Lesson 1: Introduction to Globalization
in developed nations to invest in developing
Globalization
 used to describe the increasing
connectedness and interdependence of world
cultures and economies.
 used to describe how trade and technology
have made the world into a more connected
and interdependent place.
 refers to the trend toward countries joining
together economically, through education,
society, and politics, and viewing themselves
not only through their national identity but also
as part of the world as a whole.
When did GLOBALIZATION begin?
 Many scholars say it started with Columbus’s
voyage to the New World in 1492.
 The Silk Road, an ancient network of trade
routes across China, Central Asia, and the
Mediterranean used between 50 B.C.E. and
250 C.E. is perhaps the most well-known early
example.
 As with future globalizing booms, new
technologies played a key role in the Silk Road
trade.
o Advances in metallurgy led to the
creation of coins
o advances in transportation led to the
building of roads connecting the major
empires of the day
o increased agricultural production
meant more food could be trafficked
between locales.
 Along with Chinese silk, Roman glass, and
Arabian spices, ideas such as Buddhist beliefs
and the secrets of papermaking also spread
via these tendrils of trade.
 These types of exchanges were accelerated in
the Age of Exploration when European
explorers seeking new sea routes to the spices
and silks of Asia bumped into the Americas
instead.
 Technology played an important role in the
maritime trade routes that flourished between
old and newly discovered continents.
 New ship designs and the creation of the
magnetic compass were key to the explorers’
successes.
 Trade and idea exchange now extended to a
previously unconnected part of the world,
where ships carrying plants, animals, and
Spanish silver between the Old World and the
New also carried Christian missionaries/
Advantages of GLOBALIZATION
 Increased free trade between nations
 Increased liquidity of capital allowing investors
nations
 Corporations have greater flexibility to operate
across borders
 Global mass media ties the world together
Increased flow of communications allows vital
information to be shared between individuals
and corporations around the world
 Greater ease and speed of transportation for
goods and people
 Reduction of likelihood of war between
developed nations
 Increases in environmental protection in
developed nations.
Disadvantages of GLOBALIZATION
 Increased flow of skilled and non-skilled jobs
from developed to developing nations as
corporations seek out the cheapest labor
 Increased likelihood of economic disruptions in
one nation effecting all nations
 Corporate influence of nation-states far
exceeds that of civil society organizations and
average individuals
 Threat that controls of world media by a
handful of corporations will limit cultural
expression
 Greater chance of reactions for globalization
being violent in an attempt to preserve cultural
heritage
 Greater risk of diseases being transported
unintentionally between nations
Types of GLOBALIZATION
 Economic
o Countries that trade with many others
and have few trade barriers are
economically globalized.
 Social
o A measure of how easily information
and ideas pass between people in
their own country and between
different countries (includes access to
internet and social media networks).
 Political
o The amount of political co-operation
there is between countries.
Causes of Globalization
1. Improved Communications
 The development of communication
technologies such as internet, email and
mobile phones have been vital to the
growth of globalization because they help
MNCs to operate throughout the world.
 The development of satellite TV channels
such as BBC and CNN have also provided
worldwide marketing avenues for the
concept and products of globalization.
 2. Improved Transport
 The development of refrigerated and
container transport, bulk shipping and
improved air transport has allowed the
easy mass movement of goods throughout
3.
the world. This assists globalization.
Free Trade Agreements
 MNCs and rich capitalist countries have
always promoted global free trade as a
way of increasing their own wealth and
influence. International organizations such
as the World Trade Organization and the
IMF also promote free trade.
4. Global Banking
 Modern communication technologies allow
vast amounts of capital to flow freely and
instantly throughout the world.
 The equivalent of up to $US1.3 trillion is
traded each day through international
stock exchanges in cities such as New
York, London, and Tokyo.
5. The Growth of MNCs
 The rapid growth of big MNCs such as
Microsoft, McDonalds and Nike are a
cause as well as a consequence of
globalization. The investment of MNCs in
farms, mines and factories across the
world is a major part of globalization.
 Globalization allows MNCs to produce
goods and services and to sell products on
a massive scale throughout the world.
Lesson 2: The Structures of Globalization
Global Economy
Global Economy in relation to emerging markets:
 refers to the interconnected worldwide
economic activities that take place
between multiple countries.
 It refers to the exchange of goods and
services between different countries, and it
has also helped countries to specialize in
products which they have a comparative
advantage in.
The global economy comprises several
characteristics
 Globalization
o describes a process by which
national and regional economies,
societies, and cultures have
become integrated through the
global network of trade,
communication, immigration, and
transportation. These
developments led to the advent of
the global economy. Due to the
global economy and globalization,
domestic economies have become
cohesive, leading to an
improvement in their
performances.
 International trade
o considered to be an impact of
globalization. It refers to the
exchange of goods and services
between different countries, and it
has also helped countries to
specialize in products which they
have a comparative advantage in.
This is an economic theory that
refers to an economy's ability to
produce goods and services at a
lower opportunity cost than its
trade partners.
 International Finance
o Money can be transferred at a
faster rate between countries
compared to goods, services, and
people, making international
finance one of the primary
features of a global economy.
International finance consists of
topics like currency exchange
rates and monetary policy.
 Global Investment
o This refers to an investment
strategy that is not constrained by
geographical boundaries. Global
investment mainly takes place via
foreign direct investment (FDI).
Economic importance at a micro and macro
level
 The increase in the world’s population has
led to emerging markets growing
economically, making them one of the
primary engines of world economic
growth. The growth and resilience shown
by emerging markets is a good sign for the
world economy. Before delving into the
next point, you need to understand the
concept of microeconomics. It refers to the
study of the behavior of households,
individuals, and firms with respect to the
allocation of resources and decision-
making. In simpler terms, this branch of
economics studies how people make
decisions, what factors affect their
decisions, and how these decisions affect
the price, demand, and supply of goods in
the market.

Long-term world economic outlook
 According to financial and economic
projections based on demographic trends
and capital productivity models, the GDP
in emerging market economies in 2019 are
likely to keep increasing at a positive rate.
According to an emerging markets
economic forecast for 2019 conducted by
Focus Economics, the economy is set to
increase by 7.5% in India, 6.6% in
Philippines, 6.3% in China,5.3% in
Indonesia, 5.1% in Egypt, 4.9% in
Malaysia, 3.8% in Peru and3.7% in
Morocco.
The Global Interstate System
 Interactions by various political entities,
but mostly states. Today the system is
global, but it has not always been the
case. Some parts of the world did not
know of other parts, much less interact.
International State System
 was born in Europe with the Treaty of
Westphalia in 1648, after the Thirty Years
War. With this treaty state sovereignty was
recognized for the first time. States begin
to grow in power. Nationalism finally
emerges with American and French
Revolutions, before then allegiance was
paid to local affiliations, not abstractly to
people never met before.
Other International Actors
MNCs: Multinational Corporations
IGOs: Intergovernmental Organizations
INGOs: International nongovernmental
organizations
Other individuals or groups that are politically
active but not necessarily recognized officially
(terrorists, nations, etc.)
Expansion of the Interstate System
 The state system expanded most rapidly
in last150 years, especially the last 50
years. It started in Europe and spread to
the rest of the world.
 Europeans experienced fast
development necessary (tax systems and
military power) to spread influence and
power around the world. Earlier they’re
existed large empires in other parts of the
world. For example, China was the
strongest empire in the world for most of
the period from700 a.d. to 1300 a.d.
 Three Waves·
o USA and Latin America (1780-
1850)
o East Europe (after WWI) Self-
determination
o Asia and Africa (after WWII),
later fall of communism of
Russian Empire and
Yugoslavia(after 1989)
Market integration
 occurs when prices among different
locations correlated goods follow similar
patterns over a long period of time.
Groups of prices often move proportionally
to each other and when this relation is
very clear among different markets it is
said that the markets are integrated.
Global governance
 is such a complex issue, international
organizations are highlighted because
they are the most visible symbols of global
governance.
International System
 is one window into the broader
phenomenon of globalization. It is a very
crucial aspect of globalization since global
interactions are heightened by the
increased interdependence of states.
International relations
 are facilitated by International
Organizations that promote global norms
and policies. The most prominent example
of this organization is United Nations.,
Lesson 3: A History of Global Politics: Creating
on International Order
Global Politics
 also known as world politics, names both
the discipline that studies the political and
economic patterns of the world and the
field that is being studied.
 At the center of that field are the different
processes of political globalization in
relation to questions of social power.
 The discipline studies the relationships
between cities, nation-states, shell-states,
multinational corporations, non-
governmental organizations, and
international organizations.
 Current areas of discussion include
national and ethnic conflict regulation,
democracy and the politics of
 national self-determination, globalization
and its relationship to democracy, conflict
and peace studies, comparative politics,
political economy, and the international
political economy of the environment.
 One important area of global politics
is contestation in the global political
sphere over legitimacy.
Theories of Global Politics
 Realism
 Liberalism
 Modernization Theory
 Dependency Theory
 Neoliberalism
 Universalism
 Relativism
 Just War Theory
 Galtung’s Conflict Theory
Why do we see these things differently?
 The world view is influence by our
thoughts, prejudices, and assumptions.
 Another wat of defining a theory is to sat
that it is a set of connected ideas and
assumptions that attempts to explain why
something happens the way it does and to
predict what may happen in a given
situation or set of circumstances
International Order
 The image of a peaceful, orderly world
where men and nations resolve their
differences without war, where the lion lies
down with the lamb, has haunted
humankind for millennia.
 Roman law expressed the gulf between
the ideal and the reality concisely by
contrasting the condition of man living
under the unsaturable, the natural law, a
world of peace and harmony, with the
human condition as it actually was under
the is gentium, the law of nations, a
condition that included war and conflict.
 The very creation of government at the
lowest level was the beginning of efforts to
create order at least within a small area, to
establish an order within which people
could live peacefully withgone another by
accepting a set of rules that shaped their
relations with one another.
 There is the need to create rules that
enable neighboring societies to get along
with one another. At the ultimate level,
there was the desire to create a peaceful
world order that would bring all the nations
of the world into a peaceful, harmonious
relationship
Major International Organizations
 United Nations
 League of Nations
 North Atlantic Treaty Organization (NATO)
 European Union (EU)
 World Trade Organization (WTO)
 Group of Twenty (G20)
 International Criminal Court (ICC)
Lesson 4: A World of Regions
 According to Edward D. man’s field and Helen
V. Milner state that economic and political
definitions of regions vary, but there are
certain basic features that everyone can agree
on.
 Regions are “a group of countries located in
the same geographically specified area" or
are "an amalgamation of two regions or a
combination of more than two regions"
 Regionalization refers to regional
concentration of economic flows
 Regionalism is a political process
characterized by economic policy cooperation
and coordination among countries
Countries respond economically and politically to
globalization in various ways. Some are large enough
and have a lot of resources to dictate how they
participate in processes of global integrations. Other
counters, make up for their small size by taking
advantage of their strategic location. In most cases,
however, countries form a regional alliance for - as the
saying goes - there is strength in numbers.
Amalgamation
 the action, process, or result of combining or
uniting. "the threat of amalgamation with a
competitor"
Military Defense
 NATO - North Atlantic Treaty Organization
o Formed during the Cold War when
several Western European countries
plus the United States agreed to
protect Europe against the threat of
the Soviet Union
 WARSAW PACT
o Soviet Union's regional Alliance
consisting of the Eastern European
countries under Soviet dominations.
Resources
 OPEC- The Organization of the Petroleum
Exporting Countries
o Was established in 1960 by Iran, Iraq,
Kuwait, Saudi Arabia, and Venezuela
to regulate the production and sale of
oil.
 NAM - Non-Aligned Movement
 o The presidents of Egypt, Ghana, India,
Indonesia, and Yugoslavia created this
in 1960 to pursue world peace and
international cooperation, human
rights, national sovereignty, racial and
national equality, non-intervention, and
peaceful conflict resolution.
Other Organizations
 ASEAN - Association of Southeast Asian
Nations
o The Association of Southeast Asian
Nations, or ASEAN, was established
on 8 August1967 in Bangkok,
Thailand, with the signing of the
ASEAN Declaration (Bangkok
Declaration) by the Founding Fathers
of ASEAN, namely Indonesia,
Malaysia, Philippines, Singapore and
Thailand.
 NAFTA - North American Free Trade
Agreement
o The North American Free Trade
Agreement (NAFTA) established a
free-trade zone in North America; it
was signed in 1992 by Canada,
Mexico, and the United States and
took effect on Jan.
 Rainforest Foundation
o to protect indigenous people of Brazil,
Guyana, Panama, and Peru.
 exercise leadership in global decision making
to sustain the open global trade and financial
systems that have supported a half century of
unparalleled economic development;
 build connected infrastructure and collaborate
on inclusive development to reduce
inequalities within and across economies and
thus to strengthen support for pro-growth
policies; and • create regional mechanisms to
manage cross-border health, safety, and
environmental issues better. The opportunities
are clear, which is why regional integration
deserves a high priority in national
policymaking. Yet the challenge of
cooperation should not be underestimated; it
will require trust, innovation, and compromise
—and, most likely, time. Policy makers at the
highest levels appear committed to pushing
the regional agenda forward, but
considerable leadership and energy are
needed to achieve results.

Regionalism

 refers to formal economic cooperation and

economic arrangements of a group of
countries aimed at facilitating or enhancing
regional integration.

How regionalism can benefit Asia

Regional cooperation, effectively structured and

implemented, is a powerful new tool in Asia’s policy
arsenal. It can help Asia address regional challenges
as well as provide stronger foundations for its global
role. An integrated Asia can

 link the competitive strengths of its diverse

economies in order to boost their productivity
and sustain the region’s exceptional growth; •
connect the region’s capital markets to
enhance financial stability, reduce the cost of
capital, and improve opportunities for sharing
risks;
 cooperate in setting exchange rate and
macroeconomic policies in order to minimize
the effects of global and regional shocks and
to facilitate the resolution of global imbalances;
 pool the region’s foreign exchange reserves
to make more resources available for
investment and development;