TECHNOLOGY

ERA/ PERIODS OF GLOBALIZATION: EARLY MODERN PERIOD, MODERN PERIOD, PREHISTORIC, PRE-
MODERN:

1. The Early Modern Period (1500-1750)

- It is the period between the Enlightenment and the Renaissance. In this period, European
Enlightenment project tried to achieve a universal form of morality and law.

2. The Modern Period (1750-1970)

- Innovations in transportation and communication technology, population explosion, and increase in

migration led to more cultural exchanges and transformation in traditional social patterns.

3. The Prehistoric Period (10000 BCE-3500 BCE)

- In this period due to absence of advanced forms of technology, globalization was severely limited.

4. The Pre-modern Period (3500 BCE- 1500 CE)

- In this period the invention of writing and the wheel were great social and technological boosts that
moved globalization to a new level.

DEFINITION OF ECONOMIC GLOBALIZATION:

This refers to the extensive development of economic relations across the globe as a result of
technology and the enormous flow of capital that has stimulated trade in both sources and goods.

Economic institutions have decisive influence on investment in physical and human capital, technology,
and industrial productions. It is also important for resource distribution.

INTERNATIONAL MONETARY FUND

The International Monetary Fund is an organization that supports economic globalization by facilitating
international cooperation, providing financial assistance, and promoting policies that contribute to
global economic stability and growth.

GLOBAL GOVERNANCE
Global governance or world governance is a product of neo-liberal paradigm shifts in international
political and economic relations. It is a movement towards political integration of transnational actors
aimed at negotiating responses to problems that affect more than one state or region. It tends to
involve institutionalization. Global governance is a tool to identify solutions to problems created by neo-
liberal globalization. Humanitarian crises, military conflicts between and within states, climate change,
and economic volatility pose serious threats to human security in all societies; therefore, a variety of
actors and expertise is necessary to properly frame threats, devise pertinent policy, implement
effectively and evaluate results accurately to alleviate such threats.

Global governance can be thus understood as the sum of laws, norms, policies,and institutions that
define, constitute, and mediate trans-border relations between states, cultures, citizens,
intergovernmental and nongovernmental organizations, and the market.

CHALLENGES OF GLOBAL GOVERNANCE IN THE 21ST GENTURY

Global governance can be understood as the sum of laws,norms, policies, and institutions that define,
constitute, and mediate trans-border relations between states, cultures, citizens, intergovernmental and
nongovernmental organizations, and the market. It is a process which allows interconnectivity across
different borders and sovereign territories.

Global governance governing, without sovereign authority, relationships that transcend national
frontiers. It evolved as one of the most influencing tools for globalization which has led to the
foundation of sustainable development projects around the globe.

TAXES FOR IMPORT/ EXPORT

Taxes for import and export, also known as customs duties or tariffs (Tariffs - these are taxes or duties
paid for a particular class of imports or exports.), are charges imposed by governments on goods that
are imported or exported between countries. These taxes are levied to regulate trade, protect domestic
industries, generate revenue for the government, and promote economic policies.

International Monetary System

The International Monetary System (IMS) refers to a system that establishes rules and standards to
facilitate international trade between nations. It plays a crucial role in reallocating capital and
investments from one country to another. The IMS consists of a global network of government and
financial institutions that determine the exchange rates of different currencies for international trade. It
serves as a governing body that sets rules and regulations for currency exchange among nations.
Silk Road

The Silk Road is an ancient network of trade routes that connected the East and West during the period
of archaic globalization. The Silk Road was not a single road but a complex network of land and sea
routes that stretched across Asia, Europe, and Africa.

Bretton Woods Institutions, United Nations, World Trade Organization

- A new international monetary system called as the Bretton Woods system, the aim of which is to
create a stabilized international currency system and ensure a monetary stability for all the nations.

- United Nations is tasked to promote international cooperation and to create and maintain
international order. It is the largest, most familiar, most internationally represented, and most powerful
intergovernmental organization in the world.

- The World Trade Organization (WTO) deals with the global rules of trade between nations with the
main function of ensuring that trade flows smoothly. WTO viewed as the means by which industrialized
countries can gain access to the markets of developing countries.

DIMENSIONS OF GLOBALIZATION

Globalization is considered a multi-dimensional process involving economic, political, technological,

cultural, religious and ecological dimensions. It suggests a dynamic process of change that results in
either positive or negative development.

* ECONOMIC DIMENSION

- This refers to the extensive development of economic relations across the globe as a result of
technology and the enormous flow of capital that has stimulated trade in both sources and goods.

* POLITICAL DIMENSION

- This refers to an enlargement and strengthening of political interrelations across the globe.

In the development of supra-national structures and associations held together by common concerns
and mutually agreed upon norm, the most obvious is political globalization. On the part of the involved
parties, informal structures which are considered binding, bring together world power centers due to
common interests.

* CULTURAL DIMENSION

- This refers to the increase in the amount of cultural flows across the globe. Cultural interconnections
are at the foundations of contemporary globalization.
Individualism and consumerism which are the dominant cultural characteristics of our age and the drive
for economic success stimulated by the internet and other technological devices circulate much more
easily than they did in earlier period.

Cultural diversity often results hybridization- a constructive interaction process between global and local
characteristics which is often visible in food, music, dance, film, fashion, and language.

* RELIGIOUS DIMENSION

- It is the most important defining element of any civilization and portrayed as a defining element in
future conflicts.

Roman Catholic Teaching of Globalization

•Commitment to universal rights
•Commitment to the social nature of the human person

•Commitment to the common good

•Solidarity
•Preferential option of the poor

• Subsidiary
•Justice
•Integral Humanism

Justice is divided in three categories: Commutative Justice, Distributive Justice, and Social Justice.

*IDEOLOGICAL DIMENSION

-Ideology is a system of widely shared ideas, beliefs, norms and values among a group of people. It is
often used to legitimize certain political interests or to defend dominant power structures.

Globalization is a social process of intensifying global interdependence while globalism is an ideology

that gives the concept of neo-liberal values and meanings to globalization.

Major Ideological Claims of Advocates of Globalism

* Globalization is about the liberalization and global integration of markets.
*Globalization is inevitable and irreversible.
*Nobody is in charge of globalization.
*Globalization benefits everyone.
*Globalization furthers the spread of democracy in the world.

STAGE OF economic integration -- Common Market, Custom Union , . Free Trade Agreements (FTAs),
Economic Union principle of one sovereign state

STAGES OF ECONOMIC INTEGRATION

* Preferential Trade Areas (PTAs) happens when there's an agreement on reducing or eliminating tariff
(tax or duty to be paid on a particular class of imports or exports) barriers on selected goods imported
from other members of countries within the geographical region or areas. Agreement can either be
bilateral (between two countries), or multi-lateral (several countries). Free Trade Areas (FTAs) are
created when two or more countries in a region agree to reduce or eliminate barriers to trade on all
goods coming from other members. The North Atlantic Free Trade Agreement (NAFTA) is an example of
such a free trade area, and includes the USA, Canada, and Mexico (81).

*Free Trade Agreements (FTAs) or Preferential Trade Agreements (PTAs) eliminate import tariffs as
well as import quotas between signatory countries. These agreements can be limited to a few sectors or
can encompass all aspects of international trade. FTAs can also include formal mechanisms to resolve
trade disputes. The North American Free Trade Agreement (NAFTA) is an example of such an
arrangement (82).

Removal of tariff barriers between members, together with the acceptance of a common or unified
external tariff against non-members is involved in the Custom Union. Single payment or duty is made by
countries exporting to customs union. Goods inside the union can move freely with no additional tariffs.
Members shared tariff revenues while a small share is retained by the country that the collects the duty.
Removing internal barriers to trade and requiring participating nations to harmonize their external
policy as well as building a free trade area are put up by customs union.

* One major step towards economic integration is Common Market (CM). All barriers to the mobility of
people, capital and other resources within the area in question, as well as eliminating non-tariff barriers
to trade, such as the regulatory treatment of product standards are removed by CM aside from
containing the provisions of a customs union. The extension of free trade from just tangible goods, to
include all economic resources which means that all barriers are eliminated to allow the free movement
of goods, services, capital, and labor, including removal of tariffs and reduced non-tariff barriers is the
key feature of a common market.

* The trading bloc that has both a common market between members, and a common trade policy
towards non-members, although members are free to pursue independent macro-economic policies is
termed Economic Union. It requires coordinated monetary and fiscal policies as well as labor market,
regional development, transportation and industrial policies. In economic union the use of a common
currency and a unified monetary policy is considered. The best example of Economic union is the
European Union (EU).

As a key stage towards complete integration, the Economic and Monetary Union (EMU) involves a
single economic market, a common trade policy, a single currency and a common monetary policy. It
represents a major step in the integration of EU economies. EMU involves the coordination of economic
and fiscal policies, a common monetary policy and a common currency, the euro. EMU is a means to
provide stability and for stronger, more sustainable and inclusive growth across the euro area and the
EU as a whole for the sake of improving the lives of EU citizens (83).
Complete Economic Integration is the final stage of economic integration in which member states
completely forego independence of both monetary and fiscal policies. States that participate in
complete economic integration have no control of economic policy including economic trade rules.
There is full monetary union where regulations regarding labor and capital are shared between member
states and this includes a single currency. There is also a complete harmonization of fiscal policy which
includes shared regulation of tax and benefit rates (84). Involved in complete economic integration are
single economic market, a common trade policy, a single currency, a common monetary policy, together
with a single fiscal policy, including common tax and benefit rates or the complete harmonization of all
policies, rates, and economic trade rules.

Economic Integration

- Economic integration can be described as a process and a means by which a group of countries strives
to increase their level of welfare (79). It is an arrangement between different regions that often includes
the reduction or elimination of trade barriers, and the coordination of monetary and fiscal policies (80).
Reducing costs for both consumers and producers and increasing trade between the countries involved
in the agreement are the aims of economic integration.

Globalization

- is the process in which people, ideas and goods spread throughout the world, spurring more
interaction and integration between the world's cultures, governments and economies.

Global Corporation

- Global corporation, also known as a "multinational company", is a business that operates in two or
more countries. It expands its operations beyond its domestic market to tap into international markets
and leverage opportunities in different economies.

Market Integration

Market Integration refers to the ease with which two or more markets can trade with each other. It is a
measure of the degree to which prices in different markets move in proportion to each other. When
there is a clear and consistent relationship between prices in different markets, it is said that the
markets are integrated.

Global South—regions
- It refers to the regions of Latin America, Asia, Africa, and Oceania mostly low- income and often
politically or culturally marginalized. It may also be called the "developing World™ such as Africa, Latin
America, and the developing countries in Asia, "developing countries," "less developed countries," and
"less developed regions" including poorer "southern regions of wealthy 'northern countries.

Middle class formation in Southeast Asia

Middle class formation in Southeast Asia was driven by global and regional transnational capitalism
working in alliance with national states while middle class in Japan, South Korea, and Taiwan were
created by developmental states and national capitalism.

The Global North

type of trade policy

*National Trade Policy - This safeguards the best interest of its trade and citizen.

*Bilateral Trace Policy - To regulate the trade and business relations between two nations, this policy is
formed.

*International Trade Policy - This defines the international trade policy under their charter like the
International economic organizations.

type of market integration

*Horizontal Integration - In this type of integration, some marketing agencies combine to form a union
to reduce their effective number and the extent of actual competition in the market.

*Vertical Integration - It occurs when a firm performs more than one activity in the sequence of the
marketing process. It is the linking together of two or more functions in the marketing process within a
single firm or under a single ownership. There are two kinds of vertical integration, forward integration
and backward integration.

*Conglomeration - A combination of agencies or activities not directly related to each other may operate
under a unified management.

state
- According to Max Weber, a German social theorist defines the state as a compulsory political
organization with a centralized government that maintains a monopoly on the legitimate use of force
within a certain territory.

- According to Hedley Bull, a 20th-century international philosopher stated that states are independent
political communities each of which possesses a government and asserts sovereignty in relation to a
particular portion of the earth’s surface and a particular segment of the human population.