SOCS SIR BONG
GLOBALIZATION – a complex phenomenon that occurs at multiple levels /
many process that allow for expansion and intensification ( Manfred
Steger)
- The collapsing of borders; the shrinking of the world
- Process of interactions and integration among
people/companies of the nation
Expansion – refers to both the creation of new social networks and
multiplication of existing connection
Intensification- refers to expansion, stretching and acceleration of these
networks
GLOBALISM- a belief among powerful/privileged that global integration is
beneficial for everyone because it spreads freedom and democracy
GLOBAL AGE – a period of time when there is prevailing sense of
interconnectedness of all human being (albrow, 2012)
TECHNOLOGIES OF GLOBALIZATION
 COMPUTERIZATION
 SATELLITE COMMUNICATION
 FIBER OPTICS AND THE INTERNET
 MINIATURIZATION
 DIGITIZATION
SCAPES OF GLOBALIZATION
 ETHNOSCAPE- global movement of people
 MEDIASCAPE – flow of culture
 TECHNOSCAPE – circulation of mechanical goods and software
 FINANCESCAPE - denotes the global circulation of money
 IDEOSCAPE- realm where political ideas move around
INTERNATIONAL MONETARY SYSTEM
- Refers to the system and rules that govern the use and
exchange of money around the world and between countries
EVOLUTION OF I.M.S
CLASSICAL GOLD STANDARD (1816 – 1914)
- Buying and selling of paper in exchange of gold
- Gold is freely transferable between countries
- Participants: UK, France, Germany and USA
- Created fixed exchange rate system
INTERWAR PERIOD (1915-1944)
- Exchange rate fluctuated
- May attempt to restore the gold standard
- Result of Intl. trade and investment was profoundly detrimental
BRETTON WOODS SYSTEM (1945-1972)
- Purpose is to design a postwar Intl. monetary system
- Goal was exchange rate stability w/out gold standard
- Result was the creation of IMF (International Monetary Fund)
and the World Bank
- it is a dollar based gold exchange standard
THE FLEXIBLE EXCHANGE RATE REGIME (1973 PRESENT)
 gold was abandoned as international reserve asset
CURRENT EXCHANGE RATE SYTEM
FREEFLOAT – 48 countries allowed their market forces to determine
currency value
MANAGED FLOAT- 25 countries combine govt. intervention to set
exchange rate
PEGGED TO ANOTHER CURRENCY- such as US or EURO
NO NATIONAL CURRENCY- some countries do not print their own. They
use same US dollar.
FOREIGN EXCHANGE MARKET – is the mechanism by which the currency
of one country gets converted into currency of another country
-conversion of money is done by the Banks who deal in foreign exchange
FUNTIONS FOREIGN EXCHANGE MARKET
 TRANSFER FUNCTION- transfers purchasing power between
countries involved in transaction. Performed through credit
instruments like bills of foreign exchange, bank drafts,
telephonic transfer.
 CREDIT FUNCTION- provides credit to foreign trades. Credit is
req. in order for the importer take possession of goods, sell and
obtain money.
 HEDGING FUNCTION-when importers and exporters enter into
agreement to sell and buy goods on future date and current
prices and exchange rate, it is called hedging
MARKET INTEGRATION – a situation which separate markets for the same
product become one single market
- Refers to Prices among different location or related goods
follow the same pattern over a long period of time
- Group of prices that often moves proportionally to each other
and relations is very clearly among different materials
- It can be concluded that market integration Is an indicator
GLOBAL INTERSTATE SYSTEM
- Multi state political structure and
- The international or global division of labor Core
Countries(Higher skills, capital intensive production)
- Semi Periphery Countries and Periphery Countries
( Low skills, labor intensive production, extraction of raw
materials)
GLOBAL GOVERNANCE
- WORLD GOVERNANCE- movement towards political
cooperation among transnational actors, aimed at negotiating
responses to problems that affect more than one state or
region
- INSTITUTION OF GLOBAL GOVERNANCE- United Nations,
International criminal court, world Bank
FUNCTIONS OF UNITED NATIONS
1. MAINTAIN PEACE AND SECURITY FOR ALL MEMBER STATES
2. IT HAS PEACEKEEPING FORCE WHICH IS SUPPLIED BY THE
MEMBER STATES
3. AIMS TO PROTECT HUMAN RIGHTS AND HUMANITARIAN
ASSISTANCE
4. PLAYS AN INTEGRAL PART IN SOCIAL AND ECONOMIC
DEVELOPMENT THROUGH DEVELOPMENT PROGRAM
5. ANNUALLY PUBLISHES THE HUMAN DEVELOPMENT INDEX
6. GENERAL ASSEMBLY- OCCUPIES THE CENTRAL POSITION AS
THE CHIEF DELIBERATE, POLICY MAKING, AND
REPRESENTATIVE ORGANS OF U.N