Philippine State College of Aeronautics

Basa-Palmayo Campus Floridablanca, Pampanga

PRELIM MODULE 1

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 CLO
CLO 1. Distinguish different
interpretations of and
approaches to globalization
CLO 3 Analyze the various
contemporary drivers of
globalization
CLO 4. Understand the issues
confronting the nation-state
MLO
1. Demonstrate familiarization
and understanding on
Globalization
2. Understand the Global
Economy
3. Identify Global Actors
4. Describe and explain
Market Integration
TLO
TLO1. Define globalization
TLO 2. Differentiate the competing
conceptions of globalization
TLO 3. Identity the underlying
philosophies of the varying
definitions of globalization
TLO 4. Define economic
globalization
TLO 5. Identify the actors that
facilitate Economic globalization.
define the modern world system.
TLO 6. Articulate a stance on global
economic integration
TLO 7. Define Market Integration
TLO 8. Discuss the global market
integration
TLO 9. Explain the role of globalization
in the integration of market
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 TABLE OF CONTENTS

TOPICS PAGE NUMBER TIME

ALLOTMENT
(in minutes)

Academic Honesty Clause 4

Globalization 5-6 78.6

Activity 1 (A) 7-8 60

Activity 1 (B) 8 60

The Global Economy 9 78.6

Global Actors 10-11 78.6

Activity 2 (A) 12 60

Activity 2 (B) 13 60

Market Integration 13-14 78.6

Activity 3 (A) 15 60

Activity 3 (B) 16-17 60

Reference 17

Assessment Rubric 18

Formative Assessment (Via Google Form) 60

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 Academic Honesty Clause
Plagiarism is the use or close imitation of the language and thoughts of
another author and the representation of them as one’s original work. (1995 Random
House Compact Unabridged Dictionary)
In the academe, it is an adaption or reproduction of an original intellectual
creation, be it concepts, ideas, methods, pieces of information or expressions of
another author, whether individual, group, or organization without proper
acknowledgment. Moreover, plagiarism can range from borrowing a particular phrase
or sentence to paraphrasing someone else’s original idea without citing it. The most
common form of plagiarism, especially nowadays, is copying and pasting online
material without crediting the source.
Every student must practice Academic Honesty. Academic misconduct is
subject to an academic penalty by the instructor and/or disciplinary sanction by the
College.
I _____________________________ fully understood the definition and description
of plagiarism stated above and I am familiar with the Student Conduct Code. I am
aware that I shall be penalized if plagiarism is found evident on my output/paper
which includes, gaining a failing grade.
As a college student and a member of scholarly community, I shall value
other people’s ideas. Thus, I pledged to commit to the following truthful
statements:
1. I shall not submit other people’s work and present them as my own.
2. I will not take any passages from their own previous work without adding
citations.
3. I will not rewrite someone else’s work without properly citing sources.
4. I shall not use quotations without citing the source.
5. I will not interweave various sources together in my work, without citing.
6. I will not rely too heavily on other people’s work.
7. I shall bring original thought into my own work.
8. I will not disclose any exams/questionnaires/activities after I have taken
them.
9. I will not copy any material from another student and submit it as my own.
10. I shall not share my own completed output to another class/student.

__________________________
(Signature over Printed Name)

REFERENCE:
https://courses.lumenlearning.com/suny-collegesuccess-lumen1/chapter/
academic-honesty/
https://www.business.umt.edu/ethics/academic-honesty.ph

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 Globalization

What is 'Globalization’?

In the advent of technologies, we see the growth on transports and

communications. This means, people and countries can exchange information and
goods in an easy way, this process is called "Globalization".

Globalization represents the global integration of international trade,

investment, information technology and cultures. Government policies designed to
open economies domestically and internationally to boost development in poorer
countries and raise standards of living for their people are what drive globalization.

In our World history, they introduce around centuries the idea of concept of
Globalization; traders explore to buy rare commodities such as salt, spices and gold,
which they would then sell in their home countries. The 19th century Industrial
Revolution brought advances in communication and transportation that have
removed borders and increased
cross-border trade. The Silk Road, when trade spread rapidly between China and
Europe via an overland route.

World Health Organization define Globalization, “the increased

interconnectedness and interdependence of people and countries, is generally
understood to include two interrelated elements: the opening of international borders
to increasingly fast flows of good services, finance, people and ideas: and the
changes in institutions and policies at national and international levels that facilitate
or promote such flows. Globalization has the potential for both positive and negative
effects on development and health.

Thomas Friedman defined globalization as, “as the inexorable integration of

markets, transportation systems, and communication systems to a degree never
witnessed before-in way that enabling corporation, countries, and individuals to
reach around the word farther, faster, deeper and cheaper than ever before, and in a
way that is enabling the world to reach into corporations, countries and individuals
farther, faster, deeper, and cheaper than ever before” Also,

Manfred Steger provided scholarly description in his Globalization: A Very

Short Introduction, “the term globalization should be used to refer to a set of social
processes that are thought to transform our present social condition into one of
globality.”

In simple economic concept, the flow of products and services with few
barriers in the integration of market, investment and trade between nation. At some
point, culture is also assimilated and trade as they exchange of ideas and traditions

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by trading. The spread of Korean pop culture across will advance the exchange of
ideas, art, language and music like other millennials experiencing nowadays are
some of the best examples. Globalization across the borders makes people and
goods to move easily in the different nations.

Globalization is an event occurred in unprecedented pace and gives definition

to the world's market. It is still a public debate whether it is beneficial or detrimental
most especially to the average citizens. It may direct or indirectly affect everyone,
but not everyone gets the same benefits. The more stretches and intensified, the
more backlashes produce to those people who cannot keep on the same. Standards
of living have risen overall as more third world countries experience industrialization.
Other proponents believe that globalization is the way to catch up for developing
countries, because it allows them to cooperate with other nation like never before.
The presence of multinational company will of great contribution especially to local
economies as they invest in local products, resources, services, medical and
educational facilities.

Globalization brought many benefits to other people but to others, it is not to

everyone. It shows that, in fact, in all but a couple of countries polled, people believe
life was better in the old days. If the other country produces cheaper product, other
producers will be closed down and leads to loss of thousand jobs to others. Every
step forward especially in technology it also brings a new danger. Example,
Technology improves the lives of many people, but also increases the number of
crimes every year.

Globalization has contributed to global warming, climate change and the

overuse of natural resources. An increase in the demand for goods has boosted
manufacturing and industrialization. Globalization has also increased
homogenization in countries. Some politicians argue that globalization is detrimental
to the middle class, and is causing increasing economic and political polarization to
developed countries. For example, outsourcing facilities in lower cost that leads
workers to compete internationally for jobs. Also, international chain from developed
country dominate the cultural exchange because their goods and culture influenced
other countries more than those of any other nation. Good or bad, though, there isn't
much argument as to whether or not it is happening. Let's look at the positives and
negatives of globalization, and you can decide for yourself whether or not it is the
best thing for our world.

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ACTIVITY 1:

Name: __________________________ Score: ___________________

Course: _________________________ Date: ____________________

A. GLOBALIZATION: ADVANTAGES AND DISADVANTAGES

Scenario Positive Negative Depends

Scenario A: In your local town, one of the main sources of employment for three
generations has been the fruit cannery. The company has recently decided to close
the factory and outsource the canning of fruit to another country where labor and fruit
are cheaper.

Scenario B: Your friend's garage band has really taken off on YouTube and people
from places as distant as Finland and Ghana are downloading it.

Scenario C: You meet someone really nice while you're on holiday in Bali and can
now keep in touch via Skype.

Scenario D: The shoes that you really like are much cheaper via an online shop in
America.

Scenario E: The Australian Government is being pressured to decrease the current

annual minimum quota of 55% Australian television programming (between 6 am
and midnight) to 40%.

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Scenario F: The Company that your father works for has recently been taken over
by a transnational corporation with job opportunities in many parts of the world if he
is prepared to move/relocate.
Scenario G: A representative from World Wildlife Fund invites students to become
involved in and advocate to help the secure the future of orang-utans.

Scenario H: Your mother’s superannuation fund has been affected by the Global
Financial Crisis and she is worried that she won't have enough money when she
retires

Share your responses with the class. Try to tease out the complexities of each
situation and ensure you understand that globalization affects local communities in
complex and interdependent ways.

B.True or False

Direction: Write your answers before the number.

1. World Health Organization define Globalization, “the increased

interconnectedness and interdependence of peoples and countries.
2. Thomas Friedman defined globalization as, “as the inexorable integration of
markets, transportation systems, and communication systems to a degree
never witnessed before
3. Exchange information and goods in an easy way, this process is called
"Globalization"
4. Globalization is an event occurred in unprecedented pace and gives definition
to the world's market.
5. Globalization has contributed to global warming, climate change and the
overuse of natural resources
6. Some politicians argue that globalization is detrimental to the middle class,
and is causing
increasing economic and political polarization to developed countries.
7. United Nations defines Economic globalization as "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
8. In economic globalization, companies seek the greatest possibility of efficient
and maximized profits that will involve many regions and localities to “global
production”.
9. The rapid growing significance of information in all types of productive
activities and marketization are the two major driving forces for economic
globalization”
10. The United Nation, founded at the Bretton Woods Conference in 1944, is the
official organization for securing international monetary cooperation.

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 The Global Economy
Countries trade with each other due to the lack of resources and cannot satisfy
their own needs and wants. As the countries developed their resources and they
trade it for the resources they need. Many years ago, when the other countries
travelled a distance to trade, as it is very evident that international trade play
significant role in the development of industrialized world. Imports of goods and
services happen maybe for better or cheaper quality, appealing goods or no
alternatives exist. In this lesson, we will begin with economic globalization and global
actors that facilitate the economic globalization.

United Nations defines Economic globalization as “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. It reflects the continuing expansion and mutual integration of market
frontiers, and is an irreversible trend for the economic development in the whole
world at the turn of the millennium. The rapid growing significance of information in
all types of productive activities and marketization are the two major driving forces
for economic globalization"

According to Dennis O. Flynn and Arturo Giráldez, "Global trade emerged when;
1) all heavily populated continents began to exchange products continuously - both
with each other directly and indirectly via other continents - and 2) did so in values
sufficient to generate lasting impacts on all trading partners (“Globalization Began in
1571. p2)

In economic globalization, companies seek the greatest possibility of efficient and

maximized profits that will involve many regions and localities to “global production”.
Many believe that the new technology will allow the intense movement of
information, goods, services and people can create an environment of “new
economy” increasing the networks in global production, free trade and capital. The
interconnections of various components of production, where the stages in
production takes place in different location depends on the favourable conditions
such as cheap labor, raw material, skilled labor and market consumer.

Free trade will be necessary condition for the development of production

networks. Minimizing trade barriers and ensure smooth movement resources, goods
and services. The engine of globalization which allows the use of technological
advances and differences between regions. Technology that can bring innovations
for economic development and growth. Technological change and deregulation/
liberalization enabled the development of financial markets (capital moves freely) to
the extent that the financial markets began to dominate the global economy (the
majority share of the volume of past transactions comprises the speculative
investment).

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 GLOBAL ACTORS

Multinational Corporation

The multinational corporation is a business organization whose activities

are located in more than two countries and is the organizational form that defines
foreign direct investment. This form consists of a country location where the firm is
incorporated and of the establishment of branches or subsidiaries in foreign
countries (A. A Lazarus, 2001 p. 10197)

The International Monetary Fund

The International Monetary Fund (IMF), founded at the Bretton Woods

Conference in 1944, is the official organization for securing international monetary
cooperation. It has done useful work in various fields, such as research and the
publication of statistics and the tendering of monetary advice to less - developed
countries. It has also conducted valuable consultations with the more developed
countries.

North Atlantic Treaty

NATO is based on the North Atlantic Treaty, which provides the organization
a framework. The treaty provides that an armed attack against one or more of
NATO's member nations shall be considered an attack against them all.* NATO is
headquartered in Brussels, Belgium. The organization was formed in 1949. Many
nations joined NATO -even Iceland, the only member without a military force. The
organization was originally formed out of the fear that the Soviet Union would ally
military with Eastern European nations, i. e. the Warsaw Pact, and thus become a
threat to Western Europe and the United States.

World Trade Organization (WTO) International Monetary Fund (IMF), and the
World Bank

The World Trade Organization (WTO), the International Monetary Fund (IMF)
and the World Bank are the three institutions that underwrite the basic rules and
regulations of economic, monetary, and trade relations between countries. Many

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developing nations have loosened trade rules under pressure from the IMF and the
World Bank.

The domestic financial markets in these countries have not been developed
and do not have appropriate laws in place enable domestic financial institutions to
stand up to foreign competition. The administrative setup, judicial systems, and to
law-enforcing agencies generally cannot guarantee the social discipline and political
stability that are necessary in order to support a growth-friendly atmosphere.

As a result, most multinational corporations are investing in certain

geographic locations only. In the 1990s, most foreign investment was in high-income
countries and a few geographic locations in the South East Asia and Latin America.
According to the World Bank's 2002 World Development indicators, there are 63
countries considered to be low- income countries. The share of these low-income
countries in which foreign countries are making direct investments is very small; it
rose from 05 percent 1990 to only 1.6 percent in 2000.

The first half of the 20th century was marked by two world wars that caused
enormous physical and economic destruction in Europe and a Great Depression that
wrought economic devastation in both Europe and the United States. These events
kindled a desire to create a new international monetary system that would stabilize
currency exchange rates without backing currencies entirely with gold; to reduce the
frequency and severity of balance-of payments deficits (which occur when more
foreign currency leaves a country than enters it); and to eliminate destructive
mercantilist trade policies, such as competitive devaluations and foreign exchange
restrictions- all while substantially preserving each country's ability to pursue
independent economic policies. Multilateral discussions led to the UN Monetary and
Financial Conference in Bretton Woods, New Hampshire, U.S., in July 1944.
Delegates representing 44 countries drafted the Articles of Agreement for a
proposed International Monetary Fund that would supervise the new international
monetary system.

The framers of the new Bretton Woods monetary regime hoped to promote world
trade, investment, and economic growth by maintaining convertible currencies at
stable exchange rates Countries with temporary, moderate balance – of - payments
deficits were expected to finance their deficits by borrowing foreign currencies from
the IMF rather than by imposing exchange controls, devaluations, of deflationary
economic policies that could spread their economic problems to other countries.
After ratification by 29 countries, the Articles of Agreement entered into force on
December 27, 1945. The fund's board governors convened the following year in
Savannah, Georgia, U.S., to adopt bylaws and to elect the IMF’s first executive
directors. The governor decided to locate the organization’s permanent headquarters
in Washington, D.C., where its 12 original executive directors first met in May 1946.
The IMFs financial operations began the following year. (Lawrence McQuillian,
Encyclopedia Britannica, October 9, 2018)

In other words, the fast globalization of the world's economies in recent years
is largely based on the rapid development of science and technologies, has resulted
from the environment in which market economic system has been fast spreading
throughout the world, and has developed on the basis of increasing cross-border

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division of labor that has been penetrating down to the level of production chains
within enterprises of different countries.

ACTIVITY 2

Name: ________________________________ Date: ______________

Course: _______________________________ Score: ____________

Global economy in which we live

After the discussion the students will bring the following:

 Bring a favorite item of clothing to school
 Make a chart to show where their favorite clothing articles are produced
 Take a home survey to identify the country of origin of other common goods
 Use collected data to make a chart, graph, or map to illustrate the global
economy in which we live in.

Home survey

A. Directions: Take a home survey with your favorite item of clothing and
goods. Use a chart, graph or map to identify the country of origin of other
common goods.

Item:

Price:

Country:

Manufacturer:

Questions:

1. Which country has the largest products that has been produced in your
possession?

2. What are the nations why the country cited is leading in the mass production of
products

3. Give the advantages and disadvantages of mass production that is controlled by

any country

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 B. Direction: Name the different global actors and their functions

Organization:

International Monetary Fund (IMF):

Date founded:

Bretton Woods Conference in 1944:

Function:

Securing international monetary cooperation:

Market Integration
Market integration is the fusing of many markets into one Global market
integration means that price differences between countries are eliminated as all
markets become one way to the progress of globalization is to look at trends how
prices converge or become similar across countries. The time when the costs of
trading across the country fall and that is the time the other firm will take advantage
of price differences, other countries may enter the market of the other country.
Trading cost fall when new product invented or developed becomes cheaper and
also some costs are man-made like when they impose a barrier for trade.

In one market a commodity has a single price such as the price of rice would
be the same in east Pangasinan and west Pangasinan if these areas were part of
the same market. If the price of rice in west Pangasinan was higher sellers of rice
would move from the east to the west and prices would equalize. The price of rice in
one place to other might be different, though, and high transport costs and other
kinds of expenses might mean that it would be uneconomical for other sellers to
move their stocks to other place if prices were higher there. And for other markets,
the price changes for a long period of time,

Integration

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By the end of the 20th century globalization across most markets had returned to the
levels seen just before World War I. Today, markets are more integrated than ever
as transportation costs have continued to fall and most tariffs have been scrapped
altogether.

One vision of the future of globalization involves the elimination of other kind’s
barriers to trade used by institutional differences between countries, Markets are
embedded in institutions such as property rights. legal systems. And regulatory
regimes. Differences in institutions between countries create trading costs in the
same way that tariffs or distance do. For example, there may be different laws in
Kenya, China about what happens when a buyer fails to pay. This might make it hard
for a Chinese exporter to recover what it is owed in the event of a dispute, which
could make the firm reluctant to enter the Kenyan market. Despite the removal of
tariffs the world is far from being a single market. Borders still matter because of
these kind of institutional incompatibilities.Complete integration requires the ironing
out of legal and regulatory differences to create a single institutional space.

Some economists argue that this process is underway and inevitable, and that
global markets drive the harmonization of institutions across countries. Consider a
multinational firm choosing a country in which to locate its factory. In order to attract
the firm's investment, a government might cut business tax rates and loosen
regulatory requirements Other competing countries follow suit. The resulting lower
tax revenues make countries less able to finance welfare states and educational
programs. All policy decisions become oriented toward maximizing integration with
global markets. No goods or services would be provided that are incompatible with
this

This economic interest also became part of a political strategy that

transformed people into individual political economic subjects. In order to establish,
maintain and expand their domination the new states will make systematic use of
scientific knowledge with the aim of assessing and influencing the behavior of their
subjects. And they will do this assuming that people's behavior is mainly motivated
by interest Government now consciously wants to deal with the interests of
individuals in order to serve its own interest. Political economics will not only consist
of observing people's self-interested behavior, it will also promote it. The main issue
in the politics of states will be to figure out ways to anticipate what might happen in
order to influence economic expansion. The new politics will not only go together
with a reflection about the interest of the state but also implies that those in power
have to think differently about their individual roles in relation to and about the way
their personal motivation fits with the

According to Smith, it was no longer a question of teaching mankind what

must be done with reference to the next world, but rather to understand what the
human being actually is and what can be done in this world with humans as they
actually are. The social contract and the workings of society should be studied on the
basis of natural human (Bouchet: Adam Smith: Then & Now)

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ACTIVITY 3

Name ____________________ Course: _____________

Market Game

The students must bring the following:

Cartolina / Manila paper

Marker

Play money

A. Direction: The student will be given an exact amount of play money and they
will come up with a project output

Example:

Amount of Play Money (Php 2.496.00)

Project: Young at Heart (This project is a simple party for the Senior Citizen in Brgy.
Cadre)

Guide Questions:

1. Title of the project:

Score:

Date;

2. Beneficiaries:

3. Line Item Budget:

Items:

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Price:

The total must be the exact amount given by the teacher for the project

4. Possible impact of your Project

B. Direction: Choose the correct answer from the given options. Write your
answer before the number.

A. Trade

B. Culture

C. Security

D. Politics

1. Countries within the region create deals like cheaper tariffs to for easier
import/export

2. Countries within the region provide assistance in combating foreign-supported

terrorist groups

3. Leaders of countries within the region often perform social visits to talk
agreements despite differences and show solidarity and support to those they are in
agreement with

4. Citizens of countries within the region are generally alike in appearance,

temperament and experiences which can help in easing negotiations

5. The following are aspects of the Bandung View EXCEPT:

A. Tame the market corporations

B. Serve as the engine of development
C. Create states with little to no democratic participation in nearly all spheres of
governance
D. Express the general will

6. Which among the following bodies of the United Nations does NOT deal with
issues like international laws and disputes?

A. General Assembly
B. Economic and Social Council
C. Security Council
D. International Court of Justice

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7. What do we call the line that shows the "North-South" divide?

A Bentley Line
B. Barman Line
C. Brandt Line
D. Best Line

8. Many of the countries in the Global South were former

A. capitalists
B. colonies
C. monarchies
D. democracies

9. Globalization has forced isolated countries to establish international commerce

policies

A interact with others

B severe ties with others
C. compete with each another
D. attack each other

10. It is the branch or aspect of the United Nations that has the primary responsibility
for international peace and security

A Security Council
B. Economic and Social Council
C. General Assembly
D. International Court of Justice

REFERENCE:

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ASSESSMENT RUBRIC:

CRITERIA Exemplary Proficient Incomplete

10 points 5 points 3 points
Reflective Learning
Evidence of strong Evidence of some Little evidence of
reflective thought reflective thought reflective thought
pertaining to the topics pertaining to the topics pertaining to the topics
presented, with the presented, with few presented, with improper
correct usage of lapses in vocabulary. use of vocabulary.
vocabulary. Statements Statements are Statements did not meet
are beyond simply contained by just the expectations for the
answering the given simply answering the given the activity.
activity. given activity.

Total points __________

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