GROUP-1

DELOS REYES, ANGELA

LABUGUEN, ALLIAH
CHAPTER 3 THE PRACTICE OF GLOBALIZATION

 Learning Objectives:
 After studying this chapter, the student will be able to:
1. Identify the waves of globalization and it’s historical backdrop.
2. Discuss the developments of globalization from its earliest period up to the
present.
3. Be familiar with the historical origin and developments of globalization.
4. Appreciate how the process of globalization is affecting countries and
institutions around the world.
The take-off of globalization has made borders and state business systems decline. The advances
in technology, transportation, finance, and communications resulted to the increase of uniform,
standard, and homogenous practices of nations. The world is totally an integrated environment
composed of different forms of interrelated drivers of changes and social developments.

However, globalization as a new social formation, adds color to the endless debates and criticism
of the current mode of state interactions. There are identified losers and winners, some will be
pushed as part of the growth while other might be pulled due to the absence of core ingredients
of the transformation process. The question here, how did globalization started? How did affect
the interrelation of different nations across the globe.

This chapter presents important topics on the historical development of globalization as well as
dimensions of this phenomenon. It will also explain how competition works at a global scale by
using the ideas of world orders.
 3.1 Globalization in Historical Perspectives

There are key events and developments in the history of

globalization from the time it was initially observed and
described as a phenomenon up to the current era of advancement
and modernization. The useful checklist training the phases of
globalization was drawn by Holton (1998), Sholte (2001), and
Lawson (2012). The following chain of events is not of definite,
but it provides a clearer view on the cycle of globalization.
 5 Table 3.1 Timeline of Events
FIRST PHASE (MID 18TH
CENTURY 1890s)
• Development of international
networks
• Beginning of international
fairs
• International relations through
treaties and agreements in
Europe
• Establishment of International
Committee of the Red Cross in
1863
• Significant development in
communication and
transportation
• Development of international
competitions
• First World War
SECOND PHASE (1920s-
1960s)
-Establishment of League of
Nations
-Global effect of Cold War
-Rise of Third World Countries in
international arena
-Increased attention to
humanitarian works and
development aid
-Introduction of global icons and
American consumerism
THIRD PHASE (1960S- PRESENT)
• Establishment of global communication
• Increasing power and influence of
international financial institutions
• Rapid rise of US and expansion of western
investment and multinational firms
• End of Cold War
• Increase in social movement and global
civil society
• Introduction of World Wide Web and
continuous influence of
telecommunications
• Rise of global attention to environmental
concern and snit-globalization campaign
 3.2 Phases of Globalization
For a better grasp on the historical developments of globalization, Thomas Friedman described
the phases of globalization into three periods.
Table 3.2 Thomas Friedman’s Phases of Globalization
GLOBALIZATION 1.0 GLOBALIZATION 2.0 GLOBALIZATION 3.0​
(1492-1800) (1800-1950) (1950-2000)
Period of Mercantilism
Age of Industrialization (rise of Period of Technology and internet
British Economy)
End of World War II Age of Information
Inventions:
Intensification of trade worldwide and development
-Steam engine of Multinational corporations
Age of Pax Brittanica
-Printing press New players and prominent economic actors:
-Railway system -China
Development of Social Systems Formation of Market Integration -ASEAN
and Institutions: and Institutionalizations of major
economic activities in global -European Union
-Government
market -Japan
-Education
Presentation title -South Korea
-Exchange of goods within the
region
 3.3 Three Dimensions of Globalization
• Anthony Giddens Described the globalization as intensification of worldwide social relations.
• The global economic activity is the most obvious face of this phenomenon where economic activities have
immense effect to other global operations such governments, education, and technology.
Table 3.3 Gidden's Three Dimensions of Globalization

World Capitalist economy  Primary Force of Globalization.

 Capitalists’ states are the main engines of global production and distribution of goods and services.
 Capitalists engage in transnational operation maintaining pool of resources such as labor and capital.
 Multinational corporations are very powerful in controlling domestic and foreign market.
 

Nation-state  Sovereignty of slates has been emphasized as a Primary part of independence and autonomy.
system  The concepts of sovereignty in a globalized world is understood as the best form of asserting the existence
and operation of a state in order to be recognized.
 It has been used as a major political unit in international relations.
 Nation-states have the right to make the right to make their own collective objectives.

   
World Millitary  Strengthening military power is the priority of the first world countries as well as the developing and third
world countries.
 Budget allotted by governments to defense and military surged hundred folds with the aim of delivering
world-class defense operation and services to its people.
 US maintains the rank as the world’s most powerful military in terms of military spending (SIPRI, 2017).
 3.4 Three Worlds and World Order
The concepts of First World, Second World, and Third World was Construct pf the cold War era.
There were number of interpretations on the origin of Cold War.
First, the conflict was cause by aggressive behavior and domestic policies of Soviet Union prompting other countries especially the US to react.
Second, the cold war was a result of the US economic system of expansionist-capitalism.
Third, the war was a consequence of security response from the two countries on the power vacuum and threat of central Europe

Table 3.4 Three Worlds

  First World Second World Third World
       
During Cold -War United States Soviet Union Neutral and non-aligned Countries
United Kingdom China
Japan Estonia
Western Lithuania
European Half of Germany
Countries Vietnam
North Korea
Cuba

Description Powerful economies having stable
governments, robust financial
markets, and advanced and modern
infrastructures, low poverty and high
standard of living.
The idea of world of order is
associated with
Role of political and military power
during Cold War.
The communist countries of the
Second World are found to be
trapped between poverty and
prosperity.
Countries are described as less
developing economy or global south.
Most of the countries have
experience colonialism from Western
World.