CONTEMPORARY WORLD REVIEWER

GLOBALIZATION- it is the interaction between two individuals or countries.

- 1901-2001 (globalization started)
- is to simply put it as a social process of reshaping and remaking the world
order.
- It is a two-way process (give & take)
FOUR FACTORS OF GLOBALIZATION
-ECONOMY- foreign investors
-CULTURE- adaptation of different culture in the world
-POPULATION- foreign nationals
-INFORMATION TECHNOLOGY- connection and information of different countries, knowledge

UNDERLYING PHILOSOPHIES

REALISM- reality and focuses on the shifting distribution of power among states (when you give,
you take more)
LIBERALISM- two countries help each other but the other may have hidden agenda

-it is a perspective in international relations where actors and institutions

emphasize relationships and negotiation. (To hold and control the militarization of one country)
IDEALISM- helping other countries without hidden agenda

-formation of institutions, and the interplay of nations should be guided by ethical and
legal standards.

ECONOMIC INTEGRATION- the countries which have the same economy (association)

- is designed to address and enhance the level of competitiveness of

member economies in trade. Free trade is the primary consideration of
regional economic integrations

MARKET INTEGRATION- occurs when prices among different locations or related goods
follow similar patterns over a long period of time
- one business or company controlled by one country
3 KINDS OF MARKET INTEGRATION

HORIZONTAL INTEGRATION- - This occurs when firms or agency gain control of other firms
or agencies performing similar marketing functions at the same level in the marketing sequence.
In this type of integration, some marketing agencies combine to form a union with a view to
reducing their effective number and the extent of actual competition in the market.
(Examples: Walt Disney’s acquisition of 21st Century Fox and Pixar Animation Studios,
Facebook’s acquisition of Instagram)

VERTICAL INTEGRATION- This occurs when firms perform more than one activity in the
sequence of the marketing process. It is a linking together of two or more functions in the
marketing process within a single firm or under single ownership. This type of integration makes
it possible to exercise control over both quality and quantity of the product from the beginning of
the production process until the product is ready for the consumer.
(Examples: One quantity but different products made align to the main product. Chicken-egg-
quail egg)
CONGLOMERATION- The process whereby a firm expands by supplying a range of different
products and, as such, operates in several markets rather than a single market.
(Example: In addition to phones and other electronics, Samsung builds ships, undertakes major
construction projects, and is involved in businesses that include food processing, textile
manufacturing, insurance, financial products, and consumer retail).

INTERNATIONAL FINANCIAL INSTITUTIONS- are international non-profit agencies, one of

the major sources of financing like regional development banks or banks globally. Major role is
to finance productive development projects or to promote economic development. IFIs focus on
long-term investment projects, institution-building, and on social, environmental, and poverty
issues, strengthen economic governance, ensuring the stability of international financial system,
and trade liberalization
Example: World Bank, International Monetary Fund (IMF), Asian Development Bank
(ADB)

INTERNATIONALISM - Nations decide to cooperate with one another in political, economic,

and cultural aspects for promotion of common good.

- It focuses on regions or continents in SEAR. ( One, two or even four or

five small area).
GLOBALISM- The belief that people, goods and information ought to be able to cross national
borders freely. It is the attitude of putting the interest of the entire world above the interest of
individual nations
- It focuses on the world. The problem of one country will affect the world.
(Example: Covid 19 and climate change)

INTERSTATE SYSTEM- competing an alliance of state, it is the relationship of states that participate
in the World Economy.
- It makes the trade smoother and costly inside the interstate system, to increase
the social and economic development of countries under it.

MODERN WORLD SYSTEM- is an approach to world history and social change that suggests
there is a world economic system in which some countries benefit while others are exploited.
THREE-LEVEL HIERARCHY
CORE- rich countries
-they exploit peripheral countries for labor and raw materials. They are strong in military
power and not dependent on any state or country. They are focused on higher skill and capital-
intensive production.

SEMI PERIPHERY- middle class countries

- plays a significant role when it comes to stabilizing world systems since it
facilitates interactions and connections between high-income states and
low-income states
PERIPHERY- poor countries
- lack a strong central government and possesses a disproportionately small
share of the world’s wealth. These areas are less developed than the core
and semi-periphery
UNITED NATIONS- alliance of different countries
- a political forum for dialogue concerning the major issues on the global
economic agenda and as an integrator of the different perspectives on the
economic, social, and environmental pillars of sustainable development.