The Study of Globalization 4 Basic Aspects of globalization:
1. Trade and transaction
Globalization
> the increasing interaction of people, states, or
countries through the growth of intl. flow of money
> primarily economic focused w/ social and cultural
aspects
“processes by which the people of the world are
incorporated into a single world society.”
- Martin Albrow, Elizabeth King
“the intensification of worldwide social relations
which link distant localities in such a way that local
happening are shaped by events occurring many
miles away and vice versa.”
- Anthony Giddens
“the compression of the world and the
intensification of the consciousness of the world as
a whole”
- Roland Robertson
Historical Foundation:
Silk Road
> network of trade routes that connected eat and
west (114 BCE - 1450s CE)
Manila Galleons
> Spanish trading ships that linked Ph w/ Mexico
across Pacific from Acapulco to Manila
> 2 ½ centuries
*Large scale globalization began in the 1820s
where 19th-20th Century world economies grew
rapidly.
Corporate Giants
> coined by Charles Taze Russell
> largely national trusts and other large enterprises
of the time
Globalize
> appeared on “Towards New Education” where it
denoted a holistic view of human XP in education
“Globalization”
> coined in 2013
> means borderless society referring to intl.
migration
> only in 2017 was it used often in education
2. Capital and investment movements
3. Migration of knowledge
4. Dissemination
Stages of Globalization
1. Domestic Company
> Market potential and production marketing is only
in home country
> no overt efforts to expand globally
>may add new product lines, serve new local
markets but whole planning is limited to national
markets only
2. International Company
> domestic companies that expand to intl. markets
3. Multinational Company
> companies make different things per region or
nation so as to satisfy customers there
4. Global Company
> adopts global strategy for marketing their
products
> markets products throughout the world
> may make products globally and sell domestically
5. Transitional Company
> operates at the global level by way of utilizing
global resources to serve the global markets
> It produces best quality raw materials from the
cheapest source in the world, process them in the
country wherever it is economical and sells the
finished products in those markets where prices are
favorable
Pros of Globalization:
1. Global competition and imports keep a lid on
prices such that inflation is less likely to derail
economic growth.
2. An open economy spur fast innovation with fresh
ideas from abroad.
3. Export jobs often pay more than other jobs
4. Unfettered capital flow keeps interest rates low.
5. Living standards go up faster.
6. Productivity grows more quickly when countries
produce goods and services in which they are of
comparative advantage.
7. Countries liberalize their visa rules and
procedures so as to permit the full flow of people
from country to country.
8. It results in freeing up the unproductive sector to
investment and the productive sector to export
related activities resulting in a win-a-win situation
for the world economy
Cons of Globalization:
1. Several people lose their jobs when companies
import cheap labor or materials or shift production
abroad.
2. Workers face pay cut demands from employers
who often threatens to export jobs.
3. Unregulated globalization can cause serious
problems to poor and developing countries in terms
of labor force, wages, benefits, job, termination and
others
4. High foreign stake on industries where it is not
necessarily needed could affect the economic
growth of domestic enterprise.
5. Sovereignty of a country and company/institution
may be at stake.
Theory of Comparative Advantages
> countries that are good at making something are
better off exporting to where that something is not
commonly made and vice versa
> not all countries are good at making everything so
trading things will benefit both parties
> because of the wage differential and the way in
which different countries are endowed with
different resources, countries stand to gain by
trading with each other
Structures of Globalization
1) Global Economy (World Economy)
> international exchange of goods and services that
is expressed in monetary units of money
> free movements of goods, capital, services,
technology, and information
> limited to economy based on money (e.g drugs
and black market)
concerned on the globalization of production,
finance, markets, technology, organizational
regimes, institutions, corporations, and labor
“Global Economy or Economic Globalization is
concerned on the globalization of production,
finance, markets, technology, organizational
regimes, institutions, corporations, and labor.”
- General Agreement on Tariffs and Trade (GATT)
and World Trade Organization (WTO)
Market integration
> When prices among different location or related
goods follow the same patterns over a long period
of time
> When groups of prices often move proportionally
to each other and when this relation is very clear
among different markets
The Great Depression
> a severe worldwide economic depression that
took place mostly during the 1930s - late 1930s
International Financial Institutions
> Multilateral Development Banks (MDBs)
> were established after World War II to help
rebuild war-torn countries and manage the global
financial system
> Its owners or shareholders are generally national
governments, although other international
institutions and other organizations occasionally
figure as shareholders
The International Financial Institutions are:
1. International Monetary Fund (IMF)
> an organization of 189 countries, working to
foster global monetary cooperation, secure financial
stability, facilitate international trade, promote high
employment and sustainable economic growth, and
reduce poverty around the world
>provides temporary financial assistance to member
countries to help ease balance of payments
adjustments
2. Multilateral Development Banks (MDBs)
> international financial institution chartered by two
or more countries for the purpose of encouraging
economic development in poorer nations
>provide loans and grants to member nations to
fund projects that support social and economic
development, such as the building of new roads or
providing clean water to communities (e.g World
Bank Group, African Development Bank, Asian
Development Bank, Inter-American Development
Bank, European Bank for Reconstruction and
Development)
> MDBs provide financing for development to
developing countries through: long term loans, very
long-term loans and granting financing by some
MDB for technical assistance advisory service or
project preparation
2) Global Corporation
> has significant investments and facilities in
multiple countries but lacks a dominant
headquarters
>governed by the laws of the country where they
are incorporated
>is more invested in its overseas locations, it can be
more sensitive to local opportunities – and also
more vulnerable to threats
3) Global Interstate System
> labor is divided into 3 zones accd. to how
profitable an industry/activity is: core, semi-
periphery, periphery.
> a system of competing and allying states
> approach to world history and social change that
suggests there is a world economic system in which
some countries benefit while others are exploited
> emphasizes social structure of global inequality
Capitalism
> economic / political system where a country’s
trade and industry are controlled by private owners
for profit rather than by state
3. Global Governance (World Governance)
>movement towards political cooperation among
transnational actors, negotiating responses to
problems that affect more than one state or region
> GOAL: movement towards political cooperation
among transnational actors, negotiating responses to
problems that affect more than one state or region
Globalization of Religion
Globalization
> integrated and development of a global economy
by free trade
Globalism
> an ideology of treating the whole world as a
proper sphere of political influence
Religion
> more concerned about righteousness and a higher
being
> has always been the center of all great political
conflict and movements of social reform (Jose
Casanova)
> a proactive force that gives communities a new
and powerful basis of identity
Globalism
> more concerned about material fortune and wealth
“Globalization has “freed” communities from the
“constraints of the nation-state”, but in the process,
also threatened to destroy the cultural system that
bind them together.”
Throw away society
> view of short-lived items over durable repairable
goods
UN and Contemporary global governance
Global Governance
> various intersecting processes that create
semblance of world order despite the lack of a
single world government
> movement towards political cooperation among
transitional actors, aimed at negotiating responses to
problems that affect more than one place
> process of designating laws, rules, or regulations
intended for a global scale
> is not a singular system
International Organization
> commonly used to refer to intl. intergovernmental
organizations or groups that are primarily made up
of member states (Evans & Newham)
IOs Powers:
1. Power of classification.
2. Power to fix meanings.
3. Power to diffuse norms.
United Nations (UN)
> most prominent IO in the contemporary world
> made after the League of Nations fell after WW2
> main Fn is to maintain peace and security for all
of its member-states
> aims to protect human rights and provide
humanitarian assistance when needed
> provides help during: elections, judicial and draft
constitutions, human official training, providing
food, drinking water, and shelter
Five active organs in UN
1. General Assembly
> main deliberative policymaking and
representative organ
> important decisions require 2/3 majority of GA’s
approval like peace and security, member
admissions, budget, etc.
> The Philippines played a prominent role in the
GA’s early years when Filipino diplomat Carlos P.
Romulo was elected GA president from 1959-1950
2. Security council
> calls disputing parties to settle the act by peaceful
means and recommends methods of adjustment
> may resort to imposing sanctions or even
authorizing the use of force to maintain or restore
intl. peace and security
>states that want to intervene militarily need
consent from SC
> consists of 15 member-states in 2-year terms; F5 -
China, France, Russia, UK, US
> F5 have been permanent members since UN
founding and cannot be replaced through election
3. Economic and Social Council (ECOSOC)
>“It is the principal body for coordination, policy
review, policy dialogue, and recommendations on
social and environmental issues, as well as the
implementation of internationally agreed
development goals.”
> central platform for sustainable development
> 54 elected members 3-year terms
4. International Court of Justice
> tasked to settle in accordance w/ the intl. law,
legal disputes submitted and give advisory opinions
referred to it by authorized UN organs and
specialized agencies
> not the international criminal court
> decisions are only binding when states have
explicitly agreed to place themselves before the
court’s authority
> SC may enforce the rulings of the ECJ, but this
remains subject to the P5’s veto power
5. Secretariat
> consists of the “Secretary-General and thousands
of intl. UN staffs who carry out normal work of the
UN as mandated by the GA and organization’s
other principal organs
> serves as kind of a intl. civil service
> staffs serve as UN employees not state
representatives
Millenium Development Goals
1. Eradicate extreme poverty and hunger
2. Achieve universal primary education
3. Promote gender equality and empower women
4. Reduce child mortality
5. Improve maternal health
6. Combat HIV/AIDS and other diseases
7. Ensure environmental sustainability
8. Develop a global partnership for development
The Kosovo war
> US wanted to help in Serbia due to ethnic
cleansing done by Serbian Pres. Slobodan
Milosevic but China and Russia threatened to veto
the notion so NATO (North Atlantic Treaty
Organization) intervened on its own
Media and Globalization
Globalization
> relies on media as its main conduit for spreading
culture and ideas
Media
>”a means conveying something, such as a channel
of communication” (Print media, Broadcast media,
digital media and internet media)
>”the medium is the message (McLuhan, Marshall)
>media as a technology reshapes society
> different media simultaneously extend and
amputate human senses (McLuhan)
Global Village
>idea that people are connected and have become a
single community
Cultural Imperialism
> exercise of domination in cultural rel. in w/c
foreign culture is imposed upon one or more native
cultures
“Media globalization coupled with politico-cultural
hegemony would create cultural imperialism”
“cultural globalization is simply a euphemism for
“Western cultural imperialism” since it promotes
“homogenized, Westernized, consumer culture”
- John Tomlinson
“splinternet” ; “cyberbalkanization”
> various bubbles people place themselves in when
they are online
>they can impede users from looking at other
opinions and make them close-minded
The Global City
1. Globalization is special bc it occurs in physical
spaces.
2. It is special bc what makes it move is that it is
based in places.
1950 - 30% lived in urban places
2014 - 54% lived in urban places
2050 - approx.. 66% live in urban places
Global City
> popularized the term in 90s
> criteria for it were primarily economic
> 3 global cities:
NY - NYSE (NY Stock exchange)
Ln - Financial Times Stock exchange
Tokyo - Nikkei 225
In what ways and to what extent are cities Global?
Indicators for Globality
1. Economic power
> Tokyo houses the most corporations, NY has the
largest stock market, Shanghai controls supply
chain, etc.
2. Economic Opportunities
> IT programmers and engineers move to SF bay
area to become part of Silicon Valley, London
remains preferred place for Filo nurses
3. Economic Competitiveness
> Economist Intelligence Unit added criteria like
market size, purchasing power of citizens, size of
middle class, and potential growth
> Sg has a strong market, efficient government, and
good livability; also houses regional offices of
many global corps.
4. Center of Authority
> DC is not wealthy but known as seat of American
power
> Canberra is Aussies political capital
5. Political influence
>cities housing major intl. organizations may also
be considered centers of political influence
> HQ for UN is in NY, Brussels for EU
> HQ for Southeast Asian Nations (ASEAN)
> powerful political hubs influence their own
countries and intl. affairs
6. Center of learning and culture
> city’s intellectual influence is seen through the
influence of its publishing industry
> NY times carries the name of NY
> many people visit Boston bc it has Harvard
Challenges of Global City
>cities can be sustainable bc of their density, less
carbon emissions bc of public transit, however some
cities force residents to spend money on cars and
gas
> urban areas cover 2% of surface area but 78% of
the energy
>cities w/ global influence are targets for terrorism
> economic globalization leads to inequality
> poor residents are forced to relocate to cheaper
areas - gentrification
> poor Muslim migrants are forced out of Paris and
cluster around ethnic enclaves - banlieue
> global cities thin out middle class by creating high
high-income jobs w/c generates demand for
unskilled labor force, this moves middle-income
jobs outside of the country
*Global cities are sites and mediums of
globalization, … they are material representations
of the phenomenon.