CHAPTER II

THE STRUCTURES OF
GLOBALIZATION

ROMNICK R. AGAG
CHAPTER II: THE STRUCTURES OF GLOBALIZATION

1.Market Globalism as a New

Ideology
2.Rise of Global Corporations
3.The Nation-State
4.Attributes of Modern
International Politics
5.Contemporary Global
Governance
LEARNING OUTCOMES
At the end of the session, students must have:
▪ described Market Globalism;
▪ identified the actors that facilitate economic
globalization;
▪ explained the role of international financial
institutions in the creation of a global economy;
LEARNING OUTCOMES
At the end of the session, students must have:
▪ narrated a short history of global market
integration in the 20th century; and
▪ identified the attributes of global corporations.
WARM-UP ACTIVITY
Global Economy
▪ It 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 (Shangquan,
2000).
Global Economy
▪ Refers to the international exchange of goods and
services through the use of monetary units of
money.
▪ Free movement of goods, capital, services,
technology, and information.
Global Economy
▪ Concerned on the globalization of production,
finance, markets, technology, organizational
regimes, institutions, corporations and labor.
Global Economy Globalization of
Organizational
Regimes Globalization of
Globalization of Finance
Production

Global Economy
Globalization of Globalization of
Corporation Markets

Globalization of Globalization of
Technology Labor
Globalization of Production
▪ Sourcing of goods and services from location
around the globe to take advantage of national
differences in the cost and quality of factors of
production like land, labor and capital.
Globalization of Production
▪ Outsource. Obtain (goods or services) from an
outside or foreign supplier, especially in place of
an internal source.
o Business Process Outsourcing or BPOs (Call
Center Agencies)
Globalization of Labor
Globalization of Technology
▪ Refers to the global exploitation of technologies
through the patents ( a government authority or
license conferring a right or title for a set of
period, especially the sole right to exclude others
from making, using, or selling an invention) and
licenses.
Globalization of Finance
▪ Financial Globalization refers to:
o The liberation of trade in financial assets
o Flow of capital and corporate investments
between various countries
o World allocation of money leading to exchange
of services and goods.
Globalization of Finance
▪ International Monetary Fund
▪ World Bank
Globalization of Corporation
▪ refers to a company or group of people authorized
to act as a single entity and recognized as such
law that operates globally or internationally
Global Corporation
▪ refers to a company or corporation that operates
in more than one country which has significant
investments and facilities in multiple countries but
lack dominant headquarters.
Global Business
▪ refers to business that maintains a strong
headquarters in one country, but has investments
in multiple foreign location.
Global Business
Globalization of Markets
▪ Globalization of markets refers to the process of
integrating and merging of the distinct markets into
a single market.
▪ This involves the identification of some common
norms, value, taste, preference and convenience
and slowly enables the cultural shift towards the
use of common product or service.
Globalization of Markets
Globalization of Markets
Globalization of Markets
ASSIGNMENT

1. Explain the statement of

Congressman Sandro Marcos,
“Peso is weak not because it’s
weak: Dollar is just strong now.”
 THE GLOBAL
INTERSTATE SYSTEM
STATE
▪ Body of people politically organized under a
government within a definite territory.
▪ A community of persons, more or less numerous,
permanently occupying a definite portion of territory,
independent of external control, and possessing an
organized government to which the great body of
inhabitants render habitual obedience.