Globalization Lesson 1 – Defining - Computers, Laptops, Cellphones, Tabs,

and Understanding Globalization gadgets. Yahoo, Google, Facebook, Twitter,

RELIGION - Is a cause, principle or system of Thumblr, Instagram and the latest is TikTok.
beliefs held to with ardor and faith
What is Globalization?
POLITICS - Activities that relate to influencing
the actions and policies of a government. Positive definition
HISTORY - The study of past events that relate
- process of world shrinkage, of distances
to a particular subject, place, organization, etc.
getting shorter, things moving closer
GLOBALIZATION -The onset of a borderless
(Larson, 2001)
world
- Pertains to increasing ease to interact
ECONOMICS - A science concerned with the
on other side of the world in terms of
process or system by which Goods and services
are produce, sold and bought economy, political system, culture and
social structures
History – Changes through time of human
- Phenomenon pertaining to progress,
affairs. Much has changed since time
development and integration
immemorial.
Negative definition
- The more recent change, if not the most
important change (Bauman, 2003) that has - Some kind of colonization that is

been going on for centuries is occurring through and with regression,

GLOBALIZATION or the GLOBAL colonialism and destabilization (Khor,

AGE (Albrow, 1996) TWN)

CLASSIFICATION
- Among the latest change is the INTERNET
connectivity of the mass (social) media 1. Broad and inclusive
among people, communities, and countries
- means the onset of the borderless
all over the globe brought about by Satellite
world (Ohmae, 1992), it deals with overcoming
connection technology. traditional boundaries

- That lead to improved communication 2. Narrow and exclusive

technology.
- includes the internationalizing of
production, the new international division of
labor, new migratory movements from north to
south, the new competitive environment and
internationalization of the state…making states
into agencies of the globalizing world (RAWOO,
2000)
GLOBALIZATION Is a transplanetary
process or a set of process involving
increasingly liquidity and the growing
multidirectional flows of people, objects, places
and information as well as the structures they
encounter and create that are barriers to or
expedite, these flows
- Globalization could bring either or
both integration and / or
fragmentation.
- Although things flow easily in global
world, hindrances or structural blocks
are also present
Concepts of Globalization
1. Perspective of the person defining
globalization
A. Positive – means it can be a
unifying force
B. Negative – as creating greater
inequalities among nations
2. Globalization is the debate and
debate is globalization. One became part
and parcel of the other.
3. Globalization is a reality. Changing as
human society develops. It has happened
before, still happening today, and expect to
continue happening in the future
Metaphors of Globalization
SOLID – the social relationships and objects
remained where they were created.
- Solidity also refers to barriers that
prevent or make difficult the movement
of things. It can be natural or man-
made.
- Man made barriers have tendency to
melt over time becoming increasingly liquid.
LIQUID – are not fixed. Refers to the
increasing ease of movement of people, things,
information and places in the contemporary
world.
- Space and time are crucial elements
of globalization.
- Changes are continuous and difficult to
stop
FLOWS – movement of people, things,
places, and information brought by growing
“porosity” of global limitations (Ritzer, 2015)
Globalization Lesson 2 – Aspects of
Globalization
A. GLOBALIZATION THEORY – as a
process to increase homogeneity or
heterogeneity
  HOMOGENEITY – refer to the
increasing sameness in the world
as cultural inputs, economic factors,
and political orientations of societies
expand to create common practices,
same economies and similar forms
of government.
A. CULTURE: leads to cultural
imperialism – a given culture influences
other cultures. Ex. Christianity /
Americanization
 Catholicism – religion from Spain
dominant in the Philippines because of
colonization which is influential in
forcing people to adapt to their beliefs.
 Americanization-importing or
using look alike American products
 B. ECONOMIC: neoliberalism,
capitalism & market economy
 Neoliberalism - as involving "the
priority of the price mechanism, free
enterprise, the system of
competition, and a strong and
impartial state". To be "neoliberal"
meant advocating a modern
economic policy with state
intervention.
 Capitalism - an economic and
political system in which a country's
trade and industry are controlled by
private owners for profit, rather than
by the state.(Dictionary.com)
 Market economy is a system where
the laws of supply and those of
demand direct the production and
prices of goods and services.
Supply includes natural
resources, capital, and labor.
Demand includes purchases by
consumers, businesses, and the
government. (the Balance.com)
 POLITICAL: “Mcworld” – there is a
corporate control over the political
process (Benjamin Barber, American
Political Scientist)
 MEDIA IMPERIALISM: global flow
of media perceived as imposed on
developing countries by the west.
Ex. Movies and Internet social
media.
 From old media to new media.
Internet as an arena of alternative
media.
 Becoming less diverse and
competitive
 Hacktivists: Internet
activist/hackers to promote a
cause
 MCDONALDIZATION: a system of
organization adapted in different
corporations and societies. As such
western societies are dominated by
the principles of fast food
 restaurants in terms of rational
systems, such as efficiency,
calculability, predictability and
control which is extended to other
business, sectors and geographical
areas(Ritzer, 2008).
 GROBALIZATION is the process
wherein nations, corporations etc.,
impose themselves on geographic
areas in order to gain profits (Ritzer
2007),
 like having a McDonald’s in a
meeting.
 Grobalization allows the expansion
of ideas to fit the norm of the nation
in order to increase their power,
influence and profits.
 Focus on a group or organization
in order to grow economically or in
other aspects
 A multi-national corporation like
Johnson & Johnson maker of soap &
shampoos
 GROBALIZATION is the process
wherein nations, corporations etc.,
impose themselves on geographic
areas in order to gain profits (Ritzer
2007),
 like having a McDonald’s in a
meeting.
 Grobalization allows the expansion
of ideas to fit the norm of the nation
in order to increase their power,
influence and profits.
 HETEROGENEITY
 It is the creation of various cultural
practice, new economies, and
political groups because of the
interaction of elements from different
societies in the world.
 Results to differences in cultures in
the form of Cultural hybridization
which is the blending of elements
from different cultures.
 Ex. Glocalization as opposed to
cultural imperialism. Glocalization is
localizing or adapting a global trend
ex. K-pop while cultural imperialism
is extending or imposing one’s
culture to the other ex. all western
ideas or culture is good.
 GLOCALIZATION is the
interpretation of the global and the
local, resulting in unique outcomes
in different geographic areas. It sees
the taste or tract of mind of the
individual as an important asset.
 Economic commodification of
culture (diverse markets) and
“glocal” markets are happening
around the world
 Jihad (opposite of Mcworld):
political groups that are engaged
 tends to destroy at least parts of
B. DYNAMICS OF LOCAL AND
another culture and
GLOBAL CULTURE
b. Cultural IMPERIALISM vs
Dynamics - the forces or properties
DETERRITORIALIZATION –
which stimulate growth, development, or
difficult to tie culture to a specific
change within a system or process.
geographic origin
Perspectives on GLOBAL
Cultural Imperialism example:
CULTURAL FLOWS
American Western culture to Asian
  Cultural
Japanese & Philippine culture.
DIFFERENTIATION – cultures are
essentially different and are only Deterritorialization example: Korean
superficially affected by global flows K-pop – coming out somewhat
and are prone to ‘catastrophic original in adapting some western
collision’ in economic & political type of culture like in hair color,
conflicts. EX. Western vs Sinic / dress up and actions
Western vs Islamic that leads to
C. GLOBALIZATION OF RELIGION
bloody confrontations
 Globalization providing revival and
 Cultural HYBRIDIZATION –
resurgence of religion through
emphasizes the integration of local
internet, transportation and media
and global cultures which considers
technology
Globalization as a creative process
that gives rise to hybrid entities.  Have revived the importance of
religion/faith
 Cultural CONVERGENCE –
stresses homogeneity introduced by  Making religions more self-
globalization. Cultures are deemed conscious of themselves as being
radically altered by strong flows. that “world religion”
leads to
 Represents a challenged to
a. Cultural CONVERGENCE vs globalization’s hybriding effects

Cultural IMPERIALISM – when  Religion becoming an “anti-

one culture imposes itself on and rationalist”(Scholyer, 2005) being
against liberalism, consumerism and
 rationalism (scientism and
secularism)
 A Non-territorial touchstone of
identity and pride – promoted by its
practitioners to reach the level of
globality. Ex. Islamic Ummah
 Globalization also brought religions
to a circle of competition and
conflicts
 Westernization and Americanization
dominance to less developed
countries make religion related
cultures and identities take
defensive measures to protect
themselves.
 ISIS stands that globalization is rival,
and an alien force different from
Muslim realities because of negative
impact of western moral life.
 Challenge of Globalization to religion
leads to de-hybridizing effects that
leads to religious partitioning and
clashes
D, GLOBALIZATION AND
REGIONALIZATION
GLOBALIZATION – purpose …
 For the increased flows of goods,
services, capita, people and
information across boarders
(Jacoby, 2010)
REGIONALIZATION – pushed by
economic motivation
 REGION – a group of countries in
the same geographically
specified area (Mansfield, 1999)
with the process of social and
economic interaction (Hurrel,
2007).
 REGIONALISM – the formal
process of intergovernmental
collaboration between two or
more states (Ravenhill, 2008)
 Prefer regional partners over
the rest
 Respond to the states’ attempt
to reduce the perceived
negative effects of
globalization
 A sort of counter-globalization
like a “defensive reaction”
 Ex. ASEAN (1967), EU (1993),
MERCOSUR (1991), NAFTA
(1994)
 BUT LATER LED TO
DEVELOPMENT OF “INTER-
REGIONALISM”
 Became an indirect
encouragement to Globalization
 since it is part of it and builds on
it.
 Driving force is to be global.
 Enhanced bargaining power
against Trans National
Corporations (TNC’s) and
protection from global
competition
 TNC’s are non-state actors.
They are influential towards
regionalism which when at a
disadvantage will ask their
national governments to sign
similar trade agreements in order
to end their disadvantage
commercial situation
Lesson 3 – Background of
Globalization
ORIGINS – The point at which something
comes into existence or from which it
derives or is derived.
HISTORY – A chronological record of
events, as of the life or development of a
people or institution, often including an
explanation of or commentary on those
events.
URGES OF PEOPLE TOWARDS A
BETTER LIFE
 Commerce, religion, politics and
warfare can be connected to the
aspects of globalization
 Can be traced to history, trade,
missionary work, adventures and
conquest
5 ORIGINS OF GLOBALIZATION
After answering the question “What is
globalization?”, the next question “where did
it start” is not easy to answer because
different writers have different views about
it. There are views that globalization started
in the 15the century when colonization
started. Others would say that it started in
the 19th century at the advent of the
Industrial Revolution and advances in
transportation and communication. Then
there are groups who would say that true
economic and social globalization started
after World War II. However, let us look at
the five (5) different perspectives in the
origins of globalization.
1. HARDWIRED – due to man’s search
for better than basic human needs made
globalization possible (“scientific” history
would say ancestors travel from Africa
and after the ice age 50,000 years ago).
(Nayan Chanda, 2007) – a pattern of
behavior
2. CYCLES – for some it is a long-
term cyclical process. Other global
 ages have appeared. Globalization
will soon disappear and appear.
3. EPOCH – also called “waves” and
each has its own origin
the following are the sequential
occurrence of epoch
a. Globalization of Religion (4th
to 7th century)
b. European colonial conquest
(late 15th century)
c. Intra-European wars (late
18th to early 19th century)
d. Heyday of European
Imperialism (mid-19th to 1918)
e. Post-World War II period
f. Post-Cold War period
4. EVENTS – several points can be
treated as part of globalization
a. Genghis Khan conquest of
Europe in the 13th century
b. Christopher Columbus
discovery of America 1498
c. Ferdinand Magellan’s world
circumnavigation in 1522
d. Advances in transportation
19th Century
e. Advances in communication
Telephone 1956, TV 1962 and
founding of internet in
1988
f. Terrorist attack on the Twin
Towers, NY City 9-11-2001
5. BROADER, MORE RECENT
CHANGES – happened in the last
half of 20th century
a. Emergence of the United
States as the Global power after WW
II
b. Emergence of Multi-National
Corporations (MNC’s)
c. The demise of the Soviet
Union (USSR) and end of the Cold
War.
GLOBAL DEMOGRAPHY
1. DEMOGRAPHIC TRANSITION -
refers to the transition from high birth
and death rates to lower birth and death
rates as a country or region develops
from a pre-industrial to an industrialized
economic system. But the pace and
timing of the transition varied
considerably.
 a. Europe – transition started in
the mid or late 1700s. Death rates
and fertility began to decline.
High to low fertility happened 200
years in France and 100 years in
the United States.
b. In other parts of the world, like
in Asia the transition began later.
Madison (2001), indicates life
expectancy in India was only 24
years at the start of 20th century.
While in China same life expectancy
occurred in 1929 to 1931.
c. The baby boom after the
second world war during the
1950’s in the developing world was
caused by the decline of infant and
child mortality rates. While the baby
boom in the west resulted from rising
birth rates.
d. As per study of Shegeyuki et
al. (2002), “by 1820 the life
expectancy at birth of Japan and the
West as 12 years greater than that
of other countries. It increased by 20
years by 1900.
2. FERTILITY RATE – the ratio of
live births in an area to the
population of that area, expressed in
per 1000/year
a. During the 19th century, Europe
and the West had increasing share
in world’s population from 22% to
33%. While Asia and Oceania’s
share dropped from 69% to 56.7%.
This was due to the economic
stagnation and decline of India and
China during that time.
b. It was projected by the United
Nation that by 2150 Africa will
have a 20% share in world’s
population, which is greater than
the 7% in 1820 and 6% in 1900.
3. DEPENDENCY RATIO – is an
age population ratio of those not in
the labor force (dependents) and
those in the labor force
(independents). It is to measure the
pressure on the productive
population.
a. Japan and West has a low
dependency ratio of 0.5 going to
the 1950s.
b. The developing countries like
India and Philippines have higher
dependency ratio than the West
in the 1900. The decline in infant
and child mortality and high levels of
fertility made a great increase in their
dependency ration with its peak in
the 1970.
 c. Dependency ratios started to
disappear because there is
decline in global birth rate.
However the aging populations of the
West and Japan will cause a rise in their
dependency ratios.
GLOBAL MIGRATION
1. Refugees/Asylum seekers – are
vagabonds forced to flee their
homes to be on the move for safety
reasons.
2. Tourists – visitors from other
countries are on the move because
they want to be and can afford it.
3. Migrants – due to push (internal
situation from home countries like
political persecution, economic
depression, war and famine) and
pull (external opportunities in other
countries/areas favorable
immigration policies, labor shortage
and similarity in culture) factors
(Ritzer, 2015). The Global factor in
technology which facilitates easy
access to information exert a
significant influence to migration.
4. Illegal immigrants – live in the
margins of society
5. Labor migration – those who
migrate to find work is driven by
push factors like unemployment in
home countries; and pull factors due
to available work elsewhere. (Kritz,
2008). Face many restrictions like
loss of work for own citizens;
security and terrorism concern like
the civil war induced of Syrian
diaspora to Europe.
6. Diaspora – migrant communities
7. Virtual Diaspora – utilize
technology like internet to maintain
the community network
Globalization Lesson 4 – The Global
Economy part 1-A
Global Economy – is the economy of all
humans of the world, considered as the
international exchange of goods and
services that is expressed in monetary units
of account
Global Trade – also known as
international trade, is simply the import and
export of goods and services across
international boundaries.
Economic Globalization – refers to the
increasing interdependence of world
economies as a result of the growing scale
of cross-border trade of commodities and
services, flow of international capital, and
wide and rapid spread of technologies. It
reflects the continuing expansion and
mutual integration of market frontiers, and is
an irreversible trend for the economic
development in the whole world at the turn
of the millennium. (United Nations as cited
in Shangquan, 2000)
Sustainable Development – is the idea
that human societies must live and
meet their needs without
compromising the ability of future
generations to meet their own needs.
The “official” definition of
sustainable development was
developed for the first time in the
Brundtland Report in 1987.
Specifically, sustainable
development is a way of organizing
society so that it can exist in the long
term. This means taking into account
both the imperatives present and
those of the future, such as the
preservation of the environment and
natural resources or social and
economic equity.
MDG – Millenium Development Goals
adapted September, 2000 for the
eradication of extreme poverty by 2015
SDG – Sustainable Development Goals
a universal call to action to end
poverty, protect the planet and ensure
that all people enjoy peace and
prosperity by 2030.
Fair Trade –as defined by the Fair Trade
Association is the “concern for the
social, economic, and environmental
well-being of marginalized small
producers” (Downie, 2007, pp. C1-C5)
Introduction
 Extreme poverty the serious problem
around the globe.
 The United Nations (UN) adapted
the 8 MDGs for the eradication of
poverty and hunger
 Extreme poverty or absolute poverty
according to UN (2015) is a
condition characterized by severe
deprivation of basic human needs
including food, safe drinking water,
sanitation facilities, health, shelter,
education and information. UN
defines it as living on less than $1.25
a day.
 The UN (2015) reported that
836 million people still live in
extreme poverty down from 19
billion in year 2000.
 World Bank (WB) predicted that by
2030 the number of people living in
extreme poverty could drop to less
than 400 million with the assumption
that everything keeps on improving.
But lately, climate change pose a
threat to these improvements
in worldwide poverty.
 People who were lifted out of
extreme poverty are still poor with
same serious problems like disease,
 lack of water, income inequality and
lack of electricity.
 Even with the UN policies of access
to education, humanitarian aid and
other programs of International
Organization, extreme poverty is still
prevalent.
 Extreme poverty cannot be solved
only by direct aid but by national
economic growth through the
contribution of economic
globalization. The developing
economies experienced growth in
the interconnection of world
economies and free trade.
Economic Globalization
Two (2) types of economies as part of
economic globalization:
1. Protectionism – a policy of systematic
government intervention in foreign trade
with the objective of encouraging
domestic production. This
encouragement involves giving preferential
treatment to domestic producers and
discriminating against foreign competitors
(McAllese, 2007 as cited in Ritzer, 2015 p.
1169).
 Comes in the forms of import quotas
or limits and tariffs in the form of
duties and taxes
 Example a car cost of $10,000 in
Japan will be slapped by a $5,000
tariff will now cost $15,000 in the
importing country.
 Prevalent in the mercantilist era of
16th to 17th century up to the 19th
century Industrial Revolution
(Chorev, 2007)
 It was the peak of protectionism in
the Great Depression of 1929
 Even today countries like China,
Japan, and the United States are in
an economic battle using
protectionism as a weapon.
 2. Free Trade or Trade
Liberalization – international trade
left to its natural course without
tariffs, quotas, or other restrictions.
There has been a shift of world
economic policy from protectionism
to trade liberalization after lesson
learned from World War II.
 It was realized that more goods and
services move around the world with
Free Trade Agreements together
with the technological advances in
transportation and communication.
 From daily wearables, agricultural
products to innovations and ideas.
Effects of Economic Globalization
 Mobile phones are the single
most transformative technology in
the developing world according to
economist Jeffrey Sachs.
 Phones give access to banking and
payment systems; and education
and information. Farmers get
information and gets the best price
for the crops produced.
 Cell phone towers installation is a lot
cheaper than thousand kilometers
telephone lines installations.
 Leapfrogging – as called by
economist when countries can jump
to more efficient and cost effective
technologies that were not available
in the past.
 New opportunities were created by
International Trade for
businessmen to sell their products,
labor and services in a global market
place.
 Developing countries gain more
in the global economy at the
expense of other nations.
Developing countries thrives in
exports while other countries
became an import economy like
India, Japan and South Korea
became exporter of industrial goods
while the south east Asian nations
are importers of their goods.
 Fair Trade lessens inequities in
the global world.
 It aims for a more moral and
equitable global economic system
 Protection of workers and producers
 Equitable prices for agricultural
products
 Use of environment friendly and
sustainable production methods
 Creation of relationship between
agricultural producers of the south
and consumers in the North
 Engage in safe working environment
 Fair Trade products are coffee,
bananas, cotton, wine, tea and
chocolate
 An example of Fair Trade, in
2006, Starbucks and Dunkin donuts
spent 42% greater in the preceding
year for certified products. While
coffee growers in Brazil gain by at
least 4 cents in contract price of
$1.29 / lb of coffee beans compared
to the current market price of $1.25.
Globalization Lesson 5 – The
Global Economy Part 1-B
Sustainability – the degree to which the
earth’s resources can be used for our
needs, even in the future.
Sustainable Development – the
development of the world today by using the
earth’s resources and the preservation of
such sources for the future
Efficiency – the quickest possible way of
producing large amounts of a particular
product during the Industrial Revolution
Neoliberalism or neo-liberalism is the Ronald Reagan in the
20th-century resurgence of 19th-century United States.
ideas associated with economic liberalism  There are many criticisms
and free market capitalism. of neoliberalism, including
its tendency to endanger
 It is a policy model that
democracy, workers’
encompasses both politics
rights, and sovereign
and economics and seeks
nations’ right to self-
to transfer the control of
determination.
economic factors from the
 Carbon neutral – making
public sector to the private
no net release of carbon
sector. Many neoliberalism
dioxide to the atmosphere,
policies enhance the
especially through offsetting
workings of free market
emissions by planting trees.
capitalism and attempt to
 Geoengineering – the
place limits on government
deliberate large-scale
spending, government
manipulation of an
regulation, and public
environmental process that
ownership. (Government
affects the earth's climate, in
deregulation policies)
an attempt to counteract the
 The policies of
effects of global warming.
neoliberalism typically
 Food Security – delivering
supports fiscal austerity,
sufficient food to the entire
deregulation, free trade,
world population
privatization, and a
reduction in government Economic Globalization and
spending in social Sustainable Development
programs.
 Neoliberalism is often Introduction
associated with the
 Positive Effects of Global
economic policies of
Trade – continuous
Margaret Thatcher in the
consumption of the world’s
United Kingdom and
natural resources such as
water and crude oil enable
 humanity to discover and
innovate many things
 Utilize energy, discover new
technologies, and make
advancements in
transportation and
communication
 Negative Effects of Global
Trade – lack of sustainability
and development put the
environment at a
disadvantage
 Ex. Climate change
accelerated and global
inequality was not eradicated
 Development has to be
ensured in today’s world and
as well as for the future
generations
 Sustainable Development
seeks to form and initiate
programs in the middle path
between economic growth
and sustainable environment
(Borghesi and Vercelli, 2008)
 The relationship between
globalization and
sustainability is multi-
dimensional – it involves
economic, political and
technological aspects
 Development is beneficial at
one hand but entails cost on
the other
Effects of Economic Globalization
 Environmental Degradation
 Economic development
was speed up by the
Industrial Revolution.
 Industrial Revolution induced
the cycle of efficiency
 First there is efficiency in
producing a particular
product
 This process made buying of
goods easier for the people
 Then there is increased in
demand
 It will result to an increased
efficiency
 Increased efficiency will
harm the environment in
many ways
 Carbon emissions from
factories harm the earth’s
atmosphere
 As waste is thrown in to the
sea results to destruction of
coral reefs and multi-diversity
 Deforestation, pollution and
climate change will not adjust
for the world even when
increases in living standards
lead people to demand more
consumer goods like cars,
meat and smartphones.
 Impact of Free Trade in
the Environment
 Debate of neoliberals vs
environmentalists over the
impact of free trade on the
environment.
 Environmentalists argue
that environmental issues
should be given priority over
economic issues (Antonio,
2007).
 Free Trade causes
expansion of manufacturing
which leads to environmental
damage.
 Neoliberals sees
environmentalists as serious
impediments to trade.
 Yearley (2007) indicates in
the ecological modernization
theory sees globalization as
a process that can both
protect and enhance the
environment
 Arguments on
Environmental programs
 Climate change solutions
faces strong resistance on
the part of governments and
corporations
 Failure of the Kyoto Protocol
aimed at reducing global
carbon emissions due to
non-ratification of United
States which is one of the
biggest pollutant producer.
 However, the trust is built up
in corporate policies dealing
with environmental problems.
 Measures to address
environmental problems
 Implementing policies such
as the carbon tax and carbon
neutrality measures
 Alternative to fossil fuels like
ethanol produce lower
emissions. However it has
its own set of problems like
increase in price of corn and
extraction including transport
contribute significantly to
total emissions
 Technological fixes does
not deal with the causes of
global warming but tries to fix
it effects like geoengineering.
 Experience indicates that a
global view of the problem is
required and not focusing on
specific regions, like Europe
overlooks impacts in other
regions
 Food Security
 The demand for food will be 60%
greater than it is today and the
challenge of food security requires
 the world to feed 9 billion people by  rapid decline of usable
2050 (Breene, 2016) farmland
 A priority of all countries  consumption of “virtual
 Includes sustainability of society water” -  is
such as population growth, climate the water embodied in the
change, water scarcity and production of food and fiber
agriculture. and non-food commodities,
 Case of India regarding food security including energy. For
problems example, it requires about
 India is the biggest producer of fruits 1300 tons (cubic meters)
and vegetables in the world with of water to produce a ton of
47% of its workforce is in agriculture wheat and 16000 tons (cubic
which accounts for 18% of the meters) of water to produce
economy’s output a ton of beef.
 Still 194 million are undernourished  Pollution through toxic
according to Food and Agriculture chemicals has had a long-
Organization (FAO) of the United term impact on the
Nations. environment.
 It is estimated that 15.2% of India is
too malnourished to lead a normal
life
 A third of the malnourished children
live in India
 The challenges to food
security can be traced to the
environmental problems like
 destruction of natural
habitats in deforestation;
 industrial fishing cause
destruction of marine life,
biodiverstiy and ecosystems;
and
   Lead to creation of “climate
 The global flow
 refugees, people who are
of dangerous forced to migrate due to lack

debris with of access to water or due to

electronic waste flooding (Ritzer, 2015)

often dumped in  Use of Persistent Organic

developing Pollutants (POPs) led to

countries industrial pollution

 Results are:  Greenhouse effect – gases

that trap sunlight and heat in
 Decline in the
 the atmosphere leads to
availability of
 global warming and melting
fresh water
 of glacial ice can cause
supply because
 substantial flooding,
of soil reduction of alkalinity

degradation or destruction of ecosystems

desertification.  Global warming poses a

threat to the global supply of
The global flow of dangerous
food and human health
debris with electronic waste
often dumped in developing  Intensified ecological

countries problems due to

 Results are:
 Decline in the availability of
fresh water supply because
of soil degradation or
desertification.
 A previously public good
became a private commodity.
 The poorest area of the world
experience a
disproportionate share of
water related problems.
population growth and
increase consumption
 Models and Agenda to address
the issue of global food
security
 The United Nations
seventeen (17) Sustainable
Development Goals has set
ending hunger, achieving
food security, improved
nutrition and promoting
 sustainable agriculture for
the year 2030.
 The World Economic Forum
(2010) addressed the issue
through the New Vision for
agriculture (NVA) in 2009
wherein public-private
partnerships were
established.
 It has mobilized over
10billion that reached
smallholder farmers.
 The Forum’s initiatives were
launched to establish
cooperation and encourage
exchange of knowledge
among farmers, government,
civil society, and the private
sector in both regional and
national levels (Breen,
2016).
Globalization Lesson 6 –
The Global Economy Part 2-
A
Topic: Economic
Globalization, Poverty, and
Inequality
Multiplier Effect – means an increase in
one economic activity can lead to an
increase in other economic activities.
Example is investment leads to business
means more jobs and more income.
Wealth – wealth refers to the net worth of a
country. That is the assets of a nation
(natural, physical and human) less the
liabilities.
Wealth Inequality – speaks about
(unequal) distribution of assets. However,
there is no widely recognized monetary
measure that sums up these assets
(Economist, 2012)
Income – is the new earnings that is
constantly being added to the pile of a
country’s wealth
Income Inequality – means that new
earnings are (unequally) distributed. It
values the flow of goods and services, not a
stock of assets (Economist, 2012)
Gross Domestic Product GDP –
measures the total output of a country
Gross National Income GNI -
measures GDP per capita or GDP/total
population
Global City – also called a power city,
world city, alpha city or world center, is a
city which is a primary node in the global
economic network. It is important to the
operation of the global system of finance
and trade.
Introduction
  Eco  Companies are searching
 Corporations
nomi worldwide for the cheapest
and
c materials, labor, and
stockholders
countries with weakest
earn more
regulations (pro-business)
profits
 The process creates winners:
 Consumers get
 Example are the Business
their products at
Process Outsourcing BPOs
a cheaper price
in the Philippines. Call center
 Jobs and
agents get above average
additional
salaries here but is only a
income for GNP
fraction of the true wage in
for the host
the developed countries.
countries
 The process also creates
 Some jobs pay
losers:
above average
 High wageworkers
wages in the
losing their jobs as
developing
operations are shifted
countries
outside the country of
because of the
origin
exchange rate
 Low wage foreign
and standard of
workers in hazardous
living factors
working conditions
globalization has helped millions of
 Investments creates multiplier effect
people get out of extreme poverty
 Bangladesh thrives in the apparel
but the challenge of the future is to
and sweatshops business alone for
lift up the poor while at the same
the European market. It is what
time keep the planet livable.
keeps their economy afloat even
 Earning the biggest profit margin
with subsisting wages only.
push companies trying to
(Krugman, as cited in the New York
outmaneuver their competitors which
times, 2013)
resulted to economic and trade
 Opponents of economic
globalization.
globalization called the outsourcing
of jobs as exploitation and
  No minimum wage
 A few
Participation in
laws
developing
the economy by
 No regulations on
countries
the poor incalls
safe working
for protectionist
extreme poverty
conditions and
policies like
through micro
environment
higher tariffs,
credit
protection
 limitations
Micro crediton
 Anti-child labor laws
outsourcing
started in are not strictly
and demandin
Bangladesh enforced
for higher
2006 by Professor
 First, The International
wages.
Muhammad
community promotes
 Instances
Yunus who won
public awareness to exert
where
him a Nobel
workers
pressure to take steps to
would not
Peace Prize.
be
protect workers like the
 mistreated
The in
borrowers US issue an annual list of
the absence
who of
are mostly goods produced by child
regulations:
female, often labor or force labor. Any
used the money company will be
to fund plans or confounded by the public
small business officials and the media if
that could raise they are buying from that
their income list.
oppression, a form of economic
 Second, pro-globalization
colonialism that puts profits before
insist on the multiplier
welfare of the people.
effect as developing
 The root of the problems is
economies grow, there
that foreign companies do
more opportunities for
not have to follow their own
workers which leads to
rules they do in the
more competition for labor
developed countries.
and higher wages.
 Conditions in the developing
 It spread to developing
countries:
countries with private
lenders, governments, and
 nonprofit organizations joined distributed equally as reported by
to loan billions of dollars to Global Wealth Report 2016 by Credit
the world’s most Suisse Research Institute
disadvantaged.  While the bottom half collectively
 Participation means doing own less than 1 percent of total
business in their own terms wealth, the wealthiest top 10 percent
and conditions that turns own 89 percent of all global assets
their creativity into (Credit Suisse, 2016)
sustainable income.  The US and Japan were able to
 The way people have emerged from increase their wealth while the UK
extreme poverty in the last 25 years suffered a decline due to currency
have jobs, wages and working depreciation.
conditions that would be unaccepted  Causes of Global Income
in the developed countries. Inequality
 Economist says that it is still a work  “Economic Big Bang”
in progress that is very hard to theory made by the Industrial
achieve. Revolution as written by
Milanovic (2011) an
economist who specializes in
global inequality.
 The explosion of
Global Income Inequality
industry and modern
 Global income inequality is technology created
synonymous with global economic the economic gap
inequality. Nations are divided wherein nations are
between north and south, developed developed-rich and
and less developed, and core and others are
the periphery. developing-poor
 Gross Domestic Product GDP is  Back in 1820 Great
usually used to measure income in Britain and
global economic inequality Netherlands are only
 Global wealth is estimated to be 3x richer than India
about 3.5 trillion dollars and is not and China, but today
 (Millanovic, 2011) the
ratio is 100:1
Origins of Global Stratifications
 Economic Globalization and
International Trade are the
forces responsible in the
present global income
inequality.
 Only improved living
standards for billions
(of people) while
concentrating billions
(of dollars) among the
few (OECD)
 The poor are doing a
little better and the
rich are becoming
richer
 Access to technology
complemented skilled
workers but replaced
many unskilled workers.
 Skill based technological
change gave educated and
more skilled workers to
thrived by receiving higher
wages while unskilled
workers fall behind.
 Manufacturing jobs that
require low skills are moved
overseas
 Result is widening gap
between the rich and the
poor and between high
skilled and unskilled workers
The Third World and Global South
 First World or Third World
countries
 Began in the Cold War 1947-
1991 (after WW2 until the fall
of communist Russia) in
three distinct economic and
political blocs called First
World, Second World and the
Third World (Tomlinson,
2003)
 Western capitalist countries
(US and European western
bloc) were labeled as the
First World while the Soviet
Union and its allies
(European eastern bloc)
were labeled as the Second
World. Everyone else are
grouped into the Third World
who are non-aligned
countries neither to the US or
to the Soviet Union.
 After the cold war ended, the
Second World category
ended with it while the term
First World and Third World
remained
 The First World became
synonymous with the rich
industrialized countries while
the Third World was
 identified with impoverished  The wealthy Global North are
states. First World countries like US,
 Use of Gross National Product Canada, western Europe and
GDP and Gross National Income developed parts of Asia

GNI  The poor Global South are

 Use of the terms First World Third World countries which

and Third World are outdated includes Asia (with the

and inaccurate. The more exception of Japan, Hong

than 100 countries which Kong, Macau, Singapore,

belong to the Third World South Korea and Taiwan),

have different level of Central America, South

economic stability. Some are America, Mexico, Africa, and

lumping, relatively poor and the Middle East (with the

some are not. exception of Israel).

 They are located south
 Nowadays, GDP and GNI
of 30 degrees north
are used by social scientists
latitude
to sort countries based on
 They share common
their specific levels of
economic and
economic productivity.
political problems and
 Use of Global North and Global
issues
South  A way for countries in
 Reuveny & Thompson, 2007, the South to make a
made a new and simpler stand about common
classification. issues, problems and
 Points largely to racial even causes in order
inequality between the Black to have equality all
or colored and the White throughout the world.
 Whites are dominant in the  The
North while Blacks or colored differences
are primarily in the South Global North
“have always possessed a and Global
racial character” (Winant, South are
2001) shaped by
 south to north
migration and
globalization.
 Effects of Globalization which gave
rise to rural-urban differentiation
Global Flows
 The movement of goods and
services, finance, and people
 Creating new degrees of
connectedness among
economies—and playing an
ever-larger role in
determining the fate of
nations, companies, and
individuals.
 To be unconnected is to fall
behind.
 A common thread in
economic growth for
centuries, since the days of
the Silk Road, through the
mercantilist and colonial
periods and the Industrial
Revolution.
The Global City
 An urban centre that enjoys
significant competitive
advantages and that serves
as a hub within a globalized
economic system.
 Three urban centers of New
York, London, and Tokyo as
control over the world’s
political economic centers
that exert economy. (Sassen,
1991)
 Altered North-South
relations in Agriculture due
to the rise of global
agribusiness and factory
farms.
 South produces non-
traditional products for
export and become
dependent on
industrialized food
exports from the North
 Led to the replacement of
staple diet as well as the
displacement of local
farmers.
 The relations of social
production are also altered
due to commercial
agriculture which replaces
local provisioning.
 Rural economies are
exposed to low
prices of agricultural
products which led to
mass migration of
agricultural workers
to urban cities for
work.
 Pros and Cons of urban centers or
global cities
 Major beneficiaries of
globalization
 Most severely affected by
distinct political problems
 They have to deal locally
with loaded internal political
problems and global
problems. Ex. New York
city as an international
transport hub in east of
America suffered a great
blow due to covid-19
pandemic in the rise of
deaths and confirmed cases
in local population and
globally suffering a
downward trend in stocks,
financial and commercial
exchange operations.
 Globalization Lesson 7
– The Global Economy
Part 2-B
 Topic: Theories of
Global Stratification
Global stratification
compares the wealth, economic
stability, status, and power of
countries across the world. It
highlights worldwide patterns of
social inequality.
Dependency theory attempts
to explain the present
underdeveloped state of many
nations in the world by
examining the patterns of
interactions among nations and
by arguing that inequality among
nations is an intrinsic part of
those interactions.
Core nations – industrialized
countries who receive the
majority of the world’s wealth.
Peripheral nations – countries that are
less developed and receive unequal
distribution of the world’s wealth.
Global Stratification Theories –
explained why some parts of the world
develop economically faster than others.
Theory No. 1 – Modernization Theory
 Global stratification is influenced
by technological and cultural
differences between nations.
Brought about by two worldwide
historical events:
 Columbian Exchange –
named after Christopher
Columbus discovery of
America in the 15th century
(October 10, 1492) caused
the spread of goods,
technology, education and
 diseases between America
and Europe.
Positive effect for the
Europeans:
 The exchange
benefitted the
Europeans with
agricultural imports
like potatoes and
tomatoes which  Industrial Revolution (IR) –
contributed to
population growth
 Provided
opportunities for trade
growth
 Strengthen the power
of the merchant class
 IR initially benefitted the
Negative effect for native
Americans
 Later the standards of living
 Diseases brought
from Europe ravaged
the population.
 About 20% - 50% died
from small pox,
measles, influenza,
etc. in different Indian
tribes about 150 years
after Columbus first
trip.
 The beliefs and
behavior of the
Spanish
conquistadors and of
the Aztecs,
adversaries in a clash
of cultures that
resulted in the near
extermination of
Mesoamerica's Indian
population (Conquest
of America, Todorov
T., 1999)
First IR in the 18th and 19th
century where mechanical
production with the help of
steam power allowed for
replacement of human labor
with machines to increase
productivity.
wealthy in western countries
in these countries saw
massive improvements but
not after these countries
went through labor, health
and social problems.
 The Industrial
Revolution began in
England in the late
18th century, and
spread during the
19th century to
Belgium, Germany,
Northern France, the
 United States, and
Japan.
 IR enhanced and/or
led to colonization of
other countries.
 Countries that did not
industrialize lag
behind.
 Modernization theory move on the
idea that growth could be attained by
anyone depending on the
2nd – Take-off Stage:
willingness to adopt new
technologies and new social
systems that often accompany them.
 Modernization theory present that
differences in acceptance of change
between traditional family systems
and production methods vs
technological advancement is the
biggest barrier to an affluent society.
 The sociologist Max Weber
propose the idea of progress
3rd – Drive to Technological Maturity:
oriented way of life of the Protestant
work ethics as a sign of personal
virtue led to the success of IR in
Europe.
 The philosophical idea of
individualism replacing
communalism is the breeding
ground for modernization.
Walt Rostow’s Four (4) Stages of
Modernization in the West
1st – Traditional Stage:
 Examples are Feudal Europe or
early Chinese dynasties with
production mostly food being done in
societies that are structured around
small local communities done in
family setting with limited resources
and technology which creates a strict
social hierarchy.
 The production methods were
passed on to different generations.
 When people begin to move beyond
doing things traditionally.
 Development of individual talents led
to innovations to produce things
beyond the necessities which
created new markets for trade.
 Takes hold of more individualism
with material wealth as a sign of
social status.
 More diverse job opportunities
resulted in technological growth of
the earlier periods.
 Led to population growth with
reductions in absolute poverty levels.
 Countries in this stage pushed for
social and economic changes like
public basic education and moving
from monarchial to democratic
political systems.
4th – High Mass Consumption: against slavery, natural resource
depletion or massive pollution.
 The economy of the country is large
 Supporters of Rostow’s theory are
enough to produce more about
called Eurocentric putting emphasis
wants than needs.
on economic growth and progress
 Social support system in the form of
putting aside the effects of
basic necessities are accessible by
environmental damage of
the population guaranteed by the
industrialization and exploitation of
governments.
cheap, child or free labor.
Arguments for Modernization Theory  Modernization theory put the blame
to the victims – the poor countries –
 Capital investments in better for not willing to accept changes.
technology will raise production, Putting fault on their cultural values
consumption, wealth and overall and traditions rather than
social condition. acknowledging that outside forces
 Rich countries can help growing might be holding back those
countries through export of countries.
technology and machines in
agriculture, information technology Theory No. 2 – Dependency
and extend foreign trade. Theory and the Latin American
Experience
Critics of Modernization Theory
Dependency Theory was initially
 Just a new name for the idea that a
developed by Hans Singer and Raul
country would develop through
Prebisch in the 1950’s and has made some
capitalism.
improvements since then. In this view,
 A lot of countries still lag behind
Global Stratification starts with colonialism.
even after technology has improved
around the world.  Beginning in the 15th century,
 Economies of industrialized Europeans claiming lands by
countries like the United States and exploration throughout America,
United Kingdom grew to global Africa and Asia. Early on, the British
strength took advantage of the Empire colonized about one-fourth
period when there were no laws of the world. When the United
States rose to power from just a

 Trade protectionism
through import
substitution is the key to
self-sustaining path to
development, not liberal
trade or export.
 Poor countries have been
wronged by richer
nations. Those riches
came at the expense of
other countries being
poor due to colonialism.
trade died down in the mid-19th
century.
 Colonization continued from 1870’s
when only 10% of Africa was
western controlled. By 1940, only
Ethiopia and Liberia were not under
foreign control.
 Most colonies were granted
independence by 1960’s. With Hong
Kong, the last British colony in Asia
to be granted independence in 1997.
Development of Dependency Theory

former British colony influenced and

A. Arguments in the pursuit of
colonized North America, Haiti,
Dependency Theory
Puerto Rico, Guam, Philippines,
 Sanchez, 2014, a Latin American
Hawaii, parts of Panama and Cuba.
scholar was critical of the argument
 Both natural and human resources
by the West that the reasons why
were exploited in the rise of
many countries are not developing
colonialism.
after World War 2 because those
 US and European countries took
countries did not follow the right
control of land and raw materials to
economic policies or due to
funnel wealth back to the West.
totalitarian and corrupt governments.
 Slave trade followed a triangular
 Sanchez was also intrigued by the
route from Africa to Caribbean
South (Latin) America’s
colonies to America and Europe.
underdevelopment.
 Slaves were to produce cotton and
 Dependency as defined by Cardoso
tobacco which were sent back to
and Felato, 1979, is the
Europe.
development of the nation-states of
 Guns and factory made goods were
the South contributed to decline in
sent to Africa in exchange for slaves.
their independence and to an
 Focus on exploitation of natural
increase in economic development
resources were made when slave
of the countries of the North.
 Toye, 2003, argues that liberal trade
causes greater impoverishment, not
economic improvement to less
developed countries.
 “Even after de-colonization, there
are still important ties between the
 Cycle of Dependency
Theory
developed and less developed
counties, which mainly consist in the
exploitation of peripheral natural
resources and workforce by the
center” (Anton, 2006)
 Dependency describes the extent of
economic and political development
of poor countries as influenced by an
attachment favoring the developed
countries.
 There is still the possibility of the
nature of dependent countries can
change in the future with the
increase participation of businesses,
technocrats, military and the middle
class in the local economic and
political interests in the industrialized
world.
According to dependency theory,
underdevelopment is mainly caused by
the peripheral position of affected
countries in the world economy.
Typically, underdeveloped countries
offer cheap labour and raw materials on
the world market. These resources are
sold to advanced economies, which
have the means to transform them into
finished goods. Underdeveloped
countries end up purchasing the finished
products at high prices, depleting the
capital they might otherwise devote to
upgrading their own productive capacity.
The result is a vicious cycle that
perpetuates the division of the world
economy between a rich core and a
poor periphery.
A. The two (2) main sub-theories
of Dependency Theory
1. North American Neo-
Marxist approach
 Andre Gunder Frank (1971)
argues that developing nations have
failed to develop not because of
‘internal barriers to development’ as
modernization theorists argue, but
because the developed West has
systematically underdeveloped
them, keeping them in a state of
dependency (hence ‘dependency
theory’.)
 Writing in the late 1960s, Frank
argued that the developed nations
had a vested interest in keeping
poor countries in a state of
underdevelopment so they could
continue to benefit from their
economic weakness – desperate
countries are prepared to sell raw
 materials for a cheaper price, and
the workers will work for less than
people in more economically
powerful countries. According to
Frank, developed nations actually
fear the development of poorer
countries because their development
threatens the dominance and
prosperity of the West.
2. Structuralist Approach
Structuralism is a general theory of
culture and methodology that implies
that elements of human culture must be
understood by way of their relationship
to a broader system.
 In the contemporary world,
structuralism states the economic
and political system of a country can
function in connection with the world
Critics of Dependency
productive structure.
Theory
 The Core or rich countries as buyer
of raw materials and the peripheral
or poor countries as buyer of finish
products at a higher price.
 Poor countries too much reliance on
exports of primary commodities (raw
materials)
 Raw materials are affected by
fluctuating prices in the short run
and downward trend of value in the
long run
 To negate the negative effects of
exports of primary commodities
through:
 Diversification of exports and
accelerate industrialization
by import substitution.
 Imposition of high tariffs to
reduce dependence on
imports which only develops
the North or US and Canada.
B. The Modern World-System
Model – The capitalist world
economy as called by American
sociologist Immanuel Wallerstein
 Higher income nations in the West
are the “core” countries as the
manufacturing base of the world
where technology and wealth are
focused.
 M
i
d
dle Income countries are the “semi-
periphery” is generally industrialized.
They contribute to the manufacturing
and exportation of a variety of
goods. They are marked by above
average land mass, as exemplified
by Argentina, China, India, Brazil,
Mexico, Indonesia, and Iran.
(Wikipedia.org)
 Low income countries are the
“periphery” whose natural resources
and labor support the wealthier
 countries first as colonies and still
under neocolonialism. Economically
dependent to wealthier countries.
 Core, semi-periphery and periphery
nations tend to support each other in
terms of trade.
 The world economy is not a zero
sum game, that is, as one country
gets richer the other country gets
poorer
 The economy of other countries will
improve with the spread of
technological growth and
innovations from richer countries
 Although colonialism left its
footprints, it is not all to blame for the
economic differences today. A poor
country like Ethiopia was never
colonized and has little contact with
richer nations. Singapore and Sri
Lanka are examples of countries
who are former colonies but now
have thriving economies.
 Foreign investments do not hurt
poorer countries opposing the
prediction of the Dependency
Theory.
 Proponents of Dependency Theory
is wanting by blaming the capitalist
market system as the sole cause of
stratification. They disregarded
Globalization Lesson 8 – Market
how culture and political regimes
Integration
affected poverty-stricken countries.
 Supporters of Dependency Theory
subscribing for global socialism
which push poor countries to end
all association with rich nations do
not accept the ideas of
interdependency of modern world
economy which makes their
statements not applicable for
solutions to the problem of global
poverty.
Continuing discussions in
Economic Globalization
 There are rising trade among
countries, however, the trade
agreements like the North
American Free Trade Agreements
(NAFTA) had rose to a dispute
between positive gains in free trade
against the high jobless rate in the
countries involve.
 Inquiries on how to go about global
stratification is not yet over. Yet
there are positive developments
with the expansion of world trade in
the 3x increase in the standards of
living among the poorest countries
as evidenced by 50% decrease in
people living in poverty threshold of
$25/day since 1981 from 52% to
22%.
 Topic: Role of Gross Domestic
Product GDP, Factors of Production
and Economic Systems in Global
Economy is the large set of inter-related
production and consumption activities that
aid in determining how scarce resources are
allocated.
Gross Domestic Product (GDP) is the
monetary value of all finished goods and
services made within a country during a
specific period.
Market Integration.
Market Integration - a situation in
which separate markets for the same
product become one single market, for
example when an import tax in one of
the markets is removed.
Economic integration is an arrangement
among nations that typically includes the
reduction or elimination of trade barriers and
the coordination of monetary and fiscal
policies. Economic integration aims to
reduce costs for both consumers and
producers and to increase trade between
the countries involved in the agreement.
Economic integration is sometimes
referred to as regional integration as it often
occurs among neighboring nations.
Factors of production are the inputs
needed for the creation of a good or
service. The factors of production
include land, labor, entrepreneurship,
and capital.
Economic System is a means by which
societies or governments organize and
distribute available resources, services, and
goods across a geographic region or
country. Economic systems regulate factors
of production, including capital, labor,
physical resources, and entrepreneurs. An
economic system encompasses many
institutions, agencies, and other entities.
The Economy
 It is the social institution that has
one of the biggest impact on the
society.
 The economy in terms of
numbers are seen and valued in
GDP, unemployment, inflation,
stock markets and others.
Economic Sector - A division of a
country's population based upon the
economic area in which that population
is employed. Many economists
recognize the following five economic
sectors; the primary sector which
includes agriculture, mining and other
natural resource industries; the
secondary sector covering
manufacturing, engineering and
construction; a tertiary sector for the
 service industries, the quaternary
sector for intellectual activities
involving education and research and
the quinary sector reserved for high
level decision makers in government
and industry
 However, highest consideration
must be addressed to the people
living in the economy not only in
terms of numerical values but also in
social and economic equity.
 As such these people in the
economy devised and planned
economic systems applicable in the
production, consumption and trade
of goods in the society.
 These economic systems formed
through economic and social
revolutions configured the way
people live their lives.
Economic Systems
 1. Traditional economic system
The traditional economic system is
based on goods, services, and
work, all of which follow certain
established trends. It relies a lot on
people, and there is very little
division of labor or specialization. In
essence, the traditional economy is
very basic and the most ancient of
the four types. Lacks the potential
to generate a surplus.
 2. Command economic system
In a command system, there is a
dominant, centralized authority –
usually the government – that
controls a significant portion of the
economic structure. Also known as
a planned system, the command
economic system is common in
communist societies since
production decisions are the
preserve of the government.
Command economies are rigid as
they cannot quickly adopt to
changes.
 3. Market economic system
Market economic systems are
based on the concept of free
markets. In other words, there is
very little government interference.
The government exercises little
control over resources, and it does
not interfere with important
segments of the economy. Instead,
regulation comes from the people
and the relationship between supply
and demand. Growth is higher
under the market economic system.
 4. Mixed system

 Many countries in the West follow a
mixed system. Most industries are
private, while the rest, comprised
primarily of public services, are
under the control of the
government. Mixed systems are
the norm globally. Practically
speaking, mixed economies face
the challenge of finding the right
balance between free markets and
government control. Governments
tend to exert much more control
than is necessary
CONTEMPORARY
1. ________ is the imperialistic
ambitions of nations, corporations and
organizations. Glocalization.
2. Syrians migrated to European
countries individually and by families
crossing the sea by boat, then by truck
or train which cause some to die by
drowning, suffocation and sickness. This
migration is caused by: Push factors
such as economic depression.
3. The need to make our lives better
led the early ancestors in Africa to walk
out from the said comment. Hardwired
4. The creation of various cultural
practice, new economics and political
groups. Heterogeneity
5. Political influence of people or
group growing in today’s societies.
Mcworld
 Mixed systems combine the
characteristics of the market and
command economic systems. For
this reason, mixed systems are also
known as dual systems.
6. The metaphor that could best
describe globalization is Hybridization
7. Diaspora has been used to
describe migrant communities. It was
also conceptualized as a transnational
process which involves “virtual
diasporas” which utilize the internet to
maintain the community network.
Globalization expansion increase
diaspora.
8. There has been an increasing
trend in population growth that by 2150
there will be 2 billion more than it is
today…..Rise in dependency ratio affected by global flows is called
starting in the west. Cultural Differentiation

9. “Actual” globalization began 15. Four Regional groups that was

during the colonial age of 15th to 17th formed as a response to Globalization.
century when different countries from ASEAN, EU, NAFTA, AND MERCOSUR
Europe made their voyages across the
16. The social relationships and
globe…..Encomienda, slavery, force
objects remained where they were
conversion and Manila-Acapulco trade.
created. Solid
10. The formal process of
17. Unauthorized intrusion into
intergovernmental collaboration
computer programs to promote a cause.
between 2 or more states is called
Hacktivists.
regionalization.
18. Regionalization of the world
11. Religion made use of information
system and economic activity
technologies, transportation means and
undermines the potential benefits
the media are deemed important in
coming out from a regional global
spreading globally…..Spread and
economy.
scattered on a global scale.
19. Globalization is a universal
12. There are several perspectives
exchange or communication of goods,
when it comes to origins and history of
services, cultures, people, information
civilizations. However, epoch as one of
etc. Across boarders and into your won
the perspectives started with the
territory.
globalization of religion….. Post Cold
War Period 20. By entering into regional
organizations, ASEAN member states
13. A given culture influences other
may regain some control over flows of
cultures. Cultural Imperialism
capital and enhance their bargaining
14. Cultures that are essentially power against investment groups and
different and are only superficially transnational corporations (TNC’s). This
drive is considered an ______ to  Market Integration is an integral
regionalize. Economic Motivation part of Economic Integration.
 Different products of countries are

Role of GDP
put into place in a single (regional)
 GDP estimates are used to market as exemplified by the European
determine the economic Union (EU).
performance of a whole country,
 Conditions for Market Integration
and to make international
 Similar existing economic
comparisons. Businesses can also
systems such as the mixed
use GDP as a guide to decide how
system among EU member
best to expand or contract their
countries.
production and other business
 Free trade among member
activities. And investors even watch
countries
GDP since it provides a framework
 Allowing labor migration
for investment decision-making.
between member countries
For example, the United States had
 Investments are allowed
a GDP of about $19.4 trillion in
anywhere among member
2017.
countries
 GDP is not a complete measure of
 Social benefits are
economic activity. Since it only
comparable among member
represents the final output or value-
countries
added at each stage of production,
it fails to account for the total output
or total sales along the entire
production process. One of the
biggest drawbacks of using GDP is
that it tells us little about our overall
or individual economic welfare.

Continuing Discussion on Market

Integration