PLT COLLEGE, INC.

Bayombong, Nueva Vizcaya

Tel (078) 805-3682
Website www.pltcollege.educ.ph
Email pltc@pltcollege.educ.ph

The Contemporary World Module

Schedule – 9:30-10:30 MWF
Instructor: Sherry Mae B. Angihan
09550549187
Sherry11bonn@gmail.com

Globalization

Definition of Globalization

It is the increasing interaction of people, states or countries through the growth of the
international flow of money, ideas and culture. Thus, globalization is primarily focused
on economic process of integration that has social and cultural aspect.
It is the interconnectedness of people and business across the world that eventually
lead to global, cultural, political, and economic integration.
It is the ability to move and communicate easily with others all over the world in order
to conduct business internationally.
It is the free movement of goods, services and people across the world in a seamless
and integrated manner.
It is the liberalization of countries of their impact protocols and welcome foreign
investment into sectors that are the mainstays of its economy.
It refers to the countries acting like magnets attracting global capital by opening up their
economies to multinational corporations.

Globalization as defined by other Authors:

1. Martin Albrow and Elizabeth King- Globalization are those processes by which the
people of the world are incorporated into a single world society.
2. Anthony Gddens- Globalization is the intensification of worldwide social relations
which link distant localities in such a way that local happenings are shaped by events
occurring many miles away and vice versa.
3. Roland Robertson- Described globalization in 1992 as the compression of the world
and the intensification of the consciousness of the world as a whole.

Historical Foundation of the term Globalization

1897- Charles Taze Russell coined a related term, corporate giants. This term refers to the
largely national trusts and other large enterprises of the time.
 PLT COLLEGE, INC.
Bayombong, Nueva Vizcaya
Tel (078) 805-3682
Website www.pltcollege.educ.ph
Email pltc@pltcollege.educ.ph
1930- the word “globalize” as a noun appeared in a publication entitled Towards New
Education.

1970’s- the word “globalization” was coined. In 2013, this term was used to mean borderless
society referring to international migration

1981- the term globalization has been used in its economic sense. However, in the half of the
1980’s, Theodore Levitt popularized the term globalization by bringing it into the mainstream
business audience.

2000- The International monetary Fund identified 4 basic aspects of globalization:

a. Trade transactions
b. Capital and investment movements
c. Migration of knowledge
d. Dissemination

2017- the word globalization was often used in teaching in discussion, in meetings and
conferences, in lectures and so on

2018- the phenomenon of globalization is now on full swing in all academic disciplines

Dimensions of Globalization

1. Planning to expand the business on a worldwide scope

2. Giving up the distinction between domestic and foreign market and instead developing
a global outlook of such business.
3. Locating the production and the physical facilities of the business by considering global
business dynamics irrespective of national consideration.
4. Creating product development and production planning on a global market sphere
5. Global sourcing of the factors of production such as raw materials components,
machinery. Technology, finance and others that are obtained from the best source
anywhere in the world.
6. Global orientation or organization structure and culture management.

Reasons for Globalization

1. Rapid shrinking of time and distance across the globe. One can easily cross the bridge
going to the other side of the market place due to advance tools of technology than
before.
2. Domestic markets are no longer rich as a consequence of many interlocking factors
 PLT COLLEGE, INC.
Bayombong, Nueva Vizcaya
Tel (078) 805-3682
Website www.pltcollege.educ.ph
Email pltc@pltcollege.educ.ph
3. Companies and institutions go global to find political and economic stability which is
relatively good in other countries than the country of origin.
4. To get technological and managerial know-how of other countries due to their
advancement in science, technology, education, health, and other fields of discipline.
5. To reduce high transportation costs if one goes globally using the advance tools of
communication and information.
6. To be close to raw materials and to markets for their finished products which are not
available in the country of origin.
7. The creation of the World Trade Organization had made it possible in stimulating
increased cross border trade.

Merits 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 spurs 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 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-win situation for the world economy.

Demerits 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 maybe at stake.

Importance of Studying Globalization

 PLT COLLEGE, INC.
Bayombong, Nueva Vizcaya
Tel (078) 805-3682
Website www.pltcollege.educ.ph
Email pltc@pltcollege.educ.ph
1. There is a greater demand in business and industry, health, engineering, and technology
to have people who can work with people of other nations and cultures.
2. There is a greater demand of promoting the local business and industry to other
countries and if need be, owners travel independently and internationally for a better
promotion.
3. The contemporary world face global challenges that will take interdisciplinary groups to
solve these challenges. These challenges are; how to provide access to clean water,
clean environment, clean renewable energy that is affordable to everyone and how to
deal with the unpredictable climate change just to name a few. These global challenges
need to be solved as soon as possible through the gathering and sharing of information
across disciplines, institutions, and other entities in a global scale.
4. Creating meaningful, harmonious, and workable relationship that link globally is an
important aspect of the merits of globalization especially if one wish to be the president
of the future generation.
5. Knowledge of the merits, demerits and reasons for globalization will enable the students
to work as model of collaborative international team in the near future along the areas
of business, education, health, science, arts, engineering, hotel industries, etc. and
discuss best products in these areas.