LESSON 1  It has only just begun, but we are already

vastly under prepared for it (Klaus Schwab)

RELEVANCE OF THE COURSE – Studying the
GLOBALIZATION SCHOLARS – They view the
outside world is a cure to parochialism. This
process through various lenses that consider multiple
expansion of one’s ethical horizon is what it means to
theories and perspective (interdisciplinary approach)
be a global citizen. You will be haunted by “Ghost of
Comparisons” (Jose Rizal) MANFRED STEGER

GLOBALIZATION – Primarily an Economic  Expansion – both the creation of new social

Process. It is the increased of interconnectedness and networks and multiplication of existing
interdependence of peoples and countries. The two connections that cut across traditional
interrelated elements are: political, economic, cultural and geographic
boundaries
 The opening of international borders to
 Intensification – refers to stretching and
increasingly fast flow of goods, services,
acceleration of these networks. Not only are
finance, people, and ideas
global connections multiplying, but they are
 The changes in institutions and policies at
also becoming a closely knit and expanding
national and international level that facilitate
their reach.
and promote such flows
THOMAS FRIEDMAN
GLOBALIZATION 1.0
 The inexorable integration of markets,
 Started at year 1492 – 1800
transportation systems and communication
 “Age of Voyages” pioneered by Ferdinand
systems to a degree never witnessed before –
Magellan
in a way that is enabling corporations,
 Trading and Migration are some elements of
countries and individuals to reach around the
globalization
world farther, faster, deeper and cheaper than
GLOBALIZATION 2.0
ever before.
 Began in the 1820s (late 19th to early 20th ARJUN APPADURAI
century)
 Avoid talking about globalization as just one
 Industrial Revolution – the machinery was
whole process at a large scale but to discuss
introduced to a man, caused culture shock,
“multiple globalization”
and led to widespread globalization.
o Ethnoscape – refers to the global
 Economies and cultures grew very quickly
movement of people
GLOBALIZATION 3.0
o Mediascape – flow of culture
 2000 to present o Technoscape – refer to the circulation
 The term globalization has established its of mechanical goods and software
current meaning. It becomes a strategy and o Financescape – denotes the global
phenomenal in a sense that they have never circulation of money
been experienced substantial interconnected o Ideoscape – realm where political
and interdependence before ideas move around
GLOBALIZATION 4.0

 “Kingdom Starter” – forming of groups of

countries
 LESSON 2
GLOBALISM – Widespread ideology/ belief that
the global integration of economic market is
beneficial to everyone since it spreads freedom and
democracy across the world
EMERGENCE OF GLOBAL TRADE
 When there is continuously exchange of
products with each other directly or indirectly
 When there were values sufficient to generate
lasting impacts on all trading partners
REASON FOR TRADE
 Greater Variety of Good and Services
 Economic Growth and Development
 Flow of New Ideas
 Needed Resources Acquired
 Increased Competition and Efficiency
 Reduction of International Hostilities
ECONOMIC GLOBALIZATION – Historical
process representing the result of human innovation
and technological progress. Characterize by a drastic
economic change throughout the world and an
increasing interdependence of world
NEW ECONOMY
 The interconnections of various components
of production depends on favorable factors
such as cheap labor, raw materials, skilled
labor, and market consumer
TWO DRIVING FORCES OF ECONOMIC
GLOBALIZATION
 The rapid growing significance of information
in all types of productive activities
 Marketization – introduction of competition
into the public sector
FREE TRADE
 Engine of Economic Globalization which
allows the use of technological advances and
differences between regions
 Minimize trade barriers such as capitals
moves freely and ensures smooth movement
of resources, goods, and services
HIGH FREQUENCY TRADING
 A method of trading that uses powerful
computer programs to transact a large number
of orders in fractions of a second
MULTINATIONAL CORPORATION
 large and powerful organizations that feature a
worldwide business presence and direct
investments in foreign countries
INTERNATIONAL TRADING SYSTEM – a Play
a significant role in the development of the
industrialized world. It is a trade within a continent.
THE SILK ROAD
 Oldest known international trading system
 A network of pathways in the ancient world
(China to Middle East and Europe)
 Han Dynasty (130 BCE) until Ottoman
Empire (1453 BCE)
FORMS OF GLOBALIZING TRADE – Known as
Intercontinental trade for it has a definite oceanic
route
THE GALLEON TRADE
 Established in 1571 that connected Manila
and Acapulco Mexico
 Role of Filipino are slaves, they become sole
means of communication however it serves as
the age of enlightenment for ilustrados they
use the galleon ship as a means of
transportation to study in Europe
AGE OF MERCANTILISM
 Began in the 16th century to 18th century, it is
the continuation of galleon trade
 It is a system of global trade with multiple
restriction such as increase of taxes
  It has a “Sell more and Buy less or Export
more and Import less” policy to boost their
country’s income (called monetary reserves
later on)
GOLD STANDARD
 Adopted at an International Monetary
conference in Paris by the UK, US and other
European countries.
 Main goal was to create a common system
that would allow for more efficient trade and
prevent isolationism of the mercantilist era.
 Established a common basis for currency
prices and a fixed exchange rate system based
on the value of gold
 Restrictive system that compelled country to
back their currencies with fixed gold reserves
GREAT DEPRESSION (1920 -1930) further
emptying government coffers and was largely caused
by the gold standard because the governments’
capacity to print money and increase the money
supply was severely curtailed It is the worst and
longest recession experience by the western world
RECOVERY OF THE UNITED STATES began
when the gold standard was abandoned in the early
20th century that enable US government to free up
money to spend on reviving the economy. Indirect
version of gold standard was used until late 1970s
FIAT CURRENCIES
 Floating currency is pioneered by European
countries for they have low gold reserves
 It is a currencies that are not backed by
precious metals and whose value
determined by their cost relative to other
currencies
 System that allows governments to freely and
actively manage their economies
increasing or decreasing the amount of money
in circulation as they see fit.
THE BRETTON WOODS SYSTEM – The
landmark system for monetary and exchange rate
management. Developed at the UN Monetary and
Financial Conference held in Bretton Woods, New
Hampshire, from July 1 to July 22, 1944 that has a
delegate from 44 countries.
KEYNESIAN THEORY
 Economic crises occur not when a country
does not have enough money, but when
money is not being spent and thereby, not
moving
 Global Keynesianism – anchored active role
of the government in managing spending
when economies slow down.
o Designers of the system: John Maynard
Keynes, of the UK, Harry Dexter White,
the Chief International Economist of the
Treasury Department.
 It became fully functional when currencies
became convertible in the year (1958)
 In order to convert currencies, countries
settled their international balances in dollars.
INTERNATIONAL MONETARY FUND
 The global lender of last resort to prevent
countries from spiraling into credit crises
 Introduced in December 1945 that is signed
by 29 members of the Articles of Agreement
WORLD BANK
 Old name of world bank is “International
Bank for Reconstruction and
Development”
is  Set up to provide financial assistance for
countries during the reconstruction post
World War II phase
FALL OF BRETTON WOOD SYSTEM
by
 The 1973 oil crisis – Organization of the
Petroleum Exporting Countries imposition of
oil embargo to US and other countries
  Overvaluation of the US dollar and increased
corruption in governments
NEOLIBERALISM
 Friedrich Hayek and Milton Friedman stated
that the government’s intervention
economies distort the proper functioning of
the market. A phenomenon called stagflation,
in which a decline in economic growth and
employment and a sharp increase in prices
 Known as “Shock Therapy” since it affected
certain industries thus die
 1980s – 2000s it became the codified strategy
of U.S Treasury Department, World Bank,
International Monetary Fund, and World
Trade Organization – a new organization
founded in 1995 to continue the tariff
reduction under the GATT.
THE NEW WASHINGTON CONSENSUS
 Its advocates (Reagan and Thatcher) pushed
for minimal government spending to reduce
government debt.
 Privatization of government-controlled
services like water, power, communications
and transport believing that the free market
can produce the best results.
 They pressured governments, particularly in
the developing world to reduce tariffs and
open up their economies arguing that is the
quickest way to progress.
GLOBAL FINANCIAL CRISIS
 1990s, the IMF called for the immediate
privatization of all government industries.
Which would free industries from corrupt
bureaucrats and pass them on to the more
dynamic and independent private investors.
That resulted to oligarchy
 Government authorities failed to regulate bad
investments. The US housing market, made
Americans built houses beyond their financial
capacities
 To mitigate the risk of these loans, bank that
were lending investors’ money pooled these
mortgage payments and sold them as
“mortgage-backed securities. There were
surplus of money and home prices stopped
in increasing as supply caught up with demand.
In their haste to issue these loans, the bank
became less discriminating that they began
extending loans to individuals with dubious
records
LESSON 3
MARKET INTEGRATION – The fusing of many
markets into one. Occurs when group of goods often
move proportionally to each other and when prices of
related goods among different locations follow
similar patterns over a long period of time
DEGREE OF INTEGRATION
 Ownership Integration – when all the
decisions and assets of a firm are completely
assumed by another firm
 Contract Integration – involves an
agreement between two firms on certain
decisions
REASONS FOR MARKET INTEGRATION
 To remove transaction cost
 To foster competition
 To improve security of supplies
 To provide better signals for optimal
generation and consumption decisions
TYPES OF MARKET INTEGRATION
 Horizontal Integration – occurs when a firm
or agency gains control of other firms
performing similar marketing functions at the
same level in the marketing sequence (Red
Ocean Strategy)
o Mergers – joining of two similar
sizes, independent companies to make
one joint entity
 o Acquisition – the purchase of another LESSON 4
company
GLOBAL GOVERNANCE – The governing of all
o Hostile Takeover – acquisition of the
the government. It is an international process of
company which does not want to be consensus-forming that generates guidelines and
acquired agreements in which global affairs are managed
 Vertical Integration – can be manifested in a typically involves a range of actors including states as
company that operates in the production well as regional and international organizations.
process of the same industry
o Backward Integration – company
that supplies the products or services
needed for the product (raw material,
SOURCES OF GLOBAL GOVERNANCE
manufacturing, labor)
o Forward Integration – only has a  Treaties – done when states sign and form

physical store to reach his customer organizations which is binding at international

o Balanced Vertical Integration – a law. It is the process legislating international

law (International rules that govern
combination of forward and backward
interactions between states)
integration
o Multilateral – enacted through UN
 Conglomeration – describes the process by
Conventions
which a parent company begins to acquire
o Bilateral – agreement between two
subsidiaries; a company that diversifies
countries only
GLOBAL MARKET INTEGRATION – Comes
along with the globalization 2.0. It revolutionizes GAPS IN GLOBAL GOVERNANCE

every movement of man. These connected the  Knowledge Gaps – failure to identify and
world’s ports to each other. recognize the existence of a problem.

 Means that price differences between  Normative Gaps – failure to develop rules

countries are eliminated as all markets and laws to address the problem.

become one  Policy Gaps – failure to implement rules and

 Promotes economic integration which can laws.

reduce the cost of trade, improve the  Compliance Gaps – failure among the

availability of goods and services, and constituents to adhere to the policies

increase consumer purchasing power in  Institutional Gaps – failure to establish

member nations image and the advocacies of the institution.

 Employment opportunities tend to improve GLOBAL INTERSTATE SYSTEM

because trade liberalization leads to market
 30 years religious war in the Kingdom of
expansion, technology sharing, and cross
West that resolve in a treaty called “Treaty of
border investment
West Phalia”
ORDER IMBALANCE – occurs when a market
 First major challenge of Westphalian System
exchange receives an excess of buy or sell orders for
is Napoleon Bonaparte for he believed that
a specific commodity, making it impossible to match
liberty, equality, and fraternity. Every country
the orders of buyers and sellers
he conquered he implemented the Napoleonic
 Code that forbade birth privileges, encouraged
freedom or religion, and promoted
meritocracy in government system
 Internationalism is a political principle that
advocates greater political or economic
cooperation among states and nation
 Immanuel Wallerstein propose the Modern
World-System (to serve and protect the
interest of the capitalist based on unequal
division of labor) wherein he categorized the
three-tiered structure of the Global Interstate
System (Core, Semi-Periphery, Periphery)
o Structure politically of human
interactions is a structure of competing
and allying states
FEATURE OF GLOBAL INTERSTATE
SYSTEM
 Their relation to other state should have
collapsing stratification because the treatment
of GIS is equal (sovereign equality)
 They should be politically an independent
country
 Balance of Power- forming of alliances and
maintaining social status
ATTRIBUTES OF TODAY’S GLOBAL
SYSTEM
 Countries or states are independent and
govern themselves
 Countries interact with each other through
diplomacy
 International organizations like UN facilitate
these interactions
 Beyond simply facilitating meetings between
states, international organization also take on
lives of their own
NATION
 They do not go beyond a given official
boundary because rights and responsibilities
are mainly the privilege and concern of the
citizens of that nation.
 They limit themselves to people who have
imbibed a particular culture, spoke a common
language, and live in a specific territory.
 Nation allows one to feel a connection with a
community of people even if he/she will never
meet all of them in his/her lifetime
ELEMENTS OF STATE
 It exercises authority over a specific
population called its citizens
 It governs a specific territory
 State has a structure of government that
crafts various rules that society follow
 The state has sovereignty over its territory
o Internal Sovereignty – no individuals
or group can operate in a given
national territory by ignoring the state
(supreme authority)
o External Sovereignty – means that
state’s policies and procedures are
independent of the interventions of
other state (not controlled by any
nation)
INTERNATIONAL ORGANIZATIONS (IOs) -It
is primarily made up of member-states. Help to fulfill
global government. Fallacy about NGO’s is that they
are merely talk-shop and venues of contracting and
intersecting agendas of countries however they can
become influential and powerful enough to stand
alone.
POWERS OF IOS
 Power of Classification – IOs can invent and
apply categories in which they invent
powerful global standards
 Power to Diffuse Norms – IOs spread their
ideas across the world thereby establishing
global standards (norms are aceppted codes pf
conduct that may not be strict law)
 Power to Fix Meanings – States and
organizations view IOs as legitimate sources
 of information. As such, the meanings they  The UN’s central platform for discussion on
create have effects on various policies sustainable development. Principal body for
coordination, policy review, policy dialogue,
5 ORGANS OF UNITED NATIONS
and recommendations on social and
GENERAL ASSEMBLY environmental issues, as well as the
 UN’s main deliberative policymaking and implementation of internationally agreed

representative organ. development goals. (Planet, Power, Profit)

 Decisions on important questions, such as  It has 54 members elected for three-year

those on peace and security, admission of new terms.

members and budgetary matters require two-

thirds majority of the GA (UN Charter).
 The GA elects the president to serve a one-
year term of office. All member states INTERNATIONAL COURT OF JUSTICE
(currently at 193) have seats in the GA.
 Whose task is to settle in accordance with
 The Philippines played a prominent role in the
international law legal disputes submitted to it
GA’s early years when Filipino Diplomat
by states
Carlos P. Romulo was elected president from
 They give advisory opinions referred to it by
1949-1950.
authorized UN organs and specialized
UN SECURITY COUNCIL agencies.
 The court as such cannot try individuals
 The most powerful organ to the UN. Consists
(International criminal cases are heard by the
of 15 member states, in which the GA elects
International Criminal Court), which is
ten of these 15 to two-year terms. The other
independent of the UN).
five-sometimes referred to as the Permanent 5
 Its decisions are only binding when states
(P5) – China, France, Russia, the United
have explicitly agreed to place themselves
Kingdom and the United States.
before the court’s authority.
 They lead in determining the existence of a
 The SC may enforce the rulings of the ICJ,
threat to the peace or an act of aggression and
but this remains subject to the P5’s veto
calls upon the parties in dispute to settle the
power.
act by peaceful means and recommends
methods of adjustment or terms of settlement. UN SECRETARIAT
 They can resort to imposing sanctions or even
 Consists of the Secretary –General and tens of
authorizing the use of force to maintain or
thousands of international UN staff members
restore international peace or security.
who carry out the day-to-day work of the UN
 States that seek to intervene militarily in
as mandated by the General Assembly and the
another state need to obtain approval of the
other principal organs.
Security Council.
 It is the bureaucracy of the UN, serving as a
 P5 holds veto power over the council’s
kind of international civil service.
decision and it only takes one veto vote to
 Members of the secretariat serve in their
stop an SC action dead in its track
capacity as UN employees and not as state
ECONOMIC AND SOCIAL COUNCIL representatives.
CHALLENGES OF THE UNITED NATION –
UN is not a world government and its functions
primarily because of voluntary cooperation from
states
COOPERATION AMONG MEMBER STATES
 If states refuse to cooperate, the influence of
the UN can be severely circumscribed
PROMOTION OF INTEREST OF COUNTRIES.
 They are finding formula that would give
major powers a greater role in the UN while
still recognizing the need of all country to
have a voice. They are finding answers on
how to accommodate the national self interest
of large and small powers
INTERNATIONAL PEACEKEEPING
 The UNSC is tasked with authorizing
international acts of military intervention.
 Because of the P5’s veto power, it is tough for
the council to release much more to
implement a formal resolution.
The Brandt Line was developed by Willy Brandt in
1980s as a way of showing how the world was split
into relatively richer and poorer nations.
LESSON 5
GLOBAL NORTH AND GLOBAL SOUTH
 Describes a grouping of countries along socio-
economic and political characteristics.
o differing levels of wealth and income
o political and economic freedom
 The terms the North and the South are
alternative designations for developed and
developing countries
CHARACTERISTICS OF GLOBAL NORTH
 Established Government and Wealth
 Technological Advancement and Political
Stability
 Aging Population and Zero Population
Growth
 Dominance of World Trade and Politics
Mostly correlates with the Western world with
notable exceptions (America, Canada, Japan, Europe,
South Korea, Singapore, Australia, New Zealand)
CHARACTERISTICS OF GLOBAL SOUTH
 Most of these countries are low-income and
often politically or culturally marginalized on
one side of the divide
 Described as newly industrialized or in the
process of industrializing
 They are frequently current or former subjects
of colonialism
 Tend to be characterized by turmoil, poverty,
anarchy and tyranny.
Term often used to identify regions within Latin
America, Asia, Africa and Oceania (Philippines,
Malaysia, Haiti, Lebanon, Chad, Brazil)
GLOBAL SOUTH ORIGINS
 The presidents of Egypt, Ghana, India,
Indonesia and Yugoslavia created the Non-
Aligned Movement in 1961 to pursue
international cooperation, human rights,
national sovereignty, racial and national
equality, non-intervention and peaceful
conflict resolution. (120 member countries)
 Countries that formed regional blocs to
protect their independence from pressures of
superpower politics
 Non-aligned because they refused to side with
either the Capitalist Western Europe and
North America or Communist Eastern Europe.
 Lack the burning desire, loyalty, sense of
belongingness (fervor) to keep the block alive
LESSON 6
REGIONALIZATION the process through which
geographical regions become significant political
and/or economic units serving as the basis for
cooperation and identity. REGIONALISM – a NON-STATE REGIONALISM
phenomenon on the clustering of environmental,
 It is not only states that agree to work together
economic, social and governmental factors. It
in the name of a single cause. Communities
emphasizes the geographical region as the unit of
and non-governmental organization also
analysis, stressing interrelationships and functions
engage in regional organizing. The “new
within the geographic region (W.P Scott).
regionalism” varies in form:
CHARACTERISTICS OF REGIONALISM o There are tiny associations that
include a few actors and focus on a
 Local Identity – citizens feel pride in the
single issue or huge continental unions
local culture of its people
that address a multitude of common
 Autonomy – results to more power to
problems from territorial defense to
administer economic resources and modify
food security.
fiscal policies
 Psychic Phenomenon – prohibits people REASONS IN THE FORMATION OF
from other regions to be benefitted by a REGIONAL ASSOCIATIONS
particular region
 For Military Defense
FERVOR  Countries come together to pool their
resources together, get better returns for their
 The expression of a common sense of identity
exports, as well as expand their leverage
and purpose combined with the creation and
against trading partners
implementation of institutions that express a
 Economic crisis compels countries to come
particular identity and shape collective action
together. (to cope up with globalization)
within a geographical region.
CHALLENGES TO REGIONALISM
OLD REGIONALISM
 The Resurgence of Militant Nationalism and
 The first coherent regional initiatives began in
Populism
1949, 1950s and 1960s (NATO, Warsaw Pact,
Regional Networks, European Commission)  Continuing of Financial Crisis

 They are more oriented toward interactions  Concept of Sacrificing Sovereignty for

between states, planned allocation resources Regional Stability

led by government  Different Visions of What Regionalism

Should be for
NEW REGIONALISM
BENEFITS OF REGIONALISM
 Began in the late 1980s and continues still.
 A new wave of political initiatives prompting  Cooperate in setting exchange rate and

regional integration that took place worldwide macroeconomic policies to minimize the effects

during the last two decades. The idea that lies of regional and global shocks and to facilitate the

behind this increased regional identity is that resolution of global imbalances.

as a region becomes more economically  Pool the region’s foreign exchange reserves to

integrated, as well as politically integrated make more resources available for investment

 Export oriented and a market allocation of and development;

resources led by private firms

 Contribute to the efficiency of global financial Indonesia, Malaysia, Singapore, Philippines and
markets; Diversify sources of global demand Vietnam.
helping stabilize the world economy;
 The Southeast Asian ‘tigers’ had some
 Create regional mechanisms to manage cross
similarities to their East Asian counterparts
border health, safety and environmental issues
including close ties between the state and
better.
business elite, some degree of autonomous
 Generate economic growth, new ideas,
decision-making structure, and the rise of
competition and raise income across the world;
manufacturing.
 Provide leadership to help sustain open global
 However, the Southeast Asian economies also
trade and financial systems
became more reliant on infusions of foreign
FACTORS LEADING TO A GREATER capital, based on fixed exchange rate policies
INTEGRATION OF THE ASIAN REGION and corresponding investments and returns

 Trade - global trade facilitates what we need

from other parts of the world and vice versa LESSON 7
 Similar Culture – The cultures of Asia is
MEDIA – a means of conveying something, such as
diverse but these share many things. This
channel of communication (Jack Lule). The
makes it an easier fit during times of
technologies of mass communication
negotiations.
 Common Goals – The Asian recognized the FUNCTIONS OF MEDIA
mutual benefit of a slow integration
 Media reshapes societies but they also dull the
ASIA PACIFIC – refer together to the regions of user’s communicative properties and make
East (or Northeast) Asia, South and Southeast Asia, them more prone to multitasking
and the Pacific Islands.  The TV was turning the world into a Global
Village because as more and more people sat
ASIA PACIFIC ECONOMY
down in front of their TV sets and listened to
 The Asia Pacific area makes up nearly a third the same stories, their perception of the world
of the world’s land mass and two-thirds of the would contract (Jack Lule)
global population.
GLOBALIZATION AS A FORM OF
 The combined economies of the region now
COLONIZATION – creates an avenue where the
generate the largest share of global GDP
fraternization of cultures become possible.
(gross domestic product) at 35% , compared
with Europe (28%) and North America (23%)  fast paced import/export of products and
-(Asian Development Bank, 2012). services; the prevalence of are some of the
 It also accounts for just over a third of total obvious manifestations of this diffusion of
world exports of merchandise goods up from cultures.
a quarter in 2001 (Asian Development Bank,
THE GLOBAL SPHERE AND CULTURAL
2012).
IMPERIALISM
RISE OF THE SOUTHEAST ASIAN TIGERS – The
 Cultural globalization then is simply
success of the East Asian economies was followed in
euphemism for “Western Cultural
the late 1980s and 1990s by the high-flying growth of
Southeast Asian countries including Thailand,
 imperialism” since it promotes “homogenized,
westernized, consumer culture.” (Tomlinson)
 Consumerism – An American capitalist value
which encompasses the belief that personal
wellbeing and happiness depends to a very
large extent and level of personal
consumption, particularly on the purchase of
material goods. (Herbert Schiller)

MOVEMENTS DEDICATED TOWARD

OPPOSING ACCEPTANCE OF FOREIGN
CULTURES

 Contra- flows – dedicated towards opposing

the blind acceptance of foreign cultures.

 Hybridization / Cultural Hybridity –

highlights the interface of globalization and
localization as traditions and other cultural
forms diffused with the mainstream.

o Mixing previously separate cultural

systems – mixing elite art of opera
with popular music

o Deterritorialization of cultural
processes from their original physical
environment to new contexts,

o Impure cultural genres that are

formed out of mixture of several
cultural domains.

SOCIAL MEDIA EFFECTS

 Media have enabled users to be consumers

and producers of information simultaneously
 Splinternet – The segregation of the internet
into smaller groups with similar interests, to a
degree that they show a narrow-minded
approach to outsiders or those with
contradictory views.
 Cyberbalkanization – This hires armies of
social media to manipulate public opinion
through intimidation and spreading fake news.

LESSON 8