Module 1 - ORGANIZATION/STRUCTURE OF

GLOBALIZATION
          This module aims to manifest the phenomenon of globalization. It tells that the
daily press is filled with reminders of how the world organizations have taken on a
global focus. International and national news reports frequently mention such matters as
international trade, foreign exchange rates, losers and gainers in the stock market,
currency fluctuations and oil price hike. This shows that the world is no longer isolated
as everybody is a participant in all these global activities.

 At the end of the module, the students are able to:

1. Define and explain what is globalization

2. Analyze the interrelated factors of globalization
3. Interpret how governments influence competitiveness
4. Explain why globalization is uneven based on the three ranking standards.

Lesson 1- Module 1

1. Definitions of Globalization

     a. In the academe under the new General Education Curriculum, the best scholarly definition
of globalization is provided by Manfred Steger (2014, p. 184). He described globalization
as “the expansion and intensification of social relations and consciousness across world-time
and across world-space. The first key word expansion may refer to the creation of the
international marketplace including the international cultural environment where education,
social institutions, material elements are connected and occur at different levels. On the other
hand, intensification refers to the expansion, stretching and acceleration of the networks of the
former.
 

       b.  In another view, globalization is defined as the process through which an increasingly
flow of ideas, people, goods and services, technology and capital leads to the integration of
economics and societies at a speed unprecedented in effect and outcomes (as cited by Danug &
Campanilla, 2004, p.81).
 

       c. Anthropologist Arjun Appadurai (1996) argues that there are multiple globalizations and
it depends on what is being globalized. It could be an idea, material, and nonmaterial culture.
The globalization system  which is aptly called the digital age has something to do with the
context, character, content and conduct of power and shaped up with the changing configuration
of power of the individuals, group of the individuals, associations, corporations, institutions and
the nation-state (Danug & Campanilla , p.83)
 
      d. In the context of economics, it is defined as the recognition by organizations that business
must have a global, not local focus. It refers to a new perspective or attitude about relationships
with other people in other nations. Economically, it also refers to the unprecedented scope,
shape, number and complexity of business relationship conducted across international
boundaries. The phenomenon of globalization according to Stoner et al. (1995) as cited by
Abelos, et al. (2016) consists of three interrelated factors – proximity, location and attitude.
     

1. 2.    The Interrelated Factors as Discussed in the Three Facets of

Globalization

Proximity

      First, organizations now operate in much closer proximity than ever before to a greater
number and range of customers, competitors, suppliers, and government regulators. This
proximity, a function of the “shrinking globe,” is partly a matter of time, as today’s
telecommunications technology allows people around the world to share voice, video, and
facsimile information in minutes.
 

Location

     Second, the location and integration of an organization’s operations across several
international boundaries is part of globalization.
 

Attitude

        Third, globalization refers to a new, open behavior about practicing management
internationally. This attitude combines a curiosity about the world outside one’s national borders
with a willingness to develop the capabilities for participating in the global economy.
 

1. 3.    How Governments Influence Competitiveness

          According to Young (1995 as cited by Abelos et.al, 2006), he concluded that both
government and business need to place a higher priority on international
competitiveness. Among specific recommendations, he suggested that responsibility for
formulating international trade policy and encouraging exports (now fragmented among
multiple government agencies) should be unified.

        Global managers thus operate in a climate marked by more aggressive

government efforts to influence how they run their organizations. According to Porter
(1990), those efforts have influenced global competitiveness.
         With striking regularity, firms from one or two nations achieve disproportionate
worldwide success in particular industries. Some national governments seem more
stimulating to advancement and progress than others.

          Porter traces that success to a significant degree, to the economic climate
institutions, and policies attributable to government actions.

1. 4.    Globalization and Competitiveness

          The term competitiveness is viewed as an idea that applies in a number of

different settings. It refers to the relative standing of one competitor against other
competitors. Competitiveness is like the game of the musical chairs. There are finite
numbers of places to sit, and some are more desirable than others.

 Measuring Globalization

           There is no doubt we now live in a global market place. In scores of countries
around the globe, the same products and services are available to consumers and
organizations. These range from McDonald’s restaurants to Sony electronic equipment
to Nokia and Samsung cellular phones. But ask the average of consumers where the
global array of goods comes from and you will hear several answers that reflect differing
perceptions. Throughout the world, McDonald’s is the quintessential American fast-food
restaurant, just as the Doc Martens is synonymous with British youth culture. But for
many other product, brands, and companies, the sense of identity with a particular
country is becoming blurred. Which brands are Japanese, or Americans, or German?
Does a Big Mac taste the same everywhere in the world?

        There are many alternatives on how to measure globalization per country in the
world. The KOF Swiss Economic Institute offers a useful ranking into three broad
categories as follows:

 Economic globalization measures long distance flow of goods, capital, and

services as well as information and perception that company market
exchanges;       

 Social globalization measures the spread of ideas, information, images and

people

 Political globalization measures the diffusion of government policies in terms of

the number of embassies and consulates in a country, membership in
international organization, likewise participation of a country in United Nations 
peace missions and similar advocates.
        In general, most of the countries in higher ranking are affluent countries or the so
called” Global North.” With the exception of Singapore, which is situated geographically
in the Global South, the rest are economically well-off. The statistics shows the top 36
nations (among the top 50 in the globalization index on the data constructed in 2015.
The index is based on three dimensions or core sets of indicators namely economic,
social and political.

References:

References:

 Abelos, A. et. al., (2018), The contemporary world, MUTYA Publishing    

     House Inc.

 Claudio, L. & Abinales, P. (2018), The contemporary world, CE Publishing

https://www.scribd.com/document/394529123/THE-CONTEMPORARY-WORLD-pdf

Fernandez Jr., G. et. al., (2018), The contemporary world, MUTYA 

     Publishing House Inc.

     https://www.researchgate.net/publication/331683123_Contemporary_World