Globalization
Arthur MacEwan
- interconnectedness of people around the world
(extending connections to people around the world)
- results to progress or great trauma and suffering.
Stages of Globalization
1. Colonization
- start of globalization (when Europeans started to
colonized other countries to extend their authority)
Ex: Polo y Servicio “Free Labor”: ( Spanish coloni.)
2. Industrialization/ Industrial Revolution
- production of goods from home to factories.
- prevalence/ improvement of technology.
3. Free Trade
- beginning of modern globalization
- exchange of products between countries under a
policy agreement.
Jim Dator
- it’s not just about capitalism/ free trade but also
the factors and forces that are barely hindered/
totally unhindered by the boundaries/ policies of
the state.
- it is everything that is happening right now.
Walter Anderson
- reiterated Dator’s statement: everything that is
happening right now are due to technological
advances and global forces (economic, political,
cultural, biological)
Peterson Institute for International economics
- growing interdependence of nations.
Global Economy
Economics
- concerned with the production, distribution and
consumption of goods and services.
- how people make choices to allocate resources.
Categories of Economics
Microeconomics: studies individuals and business
decisions.
Macroeconomics: decisions made by countries and
governments.
Global Economy (“World/ Worldwide Economy)
- interconnected worldwide economic activities that
take place between multiple countries (activities
can have either +/- impact on the countries
involved
- system of trade and industry across the world that
has emerged due to globalization
- the way countries are so interdependent that
they all seem like parts of one whole.
How countries participate in global economy:
• Economic Integration: an agreement among
nations to reduce or eliminate trade barriers and
agree on fiscal policies.
Ex: Tariff
Benefit of GE/ Economic Integration
• Free Trade: exchange of products bet. countries.
It allows countries to specialize in the production of
goods they have a comparative advantage of.
• Movement of labor: increased migration of labor
force is advantageous for the recipient country and
workers. If a country is going through a phase of
unemployment, workers can look for jobs in other
countries; Helps in reducing geographical
inequality.
• Increased economies of scale: the specialization
of goods production has led to advantageous econc.
factors: lower ave. costs and prices for customers.
Disadvantages of Economic Integration
• Unemployment/ Job Loss: Trade can lead to over-
specialization, with workers at risk of losing their
jobs when world demand fall or when goods for
domestic consumption can be produced more
cheaply abroad.
• Erosion of nat. sovereignty: members of econc.
unions are required to adhere to rules on trade,
monetary policy, and fiscal policies established by
an unelected external policymaking body.
Ex: Brexit – triggered by wave of migration that
strained public services.
Story of Global Economy
•Birth of Capitalism : commerce grew as the power
of the vassals of the feudal system declined being
replaced by merchants and incipient capitalist
* Capitalism: private individuals/ businesses own
capital goods. Its purest form is free market/
laissez-faire; Trade
• Rise of strong nation states (16th-19th cent.):
created conditions conducive to capitalism
Ex: From Empires to Nation-states
• 20th Cent.: global econ. was in turmoil, the world
was ravaged by WWs (I and II). Tech. did not just
contribute to trade but also to warfare and cause
devastating effects.
• Post World War II: creation of 3 orgs, with each
org. playing a role in the smooth functioning of GE.
1. The International Monetary Fund (IMF)
- created to administer the int. monetary system to
maintain a fixed exchange rate system.
2. International Bank for Reconstruction and
Development (IBRD/ “World Bank”)
-orig. mandate was to rebuild war torn econs. of
Europe and Asia.
- It has evolved into the world’s most influential
lender of foreign aid to developing nations.
Current 3 Best Known Financial Insts.
•World Bank
•International Monetary Fund
• World Trade Organization
Factors driving Global Economic Integration
1. Tech. : Improvements in tech. of transpo. and
com. have reduced the costs of transporting goods,
services, and factors of production and of
communicating economically useful knowledge and
tech.
2. Trade: the tastes of individuals and societies have
generally, but universally, favored taking advantage
of the opportunities provided by declining costs of
transpo. and com. through increasing econc. integ.
3. Policies: public policies have significantly
influenced the character and pace of econc. integ.
Who controls Global Economy?
- Governments do hold power over countries’
economies but it is the big banks and large
corporations that control and essentially fund these
governments.
- the Transnational/ Multinational Corp. control
much of the world’s investment capital, tech, and
access to international markets.
Philippines’ Trade Agreements
•Philippines—Japan Economic Partnership
Agreement (PJEPA in 20018)
- it is the PH’ only bilateral free trade agreement,
covering, among others, trade in goods and
services, investments, movement of natural
persons, intellectual property, and customs
procedures, improvement of the business
environment, and government procurement.
•Philippines—European Free Trade Association
Free Trade Agreement (EFTA in 2016)
- EFTA members: PH, Iceland, Liechtenstein,
Norway, and Switzerland
- covers trade in goods and services, investments,
competition, intellectual property, gov’t
procurement, and trade and sustainable
development.
•ASEAN
- preferential trade agreements with China, Hong
Kong, India, Japan, South Korea, Australia and New
Zealand.

Political dimension of Globalization Elements of State:

Politics
Aristotle: study of the affairs of the state
- everyone is a political animal.
*State: a community of persons permanently
occupying a definite portion of territory,
independent from external control, and possessing
an organized government to which the great body
of inhabitant renders habitual obedience (Lazo,
2013, p.21)
State: about everything
Sovereignty: power/authority
2 Types of Sovereignty:
*Internal Sovereignty: capacity/power of the state
to enforce obedience on its subjects/people.
*External sovereignty: independence from external
control
Harold Laswell: politics is who gets what, when, and
how.
Hans Margenthau: struggle for power (Poitics
Among Nations)
*Power: man’s control over the minds and actions
of other men. (Kindleberger, 1970)
*Power: the ability of a person/ group to influence
another person/group—a person has influenced
another if the second person’s opinions, behaviors,
or perspectives have changed as a result of their
interaction. Power is the ability to get things done
the way one wants them to be done.
(Saravanukamar, 2019)
Ricardo Lazo: middle ground that aims to unionize
and harmonize clashing concerns in achieving a
consensus.
- negotiation
Conclusion
Politics is the middle ground for the participants-
people/government- on the struggle for power that
happens in the state.
Political Globalization
- when politics transcend national borders
- intensification and expansion of political
interrelations across the globe (Steger, 2013)
- is most visible in the rise of supraterritorial
institutions and associations held together by
common norms and interests.
- these institutions can be in municipal, regional, or
global.
*Municipal Level
▪ WHO Association of Major Metropolises: deals
with common local issues across national borders.
*Regional level
▪ European Union
▪ ASEAN
*Global level
▪ United Nations (UN)
(There is no world government)
Global Governance (WHO, 2015)
- the way in which global affairs are managed. As
there is no global government, global governance
typically involves a range of actors including states,
as well as regional and international organizations.
- it is thought to be an international process of
consensus-forming which generates guidelines and
agreements that affect national governments and
international corporations.
Ex of consensus: WHO policies on health issues
Global Governance (Finkelstein, 1995)
- arena for globalization
- any purposeful activity intended to control/
influence someone else that either occurs in the
arena occupied by nations or, occurring at other
levels, projects influence into that arena.
- is governing-without sovereign authority-
relationships that transcend national frontiers. It is
doing internationally what governments do at
home.
- The emerging structure of global governance
shaped by ‘global civil society’, a realm populated
by thousands of voluntary, non-government
associations of worldwide reach.
-International NGOs like Doctors Without Borders
or Greenpeace represents millions of ordinary
citizens who are prepared to challenge political and
economic decisions made by nation-states and
intergovernmental orgs.
Ex: Doctors Without Borders, Greenpeace, Global
Partnership for the prevention of Armed Conflicts
Approaches to the role of the state in globalization
Hyperglobalist perspective
- pronouncing the rise of a ‘borderless world’
- seek to convince the public that globalization
inevitably involves the decline of bounded territory
as a meaningful concept for understanding political
and social change.
- they argue that politics has been rendered almost
powerless by an unstoppable techno-economic
juggernaut that will crush all governmental
attempts to reintroduce restrictive policies and
regulations
Skeptic perspective
- the group of globalization sceptics disagrees,
highlighting instead the central role of politics in
unleashing the forces of globalization, especially
through the successful mobilization of political
power.
- the rapid expansion of global economics activity
can be reduced neither to a natural law of the
market nor to the development of computer
technology. Rather, it originated with political
decisions to lift international restrictions.
Chicken Egg problem (Steger, 2013)
- Economic forms of interdependence are set into
motion by political decisions, but these decisions
are nonetheless made in particular economic
contexts. The economic and political aspects of
globalization are profoundly interconnected.
Conclusion (Steger, 2013)
- there is no question that recent econc.
developments such as trade liberalization and
deregulation have significantly constrained the set
of political options open to states, global markets
frequently undermine the capacity of governments
to set independent national policy objectives and
impose their own domestic standards. Hence, we
ought to acknowledge the decline of the nation-
state as a sovereign entity.
- Such a a concession does not necessarily mean
that nation-states have become impotent
bystanders to the workings of global forces.
Governments can still take measures to make their
economies more or less attractive to global
investors.
- Nation-states have retained control over
education, infrastructure, and, most importantly,
population movements. Indeed, immigration
control, together with population registration and
monitoring, has often been cited as the most
notable exception to the general trend toward
global integration.
- Overall, then, we ought to reject premature
pronouncements of the impending demise of the
nation-state while acknowledging its increasing
difficulties in performing some of its traditional
function.
GLOBALIZATION AND CULTURE
Culture
- way of life shared by people in a place or time
(Webster)
- encompasses the social behavior and norms found
in huma societies, knowledge,beliefs, arts, laws,
customs, capabilities, and habits of the individuals
in these groups (Tylor, 1871)
- consists of the values, beliefs, systems of
language, communication, and practices that
people share in common and that can be used to
define them as a collective (Cole, 2019)
Filipino Culture
1. Filipinos are resilient
2. Filipinos take pride in their families
3. Filipinos are very religious
4. Filipinos are very respectful
5. Filipinos help one another
6. Pakikisama and Utang na Loob
7. Hospitable
How did globalization affect the Filipino culture?
1. According to Renato Constantino – Synthetic
Culture
2. According to James Fallows – Damaged Culture
Spanish
- Filipino racial inferiority (native indios are
discouraged to learn Spanish language and refusing
to consecrate them as priests)
- tucked-in shirts (forbidden to wear tucked-in shirts
—barong tagalog worn untucked)
- religion is a matter of submission to doctrine and
authority, rather than an independent thought or
gentleness to strangers in daily life.
- success meant as landed, idle, non-
entrepreneurial or commercial wealth (giving of
haciendas for royal favorites)
American
- Mindless Consumerism (US “gave” the PH to the
Filipinos; America is the center and they are the
periphery)
- English as a medium of instruction (American
culture are superior and as the model par
excellence for PH society)