LESSON 3: 1.

Have investments and business in other

countries
MARKET INTEGRATION
2. Have subsidiaries (business sites/branches)
Historic Rise of Global Corporations: in many nations

Historical Globalization Approach: 3. Branches can personalize the marketing of

Based on arrangements in trade and exchange products
(Bentley, 2003; Gills & Thompson, 2006; 4. Keeps “one company culture” and “one set
Moore & Lewis, 2000). Before, globalization
of goods”
was stimulated by the leading technologies in
shipping and navigation (Harvey, 1990). Examples:

Post World War II Era: 1. McDonald’s Restaurants:

Economic recovery and growth were
spearheaded by American corporations Serve the same menu in all their locations with
followed by the re-entry of Japanese and some customized menus depending on the
European companies which later on were location.
regarded as MNCs (Barnet & Mueller, 1974).
2. Hyatt and Hilton Hotels:
How Do Global Corporations Function? What Have rooms which are all the same no matter
Constitute a Global Corporation? what nations the hotels are located.
According to Iwan (2012), the current
international corporations may be called as C. Multinational Companies:
any of the following:
A. International Companies 1. Invest in foreign countries
B. Global Companies 2. Do NOT possess coordinated commodity
C. Multinational Companies
offerings in every nation (related with #4).
D. Transnational Companies
3. Have fewer countries of interest than a
A. International Companies: global company
1. Import and export raw materials
2. NO other investments outside the country of 4. Different countries are in charge of
origin localizing the products and marketing to fit the
3. NO branches overseas culture.
4. Business functions & headquarters remain
in the country of origin 5. They offer tailored products within different
nations
Examples:
Examples:
1. Apple:
1. Starbucks:
Produces consumer electronics (computers,
Most of the menu are the same. Offerings
tablets, mobile phones, etc.). Products are sold
change based on local tastes. It also localizes
around the world, but the headquarters and all
seating and set-up to make local customers
product development are located within the
more comfortable.
U.S.A.
2. Honda:
2. Nike:
HQs are in Japan, but has established branches
Started as an international business. Decisions
all over the world. The product line-up varies
for the brand are all made within the US, and
by country (i.e., Honda trucks were developed
Nike products are exported to other nations.
for the US market).
B. Global Companies:
D. Transnational Companies:
1. Are complex corporations and have
investments in foreign nations.
2. Possess fundamental commercial facilities
3. Give decision making, research and
development (R&D), and marketing
authorities to every individual overseas
market.
4. Each local branch has its own decision
making power, own markets, and own product
selection
Examples:
1. Nestle:
Has HQs, but international branches make
their own decisions regarding operations and
product offering.
2. General Electric:
Has branches across the globe, many of which
make their own decisions on policy and
business direction.
NOTE: The term “global corporation” refers
to ALL of the four classifications.
TNC or MNC:
Defined by the United Nations Center on
Transnational Corporations (UNCTC) as a
business organization that involves itself in
activities which add value (manufacturing,
extraction, services, marketing, etc.) in more
than one nation (UNCTC, 1991).
The post-war period can be delineated in three
structural periods (Geriffi, 2001):
(a) Investment-based globalization (1950-70);
(b) Trade-based globalization (1970-95); and
(c) Digital globalization (1995 onwards)
Sources of Foreign Direct Investment (FDI)
by MNCs/TNCs:
According to Hedley, in 1900 only European
companies were principal investors.
Later on, American firms started to follow in
the 1930s.
What is an FDI?
Defined as the influx of private capital from a
foreign source into a receiving nation.
FDIs are the principal components of
international economic development for third
world countries (TWCs).
The bulk of FDIs in the 1990s came from
nations of the industrialized world (i.e., North
America, Europe, and Japan) (Geriffi, 2001).
According to Gilpin (2000), the investment-
based era was led by “producer-driven”
commodity or value chain dominated by
companies possessing massive amounts of
capital using extensive and capital-intensive
manufacturing strategies.
Many companies in the United States that
operate via the “producer- driven” commodity
chain were structured based on the “Fordist”
management principles.
The “Fordist” Management Principles:
1. Signifies modernity during the 1920s
2. Mass production of standardized goods on a
moving “assembly line” using machinery and
semi- skilled labor
3. Involves mass production and mass
consumption
Assembly Line: An arrangement of machines,
equipment, and workers in which work passes
from one operation to another via a direct line
until the product is assembled (i.e., production
of automobiles, appliances, and other
electronic goods).
4. Workers accept management authority in
return for rising wages
5. Presence of “monopolistic competition”
6. Centralized financial capital
The advent of Japan as a principal producer of
automobiles and consumer electronic products
since the 1970s introduced new prototypes of
effective manufacturing strategies which
centered on quality and flexible production.
These are seen by American companies as
challenges to their dominant positions on
commodity design, manufacturing efficiency,
and quality which resulted to an advanced
reinvention of the US corporate model,
especially in the industrial sector (Risi, 2005).
Corporate Brands: Signify a company’s
corporate activities and evaluate a
corporation’s prominence in the international
arena based on the value of its commodities
and services.
This is also recognized as “Brand Finance”, a
current trend which ranks global companies on
the value of their brands, aggregate revenue,
earnings, etc. (Brand-Finance, 2012).
“Producer-driven Commodity Chain” reduces
the effects of time and distance in terms of
design, finance and accounting, advertising
and brand development, legal services,
inventory control etc. Digitalization is
innovating the usual value chain of
manufacturing centered on improvement along
the following (Capgemini, 2012):
1. Product Design and Innovation are
replaced with innovations via digital product
design;
The developing economies of Brazil, Russia,
India, China, and South Africa (BRICS)
became the region of international corporate
growth, as reflected by their FDIs over the past
30 years.
The number of MNCs from the BRICS (listed
in the Fortune Global 500 that ranks
companies in terms of revenue) rose from 47
companies in 2005 to 95 in 2010.
Capital flows now originate from China and
India. China's Lenovo company purchased
IBM's PC business and India's investment in
British companies (i.e., Jaguar Land Rover)
(Economist, 2011).
China is the leading outward investor among
developing economies with projected assets in
2009 of approximately US$1 trillion (OECD,
2010).
Wolfsensohn, suggested a “four-speed world”
categorization which distinguishes economies
as:
(1) Affluent,
(2) Converging,
(3) Struggling and

2. Labor Intensive Manufacturing is (4) Poor, with the BRICS dominating the
substituted by digitizing the factory shop floor growth of the “convergent” group (#2). With
making it more capital- intensive; 40% of the globe’s inhabitants, the BRICS
signifies a major power in both worldwide
3. Supply Chain Management is changed by production and consumption (Wolfsensohn,
digital supply chain management; and 2007).
4. Marketing Sales and Service is innovated Top 15 Most Populated Countries (Mid-year
by digital customization. 2021)
“Buyer-driven Commodity Chain” gradually a. ASIA: 9 Countries
becomes digital with companies’
specialization in Internet marketing of b. AFRICA: 3 Countries
products and services to increase market share c. AMERICAS (N & S): 3 Countries
over traditional marketing and retailing.
COUNTRY POPULATION
The last 30 or more years observed the
revolution of the apparel industry motivated BRAZIL 212. 8 M
by digital processes from design, to ordering, RUSSIA 145.8 M
INDIA 1.393 B
factory processing, inventory control, delivery,
CHINA 1.412 B
branding, marketing, and advertising
SOUTH AFRICA 60.1 M
(Capgemini, 2012).
TOTAL: 3.224 B (rounded-off)
(40.81 % of world’s
 population)
NOTE: WORLD 7.9 B
POPULATION
According to the Boston Consulting Group
(2009), the following are some “Emerging
Market Global Corporations”:
1. Basic Element (Russia): world leader in
aluminum production
2. Bharat Forge (India): one of the world's
largest forging companies
3. BYD Company (China): world's largest
manufacturer of nickel- cadmium batteries
NOTE: Forging is a manufacturing process
which involves the shaping of metal through
compressive forces such as hammering,
pressing, or rolling.
4. CEMEX (Mexico): developed into one of
the world's largest cement producers
5. China International Marine Containers
Group (China): world's largest manufacturer
of shipping containers.
6. Cosco Group (China): one of the largest
shipping companies in the world.
7. Embraer (Brazil): surpassed Canada's
Bombardier as the market leader in regional
jets.
8. Galanz Group (China): has a 45 % share
of the European and a 25 % share of the US
microwave market.
9. Hisense (China): number one supplier of
flat- panel TVs to France.
7. Embraer (Brazil): surpassed Canada's
Bom10. Johnson Electric (China): world's
leading manufacturer of small electric motors.
11. Nemak (Mexico): one of the world's
leading suppliers of cylinder head and block
casings for the automotive industry.
12. Sistema (Russia): a conglomerate with a
focus on telecommunications.
13. Tata Chemicals (India): an inorganic-
chemicals producer with a significant global
market share of soda ash.
14. Techtronic Industries Company
(Hongkong, China): the number one supplier
of power tools to Home Depot.
15. Wipro (India): the world's largest third-
party engineering services company.
NOTE: Over half of all Soda Ash production
is used in glass manufacturing; powdered
detergents and soaps; rechargeable batteries,
cosmetics; and in pharmaceutical industry.
COUNTR NO. OF PERCENTA
Y CORPORATIO GE
N
BRAZIL 1 7%
CHINA 7 47%
INDIA 3 20%
MEXICO 2 13%
RUSSIA 2 13%
TOTAL: 15 100%
In 2009, China was the primary trade partner
of Brazil, India and South Africa.
Tata Company of India was the most dynamic
investor in sub -Saharan Africa.
Government-owned and controlled
corporations (GOCCs) or state-owned
corporations in which the government
possesses control (full, majority, or significant
minority), whether or not registered on a stock
exchange play an important part in these
emerging or developing economies
(UNCTAD-WIR, 2011).
Another description of China's state-owned
MNCs affirms that these are legacy
institutions (relics) of China's command-
socialist system that propagates in its revised
neo-capitalist economy.
Companies that lack economic efficiency and
competitive discipline are in effect subsidized
or funded by the Chinese state which gives
them market leverage to become globally
competitive (Woetzel, 2008; Greenacre, 2012).
 LESSON 4: THE GLOBAL INTER- RUSSIA: Joseph
STATE SYSTEM Stalin
CHINA (Taiwan):
Introduction Countries today are accountable
Chiang Kai Shek
to various global rules and pressures (i.e.,
advances toward supranational or regional
integration; and forces of domestic Leaders of the Axis Powers
fragmentation).
Germany – Adolf Hitler
Rosenau (2003): These opposing dynamics is
called “fragmegration”. Italy – Benito Mussolini

After WW II: UN had 51 founding member- Japan – Hideki Tojo

states.
In 2012: UN had 193 members. Palestine
was granted in November 2012 as a
“nonmember observer state” of the UN. This
is also the status held by the Vatican.
Palestine: Now considered as present-day
Israel. It includes the West Bank (territory
between Israel and Jordan) and the Gaza Strip
(between Israel and Egypt).
Vatican City: An independent city-state
located in Rome, Italy. It is the smallest
country in the world and governed as an
absolute monarchy with the Pope as its head.
When the People's Republic of China
(PRoC) took over mainland China in 1949 and
replaced the Republic of China (Taiwan,
formerly Formosa) as China's representative in
the United Nations, Taiwan totally lost its UN
membership and its permanent seat in the UN
Security Council in 1971.
Is Taiwan a Country or Part of China?
- Both the Republic of China (ROC -
Taiwan) and the Peoples’ Republic of China
(PRoC – Mainland China) still officially
claim mainland China and the Taiwan Area as
part of their respective territories.

MAP of VATICAN CITY (HOLY SEE) - In reality, the PRoC rules only Mainland
China and has no control of Taiwan, but
Vatican City is a state (i.e. country), while the claims Taiwan as part of its territory under its
Holy See is a religious organization which "One China Principle".
happens to govern Vatican City. The "Holy
See" refers to the authority of the Bishop of Thomas Friedman’s (2000) concept on the
Rome (the Pope). The Holy See is the “Golden Straitjacket”:
religious authority presiding over Catholic Means that countries are obligated to adhere to
churches in the entire Catholic world. rules that suit the likings of investment houses
World War II Leaders and corporate executives (the “Electronic
Herd”) who transfer money and other
ALLIED AXIS POWERS resources into states preferred as adaptable
NATIONS (competitive).
FRANCE: Charles GERMANY: Adolf
de Gaulle Hitler On the other hand, withdraw investments from
UK: Winston ITALY: Benito nation-states which are believed to be
Churchill Mussolini “uncompetitive”.
USA: JAPAN: Ronald Reagan (former US President) and
a. Franklin a. Emperor Hirohito Margaret Thatcher (former Prime Minister
Roosevelt (1933 –
of UK) advanced the laissez-faire economic
1945) b. Hideki Tojo
policy of Friedrich Hayek and Milton
(Prime
b. Harry Truman Minister/General) Friedman.
(1945 – 1953)
Thatcher became Britain's Conservative Party
leader and in 1979 was elected prime minister
(for 3 consecutive terms), the first woman to
hold the position. Thatcher resigned in 1990.
Ronald Wilson Reagan was an American
politician who served as the 40th president of
the United States from 1981 to 1989.
MEXICO:
Under import substitution policy, it failed to
produce a feasible car industry.
However, it was able to develop its global
market for automobile parts (Mexico’s
“Nemak” Company).
ARGENTINA AND NEW ZEALAND:
Farmers in these countries generated profit
exporting winter fruits and vegetables to
Northern Hemisphere buyers.
THAILAND AND TURKEY:
Facing difficulties of borrowing money
domestically, firms in these countries had
access to cheap and abundant overseas
finance.
JAPAN:
Rejected American ideas, and focused more on
developing globally competitive capabilities
by protecting and funding infant industries
(i.e., steel, consumer electronics, and
semiconductors).
SOUTH KOREA:
The most prosperous companies are the steel
maker POSCO (established with government
investment) and Samsung (a huge family-
dominated conglomerate with wide-ranging
special affiliations with the government
(Prestowitz, 2012).
Characteristics of “Competitive LDCs”
(Clarke, 2004):
a. Have very low wages
b. Poor working environments
c. Lenient environmental standards which
attract MNCs to establish their business firms.
The Case of Bangladesh:
a. Series of factory fires in 2012;
b. The collapse of a factory building in April
2013 killing more than 1,100 workers
producing clothes for retailers (i.e., Benetton,
Wal-Mart, etc.).
Economic & Political Integration: The Case
of the European Union (EU):
After WW II, the political leaders in Europe,
launched the European Coal and Steel
Community (ECSC) in 1951. Today, the EU
has 27 member-states (Croatia is the newest
member since July 2013). The EU has a single
currency (euro) and monetary system.
- E.U. established a supranational European
Parliament with increasing legislative powers
alongside the Council of Ministers.
- The EU Parliament is composed of elected
representatives from the national governments
of the 27 member-states.
Maastricht Treaty of 1992 (The
Netherlands):
Signatories approved a common citizenship
that gives citizens of the member-states the
rights to live, work, vote, and even run for
office in European parliamentary elections
(Council of Europe, 2012).
There are 19 EU member-states using the
euro currency as of February 2020. These EU
countries form the “euro-zone”.
Austria, Belgium, Cyprus, Estonia, Finland,
France, Germany, Greece, Ireland, Italy,
Latvia, Lithuania, Luxembourg, Malta, The
Netherlands, Portugal, Slovakia, Slovenia, and
Spain.
As of 2022, there are 7 countries where the
euro has still NOT been adopted, but they will
join once they have met the necessary
conditions.
Bulgaria, Croatia, Czech Republic, Hungary,
Poland, Romania, and Sweden.
 DENMARK CASE: 23 Latvia 1,886,198
24 Estonia 1,326,535
Denmark kept its former currency (Danish 25 Cyprus 1,207,359
krone) after becoming a member of the EU. 26 Luxembourg 625,978
European Court of Justice (ECJ) 27 Malta 441,543

From 1952, it operated as the highest dispute

resolution body for the EU and its forerunners. SUMMIT AT THE EUROPEAN
It set forth provisions such as: COUNCIL

“Supremacy”: EU laws are superior over Charles Michel, a Belgian politician is

national laws, and
“Direct Effect”: Member-states are obligated
to follow EU laws.
The European Court of Human Rights
(ECHR):
- This is only a portion of The Council of
Europe which advocates the European
Convention of Human Rights (ECHR),
currently approved by all 47 of its member-
states.
serving as President of the European Council
since 2019. He previously served as Prime
Minister of Belgium from 2014 to 2019.
THE EUROPEAN PARKIAMENT - voice of
the people
- 2019 -2024
The withdrawal of UK as an EU member-state
reduced the Members of the European
Parliament (MEPs) from 751 to 705 MEPs as
of 1 February 2020.

- Any person, group of persons, or CSO can
file ECHR cases against a member-state, and
member-states can also initiate cases against
each other (Council of Europe, 2012).
Countries in the EU by Population (2021)
EPP - group of the European People Party
(Christian Democrats)
S&D - Group of the Progressive Alliance of
Socialist and Democrats in the European
Parliament.

1 Germany 83,783,942 ECR - European Conservatives ans Reformist

2 France 65,273,511 Group.
3 Italy 60,461,826 Renew Europe - Renew Europe group
4 Spain 46,754,778
5 Poland 37,846,611 GUE/NGL - Confederal Group of the
6 Romania 19,237,691 European Inised left - Nordic green left
7 Netherland 17,134,872
8 Belgium 11,589,623 Greens/EFA- Group of the Greens/ European
9 Czech 10,708,981 Alliance
Republic ID - Identity and Democracy
10 Greece 10,423,054
11 Portugal 10,196,709 NI- Non-attached Members
12 Sweden 10,099,265
13 Hungary 9,660,351 Council of Minister - Voice of the Member
14 Austria 9,006,398 States
15 Bulgaria 6,948,445 - One minister from each EU country.
16 Denmark 5,792,202
17 Finland 5,540,720 -Presidency: Routes every six months.
18 Slovakia 5,459,642
19 Ireland 4,937,786 -Decides EU laws and Budget together with
20 Croatia 4,105,267 Parliament.
21 Lithuania 2,722,289 - Manages the common foreign and security.
22 Slovenia 2,078,938
The European Commission - Promoting the
common interest.
28 Commissioners, one from each Eu Country.
- Proposes new legislation.
- Executive organ.
- Guardian of the treaties.
- Represent the EU on the International stage
Germany’s Ursula von der Leyen was
approved as the 13th President of the
European Commission by the European
Parliament since July 16, 2019. She assumed
office on 1 December 2019.
The Court of Justice - Upholding the law
28 independent judges, one from each EU
country
- Rules on how to interpret EU law.
- Ensure EU countriees apply EU laws In the
same way.
THE EUROPEAN CENTRAL BANK:
MANAGING THE EURO
- Ensures Price Stability
- Controls money supply and decides interest
rates.
- Supervises that banks are safe.
- Works independently from governments.
Christine Lagarde (from France) is the current
President of the European Central Bank since
November 1, 2019.
The Rise of International Law and
Universal Principles (The United Nations;
1945)
1. The UN Security Council awards veto
power ONLY to each of the 5 countries that
won WW II (US, UK, France, Russia, &
China).
2. The decision of the UN Security Council is
based on unanimous decision.
3. The General Assembly (193 members) is
less powerful than the UN Security Council.
The US-led invasion of Iraq in 2003 without
the consent of the UN Security Council
(UNSC) signified that countries invading
foreign nations in violation of the UN Charter
would suffer NO PENALTIES of their actions
aside from criticisms and hatred.
- The UN organization also was not able to
prevent many violence and killings from
happening globally during its existence.
- Note: There are only 97,000 uniformed
military personnel (Blue Helmet) from over
120 countries, under the command and control
of the UN.
- UN ad hoc tribunals that sentenced several
persons from Rwanda (Central-Eastern
Africa) and the former Yugoslavia (Balkan
Peninsula/ Southeastern Europe) of war
crimes.
- Yugoslavia before consisted of 6 federal
republics (Serbia, Croatia, Bosnia and
Herzegovina, Macedonia, Slovenia, and
Montenegro).
Another significant accomplishment was the
permanent establishment of the International
Criminal Court (ICC) in 2002.
Its role is to prosecute individuals accused of
genocide and other crimes against humanity.
However, China, India, and the US are not
among the 122 states that authorized the
court's founding treaty, the “Rome Statute”
(Doyle, 2011).
UN’s Responsibility to Protect (R2P)
Doctrine:
The UN Security Council promotes the
doctrine of “Responsibility to Protect” (R2P)
when it approved in early 2011 a “no-fly
zone”; an arms embargo; and the use of “hard
power” in Libya's Civil War.
- This strategy aimed to protect civilians from
government attacks made by the dictatorial
regime of Libya’s Moammar Gaddafi.
The North Atlantic Treaty Organization
(NATO), with Britain, France and the United
States taking the lead, intervened in Libya in
ousting Gaddafi through its NATO air strikes.
The NATO:
Purpose is to guarantee the safety and freedom
of its members by political and military
means. The headquarters is located in
Brussels, Belgium, and was established in
1949 in Washington D.C., USA.
There is a total of 30 countries in NATO: (a)
27 countries in Europe; (b) one in Eurasia
(Turkey); and (c) 2 in North America (USA
and Canada).
NATO does not have its own armed forces.
But it has a permanent unified military
command structure, by which civilians and
the military of all member-states work
together.
In Syria (Middle East/Western Asia):
Bashar Hafez al-Assad stayed in power at the
start of 2014 even though his regime and
military supporters committed various
atrocities against thousands of protesting
Syrian citizens.
This included a chemical weapons attack in
August 2013 that killed an estimated 1,400
civilians.
After U.S. President Barack Obama
threatened to launch limited military strikes
against Syria, the Syrian regime sworn in an
agreement to extinguish its stockpiles of
chemical armaments (Doyle, 2011).
United States National Security Agency
(USNSA):
This conducts global surveillance operations
with its government and business associates
worldwide.
These include:
a. interceptions of e-mail messages;
b. tracking of mobile phones;
c. passport control officers taking compulsory
photographs;
d. collecting fingerprints of people passing
through checkpoints; and
e. “Biometric authentication” components in
the issuance of passports and visas.
States also compete not only for economic
development but also for moral credibility.
This is evident on how various CSOs rank
countries and publish annual indexes
worldwide.
(a) Transparency International's
“Corruption Perceptions Index” (Year 2020
Data):
Score: 0 (Highly Corrupt) 100 (Very Clean)
Philippine Score: “34” (113/183 countries)
(b) Freedom House's “Freedom in the
World Index” of political rights and civil
liberties (Year 2020 Data):
Score: 1 (Free) 7 (Not Free)
Philippine Score: “3” (Partly Free) (61/100
countries)
(c) The “Democracy Index” published by
The Economist Intelligence Unit (Year 2020
Data):
1. From 0 to 15 points: Good Situation
2. From 15.01 to 25 points: Satisfactory
Situation
3. From 25.01 to 35 points: Problematic
Situation
4. From 35.01 to 55 points: Difficult Situation
5. From 55.01 to 100 points: Very Serious
Situation
Philippine Score: “43.91” (Difficult
Situation) (134/180 countries)
(e) The “Failed States Index” from Foreign
Policy Magazine (Year 2020 Data):
1 (Low Risk of Conflict)
100 (Highest Risk of Conflict
Philippine Score: “83.1” (Higher Risk of
Conflict) (50/178 countries)
(f) The “Better Life Index” launched in
2011 by the Organization for Economic Co-
operation and Development (OECD) (Year
2020 Data):
1 (Best Life) Note: The higher the number the
lower the quality of life and material condition
Philippine Score: “87.5” – Low quality of life
and material condition (56/64 countries)
States as Targets: The Rise of
Transnational Activism
The International Campaign to Ban
Landmines:
This urged states to sign the Ottawa Treaty
(Canada) that now has 160 signatories.
However, similar to the International Criminal
Court, some of the world's largest countries
(China, Russia, and the United States) have
NOT signed the treaty.
The Global Justice Movement (GJM)
Called for alternatives to neoliberal economic
globalization and criticized the North
American Free Trade Agreement (NAFTA).
The movement originated in 1994 in Chiapas,
Mexico.
Alter-globalization Movement (AM):
Became famous in 1999 as a reaction to the
meeting of the World Trade Organization
(WTO) in Seattle, USA.
This movement calls for an alternative model
of globalization (i.e., in promoting human
rights, participatory democracy, local control,
sustainability, and cultural diversity).
The World Social Forum (WSF):
A counter attack against the World Economic
Forum (WEF) (Steger & Wilson, 2012).
The WSF avoids hierarchy and centralized
control. It also promotes a more socially and
environmentally-responsive alternatives to
globalization.
Communication Networks, New Media, and
the State:
Technological advances made it easier for
authoritarian states in Russia, Saudi Arabia,
and Myanmar to silence bloggers utilizing
software programs that filter Internet content
and denial-of-service attacks.
State-funded Television Networks:
 Cable News Network (CNN) – USA
 British Broadcasting Corporation
(BBC) World – U.K.
 Al Jazeera English - Qatar
 Al Arabiya - Saudi Arabia
 France 24 – France
 Russia Today – Russia
 China Central Television (CCTV) –
China
 Nippon Hoso Kyokai (NHK World) –
Japan
In China:
Citizens are more linked and vocal than
before, even if the government is still working
to manipulate public opinion and crush
nonconformists (Shirk, 2010).
- The revolutions in Tunisia and Egypt in
early 2011 showed how engaged citizens
could topple dictatorships. Protests in
Myanmar (Burma) which were encouraged
by cyber-activists eventually pushed the
government there to open up partially.
Even the world's most isolated and repressive
state (North Korea) maintains websites
boasting their national leader (Kim Jong-Un).
“Russia Today” features a Putinesque (named
after Russian President Vladimir Putin) view
of the world (Seib, 2008).
Al Jazeera played a significant role in the
Arab Spring Revolutions, broadcasting
videos filmed by protesters through their
mobile phones and sent via e-mails to
television studios.
What happend after the arab Spring?
- government was overthrown and there was a
successful transition to democracy.
- Government was overthrown and the new
government is still developing. - Government
was not overthrown, but changes were made.
- fighting a civil war.
- Protest ere stopped, no major changes were
made,
LESSON 5: CONTEMPORARY GLOBAL
GOVERNANCE
Global Governance “The sum of laws, norms,
policies, and institutions that define,
constitute, and mediate trans-border relations
between states, cultures, citizens,
intergovernmental (IGOs) and non-
governmental organizations (NGOs), and the
market” (Weiss & Thakur, 2014).
Brings together actors to coordinate collective
action to provide global public goods (i.e.,
peace and security, justice, functioning
markets, and unified standards for trade and
industry).
3 Main Elements of Global Governance:
a. consensus,
b. rules, and
c. membership of multiple governments
Actors in global governance depend on
multilateralism.
Multilateralism is defined as a situation in
which several countries or organizations work
together to achieve something or to deal with a
problem (https://dictionary.cambridge.org/
Global governance exists due to the growing
importance of non-state actors (i.e., the
private sector, the market, MNCs, and the civil
society).
Weiss and Thakur (2014): “Civil society
actors play active roles in shaping norms,
laws, and policies. They are participants in
global governance as advocates, activists, and
policy makers”.
The leading governance actor with an
international membership today is United
Nations (UN). It involves not only sovereign
states but also non-state entities.
Founded in 1945, the main purpose is to
prevent future conflicts between states, and is
mandated to preserve global security through
the UN Security Council.
However, UN should NOT be understood as a
new international system paradigm that will
replace the Westphalian Sovereignty.
Westphalian Sovereignty
The principle of international law that each
nation- state has sovereignty over its territory
and domestic affairs, to the exclusion of all
external powers, on the principle of non-
interference in another country’s domestic
affairs, and that each state (no matter how
large or small) is equal in international law.
The doctrine is named after the Peace of
Westphalia, signed in 1648.
North Rhine–Westphalia: Germany's most
populous state consisting of many medium-
sized and large cities. Among them are
Aachen, Bochum, Bonn, Cologne, Dortmund,
Duisburg, Düsseldorf, Essen, Münster,
Solingen, and Wuppertal.
Aside from UN, there are other institutions
that play important roles in global governance
such as the World Bank (WB) and the
International Monetary Fund (IMF).
World Bank (in full, World Bank Group)
International organization designed to finance
projects that enhance the economic
development of member- states. The bank is
the largest source of financial assistance to
developing countries.
International Monetary Fund (IMF)
A specialized agency of UN that secures
international monetary cooperation, stabilizes
currency exchange rates, and aims to expand
international liquidity (“access and availability
of hard currencies”).
Hard Currency:
Refers to money that is issued by a nation
which is seen as politically and economically
stable.
Hard currencies are widely accepted around
the world as a form of payment for goods and
services and may be preferred over the
domestic currency.
Roles and Functions of United Nations UN
has roles in “preventing and managing
conflicts, regulating armaments, championing
human rights and international humanitarian
law, liberating the colonized, providing
economic and technical aid in newly liberated
countries, organizing elections, empowering
women, educating children, feeding the
hungry, sheltering the dispossessed and
displaced, housing the refugees, tending to the
sick, and coordinating disaster relief and
assistance (Weiss & Thakur, 2014).
Refugees
People who have fled war, violence, conflict
or persecution and have crossed an
international border to find safety in another
country.
Four essential roles of UN in identifying and
diagnosing problems (Weiss & Thakur,
2014):
1. Managing Knowledge Involves:
a. the recognition of the existence of the
problem;
domestic laws through state structures, such as
the government.
> UN promulgates norms with the consent of
most of its members.
3. Formulating Recommendations The UN’s
ability to convene and consult widely, plays an
enormous part in its ability to formulate
recommendations for specific policies,
institutional arrangements, and regimes.
4. Institutionalizing Ideas Institutions
initiated by governments to attack global
problems require substantial financing and
backing. These existing institutions oversee
the implementation and monitoring of policies
formulated.
List of Specialized Agencies of the Umited
Nations:
1.FAO
2. ICAO
3.IFAD
4. ILO

b. the collection of solid data about the nature 5. IMO

of the problem; and 6. IMF
c. identification of its causes to explain the 7. ITU
problem.
8.UNESCO
UN-sponsored world conferences; heads of
government summits; and blue-ribbon 9.UNIDO
commissions and panels have been used for
10. UPU
implementing collective decisions and for
monitoring progress. 11. WBG
Blue Ribbon Commissions 12. IBRD
Tasked to investigate the wrongdoings of a 13. IFC
particular government (its official and its
attached agencies). The blue ribbon is a 14.IDA
symbol of high quality. 15. WHO
2. Developing Norms UN helps create new 16. WIPO
norms of behavior usually through summit
conferences, international panels, and 17. WMO
commissions. Since our societies vary, norms
18. UNWTO
also vary.
19.
> International norms can be transmitted down
into national politics and incorporated into 20. IAEA
21. UNICEF
22. WTO
23. OPCW
Challenges of Global Governance in the
21st Century
Contemporary issues include women
empowerment, regulation of the skies and
seas, cybercrime, climate change,
urbanization, pandemics, terrorism, and
weapons of mass destruction (Weiss &
Thakur, 2014).
> Other global issues include human rights,
human development, labor, health, peace,
conflict, disarmament, communication,
finance, and environment.
> Trade and economic integration were the
most visible aspects of international
cooperation in the past years.
>The UN system and the International
Governmental Organizations (lGOs) are
inadequately resourced.
>They do not have adequate policy authority
and resource-mobilizing capacity; and
sometimes incoherent in their separate policies
and philosophies (Weiss & Thakur, 2014).
6 Main Organs of the UN (established
during the UN foundation in 1945)
A. The General Assembly
B. The Security Council
C. The Economic and Social Council
D. The Trusteeship Council
E. The International Court of Justice
F. The UN Secretariat