SOC101 (The Contemporary World)
multidimensional
The Structures of
Globalization
 Four Structures of
Globalization
1) The Global Economy
focuses on the process of making
the world economy an integral
element of a whole. Also, it
elaborates on the important
players of economic globalization.
2) Market Integration covers
the position of international
financial institutions in global
market integration.
3) The Global Interstate
System, tackles the
consequences of globalization on
governments and institutions that
govern nation-state relations.
4) Contemporary Global
Governance presents the
United Nations’ role, function, and
the challenges of global
governance.
 What is Globalization?
 Globalization is the process
of interaction and
integration among the
people, companies, and
governments of different
nations, a process driven by
international trade and
investment and aided by
information technology.
 Globalization is a
phenomenon, creating
economic, political, cultural,
and even technological
forms of connectivity. This
section focuses on the
economic dimension.
The Global Economy
 Economic globalization refers
to the expanding
interdependence of world
economies.
 Global economy or World
economy refers to the
international exchange of
goods and services through the
use of monetary units of
money
 Global economy refers to
world economy. It may also
mean as the free movement of
goods, capital, services,
technology and information.
 Global economy or economic
globalization is concerned on
the globalization of production,
finance, markets, technology,
organizational regimes,
institutions, corporations, and
labor.
 In the Philippines, cross-
border trading can be best
illustrated by the country’s
trading partnerships with
China, the United States,
and Australia. Moreover,
 the flow of international
capital can be observed in
foreign direct investments
(FDD), a type of investment
in which a company
establishes a business in
another country for
production of goods or
services and still takes part
in the management of that
business.
 A good example of this is
Toyota Motor Philippines
Corporation which is a
subsidiary of Toyota Motor
Corporation based in
Toyota, Japan. This flow of
international capital can
also be observed in foreign
portfolio investments, trade
flows, external assistance
and external commercial
borrowings, and private
loan flows.
 In 2008, the International
Monetary Fund (IMF) defined
economic globalization as a
historical process, the result of
human innovation and
technological progress. “It
refers to the increasing
integration of economies
around the world, particularly
through the movement of
goods, services, and capital
across borders” (IMF, 2008).
 Economic globalization can be
traced from the time when
there was economic movement
in Asia, Africa, and Europe
through the Silk Road, a
network of trade routes that
connected the Fast, particularly
China, and the West.
 Historically, these routes also
led to the discovery of the
Philippine islands when
Portuguese and Spanish
envoys were In search of spices,
which then spawned
colonization.
 In the contemporary period,
foreign expatriates come to the
country to manage their
company’s foreign subsidiaries.
 Likewise, the Philippines sends
thousands of skilled workers to
the Middle East as construction
workers, seafarers, and nurses.
 Four Interconnected
Dimensions of Economy
Bencrzes (2014) identifies four
interconnected dimensions of
economy, namely:
(1) globalization of trade of goods
and services;
(2) globalization of financial and
capital markets;
(3) globalization of technology and
communication; and
(4) globalization of production.
Economic  The third dimension
emphasizes various
Interconnectedness
transactions and Inter-activities
 The first dimension of
that transpire instantly due to
economic interconnectedness
the internet and
is demonstrated in the
communication technology.
establishment of the World
 Moreover, the fourth
Trade Organization (WTO) that
dimension is best illustrated by
eases trade among countries.
the existence of multinational
 WTO, established in 1995,
corporations (MNCs) and
“ensures that trade flows as
transnational corporations
smoothly, predictably, and
(TNCs).
freely as possible” (WTO, 2012).
 An MNC is a big company
 Another indicator is the
that does business in
emergence of China as a major
several countries, but it still
supplier and exporter of
follows a central plan from
manufactured goods that has
its home country. It's like a
affected the world economy.
big tree with many
China-made products or parts
branches, and the roots are
are sent to the United States.
in one place.
 To meet this demand, China
 Example: McDonald's is
creates more jobs for its
a multinational
citizens. Another good example
corporation because it
of economic globalization of
has restaurants in many
trade and services is the
countries, but its
increasing number of business
headquarters and main
process outsourcing (BPO)
decisions are in the
companies in the Philippines.
United States.
 The second dimension is
 A TNC is also a big company
evident in the liberalization of
that operates in many
financial and capital markets.
countries, but it doesn't
This is seen in cross-listing of
have a strong connection to
shares on one or more foreign
any particular home
stock exchange, cross-hedging
country. It's like a company
and diversification of portfolio,
with offices all over the
and round-the-clock trading
world, and they work
worldwide (National Research
together like one big team
Council, 1995).
without a single central
location.
  Example: Nestlé is often
considered a
transnational
corporation because it
has operations and
decision-making
processes distributed
globally, without being
strongly tied to a
specific home country.
Some examples of multinational
and transnational corporations
that operate in the Philippines:
Multinational Corporations
(MNCs):
Procter & Gamble (P&G):
P&G is a multinational consumer
goods company with a presence in
the Philippines, manufacturing and
selling products like Tide, Pampers,
and Pantene.
Coca-Cola: The Coca-Cola
Company is a well-known
multinational beverage company
that manufactures and sells Coca
Cola products in the Philippines.
Transnational Corporations (TNCs):
International Business
Machines (IBM) is a technology
company that operates globally,
providing IT services and solutions.
It has a presence in the Philippines
with offices and operations.
The Hongkong and Shanghai
Banking Corporation (HSBC) is a
global financial services
organization with branches and
services in the Philippines, offering
banking and financial solutions.
Accenture: Accenture is a
transnational consulting and
professional services firm that
operates in the Philippines,
providing a wide range of business
and technology services to clients
worldwide.
Effect of Globalization
on Labor Conditions
 Increase job opportunities
 Upgrade education system
and leads to more training
 Increase labor standard
 Increase labor productivity
 Pressure firms to correct
labor abuses
 Globalization of Corporation
refers to a company or group of
people authorized to act as a
single entity and recognized as
such law that operates globally
or internationally.
 Global corporation refers to a
company or corporation that
operates in more than one
country which has significant
investments and facilities in
multiple countries but lack
dominant headquarters.
 Global business (as mentioned
by Michael Porter) refers to
business that maintains a
strong headquarters in one
 country, but has investments in
multiple foreign location.
 International company is one
that has headquarters likewise
it does business overseas and
might have a large presence in
multiple areas.
 The establishment of an
international monetary system
(IMS) is one of the actors that
facilitate economic
globalization.
 IMs refers to internationally
agreed rules, conventions, and
institutions for facilitating
international trade,
investments, and flow of
capital among nation-states.
 Historically, there are three
global IMS—the gold standard,
the Bretton Woods System,
and the European Monetary
System (EMS).
 In conclusion, economic
globalization affects all nations
and citizens through the
increasing integration of
economies around the
borderless world. Its important
players are the nation-states,
global corporations, and the
international monetary
systems. Though some people
believe that economic
globalization brings unity of all
economic movements, others
believe that globalization
furthers the separation among
nation-states wound the world.
MARKET INTEGRATION
 Market integration delves into
the role of international
financial institutions, such as
the International Monetary
Fund (IMF) and the World
Bank, in the process of global
market integration. These
institutions play a significant
role in shaping economic
policies, providing financial
support, and influencing the
economic stability of countries
on a global scale.
The Global Interstate
System
STATE
 Body of people politically
organized under a government
within a definite territory.
 A nation or territory considered
as an organized political
community under one
government.
NATION
 The concept of nation
emphasizes the organic ties
that hold groups of people
together ang inspire a sense of
loyalty and belonging—i.e.,
ethnicity, language, religion,
and others (Schattle, 2014).
 Combining these two, a nation
state can then be defined as a
political community that
emanates from civic society to
legitimately execute peace.
 Thus, the civic society is the
basis of the people's oneness.
 Aside from United Nations (UN),
there are some of the key
international institutions
governing various aspects of
international relations,
including peace and security,
health, education, economics,
and regional cooperation in the
world.
Institutions Governing
International Relations
 United Nations (UN)
 Established: Founded on
October 24, 1945.
 Members: 194 member
states.
 Functions: The UN serves as
a forum for international
cooperation, diplomacy,
and problem-solving. Its
functions include
maintaining international
peace and security,
promoting economic and
social development,
upholding human rights,
and providing humanitarian
assistance.
 World Health Organization
(WHO)
 Established: Founded on
April 7, 1948, as a
specialized agency of the
United Nations.
 Members: 194 member
states
 Functions: WHO is
responsible for global
public health. It sets
international health
standards, conducts
research, monitors health
trends, provides technical
assistance to countries, and
responds to health
emergencies, including
pandemics.
 United Nations Educational,
Scientific and Cultural
Organization (UNESCO)
 Established: Founded on
November 16, 1945, as a
specialized agency of the
United Nations.
 Members: 193 member
states
 Functions: UNESCO
promotes international
collaboration in education,
science, culture, and
communication. Its
activities include protecting
cultural heritage, advancing
education, supporting
media freedom, and
fostering cross-cultural
understanding.
 United Nations Children's Fund
(UNICEF)
 Established: Founded on
December 11, 1946, as a
subsidiary of the United
Nations.
 Members: 194 member
states.
 Functions: UNICEF works to
improve the well-being of
children worldwide. It
provides humanitarian aid,
supports access to
education, healthcare, and
nutrition, advocates for
children's rights, and
responds to emergencies
affecting children.
 International Monetary Fund
(IMF)
 Established: Founded on
July 22, 1944, with
operations commencing in
1947.
 Members: 190 member
countries
 Functions: The IMF
promotes international
monetary cooperation and
exchange rate stability. It
provides financial
assistance to member
countries facing balance of
payments problems and
offers policy advice on
economic and financial
matters.
 World Trade Organization
(WTO)
 Established: Officially
established on January 1,
1995, succeeding the
General Agreement on
Tariffs and Trade (GATT).
 Members: 164 member
countries.
 Functions: The WTO
administers global trade
rules, facilitates
negotiations on trade
agreements, and provides a
forum for dispute
resolution in international
trade disputes. It aims to
promote free and fair trade
among its members.
 Association of Southeast Asian
Nations (ASEAN)
 Established: Founded on
August 8, 1967.
 Members: ASEAN consists
of 10 member states:
Brunei, Cambodia,
Indonesia, Laos, Malaysia,
Myanmar, the Philippines,
Singapore, Thailand, and
Vietnam.
 Functions: ASEAN promotes
regional stability, economic
cooperation, and
integration among
Southeast Asian nations. Its
functions include political
and security cooperation,
 economic development,
and cultural exchange.
 Group of Eight (G8)
 Established: Informally
founded in the 1970s, with
meetings beginning in the
1990s. Note that it became
the Group of Seven (G7) in
2014 when Russia was
suspended.
 Members: The G8 originally
included Canada, France,
Germany, Italy, Japan,
Russia, the United Kingdom,
and the United States.
 Functions: The G8 (now G7)
is an informal forum of
major industrialized
democracies. It discusses
global economic issues,
security, and international
relations.
 North Atlantic Treaty
Organization (NATO)
 Established: Founded on
April 4, 1949.
 Members: NATO has 30
member countries
 Functions: NATO is a
military alliance focused on
collective defense and
security. It aims to ensure
the security and stability of
its member states through
mutual defense and
cooperation.
 World Bank Group
 Established: The World
Bank was established in
1944, and the World Bank
Group as a whole consists
of five institutions,
including the International
Bank for Reconstruction
and Development (IBRD)
and the International
Development Association
(IDA).
 Members: The World Bank
has 189 member countries
(as of my last knowledge
update).
 Functions: The World Bank
Group provides financial
and technical assistance to
developing countries for
infrastructure development,
poverty reduction, and
economic development.
 African Union (AU)
 Established: Founded on
July 26, 2001, as a
successor to the
Organization of African
Unity (OAU).
 Members: The African
Union has 55 member
states (as of my last
knowledge update).
 Functions: The AU
promotes political and
economic integration in
Africa, peace and security,
and sustainable
 development on the
continent. It also works to
address regional conflicts
and crises.
 Organization of American
States (OAS)
 Established: Founded on
April 30, 1948.
 Members: The OAS has 35
member countries in the
Americas (as of my last
knowledge update).
 Functions: The OAS
promotes democracy,
human rights, and regional
security in the Americas. It
also provides a forum for
diplomatic dialogue and
conflict resolution.
CONCLUSION
4 Overall, the global interstate
system is a facet of contemporary
political globalization that seeks to
form collaboration among nation-
states through the establishment
of intergovernmental organizations.
It is rooted on the idea of
internationalism.
World Governance
 Movement towards political
cooperation among
transnational actors, aimed at
negotiating responses to
problems that affect more than
one state or region.
 These have limited or
demarcated power to
enforce compliance.
 Institution of Global
Governance
 United Nations
 International Criminal
Court
 World Bank
Global Governance
 It describe global governance
as the totality of norms, laws,
policies, and bodies that define,
comprise, and facilitate
transnational relations
between citizens, states,
cultures, and
intergovernmental, and non
governmental organizations.
Rules and norms put
everything in order. Though
global governance is rule-based,
it has no central authority,
However, there are systems for
international relationships that
bind the states, people, and
society together.
 Since the United Nations (UN)
has the most number of
members among the
established global systems, this
section discusses its organs,
roles, and functions.
 UN is composed of six
organs.
 The General Assembly is
the central deliberative and
 the only organ where all
member-states have equal
representation in
discussion and
consideration, and policy
making.
 The Security Council is the
organ which has the
commitment to preserve
peace and security.
 The Economic and Social
Council is the main organ
for cooperation, policy
review, policy dialogue, and
advice on social, economic,
and environmental issues.
 The Trusteeship Council is
the organ tasked to
administer international
oversight for 11 trust
territories and to make sure
that adequate procedures
are taken for independence
and self-government.
 The International Court of
Justice is UN’s prime
judicial organ.
 The Secretariat is the organ
tasked to execute the daily
activities as assigned by the
five other organs.
Functions of United
Nations
 The main function of UN is to
maintain peace and security for
all of its member-states.
 The UN does not have its own
military but it has
peacekeeping force which are
supplied by the member states.
 The UN aims to protect human
rights and provide
humanitarian assistance when
needed.
 The UN plays an Integral part in
social and economic
development through its UN
Development Program.
 The UN likewise annually
publishes the Human
Development Index to rank
countries in terms of poverty,
literacy, education, and life
expectancy.
 UN General Assembly –
occupies the central position as
the chief deliberative,
policymaking, and
representative organs of the
United Nations.
Challenges of Global
Government in the 21st
Century
 Climate Change, Poverty,
Violent Conflict, Intolerance,
and Extremism present direct
threats to the unity and well-
being of the International or
Global Community
 Attacks on cultural rights and
cultural heritage, particularly in
Syria, Iraq, and Mali threaten
the Inter-Cultural Tolerance.
3 Points to Address the
Challenges of Global
Government in the 21st
Century (Irina Bokova,
Director General of
UNESCO, 2016)
 First, openness of mind and
out-of-box thinking is crucial.
New ideas must be
transformed into norms
(Efforts to teach people about
the history of the Holocaust/
program promoting internet
literacy/ help to instill common
values to the youth/ create
environments that are
conducive to respectful
dialogue)
 Second, the international
community must build resilient
societies (Fighting exclusion
and fostering inclusion/
Participation of women in all
sectors)
 Third, new thinking about
peace building. (The world
urgently needs legitimate and
effective peace efforts, before,
during, and after conflicts.
Preventive measures are key
and must involve the soft
power embodied by UNESCO’s
educational and inter-cultural
program)
Globalization vs
Internationalization
GLOBALIZATION
 Globalization refers to global
economic integration of many
and formerly national
economies into one global
economy – mainly by free trade
and free capital mobility.
 Globalization refers to the
interconnectedness of people
and business across the world
that eventually lead to global,
cultural, political, and
economic integration
 Global means worldwide
INTERNATIONALIZATION
 Internationalization refers to
the increasing importance of
international trade,
international relations, treaties,
alliances and others.
 International means between
or among nation.
internationalism is basically
anchored on the opinion that
nationalism should be outrun
because links that bind people
of different countries are more
powerful than those that
disconnect them.
 Globalism refers to the
operation or planning of
economic and foreign policy on
a global basis. It emerged as an
attitude that seeks to
understand all the
 interconnections of the
modern world and to highlight
patterns that underlie them. It
pursues to describe and explain
a world that is characterized by
a network of connections that
span multi-continental
distances.

To conclude, contemporary
global governance defines the
political scope of globalization.
Cooperation among nation-states
is the only way to reform and
advance the roles and functions of
interstate relationships despite
real challenges being faced by
United Nations.