Jean Elisha Santos

DMD 2A
M1 Post-task: Essay on the History of Globalization

1. Based on the video below and your previous readings of the module, how did globalization come into
existence? How does the meaning of globalization vary in its 4 phases of development?
The interchange and incorporation of individuals, businesses, and governments from many countries
became a way to improve the economy of every nation. International commerce and investment fuel the process
of interacting with different nation which also help in forming bonds and alliances of countries.  This is
when Globalization came into coexistence, wherein economic progress is a result of the expansion of political
systems, culture, and the well-being of society's citizens.
Globalization went through different phases of growth and development that led us to modernized and
civilized community. During its first phase, there were only exchange of knowledge since it’s the age where
people started discovering and experimenting. The second phase is more on the improvement of
industrialization, scientific progress, communication, commerce, and transportation. Democracy is also the
focus of this phase of globalization. The third phase focuses on the long expansion of economic, global
financial stability, and internet connection. Today’s economy is also included in this phase.

2. What is your understanding of capitalism? How is capitalism compared to liberalism and neoliberalism?
Why does globalization require a country to adopt a liberal market economy?

Capitalism is a system that enables and supports property rights of profit-generating firms. Capitalism,
sometimes known as the market economy, is distinguished by private property rights, productive marketplaces,
the legal system, independently running financial industry, and a price setting system.
Capitalism encourages a private enterprise in which market forces such as demand and supply manage the
market without the government interference. This develops the market incentive and supports innovation. While
Neo-liberalism is a political ideology that asserts to evaluate the correlation between humanity and economics
and acknowledges that optimization of human advancement can be accomplished by generation of revenue of
the capitalists.
Foreign trade liberalization is by far the most probable strategy to enlarge the sector of the market, bring
about legal reform, and lower the relative size and scope of government. As domestic firms comply to
international trade rules and understand the value of the rule of law for economic advancement and social
development, trade generates dynamic advantages via the dissemination of new ideas and the development of
the society.