CONTEMPORARY WORLD REVIEWER
∙ Local
Lesson Title: Introduction to Globalization
Globalization – is a growth on international scale. It
defines how we are connected to different nations,
cultures, and people from different parts of the world.
FACTORS OF GLOBALIZATION
Globalization of blending cultures – new cultures are
being transmitted when more people are traveling or
exchanging goods. It simply sharing of culture.
Globalization in economics – trade is the most common
example of this factor. It is exchanging of goods, services
and products. A great number of goods can be exchanged
and production method can be improved.
Globalization in Technology – the internet is the best
example of this factor. It enables users to connect
internationally which made a vehicle to globalization.
Lesson Title: Globalization as Internationalization and
Liberalization
Internationalization – is related to a firm’s movement
overseas, artists performing overseas, Filipino working
overseas. Internationalization is the process that results in
globalization as firm movements could be said to be the
cause of globalization.
Difference of Globalization and Internationalization
∙ Globalization is the end result, while internationalization
is one of the tools/processes to achieve them.
∙ Globalization is more with the nations and their
economies, while internationalization is more related
to local individual, firm, and corporations.
∙ Globalization are infrastructural, and logistics set up.
While internationalization gets affected by cultural
tastes and preference.
Liberalization – generally refers to removal of restrictions;
usually government rules and regulations imposed on
social, economic, or political matters.
Globalization and Liberalization – their concepts are
closely related to one another, and both globalization and
liberalization refer to relaxing social and economic policies
that result in better integration.
Lesson Title: Globalization as Westernization
Westernization – happens when non-western nations
adopt more western influence.
Effects of Westernization
∙ Many people slowly wiping out their culture.
culture and traditions were replaced by western ways of
life.
∙ It affected our traditions, customs, family and our love
and respect for others.
∙ Strong family ties of Filipino are eroding and respect for
the elders are diminishing.
Advantage of Westernization
∙ It brought good things to us, like civilization, medicine,
foods and even hi-technology.
Why Philippines was Westernized?
∙ Philippine was westernized because of American
colonization, which we continuously practicing
nowadays.
Globalization as Westernization – westernization is a
cultural transformation whereby western ideas on things
are adopted. While globalization refers to a closer
integration of people in both culture and more practical
concerns like transportation, and products.
Lesson Title: Forms of Globalization
Economic Globalization - is related to the process or
system by which goods and services are produced, sold
and brought. It is responsible for the emergence of
multinational corporations producing and exporting goods
as they obtain capital, technology, and access to
distribution networks.
Financial Globalization - any process related to the use of
money worldwide. It is the high integration of global
financial markets.
Four basic developments of Financial Globalization
∙ Consolidation of financial institutions - Local banks
were, until about two decades ago, largely locally
owned and operated. Today, the local bank is
likely to be owned by a much larger bank in a
major city.
∙ Globalization of operations - Banking
conglomerates extend their reach by
forming strategic alliances with similar
institutions in different countries.
∙ Emergence of new Technology – money
moves across national boundaries at the
touch of a button internet banking and
brokerage services. Uses online operations
to expand foreign business.
∙ Universalization of banking – Growing competition
in financial markets, the increasing irrelevance of
national borders, and the increasingly complex
 relationships among businesses have contributed
to a blurring of bank and nonbank financial
services.
Political Globalization – Refers to the growth of the
worldwide political system, both in size and complexity.
That system includes national government, their
governmental and intergovernmental as well.
Lesson Title: Other Forms of Globalization
Military globalization – the process which embodies the
growing extensity and intensity of military relations among
the political units of the world system.
Cultural globalization – involves the exchange of food,
people, products, ideas, and technology across national
borders.
Environmental globalization – internationally coordinated
practices and regulations to help preserve the
environment.
Criminal globalization – poses severe challenges to
national and global security. Terrorists and criminals use
the instruments of globalization to achieve their
objectives.
Lesson Title: Global Economy and Market Integration
Market integration – basically refers to how
easily 2 or more markets can trade with each
other. Foreign trade helps the integration of
markets because it reduces barriers to trade
and increases fluidity between markets.
Reasons for Market Integration:
∙ To remove transaction costs
∙ Foster competition
∙ Provide better signals for optimal generation and
consumption decisions.
∙ Improve security of supply.
Types of Market Integration:
1. Horizontal integration – this occurs when a firm or
agency gains controls of other firms or agencies
performing similar marketing functions at the same
level in the marketing sequence.
Effects of Horizontal integration:
⮚ Buying out a computer in a time bound way to reduce
competition.
⮚ Gaining larger share of the market and higher profits.
⮚ Attaining economies of scale
⮚ Specializing in the trade.
2. Vertical integration – this occurs when a firm performs
more than one activity in the sequence of the
marketing process.
Advantage of Vertical integration:
⮚ Gives more control over the business.
⮚ Allows to invest in asset that highly specialized.
⮚ Requires lower costs of transaction.
⮚ Offer more cost control.
Effects of Vertical integration:
⮚ More profits by taking up additional functions.
⮚ Risk reduction.
⮚ Improvement in bargaining power.
3. Forward integration – if a firm assumes another
function of marketing which is closer to the
consumption function, a case of forward integration.
4. Backward integration – involves ownership or a
combination of sources of supply.
5. Balanced vertical integration – the third type of vertical
integration is a combination of the backward and the
forward vertical integration.
6. Conglomeration – a combination of agencies or
activities not directly related to each other. It operates
under a unified management.
Effects of conglomeration:
⮚ Risk reduction through diversification.
⮚ Acquisition of financial leverage.
⮚ Empire – building urge.
Effects of Market Integration
∙ Both producers and consumers can gain. ∙
Positive level of openness in trading.
PREPARED BY MA. PRECIOUS DOROTHY MAGDURA