INTRODUCTION TO THE STUDY OF
GLOBALIZATION
Historic Phases of Globalization
1600s: Emergence of ‘Global Imagination’
- Manfred Steger: We are conscious
that we belong to a global
community; capitalism and marine
vehicles)
1850s-1950s: Incipient Globalization
- telegraph, telephones, radio, TV
- October 24, 1945- UN was founded
1960s-today: Full-scale globalization
- Globalization 4.0
- Global markets, integration,
production
Globalization- refers to the existence of
free exchange of goods, services, culture,
and even people, between and among
countries (Theodore Levitt's article entitled
"The Globalization of Markets.")
- expansion, intensification of social
relations and consciousness across world-
time and world-space. (Manfred Steger)
- discarded taxes on imported goods (tariffs)
and opened their doors to highly skilled
workers and professionals
- people became more interested to travel,
learn new languages, and immerse
themselves into new cultures and lifestyles
-"the growing pace, volume and complexity
of international movements of people,
goods, capital, services, and knowledge are
both causes and consequences of the latest
round of globalization."
6 Causes of Globalization (IF CTLR)
1. Information and Communications
Technology (ICT)
2. Transportation
3. Freedom of trade
4. Capitalism- dominant economic
framework; profit-motive; an economic
system characterized by private ownership
of the means of production, especially in the
industrial sector.
5. Labour availability and skills
6. Rationalism- global consciousness
- Rizal’s “ghost of comparison”
Concepts and Ideas Associated with
Globalization
Transnational Migration- process of
movement and settlement across
international borders in which individuals
maintain or build multiple networks of
connection to their country of origin while at
the same time settling in a new country
Deregulation- loosening or lifting of
government regulations (banking or
financial regulations), usually to favor
private corporations’ flexibility of operation
and profitability
Privatization- process or policy
subjecting an industry or service to private
control and ownership
Liberalization- process or policy of
removal of reduction of restrictions or
barriers on the free trade between nations.
Social Movement- people and
organizations advocating for positive social
change
Four Dimensions of Globalization (EPEC)
Economic dimension- intensification,
increase and stretching of economic
connections around the world
Political dimension- intensification and
expansion of political interrelations around
the world
Cultural dimension- cultural flows across
the globe
Ecological dimension- worldwide
environmental issues
Competing Conceptions of Globalization
Globalization as a “contested concept”
(PCAFS)
▪Process ▪Condition ▪System
▪Force ▪Age
United Nations Conference on Trade and
Development (UNCTAD):
Economic globalization is a closer
integration of national economies through
trade and financial flows as well as cross-
border migration of people.
As national economies 'open up' and lower
their external barriers, they become more
exposed and vulnerable to global forces
and influences.
European Union: Four Freedoms:
•Free movement of goods or products-
liberalization
•Services
•Capital or Investment- deregulation
•Persons- loosening or abolition of visa
restrictions and other barriers to migration
EU- economic and political organization
comprised of 28 member states
Power and political systems are necessarily
affected by and are also drivers of
globalization.
Globalization as a “long-term process.”
•General Agreement on Tariffs and Trade
(GATT)- aims to regulate international trade
- October 20, 1847 by 20 nations
•Formally replaced by World Trade
Organization (WTO) - only global
international organization dealing with the
rules of trade between nations.
- 1995 through Marrakesh
Agreement signed by 124
countries
The Lexus and the Olive Tree (Thomas
Friedman)- “Globalization is not static, but
dynamic ongoing process”
Globalization as “the process by which the
world is becoming increasingly
interconnected” (British Broadcasting
Corporation)
Internalization vs Globalization
Internationalization- processes and
systems that pertain to relationships
between nation-states. EU, ASEAN
Globalization- processes and systems
related to “global social relations”.
UNESCO, interaction bet EU and ASEAN
Philosophies/ Ideologies of/on/against
Globalization
Keynesianism (reformist)
 John Maynard Keynes
 Markets are good yet not perfect.
Government must intervene to
correct market failures.
Neoliberalism (laissez-faire)
 The world is best served by free
markets. Government intervention is
not permitted.
Radicalism
 There should be great or extreme
social or political change.
 Markets are not good. Local not
global. Small not big.
Six Ideological Claims
1. Globalization is about the liberalization
and global integration of markets.
2. Globalization is inevitable and
irreversible.
3. Nobody is in charge of globalization.
4. Globalization benefits everyone.
5. Globalization furthers the spread of
democracy in the world.
6. Globalization requires war or terror.
Critics of Globalization
Anti-globalization-wants an end to what
it considers as a highly imbalanced system
of globalization that favors the developed
countries over the developing countries,
corporations over citizens and communities,
and profit–seeking over environmental
sustainability
Alter-globalization- favors ‘altering’ or
‘changing’ the current system of
globalization to make it more humane; more
pro-environment; and grass-roots driven
rather than saying as a top-down imposition
5 Positive Aspects of Globalization
Multiculturalism and multilingualism
Free Trade- ignites competition among
businesses and allow us to enjoy variety of
goods and services at a lower price
Cultural and Educational Exchanges
Migration- remittances from OFWs
Global Cooperation
6 Negative Aspects of Globalization
Linguistic Hegemony of English
Cultural Homogenization
Third World dependence on the First
World
Global Income and Wealth Inequality
Tax Injustice
Racism and Anti-migrant sentiment
6 Arjun Appadurai’s Scapes
Ethnoscape-global movement of people
Mediascape- flow of culture
Technoscape-circulation of mechanical
goods and software
Financescape-global circulation of money
Ideoscape–the realm where political
ideas move around
ECONOMIC DIMENSION OF
GLOBALIZATION
Globalization of World Economies-
From a world of colonial empires into an
integrated global economy***
High frequency trading- in just a matter of
seconds, pwede ka nang makabili, less
hassle; Lazada, Shoppee; netflix vs
sinehan; books vs. ebooks; Spotify vs. cd
International Trading- "trade route"
-Silk road- ancient trade routes - main trade
of China
-silk because most profitable, mahilig ang
Romans (tea, gunpowder, porcelain, paper,
silk)
Han Dynasty, 130 BCE China, India,
Persia, Arabia, Somalia, Egypt, Europe
trade via land and water
not totally globalization kasi di natouch ang
America
Galleon Trade- route Acapulco, Mexico, to
Manila, Philippines; trade back and forth
-dito nagstart ang Globalization
Papaya- from Mexico
Colonization- pananakop gamit ang barko;
age of discovery;
Kastila target: isla ng Moluccas, Malaysia
-why? source of materials for their finished
goods
Portuguese, Dutch, Americans, Latin
America (South America)
***Industrialism- pagbabago ng
technology, establishment of world
organizations, after WW2; ICT
Global Economy- system of trade and
industry around the globe; outcome of
globalization;
-all the economies of the world as one
economic system;
(Global- all around the world; parang
katawan ng tao-interconnected)
Market integration- process by which
differences of prices among different
locations or related goods TENDS to zero
----
Contemporary Global Economy- shaped
and influenced by
 government
 multinational corporations (MNCs)
 global institutions- actors that
facilitate global economy
-has its roots in the institutionalization of
international monetary systems or the
means of international payments
International monetary systems- the
means for international payment
de facto currency- precious materials; gold
and silver, etc.
government - impose, make, and
implement globalization tenets and policies,
like capital market flows, capital investment
global/ multinational corporations-
making the cogs of capitalist globalization
operate smoothly, efficiently, and profitably
as possible.
-operates in 2 or more companies
-gives jobs, generates more revenue,
building reputation
(-Jollibee- MNC with 1482 corporation, 297
all around the world
-Google, Microsoft, Nestle, Unilever)
------
International Trading Systems
International Trade- exchange of goods
and services between countries
Monetary System/ Medium of payment
De Facto Currency
 Barter system- restrictive
 Gold Standard- 1867 UK, USA,
European countries adopted it as an
IMS for efficient trading.
- every piece of money has an equivalent
amount of gold; restrictive
*EU walang gold reserve after WW1 dahil
ginamit sa arms
Great Depression- cause: paggamit ng
gold standard
 Bretton Woods System- an
international basis for exchanging
one currency for another; exchange
rate based on US dollars
- Led to the creation WB and IMF
- stimulated international
trade and financed post-war
reconstruction
- John Maynard Keynes- British economist
“Economic crisis doesn’t occur when a
country does not have a money,
but a money is not being spent, therefore
not spin.”
Keynesianism- as price increases,
companies would earn more and would hire
more workers.
Global Keynesianism-government has to
intervene the market when there is
economic crisis, 1940s-1970s
-Govt pour money into the economies
(spending), tumaas ang demand, tataas ang
presyo, purchase increase the demand of
their product
fiscal policy-
⮚ International Financial Institutions
(IFIs) - institutions that provides financial
support and professional advice for
economic and social development activities
in developing countries and promote
international economic cooperation and
stability
- admit only sovereign countries as owner-
members, but all are characterized by a
broad country membership
- each has its own independent legal and
operational status
- typically refers to International Monetary
Fund (IMF); and the Five (5) Multilateral
Banks:
1. World Bank Group
2. African Development Bank
- established in1964, Abidjan, Cote d’Ivoire
- engaged in promoting the economic
development and social progress of its
shareholder in Africa
3. Asian Development Bank
- Owned by 65 members, 47 from the
region and 18 from other parts of the globe
- Vision: Free of poverty
- Mission: help developing member
countries reduce poverty and improve the
quality of life of their citizens through policy
dialogue, loans, technical assistance,
grants, guarantees, and equity investments
4. Inter-American Development Bank
- established as development institution in
1959
- promotes poverty reduction, social equity,
as well as environmentally sustainable
economic growth
5. European Bank for
Reconstruction and Development
- established in 1991, when communism
was crumbling in central and eastern
Europe and these countries needed support
to nurture a new private sector in a
democratic environment
-May work only in countries that are
committed to democratic principles
Twin institution: World Bank and IMF
(1944 conference- 44 capitalist countries
Bretton Woods in Hampshire creates World
Bank and IMF)
 International Bank for Reconstruction
and Development (IRBD) or World
Bank
-189 member countries
-responsible for funding postwar
reconstruction projects.
-two goals: end extreme poverty; boost
shared prosperity
-Founded in 1945
- involve mainly in reconstruction of
countries devastated by WW II
-envision economic development of the
world’s non-industrialized countries, with the
goal of lifting the world out of POVERTY
*World War II
 International Monetary Fund (IMF)
- global lender resort to prevent individual
countries from spiraling into credit crises
- established by international treaty in 1945
as the central institution of the international
monetary system (system of currency
trading and exchange rates that enables
business to take place between countries
with different currencies)
- provides temporary financial assistance to
member countries to help ease balance of
payments adjustments
- prevent crises in the system by
encouraging countries to adopt sound
economic policies and monitoring their
adherence to such policies
International Financial Institutions and
Global Regional Issues
1. Legitimacy- IFIs are perceived as
impartial advisers, given that their
ownership structure and their policy making
powers are skewed in favor of the rich
nations.
2. Effectiveness- relate to the adequacy of
the results produced by IFIs development
assistance programs, the soundness of
their policy advice.
3. Conditionality- a standard feature of the
loans provided IFIs.
- the actions that a borrower must take in
order to obtain the loan; failure to comply
with these conditions may result in
suspension, cancellation, or recall of the
loan.
4. Financial Capacity and Sustainability-
IFIs’ income base is narrow and
diminishing, even as the range of services
demanded of them is growing
"Oil Embargo"
-official ban ang oil against US ng (OAPEC)
Organization of Arab Petroleum
Exporting Countries
-Humkepor War: US supports Israel-
kaaway ng Arab countries na kasama sa
OAPEC
-effects in global economy:
-tumaas ang presyo ng oil sa US, mababa
ang supply.
GATT- General Agreement on Tariffs and
Trade
-1947: to strengthen international trade, to
reduce tariffs and trades; after Bretton
World System
-established by a multilateral agreement
regulated international trade
- covers only trade in goods
- has appellate body to review findings and
settle disputes
WTO- World Trade Organization
-1995: to govern international trade
- covers trade in goods and services

-affects US that is industrialized country - disputes are fixed by using multilateral

systems
-ends Bretton Woods System
-nagkaroon ng stagflation- "stagnation"
and "inflation" Two types of Economies

- decline in economic growth and 1. Trade Liberalization- reducing or

employment taking place alongside a sharp abolish trade barriers (tariffs- required fees
increase in prices. on import and export of goods)

-sluggish economy, mabagal ang pagalaw 2. Protectionism- protecting one's

ng economy, mataas ang unemployment economy from foreign competition by
rate, mataas ng overall price creating trade barriers (North Korea, Old
China, Japan).
- not predicted by Keynesianism economist

Neoliberalism- Friedrich Hayek and

Hilton Friedman- free markets
“Economic growth is key to progress and
that govt must not intervene in the activities
of markets and capitalist”
-minimal government spending
-privatization- umusbong ang oligarchy
- Washington Consensus