What is GLOBALIZATION?

Globaliza(on is a process of interac,on and integra,on among the

people, companies, and governments of different na,ons, a process
driven by interna,onal trade and investment and aided by informa,on
technology. This process has effects on the environment, on culture, on
poli,cal systems, on economic development and prosperity, and on
human physical well-being in socie,es around the world.
What is GLOBALIZATION?
According to the International Monetary Fund (IMF) globalization is
the growing economic interdependence of countries worldwide
through increasing volume and variety of cross border transactions in
goods and services and of international capital flows and also through
the more rapid and wide diffusion of technology.
Attributes, Qualities or Characteristics
of Globalization

four characteristics or qualities:

1. It involves both the creation of new social networks and the
multiplication of existing connections that cut across traditional,
political, economic, cultural, and geographical boundaries.

Example: Brazilian World Cup: Today’s media combine conventional

TV coverage with multiple streaming feeds into digital devices and
networking sites that transcend nationally based services.
2. Globalization is reflected in the expansion and the stretching of
social relations, activities, and connections.

Examples:
-Reaching of financial markets around the globe
-Occurrence of electronic around the clock
-Emergence of gigantic and virtually identical shopping malls all
continents to cater to consumers who can afford commodities all
over the world-including products whose various components were
manufactured in different countries. This process is called social
stretching.
Covered in the process of social stretching are:
-Non-governmental organization
-Commercial enterprises
-Social clubs
-Regional and global institutions and associations (UN, EU, ASEAN,
Google and others)
3. Globalization involves the intensification and acceleration of
social exchanges and activities.

Examples:
-The worldwide web relays distant information in real time
-Satellites provide consumers with instant pictures of remote events
-Sophisticated social networking by means of facebook or twitter
has become routine activity for more than a billion people around
the globe.
4. Globaliza(on processes do not occur merely or an objec(ve,
material level but they also involve the subjec(ve plane of human
consciousness. Without erasing local and na(onal aQachments, the
compression of the world into a single place has increasingly made
global the frame of reference for human thought and ac(on.
Globalization involves both the macro-structures of a global
community and micro-structures of global personhood. It extends
deep into the core of the self and dispositions, facilitating the
creation of multiple individual and collective identities nurtured by
the intensifying relations between the personal and the global. They
differ from each other by acceleration in the speed of social
exchanges and widening of geographical scopes.
 GLOBALIZATION:
A WORKING DEFINITON
Globalization
-Primarily an economic process.
-The integration of the national markets to wider global market
signified by the increased free trade.

Anti-globalization (1990s)
-Resisting the trade that deals among countries facilitated and
promoted by global organizations.

Globalization scholars do not necessarily disagree with people who

criticize unfair international trade deals or global economic
organizations.
Journalists and the political activists views that the globalization has
a broader term, because the view the process through various lenses
that consider multiple theories and perspective.
3 important aspects of Globalization:
1. Internationalization- the act of bringing
something under international control.
2. Liberalization- is a change in the economic
philosophy of a state.
3. Westernization- process of adopting or being
influenced by the systems of the West.
Historical Periods of
Globalization
1. The Prehistoric Period (10000 BCE-3500 BCE)

In this earliest phase of globaliza(on, contacts among hunters

and gatherers–who were spread around the world – were
geographically limited. In this period due to absence of advanced
forms of technology, globaliza(on was severely limited.
2. The Pre-modern Period (3500 BCE- 1500 CE)

In this period the invention of writing and the wheel were great
social and technological boosts that moved globalization to a new
level. The invention of wheel in addition to roads made the
transportation of people and goods more efficient. On the other
hand writing facilitated the spread of ideas and inventions.
3. The Early Modern Period (1500-1750)

It is the period between the Enlightenment and the

Renaissance. In this period, European Enlightenment project tried to
achieve a universal form of morality and law. This with the
emergence of European metropolitan centers and unlimited material
accumulation which led to the capitalist world system helped to
strengthen globalization.
4. The Modern Period (1750-1970)

Innovations in transportation and communication technology,

population explosion, and increase in migration led to more cultural
exchanges and transformation in traditional social patterns. Process
of industrialization also accelerated.
5. The Contemporary Period (from 1970 to present)

The creation, expansion, and acceleration of worldwide

interdependencies occurred in a dramatic way and it was a kind of
leap in the history of globalization.
Dimensions of
Globalization
1. Economic Dimension

This refers to the extensive development of economic relations

across the globe as a result of technology and the enormous flow of
capital that has stimulated trade both sources and goods.
MAJOR SOURCES OF ECONOMIC GROWTH ACROSS COUNTRIES
1. PROPERTY RIGHTS
2. REGULATORY INSTITUTIONS
3. INSTITUTIONS FOR MACRO-ECONOMICS9THE
4. STABILIZATION
5. INSTITUTIONS FOR SOCIAL INFLUENCE
6. INSTITUTIONS FOR CONFLICT MANAGEMENT
2. Poli(cal Dimension

This refers to an enlargement and strengthening of poli(cal

interrela(ons across the globe.

Poli(cal Issues that Surface in this Dimension

1. The principle of state sovereignty
2. Increasing impact of various intergovernmental organiza(on
3. Future shapes of regional and global governance
3. Cultural Dimension

This refers to the increase in the amount of cultural flows across

the globe. Cultural interconnections are at the foundations of
contemporary globalization.

Individualism and consumerism which are the dominant cultural

characteristics of our age and the drive for economic success
stimulated by the internet and other technological devices circulate
much more easily than they did in earlier periods.
4. Religious Dimension

Religion is a personal or institutionalized set of attitudes,

beliefs, and practices relating to or manifesting faithful devotion to
an acknowledged ultimate reality or deity.
Jihadist globalism is a religious response to the materialist
assault by the ungodly West in the rest of the world. Coming out of
what they consider a pure form of Islam, its disciples seek to destroy
all those alien influences that have been imposed on Muslim people.
Roman Catholic Teaching
of Globalization
There are eight (8) principles that summarize the Roman Catholic
Teachings:
1. Commitment to universal human rights
2. Commitment to the social nature of the human person
3. Commitment to the common good
4. Solidarity (The principle of Solidarity affirms that
membership in the human family means that all bear
responsibility for one another).
5. Preferential option of the poor (In the Theology of the
Incarnation- Christ God became poor for us so as to enrich us
by his poverty).
6. Subsidiary (The Catholic Church teaches that decisions should
be made at the lowest level in order to achieve the common
good).
7. Justice
8. Integral Humanism- is concerned with whole person Justice is
divided in three (3) categories:
1. Commutative justice
This aims at fulfilling the terms of contracts and other
promises on both personal and social level.
2. Distributive justice
This ensures a basic equity in how both the burden and
the goods of society are distributed and that ensures that
every person enjoys a basically equal moral and legal
standing apart from differences in wealth, privilege,
talent and achievements

3. Social justice
This refers to the creation of the conditions in which the
first two categories of justice can be realized and the
common good identified and defended.
5. Ideological Dimensions
Ideology is a system of widely shared ideas, beliefs, norms and
values among group of people. It is oaen used to legi(mize certain
poli(cal interests or to defend dominant power structures.
 Major Ideological
Claims of Advocates
of Globalism
1. Globalization is about the liberalization and global integration
of markets.
2. Globalization is inevitable and irreversible.
3. Nobody is in charge of globalization. This claim seeks to
depoliticize the public debate on globalization neutralizing
anti-globalist movements.
4. Globalization benefits everyone. Globalists talk about the
benefits of market liberalization such a rising global living
standards, economic efficiency, individual freedom, and
technological progress.
5. Globalization furthers the spread of democracy in the world.
 UNIT II
THE STRUCTURES OF
GLOBALIZATION
PREPARED BY:
THE GLOBAL ECONOMY

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.
According to IMF, it is a historical process, the result of
human innovation and technological progress.
Two Major Driving Forces
for Economic Globalization
1. The rapid growing of information in all types of
productive activities.

2. Marketization- it is restructuring process that enables

state enterprises operate as market-oriented firms by
changing the legal environment in which they operate and
can be achieved through reduction of state subsidies,
organizational restructuring of management such as
corporatization, decentralization, and privatization.
Dimensions of Economic Globalization:

1. The globalization of trade of goods and services

2. The globalization of financial and capital markets
3. The globalization of technology and communication
4. The globalization of production
 Difference between
Economic Globalization
from Internationalization
Economic globalization is a functional integration
between internationally dispersed activities which
means that it is a qualitative transformation rather
than quantitative change.
Internationalization is an extension of economic
activities between internationally dispersed activities.
International Monetary Systems and Gold Standard

International monetary system (IMS) refers to a system that

forms rules standards for facilitating international trade
among the nations. It helps in allocating the capital and
investment from one nation to another.
Gold Standard is a system of backing a
country’s currency with its gold reserves.
Such currencies are freely convertible into
gold at fixed price, and the country settles all
its international trade transactions in gold.
The European Monetary System (EMS)
It is a 1979 arrangement between several European
countries that link their currencies in an attempt to
stabilize the exchange rate. This system was
succeeded by the European Economic and Monetary
Union (EMU), an institution of the European Union
(EU), which established a common currency called
the euro.
The European Financial Stability Mechanism (EFSM)
is a permanent fund created by the European Union
(EU) to provide emergency assistance to member
states within the Union.

It raises money through the financial markets and is

guaranteed by the European Commission.
The European Financial Stability
Facility (EFSF is an organization
created by the European Union to
provide assistance to member states
with unstable economies.
The EFSF is a special purpose vehicle (SPV)
managed by the European Investment Bank, a
lending institution.
International Trade and Trade Policies
International Trade it is the exchange of goods and
services and capital across national borders. It is a
multi-million dollar activity, central to the Gross
Domestic Product (GDP) of many countries.
Trade policies refers to the regulations and
agreement of foreign countries. It defines
standards, goals, rules, and regulations that pertain
to trade relation between countries.
The two key concepts in the economics of
international trade are specialization and
comparative advantage.
Focuses of Trade Policy in
International Trade
Tariffs- these are taxes or duties
paid for a particular class of
imports or exports. Imposing
taxes on imported and exported
goods is a right of every country.
Trade barriers- these are measures that
governments or public authorities
introduce to make imported goods or
services less competitive than locally
produced goods and services.
Safety- this ensures that imported
products in the country are of high
quality. Inspection regulations laid
down by public officials ensure the
safety and quality standards of
imported products.
Types of Trade Policies
National Trade Policy- this safeguards the best interest of
its trade and citizen.
Bilateral Trade Policy
It is formed to regulate the trade and business relations
between two nations. Under the trade agreement the
national trade policies of both the nations and their
negotiations are considered while bilateral trade policy is
being formulated.
International Trade Policy
This defines the international trade policy under
their charter like the International economic
organizations, such as Organization for
Economic Co-operation and Development
(OECD), World Trade Organization (WTO) and
International Monetary Fund (IMF).
Trade Policy and International Economy
In most developed countries where open market
economy prevails, the international economic
organizations support free trade policies.
The World Trade Organization (WTO)
It is the only global international organization
dealing with the rules of trade between nations
with WTO agreements, negotiated and signed
by the bulk of the world’s trading nations and
ratified in their parliaments at its heart.
Global Economy Outsourcing
It is an activity that requires search for a partner and
relation-specific investments that are governed by incomplete
contracts and the extent of international outsourcing depends
on the thickness of the domestic and foreign market for input
suppliers, the relative cost of searching in each market, the
relative cost of customizing inputs and the nature of the
contracting environment in each country.
Possible Determinants of the Location of Outsourcing

1. Size of the country can affect the “thickness” of its markets. 2. The
technology for search affects the cost and likelihood of finding a
suitable partner.
3. The technology for specializing components determines the
willingness of a partner to undertake the needed investment in a
prototype.
4. The contracting environments can impinge on a firm’s ability to
induce partner to invest in the relationship.
Market integration refers to how easily
two or more markets can trade with
each other. It occurs when prices among
different locations or related goods
follow similar patterns over a long
period of time.
Types of Related Markets where
Market Integration Occurs
Stock Market Integration
This is a condition in which stock
markets in different countries
trendtogether and depict same
expected risk adjusted returns.
Financial Market Integration
It is an open market economy between
countries facilitated by a common currency
and the elimination of technical, regulatory
and tax differences to encourage free flow
of capital and investment across borders.
Global corporation is a business that
operates in two or more countries. It also
goes by the name "multinational company.
The Finance Function in a Global Corporation
As corporations go global, capital markets open up
within them, giving companies a powerful
mechanism for arbitrage across national financial
markets. These three functions can be created by
CFOs through exploiting their internal capital
markets.
1. Financing
A group’s tax bill can be reduced by the CFO like borrowing
countries with high tax rates and lending to operations in
countries with lower rates.

2. Risk Management
Global firms can offset natural currency exposures through
worldwide operations instead of managing currency exposures
through financial markets.
3. Capital budgeting Getting smarter on valuing
investment opportunities CFOs can add value.
Foreign Direct Investment it is a major driver of extended global
corporate development.

BRICS ECONOMIES
Brazil, Russia, India, China and South Africa (BRICS) is an acronym for
the combined economies of Brazil, Russia, India, China and South
Africa. BRIC, without South Africa, was originally coined in 2003 by
Goldman Sachs, which speculates that by 2050 these four economies
will be the most dominant.
The General Agreement on Trade in Services
(GATS)
It is the first multilateral agreement covering
trade in services which was negotiated during
the last roundof multilateral trade negotiations,
called the Uruguay Round, and came into force
in 1995.
THE GLOBAL INTERSTATE SYSTEM
Globalization and Nation-States States Globalization in
the early years of the 21 st century has not displaced
state. Max Weber, a German social theorist define state
as a compulsory political organization with a
centralized government that maintains a monopoly of
the legitimate useof force within a certain territory.
Neoliberalism and Economic Sovereignty

Neoliberalism is the elevation of capitalism as a mode

of production into an ethic, a set of political
imperatives, and a cultural logic.
Economic sovereignty on the other hand is the
power or national governments to make decisions
independently of those made by other governments.
Four different concepts of sovereignty:

1. International Legal Sovereignty- it refers to the

acceptance of a given state as a member of the
international community.

2. Westphalian Sovereignty - it is based on the principle

that one sovereign state should not interfere in domestic
arrangements of another.
3. Interdependence Sovereignty- it is the capacity
and willingness to control flows of people, goods
and capital into and out of the country.

4. Domestic Sovereignty- it is the capacity of a

state to choose and implement policies within the
territory
Economic and Political Integration (European Integration)

European integration is the process of industrial, political,

legal, economic, social, and cultural integration of states
wholly or partially in Europe.

European Union (EU) is an international organization

comprising 28 European countries and governing common
economic, social, and security policies.
Seven Stages of Economic Integration
1. Preferential trading area (PTA)
2. Free trade area
3. Customs union
4. Common market
5. Economic union
6. Eonomic and monetary union
7. Complete economic integration
Preferential Trade Areas (PTAs) happens when there’s an
agreement on reducing or eliminating tariff (tax or duty to be
paid on a particular class of imports or exports) barriers on
selected goods imported from other members of countries
within the geographical region or areas. Agreement can
either be bilateral (between two countries), or multilateral
(several countries).
Free Trade Agreements (FTAs) or Preferential Trade Agreements
(PTAs) eliminate import tariffs as well as import quotas between
signatory countries.

Removal of tariff barriers between members, together with the

acceptance of a common or unified external tariff against
non-members is involved in the CustomUnion.

One major step towards economic integration is Common Market

(CM).
The trading bloc that has both a common market between
members, andacommon trade policy towards non-members,
although members are free to pursue independent
macro-economic policies is termed Economic Union.

Economic and MonetaryUnion (EMU) involves a single

economic market, a common trade policy, a single currency
and a common monetary policy. It represents a major step in
the integration of EU economies.
Complete Economic Integration is the final stage of economic
integration which member states completely forego
independence of both monetary and fiscal policies.

Political integration refers to the integration of components

within political systems; the integration of political systems
with economic, social, and other human systems; and the
political processes by which social, economic, and political
systems become integrated
Theories of European Integration
Neo-functionalism- it focuses on the supranational
institutions of the EU of which the main driving forces of
integration are interest group activity at the European and
national levels, political party activity, and the role of
governments and supranational institutions. The European
integration is mostly seen as an upper class- driven process-
driven by national and international political and economic
upper crusts.
Intergovernmentalism
The main concept of the Intergovernmentalism is emphasizing
on the role of national states in the European integration; in
another words it argues that "European Integration is driven
by the interest and actions of nation states."
New Institutionalism
This theory emphasized the importance of institutions in the
process of European Integration. Its three key strands are:
rational choice, sociological and historical.
Liberal Intergovernmentalism
This a dominant political theory developed by Andrew
Moravsik 1993 explain European integration. Application of
rational institutionalism to the field of European integration
is the aim of this theory.
Multi-level Governance (MLG)
This is a new theory of European integration. Writers Liesbet Hooghe
and Gary Marks defined MLG as dispersion of authority across
multiple levels of political governance.

Transnational Activism in States

Transnational activism can be defined as the mobilization of
collective claims by actors located in more than one country and/or
addressing more than one national government and/or international
governmental organization or another international.
SOCIAL MOVEMENT
It refers to the organizational structures and strategies that
may empower oppressed populations to mount effective
challenges and resist the more powerful and advantaged elites.

GLOBAL JUSTICE MOVEMENT

The movement is often labeled the anti-globalization
movement by the mainstream media.
The new transnational activism is as multifaceted as the
internationalism.

Social Media and the State Social media is a computer-based

technology that facilitates the sharing of ideas and information
and the building of virtual networks and communities.
Global governance or world governance
It is a movement towards the political integration of transnational actors
aimed at negotiating responses to problems that affect more than one state or
region.
The Roles and Functions of the United Nations
To promote international cooperation and to create and maintain
international order.
In the world of politics, UN has the roles of preventing and managing
conflicts, regulating armaments, championing human rights and
international humanitarian law, liberating the colonized, providing economic
and technical aid in newly liberated countries, organizing elections etc.
Four Main Purposes
of the UN Charter
1. Maintaining worldwide peace and security
2. Developing relations among nations
3. Fostering cooperation between nations in
order to solve economic, social, cultural, or
humanitarian international problems
4. Providing a forum for bringing countries
together to meet the UN's purpose and goals
Challenges of Global Governance in the
Twenty-first Century Global governance can be
understood as the sum of laws, norms, policies, and
institutions that define, constitute, and mediate
trans-border relations between states, cultures,
citizens, intergovernmental and nongovernmental
organizations, and the market.
THE ROLE OF THE NATION-STATE IN
GLOBALIZATION
Basic Elements of a State:
1. Territory
2. People
3. Sovereign Power
 UNIT III

WORLD OF REGIONS

Prepared by:
Dr. BELEN E. BAGUI
Global South refers to the regions of Latin
America, Asia, Africa, and Oceania mostly low-
income and often politically or culturally
marginalized. It may also be called the
"developing World" such as Africa, Latin America,
and the developing countries in Asia, "developing
countries," "less developed countries," and "less
developed regions”
Three Primary Concepts of Global South

1. It refers to economically disadvantaged nation-

states and as a post-cold war alternative to the
“Third World”.
2. The Global South captures a deterritorialized geography of
capitalism’s externalities and means to account for
subjugated peoples within the borders of wealthier countries,
such that there are economic Souths in the geographic North
and North in the geographic South.

3. It refers to the resistant imaginary of a transnational

political subject that results from a shared experience of
subjugation under contemporary global capitalism.
The strongest vehicle for social redistribution and the main
mechanism for social transfer is the state. The redistributive
function of the state becomes crucial in the context of
economic globalization where the goal of neo-liberal
economists and institutions is precisely to dismantle local
state oversight.
The International Monetary Fund
(IMF) regards “economic globalization”
as a historical process representing
the result of human innovation and
technological progress.
New Internationalism in the Global South

The ills of the global south are being globalized.

Underdeveloped states of the global south are ravaged by
merciless IMF policies in the 1980s.
Asian Regionalism refers to the decentralization of political
powers or competencies from a higher towards a lower
political level. More specifically, it distinguishes between
top-down from bottom-up regionalism where top-down
regionalism describes the decentralization of competencies
or the establishment of regional institutions blyth estate
while bottom-up includes all patterns of endeavors towards
political decentralization from within the particular region.
The Asia Pacific and South Asia refer together to the
regions of East (or Northeast) Asia, South Asia, the Pacific
Islands, and South Asia. It includes some of the world's
most economically developed states such as Japan, South
Korea, Singapore, and Taiwan, and highly impoverished
countries such as Cambodia, Laos, and Nepal.
Asia Pacific and South Asia’s Impact on Globalization

It was the site of the most important trade routes and in

some places more advanced technology than the West such
as science and medicine.
1. Japan embarked on procuring raw materials like coal and iron
at unprecedented economies of scale allowing them to gain a
competitive edge in the global manufacturing market as well as
globalized shipping and procurement patterns that other
countries modeled.

2. China pursues a similar pattern of development at present

and is now the world’s largest importer of basic raw materials
such as iron and surpassed Japan, the US, and Europe in steel
production.
3. India opened -up and emphasized an export-oriented
strategy. Textiles and other low-wage sectors have been a key
part of the economy with highly successful software
development exports.

4. India and China have also become major sources of

international migrant labor, which is also one of the
fundamental characteristics of the era of globalization. This
includes the migration of highly skilled labor into the high-tech
industry based in Silicon Valley.
5. The trend of the rising regional free arrangements in the Asia
Pacific and South Asia. This kind of regionalism would mean as
bulwark to globalization or as compatible and even pushing
forward the process of global economic integration.

6. In culture and globalization in the region, the source of a wide

variety of cultural phenomena that have spread outward to the
West and the rest of the world is the region.
The Region-Making in Southeast Asia and Middle-Class
Formation:

The first wave of regional economic development took place

in Japan from the mid-1950s to the early 1970s and led to the
emergence of a middle-class by the early 1970s. The second
wave took place between the 1960s and 1980s in SouthKorea,
Taiwan, Hongkong, and Singapore and led to the formation of
middle -class societies in these countries by the 1980s.
The Third Wave
The main engines of hybridization are explained by the
successive waves of regional economic development that is
powered by developmental states and national and
transnational capitalism that nurtured sizeable middle-classes
that share a lot in common in terms of professional lives and
their lifestyles, in fashion, leisure, and entertainment, in their
aspirations and dreams.
Two salient points in the history of east Asian middle-class
formation.

1. Middle-class formation in Southeast Asia was driven by global

and regional transnational capitalism working in alliance with
national states while middle-class Japan, South Korea, and
Taiwan were created by developmental states and national
capitalism.
2. New urban middle classes in East Asia, whether in Japan,
SouthKorea, Taiwan, or Southeast Asia, with their middle-class
jobs, education, and income, have in turn created their own new
lifestyles commensurate with their middle-class income and
status.
Middle Classes in The Philippines

New urban middle classes emerged in the post 1986 Philippines.

They were created through growth in retail trade,
manufacturing, banking, real estate development, and an
expanding range of specialist services such as accounting,
advertising, computing, and market research.
Regional Implications of Middle-Class Formation in East Asia
Complex historical forces shaped new urban middle classes.

Thai middle classes are coherent socially, hegemonic culturally,

and ascend politically; their counterparts Malaysia and Indonesia
are socially divided, dependent on the state, politically assertive,
and vulnerable; and the Philippine middle classes are socially
coherent, less dependent on the state, culturally ascendant, but
politically vacillating.