Reminders

1. Read thoroughly the introduction of each lesson. This contains the subject matter ,
and its discussion as well.
2. There are activities presented after each lesson. If you find any activity containing
ambiguous meaning, inform me through text so I could explain that to you.
3. All activities should be written in a yellow sheet paper, the one which you usually use
in the classroom. If you opt having these encoded by a computer, then you may do it.
Pass these activities in hard copy or if not, through my email.
4. I decided that I will not anymore administer the midterm and final examinations. So
that, I am reminding each one of you to answer intensively and as sincere as you can
the activities laid down for each lesson. From there, the computation of your midterm
and final exams will depend on the performances you gave to your lesson activities.
5. As much as you can, do the activities alone. In this way, meaningful learning will
really happen. As the saying goes, “Honesty is the best policy.”
6. The passing of the activities will be at the last month of the semester or at the end of
the semester. Place all your performed papers in a sealed envelope. Write on the
envelope your name, course and year, address, subject and my name: Eva C. Polo.
Pass this at SKSU Tacurong Campus to the Security Guard – In – Charge of the day.
A box will be provided where you will place your activities. You may request
anybody who will do the passing for you if you couldn’t come personally.
7. Relax and don’t be pressured, the University is to dispense the “ No student shall be
left behind” at this difficult times. Meaning, we will exhaust means and ways to help
you achieve and finish your courses.
8. Inform me along the way if there are problems that may arise so I could assist you.
9. If you feel the hard copy of the module is better for you, inform immediately your
Department Chairman, Ms. Zilji Molina through your Group Chat or text me so that I
could print the module for you. Also, let me know how would I send it. Nevertheless,
I could personally bring to you the hard copy when situations cannot guarantee for the
one to travel. Give me the complete address.
10. Information will be sent to you if a Google Meeting and or other electronic venue
seen to be a need for one particular class activity. Meanwhile, indulge yourselves to
your module tasks.
11. Pray and keep in touch.
12. Thank you for your attentiveness.

PROF. EVA C. POLO

THE CONTEMPORARY WORLD: A TEACHING – LEARNING
MODULE VIA OFF CAMPUS AND RESIDENTIAL CLASS
PROGRAMS

EVA CALICA – POLO

 FOREWORD

The Covid – 19 Pandemic is a blessing in disguise, aside from the many reasons, it
motivates me to create this module, however, gives me a pressure of how I could
come up with one – which will make my students find this material interesting and to
finally find this informative and appreciative in the context of globalization. This, I
believe; will make them understand themselves, their experiences, their
communities, their country and their culture.

In this module, I constructed the following general objectives:

- Instill to the minds of my students the principles and core ideas of important
globalization theories that they are likely to encounter in the social science
discipline.

- Draw my students the application of global structures and processes in their

everyday activities.

- Assists students become more systematic and critical thinkers.

- Provide students with an overview and brief history of how globalization as an

intellectual topic.

This module addresses and offers readable and practical guides that integrates
content with examples, capturing the essence and presentation of theory in learning
about globalization in a straightforward manner. In addition, this material takes an
incremental approach in learning about globalization, resulting in a thoughtful and
appropriate learning pace.
 TABLE OF CONTENTS

CHAPTER I Globalization

Lesson I Globalization in the Economy

Globalization in the Geography
Lesson II Benefits of Globalization
Lesson III Negative Effects of Globalization
Lesson IV Globalization, Sustainable Development
and Corporate Social Responsibility
Lesson V Globalization and Regionalization
Lesson VI Global Demography
Global Migration

CHAPTER II Global Economy

Lesson I Causes of Increasing Globalization

Lesson II Global Stratification
Lesson III Effects of Global Stratification
Lesson IV Modern World System

CHAPTER III Market Integration

Lesson I International Financial Institutions

Lesson II History of Global Market Integration
Lesson III Economic Systems

CHAPTER IV The Global Interstate System

Lesson I Global Governance in the 21st Century
Lesson II Cultures in the Global Interstate System
Lesson III Core / Periphery Relations in the Global
Interstate System
Lesson IV Informationalism
Lesson V Information Capitalism and the
New Class System
Lesson VI Citizenship in a Globalized World

References
 CHAPTER I
General Objectives
In this chapter, students will be able to:
1. Demonstrate understanding on the present economic, political and social
relations, as well as the ensemble of human relations, are phenomena that
increasingly transcend local and national fields, reaching a growing
transnational dimension.
2. Display awareness concerning development processes -and the majority of
the questions that affect human welfare which are conditioned by a process of
globalization that is increasingly influencing the economic, political and social
structures of all countries.

GLOBALIZATION
While the entire world was primarily triggered by the emergence of a global market
and facilitated by the democratization of communication technologies, also caused
cultural, social and even political events that realistically turned the world
environments with the multitude of processes in the global colonization of
technologies.
In this chapter, varied connotations on globalization are presented and discussed as
well. The task of conceptualizing reveals a mixed perspectives. It also allows an
appreciation of earlier epochs before globalization and the present globalized world.

Lesson I
Globalization means the speedup of movements and exchanges (of human beings,
goods, and services, capital, technologies or cultural practices) all over the planet.
One of the effects of globalization is that it promotes and increases interactions
between different regions and populations around the globe.
Objectives: At the end of the lesson, the students are expected to :
1. Share a personal definition of globalization
2. Describe the natures of globalization
3. Differentiate competing conception of globalization

What Is Globalization in the Economy?

According to the Committee for Development Policy (a subsidiary body of the

United Nations), from an economic point of view, globalization can be defined as:
“(…) the increasing interdependence of world economies as a result of the growing
scale of cross-border trade of commodities and services, the flow of international
capital and the wide and rapid spread of technologies. It reflects the continuing
expansion and mutual integration of market frontiers (…) and the rapid growing
 significance of information in all types of productive activities and marketization are
the two major driving forces for economic globalization.”

What Is Globalization in Geography?

In geography, globalization is defined as the set of processes (economic, social,

cultural, technological, institutional) that contribute to the relationship between
societies and individuals around the world. It is a progressive process by which
exchanges and flows between different parts of the world are intensified.

Globalization is deeply connected with economic systems and markets, which, on

their turn, impact and are impacted by social issues, cultural factors that are hard to
overcome, regional specificities, timings of action and collaborative networks. All of
this requires, on one hand, global consensus and cooperation, and on the other,
country-specific solutions, apart from a good definition of the adjective “just”.
Examples of Globalization

 Economic globalization: is the development of trade systems within transnational

actors such as corporations or NGOs;
 Financial globalization: can be linked with the rise of a global financial system with
international financial exchanges and monetary exchanges. Stock markets, for
instance, are a great example of the financially connected global world since when
one stock market has a decline, it affects other markets negatively as well as the
economy as a whole.
 Cultural globalization: refers to the interpenetration of cultures which, as a
consequence, means nations adopt principles, beliefs, and costumes of other
nations, losing their unique culture to a unique, globalized supra-culture;
 Political globalization: the development and growing influence of international
organizations such as the UN or WHO means governmental action takes place at an
international level. There are other bodies operating a global level such as NGOs
like Doctors without borders or  Oxfam;
 Sociological globalization: information moves almost in real-time, together with the
interconnection and interdependence of events and their consequences. People
move all the time too, mixing and integrating different societies;
 Technological globalization: the phenomenon by which millions of people are
interconnected thanks to the power of the digital world via platforms such as
Facebook, Instagram, Skype or Youtube.
 Geographic globalization: is the new organization and hierarchy of different
regions of the world that is constantly changing. Moreover, with transportation and
flying made so easy and affordable, apart from a few countries with demanding
visas, it is possible to travel the world without barely any restrictions;
 Ecological globalization: accounts for the idea of considering planet Earth as a
single global entity – a common good all societies should protect since the weather
affects everyone and we are all protected by the same atmosphere. To this regard, it
is often said that the poorest countries that have been polluting the least will suffer
the most from climate change.

Activities
Instructions: Answer the following questions and send through my email (
evacalica_polo@yahoo.com. ). Others may opt to pass their answers by their
guardian at the Publication Office, SKSU Tacurong City Campus on August 26,
2020, 9:00 AM.

1. What is the importance of defining globalization?

2. What idea you come up in order to identify the importance of
globalization to a community, nation or to the whole world?
3. Of the examples of globalization, what observation you made in which
one particular place is most affected of its visibility?

Assignment:

Prepare an oral activity which you will do through zoom on September 3,

2020, 9:00 AM. Please check your connectivity and your gadgets’ capability to do
this meeting. Those who cannot perform through this media you may inform me
through my email or text so that I could schedule you for another kind of
presentation.

Lesson II

The Benefits of Globalization

There is no question that globalization has been a good thing for many developing
countries who now have access to our markets and can export cheap goods.
Globalization has also been good for Multi-national corporations. But globalization
has not been good for working people (blue or white collar) and has led to the
continuing deindustrialization of many developed countries.

Globalization is a complicated issue. It is necessary to evaluate the pros and cons

before drawing any conclusions.

Objectives

At the end of the lesson, the students will be able to:

1. Explain key benefits and challenges of globalization

2. Recognize the importance of globalization in the community they live in.

The Engine of Globalization – An Economic Example

The most visible impacts of globalization are definitely the ones affecting the
economic world. Globalization has led to a sharp increase in trade and economic
exchanges, but also to a multiplication of financial exchanges.
In the 1970s world economies opened up and the development of free trade policies
accelerated the globalization phenomenon. Between 1950 and 2010, world exports
increased 33-fold. This significantly contributed to increasing the interactions
between different regions of the world.
This acceleration of economic exchanges has led to strong global economic growth.
It fostered as well a rapid global industrial development that allowed the rapid
development of many of the technologies and commodities we have available
nowadays.
Knowledge became easily shared and international cooperation among the brightest
minds speeded things up. According to some analysts, globalization has also
contributed to improving global economic conditions, creating much economic wealth
(thas was, nevertheless, unequally distributed – more information ahead).

Globalization Benefits – A Financial Example

At the same time, finance also became globalized. From the 1980s, driven by neo-
liberal policies, the world of finance gradually opened. Many states, particularly the
US under Ronald Reagan and the UK under Margaret Thatcher introduced the
famous “3D Policy”: Disintermediation, Decommissioning, Deregulation.
The idea was to simplify finance regulations, eliminate mediators and break down
the barriers between the world’s financial centers. And the goal was to make it easier
to exchange capital between the world’s financial players. This financial globalization
has contributed to the rise of a global financial market in which contracts and capital
exchanges have multiplied.

Globalization – A Cultural Example

Together with economic and financial globalization, there has obviously also been
cultural globalization. Indeed, the multiplication of economic and financial exchanges
has been followed by an increase in human exchanges such as migration,
expatriation or traveling. These human exchanges have contributed to the
development of cultural exchanges. This means that different customs and habits
shared among local communities have been shared among communities that (used
to) have different procedures and even different beliefs.
Good examples of cultural globalization are, for instance, the trading of commodities
such as coffee or avocados. Coffee is said to be originally from Ethiopia and
consumed in the Arab region. Nonetheless, due to commercial trades after the 11th
century, it is nowadays known as a globally consumed commodity. Avocados, for
instance, grown mostly under the tropical temperatures of Mexico, the Dominican
Republic or Peru. They started by being produced in small quantities to supply the
local populations but today guacamole or avocado toasts are common in meals all
over the world.
At the same time, books, movies, and music are now instantaneously available all
around the world thanks to the development of the digital world and the power of the
internet. These are perhaps the greatest contributors to the speed at which cultural
exchanges and globalization are happening. There are also other examples of
globalization regarding traditions like Black Friday in the US, the Brazilian Carnival or
the Indian Holi Festival. They all were originally created following their countries’
local traditions and beliefs but as the world got to know them, they are now common
traditions in other countries too.
Activities

There are three activities, items 1 & 3 will be sent through email on ________. Item
no. 2 will be an oral activity which will be done through zoom or video call. Those
who do not have these connectivity, you may do the said item through cellphone call.
See to it that you have enough loads in doing this media.

1. Explain how globalization changes daily businesses’ operations and

transactions?
2. How globalization interchanges cultures?
3. In what way, the financial globalization affects the world market’s operations?

Assignment

This is due on _________. Pass this assignment through email or hard copy. When
going to be passed in hard copy, submit it to the SKSU Tacurong Campus’
Publication Office.

Choose one country which manifests popular world trade by recognizing manpower
from its neighboring countries. Explain the itinerary of labor and welfare.

Lesson III

Why Is Globalization Bad?

The increased economic activity leads to greater emissions of industrial pollutants

and more environmental degradation. The pressure on international firms to remain
competitive forces them to adopt cost-saving production techniques that can be
environmentally harmful.
Globalization has had far-reaching effects on our lifestyle. It has led to faster access
to technology, improved communication and innovation. Apart from playing an
important role in bringing people of different cultures together, it has ushered a new
era in the economic prosperity and has opened up vast channels of development.
However, globalization has also created some areas of concern, and prominent
among these is the impact that it has had on the environment

Objectives

At the end of the lesson, students will be able to:

1. Demonstrate self – responsibility on protecting their environment.

2. Relate to themselves the negative effect of globalization thereby pushed

themselves to do a campaign awareness on environment to the society
they live in.

3. Identify the different notions on the bad effects of globalization.

The Negative Effects of Globalization

Globalization is a complex phenomenon. As such, it has a considerable influence on

several areas of contemporary societies. Let’s take a look at some of the main
negative effects globalization has had so far.

Despite its benefits, the economic growth driven by globalization has not been done
without awakening criticism. The consequences of globalization are far from
homogeneous: income inequalities, disproportional wealth and trades that benefit
parties differently. In the end, one of the criticisms is that some actors (countries,
companies, individuals) benefit more from the phenomena of globalization, while
others are sometimes perceived as the “losers” of globalization.
Many critics have also pointed out that globalization has negative effects on the
environment. Thus, the massive development of transport that has been the basis of
globalization is also responsible for serious environmental problems such as
greenhouse gas emissions, global warming or air pollution.
At the same time, global economic growth and industrial productivity are both the
driving force and the major consequences of globalization. They also have big
environmental consequences as they contribute to the depletion of natural
resources, deforestation and the destruction of ecosystems and loss of biodiversity.
The worldwide distribution of goods is also creating a big garbage problem,
especially on what concerns plastic pollution.

Activities

1. Explore ways in which you are linked to flows of people, capital, goods and
services around your locale and or to other regions; discuss advantages and
disadvantages of globalisation; and analyse the intercultural understandings
that inform working in a global context.

2. Read one of the following scenarios and decide whether the most significant
impact of the scenario for you, is positive or negative. Explain your choice/s.

Scenario A. The shoes that you really like are much cheaper via an online shop in
Thailand.

Scenario B. A representative from World Wildlife Fund invites students to become

involved in and advocate to help secure the future of orangutans.

Scenario C. The company that your father works for has recently been taken over by
a trans-national corporation with job opportunities in many parts of the world if he is
prepared to move/relocate.

Scenario D. You meet someone really nice while you're on holiday in Malaysia and
can now keep in touch via Skype.
Scenario E. In your local town, one of the main sources of employment for three
generations has been the mango fruit cannery. The company has recently decided to
close the factory and outsource the canning of fruit to another country where labour
and fruit are cheaper.

Lesson IV

Globalization, Sustainable Development, and Corporate Social Responsibility

Globalization affects all sectors of activity to a greater or lesser extent. By doing so,
its gap with issues that have to do with sustainable development and corporate
social responsibility is short.

Objectives

1. Determine results caused by globalization.

2. Identify activities that may help sustain stability of environment.
3. Analyze situations and where to be involved in order to protect natural
resources.

Environmental Degradation

By promoting large-scale industrial production and the globalized circulation of

goods, globalization is sometimes opposed to concepts such as resource savings,
energy savings or the limitation of greenhouse gases. As a result, critics of
globalization often argue that it contributes to accelerating climate change and that it
does not respect the principles of ecology. At the same time, big companies that
don’t give local jobs and choose instead to use the manpower of countries with low
wages (to have lower costs) or pay taxes in countries with more favorable
regulations is also opposed to the criteria of a CSR approach. Moreover, the
ideologies of economic growth and the constant pursuit of productivity that come
along with globalization, also make it difficult to design a sustainable economy based
on resilience.

On the other hand, globalization is also needed for the transitioning to a more
sustainable world, since only a global synergy would really be able to allow a real
ecological transition. Issues such as global warming indeed require a coordinated
response from all global players: fight against CO2 emissions, reduction of waste, a
transition to renewable energies. The same goes for ocean or air pollution, or ocean
acidification, problems that can’t be solved without global action. The dissemination
of green ideas also depends on the ability of committed actors to make them heard
globally.

Food Security

Food security exists when all people have physical and economic access to
sufficient, safe and nutritious food that meets their dietary needs for an active and
healthy life. The term 'food security' is being used more frequently in recent years,
with the Government putting greater emphasis on its importance.

It is defined as defined by the United Nations' Committee on World Food

Security, means that all people, at all times, have physical, social, and economic
access to sufficient, safe, and nutritious food that meets their food preferences and
dietary needs for an active and healthy life.

The global food security challenge is straightforward: by 2050, the world must feed 9
billion people. The demand for food will be 60% greater than it is today. The United
Nations has set ending hunger, achieving food security and improved nutrition, and
promoting sustainable agriculture as the second of its 17 Sustainable Development
Goals (SDGs) for the year 2030.

To achieve these objectives requires addressing a host of issues, from gender parity
and ageing demographics to skills development and global warming. Agriculture
sectors have to become more productive by adopting efficient business models and
forging public-private partnerships. And they need to become sustainable by
addressing greenhouse gas emissions, water use and waste. The risks: malnutrition,
hunger and even conflict.

Why is food security such a major global challenge?

The obvious reason is that everybody needs food. But the complexity of delivering
sufficient food to a national population and to the whole world’s population shows
why food security is such a priority for all countries, whether developing or
developed.

In short, this is a global challenge because it’s not just about food and feeding
people but also about practically all aspects of an economy and society.

What causes it?

1. Population growth – this varies considerably across countries. Africa is expected

to double its population from 1 to 2 billion by 2050. Populations in the developing
world are also becoming increasingly urbanized, with 2.5 billion additional urban
residents projected in Africa and Asia.

2. Changing tastes – not only is the population growing, but its diet is changing too.
As people become more affluent they start eating food that is richer in processed
foods, meat and dairy. But to produce more meat means growing more grain.

3. Climate change – currently, 40% of the world’s landmass is arid, and rising
temperatures will turn yet more of it into desert. At current rates, the amount of food
we’re growing today will feed only half of the population by 2050.

4. Water scarcity – this is another impending crisis: 28% of agriculture lies in water-
stressed regions. It takes roughly 1,500 litres of water to produce a kilogram of
wheat, and about 16,000 litres to produce a kilogram of beef. In 2050, we’ll need
twice as much water.
5. Troubled farmers – in developed countries, less than 2% of people grow crops or
breed animals for food. Fewer and fewer people are choosing farming as an
occupation. Meanwhile, food prices are rising, arable land continues to be lost to
sprawl and soil is being degraded by over-farming.

Activities

1. Do an observation at your own locality’s environment, may it be on water,

land, natural resources and others. State their condition, and how they exist.

2. From your observation, if what you observed was positive, tell if how people
would sustain its fresh and natural condition. If your observation was negative,
tell if how people could regain its freshness and natural condition.

Assignment

Think of any project on how you could be a help in nurturing the natural richness of
our environment. This is a one week activity. Take a picture of this project and send
it through email or in hard copy.

Lesson V

Globalization and Regionalization

World regionalism is one of the manifestations of globalization and at the same time

it is the opposite trend. Globalization is accompanied by a regionalization of
international relations, transfer of public functions to sub-national or international
level.

It can be stated that regionalization defines a consequence, a way of protection

against globalization. Regionalization transforms itself into an instrument which can
be used in order to overcome the difficulties caused by the small dimensions of the
national states.

Objectives

At the end of the lesson, students will be able to:

1. Determine the difference between globalization and regionalization.

2. Identify the effects of both to the society and the world.

The Road From Globalization to Regionalization

From a globalization perspective, regionalization means a world that is less

interconnected and has a stronger regional focus.
Regionalization can also be analyzed from a corporate perspective. For instance,
businesses such as McDonald’s or Starbucks don’t sell exactly the same products
everywhere. In some specific stores, they consider people’s regional habits. That’s
why the McChicken isn’t sold in India, whereas in Portugal there’s a steak sandwich
menu like the ones you can get in a typical Portuguese restaurant.

Politically speaking, when left-wing parties are in power they tend to focus on their
country’s people, goods and services. Exchanges with the outside world aren’t seen
as very valuable and importations are often left aside.

The most important feature of the global community is globalization of many

processes and phenomena of the development of international relations,
strengthening relationships and interdependence of modern states in the second half
of the 20th century. Globalization is evident not only globally, but also regionally. An
important component of international relations in the 21st century is regional
development and cooperation. In this regard, the importance of regional significant
factor in current international relations. Most of the changes which is observed in
today's world are associated with the development of the information sphere. There
were predictable transformation and give rise to the beginning of the entry of
humanity into a global information society. 

The processes of globalization and regionalization reemerged during the 1980s and
heightened after the end of the Cold War in the 1990s. At first, it seems that these
two processes are contradicting – the very nature of globalization is, by definition,
global while regionalization is naturally regional.

The regionalization of the world system and economic activity undermines the
potential benefits coming out from a liberalized global economy. This is because
regional organizations respond to the states’ attempt to reduce the perceived
negative effects of globalization. Therefore, regionalism is a sort of counter –
globalization.

In 2000 survey, the Financial Times revealed that majority of Europeans consider
that globalization brings negative effects to their societies. Many policy makers and
scholars think that globalization must be regulated and managed. The threats of an
“ungoverned globalization” can be countered through “managed globalization;” it
refers to “all attempts to make globalization more palatable to citizens.”

The driving forces of regionalization are not only state, but also non-governmental
structure (the economic "interest groups", NGOs, political parties, etc.). World
regionalism is one of the manifestations of globalization and at the same time it is the
opposite trend. Globalization is accompanied by a regionalization of international
relations, transfer of public functions to sub-national or international level. Regions
helps to protect public relations of globalization from negative impact and act as an
independent subject of international relations. Many developing countries see in
regionalization attempt to confront global competition. In the context of globalization
acquires special relevance selective protectionism - gradual global economic
integration, combining openness to the outside world with the protection of national
interests.
Activities:

1. What do you think there’s a need to study globalization?

2. Enumerate at least three songs you have listened. Where did they originate?
Identify the nationality of the writer and / or artist of each music.
3. What gadgets or devices do you usually use to listen to music? Where these
gadgets or devices made? Where is the company based?

Lesson VI

Global Demography

Demographic transitionis a singular historical period during which mortality and

fertility rates decline from high to low levels in a particular country or region. The
broad outlines of the transition are similar in countries around the world, but the pace
and timing of the transition have varied considerably.

Objectives

1. Discover the ballooning population of the world and how it affects lives.
2. Evaluate their own society, and how population affecting it.
3. Draw and analyze ideas on the condition of small family and big family

For much of human history, demographic patterns were reasonably stable; human
populations grew slowly, and the age structures, birth rates, and death rates of
populations changed only gradually. Epidemics and pandemics had huge effects on
populations, but these effects were short-lived and had little bearing on longterm
trends. In the past 50 years, however, this trend of long-term stability has given way
to the biggest demographic upheaval in history, an upheaval that is still running its
course. In the developed world, a sharp post-war rise in fertility was followed by an
equally sharp fall. These changes in fertility transformed age structures through the
creation of a ‘baby boom’ generation.

The ageing of this generation and continued declines in fertility and old-age mortality
are shifting the population balance in developed countries from young to old. In the
meantime, the developing world has experienced a population explosion, the result
of improved nutrition, public health infrastructure and medical care. Even if high
fertility – the main underlying cause of rapid population growth – were to suddenly
adjust to the long-run replacement level of 2.1 children per woman, humanity would
continue to experience demographic change for some time. The rapid increase in the
global population over the past few decades has resulted in large numbers of people
of childbearing age. This creates ‘population momentum’, in which the populations of
most countries, even those with falling birth rates, will grow for many years to come.
This is particularly true of developing countries.

Population changes have potentially huge implications for the pace and progress of
economic development. For example, an increasing proportion of elderly may act as
a drag on economic growth where smaller working populations must provide for a
larger number of non-working dependents. Rising life expectancy can also bolster an
economy by creating a greater incentive to save and to invest in education, thereby
boosting the financial capital on which investors draw and the human capital that
strengthens economies. Where a country has experienced a baby boom followed by
a decline in fertility, the relative size of the workforce is increased. Countries that are
able to absorb the baby boom generation into productive employment can
experience a rapid increase in economic growth. Countries unable to take advantage
of this opportunity run the risk of creating large, chronically underemployed and
increasingly restive working-age populations.

Global Migration

Basically there is no country left today that is not being affected directly or sometime
indirectly by the migratory phenomenon. However, it is very difficult to differentiate
between the past and present trends conceptually, “migration after the Industrial
Revolution has been structured by capitalist wage-labour systems, modern nation-
states and their immigration policies, as well as advanced transportation and 157
communications technologies, none of which existed in antiquity”.
In contemporary immigration studies many typologies of migrants can be traced, but
more precisely, on the basis of the sending and receiving societies, migrants can be
categorised in: (i). Elite Migrants: those who are from the political ruling class
including high-skilled professionals. (ii). Commoner Migrants: those who migrate to
seek better economic opportunities and livelihoods including unskilled migrants and
labour migrants. (iii). Refugee migrants: those who get migrated due to ethno-
political conflict as well as environmental disaster.

The concepts colonizer/colonized kind of trends have become a matter of past; and
currently in global scenario, it is not practical to conquer and seize political power of
the host society. As the result of affordability of modern transportation and expansion
in information technology, the world is now so interconnected and inter-dependent.
Some countries like Mauritius, UAE, Oman, and other Gulf countries today totally
dependent on migrants that without them, their economies could be severely
damaged. In particular, Marceau argues that the international corporations have
created a pool of international working cultures globally. These business elites are:
able to cross the boundaries of conventional functional divisions, able to take a
global view of the enterprise and operate efficiently in diverse environments. Fulfilling
so well the new organisational needs of the European business world ... they may
well be the people poised for the recruitment stratum to international boardrooms
over the next few decades and hence to the directorial positions which 158 give
them a role in formulation of public policies for both business and the wider
community”.

Migration generates some good opportunities for migrants, their families and in some
cases, for countries of origin. The incomes that migrants make in a foreign country
can be many multiples of the amounts what they could earn by doing similar jobs in
their home country. According to a study conducted in 2009 revealed that “the ratio
of wages earned by workers in the United States to wages earned by identical
workers (with the same country of birth, years of schooling, age and sex, and
rural/urban residence) abroad 159 ranges from 15.45 (for workers born in Yemen) to
1.99 (workers born in the Dominican Republic), with a median ratio of 4.11” (World
Migration Report, 2018).

The increase in earnings can be proved to be very beneficial in the welfare of

developing countries and also for human development of migrants’ families.
According to a recent report by the World Bank, “migrants from the poorest
countries, on average, experienced a 15-fold increase in income, a doubling of
school enrolment rates and a 16-fold reduction in child mortality after moving to a
developed country” (World Bank, 2016).

Activities

1. What do you believe is the effect of a high dependency ratio in developed

countries? In developing countries?
2. Is the heightened flow of people a unique feature of the current global era?
3. Has globalization facilitated or obstructed greater labor migration?

Assignment

Study about other countries policies or laws on population control. What do you
believe as effects of these policies or laws on their people’s lives and in nation
building?

Share your work next meeting through the zoom or call.

Summary

Globalization is about the interconnectedness of people and businesses across the

world that eventually leads to global cultural, political and economic integration. It is
the ability to move and communicate easily with others all over the world in order to
conduct business internationally. The word, globalization, is relatively new, coined in
the late 1970’s. The airplane, the telephone, and the Internet are just three
inventions, which are attributable to the spread of globalization. Due to the increased
demand in the high tech industry around the world, business and industry have
potential for huge profits working globally. So in today’s world, globalization is an
important concept for students in higher education to understand and appreciate
because of the demand in business and industry to hire people who can work with
people of other nations and cultures and if need be can travel independently
internationally to promote their business or industry. In addition, the world faces
global challenges that will take interdisciplinary groups to solve these challenges;
providing access to clean water for everyone on this planet and making clean
renewable energy affordable just to name a few. These global challenges will need
to be solved through the gathering and sharing of knowledge across disciplines,
institutions, and other entities institutions on a global scale. Creating meaningful
relationships that work globally is in itself challenging.
References

Aldama, K. R. 2018. The Contemporary World. Rex Book Store, Manila. Philippines

https://www.weforum.org/agenda/2018/01/global-migration-can-be-a-success/
retrieved July 31, 2020

https://cfmslibrary.librarika.com/search/detail/2837189. Retrieved July 8, 2020

Agbanto, A. 2019 in https://www.weforum.org/agenda/2018/01/global-migration-can-

be-a-success/

Cayetano, C. F. 2018. Global Warming: Earth’s Struggles. Pacita Printing Press,

Marikina

https://velocityglobal.com/ on Benefits and Challenges of Globalization. Date

retrieved, July 30, 2020
 CHAPTER II

This chapter, students will be able to:

1. Infer to among themselves the global transactions on investment between

nations considering the domestic and international policies which facilitates
financial flow, development in trade increase in employment opportunities.

THE GLOBAL ECONOMY

Global economy is the exchange of goods and services integrated into a huge single
global market. It is virtually a world without borders, inhabited by marketing
individuals and/or companies who have joined the geographical world with the intent
of conducting research and development and making sales.

International trade permits countries to specialize in the resources they have.

Countries benefit by producing goods and services they can provide most cheaply
and by buying the goods and services other countries can provide most cheaply.
International trade makes it possible for more goods to be produced and for more
human wants to be satisfied than if every country tries by itself to produce everything
it needs.

Lesson I

CAUSES OF INCREASING GLOBALIZATION

While globalisation has led to the convergence of more developed economies, many

argue that the welfare gap between the more and less developed economies is
growing. ‘Global economics’ looks at how trade has shaped the global economy and
considers the costs and benefits of free trade – it also provides an analysis of the
major problems facing the global economy in the 21st Century, and provides an
analysis of the financial crisis and the rise of powerful trading blocs.

Objectives

At the end of the lesson, the students are able to:

1. discuss the impact of global economy on large companies and oversees

labor.
2. explain the political aspects of globalization.

In the days of Scottish economist Adam Smith (1723–1790), if a merchant wanted to

trade a lot of wool for a case of port wine, the communication of that intent would
require weeks. Sending a message to someone in India took months. Such
circumstances lent themselves to fragmented and individualized markets run by
family members or close friends. These industry managers were trusted to make
decisions in the best interests of the company because no rapid means of
communicating existed. The opportunity to closely coordinate the act of several
foreign operations simply did not exist.

In the early twenty-first century, communication between most parts of the world is
instantaneous. A manager in Berlin, Germany, can phone or e-mail a manager in Rio
de Janeiro, Brazil, to discuss the latest news regarding the orange crop. These new
capabilities allow vast amounts of business data to be transferred globally almost
instantaneously at a reasonable cost. The world truly has become a smaller place in
terms of communication.

Technological advances have increased the potential for the transportation of goods
and individuals globally. This reality encourages a global market approach to
business as companies attempt to reach the largest number of consumers at the
lowest possible prices.

In such a market, companies may source from the United States, conduct research
and development in another country, take orders in a third country, and sell wherever
there exists demand, regardless of the customer's nationality.

Another factor leading to a more globalized marketplace is the historical decrease in

tariff and nontariff barriers. In 1930 the United States raised tariffs under the Hawley-
Smoot Tariff Act. Other countries followed suit, and international trade slowed
considerably. In 1947 several leading trading nations created the General
Agreement on Tariffs and Trade to serve as a forum for bringing down trade barriers.
Between 1947 and 1994, trading countries around the world participated in eight
rounds of negotiating in an effort to reduce tariffs.

Another agreement, the North American Free Trade Agreement, was implemented

by Canada, Mexico, and the United States in 1994.

This agreement reduced tariffs over a fifteen-year period, lifted many investment
restrictions, allowed for easier movement of white-collar workers, opened up
government procurement over a ten-year period, and created a mechanism for
dispute resolution. As a result, retailers such as Wal-Mart and 7-Eleven have
expanded operations into Mexico and many Mexican and Canadian firms have been
enjoying the benefits of participating in the world's largest consumer market, the
United States.

Multinational corporations search the globe for the lowest possible labor costs and
weakest environmental safeguards. It is not unusual for them to get help from
undemocratic governments that compete in the global marketplace by refusing to
protect their citizens from environmental degradation and workplace abuse—ranging
from below-survival wages to physical attacks.

OTHER FACTORS AFFECTING THE GLOBAL ECONOMY

Closely related to the liberalization of trade, technological advantages, and the

convergence of consumer preferences are a set of competitive factors centered
around the ideas of economies of scale (larger production volumes generating lower
per-unit production costs) and locational advantages.

Another factor affecting the global economy has been the shifting of production
among various plants located outside of the United States. This has occurred most
significantly with the People's Republic of China. China is able to produce a wide
variety of goods and services at much lower costs than is possible in the United
States.

Overall, the future for the global economy is positive. Many challenges lie ahead, but
the overall opportunity is very exciting and carries with it many unknown adventures
in international trade in ways not yet known.

Activities
Instructions
Pass this activity with any of the following options: email or in hard copy / written in a
yellow paper and submit to the SKSU Tacurong City Publication Office on
September 17, 2020.
1. Take a home survey to identify the country of origin of the goods ( dry or wet )
available in your own homes.

2. Use collected data to make a chart, graph, or map to illustrate the global
economy in which we live.

Lesson II

Global Stratification

If the United States is stratified by wealth, power, and prestige, so is the world. In
fact, inequality around the globe is even more striking than inequality within the
United States. This lesson examines the major dimensions of global stratification,
popular explanations for its existence, and its consequences for the lives of people
across the world.

Objectives

1. Describe the most important characteristics of wealthy nations, middle-

income nations, and poor nations.

2. Discuss the three dominant theories of global inequality.

3. Describe the arguments of modernization and dependency theories.
4. List the major effects of global stratification.

For the sake of clarity and simplicity, the best way to understand global stratification
is to think of the world composed of three categories of nations, based on their
degree of wealth or poverty, their level of industrialization and economic
development, and related factors. Over the decades, scholars and international
organizations such as the United Nations and World Bank have used various
classification systems containing three categories.

One of the first typologies came into use after World War II and classified nations as
falling into the First World, Second World, and Third World. The First World was
generally the western, capitalist democracies of North America and Europe and
certain other nations (Australia, New Zealand, Japan). The Second World was the
nations belonging to the Soviet Union, while the Third World was all the remaining
nations, almost all of them from Central and South America, Africa, and Asia.
Although this classification was useful for several reasons, the demise of the Soviet
Union by the end of 1991 caused it to fall out of favor.

A replacement typology placed nations into developed, developing,

and undeveloped categories, respectively. Although this typology was initially
popular, critics said that calling nations “developed” made them sound superior,
while calling nations “undeveloped” made them sound inferior. Although this
classification scheme is still used, it, too, has begun to fall out of favor.

Today a popular typology simply ranks nations into groups called wealthy (or high-

income) nations, middle-income nations, and poor (or low-income) nations. This
classification has the advantage of being based on the most important economic
difference among the nations of the world: how much income and wealth they have.
At the risk of being somewhat simplistic, the other important differences among the
world’s nations all stem from their degree of wealth or poverty.
Figure 6.6.16.6.1 depicts these three categories of nations (with the middle category
divided into upper middle and lower middle). The world is indeed stratified to a very
great degree.

Classification of Global Stratification

Wealthy Nations

The wealthy nations are the most industrialized nations, and they consist primarily of
the nations of North America and Western Europe; Australia, Japan, and New
Zealand; and certain other nations in the Middle East and Asia. Many of them were
the first nations to become industrialized starting in the 19th century, when the
Industrial Revolution began, and their early industrialization certainly contributed to
the great wealth they enjoy today. Yet it is also true that many Western European
nations were also wealthy before the Industrial Revolution, thanks in part to the fact
that they had been colonial powers and acquired wealth from the resources of the
lands that they colonized.

Although wealthy nations constitute only about one-fifth of the world’s population,
they hold about four-fifths of the world’s entire wealth. They are the leading nations
in industry, high finance, and information technology. Although each of the world’s
wealthy nations is internally stratified to a greater or lesser degree, these nations as
a group live a much more comfortable existence than middle-income nations and,
especially, poor nations. People in wealthy nations are more educated and healthier,
and they enjoy longer lives. At the same time, wealthy nations use up more than
their fair share of the world’s natural resources, and their high level of
industrialization causes them to pollute and otherwise contribute to climate change to
a far greater degree than is true of nations in the other two categories.

Middle-Income Nations

Middle-income nations are generally less industrialized than wealthy nations but
more industrialized than poor nations. They consist primarily of nations in Central
and South America, Eastern Europe, and parts of Africa and Asia and constitute
about one-third of the world’s population.

There is much variation in income and wealth within the middle-income category,
even within the same continent. In South America, for example, the gross national
income per capita in Chile, adjusted to U.S. dollars, is $13,270 (2008 figures),
compared to only $4,140 in Bolivia (Population Reference Bureau, 2010).Population
Reference Bureau. (2010). 2010 world population data sheet. Washington, DC:
Author. Thus many international organizations and scholars find it useful to further
divide middle-income nations into upper-middle-income nations and lower-middle-
income nations. Not surprisingly, many more people in the latter nations live in dire
economic circumstances than those in the former nations. In Bolivia, for example,
30% of the population lives on less than $2 per day, compared to only 5% in Chile.

Poor Nations

Poor nations are certainly the least industrialized and most agricultural of all the
world’s countries. This category consists primarily of nations in Africa and parts of
Asia and constitutes roughly half of the world’s population.

By any standard, people in these nations live a desperate existence in the most
miserable conditions possible. They suffer from AIDS and other deadly diseases, live
on the edge of starvation, and lack indoor plumbing, electricity, and other modern
conveniences that most Americans take for granted. Most of us have seen
unforgettable photos or video of African children with stick-thin limbs and distended
stomachs symptomatic of severe malnutrition. We revisit their plight in a later section
on the consequences of global stratification.

Explaining Global Stratification

Explanations of global stratification parallel those of U.S. inequality in their focus on

individual versus structural problems. One type of explanation takes an individual,
blaming-the-victim approach by in effect blaming the people in the poorest nations
for their own poverty, while a second explanation takes a more structural approach in
blaming the situation of the poorest nations on their treatment by the richest ones.
Again, there is evidence to support both types of explanations, but many sociologists
favor the more structural explanation.

Modernization Theory
The individual explanation is called modernization theory (Rostow, 1990).Rostow, W.
W. (1990). The stages of economic growth: A non-Communist Manifesto (3rd ed.).
New York, NY: Cambridge University Press. According to this theory, rich nations
became wealthy because early on they were able to develop the “correct” beliefs,
values, and practices—in short, the correct culture—for trade, industrialization, and
rapid economic growth to occur. These cultural traits include a willingness to work
hard, to abandon tradition in favor of new ways of thinking and doing things, and to
adopt a future orientation rather than one aimed toward the present.

Modernization theory has direct relevance for the experience of Western Europe.
According to the theory, Western European nations began to emerge several
centuries ago as economic powers because their populations adopted the kinds of
values and practices just listed. According to Max Weber (1904/1958),Weber, M.
(1958). The Protestant ethic and the spirit of capitalism (T. Parsons, Trans.). New
York, NY: Scribner. (Original work published 1904) one of the founders of sociology,
Western Europe was able to do this because the Protestant Reformation diminished
the traditional distrust of the Catholic Church for material success and social and
economic change. The new Protestant ethic that Western Europeans adopted
stressed the importance of hard work and material success in one’s lifetime, rather
than the traditional emphasis on rewards in an afterlife.

According to modernization theory, nations in other parts of the world never became
wealthy and remain poor today because they never developed the values and
practices just listed. Instead, they continued to follow traditional beliefs and practices
that stymied industrial development and modernization.

As should be clear, modernization theory has much in common with the culture of
poverty theory discussed earlier. It attributes the poverty of poor nations to their
failure to develop the “proper” beliefs, values, and practices necessary for economic
success both at the beginning of industrialization during the 19th century and in the
two centuries that have since transpired. Because modernization theory implies that
people in poor nations do not have the talent and ability to improve their lot, it falls
into the functionalist explanation of stratification.

Dependency Theory

The structural explanation for global stratification is called dependency theory. Not
surprisingly, this theory’s views sharply challenge modernization theory’s
assumptions (Packenham, 1992).Packenham, R. A. (1992). The dependency
movement: Scholarship and politics in development studies. Cambridge, MA:
Harvard University Press. Whereas modernization theory attributes global
stratification to the “wrong” cultural values and practices in the poorest nations,
dependency theory blames global stratification on the exploitation of these nations
by the rich ones. According to this view, the poor nations never got the chance to
pursue economic growth because early on they were conquered and colonized by
European ones. The European nations stole the poor nation’s resources and either
enslaved their populations or used them as cheap labor. Because dependency
theory implies that poor nations remain poor because of lack of opportunity owing to
exploitation by wealthy nations, it falls into the conflict perspective on stratification.
In today’s world, huge multinational corporations continue to exploit the labor and
resources of the poorest nations, say dependency theorists. Often these
corporations work hand-in-hand with corrupt officials in the poor nations to
strengthen their economic stake in the countries. An example of this dynamic
occurred during the 1990s in the poor western African country of Nigeria, where the
Royal Dutch/Shell oil company at the time was pumping half of that nation’s oil.
Activists in southern Nigeria began to claim that Shell’s oil drilling was destroying
their land and that Shell was paying them too little for their oil. In response to their
protests, the government sent in police at Shell’s request, with Shell paying some of
the police costs. The police put down the activists’ dissent by destroying several
villages and killing 2,000 people (P. Lewis, 1996).Lewis, P. (1996, February 13).
Nigeria’s deadly war: Shell defends its record, The New York Times, p. 1.

Which makes more sense, modernization theory or dependency theory? As with

many theories, both make sense to some degree, but both have their faults.
Modernization theory places too much blame on poor nations for their own poverty
and ignores the long history of exploitation of poor nations by rich nations and
multinational corporations alike. For its part, dependency theory cannot explain why
some of the poorest countries are poor even though they were never European
colonies; neither can it explain why some former colonies such as Hong Kong have
been able to attain enough economic growth to leave the rank of the poorest nations.
Together, both theories help us understand the reasons for global stratification, but
most sociologists would probably favor dependency theory because of its emphasis
on structural factors in the world’s historic and current economy.

Activities

1. Which theory makes more sense to you, modernization theory or dependency

theory? Explain your answer.
2. Do you think rich nations are doing enough to help poor nations? Why or why
not?

3. Write a brief essay that summarizes the various problems in measuring global
poverty and the reasons for developing and using accurate measures of global
poverty.

4.Why is it useful to know the extent of a nation’s inequality in addition to the extent
of its poverty?

Lesson III

Effects of Global Stratification

 Global stratification greatly affects the life chances of people around the world. The
symbolic interaction perspective studies the day-to-day impact of global inequality,
the meanings individuals attach to global stratification, and the subjective nature of
poverty. Someone applying this view to global inequality would probably focus on
understanding the difference between what someone living in a core nation defines
as poverty (relative poverty, defined as being unable to live the lifestyle of the
average person in your country) and what someone living in a peripheral nation
defines as poverty (absolute poverty, defined as being barely able, or unable, to
afford basic necessities, such as food).

Objectives

At the end of this lesson, the students are able to:

1. Identify the problems arising from global stratification.

2. Discuss its effects to different environments.
3. Observe and perform activities that may exemplify global stratification.

Effects of Global Stratification

Global stratification greatly affects the life chances of people around the world. As
noted earlier, people in the poorest nations live in some of the worst conditions
possible. AIDS, malaria, starvation, and other deadly diseases are common. Many
children die before reaching adolescence, and many adults die before reaching what
in the richest nations would be considered their middle age. Many people in the
poorest nations are illiterate, and a college education remains as foreign to them as
their way of life would be to us.

One of the most important indicators of a nation’s well-being is infant mortality (the
number of infant deaths during the first year of life for every 1,000 births), and the
global picture of infant mortality presents sad, striking evidence of the difference that
a nation’s poverty makes. Because of poor prenatal and postnatal nutrition, disease,
and the other dire conditions facing people in the poorest nations, their rates of infant
mortality are shockingly high and manifest one tragic effect of global poverty.

Later chapters further discuss the difference that global stratification makes for
health and illness, infant mortality, life expectancy, and other life chances. For now, it
is instructive to compare one wealthy nation, the United States, with one poor nation
from Africa, Uganda, on some important socioeconomic and other indicators as
presented in Table 6.6.16.6.1. As will be obvious, Americans and Ugandans live very
different lives, notwithstanding the high degree of poverty found in the United States
compared to other wealthy nations. The typical American lives a comfortable life that
the typical Ugandan can only dream of, while the typical Ugandan lives a life that the
typical American would find only in her or his worst nightmare.

Activities

1. How can one nation prevent poverty? Give your idea which one nation could
possibly do in order to uplift such condition.
 2. Find out some regions in the Philippines that are experiencing below poverty
line. What do you think our government could possibly do to mitigate this
condition?

Assignment

Take or capture pictures illustrating or expressing poverty. Make sure you will
discuss these pictures taken with your classmates in the zoom meeting and or
the google classroom. You may send your picture or pictures to your
classmates’ Bluetooth and have discussion with them.

Lesson IV

Modern World System

The periphery of a world-economy is that geographical sector of it wherein

production is primarily of lower-ranking goods ... but which is an integral part of the
overall system of the division of labor, because the commodies involved are
essential for daily use.  The external arena of a world-economy consists of those
other world-systems with which a given world-economy has some kind of trade
relationship ... what was sometimes called the "rich trades."

Objectives

At the end of the lesson students will be able to :

1. Demonstrate awareness through their discussion about world system.

2. Classify situations in their society where conditions of people’s lives were
affected by sudden change of labor system and economy.

The concept of "world system" is itself a key component of our current understanding
of globalization, in that it captures the idea of causal interconnectedness across the
globe among major organizations, firms, populations, and states.  

A world-system is a socioeconomic system, under systems theory, that

encompasses part or all of the globe, detailing the aggregate structural result of the
sum of the interactions between polities. World-systems are usually larger than
single states, but do not have to be global. The Westphalian System is the
preeminent world-system operating in the contemporary world, denoting the system
of sovereign states and nation-states produced by the Westphalian Treaties in 1648.
Several world-systems can coexist, provided that they have little or no interaction
with one another. Where such interactions becomes significant, separate world-
systems merge into a new, larger world-system. Through the process
of globalization, the modern world has reached the state of one dominant world-
system, but in human history there have been periods where separate world-
systems existed simultaneously, according to Janet Abu-Lughod. The most well-
known version of the world-system approach has been developed by Immanuel
Wallerstein. A world-system is a crucial element of the world-system theory, a
multidisciplinary, macro-scale approach to world history and social change.

Characteristics
World-systems are defined by the existence of a division of labor. The modern world-
system has a multi-state political structure (the interstate system) and therefore its
division of labor is international division of labor. In the modern world-system, the
division of labor consists of three zones according to the prevalence of profitable
industries or activities: core, semiperiphery, and periphery. Countries tend to fall into
one or another of these interdependent zones core countries, semi-periphery
countries and the periphery countries.[1][2] Resources are redistributed from the
underdeveloped, typically raw materials-exporting, poor part of the world (the
periphery) to developed, industrialized core.
World-systems, past world-systems and the modern world-system, have temporal
features. Cyclical rhythms represent the short-term fluctuation of economy,
while secular trends mean deeper long run tendencies, such as general economic
growth or decline. The term contradiction means a general controversy in the
system, usually concerning some short term vs. long term trade-offs. For example,
the problem of underconsumption, wherein the drive-down of wages increases the
profit for the capitalists on the short-run, but considering the long run, the decreasing
of wages may have a crucially harmful effect by reducing the demand for the
product. The last temporal feature is the crisis: a crisis occurs, if a constellation of
circumstances brings about the end of the system.
The world-systems theory stresses that world-systems (and not nation states) should
be the basic unit of social analysis. Thus we should focus not on individual states,
but on the relations between their groupings (core, semi-periphery, and periphery).

Activities:

1. In the case of the Philippines, how much do you think are we involved in the
modern world system? What do you think are the advantages and
disadvantages of being a part of such?
2. How can we “upgrade” our economy given the strength of the global
economy, especially the giant economies like the United States and Japan?
3. How do we examine economic globalization considering our colonial history?

Summary

While globalisation has led to the convergence of more developed economies, many

argue that the welfare gap between the more and less developed economies is
growing. ‘Global economics’ looks at how trade has shaped the global economy and
considers the costs and benefits of free trade – it also provides an analysis of the
major problems facing the global economy in the 21st Century, and provides an
analysis of the financial crisis and the rise of powerful trading blocs. Globalisation
has, however, enabled powerful multinationals to avoid taxes by employing complex
tax systems.
The global economy provides linkages between the regions and nations of the world
in a system of economic relationships. These relationships involve the exchange of
goods and services, financial flows across borders, exchanging different nations'
currencies, movement of people in search of better standards of living. If the global
economy is defined as the economic interactions of among the community of
nations, then global economic issues deal with issues and controversies surrounding
these economic interactions.

References

Adonis, A. 1994. Lines open for the global village. Financial Times, p. 8.

https://sourcebooks.fordham.edu/. Retrieved July 8, 2020.

https://www.educationworld.com/a_lesson/02/lp287-02.shtml on Global Economy.

Date Retrieved July 29, 2020

Karunungan, C. A. 2019. Effects of Globalization. Pacita Printing Press, Marikina.

https://2012books.lardbucket.org/books/sociology-brief-edition-v1.1/s09-05-global-
stratification.html. Date retrieved July 29, 2020

CHAPTER III
In this chapter, students will be able to:

1. identify and explain economic concepts and theories related to the behavior of
economic agents, markets, industry and firm structures, legal institutions, social
norms, and government policies.

2. integrate theoretical knowledge with quantitative and qualitative evidence in order

to explain past economic events and to formulate predictions on future ones.

c. evaluate the consequences of economic activities and institutions for individual

and social welfare.

MARKET INTEGRATION

The social institution that has one of the biggest impacts on society is the economy.
You might think of economy in terms of number – number of unemployed, gross
domestic product ( GDP ), or whatever the stock market is doing today. While we
often talk, about it in numerical terms, the economy is composed of people. It is the
social institution that organizes all production, consumption, and trade of goods in
the society. There are many ways in which products can be made, exchanged, and
used.

This chapter will show the contributions of the different financial and economic
institutions that facilitated the growth of the global economy. The history of the global
market will be discussed by looking at the different economic revolutions. The growth
and dynamics of multinational corporations that are emerging in today’s world
economy will also be examined.

Lesson I

International Financial Institutions

At the end of the lesson, students will be able to:

Objectives

1. Identify the different international financial institutions

2. Explain the details of each international financial institutions

Stylized facts about trade tell us that one of the outcomes that should result from a
regional trade agreement is increased market integration among the member states.
Market integration then becomes a necessary, but not sufficient condition to ensure
the movement of resources from inefficient into efficient industries among those
countries engaged in trade liberalization. It is this movement of resources that
provide the gains from trade. If market integration does not arise, trade-liberalizing
initiatives cannot function as predicted.
Bretton Woods Agreement

The Bretton Woods Agreement was negotiated in July 1944 by delegates from 44
countries at the United Nations Monetary and Financial Conference held in Bretton
Woods, New Hampshire. Thus, the name “Bretton Woods Agreement.

Under the Bretton Woods System, gold was the basis for the U.S. dollar and other
currencies were pegged to the U.S. dollar’s value. The Bretton Woods System
effectively came to an end in the early 1970s when President Richard M. Nixon
announced that the U.S. would no longer exchange gold for U.S. currency.

The Bretton Woods Agreement and System Explained

Approximately 730 delegates representing 44 countries met in Bretton Woods in July

1944 with the principal goals of creating an efficient foreign exchange system,
preventing competitive devaluations of currencies, and promoting international
economic growth. The Bretton Woods Agreement and System were central to these
goals. The Bretton Woods Agreement also created two important organizations—the
International Monetary Fund (IMF) and the World Bank. While the Bretton Woods
System was dissolved in the 1970s, both the IMF and World Bank have remained
strong pillars for the exchange of international currencies.

Though the Bretton Woods conference itself took place over just three weeks, the
preparations for it had been going on for several years. The primary designers of the
Bretton Woods System were the famous British economist John Maynard
Keynes and American Chief International Economist of the U.S. Treasury
Department Harry Dexter White. Keynes’ hope was to establish a powerful global
central bank to be called the Clearing Union and issue a new international reserve
currency called the bancor. White’s plan envisioned a more modest lending fund and
a greater role for the U.S. dollar, rather than the creation of a new currency. In the
end, the adopted plan took ideas from both, leaning more toward White’s plan.

It wasn't until 1958 that the Bretton Woods System became fully functional. Once
implemented, its provisions called for the U.S. dollar to be pegged to the value of
gold. Moreover, all other currencies in the system were then pegged to the U.S.
dollar’s value. The exchange rate applied at the time set the price of gold at $35 an
ounce.

SIGNIFICANT PERFORMANCE

 The Bretton Woods Agreement and System created a collective international

currency exchange regime that lasted from the mid-1940s to the early 1970s.
 The Bretton Woods System required a currency peg to the U.S. dollar which
was in turn pegged to the price of gold.
 The Bretton Woods System collapsed in the 1970s but created a lasting
influence on international currency exchange and trade through its
development of the IMF and World Bank.
Benefits of Bretton Woods Currency Pegging

The Bretton Woods System included 44 countries. These countries were brought
together to help regulate and promote international trade across borders. As with the
benefits of all currency pegging regimes, currency pegs are expected to provide
currency stabilization for trade of goods and services as well as financing.

All of the countries in the Bretton Woods System agreed to a fixed peg against the
U.S. dollar with diversions of only 1% allowed. Countries were required to monitor
and maintain their currency pegs which they achieved primarily by using their
currency to buy or sell U.S. dollars as needed. The Bretton Woods System,
therefore, minimized international currency exchange rate volatility which helped
international trade relations. More stability in foreign currency exchange was also a
factor for the successful support of loans and grants internationally from the World
Bank.

The IMF and World Bank

The Bretton Woods Agreement created two Bretton Woods Institutions, the IMF and
the World Bank. Formally introduced in December 1945 both institutions have
withstood the test of time, globally serving as important pillars for international capital
financing and trade activities.

The purpose of the IMF was to monitor exchange rates and identify nations that
needed global monetary support. The World Bank, initially called the International
Bank for Reconstruction and Development, was established to manage funds
available for providing assistance to countries that had been physically and
financially devastated by World War II. In the twenty-first century, the IMF has 189
member countries and still continues to support global monetary cooperation.
Tandemly, the World Bank helps to promote these efforts through its loans and
grants to governments.

The Bretton Woods System’s Collapse

In 1971, concerned that the U.S. gold supply was no longer adequate to cover the
number of dollars in circulation, President Richard M. Nixon devalued the U.S. dollar
relative to gold. After a run on gold reserve, he declared a temporary suspension of
the dollar’s convertibility into gold. By 1973 the Bretton Woods System had
collapsed. Countries were then free to choose any exchange arrangement for their
currency, except pegging its value to the price of gold. They could, for example, link
its value to another country's currency, or a basket of currencies, or simply let it float
freely and allow market forces to determine its value relative to other countries'
currencies.

The Bretton Woods Agreement remains a significant event in world financial history.
The two Bretton Woods Institutions it created in the International Monetary Fund and
the World Bank played an important part in helping to rebuild Europe in the aftermath
of World War II. Subsequently, both institutions have continued to maintain their
founding goals while also transitioning to serve global government interests in the
modern-day.
GATT and the Goods Council 

The General Agreement on Tariffs and Trade (GATT) covers international trade in
goods. The workings of the GATT agreement are the responsibility of the Council for
Trade in Goods (Goods Council) which is made up of representatives from all WTO
member countries. The current chair is Ambassador Mikael ANZÉN (Sweden).
The Goods Council has 10 committees dealing with specific subjects (such as
agriculture, market access, subsidies, anti-dumping measures and so on). Again,
these committees consist of all member countries.
Also reporting to the Goods Council are a working party on state trading enterprises,
and the Information Technology Agreement (ITA) Committee.

IMF AND THE WORLD BANK

The IMF’s mandate. The IMF promotes international monetary cooperation and
provides policy advice and technical assistance to help countries build and maintain
strong economies. The IMF also makes loans and helps countries design policy
programs to solve balance of payments problems when sufficient financing on
affordable terms cannot be obtained to meet net international payments. IMF loans
are short and medium term and funded mainly by the pool of quota contributions that
its members provide. IMF staff are primarily economists with wide experience in
macroeconomic and financial policies. The World Bank’s mandate. The World Bank
promotes long-term economic development and poverty reduction by providing
technical and financial support to help countries reform particular sectors or
implement specific projects—such as building schools and health centers, providing
water and electricity, fighting disease, and protecting the environment. World Bank
assistance is generally long term and is funded both by member country
contributions and through bond issuance. World Bank staff are often specialists in
particular issues, sectors, or techniques.

What Is the Organisation for Economic Co-operation and Development?

The Organisation for Economic Co-operation and Development (OECD) is a group of
34 member countries that discuss and develop economic and social policy. OECD
members are democratic countries that support free-market economies.

OECD, OPEC, EU

Understanding the Organisation for Economic Co-operation and Development

(OECD)?
The Organisation for Economic Co-operation and Development (OECD) is variously
referred to as a think tank or monitoring group. Its stated goals include fostering
economic development and cooperation, fighting poverty, and ensuring the
environmental impact of growth and social development is always considered. Over
the years, it has dealt with a range of issues, including raising the standard of
living in member countries, contributing to the expansion of world trade and
promoting economic stability.
The OECD was established on Dec. 14, 1960, by 18 European nations plus the
United States and Canada. It has expanded over time to include members from
South America and the Asia-Pacific region.

Functions

The OECD publishes economic reports, statistical databases, analyses, and

forecasts on the outlook for economic growth worldwide. Reports are variously
global, regional, or national in orientation. The group analyzes and reports on the
impact of social policy issues such as gender discrimination on economic growth,
and makes policy recommendations designed to foster growth with sensitivity to
environmental issues. The organization also seeks to eliminate bribery and other
financial crime worldwide.

The OECD maintains a so-called "black list" of nations that are considered
uncooperative tax havens. It led a two-year effort with the Group of 20 (G20) nations
to encourage tax reform worldwide and eliminate tax avoidance by profitable
corporations. The recommendations presented at the end of the project included an
estimate that such avoidance costs the world's economies between $100 billion and
$240 billion in tax revenue annually. The group provides consulting assistance and
support to nations in central and eastern Europe that implement market-based
economic reforms.

OPEC

The Organization of the Petroleum Exporting Countries (OPEC) is a permanent,

intergovernmental Organization, created at the Baghdad Conference on September
10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The five Founding
Members were later joined by: Qatar (1961) – terminated its membership in January
2019; Indonesia (1962) – suspended its membership in January 2009, reactivated it
in January 2016, but decided to suspend it again in November 2016; Libya (1962);
United Arab Emirates (1967); Algeria (1969); Nigeria (1971); Ecuador (1973) –
suspended its membership in December 1992, reactivated it in October 2007, but
decided to withdraw its membership effective 1 January 2020; Angola (2007); Gabon
(1975) - terminated its membership in January 1995 but rejoined in July 2016;
Equatorial Guinea (2017); and Congo (2018). OPEC had its headquarters in
Geneva, Switzerland, in the first five years of its existence. This was moved to
Vienna, Austria, on September 1, 1965.
OPEC's objective is to co-ordinate and unify petroleum policies among Member
Countries, in order to secure fair and stable prices for petroleum producers; an
efficient, economic and regular supply of petroleum to consuming nations; and a fair
return on capital to those investing in the industry.

NAFTA

What Is the North American Free Trade Agreement (NAFTA)?

The North American Free Trade Agreement (NAFTA) was implemented in order to

promote trade between the U.S., Canada, and Mexico. The agreement,
which eliminated most tariffs on trade between the three countries, went into effect
on January 1, 1994. Numerous tariffs–particularly those related to agriculture,
textiles, and automobiles–were gradually phased out between January 1, 1994 and
January 1, 2008.

Why NAFTA Was Formed

About one-fourth of all U.S. imports, such as crude oil, machinery, gold, vehicles,
fresh produce, livestock, and processed foods, originate from Canada and Mexico,
which are the U.S.'s second- and third-largest suppliers of imported goods. In
addition, approximately one-third of U.S. exports, particularly machinery, vehicle
parts, mineral fuel/oil, and plastics are destined for Canada and Mexico.

SIGNIFICANT PERFORMANCE

 The North American Free Trade Agreement (NAFTA) was implemented in

1994 to encourage trade between the U.S., Mexico, and Canada.
 President Trump made a campaign promise to repeal NAFTA, and in August
2018, he announced a new trade deal with Mexico to replace it.
 In September 2018, Canada joined the deal: the United States-Mexico-
Canada Agreement (USMCA), which was signed into effect on November 30,
2018.

The legislation was developed during George H. W. Bush's presidency as the first
phase of his Enterprise for the Americas Initiative. The Clinton administration, which
signed NAFTA into law in 1993, believed it would create 200,000 U.S. jobs within
two years and 1 million within five years because exports play a major role in U.S.
economic growth. The administration anticipated a dramatic increase in U.S. imports
from Mexico as a result of the lower tariffs.

Additions to NAFTA
NAFTA was supplemented by two other regulations: the North American Agreement
on Environmental Cooperation (NAAEC) and the North American Agreement on
Labor Cooperation (NAALC). These tangential agreements were intended to prevent
businesses from relocating to other countries to exploit lower wages, more lenient
worker health and safety regulations, and looser environmental regulations.

NAFTA did not eliminate regulatory requirements on companies wishing to trade

internationally, such as rule-of-origin regulations and documentation requirements
that determine whether certain goods can be traded under NAFTA. The free-
trade agreement also contains administrative, civil, and criminal penalties for
businesses that violate any of the three countries’ laws or customs procedures.

Activities

Do a file of these activities and pass through hard copies. Submission will be at
SKSU Tacurong City Campus through the Security Men. Request any of your
guardian: ages not younger than 21 years old and or older than 59 years old ( 59
years old but not 60 years old ).

1. Analyze the “global” nature of multinational corporations. In what ways these

corporations help nations stabilize their economy?
2. In the case of our country, the Philippines, gather information backed by facts
on how International Monetary Fund and World Bank enter into transactions?
3. Do you think the positive effects of multinational corporations outweigh the
negative effects? Why or why not?
4. What do you think are the ways to lessen, if not eliminate, the negative
consequences of multinational corporations?

Lesson II

HISTORY OF GLOBAL MARKET INTEGRATION

Before the rise of today’s modern economy, people only produced for their family.
Nowadays, economy demands the different sectors to work together in order to
produce, distribute, and exchange products and services.

At the end of the lesson, students will be able to:

1. Appreciate the history of market integration

2. Discuss in details the importance of the existence of the different
institutions involved in the evolution of market integration.

Before the rise of today’s modern economy, people only produced for their family.
Nowadays, economy demands the different sectors to work together in order to
produce, distribute, and exchange products and services.

Historians have often labeled the first Agricultural Revolution (which took place
around 10,000 B.C.) as the period of transition from a hunting-and-gathering society
to one based on stationary farming. During the 18th century, another Agricultural
Revolution took place when European agriculture shifted from the techniques of the
past.
New patterns of crop rotation and livestock utilization paved the way for better crop
yields, a greater diversity of wheat and vegetables and the ability to support more
livestock. These changes impacted society as the population became better
nourished and healthier. The Enclosure Acts, passed in Great Britain, allowed
wealthy lords to purchase public fields and push out small-scale farmers, causing a
migration of men looking for wage labor in cities. These workers would provide the
labor for new industries during the Industrial Revolution.
The Agricultural Revolution began in Great Britain around the turn of the 18th
century. Several major events, which will be discussed in more detail later, include:
  The perfection of the horse-drawn seed press, which would make farming less
labor intensive and more productive.
 The large-scale growth of new crops, such as potato and maize, by 1750.
 The passing of the Enclosure Laws, limiting the common land available to
small farmers in 1760.

Contributing Factors to the Agricultural Revolution

In many ways, British agriculture advanced more rapidly than any other European
nation. The increased agricultural production of the 18th century can be traced to
four interrelated factors:

 The increased availability of farmland

 A favorable climate
 More livestock
 Improved crop yield

Let's look at each of these areas in more detail. The available farmland increased
due to changes in landholding patterns spurred on by new methods of cultivation.
Previously, the open-field system was prominent. This system was problematic
because it allowed part of the land to remain unplanted at all times in order to avoid
depleting the soil. Since growing crops removes nutrients from the soil, a field must
be replenished in order to continue to yield food.
One solution to this situation was to continue to move crops to different land. This
was not feasible in Great Britain because the country lacked a large percentage of
available land. Instead, farmers began to utilize barren soil by planting different
crops, such as clover or turnips.
These plants have roots rich in nitrogen, a necessity for replenishing soil. The
cultivation of turnips was important because they could be left in the ground through
the winter. This ultimately led to an increase in livestock because these plants were
also utilized for grazing. The boost in livestock fundamentally changed the diet of
much of Europe.
Not only were Europeans consuming more meat, but the livestock was producing
much needed fertilizer for crops. The addition of fertilizer allowed an improved
production rate per acre. By the beginning of the 18th century, the colder climate of
the 'little ice age' had ended. The resulting mild summer months created ideal
conditions for crop cultivation.

Important Inventors
Several innovators created tools that greatly influenced the new agriculture. For
instance, a significant step forward was pioneered by Jethro Tull, an English
agriculturist.
Consequences of the Agricultural Revolution

 Without the Agricultural Revolution, the growing population of England would have
starved and the Industrial Revolution would have been stiffled.
 It used to be thought that enclosure displaced farm-workers to the towns, but
historians now doubt this. In the short term, enclosure needed more labourers to
build the farms and the fences.
 In the long term, however, increased use of machinery meant that fewer farm
workers were needed. They left the land and went to the industrial towns of the
north of England.
The Agricultural Revolution can therefore be seen as very significant. Historians
debate whether or not it is of equal significance to the Industrial Revolution. The
Industrial Revolution certainly did more for the country’s development but may not
have existed without the Agricultural Revolution.

The Industrial Revolution

The Industrial Revolution brought the United Kingdom into an era of technology and
productivity. It created wealth for many but social problems and poverty for others.

The historian Arnold Toynbee created the idea that between 1750 and 1830, there
was an 'Agricultural Revolution'. Toynbee and other historians of the time presented
the Revolution as the work of 'heroes':

 Jethro Tull promoted the use of the seed drill and the use of horses to pull
machinery rather than oxen.
 Charles 'Turnip' Townshend introduced the turnip and the Norfolk four-course
rotation of wheat‒turnips‒barley‒clover onto his farm.
 Robert Bakewell used selective breeding to develop the New Leicester sheep and
the Colling brothers promoted the selective breeding of Longhorn cattle.
 Thomas Coke of Holkham publicised these new ideas by inviting hundreds of
people to his 'sheep shearings', ie agricultural shows.
 Arthur Young wrote about the new methods and spread ideas more widely.
 The Parliamentary Enclosure Movement was said to have destroyed the old three-
field system and created the modern 'patchwork' of enclosed fields.

Activities

1. How do you observe the condition of Philippines’ agricultural systems?

2. What welfare are they receiving from the government?
3. How sensitive is our government to the farmers when it comes to their
ability to compete with the other nations?

Lesson III

Economic Systems
Mechanization of the manufacturing process led to the Industrial Revolution which
gave rise to two major competing economic systems: capitalism and socialism.
Under capitalism, private owners invest their capital and that of others to produce
goods and services they can sell in an open market. Prices and wages are set by
supply and demand and competition. Under socialism, the means of production is
commonly owned, and part or all of the economy is centrally controlled by
government. Several countries’ economies feature a mix of both systems.

CAPITALISM AND SOCIALISM

Capitalism

Scholars don’t always agree on a single definition of capitalism. For our purposes,
we will define capitalism as an economic system in which there is private ownership
(as opposed to state ownership) and where there is an impetus to produce profit,
and thereby wealth. This is the type of economy in place in the United States today.
Under capitalism, people invest capital (money or property invested in a business
venture) in a business to produce a product or service that can be sold in a market to
consumers. The investors in the company are generally entitled to a share of any
profit made on sales after the costs of production and distribution are taken out.
These investors often reinvest their profits to improve and expand the business or
acquire new ones. To illustrate how this works, consider this example. Sarah,
Antonio, and Chris each invest $250,000 into a start-up company that offers an
innovative baby product. When the company nets $1 million in profits its first year, a
portion of that profit goes back to Sarah, Antonio, and Chris as a return on their
investment. Sarah reinvests with the same company to fund the development of a
second product line, Antonio uses his return to help another start-up in the
technology sector, and Chris buys a yacht.

To provide their product or service, owners hire workers to whom they pay wages.
The cost of raw materials, the retail price they charge consumers, and the amount
they pay in wages are determined through the law of supply and demand and by
competition. When demand exceeds supply, prices tend to rise. When supply
exceeds demand, prices tend to fall. When multiple businesses market similar
products and services to the same buyers, there is competition. Competition can be
good for consumers because it can lead to lower prices and higher quality as
businesses try to get consumers to buy from them rather than from their competitors.

Wages tend to be set in a similar way. People who have talents, skills, education, or
training that is in short supply and is needed by businesses tend to earn more than
people without comparable skills. Competition in the workforce helps determine how
much people will be paid. In times when many people are unemployed and jobs are
scarce, people are often willing to accept less than they would when their services
are in high demand. In this scenario, businesses are able to maintain or increase
profits by not increasing workers’ wages.

Capitalism in Practice
As capitalists began to dominate the economies of many countries during the
Industrial Revolution, the rapid growth of businesses and their tremendous
profitability gave some owners the capital they needed to create enormous
corporations that could monopolize an entire industry. Many companies controlled all
aspects of the production cycle for their industry, from the raw materials, to the
production, to the stores in which they were sold. These companies were able to use
their wealth to buy out or stifle any competition.

In the United States, the predatory tactics used by these large monopolies caused
the government to take action. Starting in the late 1800s, the government passed a
series of laws that broke up monopolies and regulated how key industries—such as
transportation, steel production, and oil and gas exploration and refining—could
conduct business. The main statutes were the Sherman Act of 1890, the Clayton Act
of 1914, and the Federal Trade Commission Act of 1914. These Acts, first, restricted
the formation of cartels and prohibit other collusive practices regarded as being in
restraint of trade. Second, they restricted the mergers and acquisitions of
organizations that could substantially lessen competition. Third, they prohibited the
creation of a monopoly and the abuse of monopoly power.

The United States is considered a capitalist country. However, the U.S. government
has a great deal of influence on private companies through the laws it passes and
the regulations enforced by government agencies. Through taxes, regulations on
wages, guidelines to protect worker safety and the environment, plus financial rules
for banks and investment firms, the government exerts a certain amount of control
over how all companies do business. State and federal governments also own,
operate, or control large parts of certain industries, such as the post office, schools,
hospitals, highways and railroads, and many water, sewer, and power utilities.
Debate over the extent to which the government should be involved in the economy
remains an issue of contention today. Some criticize such involvements as socialism
(a type of state-run economy), while others believe intervention and oversight is
necessary to protect the rights of workers and the well-being of the general
population.

Socialism

Socialism is an economic system in which there is government ownership (often

referred to as “state run”) of goods and their production, with an impetus to share
work and wealth equally among the members of a society. Under socialism,
everything that people produce, including services, is considered a social product.
Everyone who contributes to the production of a good or to providing a service is
entitled to a share in any benefits that come from its sale or use. To make sure all
members of society get their fair share, governments must be able to control
property, production, and distribution.

The focus in socialism is on benefitting society, whereas capitalism seeks to benefit

the individual. Socialists claim that a capitalistic economy leads to inequality, with
unfair distribution of wealth and individuals who use their power at the expense of
society. Socialism strives, ideally, to control the economy to avoid the problems
inherent in capitalism.
Within socialism, there are diverging views on the extent to which the economy
should be controlled. One extreme believes all but the most personal items are
public property. Other socialists believe only essential services such as healthcare,
education, and utilities (electrical power, telecommunications, and sewage) need
direct control. Under this form of socialism, farms, small shops, and businesses can
be privately owned but are subject to government regulation.

The other area on which socialists disagree is on what level society should exert its
control. In communist countries like the former Soviet Union, or modern-day China,
Vietnam, and North Korea, the national government controls both politics and the
economy, and many goods are owned in common. Ideally, these goods would
be available to all as needed, although this often plays out differently in theory than
in practice. Communist governments generally have the power to tell businesses
what to produce, how much to produce, and what to charge for it. There are varying
practices within and between communist nations; for example, while China is still
considered to be a communist nation, it has adopted many aspects of a market
economy. Other socialists believe control should be decentralized so it can be
exerted by those most affected by the industries being controlled. An example of this
would be a town collectively owning and managing the businesses on which its
residents depend.

Because of challenges in their economies, several of these communist countries

have moved from central planning to letting market forces help determine many
production and pricing decisions. Market socialism describes a subtype of socialism
that adopts certain traits of capitalism, like allowing limited private ownership or
consulting market demands. This could involve situations like profits generated by a
company going directly to the employees of the company or being used as public
funds (Gregory and Stuart 2003). Many Eastern European and some South
American countries have mixed economies. Key industries are nationalized and
directly controlled by the government; however, most businesses are privately
owned but regulated by the government.

Socialism in Practice

As with capitalism, the basic ideas behind socialism go far back in history. Plato, in
ancient Greece, suggested a republic in which people shared their material goods.
Early Christian communities believed in common ownership, as did the systems of
monasteries set up by various religious orders. Many of the leaders of the French
Revolution called for the abolition of all private property, not just the estates of the
aristocracy they had overthrown. Thomas More’s Utopia, published in 1516,
imagined a society with little private property and mandatory labor on a communal
farm. A utopia has since come to mean an imagined place or situation in which
everything is perfect. Most experimental utopian communities have had the abolition
of private property as a founding principle.

Modern socialism really began as a reaction to the excesses of uncontrolled

industrial capitalism in the 1800s and 1900s. The enormous wealth and lavish
lifestyles enjoyed by the propertied classes contrasted sharply with the miserable
conditions of the workers.
Some of the first great sociological thinkers studied the rise of socialism. Max Weber
admired some aspects of socialism, especially its rationalism and its emphasis on
social reform, but he worried that letting the government have complete control could
result in an “iron cage of future bondage” from which there is no escape (Greisman
and Ritzer 1981). Pierre-Joseph Proudon (1809−1865) was another early socialist
who thought socialism could be used to create utopian communities. In his 1840
book, What Is Property?, he famously stated that “property is theft” (Proudon 1840).
By this he meant that if an owner did not work to produce or earn the property, then
the owner was stealing it from those who did. Proudon believed economies could
work using a principle called mutualism, under which individuals and cooperative
groups would exchange products with one another on the basis of mutually
satisfactory contracts (Proudon 1840).

By far the most important influential thinker on socialism is Karl Marx. Through his
own writings and those with his collaborator, industrialist Friedrich Engels, Marx used
a scientific analytical process to show that throughout history, the resolution of class
struggles caused economic and cultural changes. He saw the relationships evolving
from slave and owner, to serf and lord, to journeyman and master, to worker and
owner. Neither Marx nor Engels thought socialism could be used to set up small
utopian communities. Rather, they believed a socialist society would be created after
workers rebelled against capitalistic owners and seized the means of production.
They felt industrial capitalism was a necessary step that raised the level of
production in society to a point where it could then be reconfigured so as to produce
a more egalitarian socialist and then communist state (Marx and Engels 1848).
Marxist ideas have provided much of the foundation for the influential sociological
paradigm called conflict theory.

Summary

In this chapter the theoretical background of market integration related various

concepts have been discussed thoroughly. This chapter also reviewed various
statistical and econometric techniques from the earlier literature to verify the validity
of market integration hypothesis. A series of techniques right from correlation
coefficient, variance component approach, autoregressive model, distributed lag
model, Ravallion model, EngleGranger Co-integration technique to Parity Bound
Model are explained in detail. Market integration of agricultural products in India is
also discussed briefly with specific examples of markets for rice, wheat and chickpea
in India. Overall this chapter provides consolidated review of theories of market
integration with practical implementations.

Market integration is one of the ways to ascertain the extent of competitiveness in

market. The marketing system is seen as efficient if the movement of goods from
producers to consumers is undertaken at the lowest cost consistent with the
provision of services and facilities that consumers desire and are able to pay for.
Improving the efficiency of marketing system is not as easy task. It requires a
holistic, multi-disciplinary, multi level systematic and coordinated approach in the
identification and analysis of constraints in the production, marketing and
consumption sectors that hamper marketing system development.
ACTIVITIES:

1. In what ways can capitalistic and socialistic economy converge?

2. Analyze the “global” nature of multinational corporations.
3. Do you think the positive effects of multinational corporations outweigh the
negative effects? Why or why not ?
4. What do you think are the ways to lessen, if not eliminate, the negative
consequences of multinational corporations?

REFERENCES:

Roosevelt Institute (2012). Franklin D. Roosevelt: Socialist or “Champion of

Freedom”? Retrieved from http://rooseveltinstitute.org/rediscovering-
governmentfranklin-d-roosevelt-socialist-or-champion-freedom/. 

https://courses.lumenlearning.com/wm-introductiontosociology/chapter/capitalism-
and-socialism/. Retrieved July 8, 2020
 CHAPTER IV

At the end of this chapter, students will be able to:

1. Determine how regional alliances and worldwide organization of states

manifests the efforts of countries and governments in the world to cooperate
and collaborate together in international economic bond bodies.

THE GLOBAL INTERSTATE SYSTEM

Global Interstate System is the whole system of human interactions. The

modern world-system is structured politically as an interstate system – a system of
competing and allying states. Political Scientists commonly call this the
international system, and it is the main focus of the field of International Relations.

The state has traditionally been the subject of most interest to scholars of global
politics because it is viewed as “ the institution that creates warfare and sets
economic policies for a country”. Furthermore, the state is a political unit that has
authority over its own affairs.

Lesson I

Global Governance in the Twenty – First Century

There is a series of specific factors behind the emergence of global governance. The
first on the list must be the declining power of nation – states. If states themselves
were highly contingent and in flux, it would open the possibility of the emergence of
some form of global governance to fill the void.

Objectives

1. Explain the interaction between the nation – state and international

organizations.
2. Identify the roles of the government in international relations.
3. Elaborate in detail if civil societies and other organizations are truly separated
from the government’s actions and policies.

  The sociology of development, broadly construed, is the study and explanation of

human social change in general, including the emergence of social complexity and
hierarchy during, and since, the Stone Age. Most of the social science literature has
focused on the transition from “tradition” to “modernity,” which are usually
understood as characteristics of national societies such as urbanization,
industrialization, and the demographic transition. The rise of globalization studies
has shifted the focus to an emerging world society in which nation-states are
understood as interacting organizations that claim sovereignty over a delimited
territory and national societies are seen to be highly interdependent on the larger
global system.  The world-systems perspective on modernity claims that this high
degree of interdependence is not a recent phenomenon and that an important
dimension of the global system has been, and continues to be, its stratification
structure that is organized as a core/periphery hierarchy in which some national
societies have far more power and wealth than others.

The world-systems perspective emerged during the world revolution of 1968

and the anti-war movement that produced a generation of scholars who saw the
peoples of Global South (then called the “Third World”) as more than an
underdeveloped backwater. It became widely understood that a global power
structure existed and that the peoples of the non-core had been active participants in
their own liberation. The history of colonialism and decolonization were seen to have
importantly shaped the structures and institutions of the whole global system. A more
profound awareness of Eurocentrism was accompanied by the realization that most
national histories had been written as if each country were on the moon. World
history courses had introduced high school and college students to the stories of
non-European civilizations and global history. The nation state as an inviolate,
pristine unit of analysis was now seen to be an inadequate model for the sociology of
development.  

This awareness of a larger global context spread widely as globalization itself

became a focus of public and scholarly discourse. Some versions claimed that the
world was now flat, and that international hierarchy is a thing of the past that has
been transcended by instantaneous communication and the world market.  Some of
the global historians have claimed, along with the theorists of a new global stage of
capitalism, that the world had, in the last decades of the twentieth century,
transitioned from a set of weakly linked national economies to a recently emerged
single global economy. Instead, the world-systems perspective sees waves of
integration (globalization) that have occurred throughout human history (Chase-Dunn
1999; Chase-Dunn and Lerro 2014) and the contemporary reproduction of global
inequalities that continue to make global collective action extremely difficult. We
agree with most of Michael Mann’s (2013:3) criticisms of the “hyperglobalizers” who
see a recent radical transformation to a completely different kind of global social
order. Mann’s (2013) analysis of four inter-related but relatively autonomous strands
of political, military, economic and ideological globalization since 1945 is
substantially accurate despite his metatheoretical presumption that there is no single
integrated global system.

World-systems are whole systems of interacting polities and

settlements.  Systemness means that these polities and settlements are interacting
with one another in important ways – interactions are two-way, necessary,
structured, regularized and reproductive.  Systemic interconnectedness exists when
interactions importantly influence the lives of people and are consequential for social
continuity or social change. All premodern world-systems extended over only parts of
the Earth. The word “world” refers to the importantly connected interaction networks
in which people live, whether these are spatially small or large. 

            There is also the question of endogenous (internal) systems versus

exogenous (external) impacts. The notion of systemness requires distinction
between endogenous processes that are regularly interactive and systemic, on the
one hand, and exogenous impacts that may have large effects on a system, but are
not part of that system. The diffusion of genetic materials and technologies can have
profound long distance effects even though there are no regularized or frequent
interactions. But single events that have such consequences should not be
considered to be part of a sociocultural system.  Climatic changes often have
important impacts on human societies, but we do not try to include them as
endogenous variables in our models of social systems until climate change becomes
anthropogenic. Analogously collision with large asteroids have had huge
consequences for biological evolution, but biologists do not include these as
endogenous factors in biological evolution. Similarly, long distance diffusion of ideas,
technologies, plants and animals is an important process that needs to be studied in
its own right, and its impact on local systems must be acknowledged and
understood, but models of sociocultural change must distinguish between
endogenous processes and exogenous impacts.  Endogeniety vs. exogenous factors
is the basic theoretical and empirical issue that must be sorted out in specification of
systemic wholeness.

Only the modern world-system has become a global (Earth-wide) system

composed of national societies and their states. It is a single global economy
composed of international trade and capital flows, transnational corporations that
produce products on several continents, as well as all the economic transactions that
occur within countries and at local levels. The whole world-system is more than just
international relations. It is the whole system of human interactions. The world
economy is now all the economic interactions of all the people on Earth, not just
international trade and investment.

Activities

1. Examine the interaction between the nation – state and international

organizations. Which has the greatest impact on governments?

2. Do civil society and INGOs strengthen or undermine the role of the

governments in international relations? Why or why not?

3. Are the civil society and other organizations truly separated from the
governments’ actions and policies? In what ways can the state maintain its
sovereignty and globalization?

Lesson II

Cultures in the Global Inter – State System

The modern world-system is structured politically as an interstate system – a

system of competing and allying states. Political Scientists commonly call this the
international system, and it is the main focus of the field of International Relations.
Some of these states are much more powerful than others, but the main
organizational feature of the world political system is that it is multicentric. There is,
as yet, no world state. Rather there is a system of states. This is a fundamentally
important feature of the modern system and of most earlier regional world-systems
as well.

Objectives

1. Recognize the existing practices of the modern world socially, economically,

and politically.
2. Elaborate matters that have something to do with the operations of one
market.

 
When we compare different kinds of world-systems it is important to use
concepts that are applicable to all of them. “Polity” is a general term that means any
organization with a single authority that claims control over a territory or a group of
people.[4] Polities include bands, tribes and chiefdoms as well as states and empires.
All world-systems are composed of multiple interacting polities. Thus we can fruitfully
compare the modern interstate system with earlier interpolity systems in which there
were tribes or chiefdoms, but no states.

So the modern world-system is now a global economy with a global political

system (the modern interstate system). It also includes all the cultural aspects and
interaction networks of the human population of the Earth. Culturally the modern
system is composed of: several civilizational traditions, (e.g. Islam, Christendom,
Hinduism, Confucianism, etc.), nationally-defined cultural entities -- nations (and
these are composed of class and functional subcultures, e.g. lawyers, technocrats,
bureaucrats, etc.), and the cultures of indigenous and minority ethnic groups within
states. The modern system is multicultural in the sense that important political and
economic interaction networks connect people who have rather different languages,
religions and other cultural aspects. Most earlier world-systems have also been
multicultural.

But the modern system also has a single geoculture that has been emerging
since the late 18th century in the context  of the multicultural situation depicted above
(Wallerstein 2011b; Meyer 2009). This geoculture is most importantly structured by
the core, but it has also evolved in the context of a series of world revolutions in
which the peoples of the non-core have contested the global power structure, and
these have had important effects on the content of the geoculture.
One of the important systemic features of the modern system is the rise and
fall of hegemonic core powers – the so-called “hegemonic sequence” (Wallerstein
1984; Chase-Dunn 1998). A hegemon is a core state that has a significantly greater
amount of economic power than any other state, and that takes on the political role
of system leader. In the seventeenth century the Dutch Republic performed the role
of hegemon in the Europe-centered system, while Great Britain was the hegemon of
the nineteenth century, and the United States has been the hegemon in the twentieth
century. Hegemons provide leadership and order for the interstate system and the
world economy. But the normal operating processes of the modern system – uneven
economic development and competition among states – make it difficult for
hegemons to sustain their dominant positions, and so they tend to decline. Thus the
structure of the core oscillates back and forth between unipolar hegemony and a
situation in which several competing core states have roughly similar amounts of
power and are contending for hegemony – i.e. multipolar hegemonic rivalry.

Unipolar Hegemony and Multipolar Hegemonic Rivalry in the Core Zone

So the modern world-system is composed of states that are linked to one another by
the world economy and other interaction networks. Earlier world-systems were also
composed of polities, but the interaction networks that linked these polities were not
intercontinental in scale until the expansion of the Indian Ocean centered system
and then European expansion to the Americas in the long sixteenth century CE.
Before that world-systems were smaller regional affairs. But these had been growing
in size with the expansion of trade networks and long-distance military campaigns for
millennia.

Activities

1. Research about the allies of the Philippines. Be able to know the transactions
they made in the country and or what agreement they have casted in order to
exercise comraderie.
2. What is the role of the United Nations?

Lesson III

Core/Periphery Relations in the Global Inter – State System

The notion of core/periphery relations has been a central concept in both the
modern world-system perspective (Wallerstein 2011a) and in the comparative world-
systems perspective (Chase-Dunn and Hall 1997). World-systems are systems of
interacting polities and they often (but not always) are organized as interpolity
hierarchies in which some polities exploit and dominate other polities.  Chase-Dunn
and Hall (1997) redefined the core/periphery distinction to make it more useful for
comparing the modern world-system with earlier regional world-systems.

Objectives

At the end of the lesson, the students will be able to:

1. Comprehend the relations of between nations related to economy and

financial systems.
2. Interpret the different processes in the operation of global inter - state
 
The intent of using the word “core” rather than “center” is to clearly signal the
awareness that most interpolity hierarchies are multicentric. There is a region or
zone at the top layer of the hierarchy that is occupied by a set of allying and
competing polities. All hierarchical world-systems go through a cycle of rise and fall
in which a most powerful polity in the core grows and then declines.  But most
systems remain multicentric. The exceptions are what Chase-Dunn and Hall (1997,
see also Scheidel 2009) call “core-wide empires” in which a single polity conquers
and rules an entire core region. These have been rare. Large empires that claim to
control the universe rarely control all the core polities in their interaction system.
Even the Roman Empire never conquered the Parthian Empire.

Spatial Boundaries of World-Systems

Whole interaction networks are composed of regular and repeated interactions

among individuals and groups. Interaction may involve trade, communication,
threats, alliances, migration, marriage, gift giving or participation in information
networks such as radio, television, telephone conversations, and email. Conflict is
also an important form of sociation both within and between polities. Warfare,
ranging from ritual contests to ethnocide, has been an important player in the group
selection process that produces sociocultural evolution (Morris 2014, Turchin 2011).
Important interaction networks are those that affect peoples’ everyday lives, their
access to food and necessary raw materials, their conceptions of who they are, and
their security from, or vulnerability to, threats and violence. World-systems are
fundamentally composed of interaction networks.

One big difference between the modern world-system and earlier systems is
the spatial scale of different types of interaction networks. In the modern global
system most of the important interaction networks are themselves global in scale.
But in earlier smaller systems there was a significant difference in spatial scale
between networks in which food and basic raw materials were exchanged and much
larger networks of the exchange of prestige goods or luxuries. Different kinds of
important interaction had different spatial scales. Food and basic raw materials we
call “bulk goods” because they have a low value per unit of weight. It is
uneconomical to carry bulk foods very far under premodern conditions of
transportation.

Imagine that the only type of transportation available is people carrying goods
on their backs (or heads). This is a situation that actually existed everywhere until
the domestication of beasts of burden. Under these conditions a person can carry,
say, 30 kilograms of food. Imagine that this carrier is eating the food as s/he goes.
So after a few days walking all the food will be consumed. This is the economic limit
of food transportation under these conditions of transportation. This does not mean
that food will never be transported farther than this distance, but there would have to
be an important reason for moving it beyond its economic range. 
 Prestige goods are items that have great value and small size or items that
can easily be transported long distances intact and typically hold or increase their
value in transit (e.g. spices, jade, jewels or bullion). Prestige goods have a much
larger spatial range than do bulk goods because a small amount of such a good may
be exchanged for a great deal of food. This is why prestige goods networks are
normally much larger than bulk goods networks. A network does not usually end as
long as there are people with whom one might trade. Indeed most early trade was
what is called “down-the-line” trade in which goods were passed from group to
group. For any particular group the effective extent of its  trade network is that point
beyond which nothing that happens will affect the group of origin. 
 In order to bound interaction networks we need to pick a place from which to
start – the so-called “place-centric approach.” If we go looking for actual breaks in
interaction networks we will usually not find them, because almost all groups of
people interact with their neighbors. But if we focus upon a single settlement, for
example the indigenous village of Onancock on the Eastern shore of the
Chesapeake Bay before the arrival of the Europeans in the 17 th century CE (near the
boundary between what are now the states of Virginia and Maryland in the United
States), we can determine the spatial scale of the bulk goods interaction network by
finding out how far food moved to and from our focal village. [8] Food came to
Onancock from some maximum distance. A bit beyond that were groups that were
trading food to groups that were directly sending food to Onancock. If we allow two
indirect jumps we are probably far enough from Onancock so that no matter what
happens (e.g. a food shortage or surplus), it would not have affected the supply of
food in Onancock. This outer limit of Onancock’s indigenous bulk goods network
probably included villages at the very southern and northern ends of the
Chesapeake Bay. 

Onancock’s prestige goods network was much larger because prestige goods
move farther distances. Indeed, copper that was in use by the indigenous peoples of
the Chesapeake may have come from as far away as Lake Superior. In between the
size of bulk goods networks (BGNs) and prestige goods networks (PGNs) are the
interaction networks in which polities make war and ally with one another. These are
called political-military networks (PMNs). PMNs are interpolity (interstate)
systems. In the case of the Chesapeake world-system at the time of the arrival of the
Europeans in the sixteenth century Onancock was part of a district chiefdom in a
PMN of multi-village chiefdoms. Across the bay on the Western shore were at least
two larger polities, the Powhatan and the Conoy paramount chiefdoms (Rountree
1993). These were core chiefdoms that were collecting tribute from a number of
smaller district chiefdoms. Onancock was part of an interchiefdom system of allying
and war-making polities. The boundaries of that network included some indirect
links, just as the trade network boundaries did. Thus the political-military network
(PMN) of which Onancock was the focal place extended to the Delaware Bay in the
north and into what is now the state of North Carolina to the south.  Information, like
a prestige good, is light relative to its value. Information may travel far along trade
routes and beyond the range of goods. Thus information networks (INs) are usually
as large, or even larger, than Prestige Goods nets (PGNs).

A general picture of the spatial relationships between different kinds of

interaction networks is presented in Figure 4. The actual spatial scale of important
interaction needs to be determined for each world-system we study, but Figure 4
shows what is generally the case – that BGNs (bulk goods nets) are smaller than
PMNs (political-military nets), and these are in turn smaller than PGNs (prestige
goods nets) and INs (information nets).

Activities

1. In matrix form, list work undertakings done by the modern communication

system and the early communication system. You may do other aspects of
undertakings done on the two way systems: modern and early times.
Lesson IV

INFORMATIONALISM

Globalism is tied to the notion of networks. Networks constitute the fundamental

pattern of life, of all kinds of life. It was previously mentioned that in the present and
even in the past, the world is connected. The difference between globalism and
globalization is the speed and thickness or intensity of connections. Nevertheless,
people are connected with one another whether as a small community or as a large
country.

Lesson I

At the end of the lesson, the students will be able to:

1. Compare and contrast globalism and informationalism.

2. Relate the barriers to collective learning in the age of information
3. Determine the importance of information technology to the present world

NETWORKS, SOCIETY, AND COMMUNICATION TECHNOLOGY

A network society is a society whose social structure is made of networks powered

by microelectronics-based information and communication technologies. By social
structure I understand the organizational arrangements of humans in relationships of
production, consumption, reproduction, experience, and power expressed in
meaningful communication coded by culture. A network is a set of interconnected
nodes. A node is the point where the curve intersects itself. A network has no center,
just nodes. Nodes may be of varying relevance for the network. Nodes increase their
importance for the network by absorbing more relevant information, and processing it
more efficiently. The relative importance of a node does not stem from its specific
features but from its ability to contribute to the network´s goals. However, all nodes
of a network are necessary for the network´s performance. When nodes become
redundant or useless, networks tend to reconfigurate themselves, deleting some
nodes, and adding new ones. Nodes only exist and function as components of
networks. The network is the unit, not the node. “Communication networks are the
patterns of contact that are created by flows of messages among communicators
through time and space” (Monge and Contractor, 2003: 39 ) So, networks process
flows. Flows are streams of information between nodes circulating through the
channels of connection between nodes. A network is defined by the program that
assigns the network its goals and its rules of performance. This program is made of
codes that include valuation of performance and criteria for success or failure. To
alter the outcomes of the network a new program (a set of compatible codes) will
have to be installed in the network – from outside the network. Networks cooperate
or compete with each other. Cooperation is based on the ability to communicate
between networks. This ability depends on the existence of codes of translation and
inter-operability between the networks (protocols of communication), and on access
to connection points (switches). Competition depends on the ability to outperform
other networks by superior efficiency in performance or in cooperation capacity.
Competition may also take a destructive form by disrupting the switchers of
competing networks and/or interfering with their communication protocols. Networks
work on a binary logic: inclusion/exclusion.
Within the network, distance between nodes tends to zero, as networks follow the
logic of small worlds´ properties: they are able to connect to the entire network and
communicated networks from any node in the network, on the condition of sharing
protocols of communication. Between nodes in the network and outside the network,
distance is infinite, since there is no access unless the program of the network is
changed. Thus, networks are self-reconfigurable, complex structures of
communication that ensure at the same time the unity of the purpose and the
flexibility of its execution, by the capacity to adapt to the operating environment.
Networks, however, are not specific to 21st century societies or, for that matter, to
human organization. Networks constitute the fundamental pattern of life, of all kinds
of life. As Fritjof Capra writes “the network is a pattern that is common to all life.
Wherever we see life, we see networks” (2002: 9). In social life, social networks
analysts have investigated, for a long time, the dynamic of social networks at the
heart of social interaction and the production of meaning, leading to the formulation
of a systematic theory of communication networks (Monge and Constructor, 2003).
Furthermore, in terms of social structure, archeologists and historians of antiquity
have forcefully reminded us that the historical record shows the pervasiveness and
relevance of networks as the backbone of societies, thousands of years ago, in the
most advanced ancient civilizations in several regions of the planet. Indeed, if we
transfer the notion of globalization into the geography of the the ancient world, as
determined by available transportation technologies, there was globalization of a sort
in antiquity, as societies depended for their livelihood, resources, and power, on the
connectivity of their main activities to networks transcending the limits of their locality
(La Bianca, ed. 2004).

Informationalism is completely distinct from industrialism, since it is oriented towards

increasing levels of technological development, unlimited storage, production and
accumulation of knowledge, and consistently higher levels of processing complexity.
(Kozinets, Hemetsberger, and Jensen Schau, 54) In this paradigm, rules of creation
and destruction are constantly and deliberately changed, based on interactions and
adaptability. This has a powerful impact on notions of identity which become more
abstract and lead to a new mode of collective life, or the Informational City.(Murphie
and Potts, 192-193) Identity and culture are impacted greatly in this state of
informational and societal flux, where the structure of the Network Society is
reinforced through Information Capitalism, Globalism and policies of exclusion.

Culture of Real Virtuality

Castells refers to existence in Informationalism as the Culture of Real Virtuality, in

which there is no separation between reality and symbolic representation. In
Gerstener’s interview, Castell elaborates on this concept by pointing out that many of
our ideas and beliefs now depend on images and sounds processed in hypertext.
(Gerstner, 15) Even though the information is virtual, it becomes a substantial part of
reality as we interact with that knowledge in thought, social expression and
connection. Real Virtuality is a state of existence and culture based on energy flows
and timeless time, reinforced by the global economy, social structures, new forms of
life and the diffusion of urban spaces.

Since information and communication are the most fundamental dimension of human
activity and organization, this will affect the entire realm of human activity, culture,
identity and society.

Activities

Explain the following questions thoroughly. Please follow the usual strategy in
sending these activities.

1. Is informationalism caused by industrialization?

2. How do information and communication affect the entire realm of human
activity?
3. Discuss the advantages and disadvantages of information technology?

Lesson V
Information Capitalism and the New Class System
The notion of class needs to be expanded to include everybody who creates and
recreates spaces of common experience, such as user-generated content on the
Internet, through their practices. These spaces and experiences are appropriated
and thereby expropriated and exploited by capital to accumulate capital. The rise of
informational capitalism requires us to rethink the notion of class and to relate the
class concept to knowledge labor.

Objectives

1. Explain in detail the background of information capitalism and the new class
system
2. Value the importance of information system related to its origin and use

In its search for value, the network society excludes everything and everyone not of
value. In what Sennett refers to as the hyper-responsive form of contemporary
capitalism, survival depends on adaptability to market criteria; those who do not
adapt become obsolete or excluded. Society, according to Castells, has become
characterized by the power embedded in information technology, and is built around
microelectronics-based information and biological technologies. Informationalism is
applied to everything, and even life forms can be decoded into bits of information,
such as decoding the human genome.

Information Capitalism defines a new class system based on the level of use and
interaction with information. The networked include those who are self-programmed
labour, or those who are able to expand and maintain the network and the generic
labourers.  This structural exclusion is referred to by Castells as The Fourth World,
and is based upon the idea that ostracism is the penalty of a belated response to
informational change. Thereby, a large proportion of the world’s population is
simultaneously marginalized, irrelevant and switched off and will inhabit territories of
exclusion such as ghettoes and slums.

While Informationalism can be seen to increase flexibility for employment and new
opportunities for combinations of work and private lives, the excluded have no voice
and no value. Habermas’ vision of the public sphere as a place of interaction for the
implementation of change is overshadowed by a vision of a black hole of Information
Capitalism, where those who are networked survive through continuous adaptation
to the forces of Informationalism and those who are excluded become obsolete and
switched off.

In sum, the notion of the information or knowledge society is simply a technological

extrapolation of the industrial society, usually assimilated, to the Western culture of
modernization. The concept of the network society shifts the emphasis to
organizational transformation, and to the emergence of a globally interdependent
social structure, with its processes of domination and counter domination. It also
helps to define the terms of the fundamental dilemma of our world: the dominance of
the programs of a global network of power without social control or, instead, the
emergence of a network of interacting cultures, unified by the common belief in the
use value of sharing.

Activities

1. What does it mean to live in an information society?

2. Explain the characteristics of information society.
3. In what way information technology affects the economy of one nation?

Assignment

Instructions: Forward said assignment below through email or in hard copy. As

usual, follow directions previously given when passing through hard copy.
 1. Do and pass a paper which deals with information pollution, information
ecology, and information hygiene

Lesson VI

CITIZENSHIP IN A GLOBALIZED WORLD

Citizenship is a multidimensional concept that means membership in a specific

nation-state and the formal rights and obligations that this membership entails.
Citizenship can also be understood as a status and an identity. The principle premise
of citizenship is that nation-states can set and control the parameters of
membership.

Objectives

1. Build their own comprehension about global citizenship and of world events.
2. Get involved in their local, national and global communities.
3. Perform activities posed for their further study of this lesson

The words citizenship and nationality are often used interchangeably (i.e., dual
nationality, dual citizenship). However, nationality is often used to signify
membership in a community on the basis of common cultural characteristics
while citizenship refers to membership conferred by a state. Citizens of a nation-
state may include those who see themselves as part of a single nation based on a
common culture or ethnicity, but more often include some groups who are seen as
outside of national culture and incapable of belonging.

Since the 1970s, increased flows of goods, services, money, ideas, and people
across national borders have led to economic integration and interdependence
among nation-states. This shift from an autonomous nation-state to a world of
blurred boundaries has helped change the traditional notion of citizenship.

While the vast majority of people still have membership in a single nation-state, the
number of people who hold membership in more than one nation-state is growing.
As a result, citizenship has become contested both in Europe and North America.

Historical Background

The concept of citizenship dates back to the Roman Republic. Then, as a result of
the emergence of the modern state during the Renaissance, citizenship grew from a
local into a statewide institution.

In the 20th century, the expansion of citizenship occurred through the elaboration of
rights accorded to citizens, including not only political rights, but civil and social
rights. The expansion of social rights has been associated with the growth of the
welfare state and was the basis for incorporating new groups into the state.

Formal Citizenship
Citizenship laws and naturalization policies are the means through which nation-
states determine who remains inside and outside the circle of formal, legal
membership. Formal, legal members are almost always entitled to social, economic,
and political rights; these rights are balanced by certain duties or obligations to the
state.

The attribution of citizenship refers to the nation-state's basis for allocating

citizenship. The acquisition of citizenship (also known as naturalization) refers to the
process through which a person who does not have membership can become a
formal, legal member of the nation-state. Acquiring citizenship is structured by
naturalization policies and procedures that vary by country.

Attribution and acquisition of citizenship are structured on two principles: jus soli (the

conferral of citizenship to persons born in the state's territory, or soil) and jus
sanguinis (the conferral of citizenship to persons with a citizen parent or parents, or
blood). Most nation-states base their citizenship laws on a combination of jus
soli and jus sanguinis.
Countries of immigrants such as the United States, Canada, Australia, and most
Latin American countries attribute citizenship unconditionally to all persons born in
their territory (jus soli) as well as to the children of their citizens who are born abroad
(jus sanguinis).
Citizenship and naturalization policies based mainly on jus sanguinis are restricted to
ethnics and their descendants. Most European countries emphasize jus
sanguinis principles, which has made citizenship more difficult to acquire.

However, many observers agree that citizenship laws and naturalization policies in
Europe have become more inclusive, meaning that access to citizenship has been
opened to long-term residents and their children who were previously excluded from
citizenship. For example, in 1999, Germany liberalized its conservative jus
sanguinis laws with a more liberal jus soli policy.
No European country grants unconditional birthright citizenship to the children of
immigrants. The children of immigrants (second generation) in many European
countries also must acquire citizenship; access to citizenship occurs only after
fulfilling certain residency or age requirements. For example, second-generation
children born in France of two non-French parents cannot become French citizens
until they turn 18, provided they have resided in France for at least five years.

Although the trend toward liberalizing citizenship and naturalization policies has
received much attention, it is characteristic of countries with formerly restrictive
naturalization policies. As political scientist Patrick Weil points out, some countries
whose nationality laws were predicated upon jus soli and that have attracted large
numbers of immigrants — such as the UK and Ireland — have adopted more
restrictive citizenship policies.

For example, the UK allowed the people living in its former colonies to have British
Commonwealth Citizenship, which gave them the right to settle in the UK without first
acquiring work or residence permits. With the British Nationality Act of 1981, the
country abolished this status and created a multitiered citizenship system. In 2004,
Ireland's citizens passed a referendum that eliminates an Irish-born child's automatic
right to citizenship when both parents are not Irish nationals.

Worldwide, the number of stateless persons is rising. The United Nations defines a
stateless person as someone who is not considered a national by any state. The
rigid practice of jus sanguinis policies can result in statelessness. In other cases, a
child with a non-national father born in their mother's country of nationality may be
denied that nationality as a result of gender restrictions on the transmission of
nationality.
Statelessness also occurs when long-residing ethnic populations have been denied
citizenship or have been stripped of citizenship as a result of their racial or ethnic
origins.

Temporary Admissions and Pathways to Citizenship

Although someone may enter a country on a nonimmigrant visa, the person may be
able to become a permanent resident and even a citizen by fulfilling requirements.
For example, Australia permits foreign students who graduate from Australian
universities to apply for the skilled migration program; through that program, they can
become permanent residents and eventually citizens.

A person who marries a citizen of a different country can usually obtain citizenship of
the spouse's country by meeting requirements regarding length of marriage and
residency.

It is important to emphasize that numerous temporary admission policies do not

permit the eventual acquisition of citizenship. Many people migrate under
intergovernmental agreements or visas that formally dictate that they must leave the
host country after a specified time. Guest workers and contract laborers — an
important source of labor in the Middle East and in some Asian countries — are
often legally prohibited from settling, forming families, or becoming citizens.

Although the United States has a relatively small numbers of temporary workers,
recent proposals by members of Congress indicate that the country may create a
new temporary-worker status aimed at reducing the number of unauthorized
migrants. However, not all proposals would allow such workers to eventually become
US citizens.

The Growth of Multiple Citizenship

Today, holding citizenship in more than one country has become more common.
People may have dual citizenship by operation of different laws rather than by
choice. For example, a child born in a foreign country to US citizen parents may be
both a US citizen and a citizen of the country of birth.

Historically, most countries tried to discourage dual citizenship by requiring

newcomers to renounce their country of origin citizenship in order to naturalize, and
origin countries took away citizenship if emigrants became naturalized citizens of
other states. However, such policies were not always enforced.
The increase in mobility, the ability of children to acquire the citizenship of not only
their father but their mother, the development of new norms and human rights
standards, and changing policies have contributed to the growth of dual and
sometimes multiple citizenship.

"Immigrant dual citizenship" permits immigrants to maintain their origin citizenship

while becoming a citizen of the settlement country. An increasing number of migrant-
sending states — Colombia, the Dominican Republic, Ecuador, Italy, Mexico, and
Turkey — have changed their policies to allow dual citizenship. These policies are
beneficial to sending states, especially in light of the growing importance of
remittances and investment from nationals living abroad.

Long-standing jus sanguinis policies allow ethnic descendents of countries such as

Germany, Greece, Ireland, Italy, the Netherlands, Portugal, Spain, and the United
Kingdom to either maintain or claim the citizenship of their parents and
grandparents. These policies facilitated the claim to European citizenship by
thousands of descendents of Italians, Spanish, Poles, and others who migrated to
Latin America in the early 20th century.
In response to deteriorating economic conditions at home, Argentines in particular
have used ethnic claims to Italian and Spanish citizenship to legally migrate to the
European Union (EU) in search of better economic opportunities. As EU citizens,
they are able to reside and work anywhere in the EU, not only the country for which
they have citizenship.

There is little reliable data on the numbers of dual or plural nationals around the
world. According to some reports, about half of all countries allow dual citizenship. Of
15 EU countries studied by political scientist Marc Howard, 10 allow immigrants who
naturalize to hold dual citizenship.

Australia, Canada, and the United States do not require new citizens to officially
renounce their citizenship of origin, but a US citizen who acquires a foreign
citizenship by applying for it could lose US citizenship, which would not happen to an
Australian or Canadian citizen in the same situation.

Although many countries have liberalized policies related to dual citizenship, since
the September 11 terrorist attacks, some have questioned this policy, especially in
cases where a dual citizen has been involved in suspect activity.

In some countries, Germany in particular, dual citizenship has been subject to a

great deal of political debate because some see it as weakening citizenship and/or
loyalty to Germany. Others argue that immigrant dual citizenship facilitates
integration in the receiving community by encouraging immigrants to naturalize.

The Growth of Quasi-Citizenship

Immigrants today are more likely be members of two states, either as citizens of one
and settled migrants (also known as quasi-citizens or denizens) of another, or as
citizens of both. The rights of quasi-citizens can include long-term or permanent
security of residence status; protection from deportation (except in exceptional
circumstances); the right to work and seek employment; voting in local elections; and
entitlements to some social benefits. In the United States, legal permanent residents,
or green card holders, are quasi-citizens who can live and work permanently
anywhere in the country; they can become naturalized citizens once they are eligible.

In Europe, the growth of quasi-citizenship is linked partly to restrictive naturalization

policies and the growing importance of international human rights standards to which
many European countries are signatories (for more on rights and migration,
click here).
Internationally protected civil, political, economic, and social rights may not lessen
the importance of national citizenship rights, but they do serve as an alternative
source of some rights and decouple rights from the national context. However, many
states do not adhere to them, and individuals face constraints in successfully
claiming these rights.

Supranational Citizenship

Supranational rights have developed over the past half century in Europe and
characterize EU citizenship. British Commonwealth Citizenship is an example of a
supranational membership or citizenship system that predates modern regional and
political associations such as the EU.

EU citizenship embodies the idea of a common citizenship across all EU Member

States and could eventually serve as the basis for a European identity. EU
citizenship transforms the notion and practices associated with state sovereignty, a
key principle underlying citizenship. Freedom of movement, the most widely known
right of EU citizenship, restrains the ability of states to exclude foreigners, thereby
weakening national sovereignty.

Although some have hailed EU citizenship as a new, post-national form of

membership, it remains subordinate to national citizenship. It is linked to the
citizenship of a Member State, and Member States still control who can receive their
citizenship.

Naturalization Rates, Practices, and Policies

Naturalization often depends on a period of legal (and sometimes continuous)

residence, proficiency in the national language, and knowledge of the country's
history and/or culture. Many countries demand that candidates for naturalization be
"of good character," meaning they cannot have been convicted of a crime. Because
of such requirements, not all immigrants who apply for naturalization are successful.
Some countries, including the United States, require citizenship applicants to make a
formal oath of allegiance at a public ceremony.

Naturalization rates among the world's major receiving countries vary greatly. The
following are the number of naturalizations per thousand foreign residents in 1995
and should be interpreted with caution because not all foreign residents are eligible
to naturalize. Sociologists Stephen Castles and Alastair Davidson found that rates
were still very low in Germany (5), likewise in Switzerland (12). The rates for France
(17), Belgium (29), and the UK (19) were higher, and Sweden (60) and the
Netherlands (98) had the highest rates. The rate for Australia was 74.

Rates for the US and Canada could not be calculated due to lack of data on the total
number of foreign residents. However, the large numbers naturalizing (over a quarter
of a million in Canada and nearly a half a million in the United States in 1995)
suggested high rates in these countries, too. Moreover, the number of persons
naturalizing in the US jumped sharply in the mid 1990s with over one million
naturalizing in 1996.

Western European scholarship on formal citizenship has focused on the legal

structures of citizenship and the rights accorded to citizens versus non-citizens, while
US research tends to focus on naturalization rates. Much of the US literature
attempts to explain differences in rates based on, for example, country of origin, age
at arrival, time in the United States, class of admission, and various demographic
characteristics. Comparable studies are starting to be seen in Europe as the number
of naturalizations has increased.

Although naturalization in jus solis countries such as Canada, the United States, and
Australia is relatively easy compared to the naturalization requirements of some
European countries, naturalization has rarely been a straightforward decision for
immigrants, even in countries where citizenship is relatively easy to acquire.
Becoming a citizen is generally less important to an immigrant or potential immigrant
than gaining initial admission and permission to work.
In the US case, immigrants historically have varied widely in their willingness to
become citizens, and naturalization rates remained low for many groups throughout
the 20th century for reasons that are complex and not always well understood.

In traditional immigrant-receiving countries, the ideology of naturalization has been

strongly assimilationist. The reality is that immigrants often approach naturalization
with some concerns or with practical interests in mind that run counter to traditional
membership norms. These include the notion that immigrants should be members of
a single state, rather than multiple states; that membership should be earned
through assimilation, rather than acquired as a right; and that citizenship requires
sacrifice on the part of its holders, rather than involving calculations of personal
advantage.

Laws that restrict benefits to legal permanent residents can encourage eligible
immigrants to naturalize. In response to such legislation in the United States in the
mid 1990s, some states established centers to help eligible immigrants naturalize;
the state's desire to preserve residents' federal benefits therefore also played a role.
This example underscores the importance of naturalization and citizenship policies
and how they are administered on the ground level.

The Broadening of Citizenship in a Globalized World

With the rise of globalization, the concept of citizenship as a form of membership and
identity in one nation-state has changed. The increase in the number of countries
allowing dual citizenship and noncitizen rights has made the acquisition of citizenship
less pressing.
In addition, migrants' transnational behavior has made national citizenship less
relevant. As legal scholar Linda Bosniak has written, national affiliations do matter,
but they are not necessarily paramount in many people's experiences.

On the other hand, the rise of nativism, in part the result of globalization and
concerns about the risks of immigration linked to terrorism, has reinvigorated
debates about national membership and loyalty to one state. What these trends
mean, both for states and for immigrants, is the subject of present and future
research.

Summary
From the perspective of world-systems analysis, the inter-state structure of the
modern world-system (conventionally the principal subject matter for students of
international relations) is merely one institutional structure or plane of analysis
among a number that altogether make up the integrated framework of the modern
world-system. This world system, like all world-systems, is an historical system
governed by a singular logic and set of rules within and through which persons and
groups struggle with each other in pursuit of their interests and in accord with their
values. Pertinent analysis of geopolitics, in this perspective, can only be done within
the context of the functioning of the modern world system as a whole and in the light
of its particular historical trajectory.
The structure and historical development of the modern world-system as a whole,
and then describe the functioning of the inter-state system in particular, ending with
an analysis of the present and future trajectory of the modern world-system in
general and its inter-state system in particular.
The modern world-system is not the only world-system that has existed. There were
many others. It is, however, the first one that was organized and able to consolidate
itself as a capitalist world-economy. Although initially formed primarily in (part of)
Europe, its inner logic propelled it to seek the expansion of its outer boundaries.
Over some four centuries, it proved durable and strong enough to be capable
repeatedly of incorporating new areas and peoples within its division of labor until, by
the late nineteenth century, its organisation or integrated labor processes effectively
covered the entire globe, the first world-system in history to achieve this.

Activities:

1. What do you value on the community or the world around you?

2. Have you experienced being discriminated in a particular situation?
3. If you were to choose a music to listen at, what is this music? State your
reasons why you chose this music.
4. What experience or experiences do you already have in terms of being a
volunteer? Explain this thoroughly.
References:

Dunn, C. C., Inoue, H., Neal, T. & Heimlich, E. 2018. The Development of World
Systems.

https://www.migrationpolicy.org/article/citizenship-globalized-world. Retrieved July 8,

2020

Aldama, K. R. 2018. The Contemporary World. Rex Book Store, Manila. Philippines

Rebuyon, M. R. 2019. The Contemporary World. Trinity Publishing Company.

Philippines

https://cfmslibrary.librarika.com/search/detail/2837189. Retrieved July 8, 2020

https://velocityglobal.com/ on Benefits and Challenges of Globalization. Date

retrieved, July 30, 2020

Agbanto, A. 2019 in https://www.weforum.org/agenda/2018/01/global-migration-can-

be-a-success/