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8/26/2021 Module 1 - ORGANIZATION/STRUCTURE OF GLOBALIZATION

Module 1 - ORGANIZATION/STRUCTURE OF GLOBALIZATION

Site: New Era University Printed by: Ralphy A. Yparraguirre


Course: GECTCW-18 - The Contemporary World Date: Thursday, 26 August 2021, 1:57 PM
Module 1 - ORGANIZATION/STRUCTURE OF
Book:
GLOBALIZATION

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8/26/2021 Module 1 - ORGANIZATION/STRUCTURE OF GLOBALIZATION

Table of contents

1. Introduction/Overview

2. Learning Outcomes

3. Lesson 1- Module 1

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1. Introduction/Overview

This module aims to manifest the phenomenon of globalization. It tells that the daily press is filled with reminders of how the
world organizations have taken on a global focus. International and national news reports frequently mention such matters as
international trade, foreign exchange rates, losers and gainers in the stock market, currency fluctuations and oil price hike. This
shows that the world is no longer isolated as everybody is a participant in all these global activities.

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8/26/2021 Module 1 - ORGANIZATION/STRUCTURE OF GLOBALIZATION

2. Learning Outcomes

Learning Outcomes

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

1. Define and explain what is globalization


2. Analyze the interrelated factors of globalization
3. Interpret how governments influence competitiveness
4. Explain why globalization is uneven based on the three ranking standards.

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3. Lesson 1- Module 1

1. Definitions of Globalization

a. In the academe under the new General Education Curriculum, the best scholarly definition
of globalization is provided by Manfred Steger (2014, p. 184). He described globalization as
“the expansion and intensification of social relations and consciousness across world-time and
across world-space. The first key word expansion may refer to the creation of the international
marketplace including the international cultural environment where education, social
institutions, material elements are connected and occur at different levels. On the other hand,
intensification refers to the expansion, stretching and acceleration of the networks of the former.

b. In another view, globalization is defined as the process through which an increasingly


flow of ideas, people, goods and services, technology and capital leads to the integration of
economics and societies at a speed unprecedented in effect and outcomes (as cited by Danug
& Campanilla, 2004, p.81).

c. Anthropologist Arjun Appadurai (1996) argues that there are multiple globalizations and
it depends on what is being globalized. It could be an idea, material, and nonmaterial culture.
The globalization system which is aptly called the digital age has something to do with the
context, character, content and conduct of power and shaped up with the changing
configuration of power of the individuals, group of the individuals, associations, corporations,
institutions and the nation-state (Danug & Campanilla , p.83)

d. In the context of economics, it is defined as the recognition by organizations that


business must have a global, not local focus. It refers to a new perspective or attitude about
relationships with other people in other nations. Economically, it also refers to the
unprecedented scope, shape, number and complexity of business relationship conducted
across international boundaries. The phenomenon of globalization according to Stoner et al.
(1995) as cited by Abelos, et al. (2016) consists of three interrelated factors – proximity,
location and attitude.

1. 2. The Interrelated Factors as Discussed in the Three Facets of Globalization

Proximity

First, organizations now operate in much closer proximity than ever before to a greater
number and range of customers, competitors, suppliers, and government regulators. This
proximity, a function of the “shrinking globe,” is partly a matter of time, as today’s
telecommunications technology allows people around the world to share voice, video, and
facsimile information in minutes.

Location

Second, the location and integration of an organization’s operations across several


international boundaries is part of globalization.

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Attitude

Third, globalization refers to a new, open behavior about practicing management


internationally. This attitude combines a curiosity about the world outside one’s national borders
with a willingness to develop the capabilities for participating in the global economy.

1. 3. How Governments Influence Competitiveness

According to Young (1995 as cited by Abelos et.al, 2006), he concluded that both government and business need to place a higher priority
on international competitiveness. Among specific recommendations, he suggested that responsibility for formulating international trade policy
and encouraging exports (now fragmented among multiple government agencies) should be unified.

Global managers thus operate in a climate marked by more aggressive government efforts to influence how they run their organizations.
According to Porter (1990), those efforts have influenced global competitiveness.

With striking regularity, firms from one or two nations achieve disproportionate worldwide success in particular industries. Some national
governments seem more stimulating to advancement and progress than others.

Porter traces that success to a significant degree, to the economic climate institutions, and policies attributable to government actions.

1. 4. Globalization and Competitiveness

The term competitiveness is viewed as an idea that applies in a number of different settings. It refers to the relative standing of one
competitor against other competitors. Competitiveness is like the game of the musical chairs. There are finite numbers of places to sit, and some
are more desirable than others.

Measuring Globalization

There is no doubt we now live in a global market place. In scores of countries around the globe, the same products and services are
available to consumers and organizations. These range from McDonald’s restaurants to Sony electronic equipment to Nokia and Samsung
cellular phones. But ask the average of consumers where the global array of goods comes from and you will hear several answers that reflect
differing perceptions. Throughout the world, McDonald’s is the quintessential American fast-food restaurant, just as the Doc Martens is
synonymous with British youth culture. But for many other product, brands, and companies, the sense of identity with a particular country is
becoming blurred. Which brands are Japanese, or Americans, or German? Does a Big Mac taste the same everywhere in the world?

There are many alternatives on how to measure globalization per country in the world. The KOF Swiss Economic Institute offers a useful
ranking into three broad categories as follows:

Economic globalization measures long distance flow of goods, capital, and services as well as information and perception that company
market exchanges;

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8/26/2021 Module 1 - ORGANIZATION/STRUCTURE OF GLOBALIZATION
Social globalization measures the spread of ideas, information, images and people.

Political globalization measures the diffusion of government policies in terms of the number of embassies and consulates in a country,
membership in international organization, likewise participation of a country in United Nations peace missions and similar advocates.

In general, most of the countries in higher ranking are affluent countries or the so called” Global North.” With the exception of Singapore,
which is situated geographically in the Global South, the rest are economically well-off. The statistics shows the top 36 nations (among the top
50 in the globalization index on the data constructed in 2015. The index is based on three dimensions or core sets of indicators namely
economic, social and political.

References:

References:

Abelos, A. et. al., (2018), The contemporary world, MUTYA Publishing

House Inc.

Claudio, L. & Abinales, P. (2018), The contemporary world, CE Publishing

https://www.scribd.com/document/394529123/THE-CONTEMPORARY-WORLD-pdf

Fernandez Jr., G. et. al., (2018), The contemporary world, MUTYA

Publishing House Inc.

https://www.researchgate.net/publication/331683123_Contemporary_World

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