established jihadist cells in
various parts of theworld.
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Roman Catholic Teaching of Globalization

There are eight (8) principles that summarize the Roman Catholic Teachings(15). 1. Commitment
to universal human rights
2. Commitment to the social nature of the human person 3. Commitment to the
common good
4. Solidarity (The principle of Solidarity affirms that membership in thehumanfamily means that all
bear responsibility for one another.)
5. Preferential option of the poor (In the Theology of the Incarnation- Christ Godbecame poor for
us so as to enrich us by his poverty. The poor are susceptibletothe effects of environmental
irresponsibility because they live in countrieswherecheap building materials and cheap labor are
readily available. They regularlywork in farming, fishing, and forestry, areas which suffer
environmental damage).
6. Subsidiary (The Catholic Church teaches that decisions should be madeat thelowest level in
order to achieve the common good.
7. Justice
8. Integral Humanism- is concerned with whole person Justice is divided in three
(3) categories:
1. Commutative justice
This aims at fulfilling the terms of contracts andother
promises on both personal and social level.
2. Distributive justice
This ensures a basic equity in how both the burdenandthe
goods of society are distributed and that ensures that everyperson
enjoys a basically equal moral and legal standing apart fromdifferences in wealth,
privilege, talent and achievements
3. Social justice
This refers to the creation of the conditions in whichthefirst
two categories of justice can be realized and the commongoodidentified and
defended.
According to catholic teaching, a just society is one which these forms of justiceare assured
because they are required by human dignity.
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5. Ideological Dimensions
Ideology is a system of widely shared ideas, beliefs, norms and values amongagroup of people.
It is often used to legitimize certain political interests or todefenddominant power structures. Ideology
connects human actions with some generalizedclaims(14a).Globalization is a social process of
intensifying global interdependencewhileglobalism is an ideology that gives the concept of neo-liberal
values and meaningstoglobalization.
Major Ideological Claims of Advocates of Globalism (14b) 1. Globalization is about the
liberalization and global integration of markets.
The problem with this claim is that liberalization and integration of marketshappen through
political project of engineering free markets by interferenceof centralized state power, and it is in
contrast to the neoliberal ideal of limitedroleof governments.
2. Globalization is inevitable and irreversible.
Globalists believe that spread of market forces driven by technological innovations is
inevitable in globalization. Neoliberals use this claimtoconvincepeople to adopt the natural
discipline of the market if they want to prosper, whichimplies the elimination of government
controls over the market.
3. Nobody is in charge of globalization.
This claim seeks to depoliticize the public debate on globalizationandneutralizing
anti -globalist movements.
4. Globalization benefits everyone.
Globalists talk about the benefits of market liberalization suchasrisingglobal living
standards, economic efficiency, individual freedom, and technological progress. But the reality is
that the opportunities of globalization arespreadunequally and power and wealth are concentrated
among a specific groupof people, regions and corporations.
5. Globalization furthers the spread of democracy in the world. For the globalists
democracy and free markets are synonymous.
The neoliberal explanation of globalization is ideological because it is politicallymotivated and
contributes to the construction of particular meanings of globalizationwhich stabilize existing power
relations. Globalism tries to create collective meaningandshape people’s identities.
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References:
1. searchcio.techtarget.com/definition/globalization
2. http://www.globalization101.org/what-is-globalization/
3. Thomas Friedman. (2012). International Politics: Concepts, Theories, & Issues. Sage publications. Edited by Rumki
Basu
4. https://www.globalization101.org/what-is-globalization/
5. Cherunilam, Francis (2010). International Business: Text and Cases. 5

th
Edition.PHI Learning Private
Limited. New Delhi.
6. Cited by Charles Michell (2000). International Business Culture. World Trade Press. California 7. Steger. Manfred
Globalization: A Very Short Introduction Published by OUP Oxford 8. Pereira, Carlos and Vladimir Teles (2011). Political
Institutions, Economic Growth, and Democracy:
The Substitute Effect. https:// www. brookings. Edu/ opinions/ political- institutions –economicgrowth- and-
democracy- the – substitute- effect/. January 19
9. Rodrik, D. (2007). One Economics Many Recipes: Globalization, Institutions, and EconomicGrowth Princeton: Princeton
University Press.
10. Book Review on Globalization: a very short introduction. Faculties of American Studies. http:// www. American.
Mcgill.ca/nast/; http:/ /www. American. Edu/sis /cnas.
11.(a,b,c,) Seazolts, Kevin R (2012). A Virtuous Church: Catholic Theology, Ethics, and Liturgy for the21st Century
12. Samuel P. Huntington (1997). The Clash of Civilizations and the Remaking of World Order (NewYork:
Touchstone/Simon and Schuster
13. Johnston, Douglas M. Religion and Culture: Human Dimensions of Globalization. http:// indianstrategic
knowledge online. com/ web/ C31 Johns. pdf
14. Seazolts, Kevin R (2012). A Virtuous Church: Catholic Theology, Ethics, and Liturgy for the21st Century
16. (a,b) Steger, Manfred. Globalization: A Very Short Introduction. Published by OUP Oxford .
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UNIT I INTRODUCTION TO GLOBALIZATION
Unit Test:
A. Identification. Answer the following item by supplying the correct answer onthe blank.
__________ 1. In this period the invention of writing and the wheel were great social and technological
boosts that moved globalization to a newlevel.
__________ 2. It is often used to legitimize certain political interests or todefenddominant power
structures.
__________ 3. This is considered as one principal driver of globalization.
__________ 4. This refers to the extensive development of economic relationsacrossthe globe as a
result of technology and the enormous flowof capital that has stimulated trade in both
sources and goods
__________ 5. This results hybridization- a constructive interaction process betweenglobal and local
characteristics which is often visible in food, music, dance, film, fashion, and language
__________ 6. This is a religious response to the materialist assault by theungodlyWest in the rest of
the world.
__________ 7. The period of leap in the history of globalization.
__________ 8. This process has effects on the environment, on culture, onpolitical systems, on
economic development and prosperity, and onhumanphysical well-being in societies
around the world; this is about growingworldwide connectivity.
__________ /__________ 9 - 10. These are the dominant cultural characteristicsof ourage and the drive
for economic success stimulated by the internet andother technological devices
circulate much more easily than theydidinearlier periods.
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B. True or False. Identify whether the statement is correct or not. Write Trueif it iscorrect, False if
not.
__________1. Today’s globalization, relatively, has more disadvantages in comparisonto earlier wave of
globalization.
__________2. During the Prehistoric Period, globalization was severely limited.
__________3. Globalization involves the macro-structures of a global communityasitsbasic
coverage and concern.
__________4. Media empires generated and directed the extensive flowof culture.
__________5. Social justice ensures a basic equity in how both the burdenandthegoods of society are
distributed and that ensures that every personenjoys a basically equal moral and legal standing apart
fromdifferences
in wealth, privilege, talent and achievements
__________6. The Roman Catholic teaching of globalization believes that thepoor aresusceptible to
the effects of environmental irresponsibility becausetheylive in countries where building materials and
labor are expensive.
__________7. Social networking, social stretching, and controlled social
exchangesandactivities are among the positive implications of globalization.
__________8. People engaging in buying and selling from other places infar-awaylands is an
example of how globalization works.
__________9. Globalization processes occur on an objective, material level of
humanconsciousness.
__________10. Process of industrialization accelerated during the Modern Period.
C. Essay
Discuss the major ideological claims of advocates of globalism, and expressyourpoint of
agreement/disagreement. (5 points each)
1. Globalization is about the liberalization and global integration of markets.
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2. Globalization is inevitable and irreversible.
3. Nobody is in charge of globalization.
4. Globalization benefits everyone.
5. Globalization furthers the spread of democracy in the world.
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UNIT II THE STRUCTURES OF GLOBALIZATION
Coverage: Week 3, 4, and 5
Duration: 9 hours
The Global Economy (2.25 hours; week 3)

Market Integration (2.25 hours; week 3 and 4)
The Global Interstate System (2.25 hours; week 4 and 5)
Contemporary Global Governance (2.25 hours; week 5)
∙ define economic globalization

∙ explain the two major driving forces of global economy
∙ differentiate economic globalization from internationalization ∙ trace the origin of economic
globalization
1.The Global Economy

2. Market Integration
3.The Global Interstate System
4. Contemporary Global Governance
THE GLOBAL ECONOMY

Economic globalization refers to the increasing interdependenceof worldeconomies as a result of
the growing scale of cross-border trade of commoditiesandservices, flow of international capital and wide
and rapid spread of technologies. It reflects the continuing expansion and mutual integration of market
frontiers, andisanirreversible trend for the economic development in the whole world at the turnof
themillennium (17).
According to the International Monetary Fund
(18)
economic globalizationisa
historical process, the result of human innovation and technological progress. It referstothe
increasing integration of economies around the world, particularly throughthe
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movement of goods, services, and capital across borders. It also referstothemovement of people
(labor) and knowledge (technology) across international borders.
In economic terms, globalization is nothing but a process making theworldeconomy an organic
system by extending transnational economic processesandeconomic relations to more and more
countries and by deepening the economicinterdependencies among them (19).
Two Major Driving Forces for Economic Globalization 1. The rapid growing of information in all
types of productive activities
2. Marketization (A restructuring process that enables state enterprisestooperate as market-
oriented firms by changing the legal environment inwhichthey operate
(20)
and can be achieved through reduction of state subsidies, organizational
restructuring of management such as corporatization, decentralization, and privatization
(21)
.
Rapid development of science and technologies served as basis for immediateglobalization of the
world economies which in turn provided an environment wherethereis a swift spreading of market
economic system all over the world. It is also developedbased on the increasing cross-border division of
labor which penetrates withintheenterprises of different countries on the level of production chains.
Dimensions of Economic Globalization

1. The globalization of trade of goods and services
2. The globalization of financial and capital markets
3. The globalization of technology and communication 4. The globalization of
production
Difference between Economic Globalization from Internationalization

Economic globalization is a functional integration between internationallydispersed activities
which means that it is a qualitative transformation rather thanaquantitative change while
internationalization is an extension of economic activitiesbetween internationally dispersed activities
(22)
.
Economic globalization produces its own major players in theformof transnational corporations
(TNCs), the main driving forces of economic globalizationof
19
the last 100 years or roughly two-thirds of world export

(23)
. Transnational corporation
otherwise known as multi -national corporation is a corporation that has a homebase, but is registered,
operates and has assets or other facilities in at least one other countryat one time
(24)
. Examples are the US-based General Electric (GE), the Coca-ColaCompany of Atlanta,
Georgia, US Nike and others.
Origin of Economic Globalization

Economic globalization is a process that creates an organic systemof
theworldeconomy.
In the 16
th
century world system analysts identify the origin of modernityandglobalization
through long distance trade in the 16
th
century(25). This best known
example of archaic globalization is the Silk Road, which started in westernChina, reached the
boundaries of the Parthian empire, and continued onwards towardsRome(26). It also connected Asia,
Africa, and Europe
(27)
.
In the 17
th
and 18
th
century global economy exists only in trade and exchange
rather than production as the world export to World GDP did not reached 1 to2percent (28).
In the 19
th
century the advent of globalization approaching its modernformis
witnessed. A short period before World War I is referred to as goldenageof globalization characterized by
relative peace, free trade, financial and economicstability(29). Growth in international exchange of goods
accelerated in the second quarter of the19th century. Global economy in the 19
th
and 20
th
centuries grew by an averageof
nearly 4 percent per annum, which is roughly twice as high as growth in thenational incomes of the
developed economies since the late 19
th
century(30).
International Monetary Systems and Gold Standard
International monetary system (IMS) refers to a systemthat forms rulesandstandards for

facilitating international trade among the nations. It helps in reallocatingthe capital and investment from
one nation to another. It is the global networkof thegovernment and financial institutions that determine
the exchange rate of different currencies for international trade. It is a governing body that sets rules and
regulationsby which different nations exchange currencies with each other
(31)
.
IMS as rules, customs, instruments, facilities, and organizations for effectinginternational

payments with the main task of facilitating cross-border transactions,
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especially trade and investment
(32)
. It also reflects economic power and interests, as
money is inherently political, an integral part of high politics or diplomacy (33).
Evolution of the International Monetary System
In 1870 to 1914, with the help of gold and silver, trade was carried without anyinstitutional support.
Monetary system during that time was decentralized whilemarket based and money played a minor role
in international trade in contrast to gold.
Gold was believed to guarantee a non-inflationary, stable economic environment, a means for
accelerating international trade
(34)
and the gold standard functionedasa
fixed exchange rate regime, with gold as the only international reserve.
Gold Standard is a system of backing a country’s currency with its goldreserves. Such currencies
are freely convertible into gold at a fixed price, and the countrysettlesall its international trade
transactions in gold
(35)
After World War I, the use of gold declined due to increased expenditureandinflation which were caused
by war. Major economic powers were on gold standardsbut could not maintain it and failed because of
the Great depression in 1931.
In 1944, 730 representatives of 44 nations met at Bretton Woods, NewHampshire, United

States to create a new international monetary systemcalledastheBretton Woods system, the aim of
which is to create a stabilized international currencysystem and ensure a monetary stability for all the
nations.
Since the United States held most of the world’s gold, all the nationswoulddetermine the values
of their currencies in terms of dollar. The central banks of nationswere given the task of maintaining
fixed exchange rates with respect to dollar for eachcurrency. The Bretton Woods system ended in 1971
as the trade deficit andgrowinginflation undermined the value of dollar in the whole world. In 1973,
thefloatingexchange rate system, also known as flexible exchange rate systemwas developedthat was
market based
(36)
.
To assess whether the gold standard was successful, the following rolesof aproperly designed IMS must
be considered: to lend order and stability toforeignexchange markets, to encourage the elimination of
balance-of-payments problems, andto provide access to international credits in the event of disruptive
shocks
(37)
. Thegold
standard has never worked satisfactorily in controlling inflation or maintainingequilibrium in
international transactions.
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European Monetary Integration
European monetary integration refers to a 30-year long process that beganat the end of the
1960s as a form of monetary cooperation intended to reducetheexcessive influence of the US dollar on
domestic exchange rates, and led, throughvarious attempts, to the creation of a Monetary Union and a
common currency. ThisUnion brings many benefits to Member States.
However, over the past decade, the build-up of macroeconomic imbalances, andthe imprudent
fiscal policies of some Member States, resulted in the continuingdoublecrisis in banking and sovereign.
As a result of this crisis, many individual Member Statesface difficult re-adjustment processes, and
Members States collectively must reappraisethe governance architecture of Monetary Union and adopt
new mechanisms todetect, prevent, and correct problematic economic trends
(38)
.
The European Monetary System (EMS) on the other hand is a1979arrangement between
several European countries which links their currenciesinanattempt to stabilize the exchange rate. This
system was succeededbytheEuropean Economic and Monetary Union (EMU), an institution of the
EuropeanUnion (EU), which established a common currency called the euro.
The European Monetary System originated in an attempt to stabilize inflationandstop large exchange
rate fluctuations between European countries. Then, in June1998, the European Central Bank was
established and, in January 1999, a unifiedcurrency, the euro, was born and came to be used by most
EU member countries
(39)
.
According to the European Commission in 2008, the first ten years of theEMUwere an evident
success for participating countries in terms of increased tradeandcapital transactions, more integrated
economies, restored macroeconomic stabilityandthe utilization of Euro as the second most widely used
reserve currency. But in2008to2009 the European Union (EU) is presented with dramatic challenges
brought byglobal financial and economic crisis.
The EU in 2010 in response to the crisis enacted the three- pillar financial rescueprogram which includes:
the European Financial Stability Mechanism, the EuropeanFinancial Stability Facility, the financial
assistance of International Monetary Fund(IMF). Since the three -pillar system is temporary EU in 2013
activated its own permanent European Stability Mechanism. The future of EMU depends on the
willingnessof member states to agree on more fundamental changes in the governance of Eurozone.
The European Financial Stability Mechanism (EFSM) is a permanent fundcreated by the European
Union (EU) to provide emergency assistance tomemberstates within the Union. It raises money through
the financial markets, andisguaranteed by the European Commission. Fund raised through the markets,
usethe
22
budget of the European Union as collateral. The European Financial StabilityFacility(EFSF) on the other
hand, is an organization created by the European Union toprovideassistance to member states with
unstable economies. The EFSF is a special purposevehicle (SPV) managed by the European Investment
Bank, a lending institution. Thefund raises money by issuing debt, and distributes the funds to
eurozonecountrieswhose lending institutions need to be recapitalized who need help
managingtheirsovereign debt or who need financial stabilization(40).
International Trade and Trade Policies
International trade is the exchange of goods, services and capital acrossnational borders. It is
a multi-million dollar activity, central to the Gross DomesticProduct (GDP) of many countries, and it is
the only way for many peopleinmanycountries to acquire resources
(41)
. In acquiring products where demand is inelasticand
domestic supply is inadequate absent traders, consumers and suppliers areforcedtoeither develop
substitute goods or devote a large percentage of their income.
International trade is the exchange of goods or services along international borders. This type
of trade allows for a greater competition and more competitivepricingin the market
(42)
. The two key concepts in the economics of international tradeare
specialization and comparative advantage. Comparative advantage comes in; solongas the two
countries have different relative efficiencies, the two countries canbenefit from trade – the country with
absolute advantage will still benefit by directingitsresources to those goods where it is most productive
and trading for the otherswhilespecialization refers to this process; countries as well as individual
businessescanmaximize their welfare by specializing in the production of those goods wheretheyaremost
efficient and enjoy the largest advantages over rivals
(43)
.
More affordable products for the consumer is also the result of competition. Theeconomy of the
world is also affected by the exchange of goods as dictatedbysupplyand demand, making goods and
services obtainable which may not beavailableglobally to consumers. Trading globally gives consumers
and countries the opportunityto be exposed to goods and services not available in their own countries.
Almost everykind of products can be found on the international market aside fromservicesbeingtraded
like banking, tourism, etc. Global trade allows wealthy countries tousetheirresources such as labor,
technology, or capital more efficiently. Because countriesareendowed with different assets and natural
resources, some countries may producethesame good more efficiently and therefore sell it more cheaply
than other countries(44). Specialization in international trade happens if a country cannot efficiently
produceanitem and obtain it by trading with another country that can.
Trade policies on the other hand refer to the regulations and agreement of foreign countries
(45)
. It defines standards, goals, rules, and regulations that pertainto
23
trade relation between countries

(46)
. Each country has specific policies formulatedbyits
officials. Boosting the nation’s international trade is the aim of each country. Taxesimposes on import
and export, inspection, regulations, tariffs and quotas areall part of country’s trade policy.
Focuses of Trade Policy in International Trade

Tariffs
These are taxes or duties paid for a particular class of imports or exports. Imposing taxes
on imported and exported goods is a right of every country. Heavy tariffs on imported goods are
levied by some nations for the protectionof their local industries. The prices of imported goods in
local markets areinflated
due to high imported taxes to ensure demand of local products.
Trade barriers
Theses are measures that governments or public authorities introducetomake imported

goods or services less competitive than locally producedgoodsand services
(47)
. They are state-imposed restrictions on trading aparticularproduct or with a
specific nation. It can be linked to the product, serviceliketechnical requirement and it can also
be administrative in nature suchasrulesand procedures of transactions. Tariffs, duties, subsidies,
embargoes andquotasare the most common trade barriers.
Safety
This ensures that imported products in the country are of highquality. Inspection
regulations laid down by public officials ensure the safety andqualitystandards of imported
products.
Types of Trade Policies
National Trade Policy

This safeguards the best interest of its trade and citizen.
Bilateral Trade Policy
24
To regulate the trade and business relations between two nations, thispolicy is formed.
Under the trade agreement the national trade policiesof boththe nations and their negotiations
are considered while bilateral tradepolicyisbeing formulated.
International Trade Policy
This defines the international trade policy under their charter liketheInternational
economic organizations, such as Organization for EconomicCo-operation and Development
(OECD), World Trade Organization (WTO) andInternational Monetary Fund (IMF).The best
interests of both developedanddeveloping nations are upheld by the policies.
Trade Policy and International Economy
In most developed countries where open market economy prevails, theinternational economic
organizations support free trade policies. In thecaseof developing nations partially-shielded trade
practices are preferred to protect their local trade industries. The following are dependent on
globalization: sound trade policiesformarket changes, establishment of free and fair trade practices and
expansionof possibilities for booming international trade.
The World Trade Organization (WTO)
The World Trade Organization (WTO) deals with the global rules of tradebetween nations with the main
function of ensuring that trade flows smoothly, predictably and freely. It is the only global international
organization dealingwiththerules of trade between nations with WTO agreements, negotiated and
signedbythebulk of the world’s trading nations and ratified in their parliaments at its heart
(48)
. WTO
is viewed as the means by which industrialized countries can gain accesstothemarkets of
developing countries
(49)
.
Global Economy Outsourcing
Outsourcing is an activity that requires search for a partner and relation-specificinvestments that are
governed by incomplete contracts and the extent of international outsourcing depends on the thickness
of the domestic and foreign market for input suppliers, the relative cost of searching in each market, the
relative cost of customizinginputs and the nature of the contracting environment in each country
(50)
. Subcontracting
is a central element of the new economy
(51)
. It is the practice of assigning part of the
obligations and tasks under a contract to another party known as a subcontractor and
25
especially prevalent in areas where complex projects are the normlike constructionandinformation
technology
(52)
.
Outsourcing is a means of finding a partner with which a firmcan establishabilateral relationship and
having the partner undertake relationship-specific investmentsso that it becomes able to produce goods
and services that fit the firm’s particular needs. Often, the bilateral relationship is governed by a contract,
but even in those casesthelegal document does not ensure that the partners will conduct the
promisedactivitieswith the same care that the firm would use itself if it were to performthe tasks
(53)
.
One of the most rapidly growing components of international tradeistheoutsourcing of

intermediate goods and business services. There are threeessential features of a modern outsourcing
strategy.
1. Firms must search for partners with the expertise that allows themtoperformthe
particular activities that are required.
2. They must convince the potential suppliers to customize products for theirown specific needs.
3. They must induce the necessary relationship-specific investmentsinanenvironment

with incomplete contracting.
Possible Determinants of the Location of Outsourcing 1. Size of the country can
affect the “thickness” of its markets.
2. The technology for search affects the cost and likelihood of findingasuitablepartner.
3. The technology for specializing components determines the willingnessof apartner to

undertake the needed investment in a prototype.
4. The contracting environments can impinge on a firm’s ability toinduceapartner to invest in

the relationship.
26
References:
The Global Economy
17. Gao Shangquan (2000). Economic Globalization: Trends, Risks and Risk
Preventionhttp://www.un.org/en/development/desa/policy/cdp/index.shtml
18. IMF (2008). Globalization: A brief overview. Issues Brief Issue 02/08. Washington, DC. 19. Szentes, T.
(2003) World Economics 2. Budapest Akademiai Kiado
20. Hoeven, van der R & György Sziráczki (1997). Lessons from Privatization. Geneva: International Labour Organization
21. Vickerstaff, Sarah (1998). The Transformation of Labour Relations. Oxford University Press. ISBN0- 19-828979-0 p.63
22. Dicken P. (2004). Global shift: Reshaping the global economic map in the 21
st
century.
London :SAGE.
23. Gerrifi, G. (2005). The Global Economy: Organization, Governance, and Development,. In Smesler Nand Swedberg R.
(eds) Handbook of Economic Sociology, Princeton, NJ: Princeton UniversityPress, pp. 160-82.
24.Whiting, Brianna (2017). http://study.com/academy/lesson/transnational-corporation-definition- examples.html
25. Braudel, F (1973). The Mediterranean and the Mediterranean world in the age of Phillip II. Bekerleyand Los Angeles:
University of California Press.
26. Lee, Adela C. Y.(2010). Silkroad Foundation: “Ancient Silk Road Travellers”. Silk-road.com. Rerieved2010-07-
31
27. Gills BK and Thompson WR (2006). Globalization, global histories and historical globalities. InGills, BK and Thompson
(eds) Globalization and global history. London:Routledge, pp. 1-15.
28. Held D. and McGrew A. (1999). Global Transformations: Politics, economics and culture. Stanford, CA: Stanford
University Press.
29. O’Rourke KH and Williamson JG (1999). Globalization and History. The evolution of a nineteen- century Atlantic economy.
Cambridge University Press, pp. 285-300.
30. Pfister, Ulrich, (2012) http:// ieg- ego.eu/en threads/ backgrounds/ globalization=The PeriodoftheAtlantic Economy
18501931.
31.Nitisha. International Monetary System: http:// www. economics discussion. net/ articles/ international- monetary system/
4256
32. Salvatore D. (2007). International Economics. Hoboken; John Wiley and Son.
27
33. Cohen, B. (2000). Money and power in world politics. In Lawton TC, Rosenau JN and VerdunAC(eds) Strange power.
Aldershot, UK: Ashgate Publishing pp. 91-113.
34. Einaudi, L. (2001). Money and Politics: European monetary unification and the international goldstandard. 1865-
1873. Oxford: Oxford University Press
35. http:// www. business dictionary. Com/ definition/ goldstandard.html
36. www. economics discussion. net/ articles/ international-monetary-system/4256
37. Eichengreen, BJ (1996). Globalizing capital: A History of the International Monetary System. Princeton, NJ: Princeton
University Press.
38. http:// www. europarl. europa. eu/Reg Data/etudes/ BRIE/2015/551325/ EPRS_ BRI (2015) 551325_EN. Pdf
39. European Monetary System (EMS) http: www. Investopedia.com/ terms/e/ems.asp#ixzz4vBgDqKo340.
European Commission, 2008.
41. Investopedia. com Website. “International Trade” Retrieved from: https:// www. investopedia. com/terms/e/ european-
financial- stability- facility. asp
42. http://www.businessdictionary.com/definition/international-trade.html
43. Simpson, Stephen D. Macroeconomics: International Trade. https:// www. Investopedia. com/ university/
macroeconomics/11.asp
44. What is International Trade? https:// Investopedia. com/ articles/03/112503.asp#xzz4y0nbUED8.
45. The Balance .com Website. Trade Policy. Retrieved from: https:// www.the balance.comtrade-policy- 4073939
46.Economywatch.com Website. “Trade Policy”. Retrieved fromhttp://www.economywatch.com/international-trade/trade-

policy.html.Dated June 29, 2010
47. Um.dk/en Website. “What is Trade Barrier”. Retrieved from:http://um.dk/en/tradecouncil/barriers/what is/
48. WTO.org.comWebsite.“The WTO”. Retrieved from https:// www.wto.org/english/the wtoe/thewto_ehtm 2018.
49. Khor M. (1995). “The WTO and the South: Implications and Recent Developments”. ThirdWorldNetwork
50. Grossman, Gene, and Helpman, Elhanan (2005). Outsourcing in a Global Economy. Reviewof Economic Studies.
Retrieved from: http//about.jstor.org.com
28
51. Financial times, July 31, 2001
52. Investopedia.com Website (2018). Subcontracting https://

www.investopedia.com/terms/ssubcontracting.asp#ixzz5QIC0Oxw
53. Marsh, P. (2001). “A Sharp Sense of the Limits of Outsourcing”. The Financial Times, 31 July, 10
29
Duration:9 hours


globalization
MARKET INTEGRATION
Market integration refers to how easily two or more markets can tradewitheachother(54a). It occurs
when prices among different locations or related goods followsimilarpatterns over a long period of time.
Groups of prices often move proportionally toeachother and when this relation is very clear among
different markets it is saidthat themarkets are integrated
(54b)
.
The term is further used in identifying related phenomenon of market of goodsand services experiencing
similar patterns of increase or decrease in prices of products. It may also refer to the movement of prices
of related goods and services soldina
defined geographical location in similar patterns. When government implement certainstrategy to
control the direction of economy then integration is intentional whileshifting
30
in supply and demand that has a spillover effect on several markets is another factor of market integration.
One way of helping integration of market by reducing barrierstotrade and increasing fluidity between
markets is through foreign trade.
Market integration exists when there are exerted effects that prompt similarchanges or shifts in
other markets that focus on related goods on events occurringwithin two or more markets.
Example:
China produces toys at a cheaper price than the US. If foreign trade increasedbetween the two
countries, toys could be sold to the US more easily, making themmoreavailable, thus reducing price
(55a)
.
If the demand for baby dolls within a given geographical market were tosuddenlybe reduced by
50%, there is a good chance that the demand for baby doll clothingwould also decrease in proportion
within that same geographical market. Shouldthebaby market increase, this would usually mean that the
market for doll clothingwouldalso increase. Both markets would have the chance to adjust pricing in
order todeal with the new circumstances surrounding the demand, as well as adjust other factors, such
as production
(55b)
.
Types of Related Markets where Market Integration Occurs Stock Market Integration
This is a condition in which stock markets in different countriestrend

together and depict same expected risk adjusted returns. Two marketsareperfectly integrated if
investors can pass from one market to another without paying any extra costs and if there are
possibilities of arbitrationwhichensures the equivalence of stock prices on both markets
(56)
.
Financial Market Integration
It is an open market economy between countries facilitated by acommoncurrency and the

elimination of technical, regulatory and tax differencestoencourage free flow of capital and
investment across borders
(57)
. It occurswhen
lending rates in several different markets begin to move in tandemwithoneanother.
Emergence of similar patterns within the capital, stock, andfinancial
31
markets with those trends coming together to exert a profound influenceontheeconomy of
that nation is involved in the integration within a nation.
Global Corporation
A global corporation is a business that operates in two or more countries. It also goes by the
name "multinational company"(58). Several advantages are offeredbyglobal expansion of business over
running a strictly domestic company. Successindifferent types of economies is achieved by means of
multiple countries operationwhileit causes also logistic and cultural challenges. Expanding revenue
opportunitiesanddiversifying business risk are the purposes of becoming global corporation.
Accesstomore customers and capital is obtained through a model that works domesticallywell and
translates foreign markets well.
Example:
One can find more customers in a country whose economy is vibrant andexpanding in lieu of
stagnant local and domestic economy or market share that hashit aplateau.
Historical Periods of Global Corporation
An approach to the study of globalization that locates the phenomenonitself inearly patterns of
trade and exchange is known as historical globalization.
In early historical periods as both cities and countries extended their reachbeyond their own
borders, a form of globalization was initiated which thenfollowedcomplex patterns of interactive
engagements organized through trade andindustrydirectly influenced by the emergent and
subsequently dominant technologies especiallyin shipping and navigation
(59)
. The entities operating within this environment were
functionally and organizationally not different from contemporary organizationsbeingpossessed with
head offices, foreign branch plants, corporate hierarchies, extraterritorial business law, and even bit of
foreign direct investment and value-addedactivity(60).
Combination of invention and social organization resulting to increaseinworldwide capital and wealth of
nation is allowed by modern nation state systemthat emerged in the period prior to the end of World War
II. American Corporationsledtheeconomic recovery and expansion after the World War II destruction.
This periodupto
32
the reentry of Japanese and European corporation to the global scene is viewedasmultinational
corporations (MNCs)
(61)
. From the end of World War II to the present is
considered the period of transformation of global corporation.
The Finance Function in a Global Corporation
As corporations go global, capital markets open up within them, givingcompanies a powerful
mechanism for arbitrage across national financial markets(62). Chief financial officers (CFOs) must
balance the opportunities with the challengesof operating in multiple environments in managing their
internal markets in buildinganadvantage. These three functions can be created by CFOs through
exploitingtheirinternal capital markets.
1. Financing
A group’s tax bill can be reduced by the CFO like borrowing incountrieswith high tax
rates and lending to operations in countries with lower rates.
2. Risk Management
Global firms can offset natural currency exposures through worldwideoperations instead
of managing currency exposures through financial markets.
3. Capital budgeting
Getting smarter on valuing investment opportunities CFOs can addvalue.
Foreign Direct Investment
Foreign Direct Investment (FDI) was of corporate origin. It is a major driver of extended global
corporate development. It is an investment made by a companyorindividual in one country in business
interests in another country, in the formof eitherestablishing business operations or acquiring business
assets in the other country, suchas ownership or controlling interest in a foreign company and the key
featureof foreigndirect investment is that it is an investment made that establishes either effectivecontrol
of, or at least substantial influence over, the decision making of a foreign business(63).
Foreign direct investment is made open to economies; frequently involvesmorethan just a capital
investment and includes provision of management or technologyaswell. There are many methods to
establish FDIs such as opening a subsidiaryorassociate company in a foreign country; acquiring a
controlling interest in anexistingforeign company, or by means of a merger or joint venture with a foreign
company.
33
BRICS Economies
Brazil, Russia, India, China and South Africa (BRICS) is an acronymfor thecombined
economies of Brazil, Russia, India, China and South Africa. BRIC, without South Africa, was originally
coined in 2003 by Goldman Sachs, which speculatesthat by2050 these four economies will be the most
dominant. South Africa was addedtothelist on April 13, 2011 creating "BRICS"(64a). These five countries
were among thefastest growing emerging markets as of 2011.
Further, Brazil, Russia, India and China (BRIC) refer to the idea that ChinaandIndia will, by 2050,
become the world's dominant suppliers of manufactured goodsandservices, respectively, while Brazil and
Russia will become similarly dominant assuppliers of raw materials. Due to lower labor and production
costs in thesecountriesnow including a fifth nation, South Africa, many companies have also cited
BRICasasource of foreign expansion opportunity i.e. promising economies in which to invest
(64b)
.
General Agreement on Trade in Services (GATS)
The General Agreement on Trade in Services (GATS) is the first multilateral agreement
covering trade in services which was negotiated during the last roundof multilateral trade negotiations,
called the Uruguay Round, and came into forcein1995. The GATS provides a framework of rules
governing services trade, establishesamechanism for countries to make commitments to liberalize
trade in servicesandprovides a mechanism for resolving disputes between countries
(65)
.
GATS has similar principle with the General Agreement on Tariffs andTrade(GATT) that deals
with trade in goods. The two primary objectives of GATTSaretoensure that all signatories are treated
equitably when accessing foreign markets; andsecond, to promote progressive liberalization of trade
and services.
34
References
Market Integration
54.(a,b) De Braux, P. (2017) “What is Market Integration” Retrieved from: https:// www. qoura. Com/ What –is-market-
integration. Dated March 3, 2017.
55.(a,b) “What is Market Integration” Retrieved from: http://www.wisegeek.com/what-is-market integration.html

(n.d.)
56. Arouri, M.E.H. and Jawadi, F. (2009), “Stock market integration in emerging countries: further evidence from the
Philippines and Mexico”, Retrieved from: www.finance‐ innovation.org/risk09/work/1208330.pdf Dated: October 9,
2010.
57. Investorwords.com Website. “Integrated Financial Market” Retrieved from: http:// www. investorwords. Com/ 15491/
integrated financial markets. html #ixzz55 p6oq8Hb.
58. Kokemuller, Neil. (2018). “What is a Global Corporation?” Retrieved from: http:// smallbusiness,chron. com/ global-
corporation- 63267. Html
59. Harvey D. (1990). The Condition of Post Modernity: An Inquiry into the Origins of Cultural Change. Oxford: Blackwell
Publishers.
60. Moore K. and Lewis D. 2000 Foundation of Corporate Empire. London: Prentice Hall.
61 Barnet and Mueller (1974). Global Reach: The Power of the multinational corporations. NewYork: Simon and Schuster
62.Desai, Mihir A. 2008. The Finance Function in a Global Corporation. Harvard Business Publishing. 63. Foreign
Direct Investment (FDI) https://www. investopedia.com/ terms/f/fdi. asp#ixzz58qxoZoR0
64.(a,b,) Brazil, Russia, India, China And South Africa (BRICS) https://www.
investopedia.com/terms/b/brics.asp#ixzz58r2tplyS
65.General Agreement on Trade in Services (GATS) 2013 http://www. international. gc.ca/tradeagreements-accords-
commerciaux/wto-omc/gats-agcs/index.aspx?lang=eng
35
Duration: 9 hours


globalization

3.The Global Interstate System 4. Contemporary Global Governance
THE GLOBAL INTERSTATE SYSTEM
Globalization and the Nation- States

Globalization in the early years of the 21
st
century has not displacedthestate.
Max Weber, a German social theorist define state as a compulsory political organizationwith a
centralized government that maintains a monopoly of the legitimate useof forcewithin a certain territory
(66)
. Hedley Bull, a 20
th
century international philosopher stated
that states are independent political communities each of which possessesagovernment and asserts
sovereignty in relation to a particular portion of theearth’ssurface and a particular segment of the
human population
(67)
. This meansthat
government and constitutions come and go but states readily endure.
36
Nation on the other hand is an imagined political community and imaginedasboth inherently
limited and sovereign
(68a)
.
∙ It is imagined because the members of even the smallest nationwill neverknow most of their
fellow- members, meet them, or even hear of them, yet in the minds of each lives the
image of their communion
(68b)
.
∙ The nation is imagined as limited because even the largest of them, encompassing perhaps a
billion human beings, has finite, if elastic, boundaries, beyond which lie other nations
(68c)
.
∙ It is imagined as sovereign because the concept was born in anageinwhich Enlightenment
and Revolution were destroying the legitimacyof thedivinely ordained, hierarchical dynastic
realm…nations dreamof beingfree, and if under God, directly so. The gauge and emblemof
this freedomis the sovereign state
(68d)
.
∙ It is imagined as community, because regardless of actual inequalityandexploitation

that may prevail in each, the nation is always conceivedasadeep horizontal
comradeship(68e).
In everyday political speech and media commentary, the terms nation andstatesare used
interchangeably. The term nation-state has a dual concept, with themodernstate going back to the Peace
of Westphalia, and nationalismtracingbacktoProtestantism, the Enlightenment, the rise of the vernacular,
with both conceptsof nation and state fused in the French Revolution. Nation –states areterritorial
organizations characterized by the monopolization of legitimate violence (quastates)while nation –states
are membership associations with a collective identityandademocratic pretension to rule (qua nation)
(69)
.
The State and the Economic Interdependence

The rising momentum of global free-market capitalism in the final decadesof the20th century, the
accompanying rise in transnational enterprises, and theresultingdisparities between easy flows of money
and commodities across international boardersand the legal barriers and logistical hurdles that keep
most workers tied to their homecommunities are associated with globalization.
The belief that globalization imposes a forced choice upon states either toconform to free market
principles or run the risk of being left behind is termedintoaphrase called “Golden Straitjacket” by
Thomas Friedman, a neoliberalismjournalist andadvocate, to illustrate the forcing of states into policies
that suit the preferencesof investment houses and corporate executives (Electronic Herd) who swiftly
movemoneyand resources into countries favored as adaptable to the demands of international business
and withdraw even more rapidly from countries deemed uncompetitive(70a).
37
Further, countries are compared to individual stocks where the states andtheirgovernment are
rewarded and punished similar to buying and selling sharesof individual companies. States also have
lost an important element of economicsovereignty and that neo-liberalism is beyond contestation
(70b)
.
There are two things that will happen if a country is in Golden Straitjacket: theeconomy grows
and politics shrinks. It is a straitjacket because it narrows thepolitical and economic policy choices of
those in power to relatively tight parameters. Thisisthereason of the difficulty of finding any real
differences today between rulingandopposition parties in those countries that have put on the Golden
Staitjacket
(71)
.
Neoliberalism and Economic Sovereignty

Neoliberalism is the intensification of the influence and dominance of capital. It is the elevation of
capitalism as a mode of production into an ethic, a set of political imperatives, and a cultural logic. It is a
project to strengthen, restore, or, in somecases, constitute anew the power of economic elites. It values
market exchange as anethicinitself capable of acting as a guide to all human action and substituting for
all previousheld ethical beliefs. It emphasizes the significance of contractual relationsinthemarketplace. It
also holds that the social good will be maximized by maximizingthereach and frequency market
transactions, and it seeks to bring all human actionintodomain of the market
(72)
.
Economic sovereignty on the other hand is the power or national governmentsto make decisions
independently of those made by other governments(73). Globalizationas an increase in the international
integration of markets for goods, services, capital andlabor, is also a counterpoint of national sovereignty.
In a globalized world economy, governments have no alternative but to adopt neoliberal economic
policiesof privatization, deregulations, and reductions in public expenditures
(74a)
.
There are four different concepts of sovereignty. These include: International
Legal Sovereignty
It refers to the acceptance of a given state as a member of theinternational

community.
Westphalian Sovereignty
It is based on the principle that one sovereign state should not interfereinthe domestic
arrangements of another.
Interdependence Sovereignty
It is the capacity and willingness to control flows of people, goodsand

capital into and out of the country.
38
Domestic Sovereignty
It is the capacity of a state to choose and implement policies withintheterritory(74b)
Global economic trends are influenced by economic sovereignty of anindividual member. The
increase of the number of international organizations and the expansionof their functions have undeniably
restricted an individual country's sovereigntytocertain extent. The most typical example is the increasingly
extensive involvement of the world's three leading financial institutions the World Bank (WB), the
International Momentary Fund (IMF) and the World Trade Organization (WTO) in domestic
economicaffairs of their members. The 60,000-plus transnational corporations, which developedrapidly in
the latter half of the last century, are now sharing or "encroachingupon"individual country's "sovereignty"
in the economic domain
(75)
.
Many underdeveloped nations that resorted to foreign assistanceandinterventions resulted to the
deprivation of government as regard control of theireconomy due to the disorderly domestic economic
establishments. Due to this, somescholars predicted the loss of their economic sovereignty under this
formof neo-colonialism. More importantly, some of the world's leading economic entities, suchasthe
United States, the European Union and Japan, by taking advantageof theirpredominant economic status,
are affecting or infringing upon other countries' economicsovereignty. Under these circumstances, an
increasing number of scholarshaveconcluded that the economic dominion of individual nations has come
to an end. Whilecountries inevitably cede some control over their economic sovereignty toexternal actors,
it is the “structural power” of sovereign states which still dictates the termsandtenets of globalization
(76)
.
Economic and Political Integration (European Integration)
European integration is the process of industrial, political, legal, economic, social and cultural
integration of states wholly or partially in Europe. Europeanintegration has primarily come about through
the European Union and its policies(77).
European Union (EU), is an international organization comprising 28Europeancountries and

governing common economic, social, and security policies
(78)
. Intheearly
21st century EU expanded into central and eastern Europe with the following members: Austria, Belgium,
Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece,
Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta,
the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, andthe United
Kingdom.
39
Economic integration can be described as a process and a means by whichagroup of countries

strives to increase their level of welfare
(79)
. It is an arrangement
between different regions that often includes the reduction or eliminationof tradebarriers, and the
coordination of monetary and fiscal policies
(80)
. Reducingcostsfor
both consumers and producers and increasing trade between the countries involvedinthe agreement
are the aims of economic integration.
Seven Stages of Economic Integration
1. Preferential trading area (PTA)

2. Free trade area
3. Customs union
4. Common market
5. Economic union
6. Eonomic and monetary union
7. Complete economic integration
Preferential Trade Areas (PTAs) happens when there’s an agreement onreducing or eliminating
tariff (tax or duty to be paid on a particular class of importsorexports) barriers on selected goods
imported from other members of countrieswithinthe geographical region or areas. Agreement can either
be bilateral (betweentwocountries), or multi-lateral (several countries). Free Trade Areas (FTAs)
arecreatedwhen two or more countries in a region agree to reduce or eliminate barriers totradeonall
goods coming from other members. The North Atlantic FreeTradeAgreement (NAFTA) is an example of
such a free trade area, and includes theUSA, Canada, and Mexico
(81)
.
Free Trade Agreements (FTAs) or Preferential Trade Tgreements (PTAs)eliminate import tariffs
as well as import quotas between signatory countries. Theseagreements can be limited to a few sectors
or can encompass all aspectsof international trade. FTAs can also include formal mechanisms to
resolvetradedisputes. The North American Free Trade Agreement (NAFTA) is an exampleof suchan
arrangement
(82)
.
Removal of tariff barriers between members, together with the acceptanceof acommon or unified
external tariff against non-members is involved in theCustomUnion. Single payment or duty is made by
countries exporting to customs union. Goodsinside the union can move freely with no additional tariffs.
Members sharedtariff revenues while a small share is retained by the country that the collects theduty.
Removing internal barriers to trade and requiring participating nations to harmonizetheirexternal policy
as well as building a free trade area are put up by customs union.
One major step towards economic integration is Common Market (CM). All barriers to the mobility of
people, capital and other resources within the area inquestion, as well as eliminating non-tariff barriers to
trade, such as the regulatory treatment of
40
product standards are removed by CM aside from containing the provisionsof acustoms union. The
extension of free trade from just tangible goods, to includeall economic resources which means that all
barriers are eliminated to allowthefreemovement of goods, services, capital, and labor, including removal
of tariffsandreduced non-tariff barriers is the key feature of a common market.
The trading bloc that has both a common market between members, andacommon trade policy
towards non-members, although members are free topursueindependent macro-economic policies is
termed Economic Union. It requirescoordinated monetary and fiscal policies as well as labor market,
regional development, transportation and industrial policies. In economic union the use of a
commoncurrencyand a unified monetary policy is considered. The best example of Economic
unionistheEuropean Union (EU).
As a key stage towards complete integration, the Economic andMonetaryUnion (EMU) involves a single
economic market, a common trade policy, asinglecurrency and a common monetary policy. It represents
a major step in the integrationof EU economies. EMU involves the coordination of economic and fiscal
policies, acommon monetary policy and a common currency, the euro. EMU is a means toprovidestability
and for stronger, more sustainable and inclusive growth across the euroareaand the EU as a whole for
the sake of improving the lives of EU citizens
(83)
.
Complete Economic Integration is the final stage of economic integrationinwhich member states
completely forego independence of both monetary andfiscal policies. States that participate in complete
economic integration have no control of economic policy including economic trade rules. There is full
monetary unionwhereregulations regarding labor and capital are shared between member states
andthisincludes a single currency. There is also a complete harmonization of fiscal policywhichincludes
shared regulation of tax and benefit rates
(84)
. Involved in completeeconomic
integration are single economic market, a common trade policy, a single currency, acommon monetary
policy, together with a single fiscal policy, including commontaxandbenefit rates or the complete
harmonization of all policies, rates, and economictraderules.
Political integration refers to the integration of components withinpolitical systems; the

integration of political systems with economic, social, and other humansystems; and the political
processes by which social, economic, and political systemsbecome integrated
(85)
. Creating common policy frame work that createsequal conditions for the functions of the integrated
parts of the economy is the aimof policyintegration. Political integration is mainly based on welfare
increasing effectsof integrated policy making according to the Economics of European integration. It
bringseconomic benefits by leading the recovery of effectiveness in policy making.
41
Theories of European Integration
Neo-functionalism
This theory focuses on the supranational institutions of the EU of whichthemaindriving forces of

integration are interest group activity at the European andnational levels, political party activity, and the
role of governments and supranational institutions. The European integration is mostly seen as an upper
class- driven process- drivenbynational and international political and economic upper crusts.
It is a theory of regional integration, building on the work of Ernst B. Haas, anAmerican political
scientist and Leon Lindberg, also an American political scientist. JeanMonnet's approach to European
integration, which aimed at integrating individual sectors in hopes of achieving spill-over effects. The core
of neo-functionalismistheuseof the concept ‘spill –over’, situations when an initial decision by
governments toplaceacertain sector under the authority of central institutions creates pressures to
extendtheauthority of the institutions into neighboring areas of policy, such as currency exchangerates,
taxation, and wages. This core claim meant that European integrationisself-sustaining: ‘spill-over’ triggers
the economic and political dynamics drivingfurthercooperation(86).
Intergovernmentalism
This theory provides a conceptual explanation of the European integrationprocess. The main
concept of the Intergovernmentalism is emphasizing on theroleof national states in the European
integration; in another words it argues that "Europeanintegration is driven by the interest and actions of
nation states"
(87)
. This theorywas
suggested by Stanley Hoffmann.The theory proposed the Logic of Diversity, which'set limits to the
degree which the ‘spill-over’ process can limit the freedomof actionof thegovernments...the logic of
diversity implies that on vital issues, losses arenot compensated by gains on other issues' (88).
Liberal Intergovernmentalism
This a dominant political theory developed by Andrew Moravsik in1993toexplain European

integration. Application of rational institutionalismto thefieldof European integration is the aim of this
theory. Moravcsik stated that 'state-societyrelations--the relationship of state to the domestic and
transnational social context inwhich they are embedded--have a fundamental impact on state behavior
inworldpolitics and that the 'universal condition of world politics is globalization.' It is thewebof globalized
economic, social and political relationships that determines thelivingconditions of individual citizens,
corporations and civic groups and shapes what theywant and thus what their governments want”
(89)
. Liberal intergovermentalists statedthat
the bargaining power of member states is important in the pursuit of integration, andpackage deals
and side payments also occur in the process of making deals.
42
New Institutionalism
This theory emphasized the importance of institutions in the process of Europeanintegration.

Its three key strands are: rational choice, sociological and historical.
Multi-level Governance (MLG)
This is a new theory of European integration. Writers Liesbet HoogheandGaryMarks defined

MLG as dispersion of authority across multiple levels of political governance. They stated that over the
last fifty years, authority and sovereigntyhasmoved away from national governments in Europe, not just
to the supranational level with the EU, but also to subnational levels such as regional assemblies
andlocal authorities(90)
Transnational Activism in States
Transnational activism can be defined as the mobilization of collectiveclaimsby actors located in

more than one country and/or addressing more than onenational government and/or international
governmental organization or another international
(91)
actor . It is a social movements and other society organizations and individualsoperating across state
borders
(92)
. It also refers to the the coordinated international
campaigns on the part of networks of activists against international actors, other states, or international
institutions(93).
A social movement is a type of group action. It refers to the organizational structures and
strategies that may empower oppressed populations to mount effectivechallenges and resist the more
powerful and advantaged elites". They arelarge, sometimes informal, groupings of individuals or
organizations which focusonspecific political or social issues. They carry out, resist, or undo a social
change. Theyprovide a way of social change from the bottom within nations
(94)
. A social movement
is a collective challenges to elites, authorities, other groups or cultural codes bypeoplewith common
purposes and solidarity in sustained interactions with elites, opponentsand authorities
(95)
.
The global justice movement describes the loose collection of individualsandgroups often
referred to as a “movement of movements”, who advocate fair traderulesand are negative to current
institutions of global economics such as the WorldTradeOrganization(91). The movement is often labeled
the anti-globalization movement bythemainstream media. Those involved, frequently deny that they are
anti-globalization, insisting that they support the globalization of communication and people
andopposeonly the global expansion of corporate power
(96)
. Anti- capitalist and universalist
perspective on globalization in also indicated in the term differentiating the movement from those whose
politics are based on a defense of conservative onnational sovereignty as they identified opponents of
globalization.
43
The new transnational activism is as multifaceted as the internationalism. Although

globalization and global neo-liberalism are frames around whichmanyactivists mobilize, the protests and
organizations are not the product of aglobal imaginary but of domestically rooted activists who are the
connective tissueof theglobal and the local, working as activators, brokers and advocates for
claimsbothdomestic and international
(97)
.
Social Media and the State

Social media is a computer-based technology that facilitates the sharingof ideasand information
and the building of virtual networks and communities. By design, social media is internet based and
offers users easy electronic communication of personal information and other content, such as videos
and photos. Users engage withsocial media via computer, tablet or smartphone via web-based software
or web application, often utilizing it for messaging
(98)
. It “empowers” individuals to have a voice
(99)
.
Many social movements have increasingly seen social media as a meanstocollaboratively
crowdsource with diverse stakeholders
(100)
. In large organizations, social
media are often supported because the technology can help foster the senseof a“digital village”(101)
where individuals are able to “see” the lives of others withintheirorganization and feel closer to them (102).
Social media are used commercially asakeymode for product exposure and messaging
(103)
. Landscape of organizational
communication within social movements is shaped and often fundamentally influencedby social media.
Rippling effects which touch many different aspects of the movementsprocess from resource mobilization
to actual interventions is often createdbysocial media. Social movements can and do draw from
accumulated knowledge gleanedfromprevious movements and activities. Social media have changed the
ways in whichthisknowledge is being recorded and passed on
(104)
.
New forms of digital media are accompanied by globalization in bringingtolight the possibilities for
merging new kinds of communities via networks and creatingnewarenas for political interaction, identity
and belonging. The concept of networksocietyaffirms that citizens and civil society organizations can
increasingly use networkstogainpower relative states by generating alternative discourses that have the
potential tooverwhelm the disciplinary discursive capacity of the state as a necessary steptoneutralizing
its use of violence
(105)
. It is believed that states are making pragmatic
transformation by adapting to fit in among decisive global networks in finance, education, science,
technology, arts, culture and sports. New Media opens up potential for citizensto gain leverage. It is the
only power of global civil society acting on the public mindviathe media and communication networks that
may eventually overcome thehistorical inertia of nation states
(106)
.
44
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66. Weber, M. (1997). The Theory of Social and Economic Organization. New York: Free Press. 67. Bull, H. (1995). The
Anarchichal Society: A Study of Order and World Politics. 2nd Edition, NewYork: Columbia University Press.
68. (a,b,c,d,e) Anderson, B. (1991). Imagined Communities: Reflections on the Origin and Spreadof Nationalism. London:
Verso.
69. Joppke, C. (1998). Immigration Challenges the nation-state In: Joppke, C. (ed.) ChallengetotheNation-State
Immigration in Western Europe and The United States. Oxford University Press.
70. (a,b)Friedman, T. (2000). The Lexus and the Olive Tree. 2

nd
edn, New York: Farrar, Strausand
Giroux
71. Beder, Sharon. (2017). Golden Straitjacket. Retrieved from: http:// www. herinst. Org/
BusinessManagedDemocracy/government/international/straitjacket.html.
72. Harvey, David (2005). A Brief History of Neoliberalism. Oxford University Press, 2005. 73. Lse.co.uk Website.
Economic Sovereignty Definition. Retrieved from: http:// www. lse. co. uk/financeglossary. Asp? Search
Term==economic & iArticleID=2196 &definition= economic -sovereignty
74.(a, b) Quiggin, John. (2001). Symposium in Globalization, Globalization and Economic Sovereignty. The Journal of
Political Philosophy: Vol 9, Number1
75. Pang, Zhongying. (2005). Globalization vs Economic Sovereignty. Retrieved From: https://yaleglobal.yale.edu/
content/globalization-vs-economic-sovereignty
76. European Integration. Retrieved from: https://en.wikipedia.org/wiki/European_integration 77.

https://www.britannica.com/topic/European-Union
78. Fiess, Norbert and Fugazza, Marco. (2002). European Integration: A Review of the LiteratureandLessons for NAFTA.
Retrieved from: http://web.worldbank.org/archive/website00955A/WEB/PDF/FIESS_FU.PDF
79. Economic Integration Retrieved from https:// www. Investopedia. Com/ terms/ e/economic integration.
Asp#ixzz5LmqfRI9Q
80.Economicsonline.co.uk Website.2018. http://www.economicsonline. co.uk/Global_ economics/

Economic_integration.html
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81. Holden, M. (2003). Stages of Economic Integration: From Autarky to Economic Union Retrievedfrom:
http://publications.gc.ca/Collection-R/LoPBdP/inbrief/prb0249- e.htm#customs 82.Ec.europa.eu Website. Economic and
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83. Coursehero.com Website. Complete Economic Integration. 2018. https://www. coursehero. com/file/
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84. Teune, Henry. Political Integration. International Encyclopedia of Political Science. Retrievedfrom: http: // sk.
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47
Duration:9 hours


globalization

The Contemporary Global Governance
Global governance or world governance is a product of neo-liberal paradigmshifts

in international political and economic relations
(107)
. It is a movement towards
political integration of transnational actors aimed at negotiating responses toproblemsthat affect more
than one state or region. It tends to involve institutionalization. Theseinstitutions of global governance –
the United Nations, the International Criminal Court, the World Bank, etc. – tend to have limited or
demarcated power to enforce compliance(108).
Global governance is a tool to identify solutions to problems createdbyneo liberal globalization. Its
concept relates to the interaction of myriad collectiveorindividual entities emanating from various societal
and professional orientations,
48
which form networks that engage to address issues that threaten local andglobal communities. It is
concerned with issues that have become too complex for asinglestate to address alone. Humanitarian
crises, military conflicts between andwithinstates, climate change and economic volatility pose serious
threats to humansecurityin all societies; therefore, a variety of actors and expertise is necessary
toproperlyframe threats, devise pertinent policy, implement effectively and evaluateresultsaccurately to
alleviate such threats
(109)
.
Global governance can be thus understood as the sum of laws, norms, policies, and institutions
that define, constitute, and mediate trans-border relations betweenstates, cultures, citizens,
intergovernmental and nongovernmental organizations, andthe market. It embraces the totality of
institutions, policies, rules practices, norms, procedures, and initiatives by which states and citizens try to
bring more predictability, stability, and order to their responses to transnational challenges-such as
climatechange and environmental degradation, nuclear proliferation, and terrorismwhichgobeyond the
capacity of a single state to solve
(110)
.
Global governance is viewed as the sum of governance processes operatinginthe absence of
world government. Both the international organizations (lOs) andtheUnited Nations (UN) being the only
universal membership and general-purposeinternational organization, are essential to the understanding
of contemporaryglobal governance(111). The two types of International Organizations are those with
universal membership and those with limited membership. Examples of IOs withuniversal membership
include: UN, Bretton Woods institutions and World Trade Organization(WTO). Limited membership
includes European Union (EU) and the NorthAtlanticTreaty Organization (NATO).
The Roles and Functions of the United Nations

As an intergovernmental organization, the United Nation is tasked topromoteinternational co-
operation and to create and maintain international order. It is thelargest, most familiar, most
internationally represented and most powerful intergovernmental organization in the world
(112)
.
The United Nations (UN) in the world of politics has the roles of preventingandmanaging conflicts,
regulating armaments, championing human rights and international humanitarian law, liberating the
colonized, providing economic and technical aidinnewly liberated countries, organizing elections,
empowering women, educatingchildren, feeding the hungry, sheltering the disposed and displaced,
housing the refugees, tending the sick and coordinating disaster relief and assistance. In policy
motivation, peacekeeping is the most important feature of UN activity in peace and security.
The UN aims to save succeeding generations from the scourge of war; toreaffirm faith in
fundamental human rights; to establish conditions under whichjusticeand respect for the obligations
arising from treaties and other sources of international law can be maintained; and to promote social
progress and better standards of lifeinlarger freedom (113).
49
Four Main Purposes of the UN Charter

(114)
- a written grant by acountry's
legislative or sovereign power, by which an institution such as a company, college, orcity is created
and its rights and privileges defined.
1. Maintaining worldwide peace and security

2. Developing relations among nations
3. Fostering cooperation between nations in order to solve economic, social, cultural, or humanitarian
international problems
4. Providing a forum for bringing countries together to meet the UN's purposesandgoals
There were five stages or main gaps meet by UN in the 21

st
century. Theseare
knowledge, norms, policy, institutions and compliance. A critical hole in any of thefivestages can cause
efforts at problem solving to collapse.
Challenges of Global Governance in the Twenty-first Century

Global governance can be understood as the sum of laws, norms, policies, andinstitutions that
define, constitute, and mediate trans-border relations betweenstates, cultures, citizens, intergovernmental
and nongovernmental organizations, andthemarket. It is a process which allows interconnectivity across
different bordersandsovereign territories. Global governance is governing, without sovereign authority,
relationships that transcend national frontiers. Global governance has evolvedasoneof the most
influencing tools for globalization which has led to the foundationof sustainable development projects
around the globe.
(115)
.
Issues that involve interwoven domestic and foreign challenges includethreatsat the beginning of
the century which include ethnic conflicts, infectious diseases, andterrorism as well as a new generation
of global challenges including climatechange, energy security, food and water scarcity, international
migration flows andnewtechnologies. The multiple links among climate change and resources issues,
theeconomic crisis, and state fragility – ‘hubs’ of risks for the future – illustratetheinterconnected nature
of the challenges on the international agenda today. Domesticpolitics creates tight constraints on
international cooperation and reduces thescopeforcompromise. Diverse perspectives on and suspicions
about global governance, whichisseen as a Western concept, add to the difficulties of effectively
mastering thegrowingnumber of challenges(116).
The new governance challenges in the 21
st
century being related to globalization
entail multiple trajectories of change within states, among actors inside andoutsidenation states, as well
as new forms of resource mobilization and risk allocation. Withinstates the first trajectory or path is the
depoliticization which can be observedintheform of delegating decisions to independent regulators and
experts, central banks, orjudiciaries. A second trajectory is the rescaling of economic and social
relationswell beyond the territorial boundaries of nation states, facilitated by transnational legal
50
arrangements that have their roots in national law. Law is also a critical ingredient fortransforming
real assets into commodities and ultimately financial assets, that is, thethird path which is the
capitalization of assets
(117)
. Different effects are expectedon
different constituencies within and across domestic polities (an organized society; astate as a political
entity). Direct participation or inclusion in these processesarebenefitted by some though others face
exclusion. Considered important for effectivegovernance include recognition of these paths or trajectories
and their potentiallydestabilizing effects for polities.
The Role of the Nation -State in Globalization
Basic Elements of a State

1. Territory
2. People
3. Sovereign Power
Nation- state role in globalization is complex. Since nation-states are dividedbyphysical and
economic boundaries, reduced barriers in international commerceandcommunication are considered their
potential threat. Sovereignty of individual nationsisnot abolished by expanded trade among countries,
instead globalization is aforcethat changed the way nation-states deal with one another, particularly in
theareaof international commerce(118a).
Globalization has potential effects to globalization. These includefavoringWesternization which

means that other nation-states are at a disadvantagewhendealing with the Americas and Europe, most
especially in the agricultural industry, inwhich second- and third-world nations face competition from
Western companies(118b) and another is that nation-states are forced to examine their economic
policiesinlight of the many challenges and opportunities that multinational corporations andotherentities
of international commerce present.
Nation-states are challenged by multinational corporations to address theissueof foreign direct

investments to force nation-states to ascertain the allowableinternational influence in their economies. A
sense of interdependence is createdbyglobalization among nations to create among nations of differing
economic strengthsanimbalance of power.
The role of the nation-state in a global world is largely a regulatory oneasthechief factor in global
interdependence(118c). In setting international commercepolicies, isolated states are forced to engage to
one another, while nation-state’s domesticroleis
51
unchanged. Roles of some states were diminished while others have exaltedrolesdueto
interactions of various economic imbalances.
Globalization’s Impact on the State
Factors which lead to the increase and acceleration of movement of people, information,
commodities and capital.
1. Lifting of trade barriers
2. Liberalization of world capital markets
3. Swift technological progress (information technology,
transportationandcommunication)
Problems afflicting the world today which are increasingly transnational innature those
that cannot be solved at the national level or State to State negotiations.
1. Poverty
2. Environmental pollution
3. Economic crisis
4. Organized crime and terrorism
Effects of greater economic and social interdependence to national decision-making

processes.
1. It calls for a transfer of decisions to the international level

2. It requires many decisions to be transferred to local levels of government dueto an
increase in the demand for participation.
Decision making processes in globalization is complex as it takes placeinvarious levels such as

sub-national, national, and global which lead to the growthof amulti-layered system of governance. The
following are guaranteed by nation-State: internal and external security, law established, national welfare
systems funding, structures provided for popular representation, public accountability instituted, and
framework for economic and social activities built.
In a world of expanded globalization, the need to supply collective publicgoods, to manage

externalities and to provide for minority needs persist
(119)
. The Statepersists
because its need grows and because of its undiminished local resource poolsandsocioeconomic
problems on which States are based. The State remains the keyactor inthe domestic as well as
international arenas and that States which are effectiveareessential for both tasks, and their capacity for
both needs strengthening
(120)
.
52
The following can be guaranteed only by the States through independent courts:
1. Respect of human rights and justice

2. Promote the national welfare
3. Protect the general interest
The State has the roles in operating the intricate web of multi-lateral arrangements and inter-
governmental regimes, enter into agreements with other States, make policies which shape national and
global activities, agenda of integrationbyclearly pronouncing the problem of capacity inadequacy of
individual States.Thisindicates political leverage of some States in shaping the international
agendawhiledeveloping countries have less active roles.
Though State is required by globalization to imrove its capacity to deal withgreater openness, it
must remain central to the well-being of its citizens andtotheproper management of social and economic
development. It should also be responsiblefor adopting policies, which are conducive to greater economic
integration not forgettingthat further global integration can be reversed by state policies inimical to
openness, asoccurred between the two World Wars which means that globalization does not reducethe
role of the nation-State, but redefines it given the pressures and responsesit must give at the local,
national and international levels
(121)
.
53
References:
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word press. com/ 2015/07/31/ global-governance-the-strategy-of- governance-social-welfare-and-exclusion/ July 31,
2015
109. Bierman F. and Pattberg P. (2008) Global environmental governance: Taking stock, moving. Annual Review of
Environment and Resources.
110. Weiss, Thomas G. (2009) What happened to the Idea of World Government? International StudiesQuarterly
53(2):253-271
111. Weiss T.G., Kamran A.Z. (2009) Global Governance as International Organization. In: WhitmanJ. (eds) Palgrave
Advances in Global Governance. Palgrave Advances. Palgrave Macmillan, London
112. Fomerand, J., Lynch, C.M., and Mingst, K. (2018). https://www.britannica.com/topic/United-Nations103. Enotes.com
Website (2018). What is the Function of the United Nation. Retrievedfrom: https://www.enotes.com/homework-help/what-
function-un-who-ruler-349667
114. Stephenson, Andrea. (2018). What is the United Nations? -Definition, History, Members &Purpose. Retrieved from:
https://study.com/academy/lesson/what-is-the-united-nations-definition-history- members-purpose.html
115. Kumar, Kundan Jha. (2018). Global Governance in the 21 st Century. Retrievedfrom:
http://english.lokaantar.com/articles/global-governance-21st-century/
116. Pramod, Mishra. (2013). Emerging Challenges to Global Governance in 21st Century. AcademicJournal of
Interdisciplinary Studies. MCSER Publishing, Rome-Italy Vol 2 No 8.
117. Pistor, Katharina and Adaman Fikret. (2014).Governance Challenges in the 21 st Century. Retrieved
from: https://globalcenters.columbia.edu/events/governance-challenges-21st-century
118 (a, b, c). Hall, Mary (2018). What is the Role of the nation-state in globalization. Retrievedfrom: https://www.
investopedia. com /ask/answer/022415/
54
119. Jones, Barry R.J. (2000) The World turned upside down? Globalization and the future of thestate, p.268, St. Martin’s
Press, New York.
120. United Nations (2000). Millennium Report of the Secretary-General. “We, the Peoples: The Roleof the United Nations in
the 21st Century" A/54/2000. 25
121. Bertucci, G. And Alberti, A. Globalization and the Role of the State: Challenges and Perspectives. Retrieved from: https: //
pdfs. semantic scholar. org/9edd/ 97224 bb298453e6 ff5 c08afc 56dd9e6064e. pdf.
55
Unit Test:
D. Identification. Answer the following item by supplying the correct answer onthe blank.
Market integration
Foreign Direct Investment (FDI)
Economic integration
Global corporation
General Agreement on Trade Economic sovereignty
Transnational activism
in Services (GATS) Neoliberalism
Social media
Global governance
Financial Market Integration
Economic Union
Complete Economic Integration
Neo-functionalism
United Nation
__________1. It is a major driver of extended global corporate development.
__________2.This is the power of national governments to make decisionsindependently of those made

by other governments
__________3. This is a product of neo-liberal paradigm shifts in international political and economic
relations. It is a movement towards political integrationof transnational actors aimed at
negotiating responses to problemsthat affect more than one state or region.
__________4. This is a computer-based technology that facilitates the sharingof ideasand
information and the building of virtual networks and communities.
__________5. This provides a framework of rules governing services trade, establishesa mechanism for
countries to make commitments to liberalizetradeinservices and provides a mechanism
for resolving disputes betweencountries.
__________6. It is an arrangement between different regions that often includesthereduction or
elimination of trade barriers, and the coordinationof monetary and fiscal policies.
__________7. It is an open market economy between countries facilitated by acommoncurrency and
the elimination of technical, regulatory and tax differencesto encourage free flow of capital and
investment across borders.
56
__________8. This can be defined as the mobilization of collective claims byactorslocated in more than
one country and/or addressing more thanonenational government and/or international governmental
organizationor
another international actor.
__________9. This is a business that operates in two or more countries.
__________10. This exists when there are exerted effects that prompt similar changesor shifts in other
markets that focus on related goods on events occurringwithin two or more markets.
__________11. This is the final stage of economic integration in which member statescompletely
forego independence of both monetary and fiscal policies.
__________12. This focuses on the supranational institutions of the EuropeanUnionof which the main
driving forces of integration are interest groupactivityat the European and national levels,
political party activity, and theroleof governments and supranational institutions.
__________13. This is the intensification of the influence and dominance of capital. It isthe elevation of
capitalism as a mode of production into an ethic, aset of political imperatives, and a cultural logic.
__________14. This is tasked to promote international co-operation and to createandmaintain
international order. It is the largest, most familiar, most internationally represented and
most powerful intergovernmental organization in the world.
__________15. It requires coordinated monetary and fiscal policies as well aslabormarket, regional
development, transportation and industrial policies.
E. True or False. Identify whether the statement is correct or not. Write Trueif it iscorrect, False if
not. Underline the what makes the statement incorrect, thenprovide the corrections. (2 points
each)
__________1. There are two things that will happen if a country is in Golden Straitjacket: the politics
grows and the economy shrinks.
__________2. Foreign direct investment is made open to economies; frequentlyinvolves more than just
a capital investment and includes provisionof management or technology as well.
57
__________3. In a globalized world economy, governments are independently decidingon case of

adopting neoliberal economic policies of privatization, deregulations, and reductions in public
expenditures.
__________4. When government implement certain strategy to control the directionof economy then
integration is intentional while shifting in supplyanddemand that has a spillover effect on
several markets is another factor of market integration.
__________5. Westphalian Sovereignty refers to the capacity of a state to chooseandimplement
policies within the territory.
__________6. The increase of the number of international organizations andtheexpansion of their
functions helps enable an individual country's
sovereignty to certain extent.
__________7. Combination of invention and social organization resulting to increaseinworldwide capital
and wealth of nation is allowed by modern nationstatesystem that emerged in the period prior to the end
of World War II.
__________8. Augmenting costs for both consumers and producers and reducingtradebetween the
countries involved in the agreement are theaimsof economic integration.
__________9. Free Trade Areas (FTAs) are created when two or more countriesinaregion agree to
strictly implement restriction barriers to trade onall goodscoming from other members.
__________10. Creating unique policy frame work that creates strict individual stateconditions for
the functions of the integrated parts of the economyistheaim of policy integration.
__________11. The global justice movement describes the strengthened collectionof individuals and
groups often referred to as a “movement of movements”, who advocate fair trade rules and
are positively in agreement tocurrent institutions of global economics such as the World
Trade Organization.
__________12. Getting smarter on valuing investment opportunities Chief Financial Officers can add
value.
__________13. Landscape of organizational communication within social

movementsissecured and independent to the influences of the social media.
__________14. To prevent stance on politics, peacekeeping is kept to betheleast important feature of
UN activity in peace and security.
58
__________15. The belief that globalization imposes a forced choice upon stateseitherto conform to
free market principles or run the risk of being left behindistermed into a phrase called “Golden
Straitjacket”.
F. Essay. Answer the following questions. (5 points each)
1. Explain the difference between Economic Globalization from Internationalization, anddoes a

country/state exercise and play the advantage of both.
2. How could a country like the Philippines benefit in the concept of globalizationspecifically
in the aspect of market integration?
3. How do social media function in a globalized state?Cite specific examples. 4. What are
the challenges of Global Governance in the Twenty-first Century?
59
UNIT III THE WORLD OF REGIONS
Coverage: Weeks 6, 7 and 8
Duration: 9 hours
Global Divides: The North and the South (4.5 hours; week 6 and 7) Asian Regionalism (4.5
hours; week 7 and 8)
∙ define the term Global South

∙ differentiate the Global South from the Third World
∙ Differentiate regionalization from globalization
∙ Identify the factors leading to a greater integration of the Asian Region
1. Global Divides: The North and the South (focus: Latin America) 2. Asian
Regionalism
Global Divides: The North and the South (focus: Latin America)
Global South refers to the regions of Latin America, Asia, Africa, andOceaniamostly low- income and
often politically or culturally marginalized. It may alsobecalledthe "developing World" such as Africa,
Latin America, and the developing countriesinAsia, "developing countries," "less developed countries,"
and "less developedregions”(122) including poorer "southern" regions of wealthy "northern" countries
(123)
.
In general, Global South refers to these countries' "interconnectedhistoriesof colonialism, neo-
imperialism, and differential economic and social changethroughwhich large inequalities in living
standards, life expectancy, and access to resourcesaremaintained(124). Contemporary critics of neo-
liberal globalization use the global southasa banner to rally countries victimized by the violent
economic cures of institutionslikethe International Monetary Fund.
60
Three Primary Concepts of Global South

1. It refers to economically disadvantaged nation-states and as a post-coldwaralternative to “Third
World”.
Third World" is a phrase frequently used to describe a developing nation. Thephrase "Third World"
arose during the Cold War to identify countries whoseviewsdidnot align with NATO and capitalism or the
Soviet Union and communism. TheFirst World described countries whose views aligned with NATO and
capitalism, andtheSecond World referred to countries that supported communism and the Soviet
Union(125a) .
Third World countries are largely characterized as poor and underdeveloped. Inthese countries, low
levels of education, poor infrastructure, improper sanitationandpoor access to health care mean living
conditions are seen as inferior to thoseintheworld's more developed nations. As a result, the terms Third
World countryanddeveloping nation have become increasingly interchangeable in recent decades
(126b)
.
2. The Global South captures a deterritorialized geography of capitalism’s externalitiesand means to

account for subjugated peoples within the borders of wealthiercountries, such that there are
economic Souths in the geographic North andNorthsin the geographic South.
3. It refers to the resistant imaginary of a transnational political subject that resultsfrom a shared
experience of subjugation under contemporary global capitalism.
The global South is not a directional designation or a point due south fromafixednorth. It is a
symbolic designation meant to capture the semblance of cohesionthat emerged when former colonial
entities engaged in political projects of decolonizationand moved toward the realization of a post-
colonial international order
(126)
.
The process of globalization places into question geographically boundconceptions of poverty and
inequality. The increase and intensification of global flowsspread both poverty and affluence. Spaces of
underdevelopment in developedcountriesmay mirror the poverty of the global south, and spaces of
affluence mirror thoseof theglobal north
(127)
.
The strongest vehicle for social redistribution and the main mechanismfor social transfer is the
state. The redistributative function of the state becomes crucial inthecontext of economic globalization
where the goal of neo-liberal economistsandinstitutions is precisely to dismantle local state oversight
(128)
.
61
The development of the global south must begin by drawing most of thecountry’sfinancial
resources for development from within rather than becoming dependent onforeign investments and
foreign financial markets
(129)
.
The global south is not relevant for those who live in countries traditionallyassociated with it but
also signifies that the south continues to be globalized. It alsorepresents emergent forms of progressive
cosmopolitanism. It is an always emergent and provisional internationalism.
New Internationalism in the Global South

The ills of the global south are being globalized. Underdeveloped statesof theglobal south are
ravaged by merciless IMF policies in the 1980’s. The economicprescriptions of the IMF as cures are
recommended for countries in the global south. Other countries like Greece realize the similarity of
problems in the global souththat inspirations were drawn from poorer nations. The global south has
providedmodel of resistance for the world like Gandhi’s non-violence that initially directed at colonial
authority in India is now part of global protest culture, as well as benefits of critiquesof international
financial institutions from the experiences and writings of intellectualsandactivists from the global south.
A similar globalization of the south’s concern is arising fromthe issueabout global environment. Amidst
the existential threat of climate change the most radical notions of climate justice are being articulated in
the global south. As global problemsincrease, it is necessary for people in the north to support people
fromthe south.
As a symbol and metaphor, global south is not only relevant for those wholiveincountries
traditionally associated with it. The global in global south does not onlymeanthat the south is the globe
but also signifies that the south continues to be globalized. The global south while embedded in specific
geographic imaginaries, representsemergent forms of progressive cosmopolitanism. It is always
emergent and provisional internationalism.
62
Asian Regionalism
Regionalism refers to the decentralization of political powers or competenciesfrom a higher
towards a lower political level. More specifically, it distinguishes betweentop-down from bottom up
regionalism where top - down regionalismdescribesthedecentralization of competencies or the
establishment of regional institutionsbythestate while bottom -up includes all patterns of endeavors
towardpolitical decentralization from within the particular region
(130)
.
Globalization is the intensification of economic, political, social, andcultural relations across
borders and a consciousness of that intensification, with a concomitant diminution in the significance of
territorial boundaries(131).
Views of Globalization in the Asia Pacific and South Asia

Globalization is an external phenomenon being pushed into the regionbyworldpowers particularly
the United States and Europe. From this perspective, globalizationcan be understood as a process that
transforms the Asia Pacific and South Asia. It isaforce for good bringing economic development, political
progress, and social andcultural diversity to the region.
The Asia Pacific and South Asia refer together to the regions of East (orNortheast) Asia, South Asia,
the Pacific Islands, and South Asia. It includes someof theworld’s most economically developed states
such as Japan, South Korea, Singapore, and Taiwan, and highly impoverished countries such as
Cambodia, Laos, andNepal. It also includes the largest and most populous states on the globe including
ChinaandIndia and some of the world’s smallest such as the Maldives and Bhutan
(132)
.
The Asia and South Pacific has emerged over the past decade as a newpolitical force in the world.
The economies of Japan, Korea, Indonesia, VietnamandPakistanhave strategic relevance in today’s
global system. They are the focusedof global powers outside of the region. A foreign policy shift called
“Pacific Pivot” wasimplemented by the United States to commit more resources and attention to
theregion. This shift which is also called “Atlantic Century” was termed “Pacific Century” byUSSecretary of
States Hilary Clinton. He stated that the Asia Pacific has becomeakeydriver of global politics. It is the
home to several key allies and important emergingpowers like China, India, and Indonesia.
Globalization in the Asia Pacific and South Asia is an external phenomenonbeing pushed into the
region by world powers like US and Europe. Globalizationinthiscontext is a process that transforms the
Asia Pacific and South Asia. It can beviewedas a force for good, bringing economic development, political
progress, and social andcultural diversity.
63
Asia Pacific and South Asia’s Impact on Globalization

Asia was the central global force in the early modern world economy. It wasthesite of the most
important trade routes and in some places more advancedintechnology than West such as science and
medicine. Colonies in the Asia pacificandSouth Asia influenced the West and vice versa. They were
often “laboratoriesof modernity” (133). Colonialism was not simply a practice of Western Dominationbut
aproduct of what one thinks of as Western and modern.
1. Japan embarked on procuring raw materials like coal and iron at unprecedentedeconomies of scale allowing them to
gain a competitive edge in the global manufacturing market as well as globalized shipping and procurement patterns
which other countries modeled
(134)
.
2. China pursues similar pattern of development at present and is now the world’s largest importers of basic raw
materials such as iron and surpassed Japan, the US and Europe in steel production. It also surpassed the World bank in
lending to developing countries. It hadanenormous impact on the availability and consumption of goods around the world
(135
). This simple
scale of China’s development is shaping and furthering globalization.
3. India opened -up and emphasized an export-oriented strategy. Textiles and other lowwage sectors have
been a key part of the economy with highly successful software development exports. It also plays a key role in global
service provisions as trends in outsourcing andoff- shoring increase
(136)
.
4. India and China have also become a major source of international migrant labor, whichis also one of the
fundamental characteristics of the era of globalization. This includes themigration of highly skilled labor into the high-
tech industry based in Silicon Valley. India, Chinaand the Philippines were three of the top four recipient states of
migrant remittances.
5. The trend of the rising regional free arrangements in the Asia Pacific and South Asia. This kind of regionalism
would mean as bulwark to globalization or as compatible and evenpushing forward the process of global economic
integration. Regionalism can promote learning, assuage domestic audiences to the benefits of free trade, and form the
institutional framework toscale up from regional cooperation o global cooperation
(137)
. Regionalism can act as springboard
for globalization.
One distinguishing feature of regional institutions in Asia Pacific and South Asia is theadoption of “Open
Regionalism” which aims to develop and maintain cooperation with outsideactors. This is meant to resolve the tension
between the rise of regional trade agreements andthe push for global trade as embodied by World Trade Organization
(WTO)
(138
), the only global
(139)
international organization dealing with the rules of trade between nations .
“Open” refers to the principle of non-discrimination, more specifically an openness inmembership and openness
in terms of economic flows
(140)
. Open regionalism is embodiedby
Asia Pacific Economic cooperation or APEC.
6. In culture and globalization in the region, the source of a wide variety of cultural phenomena that have
spread outward to the West and the rest of the world is the region. Examples include “hello Kitty” created in Japan
including Anime, Pokemon, Power Rangerswhich become regional and global phenomenon; the regional and global
rise of Korean popular culture called ‘K-Wave” comprising of Korean dramas, music (K-pop) and the smashhit
“Gangnam Style” of Korean pop star PSY.
Asia Pacific and South Asia are on the receiving end of globalization. The region servesas the source of many
aspects of globalization process which can be seen in history, economy, political structure and culture.
64
The Region-Making in Southeast Asia and Middle-Class Formation: The Third Wave
Regionalization entails complex and dynamic interactions between andamonggovernmental and
nongovernmental actors which resulted to hybrid East Asia. Themain engines of hybridization are
explained by the successive waves of regional economic development that is powered by developmental
states and national andtransnational capitalism that nurtured sizeable middle-classes that sharealot
incommon in terms of professional lives and their lifestyles, in fashion, leisure, andentertainment, in their
aspirations and dreams. The middle-class occupies different positions in their respective societies as
well as in relation to their nation-statesastheyconstitute the expanding regional consumer market
(141)
.
The product of regional economic development in the post war era are themiddleclasses in east
Asia. Regional economic development took place within the context of the American informal empire in
“Free Asia”, with the US-led regional securitysystemand the triangular trade system as its two major
pillars. Furthermore, the national statesin the region promoted it actively under democratic or authoritarian
developmentalist regimes, both of which espoused the politics of productivity, a politics of that
transformed political issues into problems of output and sought to neutralizeclassconflict in favor of a
consensus on economic growth
(142)
.
The first wave of regional economic development took place in japanfrommid-1950’s to the early
1970s and led to the emergence of a middle-class by theearly1970s. The second wave took place
between the 1960s and 1980s in SouthKorea, Taiwan, Hongkong and Singapore and led to the
formation of middle -class societiesinthese countries by the 1980s.
Two salient points in the history of east Asian middle-class formation.

1. Middle class formation in Southeast Asia was driven by global andregional transnational
capitalism working in alliance with national states while middleclassinJapan, South Korea, and Taiwan
were created by developmental states andnational capitalism.
2. New urban middle classes in East Asia, whether in Japan, SouthKorea, Taiwan, or Southeast
Asia, with their middle-class jobs, education, and income, haveinturn created their own new lifestyles
commensurate with their middle-class incomeandstatus.
Middle Classes in The Philippines

New urban middle classes emerged in the post 1986 Philippines. Theywerecreated through growth in
retail trade, manufacture, banking, real estate development, and an expanding range of specialist
services such as accounting, advertising, computing, and market research. Fostered by government
policies of liberalizationand
65
deregulation, the development of these new enterprises has been oriented bothtowardthe export and
domestic markets and has entailed increasingly diverse sourcesof foreign investment and variable
subcontracting, franchise, and service relationships,
with a noticeable expansion of ties connecting the Philippines to other countriesinEast and
Southeast Asia.
Regional Implications of Middle -Class Formation in East Asia

Complex historical forces shaped new urban middle classes. They are product of regional
economic development, which has taken place in waves under theU.S. informal empire over a half
century, first in Japan, then in South Korea, Taiwan, Hongkong, and Singapore, Thailand, Malaysia,
Indonesia and Philippines, andnowinChina. They are product as well for development states. Their
lifestyles havebeenshaped in very complex ways by their appropriation of things American, Japanese,
Chinese, South Korean, Islamic and other ways of life, often mediated by the market.
The political consequences of the rise of East Asia middle classes vary. Thecultural and political
hegemony of the South Korean middle classes is embodiedbysingle generation, while that of the
Taiwanese middle classes manifest itself inthepolitical assertiveness of an ethnic majority. Southeast
Asian middle classesalsoexemplify the diversity and complexity of class formation. Thai middle
classesarecoherent socially, hegemonic culturally, and ascend politically; their counterpartsinMalaysia
and Indonesia are socially divided, dependent on the state, politically assertiveand vulnerable; and the
Philippine middle classes are socially coherent, less dependent on the state, culturally ascendant, but
politically vacillating.
66
References:
Global Divides: The North and the South (focus: Latin America)
122. Mitlin, D., Satterthwaite, D. (2013). Urban Poverty in the Global South: Scale and nature. Routledge. ISBN
9780415624664.
123. Braveboy-Wagner, J.A. (2003). The foreign Policies of the Global South: Rethinking Conceptual Frameworks.
Lynne Rienner Publishers.ISBN 9781588261755.
124. Dados, N. And Connell, R. 2012. The Global South. Contexts, Vol.11, No.1.ISSN1536-5042. American Sociological
Association. Retrieved from: http:// contexts.sagepub. comDOI 10.1177/ 15365042124 36479.
125.(a,b) Investopedia.com Website. Third World. Retrieved from: www. investopedia. com. / terms /third- world. Asp#
ixzz5TbHF Kexe
126. Grovogui,S. (2011). A Revolution Nonetheless: The Global South in International Relations. TheGlobal South
591:175-190.
127. Claudio, Lisandro. Locating the Global South. The Sage Handbook of Globalization. Vol. I. 128. Hobsbawm, E.J.
(1996). The Future of the state: development and Change. 27(2) : 267-268. 129. Bello, W.F. (2006). Deglobalization. Ideas
for a New World Economy. Philippine edn. QuezonCity; Ateneo De manila University Press.
REFERENCES
Asian Regionalism
130. Michael Keating, (1995). "Europeanism and Regionalism", in Barry Jones and Michael Keating(eds.), The
European Union and the Regions. Oxford.
131. Bretherton, Charlotte. (1996). “Introduction: Global Politics in the 1990s” in Charlotte BrethertonandGeoffrey
Ponton, eds., Global Politics: An Introduction (Cambridge, MA: Blackwell), 1–19.
132. Kimura, E. Globalization and the Asia Pacific and South Asia. The Sage Handbook of Globalization. Vol 1.
133. Stoler, Al (ed).(2006). Haunted by Empire geographies of Intimacy in North American History, Durham: Duke University
Press Books.
134. Bunker, S.G. (2007). East Asia and the Global Economy: Japan’s Assent with ImplicationstoChina’s Future. John
Hopkin’s studies in Globalization. Baltimore. John Hopkin’s UniversityPress.
135. Nolan, P. 2004. Transforming China: Globalization, Transition and Development. London, AnthemPress.
67
136. Dossani and Kenny. (2007). The Next wave of Globalization: Relocating Service Provision toIndiaWorld Development.
137. Lee, J.W. and Park, I. (2005). Free Trade Areas in East Asia: Discriminatory or Non-Discriminatory?The
World Economy.
138. Bergsten, C.F. 1997. Open Regionalism. The World Economy.

139.What is the WTO? Retrieved from: https:// www.wto. org/english / the wto_e/ what is_e/ whatis_e.htm
140. Sutton, M. (2007). Open Regionalism and the Asia Pacific: Implications for the Rise of theEast Asian Economic
Community. Ritsumeikan International Affairs.
141. Shiraishi, Takashi, (2006). “The Third Wave: Southeast Asia and the Middle-Class FormationintheMaking of a
Region. Ed. Peter Katzenstein and Takashi Shiraishi. Ithaca, NY: Cornell UniversityPress.
142. Maier, C. S. (1978). The politics of productivity: Foundations of American international economicpolicy after world war
II. In P. J. Katzenstein (Ed.), Between power and plenty: Foreigneconomic policies of advanced industrial states. Madison:
University of Wisconsin Press.
68
UNIT III A WORLD OF REGIONS
Unit Test:
G. Identification. Answer the following item by supplying the correct answer onthe blank.
__________1.This describes the decentralization of competencies or the establishment of regional
institutions by the state.
__________2.They are largely characterized as poor and underdeveloped. Inthesecountries, low
levels of education, poor infrastructure, improper sanitationand poor access to health care mean living
conditions areseenas inferior to those in the world's more developed nations.
__________3.This is the term for colonies in the Asia pacific and South Asia influencedthe West and vice
versa.
__________4.It includes some of the world’s most economically developed statessuchas Japan, South
Korea, Singapore, and Taiwan, and highly impoverishedcountries such as Cambodia, Laos, and Nepal.
__________5.This aims to develop and maintain cooperation with outside actors. Thisis meant to
resolve the tension between the rise of regional tradeagreements and the push for global
trade as embodied by WorldTradeOrganization (WTO).
__________6.This is the only global international organization dealing with therulesof trade between
nations.
__________7.This refers to these countries' "interconnected historiesof colonialism, neo-imperialism,
and differential economic andsocial change through which large inequalities in living standards,
lifeexpectancy, and access to resources are maintained.
__________8.They occupy different positions in their respective societies as well asinrelation to their
nation-states as they constitute the expandingregional consumer market.
__________9.They were created through growth in retail trade, manufacture, banking, real estate
development, and an expanding range of specialist servicessuch as accounting, advertising, computing,
and market research.
__________10.This is a foreign policy shift was implemented by the UnitedStatestocommit more
resources and attention to the region.
69
H. True or False. Identify whether the statement is correct or not. Write Trueif it iscorrect, False if
not. Underline the what makes the statement incorrect, thenprovide the corrections. (2 points
each)
__________1.Contemporary critics of neo-liberal globalization use the north devidesasa banner to rally
countries victimized by the violent economic curesof institutions like the International
Monetary Fund.
__________2.The Second World described countries whose views aligned withNATOand capitalism, and
the Third World referred to countriesthat supported communism and the Soviet Union.
__________3.The ills of the global south are being globalized.
__________4.The strongest vehicle for social redistribution and the main mechanismfor social transfer
is regionalism.
__________5.Spaces of underdevelopment in developed countries may mirror thepoverty of the
global south, and spaces of affluence mirror thoseof theglobal north.
__________6.The global in global south does not only mean that the south is theglobebut also signifies
that the south has attained high globalization.
__________7.Globalization is the intensification of economic, political, social, andcultural relations
across borders and a consciousness of that intensification, with a concomitant diminution
in the significanceof territorial boundaries
__________8. Globalization in the Asia Pacific and South Asia is anexternal phenomenon being pushed
into the region by world powers likeGraterAsia and the Americas.
__________9.The global south is not relevant for those who live in countriestraditionally associated with it
but also signifies that the southcontinuesto be globalized.
__________10.Regionalism refers to the centralization of political powersorcompetencies

from a higher towards a lower political level.
70
I. Essay. Answer the following questions. (5 points each) 1. Explain the Asia
Pacific and South Asia’s Impact on Globalization. A. Japan
B. China
C. India
D. Philippine
71
UNIT IV THE WORLD OF IDEAS
Coverage: Weeks 10 and 11
Duration: 6 hours
The Global Media Cultures (3 hours; week 10)
The Globalization of Religion (3 hours; week 11)
∙ Explain the dynamics between local and global cultural production ∙ Explain how globalization
affects religious practices and beliefs
1. The Global Media Cultures

2. The Globalization of Religion
The Global Media Cultures

Globalization and identity, globalization and human rights, globalizationandculture, or globalization
and terrorism are some concepts related to thestudyof globalization by many scholars. Among these
concepts, the one that offers special insights is globalization and media. They are partners and act as a
unit. Situationscreated through globalization and media make people conceive they belongtooneworld
called global village, a term coined by Marshall MacLuhan in early 1960’s, aCanadian media theorist, to
express the idea that people throughout the worldareinterconnected through the use of new media
technologies
(143).
According to scholars, the world is globalized in the 1900s upontheadvancement of media and
transportation technology. Changes in migrationpatternswhere people move easily and advancement in
media which brought changes tohumanlife heightens globalization. As a process, globalization worked
silently for millenniawithout having been given a name; as a trend it had been with us since the
beginningof history and further argued that a multitude of threads connect us faraway placesfroman
ancient time
(144)
.
72
Globalization and Media

Globalization which refers to economic and political integration on a worldscale, has a crucial
cultural dimension in which the media has the central role. Global institution like the media has an impact
upon the structures and processesof thenation‐ state, including its national culture. In that sense, media
globalizationisabout how most national media systems have become more internationalized,
becomingmoreopen to outside influences, both in their content and in their ownership and control
(145)
.
Five Time Periods in the Study of Globalization and Media
1. Oral Communication
Globalization as a social process is characterized by the existenceof global economic, political,
cultural, linguistic and environmental interconnections andflowsthat make the many of the currently
existing borders and boundaries irrelevant.
Of all forms of media, human speech is the oldest and most enduring. Humansare allowed to
cooperate and communicate through language. Human ability tomovefrom one place to another and to
adapt to a new and different environment arefacilitated by the sharing of information of other peoples
(146)
. Languages as ameansto
develop the ability to communicate across culture are the lifeline of globalization. Without language there
would be no globalization; and vice versa, without globalizationthere would be no world languages
(147)
.
2. Script
Writing is humankind’s principal technology for collecting, manipulating, storing, retrieving,
communicating and disseminating information. Writing may havebeeninvented independently three times
in different parts of the world: in the Near East, China and Mesoamerica. Writing is a system of graphic
marks representing theunitsof a specific language. Cuneiform script created in Mesopotamia, present-
day Iraq, istheonly writing system which can be traced to its earliest prehistoric origin.
This antecedent of the cuneiform script was a system of counting and recording goodswith clay tokens. The
evolution of writing from tokens to pictography, syllabary andalphabet illustrates the development of information
processing to deal with larger amountsof data in ever greater abstraction(148).
Humans communicate and shared knowledge and ideas through script- the very first writing. The origin of writing
was in the form of carvings such as wood, stone, bones andothers. The medium that drove humans to globalization
was the script of Ancient Egyptianwritten in papyrus (plant). Written and orderly arrangement of documents
pertaining toreligious, cultural, economic and religious practices are done through script for dissemination to other
places. These can also be handed down from generation to
73
generation. Script is an important tool for globalization as it considers the integration of economy, politics and culture
to the world. The great civilization from Egypt to Rome andChina were made possible through script
(149)
.
3. The Printing Press

The printing press is a device that allows for the mass production of uniform printed matter,
mainly text in the form of books, pamphlets and newspapers(150). It revolutionized society in China where
it was created. Johannes Gutenberg further developed this in the 15
th
century with his invention
of the Gutenberg press.
The following are the consequences of the printing press (151):
1. The printing press changed the very nature of knowledge. It preservedknowledge

which had been more malleable in oral cultures. It alsostandardized knowledge.
2. Print encouraged the challenge of political and religious authoritybecause of its ability to
circulate competing views. Printingpressencouraged the literacy of the public and the growth
of schools.
Lands and culture were learned by people through travels. Newsaround the world were
brought through inexpensive and easily obtainedmagazines and daily newspapers. People
learned about theworld. Indeed, printing press helped foster globalization and knowledgeof
globalization.
4. Electronic Media
It refers to the broadcast or storage media that take advantage of electronictechnology. They may
include television, radio, internet, fax, CD-ROMs, DVD, andany other medium that requires electricity
or digital encoding of information. Theterm electronic media is often used in contrast with print media
(152)
.
On going globalization processes such as economic, political, andcultural are revolutionized by a host of
new media in the beginning of the 19thcentury. These electronic media in the likes of telegraph,
telephone, radio, film, andtelevision continously open up new perspectives of globalization. In the20th
74
century, the only available mass media in remote villages was the radio whilefilmwas soon developed as
an artistic medium for great cultural expression. Themost powerful and pervasive mass media is
television as it brought the visual andaural power of film with the accessibility of radio. The introduction of
televisionwasadefining moment in globalization
(153)
. Thus,the world is proclaimed aglobal
village because of television
(154)
.
5.Digital Media
Phones and television are now considered digital while computer isconsidered the most
important media influencing globalization. Computersgive access to global and market place and
transformed cultural life. Thefollowing are the companies involved in globalization: Microsoft, Apple,
Google, and Facebook.
Our daily life is revolutionized by digital media. People are abletoadopt and adapt new parctices like
fashion, sports, music, food and many othersthrough access of information provided by computers. They
also exchangeideas, establish relations and linkages through the use of skype, google, chat, andzoom.
Popular Music and Globalization
Music participates in the reinforcing of boundaries of culture andidentity. Popular music explains
the complex dynamics of globalization not only becauseit is popular but music is highly mediated, is
deeply invested in meaningandhasproven to be an extremely mobile and resourceful capital
(155)
.
World music is defined as the umbrella category which various typesof traditional and non Western
music are produced for Western consumption(156). It is a label of industrial origin that refers to an
amalgamated global marketplaceof sounds as ethnic commodities
(157)
. Globalization is not something that happento
music or has a certain impact on it. Changes in musical culture constituteoneof the aspects of
globalization, and they concern institutions, systemof value, andsocial groups involved in musical life
(158
). The change in popular music is not the
outcome of globalization but rather popular music industry is apart of globalization phenomena
(159)
.
75
The Globalization of Religion
Globalization implicates religions in several ways. It calls forth religious responseand

interpretation. Religions played important roles in bringing about and characterizingglobalization. Among
the consequences of this implication for religionisthat globalization encourages religious pluralism.
Religions identify themselves in relationtoone another, and they become less rooted in particular places
because of diasporasand transnational ties. Globalization further provides fertile ground for a varietyof
noninstitutionalized religious manifestations and for the development of religionasapolitical and cultural
resource
(160)
.
Perspectives on the Role of Religion in the Globalization Process (161)
1. The Modernist Perspective.
It is the perspective of most intellectuals and academics.Its viewis that all secularizations would
eventually look alike and the different religions would all endupas the same secular and “rational”
philosophy. It sees religion revivals as sometimesbeing a reaction to the Enlightenment and
modernization.
2. Post-Modernist Perspective.
It rejects the Enlightenment, modernist values of rationalism, empiricism, andscience, along with the
Enlightenment, modernist structures of capitalism, bureaucracy, and even liberalism. The core value of
post-modernism is expressive individualism. Thepost-modernist perspective can include “spiritual
experiences,” but only thosewithout religious constraints. Post-modernism is largely hyper- secularism,
andit joinsmodernism in predicting, and eagerly anticipating, the disappearance of traditional religions.
Globalization, by breaking up and dissolving every traditional, local, andnational structure, will bring
about the universal triumph of expressive individualism.
3. The Pre-Modernist Perspective.
There is an alternative perspective, one which is post-modern in its occurrencebut which is pre-modern
in its sensibility. It is best represented and articulatedbytheRoman Catholic Church, especially by Pope
John Paul II. The Pope’s understandingisdrawn from his experiences with Poland, but it encompasses
events in other countriesas well. Each religion has secularized in its own distinctive way, which has
resultedinitsown distinctive secular outcome. This suggests that even if globalization bringsabout more
secularization, it will not soon bring about one common, global worldview.
Secularization is understood as a shift in the overall frameworks of humancondition; it makes it

possible for people to have a choice between belief and nonbelief in a manner hitherto unknown
(162 )
.
76
Transnational Religion and Multiple Glocalization
Throughout the 20th century migration of faiths across the globe has beenamajor feature. One of these
features is the deterritorialization of religion – that is, theappearance and the efflorescence of religious
traditions in places wherethesepreviously had been largely unknown or were at least in a minority position
(163)
.
Transnational religion is a means of describing solutions to new-foundsituationsthat people face

as a result of migration and it comes as two quite distinct blendsof religious universalism and local
particularism.
1. It is possible for religious universalism to gain the upperhand, wherebyuniversalism becomes

the central reference for immigrant communities. Insuch instances, religious transnationalism is
often depicted as a religiongoing global.
2. It is possible for local ethnic or national particularism to gain or maintainthe most important
place for local immigrant communities.
In such instances, transnational national communities are constructedandreligious hierarchies

perform dual religious and secular functions that ensurethegroups’ survival(164). Fundamentalist or
revivalist movement attempt to construct purereligion that sheds the cultural tradition in which past
religious life was immersed(165).
Transnational religion is used to describe cases of institutional transnationalismwhereby

communities living outside the national territory of particular states maintainreligious attachments to their
home churches or institutional
(166)
.
Indigenization, hybridization or glocalization are processes that register theabilityof religion to

mould into the fabric of different communities in ways that connect it intimately with communal and local
relations
(167)
. Global -local or glocal religion
represents a genre of expression, communication and individual identities(168). It involves the
consideration of an entire range of responses as outcomes insteadof asingle master narrative of
secularization and modernization
(169)
.
Forms of Glocalization
1. indigenization
2. vernacularization
3. nationalization
77
4. transnationalization
Indigenization is connected with the specific faiths with ethnic groups wherebyreligion and
culture were often fused into a single unit. It is also connectedtothesurvival of particular ethnic groups.
Vernacularization involved the rise of vernacularlanguage endowed with the symbolic ability of offering
privileged access to thesacredand often promoted by empires
(170)
.
Nationalization connected the consolidation of specific nations withparticularconfessions and has been
a popular strategy both in Western and eastern Europe(171). Transnationalization complemented
religious nationalization by forcing groupsto
identify with specific religious traditions of real or imagine national homelandsor toadopt a more
universalist vision of religion
(172)
.
78
References:
The Global Media Cultures
143. McLuhan, M.(1962). The Gutenberg Galaxy: The making of typographic Man, London: Routledgeand
Kegan Paul.
144. Chanda, Nayan (2007). Bound Together: How Traders, Preachers, Adventures, and WarriorsShaped Globalization. New
Haven: Yale University Press.
145. Sinclair, John. (2015). Media and Globalization. Retrieved from: https:// onlinelibrary. wiley. Com/ doi/ abs/
10.1002/9781405165518. Webeos063. Pub2
146. Ostler,n. (2005) Empires of the Word: A Language History of the world. New York: HarperCollins. 147.Schwegler,
Armin. (2006). Language and Globalization. Retrieved from: http://www. globalization101.org/ uploads/File/Syllabus-Lang-
Globalization.pdf.
148. Besserat, Denise S. (2014). The Evolution of Writing. Retrieved from: https://sites. utexas.edu/ dsb/tokens/ the-
evolution-of-writing/
149. Powell, B.B. (2009). Writing: Theory and History of the Technology of Civilization. Oxford: Blackwell. 150. Printing Press.
(2018).Retrieved from: https://www.history.com/topics/inventions/printing-press
151. Eisenstein E. (1979.) The Printing Press as an Agent of Change. Cambridge, UK: Cambridge University Press.
152. What is electronic Media? Retrieved from: http://www.businessdictionary.com/definition/electronic- media.html
153. Lule, J. (2012) Globalization and Media: Global Village of Babel. New York: RowmanandLittlefield.
154. McLuhan, M. (1962). Understanding Media; The Extensions of Man. New York: Signet.
155. El-Ghadban, Yara, Popular Music and Globalization. The SAGE handbookof Globalization.
156. White B.W. (2012) Music and Globalization. Critical encounters. Bloomington and Indiapolis: Indiana University Press.’
And
157. Feld, S. (2012) “My Life in the bush of ghosts: Would Music’ and the commodificationof religious experience. In Wjite
BW (ed) Bloomington and Indiapolis: Indiana universityPress.
158. Baltzis, Alexandros G. Globalization and Musical Culture, Acta Musicological. Vol.77. 159. Eva, Philip, Seana and
Zihao. The Relationship between globalization and Music. https:// popmusicif. Wordpress. Com/ globalization
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References:
The Globalization of Religion
160. Globalization and Religion. (2020). https;// www. Encyclopedia.com environment/encyclopedias- almanacs-transcipts-
and-maps/ globalization-and-religion.
161. Religion and Globalization. Retrieved from: https;// www.fri.org/ article/ 1999/05/ religion-and- globalization
162. Roudometof, V. (2014). Religion and Gobalization. Manfred Stegger, Paul Battersby and JosephM. Siracusa. Eds. The
SAGE handbook of Globalization. Two Vols. Thousand Oaks:SAGE.
163.Cassanova, J. (2001). Religion the New Millennium and Globalization (2000 Presidential Address). Sociology of Religion;
Martin, D. 2001. Pentecostalism:The World their Parish.. Maiden, MA; Basil Blackwell; Roy, O. 2004. Globalized
Islam: The Search for a new Ummah.newYork: Columbia University Press
164. Roudometof, V. (2000) Transnationalism and Globalization: The Greek-Orthodox Diaspora betweenOrthodox
Universalism and Transnational Nationalism Diaspora
165. Roy, O. (2010). Holy Ignorance: When Religion and Culture Part Ways. London: Hurst & Co.
166. Roudometof, V. (2014). Religion and Gobalization. Manfred Stegger, Paul Battersby and JosephM. Siracusa (eds._ The
SAGE handbook of Globalization. Two Vols. Thousand Oaks:SAGE.
167. Burke, P. (2009). Cultural Hybridity.London: Polity; Pieterse , JN 2003 Globalization and Culture: Global Melange. Lnham,
MD:Rowman and Littlefield.
168. Robertson, R. (1991) Globalization, Modernization,and Postmodernization. The Ambiguous Positionof Religion. In
Robertson R. and Garret, W. (eds)Religion and Global Order. NewYork: Paragon House ; Robertson, R. and
Garret,W. 1991. Religion and Globalization. AnIntroduction. In Robertson R. and Garret, W. (eds)Religion and
Global Order. NewYork: Paragon House.
169. Beyer, P. (2007). Globalization and Clocalization.In Beckford JA and Demerath NJ III (eds) TheSAGE Handbook of
the Sociology of Religion. London:SAGE.
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80

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The Contemporary World2020

The Contemporary World

The Contemporary World

6-8 A World of Regions

. Global Food Security

At the end of the course the students should be able to:

UNIT I INTRODUCTION TO GLOBALIZATION

∙ synthesize the definitions of globalization by the different authorities;

Globalization Concepts, Meanings, Features, and Dimensions

faster, cheaper, and deeper in compared to earlier wave of globalization (3).

Globalization is an expansion, and intensification of social

Further, globalization is considered a multi-dimensional process involvingeconomic, political,

Attributes, Qualities or Characteristics of Globalization Globalization has four

Covered in the process of social stretching are:

Historical Periods of Globalization

3. The Early Modern Period (1500-1750)

Roman Catholic Teaching of Globalization

5. Cherunilam, Francis (2010). International Business: Text and Cases. 5

UNIT I INTRODUCTION TO GLOBALIZATION

1. Globalization is about the liberalization and global integration of markets.

3. Nobody is in charge of globalization.

4. Globalization benefits everyone.

5. Globalization furthers the spread of democracy in the world.

Coverage: Week 3, 4, and 5

The Global Economy (2.25 hours; week 3)

∙ define economic globalization

1.The Global Economy

THE GLOBAL ECONOMY

Dimensions of Economic Globalization

Difference between Economic Globalization from Internationalization

the last 100 years or roughly two-thirds of world export

Origin of Economic Globalization

International Monetary Systems and Gold Standard

International monetary system (IMS) refers to a systemthat forms rulesandstandards for

IMS as rules, customs, instruments, facilities, and organizations for effectinginternational

Evolution of the International Monetary System

In 1944, 730 representatives of 44 nations met at Bretton Woods, NewHampshire, United

International Trade and Trade Policies

trade relation between countries

Focuses of Trade Policy in International Trade

Theses are measures that governments or public authorities introducetomake imported

Types of Trade Policies

National Trade Policy

Bilateral Trade Policy

The World Trade Organization (WTO)

Global Economy Outsourcing

One of the most rapidly growing components of international tradeistheoutsourcing of

3. They must induce the necessary relationship-specific investmentsinanenvironment

Possible Determinants of the Location of Outsourcing 1. Size of the country can

affect the “thickness” of its markets.

3. The technology for specializing components determines the willingnessof apartner to

4. The contracting environments can impinge on a firm’s ability toinduceapartner to invest in

24.Whiting, Brianna (2017). http://study.com/academy/lesson/transnational-corporation-definition- examples.html

35. http:// www. business dictionary. Com/ definition/ gold- standard.html

36. www. economics discussion. net/ articles/ international-monetary-system/4256

39. European Monetary System (EMS) http: www. Investopedia.com/ terms/e/ems.asp#ixzz4vBgDqKo340.

European Commission, 2008.

44. What is International Trade? https:// Investopedia. com/ articles/03/112503.asp#xzz4y0nbUED8.

46.Economywatch.com Website. “Trade Policy”. Retrieved fromhttp://www.economywatch.com/international-trade/trade-

47. Um.dk/en Website. “What is Trade Barrier”. Retrieved from:http://um.dk/en/tradecouncil/barriers/what is/

48. WTO.org.comWebsite.“The WTO”. Retrieved from https:// www.wto.org/english/the wtoe/thewto_ehtm 2018.

51. Financial times, July 31, 2001

52. Investopedia.com Website (2018). Subcontracting https://