Globalization 190706113049

THE CONTEMPORARY WORLD SUBJECT
INTRODUCTION:
GLOBALIZATION
BY: CHELDY SYGACO ELUMBA-PABLEO,MPA,JD,LPT
 Globalization is the process by which the world,

previously isolated through physical and
technological distance, becomes increasingly
interconnected.
 It is manifested by the increase in interaction
between people around the world that
involves the sharing of ideas, cultures, goods,
services, economic, political,
ideological, cultural, investment
processes aided by information technology.
environmental and
GLOBALIZATION: A CONTESTED CONCEPT
 Globalization first appeared in the 1940s, but

did not gain widespread traction until the
1990s.
 It is sometimes mistaken for an unstoppable
juggernaut ‘Americanizing’ the world.
 However, a more nuanced understanding of
the interactions between the local, national,
regional, and global. Indiscriminate use of
the word ‘globalization’ is confusing.
GLOBALIZATION: A CONTESTED CONCEPT
 Globalization is a set of social processes

that lead to the social condition of
globality, through the growing
consciousness of global connectivity.
 There is no consensus on exactly what
processes constitute globalization, but
common themes include the creation of
networks, expansion of social relations,
and the acceleration of social
exchange.
Globalization and history: is globalization a new
phenomenon? BY: CHELDY SYGACO ELUMBA-PABLEO,MPA,JD,LPT
 Globalization is commonly thought of as a

new phenomenon, but contact between
diverse individuals is not new.
 It began when prehistoric tribes settled and
were able to outmuscle wandering tribes.
 The premodern period saw technological
advances that allowed trade and
communication to flourish.
Globalization and history: is globalization a new
phenomenon? BY: CHELDY SYGACO ELUMBA-PABLEO,MPA,JD,LPT
 The early modern period saw

the birth of capitalism and regional
markets.
 Revolution
The modernprovide
period massive
saw the advances in
Industrial
technology at the expense of the
environment.
 The contemporary era is an era of
convergence, with people coming together
through deregulated economic and
ICT systems.
3 components of economic globalization
 Academic literature commonly

subdivides globalization into three
major areas:
1. Economic globalization
2. Cultural/social globalization
3. Political globalization
I. Economic globalization
 It refers to the widespread international

movement of goods, capital, services,
technology and information.
 Economic globalization primarily comprises
the globalization of:
1. production 5. Organizational
2. finance 6. regimes
7. institutions
3. markets 8. corporations
4. technology 9. labour
Economic globalization
 The economic globalization is one

most often mentioned in the media.
 It is associated with massive
amounts of financial traded daily on
the different stock markets around
the label “NEW ECONOMY”.
 In order to monitor the economy,

3 economic institutions were created:
1. THE INTERNATIONAL MONITARY FUND

(IMF) --would oversee the
international monetary system;
2. The International Banks for

Reconstruction and Development (IBRD
later named the WORLD BANK (WB) --
would provide loans for European
reconstruction but later expanded its
activities to the developing world;
 The General Agreement on Tariffs and

Trade (GATT, renamed of the WORLD
TRADE ORGANIZATION in 1992) --would
oversee multilateral trade agreements.
 For about 30 years, this system
remained in place and provided
economic stability and prosperity to
Western nations.
The economic dimension of globalization
 In the 1980s neoliberalism liberalized financial

transactions.
 However, this unstable growth led to the Great Financial
Crash, where banks traded toxic assets without
regulation.
 Transnational corporations rival nation-states in economic
power, and have had a profound effect on the structure
and function of the global economy.
 The Washington Consensus was drafted to reform
indebted developing countries, but it has thus far rarely
helped countries develop.
The economic dimension of globalization
 The economic dimension of

globalization’ explores how the
way
people have undertaken economic
production has changed.
 The global economic order emerged
after World War II, when the Bretton
Woods Conference laid the foundations
for the IMF, World Bank, and WTO.
II. CULTURAL GLOBALIZATION
 Cultural Globalization refers to the

rapid transmission of
meanings, and values ideas, and
cultural
products across around the world in
such a way as to extend and
intensify social relations.
CULTURAL GLOBALIZATION
 This process is marked by the common

consumption of mono-cultures that have been
diffused by the Internet, popular culture media,
and international travel, entertainment
transnational marketing of particular brands and
international tourism – that transcends local
cultural traditions and lifestyles, and that shapes
the perceptions, aspirations, tastes and everyday
activities of people wherever they may live in the
world’.
1. MIGRATION is an important aspect of cultural

globalization.
 This process has been going on for several
centuries, with languages, religious beliefs, and
values being spread by military conquest,
missionary work, and trade.
 However, in the last 30 years, the process of
cultural globalization has dramatically
intensified due technological advances in both
transportation and communications technology.
 THE GLOBALIZATION OF FOOD is one of the most

obvious examples of cultural globalization – food
consumption is an important aspect of culture and
most societies around the world have diets that
are unique to them, however the cultural
globalization of food has been promoted by fast food
giants such as McDonald’s, Coca-Cola and Starbucks.
 The spread of these global food corporations has
arguably led to the decline of local diets and
eating traditions.
2. THE GLOBALIZATION OF SPORT is

another fairly obvious example of cultural
globalization – think of all the international
sporting events that take place – most
notably the World Cup and The Olympics,
and Formula 1, which bind millions
together in a shared, truly global, ‘leisure
experience’.
3. CONVERGING GLOBAL CONSUMPTION PATTERNS – today

you can go to pretty much any major city in the world and
share in a similar ‘consumption experience’.
 Also, more and more people in Asia and South-America
are coming to enjoy high-consumption lifestyles like in
the West – car ownership and tourism are both on the
increase globally for example.
 Central to this is the growth of similar styles of shopping
malls, and leisure parks which provide a homogeneous
cultural experience in different regions across the
world.
 HOMOGENEITY comes to a society in a numbers of ways-

ethnically(Japanese), religiously(many Arab nationals),
culturally(Indians), politically(communism) etc.
 Study has shown that the most prominent type of
homogeneity is ethnicity, where everybody share similar
physiological characteristics and cultural behavior .
 Ethnic homogeneity still strong among many aboriginal
groups in USA, Latin countries, China, Japan, South Asia
and Africa.
 FINANCIAL HOMOGENEITY also exists in many

countries. It was prevalent in many communist
countries-this type of homogenous society is in
decline now-a day.
 North Korea is a great example of
homogeneity, extreme
financiallevel,
at another good
example is Scandinavian countries, where the
government make sure that every citizen of their
country enjoy high level of living standards.
 THE GLOBAL VILLAGE/ GLOBAL

CONSCIOUSNESS-- Individuals and
families are now more directly
plugged into news from the
outside world – some of the most
gripping events of the past decade
have unfolded in real time in
front of a global audience.
 According to Giddens this means that more and

more people have a more ‘global outlook’ and
increasingly identify with a global audience – for
example, television reporting of natural disasters in
developing countries result in people in wealthier
countries donating money to charities such as
Oxfam to assist with relief efforts. Giddens
developed the of ‘Cosmopolitanism’
describe concept this to of an
identity. process emerging global
 D ETRADITIONALISATION--In his
classic 1999 text, Runaway World,
Anthony Giddens argues that one
consequence of globalization is
detraditionalisation – where people
question their traditional beliefs
about religion, marriage, and
gender roles and so on.
 GLOBAL RISKS/ GLOBAL RISK CONSCIOUSNESS--Ulrich

Beck (1992) argues that a fundamental feature of
globalization is the development of a global risk
consciousness, which emerges due to shared global
problems which threaten people in multiple countries
 EXAMPLES: • the threat of terrorism,
• international nuclear war
• the threat of global pandemics
• the rise of organized crime funded primarily through
international drug trafficking
• the threat of planetary melt-down due to
global warming.
THE CULTURAL DIMENSION OF
GLOBALIZATION BY: CHELDY SYGACO ELUMBA-PABLEO,MPA,JD,LPT
 The cultural dimension of globalization’

explores the intensification and expansion of
cultural flows across the globe.
 Critics of cultural globalization claim that the
world is being homogenized or
‘Americanized’.
 However, advocates say that globalization
reinvigorates niche cultures instead of
eliminating them.
 The existence of the global

imaginary is linked to the rise of
global media networks.
 networks are owned
These group by transnational
a of
small
corporations, which can affect
journalistic integrity.
 Several different hypotheses exist

about effects of language
the
globalization.
 Some say that it leads to protection
of native tongues.
 On the other hand,
some foresee the rise of a
‘Globish’ language.
III. political globalization
 It refers to the growth of the worldwide

political system, both in size and complexity.
 It includes:
1. national governments,
2. their governmental and
3. intergovernmental organizations
4. government-independent elements of
global civil society such as:
a. international non-governmental organizations
b. social movement organizations.
The political dimension of globalization
 ‘The political dimension of globalization’

looks at political arrangements beyond
the nation-state.
 Traditional politics harboured an ‘us’
and ‘them’ mentality.
 Contemporary globalization has led to a
permeation of those borders.
 The modern nation-state came into being

after the Protestant Reformation,
characterized by centralized government
and self-determination.
 The rise of organizations such as the United
Nations has threatened the nation-state,
according to globalization sceptics.
 However, national governments still hold
significant powers.
 There has been a rise in the number of

supra-territorial institutions, operating
from the local level all the way to the
global level.
 Some commentators ultimately see
global civil a although
critics
society,
question the feasibility of this.
III. political globalization
 One of the key aspects of the political

globalization is the declining
importance of the nation-state and the
rise of other actors on the political
scene.
 The creation and existence of the
United Nations has been called one of
the classic examples of political
globalization.
political globalization
UNITED NATIONS AND ITS ROLE IN GLOBALIZATION
 It is an international organization created on

24th October of 1945 when the UN charter
was signed.
 MAIN OBJECTIVES ARE:
1. to maintain international peace and security and
2. promoting human rights and global development.
political globalization
Member states of the United Nations

 The United Nations member states are

the 193 sovereign states that are
members of the United Nations (UN) and
have equal representation in the UN
General Assembly and 51 founding
countries.
 The UN is the world's largest
intergovernmental organization which is
based in New York (Headquarter).
STRUCTURES: GLOBAL
ECONOMY
I. What is Global Economy?
 The world economy or global

economy is the economy of the
humans of the world,
considered as the international
exchange of goods and services
that is expressed in monetary
units of account.
Global Economy
 Typical EXAMPLES of economic

globalization are the global supply
chains now standard for the
manufacture of many devices,
ranging from cars to smart phones;
the processes surrounding raw
materials, components, and assembly
may take place across multiple
countries.
What is the importance of Global Economy?
 Because of its size and interconnectedness,

developments in the US economy are bound to
have important effects around the world.
 The US has the world’s single largest economy,
accounting for almost a quarter of global GDP
(at market exchange rates), one-fifth of global
FDI, and more than a third of stock market
capitalization.
 It is the most important export destination for
one-fifth of countries around the world.
FOREIGN DIRECT INVESTMENT
Changing Structure:
Global Economy BY: CHELDY SYGACO ELUMBA-PABLEO,MPA,JD,LPT
 Since the end of World War

II, the global economy
its tradehasand steadily financial
increased
enabled openness, partby the
in
Monetary Fund
International
(IMF), the World Bank,
and the General Agreement on Tariffs
and Trade (GATT), now the World Trade
Organization (WTO).
Changing Structure of the Global Economy
 In parallel, colonialism,
with its inherent
constraints on economic
development and its
built-in asymmetries,
collapsed.
 As formal barriers to
trade and capital
flows of declined,
number a
other
combined trends to
growth andaccelerate
structural changes
the
in the developing economies.
THEY INCLUDED:
1. advances in transportation
and communications technology
2. management innovation in
multinational companies
3. a process of about doing
business
learning in multiple
and
environments diverse
4. and the integration of
multinational supply chains.
 The shape of global supply

chains is constantly shifting.
 Countries enter and engage
with the global economy at
different times and expand
at different rates.
 The early high-growth economies—

Japan, South Korea, and Taiwan—
initially exported labor-intensive
products, then graduated to more
capital-intensive products such as
automobiles and motorcycles, and then
to human capital intensive activities
such as design and technology
development.
Relating to us…
DO CHANGING STRUCTURE
OF THE GLOBAL
ECONOMY AFFECT THE
PHILIPPINES?
What kind of economy is the Philippines?
 The Philippines has a mixed

economic system which includes a
freedom, combined with centralized
variety of private
economic planning and government
regulation.
 Philippines is a member of the Asia-
Pacific Economic Cooperation (APEC) and
the Association of Southeast Asian Nations
(ASEAN).
PHILIPPINES:
COMPETING IN GLOBAL ECONOMY BY: CHELDY SYGACO ELUMBA-PABLEO,MPA,JD,LPT
 The economy of the Philippines is the world's 34th

largest economy by nominal GDP according to the
2017 estimate of the International Monetary Fund's
statistics, it is the 13th largest economy in Asia, and
the 3rd largest economy in the ASEAN after Indonesia
and Thailand.
 The Philippines is one of the emerging markets and is
the sixth richest in Southeast Asia by GDP per capita
values, after the regional countries of Singapore,
Brunei, Malaysia, Thailand and Indonesia.
PHILIPPINES:
NEW INDUSTIALIZED COUNTRY
 The Philippines is primarily considered a

newly industrialized country which has an
economy in transition , from one based on
agriculture to one based more on services and
manufacturing.
 As of 2017, GDP by purchasing

power parity was estimated to be at $1.980
trillion.
PHILIPPINES:
a tiger cub in economic globalization
 Primary exports include semiconductors and

electronic products, transport equipment, garments,
copper products, petroleum products, coconut oil,
and fruits.
 Major trading partners include Japan, China, the
United States, Singapore, South Korea, the
Netherlands, Hong Kong, Germany, Taiwan and
Thailand.
 The Philippines has been named as one of the Tiger
Cub Economies together with Indonesia, and
Thailand.
PHILIPPINES:
ECONOMIC TRANSITION
World Bank Forecasts, Selected Asian Economies
World Bank: Global Economy to Recover in 2017, Led by India,

Philippines, China and Vietnam
STRUCTURES: MARKET INTEGRATION
What is global market integration?
 Global market integration means that

price differences between countries
are eliminated as all markets become
one.
 One way to the progress of
globalization is to look at trends how
prices converge or become similar
across countries.
The law of one price
 states that the prices of identical security,

commodities or asset traded anywhere that are
exchanged in two or more markets must be the
same regardless of location and currency.
 In an efficient market, there must be only one price
for commodities regardless of where they are
traded. Identical goods must have identical
prices.
 For EXAMPLE, an ounce of gold must have the same
price expressed in terms of dollars in London as it
does in Tokyo.
The law of one price
 The law of one price is a variation of

Purchasing Power Parity that relates to a single
commodity as opposed to a basket of goods.
 This theory postulates that the difference in
prices for identical commodities in two
countries is due to the foreign exchange (FX)
rate between the two countries.
MARKET INTEGRATION in 21st century
 Globalization—the integration of people

with world markets—is perhaps the most
significant and pervasive economic
development of the late 20th and early
21st Centuries.
 It is the subject of a small but growing
body of empirical economic research at
the national and multi-national levels.
MARKET INTEGRATION
 In economics research, globalization

means trade integration.
 As market liberalization and trade
integration climb to the top of the
economic policy agenda in many
countries, development economists
increasingly focus their attention on
market imperfections that may inhibit
trade and create welfare losses.
MARKET INTEGRATION
 As economic integration unfolds,

producers become inserted directly into
global markets on the output side,
through production of exports, and/or on
the input side, through imported
intermediate inputs, technologies,
factors. or
MARKET INTEGRATION:
Migratio n BY : CHELDY SYGACO ELUMBA-
 Migration is the principal mechanism

PABLEO,MPA,JD,LPT
by which households in less

developed countries (LDCs),
especially in rural areas, become
directly inserted into the
economy global
.
MARKET INTEGRATION:
Migration BY: CHELDY SYGACO ELUMBA-PABLEO,MPA,JD,LPT
 Globalization is not internationalization,

but the effective erasure of national
boundaries-opening the way not only to
free mobility of capital and goods but
also, in effect, to free movement (or
uncontrolled migration) of vast labor
tools from regions of rapid population
growth and the impacts on national
economies could be tragic.

MARKET INTEGRATION:
MICROECONOMICS BY: CHELDY SYGACO ELUMBA-PABLEO,MPA,JD,LPT
 “MICROECONOMICS OF GLOBALIZATION”
refers also to the myriad ways in which
economic actors also may become
inserted into the global economy
indirectly, through their relations with
other economic agents within local,
regional, and national markets.
MARKET INTEGRATION:
MICROECONOMICS BY: CHELDY SYGACO ELUMBA-PABLEO,MPA,JD,LPT
 It is the study of the economic

behavior of individuals, households
and firms.
 Where macroeconomics looks at the
big picture the economy,
of looks at the
microeconomics
individual behaviors th drive
economic processes. at
Examples of microeconomics
1. Demand 9. Consumer Choice

2. Supply
10. Consumer Confidence
3. Prices
4. Elasticity 11. Business Confidence
5. Opportunity Cost 12. Information Economics

6. Labor Economics
13. Welfare Economics
7. Competition
8. Competitive Advantage 14. Productivity
microeconomics
Demand BY: CHELDY SYGACO ELUMBA-PABLEO,MPA,JD,LPT
 How demand for goods

is influenced by income,
preferences, prices and
other factors such as
expectations.
microeconomics
Supply BY: CHELDY SYGACO ELUMBA-PABLEO,MPA,JD,LPT
 How producers decide

Law of Supply and Demand
to enter markets, scale
production and exit
markets.
Demand
Demand
falls,
rises,
Supply
Supply
Rises
falls
supply
microeconomics
Prices BY: CHELDY SYGACO ELUMBA-PABLEO,MPA,JD,LPT
 How individuals, households and firms

react to prices and influence prices
with their supply and demand.
 For EXAMPLE, the observation that
some customary prices appear to be
sticky in that consumers resist buying
above a particular historically
established price.
microeconomics
Elasticit y
B Y: CHELDY SYGACO ELUMBA-
 Elasticity is how PABLEO,MPA,JD,LPT

supply and
demand reacts to change.
 For EXAMPLE, a household that
demands less of a good when
the price increases due to the
availability of substitutes.
microeconomics
Opportunity Cost BY: CHELDY SYGACO ELUMBA-PABLEO,MPA,JD,LPT
 The tradeoffs that individuals and firms make

to manage constrained resources such as time,
money, capital and land.
 EXAMPLE, you spend time and money going to

a movie, you cannot spend that time at home
reading a book, and you can't spend the
money on something else. Time is precious
microeconomics
Labor EconomicsBY: CHELDY SYGACO ELUMBA-PABLEO,MPA,JD,LPT
humans use to produce goods and services

 Modeling the supply and demand for
labor.
 focus on human capital (referring to
the skills that workers possess, not
necessarily their actual work).
 For EXAMPLE, looking at how
expectations for economic growth
impact the labour participation
rate.
microeconomics
CompetitionBY: CHELDY SYGACO ELUMBA-PABLEO,MPA,JD,LPT
 Modeling competition in markets.

 Three types of competition
1) Direct competitors
2) Indirect competitor
3) Phantom competitors
 For EXAMPLE, the use

of game theory to model
between
a competitors.
price war
microeconomics
Competitive BY: CHELDY SYGACO ELUMBA-PABLEO,MPA,JD,LPT
 CompetitiveAdvantage
advantage is the ability of certain
firms to outcompete all competition in a
particular area.
 3 Tips to Determine Your Competitive
Advantage
1. Price
2. Product
3. Customer experience
 For EXAMPLE, a sporting goods company with
superior brand recognition and a positive brand
image that can charge premium prices and still
enjoy high demand for its products.
microeconomics
Consumer Choice BY: CHELDY SYGACO ELUMBA-PABLEO,MPA,JD,LPT
 How needs, perceptions and information shape

consumer choices. IT’S YOUR
 2 influences on a person’s consumption choice:

1. their income
2. prices of the goods
 For EXAMPLE, the idea that consumers
maximize their expected utility of purchases
meaning that they buy the things they expect
to be most useful to them.
microeconomics
Consumer Confidence BY: CHELDY SYGACO ELUMBA-PABLEO,MPA,JD,LPT
 How consumer expectations for the future

influence spending, saving, investment and
labor participation.
 Is an economic indicator that measures the
degree of optimism that consumers feel
about the overall state of the economy and
their personal financial situation.
 EXAMPLE, When consumer confidence is
high, consumers make more purchases.
microeconomics
Business Confidence
 How producer expectations for the future

influence hiring, capital investment and
supply.
 Business confidence index (BCI) -provides
information on future
developments, based upon opinion
developments surveys on orders and
in production,
stocks of finished goods in the industry
sector.
3 basic kinds of market integration Horizontal
integration
 This occurs when a firm or agency gains

control of other firms or agencies
performing similar marketing functions
at the same level in the marketing
sequence.
 This type of integration sometimes
combine agencies to form a union with
a view to reduce their effective number
and the extent of actual competition in
the market.
EXAMPLE OF HORIZONTAL INTEGRATION
Two or more companies produce the same goods or services

It is also known as horizontal merger
EFFECTS OF HORIZONTAL INTEGRATION
 B u y ing out competitor in

a time bound way to
reduce competition.
 Gaining larger share of the
market and higher profits
 Attaining economies of scale
 Specializing in trade
ADVANTAGE OF HORIZONTAL INTEFRATION
1. Lower cost
2. Higher efficiency
3. Increased differentiation
4. Increased market power
5. Reduced competition
6. Economics of scale
7. Economic of scopes
8. International trade
DISADVANTAGE OF HORIZONTAL
INTEFRATIO
1. Destroyed value
2. Legal repercussions
3. Reduced flexibility
3 basic kinds of market integration VIRTICAL
INTEGRATIO BY: CHELDY SYGACO ELUMBA-PABLEO,MPA,JD,LPT
N
 Occurs when a firm performs more than one
activity in the sequence of the market process.
 Linking together of 2 or more functions in the
marketing process within a single firm or under
a single ownership.
 Makes possible to exercise control over both
quality and quantity of the product from the
beginning of the production process until the
products is ready for the consumer.
 Reduces the number of middle men in the
marketing channel.
EXAMPLE OF VERTICAL INTEGRATION
diagram BY: CHELDY SYGACO ELUMBA-PABLEO,MPA,JD,LPT
End product--customer
Raw material
 Apple Inc. is one of the best-known

companies for perfecting the art of
vertical integration.
 The company manufactures its custom A-
series chips for its iPhones and iPads. It
also manufactures its custom touch ID
fingerprint sensor.
 The company has also integrated forward
as much as backward.
VIRTICAL INTEGRATION
I. FORWARD INTEGRATION
 a firm assumes another
function of marketing which is
closer to the consumption
function.
 EXAMPLE: Wholesaler
assuming the function of
retailing.
diagram
II. BACKWARD INTEGRATION

 This involves ownership or a
combination of sources of supply.
 EXAMPLE: when a processing firm
assumes the function of
assembling/purchasing the product
from the villages.
III. BALANCED VERTICAL

INTEGRATION
 The third type of vertical
integration is a combination of
the backward and the
forward vertical integration
3 basic kinds of market integration
CONGLOMERATION BY: CHELDY SYGACO ELUMBA-PABLEO,MPA,JD,LPT
 A combination of agencies or activities not directly

related to each other may, when it operates under
a unified management.
 A process whereby a business acquires a substantial
number of other unrelated businesses in order to
form a large and highly diversified corporation.
 EXAMPLE: the merger between the Walt Disney
Company and the American Broadcasting Company.
Because a conglomerate merger is one between
two strategically unrelated firms, it is unlikely that
the economic benefits will be generated for the
target or the bidder.
EXAMPLE OF conglomerate INTEGRATION
diagram
REASONS FOR THEMARKET INTEGRATION
 To remove transaction cost

 Foster competition
 Provide better signals for optimal
generation and consumption
decisions
 Improve security of supply
GLOBAL INTERSTATE SYSTEM
 The modern world-system is now a

global economy with a global
political system (the modern
interstate system).
 Refers to the relationship between
different state union.
 It also includes all the cultural
aspects and interaction networks of
the human population.
IMPORTANCE OF GLOBAL INTERSTATE
SYSTEM
 A hegemon is a core state

that has a significantly
greater amount of
economic power than any
other state, and that takes
on the political role of
system leader.
GLOBAL INTERSTATE SYSTEM:
The Development of World-Systems
 The world-systems perspective emerged

during the world revolution of 1968 and the
anti-war movement that produced a
generation of scholars who saw the peoples
of Global South (then called the “Third
World”) as more than an underdeveloped
backwater.
 It became widely understood that a global
power structure existed and that the people
of the non-core had been active participants
in their own liberation.

 The history of colonialism and decolonization

were seen to have importantly shaped the
structures and institutions of the whole global
system.
 A more profound awareness of Eurocentrism was
accompanied by the realization that most
national histories had been written as if each
country were on the moon.
 The nation state as an inviolate, pristine unit of
analysis was now seen to be an inadequate
model for the sociology of development.
The World-Systems Theory
 World-systems theory is a macro-scale

approach to analyzing the world
history of the mankind and social
changes in different countries.
 The definition of the theory refers to
the division of labor, be it inter-
regionally or transnationally.
 Currently, the theory divides the world
into the core, semi-periphery and
periphery countries
 World-systems are whole systems

of interacting polities and
settlements.
 Systemness means that these
polities and are
settlements with one another in
interacting
important ways – interactions are
two-way, necessary, structured,
regularized and reproductive.
Core nations
 Core nations appear to be powerful, wealthy

and highly independent of outside control.
 They are able to deal with bureaucracies
effectively; they have powerful militaries
and can boast with strong economies.
 Due to resources that are available to them
(mainly intellectual), they are able to be at
the forefront of technological progress and
have a significant influence on less developed
non-core nations.
SEMI-PERIPHERAL NATIONS
 These regions have a less developed

economy and are not dominant in the
international trade.
 In terms of their influence on the world
economies, they end up midway between
the core and periphery countries.
 However, they strive to get into a dominant
position of the core nation, and it was
proved historically that it is possible to
gain major influence in the world and
become a core country.
Peripheral nations
 These are the nations that are the least

economically developed.
 One of the main reasons for their peripheral
status is the high percentage of
uneducated people who can mainly provide
cheap unskilled labor to the core nations.
 There is a very high level of social inequality,
together with a relatively weak government
which is unable to control country’s
economic activity and the extensive
influence of the core nations.
CONCEPT OF GLOBAL GOVERNANCE
 Global governance or world

governance is a movement
towards political cooperation
among transnational actors,
aimed at negotiating responses to
problems that affect more than
one state or region.
ROLE OF GLOBAL GOVERNANCE
 Trade,climate change and

the role of values in global
governance.
 The emerging field
of global governance
breakthroughs, as well has
as failures,
produced
aimed a
at managing number
global
of
through the voluntary and problems
cooperation of a diverse ad hoc
international actors. range of
IS THERE A NEED FOR GLOBAL
GOVERNANCE?
 Global governance is necessary because

humanity increasingly faces both
problems and opportunities that are
global in scale.
 Today, transnational problems such as
violence and pandemics routinely reach
across borders, affecting us all.
 T he most important challenge for
humanity to overcome is that of
existential risks.
IS GLOBAL GOVERNANCE MULTI FACETED?
 Global Governance aims

prepare professionals to
to
global challenges that require
specific legal and economic face
competencies, as well as a wide
range of technical knowledge
and skills to manage cultural
mediations.
 This is why global governance is
multi-faceted.
What are the forms of global governance?
 Rosenau discusses these six

types of global governance.
 They are
1. top-down governance,
2. bottom-up governance,
3. market governance,
4. network governance,
5. side-by-side governance
6. complex web governance.
TOP-DOWN GOVERNANCE
 A top-down approach to governance

presents a clear divide between top-level
policy formulation and the subsequent
implementation of these preset goals by
administrators and service providers.
 The process of enacting policy is viewed
as an implementation chain where links
must be forged between various
agencies.
bottom-up governance
 The bottom-up implementation approach

initiates with the target groups and
service deliverers, because they find that
the target groups are the actual
implementors of policy.
 The top-down implementation approach is
a clear-cut system of command and
control—from the government to the
project, which concerns the people.
bottom-up governance
DIAGRAM
MARKET GOVERNANCE
 Market governance mechanisms (MGMs)

are formal, or informal rules, that
have been consciously designed
change the behaviour to
economic actors. of
 This includes actors various
individuals, businesses, organisations
and governments - in turn
such as
encourage
who sustainable development.
MARKET GOVERNANCE DIAGRAM
network governance
 Network governance is "interfirm

coordination” that is characterized
by organic or informal social
system, in contrast to bureaucratic
structures within firms and formal
contractual relationships between
them.
network governance DIAGRAM
COMPLEX Web governance
 Web governance is the process of

maintaining and managing an
online presence in an organized
way.
 The idea is to
standards set certain for your
website
hold yourself to them. and
COMPLEX Web governance
 That can include both your own

organization’s standards and external
regulations or compliance standards,
such as WCAG 2.1 web accessibility
standards.
 The ultimate goal is to provide the best
user experience possible for your
website visitors by ensuring
quality, consistency, accessibility,
searchability, and more.
THANK YOU FOR READING!
CHELDHAY
E

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Globalization 190706113049

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THE CONTEMPORARY WORLD SUBJECT

 Globalization is the process by which the world,

 Globalization first appeared in the 1940s, but

 Globalization is a set of social processes

 Globalization is commonly thought of as a

 The early modern period saw

 Academic literature commonly

 It refers to the widespread international

 The economic globalization is one

 In order to monitor the economy,

1. THE INTERNATIONAL MONITARY FUND

2. The International Banks for

 The General Agreement on Tariffs and

 In the 1980s neoliberalism liberalized financial

 The economic dimension of

 Cultural Globalization refers to the

 This process is marked by the common

1. MIGRATION is an important aspect of cultural

 THE GLOBALIZATION OF FOOD is one of the most

2. THE GLOBALIZATION OF SPORT is

3. CONVERGING GLOBAL CONSUMPTION PATTERNS – today

 HOMOGENEITY comes to a society in a numbers of ways-

 FINANCIAL HOMOGENEITY also exists in many

 THE GLOBAL VILLAGE/ GLOBAL

 According to Giddens this means that more and

 GLOBAL RISKS/ GLOBAL RISK CONSCIOUSNESS--Ulrich

 The cultural dimension of globalization’

 The existence of the global

 Several different hypotheses exist

 It refers to the growth of the worldwide

 ‘The political dimension of globalization’

 The modern nation-state came into being

 There has been a rise in the number of

 One of the key aspects of the political

 It is an international organization created on

Member states of the United Nations

 The United Nations member states are

 The world economy or global

 Typical EXAMPLES of economic

 Because of its size and interconnectedness,

 Since the end of World War

 The shape of global supply

 The early high-growth economies—

 The Philippines has a mixed

 The economy of the Philippines is the world's 34th

 The Philippines is primarily considered a

 As of 2017, GDP by purchasing

 Primary exports include semiconductors and

World Bank: Global Economy to Recover in 2017, Led by India,

 Global market integration means that

 states that the prices of identical security,

 The law of one price is a variation of

 Globalization—the integration of people

 In economics research, globalization

 As economic integration unfolds,

Migratio n BY : CHELDY SYGACO ELUMBA-

 Migration is the principal mechanism

by which households in less

 Globalization is not internationalization,

 It is the study of the economic

1. Demand 9. Consumer Choice

5. Opportunity Cost 12. Information Economics

 How demand for goods