GLOBALIZATION

- refers to time- space compressions (Harvey, 1989). -

refers to the integration of the world-economy (Glipin, 2001).
- is the de-territorialization – or ....the growth of
supraterritorial relations between people (Scholte, 2002). -
refers to the expansion and intensification of social relations
and consciousness across world-time and world-space
(Steger, 2010).
- is the inexorable integration of markets,
transportation systems, and communication systems to a
degree never witnessed before – in a way that is enabling
corporations, countries, and individuals to reach around the
world farther, faster, deeper, and cheaper than ever before,
2. Dependency Theory (Frank)
and in a way that is enabling the world to reach into
corporations, countries, and individuals farther, faster, - An approach based on the periphery’s dependence
deeper, and cheaper than ever before (Friedman, 1999). to the core.
- the core exploits resources in the periphery resulting
- refers to the worldwide intensification of
in the periphery’s dependence on the core as it imports the
interactions and increased movement of money
core’s finished products.
People, goods, and ideas within and across national
borders (Guest, 2017).

KEY DYNAMICS OF GLOBALIZATION 3. World Systems Theory (Wallerstein)

1. Time-Space Compression - There is only one world – a complex world-systems theory –
in which nation-states compete for capital and labor.
- According to the theory of time- space compression, the
- The global economy is a market system with a fluid and
rapid innovation of communication and transportation
dynamic flow of countries and economies from periphery to
technologies has transformed the way we think about space
semi-periphery to core
(distances) and time.

4. Information Arbitrage (Friedman)

2. Flexible Accumulation
- reflects the fact that advances in transportation and
communication have enabled companies to move
their production facilities and activities around the
world - Reasons: cheaper labor, lower taxes, and
fewer environmental regulations
a) Offshoring – is the relocation of a business process
from one country to another—typically an operational
process, such as manufacturing, or supporting processes,
such as accounting.
b) Outsourcing - is an agreement in which one
company contracts its own internal activity to a different
company. It involves the contracting out of a business process
and operational, and/or non-core functions to another party.
3. Increasing Migration
- There is an accelerated movement of people both within
countries and between countries. - 5,460 OFWs (Left the
Philippines daily in 2017)
- 2.3 million Number of OFWs (PSA, 2018)
4. Uneven Development
- Although many people associate globalization with rapid
economic development and progress, globalization has not
brought equal benefits to the world’s people.
THEORIES OF GLOBALIZATION
1. Modernization Theory (Rostow)
- Based on stages of economic growth and modernization
a) Traditional society
b) Pre-conditions for take-off
c) Take-off
d) Drive to maturity
e) The age of mass consumption
- To understand the complex system of globalization a
multilens perspective is needed.
- Six dimensional information arbitrage is the best way
to see the system of globalization; politics, culture, national
security, financial markets, technology, environmentalism.
Perspectives on Globalization
1. Hyperglobalist Perspective
- This is an approach which sees globalization as a new
epoch in human history.
- This new epoch is characterized by the declining
relevance and authority of nation-states, brought about
largely through the economic logic of a global market.
2. Skeptical Perspective
- This views current international processes as more by
fragmented and regionalized than globalized. - Current
processes show, at best, a regionalization. - Authors with a
skeptical perspective reject the notions of the
development of a global culture or a global governance
structure.
3. Transformationalist Perspective
- This perspective differs fundamentally from the other two
perspectives in that:
a) there is no single cause (that is, the market or
economic logic) behind globalization; and that
b) the outcome of processes of globalization is not
determined.
Globalization as Westernization
Westernization is a process whereby societies come under or
adopt Western culture in areas such as industry, technology,
politics, economics, lifestyle, law, norms, mores, customs,
traditions, values, mentality, perceptions, diet, clothing,
language, alphabet, religion, and philosophy.
- Modernization means Westernization
Americanization refers to the import by non - Americans of
products, images, technologies, practices and behavior that
are closely associated with America/Americans.

Globalization as Glocalization
Glocalization is the simultaneous occurrence of both
universalizing and particularizing tendencies in contemporary
social, political, and economic systems.
ECONOMIC GLOBALIZATION
- refers to the integrational mobility of individuals, capital,
technology, goods, and services. It's also about how in the
global economy integrated countries are. It refers to how
different countries and regions have become interdependent
across the globe.
(18h) People do not cross boundaries easily, but technologies,
and products do. According to one of the most often cited
definitions, "economic globalization is 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. The term sometimes also refers to
the movement of people (labor) and knowledge (technology)
across international borders. (IMF. , 2008)
The phenomenon can thus have several interconnected
dimensions, such as:
(1) the globalization of trade of goods and services:
(2) the globalization of financial and capital markets;
(3) the globalization of technology and communication; and
(4) the globalization of production.
(Dicken, 2004)
* Economic globalization - functional integration
between internationally dispersed activities'
* Internationalization - is about the extension of
economic activities of nation-states across borders *
Economic globalization is rather a qualitative transformation
than just a quantitative change. * If, however, globalization is
indeed a complex, indeterminate set of processes operating
very unevenly in both time and space' (Dicken, 2004), a more
substantive definition for economic globalization is required
than the one offered by the IMF (2008).
* In economic terms, globalization is nothing but a
process making the world economy an "Organic system" by
extending transnational economic processes and economic
relations to more and more countries and by deepening the
economic interdependencies among them.' ( Szentes (2003))
* Economic development, apart from GDP growth,
also includes improvements in literacy, life expectancy, and
wellbeing for people.
* The trend of economic globalization has certain
definite advantages to it, but some disadvantages must also
be considered so that the economic opportunities continue to
grow larger as the world becomes even smaller.
Advantages of Economic Globalization
1. It promotes local growth by stimulating overall
growth. The theory of trickledown economics works if it is
appropriately implemented. That's because it is all about
spending. Multinational businesses spend through national
companies. Contributing public businesses through local
businesses. Local businesses are providing their community
with jobs and dollars. If a business hoards their cash, the
entire system will collapse, but the theory as a whole is right.
2. Higher levels of mutual trust would be created. If
different people can trust each other, the only way business
opportunities can grow. Different corners of the world have
different views on what is right or wrong. The colonial aspects
of a growing business empire can be reduced by working
together and learning from the different views that people
have because people will work with other people to lift each
other.
3. A global community requires a global economy.
Goods and services are already being bought from a global
perspective. Thanks to many websites that allow individuals
to market their products or services to anyone with access to
a computer or mobile device, a worldwide market exists
online. This means that when it comes to the initial first
impression, someone with a home computer and a
broadband hookup can be as competitive as the big
multinational corpocorporatio
4. It forces us to share financial considerations with
everyone. Instead ofhaving segmented pots of cash used for
personal needs, economic globalization creates a large pile of
money that can be used for everyone's benefit. Local
expenditure will always occur, but the emphasis will shift first
help meet the needs of the world instead of first meeting
national needs from a business perspective once true
globalization takes place.
5. It provides an opportunity for undeveloped countries
to join the developed world. Many countries struggle to keep
pace with today's global changes. There is no doubt that
economic globalization would bring a new wave of
outsourcing to nations that could use a cash burst to work on
their infrastructure and other domestic needs. Over time, it
could create a level of equality in development that has not
been seen since the Roman Empire ruled much of the known
world.
6. Innovations in some fields would create new
technologies. If there is a need to reach a global audience for
real business success, many businesses will need to focus on
investment and innovation to make that happen. Whenever a
change takes place, new technologies also arrive in many
different fields. The result is a better living standard for all
those involved in the process of development.
Disadvantages of Economic Globalization
1. It gives more power to businesses to influence civil
government. As businesses grow in wealth, political elections
can be better shaped. Because of their cash flow they car
lobby for laws that benefit their business. In the past, foreign
firms have been restricted influencing domestic elections, but
recent U.S. Supreme Court rulings and other legal entities
have made it more potent than ever before.
2. It removes local cultures' emphasis. There is no
doubt that in economic globalization, the American business
revolution takes over the leading role. In Europe, the APAC
region, and the Middle East, there are other multinationals,
but the US dominates the business world. This means that the
emphasis on local culture will be extinguished as globalization
continues. Instead of giving influence from a business
perspective, there will only be the three regions.
3. It encourages disease development and spread.
Having a globalized economy means more people will travel
internationally than ever before. As the 2014 Ebola outbreak
showed, when people hop on aircraft and travel anywhere in
the world in 2 days or less, the disease can spread rapidly.
With more people doing this, more diseases will spread to
places around the world where they are not generally seen
today.
4. In economic globalization, most of the world is
ignored. It is believed that the world's richest 20 percent
consumes about 85 percent of the total resources of the
world. That means that as the world becomes smaller, the
undeveloped world will be left behind. Combined, developing
nations only get 15% of current resources as they are and as
business opportunities take on a global calling, inequality is
likely to continue to grow over time.
5. The exploitation of workers is likely to increase.
Because economic globalization is ultimately a quest for
greater profits, there will be a need to exploit the workers in
undeveloped nations that do not make a living wage
anywhere. Why pay somebody $20 an hour to make parts
when instead a worker can be paid $0.25 an hour? Most of
the world's workers today live on daily wages of just $2 or
less. As this becomes a business world, this will continue to
increase.
6. It would change where there are unemployment and
poverty. If jobs are outsourced in a global economy, a
maximum global output will eventually be achieved. There
will be no room for growth anymore. This means that
outsourced jobs in developed nations will create
unemployment and potential poverty, shifting who holds
power in the global economy. Businesses are not concerned
about frontiers.They are concerned about profits. Social
welfare or benefit programs ideas could cease to exist
entirely.
Aspects of Economic Globalization and International
Relations
1. Ensures a more natural movement across nations of
goods and services.
2. To foster international economic ties, this is an
absolute necessity.
3. 'Leads to nationwide free trade. Several bilateral
trade agreements have been signed between countries since
the early days of globalization.
4. The ensured information flows easier and faster
across geographic boundaries. Economic relationship success
often depends on information.
5. It has led to a reduction in cultural barriers that have
proved conducive to nationwide economic cooperation. 6.
Movement of capital between countries due to globalization
has also played an essential role in international economic
relations.
7. It has given rise to several multinational corporations
which undertake economic activity across geographical
borders.
8. It has helped to address environmental issues which
are strategic to international economic relations.
The Impact of Globalization on Developing,
Transitional & Developed Countries
1. Developing countries are forced, in effect, to hold vast
reserves in dollars or Euros, providing low or zero interest
loans from developing countries to developed countries.
International financial arrangements which increase risk and
force the developing countries to bear risk (e.g., associated
with interest rate and exchange rate changes) increase the
incomes of those who have a comparative advantage in
absorbing risk - the developed countries - at the expense of
those who have a relative disadvantage the developing
countries in East Asia.
1. Developing countries are nations with a weak
industrial base where people have a lower life expectancy,
less education, and less income. Examples of developing
countries are most of the countries in Africa and certain
countries in East Asia.
2. Transitional countries are those emerging from a
different type of economy towards a market-based economy.
Transitional economy refers to all states that attempt to
change their essential constitutional elements towards
market-style fundamentals. The best examples of transitional
countries are China and Russia.
3. Developed countries are countries with a lot of
industrial activities and where people generally have high
incomes. They have postindustrial economies, meaning the
service sector provides more wealth than the industrial area.
The United States of America, Australia, and most of the
European countries are examples of developed countries.
* An economy can have sectors in both the developing and
developed stages, but cannot be transitional at the same
time. In developing countries, economic globalization is
reaping social benefits. Of course, in the direction of her life,
she must navigate a fine line, balancing between optimizing
opportunities and realizing potential, creating her enemies
and thus becoming the architect of her demise. *
Globalization's benefits are true because it has yielded
positive results just as often as it has caused ruin. It leads to
increased internal security and stability. It leads to better
human well-being. And it shares developed countries'
luxuries. But, of course, much of globalization is a waiting
game; it's a time-consuming process indeed. The decision is
whether the ends justify the means, whether the wait is
worth it, whether the long-term benefit is greater than the
short-term detriment. At its core, economic globalization is
an investment for the future
MARKET INTEGRATION
-Integration shows the relationship of the firm in a market.
The extent of integration influences the conduct of the firms
and consequently their marketing efficiency.
TYPES OF MARKET INTEGRATION
• HORIZONTAL INTEGRATION – is a competitive strategy that
can create economies of scale, increase market power over
distribution and suppliers, increase product differentiation,
and help business expand their market or enter new markets.
Examples: The Walt Disney Company’s Acquisition of 21st
Century Fox: Facebook’s Acquisition of Instagram
• VERTICAL INTEGRATION – When pursuing a vertical
integration strategy. A company involves in a new portion of
the value chain.
Examples: Tesla’s Vertical Integration in the Electric Vehicle
Industry Amazon’s Vertical Integration in E-Commerce
• BACKWARD VERTICAL INTEGRATION – Backward
integration is a form of vertical integration in which a
company expands its role to fulfill tasks formerly completed
by businesses up the supply chain. In other words, backward
integration is when a company buys another company that
supplies the products or services needed for production.
• FORWARD VERTICAL INTEGRATION – Forward integration is
a type of vertical integration that involves taking control of
later stages in the production process while continuing to
manage earlier phases. This strategy can have many benefits
for companies in various industries, helping them increase
their market share and maximize profits.
• A CONGLOMERATE INTEGRATION – Is a fusion of
companies involved in completely unrelated business
activities. There are two kinds of mergers of conglomerates:
Pure and mixed. Pure mergers of conglomerates involve
companies with nothing in common, while diverse mergers of
conglomerates involve companies looking for product
extensions or market extensions.
Examples of this mergers include Amazon and Whole Foods,
eBay, and PayPal, and Disney, and Pixar.

ADVANTAGES
A conglomerate merger benefits from both companies
reaching a larger target audience. If Y, merges with Z, both
companies share the same market base, allowing them to
spread their operations.
POTENTIAL DOWNFALLS
* Diversification can sometimes can be a decline for individual
businesses they can spread in too many areas.
* Diversification is a strategy that mixes wide variety of
variety of investments within a portfolio in an attempt to
reduce portfolio risk. Diversification is most often done by
investing in different asset classes such as stocks, bonds, real
estate, or cryptocurrency.

In summary, Market Integration occurs when prices among

different locations or related goods follow similar patterns
over a long period of time. Groups of goods often move
proportionally to each other and when this relation is very
clear among different markets it is said that the markets are
integrated