LESSON 1

Globalization
 The term “globalization” is derived from the word “globalize” which refers to the emergence of an
international network of economic system.
 In economic terms, it usually refers to the integration of the national markets to a wider global signified
by the increased free trade.
 It is a process by which goods, services, capital, people, information and ideas flow across national
borders. (Grewal/Levy)
 The expansion and intensification of social relations and consciousness across world-time and across
world-space. (Manfred Steger)
According to Arjun Appadurai (anthropologist), that globalization can be divided into the five “scapes”.
* An “ethnoscape,” refers to the global movement of people.
* A “mediascape,” is about the flow of culture.
* A “technoscape,” refers to the circulation of mechanical goods and software;
* a “financescape” denotes the global circulation of money;
* an “ideoscape” is the realm where political ideas move around.

Globalization has various aspects which affect the world in several different ways. These aspects include:
 Industrial globalization – development of worldwide production markets and broader access to a range
of foreign products for consumers and companies involving particularly movement of material and
goods between and within national boundaries.
 Financial globalization – development of worldwide financial markets and better access to external
financing borrowers.
 Economic globalization – establishment of global common market, based on the freedom of exchange
of goods and capital.
 Political globalization – creation of international organizations to regulate the relationships among
governments and to guarantee the rights arising from social and economic globalization.
 Informational globalization – increase in information flows between geographically remote locations.
 Cultural globalization – sharing ideas, attitudes and values across national borders.

Elements of Globalization
1. Trade Agreements – bilateral, regional or multilateral economic arrangements designed to reduce or
eliminate trade barriers.
2. Capital Flow – measurement of increase or decrease in a nation’s domestic or foreign assets.
3. Migration Patterns – impact of labor market fluidity on production costs through the loss (emigration) or
gain (immigration) of potential workers especially those with particular skills.
4. Information Transfer – communication trend that helps mitigate the asymmetric functioning of markets and
economies.
5. Spread Technology – rapid diversion of the means and methods of producing goods and services.

LESSON 2
The Structures of Globalization
The Global Economy
 A system of trade and industry across the world that has emerged due to globalization.
 The origins of a global economy can be traced back to the expansion of long-distance trade during the
period of 1450-1640, which Wallerstein has labeled the “long sixteenth century”.
Economic Globalization
It is a historical process, a result of human innovation and technological progress. It refers to the
increasing integration of economies around the world, particularly through the movement of goods, services,
and capital across borders. It may also refer to the movement of people (labor) and knowledge (technology)
across international borders (IMF, 2008).
Economic Globalization Today
Economic globalization remains an uneven process, with some countries, corporations, and individuals
benefiting a lot more than others. The series trade talks under the WTO have led to unprecedented reductions in
tariffs and other trade barriers, but these processes have often been unfair.

 Commodity - is a basic physical asset, often used as a raw material in the production of goods or
services.
To be traded on the markets, a commodity must be interchangeable with another commodity of
the same type and grade. That means that to a trader, gold is gold: no matter where it was mined, or
which company mined it. The term for this quality in commodities is fungible.
 Capital
 Capital is identified with money, wealth. (W. Stafford)
 Growth of wealth, surplus value, formed by the labour. (K. Marx)
 Accumulation of wealth with the help of wage labour. (A. Smith)
 Labor Market - refers to the supply of and demand for labor, in which employees provide the supply
and employers provide the demand.

Global Stratification
Global Stratification refers to the hierarchical arrangement of individuals and groups in societies around
the world.
Classifying Global Stratification
The different typologies of global stratification are the following:
I. First Typology
A. First World - The Western Capitalist democracies of North and Europe, and other certain nations
(Australia, New Zealand and Japan).
B. Second World – Nations belonging to the Soviet Union.
C. Third World – All the remaining nations, almost all of them from Central and South America,
Africa and Asia.
II. Replacement Typology
A. Developed
B. Developing
C. Undeveloped
III. Popular Typology
A. Wealthy (or high income)
B. Middle-income
C. Poor or low-income

THEORIES OF GLOBAL STRATIFICATION

• Modernization Theory – According this theory, rich nations became wealthy because early on they
were able to develop the correct beliefs, values, and practices.
• Dependency Theory – According to this view, the poor nations never got the chance to pursue
economic growth because early on they were conquered and colonized by European ones.
• World System Theory- This theory states that some nations become modernized by exploiting other
nations.

TYPES OF GLOBAL POVERTY

1. Relative Poverty
 is the condition in which people lack the minimum amount of income needed in order to maintain the
average standard of living in the society in which they live.
2. ABSOLUTE POVERTY
 refers to a condition where a person does not have the minimum amount of income needed to meet the
minimum requirements for one or more basic living needs over an extended period of time.
3. SUBJECTIVE POVERTY
 describes poverty that is composed of many dimensions; it is subjectively present when your actual
income does not meet your expectations and perceptions.