CONTEMPORARY WORLD (SS 113)

REVIEWER

 Globalization- refers to the exchange of goods and services by sale or barter driven by the need
for resources.

- the worldwide coming together of nations and countries.

- is a process of interaction and integration among the people, companies, and

governments of different nations, a process driven by international trade and
investment and aided by information technology.

- represents the global integration of international trade, investment, information

technology and cultures.

- is the free movement of goods, services and people across the world in a
seamless and integrated manner.

 Free Trade- a policy in which a nation does not try to limit imports or exports by enacting tariffs
(taxes on imports) or subsidies (taxes on exports).
 The globalization and climate change relate to one another by means of increased pollution in the
air from travel, shipping, and more adds to the effects of greenhouse gasses.
 Negative effects of globalization
o The environment can suffer from additional pollution.
o People in industrialized countries might lose their jobs.
o People in developing countries remain poor and without insurance.
 Global Governance- It is a purposeful order that emerges from institutions, processes, norms,
formal agreements, and informal mechanisms that regulate action for the common good.
 The Silk Road- the first phase or stage of globalization.
 Globalized economy- the international trade is important to all countries.
 The use of high taxes for imports and exports helped create a global economy in the present day.
 World Bank- it is responsible for funding postwar reconstruction projects.
 North-South Divide- it is a socio-economic and political divide of countries, comprising the three
worlds known as First, Second, and Third Worlds.
 Reasons why do American companies set up subsidiaries in the country specifically in the
Philippine (Customer service skills, English proficiency, and cheap labor cost)
 Third World counties also known as Developing country.
 Political aspect of globalization deals with the establishment of UN in order to maintain
international peace and security.
 Brandt Line- the tool or the "line" that demarcates the Global North and the Global South.
 IMF regards economic globalization as a historical process representing results of human
innovation and technological process.
 The International Monetary Fund and World Bank are specialized agencies in the United Nations
system.
 Each International Financial Institution (IFI) has its own independent legal and operational status,
but because a considerable number of countries have membership in several IFIs, a high level of
cooperation is maintained among them.
 All International Financial Institutions admit only sovereign countries as owner-members, but all
are characterized by a broad country membership, including both borrowing developing countries
and developed donor countries.
 Some sociologists, like William I. Robinson has argued that because a capitalist economy is
premised on growth and expansion, a globalized economy is the inevitable result of capitalism.
 United Nations 1946 is created because of these ideas: Emphasized the need to form common
international principle (Kant), Enshrined principles of cooperation and respect among nation-states
(Mazzini) , and Democracy and self-determination (Wilson).
 Three pillars of ASEAN community
o Economic community
o Socio-cultural community
o Political security community
 Advantages of regionalism in Asia
o Generate productivity gains, new ideas, and competition
o Contribute to the efficiency and stability of global financial markets
o Diversify sources of global demand, helping to stabilize the world economy and diminish
the risks posed
 First World Country- refers to the so called developed, capitalist, industrial countries roughly, a
bloc of countries aligns with the United States after World War II, with more or less common
political and economic interests: North America, Western Europe, Japan, and Australia.
 Global North- home of all members of the Group of Eight (G8)
 Global South- refers to the socio-economic and political divide primarily focused on southern
hemisphere.
 UN's International Criminal Court- prosecutes individuals accused of crimes against humanity.
 Treaty of Tordesillas- it refers to the division of the world.
 Core- the dominant capitalist countries that exploit peripheral countries for labor and raw
materials.
 East Timor- the 11th country of the ASEAN joined last November 11, 2022.
 ASEAN countries- Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines,
Singapore, Thailand, and Vietnam.
 Nation-state- can be defined as a political community that emanates from civic society to
legitimately execute peace.
 Global Governance- totality of norms, laws, policies, and bodies that define, comprise, and
facilitate transnational relations between citizens, states, cultures, intergovernmental, and non-
governmental organizations.
 Second international- best known for declaring the International Worker’s Day and International
Women’s Day and for initiating the campaign for the eight-hour work day.
 Global Economy- term refers to the international exchange of goods and services that is
expressed in monetary unit of money and also referred to as world economy.
 One of the goals of ASEAN Free Trade Area is to encourage the member-states to deepen their
commitments in investment, trade, industrial collaboration to brace them for the increase in the
region’s economic activity.
 Being a member of the International Financial Institution must meet the following qualifications;
o Only sovereign countries are admitted as member-owner.
o Broad country membership to include borrowing developing countries and developed
donor countries.
o Has its own independent legal and operational states.
 Market Integration- it occurs when prices among different locations or related goods follow
similar patterns over a long period of time.
 Capitalism- also known as the free-enterprise or free-market system, is an economic and political
system in which a country's trade and industry are controlled by private owners for profit, rather
than by the state.
 GDP- stands for Gross Domestic Product.
 The developing nation can be described as improving educational systems, expanding industries,
and increasing national income.
 Challenges of globalization and regionalization in the Philippines;
o Brain Drain
o Massive environmental destruction
o Income inequality
 Global south regions- Latin America, Asia, and Africa.
 World Trade Organization- an organization provides a mechanism for dispute resolution and the
enforcement of trade laws.
 Global Corporation- also known as Multinational Corporation.
 If the demand is low, the value is high.
 Benefits of international trade
o Acquiring goods that you do not produce yourself.
o Ability to sell your goods to others for a profit.
o Ability to specialize production of certain goods in your country.
 Globalisation is good because of an increase in standard of living, but is bad because there is a
decrease in local cultures and traditions.
 The positive effects of Globalisation are it increased freedom to travel and immigrate, better
access to medicine, information, and technology.
 Transnational corporations- tend to make their products in lower-cost countries.
 The Silk Road was important because it linked Asian and western cultures for more a thousand
years.