CONTEMPORARY WORLD
connections:
Chapter I. INTRODUCTION AND THE
CONCEPT OF GLOBALIZATION
What is CONTEMPORARY WORLD?
The present age deals with issues related to
environment, population, wealth, power, and
conflicts..
Why study CONTEMPORARY WORLD?
 Societies must be aware of
Contemporary World issues.
 Develop competencies and knowledge to
become aware of our roles and
responsibilities.
DEFINITION OF GLOBALIZATION
Globalization (Borderless) as defined by the
World Health Organization
Globalization is the increased
interconnectedness and interdependence of
people and countries due to the opening of
international borders to fast flows of goods,
services, finance, people and ideas, and
changes in institutions and policies.
THE BENEFITS OF GLOBALIZATION
Globalization has enabled economic,
cultural, and financial exchanges, allowing
people to become citizens of the world.
CHARACTERISTICS OF GLOBALIZATION
According to Held and McGrew (2002) a
Globalization has several distinguishing
characteristics.
 Creation and Multiplication of
connections:
Social network and cultural activities led to
the breaking of traditional norms and
practices in most communities.
 Expansion and stretching of connections:
Economic organizations have expanded
financial markets and trading around the
world.
Consciousness and awareness of
People are the primary actors in
globalization, influencing its outcomes and
markers.
ECONOMIC GLOBALIZATION
Trade, transformation and communication
spread globally to promote commerce.
2 TYPES OF ECONOMIES
 PROTECTIONISM
o Trade barriers protect the
economy from foreign
competition.
 TRADE LIBERALIZATION
o Reducing trade barriers to
make international trade
easier.
2 ways to make trade easier
FREE TRADE - Trade between
countries without tariffs or taxes.
TRADE BLOC - Agreement to
reduce or eliminate trade barriers.
INTERNATIONAL TRADE
The exchange of goods, services and
capital across national borders is a multi-
billion-dollar activity, allowing for greater
competition and competitive pricing.
2 KEY CONCEPT OF ECONOMIC
INTERNATIONAL TRADE”
 SPECIALIZATION
o Producing a limited scope of
goods to increase efficiency.
 COMPETETIVE
o An individual or group can
perform an economic activity
more efficiently than another.
RESULT OF COMPETITION
 More affordable product to
consumer.
 The economy of the world is affected
by supply and demand.
GLOBAL TRADING
International markets provide consumers
with access to goods and services not
available in their own countries.
FOCUSES OF TRADE POLICY
INTERNATIONAL TRADE:
 TARIFFS - Taxes or duties are paid
for imports or exports.
 TRADE BARRIERS - Government or
public authorities use measures to
make imported goods less
competitive.
 SAFETY Imported products should
be of high quality.
BRETTON WOODS SYSTEM
John Maynard Keynes believed that
economic crises occur when money is not
being spent and not moving.
2 FINANCIAL INSTITUTIONS:
 INTERNATIONAL BANK FOR
RECONSTRUCTION AND
DEVELOPMENT (WORLD
ECONOMIC BANK)
- responsible for funding postwar
reconstruction projects.
 INTERNATIONAL MONETARY
FUND
- Global lender to prevent credit crises.
ATTRIBUTES OF GLOBAL SYSTEM
 Countries or states are independent
and govern themselves;
 These countries interact with each
other through diplomacy;
 International organizations facilitate
these interactions, and
the
 International organizations also take
on lives of their own.
STATE
A state is a compulsory political
organization with a centralized government
that maintains the use of force.
CHARACTERISTICS OF A STATE
IN  POPULATION
 TERRITORY
 GOVERNMENT
 SOVEREIGNTY
NATION
Organic ties between people based on
ethnicity, language, and religion.
CHARACTERISTICS OF NATION
 ETHNICITY
 LANGUAGE
 RELIGION
 CULTURE
INTERSTATE SYSTEM
IGOs promote collaboration among nation-
states, allowing states to be defined through
their relationship to other states or
participation in the world economy.
PURPOSE OF INTERSTATE SYSTEM
International collaboration promotes peace
and security through educational and
cultural reform, making trade easier and
cheaper.
HOW DOES INTERSTATE SYSTEM
AFFECT OUR WORLD?
The interstate system prevents any single
state from controlling the world economy.
THE IMPORTANCE OF GLOBAL
INTERSTATE SYSTEM
 POLITICS
- A global interstate system strengthens
international ties, aids countries with
health and military issues, and allows
access to new technology.
 ECONOMIC
- A global interstate system allows for
easier access to financial aid and
sanctions to stop countries from
committing inhumane or wrongdoings.