GC World Module

HOLY INFANT COLLEGE
Tacloban City
LEARNING MODULE
First Year
GC World
(Contemporary World)
BSN, BSM & BSRT

SECOND SEMESTER
SY 2020-2021
LEARNING COMPETENCIES
This GC World Module contains 4 main topics and activities are provided on each topic for the
learner to have a better grasp of the course and be able to develop the following:
A. Competencies
1. Distinguish different interpretation of and approach to globalization
2. Describe the emergence of global economic, political, social, and cultural systems
3. Analyze the various contemporary drivers of globalization
4. Understand the issues confronting the nation-state
5. Assess the effects of globalization on different social units and their responses
B. Skills
1. Analyze contemporary news events in the context of globalization
2. Analyze global issues in relation to Filipinos and the Philippines
3. Write a research paper with proper citation on a topic related to globalization
C. Values
1. Articulate personal positions on various global issues
2. Identify the ethical implications of global citizenship
Table of Contents:
I. Introduction
II. Lesson 1: Defining Globalization
a. Focus
b. Pre-assessment
c. Exploring Activities
d. Firming up/Analysis
e. Deepening/Abstraction
f. Demonstration/Application
g. Reflection
III. Lesson 2: The Structures of Globalization
A. The Global Economy
Focus
Exploring Activities
Firming up/Analysis
Deepening/Abstraction
Demonstration/Application
Reflection
B. Market Integration
Focus
Firming up/Analysis
Reflection
C. The Global Interstate System
Focus
Firming up/Analysis
Reflection
D. Contemporary Global Governance
Focus
Firming up/Analysis
Reflection
IV. LESSON 3: GLOBAL POPULATION & MOBILITY
A. The Global City
Focus
Firming up/Analysis
Reflection
B. Global Demography
Focus
Firming up/Analysis
Reflection
V. LESSON 4: TOWARDS SUSTAINABLE WORLD
A. SUSTAINABLE DEVELOPMENT
Focus
Firming up/Analysis
Reflection
VI. LESSON 5: CONCLUSION
A. GLOBAL CITIZENSHIP
Focus
Firming up/Analysis
Reflection
VII. Glossary
VIII. References
Prepared by: Elena C. Bernabe, MPM, DM (CAR)

I. INTRODUCTION:
GC World
This course introduces students to the contemporary world by examining the multifaceted
phenomenon of globalization. Using the various disciplines of the social sciences. It
examines the economic, social, political, technological and other transformations that have
created an increasing awareness of the interconnectedness of peoples and places around
the globe. To this end, the course provides an overview of the various debates in global
governance, development and sustainability. Beyond exposing the student to the world
outside the Philippines, it seeks to inculcate a sense of global citizenship and global ethical
responsibility.
Lesson 1: DEFINING GLOBALIZATION
Focus:
At the end of the lesson, the students should be able to:
• Define globalization
• Differentiate the competing conceptions of globalization
• Identify the underlying philosophies of the varying definitions of globalization
• Agree on a working definition of globalization for the course
Pre-assessment: (Answer the following questions):

1. What late twentieth-century trends, led people to create the term “globalization”?
2. What are some historical trends that accelerated globalization before the late twentieth
century?
3. What are some impacts of globalization in terms of migration and economics?
4. What are some positive impacts of globalization?
5. What are some negative impacts of globalization?
Exploring Activities:
Based on the overview, make a personal concept map about globalization and write your
personal definition.
Firming up/Analysis:
• With your personal concept map, you were able to associate ideas with globalization and
make your own definition of globalization.
• What does globalization look like from your perspective? How does it affect your family
and community? Do you think it has been a good thing for you? Why or why not?
• Now that you know what to look for, it’s time to read! Remember to return to these
questions once you’ve finished reading.
Deepening/Abstraction:
Source: Bridgette Byrd O’Connor
Globalization is now a buzzword in twenty-first-century politics. This interconnection and

interdependency have equally long lists of pros and cons. What does globalization mean and
when did it begin?
What is globalization?
In the later decades of the twentieth century, people found they needed a term to describe the
dizzying amount of changes going on around them. The businesses that people worked for
were buying and selling more goods in distant places. International organizations were
increasingly bringing together representatives from many different communities. People were
exchanging ideas rapidly as technology made travel and communications easier. These
networks were not only getting bigger and covering more ground, but also their activity had
become more intense. It was now possible to send and receive information or visit other places
much more rapidly than ever before. Some observers even noted that people could have closer
relationships with others living thousands of miles away, than with their own neighbors. How
could all of these changes be described? If you guessed "a hot mess," you're close enough, but
scholars and journalists eventually settled on globalization.
United Nations, a global organization devoted to fostering international peace, holding its General Assembly Meeting in New
York, 2011. By Basil D. Soufi, CC BY-SA 3.0.
A general term, globalization refers to how the world has become more connected
economically, politically, socially, and culturally over time. In this general sense, its roots go
back to the era of agrarian societies as empires expanded and trade networks grew. These
connections really accelerated and encompassed the whole world after the Columbian
Exchange. When people, plants, goods, diseases, and ideas were shared across all world
zones, the lives of humans everywhere changed. In some regions this was mainly positive. For
example, the introduction of more caloric food increased life expectancy. However, in other
regions, the effects were more negative, such as slavery and exploitation of the land and
resources for profit elsewhere—known as the dependency cycle.
After the Industrial Revolution, the world became even more interconnected, and some scholars
say that globalization really began in this period. In this sense, globalization is about people
around the world becoming so connected that local life is shaped by what is happening in other
parts of the world. This challenges our definition of community in some ways. Through the
Industrial Revolution, local-global connections like this began to be established. Transportation
and communication advancements led to an increase in travel and the sharing of ideas
(collective learning). Imperialist nations exerted control over other areas of the world. The
legacy of this colonization was, of course, negative in many ways when you consider slavery,
destruction of traditional cultures, and the depletion of resources. But there were some effects
most think of as positive, including the new technologies like railways and telegraph lines that
connected more people and ideas around the world.
The world wars globalized us even more. In fact, these major conflicts proved to the world that
working together across global networks could be good and bad. There was global disaster with
World War I, the even deadlier sequel, and the Great Depression. But we also saw global
cooperation for good—like ending the Nazi regime. After World War II, many global
organizations were formed to help to bring peace, stability, and economic prosperity to the
world. The United Nations, NATO, the World Bank, and the International Monetary Fund are all
global organizations you'll learn about later in this unit.
Globalization’s effect on communities and economies
Globalization has touched all aspects of human existence. In the modern era, voluntary
migration as well as forced migration have resulted in a diverse human population in many parts
of the world. America, which is often called a "melting pot", is a prime example of how the mass
movement of people has shaped the modern world. Today's Americans come from all corners of
the globe. But equally diverse populations can be found in parts of Mexico, South Africa,
Indonesia, and many other places. And as people move, they bring with them their language,
culture, food, and customs. These become interwoven within an existing society and create
diversity, which should be celebrated.
Similarly, the world economy today is so intertwined that if one nation struggles financially, the
effects are felt in global markets. The 2008 global recession, for example, caused several
banking crises in Europe and Asia, but really began with a "bubble" of bad loans in the United
States. On an everyday basis, globalization is represented by multinational corporations that
employ people around the world. These companies often make a single product from resources
and labor in many different countries.
Global air and sea routes highlighted on a world map. By Dominic Alves, CC BY 2.0.
The Pros and Cons of Globalization
This kind of intense globalization brings together people from around the world. But—and there
are some buts—what are the side-effects? Technological innovations now let people around the
world communicate and share ideas in real time, when messages sent across continents used
to take months. But not everybody has the same access to computing or the Internet.
Governments can work together to trade and solve problems. But that means some people are
affected by laws or policies made in other countries. Beliefs are shared, which results in millions
of people practicing the same faith in various parts of the world. But these shared beliefs also
increase tensions with disagreements between people of different faiths, and even within faiths.
Economies have become intertwined through international trade and aid. But, globalization has
also led to an increase in inequality. In some nations the wealthy have become far richer while
the poor have stayed stagnant economically. Some areas of the world have become extremely
powerful and wealthy while others are still trying to overcome the negative effects of colonialism.
In perhaps the biggest but of them all, the use of fossil fuels in industrialized nations has led to
pollution that spreads around the world. As a result, one nation's pollution becomes the problem
of other nations, as wind and water currents carry these toxic fumes and chemicals. Wealthy
nations have also exported their waste to poorer nations including toxic waste and garbage from
landfills.
Interconnection and interdependency, therefore, can be a double-edged sword, as you will learn
in this unit's lessons. However, with all of the twenty-first century's technology, medical
innovations, and multinational corporations, it's impossible to think that we can ever retreat from
the modern world to focus only on ourselves. As humans, we have the ability and
consciousness to improve not only our own lives but also the lives of all humans as well as
other species by working together. Globalization isn't reversible, so how can we eliminate some
of the negatives as we move forward and continue to reap the rewards of working together and
exchanging ideas?
8 THEORIES OF GLOBALIZATION:
All theories of globalization have been put hereunder in eight categories: liberalism, political
realism, Marxism, constructivism, postmodernism, feminism, Transformationalism and
eclecticism. Each one of them carries several variations.
1. Theory of Liberalism:
Liberalism sees the process of globalization as market-led extension of modernization. At the

most elementary level, it is a result of ‘natural’ human desires for economic welfare and political
liberty. As such, transplanetary connectivity is derived from human drives to maximize material
well-being and to exercise basic freedoms. These forces eventually interlink humanity across
the planet.
They fructify in the form of:
a) Technological advances, particularly in the areas of transport, communications and

information processing, and,
(b) Suitable legal and institutional arrangement to enable markets and liberal democracy to
spread on a trans world scale.
Such expla-nations come mostly from Business Studies, Economics, International Political
Economy, Law and Politics. Liberalists stress the necessity of constructing institutional
infrastructure to support globalization. All this has led to technical standardization, administrative
harmonization, trans-lation arrangement between languages, laws of contract, and guarantees
of property rights.
But its supporters neglect the social forces that lie behind the creation of technological and
institutional underpinnings. It is not satisfying to attribute these developments to ‘natural’
human drives for economic growth and political liberty. They are culture blind and tend to
overlook historically situated life-worlds and knowledge structures which have promoted their
emergence.
All people cannot be assumed to be equally amenable to and desirous of increased globality in
their lives. Similarly, they overlook the phenomenon of power. There are structural power
inequalities in promoting globalization and shaping its course. Often they do not care for the
entrenched power hierarchies between states, classes, cultures, sexes, races and resources.
2. Theory of Political Realism:
Advocates of this theory are interested in questions of state power, the pursuit of national
interest, and conflict between states. According to them states are inherently acquisitive and
self-serving, and heading for inevitable competition of power. Some of the scholars stand for a
balance of power, where any attempt by one state to achieve world dominance is countered by
collective resistance from other states.
Another group suggests that a dominant state can bring stability to world order. The ‘hegemon’
state (presently the US or G7/8) maintains and defines international rules and institutions that
both advance its own interests and at the same time contain conflicts between other states.
Globalization has also been explained as a strategy in the contest for power between several
major states in contem-porary world politics.
They concentrate on the activities of Great Britain, China, France, Japan, the USA and some
other large states. Thus, the political realists highlight the issues of power and power struggles
and the role of states in generating global relations.
At some levels, globalization is considered as antithetical to territorial states. States, they say,
are not equal in globalization, some being dominant and others subordinate in the process. But
they fail to understand that everything in globalization does not come down to the acquisition,
distribution and exercise of power.
Globalization has also cultural, ecological, economic and psychological dimensions that are not
reducible to power politics. It is also about the production and consumption of resources, about
the discovery and affir-mation of identity, about the construction and communication of meaning,
and about humanity shaping and being shaped by nature. Most of these are apolitical.
Power theorists also neglect the importance and role of other actors in generating globalization.
These are sub-state authorities, macro-regional institutions, global agencies, and private-sector
bodies. Additional types of power-relations on lines of class, culture and gender also affect the
course of globalization. Some other structural inequalities cannot be adequately explained as an
outcome of interstate competition. After all, class inequality, cultural hierarchy, and patriarchy
predate the modern states.
3. Theory of Marxism:
Marxism is principally concerned with modes of production, social exploi-tation through unjust
distribution, and social emancipation through the transcendence of capitalism. Marx himself
anticipated the growth of globality that ‘capital by its nature drives beyond every spatial barrier
to conquer the whole earth for its market’. Accordingly, to Marxists, globalization happens
because trans-world connectivity enhances opportu-nities of profit-making and surplus
accumulation.
Marxists reject both liberalist and political realist explanations of globalization. It is the outcome
of historically specific impulses of capitalist development. Its legal and insti-tutional
infrastructures serve the logic of surplus accumulation of a global scale. Liberal talk of freedom
and democracy make up a legitimating ideology for exploitative global capitalist class relations.
The neo-Marxists in dependency and world-system theories examine capitalist accumulation on

a global scale on lines of core and peripheral countries. Neo-Gramscians highlight the
significance of underclass struggles to resist globalizing capitalism not only by traditional labor
unions, but also by new social movements of consumer advocates, environmentalists, peace
activists, peasants, and women. However, Marxists give an overly restricted account of power.
There are other relations of dominance and subordination which relate to state, culture, gender,
race, sex, and more. Presence of US hegemony, the West-centric cultural domination,
masculinism, racism etc. are not reducible to class dynamics within capitalism. Class is a key
axis of power in globalization, but it is not the only one. It is too simplistic to see globalization
solely as a result of drives for surplus accumulation.
It also seeks to explore identities and investigate meanings. People develop global weapons
and pursue global military campaigns not only for capitalist ends, but also due to interstate
competition and militarist culture that predate emergence of capitalism. Ideational aspects of
social relations also are not outcome of the modes of production. They have, like nationalism,
their autonomy.
4. Theory of Constructivism:
Globalization has also arisen because of the way that people have mentally constructed the
social world with particular symbols, language, images and interpretation. It is the result of
particular forms and dynamics of consciousness. Patterns of production and governance are
second-order structures that derive from deeper cultural and socio-psychological forces. Such
accounts of globalization have come from the fields of Anthropology, Humanities, Media of
Studies and Sociology.
Constructivists concentrate on the ways that social actors ‘construct’ their world: both within
their own minds and through inter-subjective communication with others. Conver-sation and
symbolic exchanges lead people to construct ideas of the world, the rules for social interaction,
and ways of being and belonging in that world. Social geography is a mental experience as well
as a physical fact. They form ‘in’ or ‘out’ as well as ‘us’ and they’ groups.
They conceive of themselves as inhabitants of a particular global world. National, class,

religious and other identities respond in part to material conditions but they also depend on
inter-subjective construction and communication of shared self-understanding. However, when
they go too far, they present a case of social-psychological reductionism ignoring the
significance of economic and ecological forces in shaping mental experience. This theory
neglects issues of structural inequalities and power hierarchies in social relations. It has a built-
in apolitical tendency.
5. Theory of Postmodernism:
Some other ideational perspectives of globalization highlight the signifi-cance of structural

power in the construction of identities, norms and knowledge. They all are grouped under the
label of ‘postmodernism’. They too, as Michel Foucault does strive to understand society in
terms of knowledge power: power structures shape knowledge. Certain knowledge structures
support certain power hierarchies.
The reigning structures of understanding determine what can and cannot be known in a given
socio-historical context. This dominant structure of knowledge in modern society is ‘rationalism’.
It puts emphasis on the empirical world, the subordi-nation of nature to human control,
objectivist science, and instrumentalist efficiency. Modern rationalism produces a society
overwhelmed with economic growth, technological control, bureaucratic organization and
disciplining desires.
This mode of knowledge has authoritarian and expan-sionary logic that leads to a kind of
cultural imperialism subordinating all other epistemologies. It does not focus on the problem of
globalization per se. In this way, western rationalism overawes indigenous cultures and other
non-modem life-worlds.
Postmodernism, like Marxism, helps to go beyond the relatively superficial accounts of liberalist
and political realist theories and expose social conditions that have favored globalization.
Obviously, postmodernism suffers from its own methodological idealism. All material forces,
though come under impact of ideas, cannot be reduced to modes of consciousness. For a valid
explanation, interconnection between ideational and material forces is not enough.
6. Theory of Feminism:
It puts emphasis on social construction of masculinity and femininity. All other theories have
identified the dynamics behind the rise of trans-planetary and supra-territorial connectivity in
technology, state, capital, identity and the like.
Biological sex is held to mold the overall social order and shape significantly the course of
history, presently globality. Their main concern lies behind the status of women, particularly their
structural subordination to men. Women have tended to be marginalized, silenced and violated
in global communication.
7. Theory of Transformationalism:
This theory has been expounded by David Held and his colleagues. Accord-ingly, the term
‘globalization’ reflects increased interconnectedness in political, economic and cultural matters
across the world creating a “shared social space”. Given this interconnectedness, globalization
may be defined as “a process (or set of processes) which embodies a transformation in the
spatial organization of social relations and transactions, expressed in trans-continental or
interregional flows and networks of activity, interaction and power.”
While there are many definitions of globalization, such a definition seeks to bring together the
many and seemingly contradictory theories of globalization into a “rigorous analytical
framework” and “proffer a coherent historical narrative”. Held and McGrew’s analytical
framework is constructed by developing a three-part typology of theories of globalization
consisting of “hyper-globalist,” “sceptic,” and “transformationalist” categories.
The Hyperglobalists purportedly argue that “contemporary globalization defines a new era in
which people everywhere are increasingly subject to the disciplines of the global marketplace”.
Given the importance of the global marketplace, multi-national enterprises (MNEs) and
intergov-ernmental organizations (IGOs) which regulate their activity are key political actors.
Sceptics, such as Hirst and Thompson (1996) ostensibly argue that “globalization is a myth
which conceals the reality of an interna-tional economy increasingly segmented into three major
regional blocs in which national governments remain very powerful.” Finally, transformationalists
such as Rosenau (1997) or Giddens (1990) argue that globalization occurs as “states and
societies across the globe are experi-encing a process of profound change as they try to adapt
to a more interconnected but highly uncertain world”.
Developing the transformationalist category of globalization theories. Held and McGrew present
a rather complicated typology of globalization based on globalization’s spread, depth, speed,
and impact, as well as its impacts on infrastructure, institutions, hierarchical structures and the
unevenness of development.
They imply that the “politics of globalization” have been “transformed” (using their word from the
definition of globalization) along all of these dimensions because of the emergence of a new
system of “political globalization.” They define “political globalization” as the “shifting reach of
political power, authority and forms of rule” based on new organiza-tional interests which are
“transnational” and “multi-layered.”
These organizational interests combine actors identified under the hyper-globalist category
(namely IGOs and MNEs) with those of the sceptics (trading blocs and powerful states) into a
new system where each of these actors exercises their political power, authority and forms of
rule.
Thus, the “politics of globalization” is equivalent to “politicalz” for Held and McGrew. However,
Biyane Michael criticizes them. He deconstructs their argument, if a is defined as “globalization”
(as defined above), b as the organizational interests such as MNEs, IGOs, trading blocs, and
powerful states, and c as “political globalization” (also as defined above), then their argument
reduces to a. b. c. In this way, their discussion of globalization is trivial.
Held and others present a definition of globalization, and then simply restates various elements
of the definition. Their definition, “globalization can be conceived as a process (or set of
processes) which embodies a transformation in the spatial organization of social relations”
allows every change to be an impact of globalization. Thus, by their own definition, all the
theorists they critique would be considered as “transformationalists.” Held and McGrew also fail
to show how globalization affects organizational interests.
8. Theory of Eclecticism:
Each one of the above six ideal-type of social theories of globalization highlights certain forces
that contribute to its growth. They put emphasis on technology and institution building, national
interest and inter-state compe-tition, capital accumulation and class struggle, identity and
knowledge construction, rationalism and cultural imperialism, and masculinize and
subordination of women. Jan Art Scholte synthesizes them as forces of production, governance,
identity, and knowledge.
Accordingly, capitalists attempt to amass ever-greater resources in excess of their survival

needs: accumulation of surplus. The capitalist economy is thoroughly monetized. Money
facilitates accumulation. It offers abundant opportunities to transfer surplus, especially from the
weak to the powerful. This mode of production involves perpetual and pervasive contests over
the distribution of surplus. Such competition occurs both between individual, firms, etc. and
along structural lines of class, gender, race etc.
Their contests can be overt or latent. Surplus accumulation has had transpired in one way or
another for many centuries, but capitalism is a comparatively recent phenomenon. It has turned
into a structural power, and is accepted as a ‘natural’ circumstance, with no alternative mode of
production. It has spurred globalization in four ways: market expansion, accounting practices,
asset mobility and enlarged arenas of commodification. Its technological innovation appears in
communication, transport and data processing as well as in global organization and
management. It concentrates profits at points of low taxation. Information, communication,
finance and consumer sectors offer vast potentials to capital making it ‘hyper-capitalism’.
Any mode of production cannot operate in the absence of an enabling regulatory apparatus.
There are some kind of governance mechanisms. Governance relates processes whereby
people formulate, implement, enforce and review rules to guide their common affairs.” It entails
more than government. It can extend beyond state and sub-state institutions including supra-
state regimes as well. It covers the full scope of societal regulation.
In the growth of contemporary globalization, besides political and economic forces, there are
material and ideational elements. In expanding social relations, people explore their class, their
gender, their nationality, their race, their religious faith and other aspects of their being.
Constructions of identity provide collective solidarity against oppression. Identity provides
frameworks for community, democracy, citizenship and resistance. It also leads from
nationalism to greater pluralism and hybridity.
Earlier nationalism promoted territorialism, capitalism, and statism, now these plural identities
are feeding more and more globality, hyper-capitalism and polycentrism. These identities have
many international qualities visualized in global diasporas and other group affiliations based on
age, class, gender, race, religious faith and sexual orientations. Many forms of supra-territorial
solidarities are appearing through globalization.
In the area of knowledge, the way that the people know their world has significant implications
for the concrete circumstances of that world. Powerful patterns of social consciousness cause
globalization. Knowledge frameworks cannot be reduced to forces of production, governance or
identity.
Mindsets encourage or discourage the rise of globality. Modern rationalism is a general

configuration of knowledge. It is secular as it defines reality in terms of the tangible world of
experience. It understands reality primarily in terms of human interests, activities and conditions.
It holds that phenomena can be understood in terms of single incontrovertible truths that are
discoverable by rigorous application of objective research methods.
Ratio-nalism is instrumentalist. It assigns greatest value to insights that enable people efficiently
to solve immediate problems. It subordinates all other ways of understanding and acting upon
the world. Its knowledge could then be applied to harness natural and social forces for human
purposes. It enables people to conquer disease, hunger, poverty, war, etc., and maximize the
potentials of human life. It looks like a secular faith, a knowledge framework for capitalist
production and a cult of economic efficiency. Scientism and instrumentalism of rationalism is
conducive to globalization. Scientific knowledge is non-territorial.
The truths revealed by ‘objective’ method are valid for anyone, anywhere, and anytime on earth.
Certain production processes, regulations, technologies and art forms are applicable across the
planet. Martin Albrow rightly says that reason knows no terri-torial limits. The growth of
globalization is unlikely to reverse in the foreseeable future.
However, Scholte is aware of insecurity, inequality and marginalization caused by the present
process of globalization. Others reject secularist character of the theory, its manifestation of the
imperialism of westernist-modernist-rationalist knowledge. Anarchists challenge the oppressive
nature of states and other bureaucratic governance frameworks. Globalization neglects
environmental degradation and equitable gender relations.
Demonstration/Application:
Activity #1 – News report critique: Search and read three newspaper op-eds (local or
international) discussing globalization. Then, write 50-words summaries of each op-ed,
identifying what the underlying definitions of globalization the op-ed writers use.
Reflection:(State your reflection about the lesson)

Lesson 2: THE STRUCTURES OF GLOBALIZATION
A. THE GLOBAL ECONOMY
Focus:
At the end of the lesson, students should be able to:
• Define economic globalization

• Identify the actors that facilitate economic globalization
• Define the modern world system
• Articulate a stance on global economic integration
Source: https://en.wikipedia.org/wiki/Economic_globalization
Economic globalization is one of the three main dimensions of globalization commonly found in
academic literature, with the two others being political globalization and cultural globalization, as
well as the general term of globalization. Economic globalization refers to the widespread
international movement of goods, capital, services, technology and information. It is the
increasing economic integration and interdependence of national, regional, and local economies
across the world through an intensification of cross-border movement of goods, services,
technologies and capital. Economic globalization primarily comprises the globalization of
production, finance, markets, technology, organizational regimes, institutions, corporations, and
labor.
While economic globalization has been expanding since the emergence of trans-national trade,
it has grown at an increased rate due to improvements in the efficiency of long-distance
transportation, advances in telecommunication, the importance of information rather than
physical capital in the modern economy, and by developments in science and technology. The
rate of globalization has also increased under the framework of the General Agreement on
Tariffs and Trade and the World Trade Organization, in which countries gradually cut down
trade barriers and opened up their current accounts and capital accounts. This recent boom has
been largely supported by developed economies integrating with developing countries through
foreign direct investment, lowering costs of doing business, the reduction of trade barriers, and
in many cases cross-border migration.
History
International commodity markets, labor markets, and capital markets make up the economy and
define economic globalization.
Beginning as early as 6500 BCE, people in Syria were trading livestock, tools, and other items.
In Sumer, an early civilization in Mesopotamia, a token system was one of the first forms of
commodity money. Labor markets consist of workers, employers, wages, income, supply and
demand. Labor markets have been around as long as commodity markets. The first labor
markets provided workers to grow crops and tend livestock for later sale in local markets.
Capital markets emerged in industries that require resources beyond those of an individual
farmer.
Technology
Globalization is about interconnecting people around the world beyond the physical barrier of
geographical boundaries
These advances in economic globalization were disrupted by World War I. Most of the global
economic powers constructed protectionist economic policies and introduced trade barriers that
slowed trade growth to the point of stagnation. This caused a slowing of worldwide trade and
even led to other countries introducing immigration caps. Globalization did not fully resume until
the 1970s, when governments began to emphasize the benefits of trade. Today, follow-on
advances in technology have led to the rapid expansion of global trade.
Three suggested factors accelerated economic globalization:
1. Advancement of science and technology

2. Market oriented economic reforms
3. Contributions by multinational corporations.
The 1956 invention of containerized shipping, along with increases in ship sizes, were a major
part of the reduction in shipping costs.
Policy and government
The GATT/WTO framework, which was initiated in 1947, led participating countries to reduce
their tariff and non-tariff barriers to trade. Indeed, the idea of Most Favored Nation was essential
to the GATT. In order to accede, governments had to shift their economies from central planning
to market driven, especially after the fall of the Soviet Union.
On 27 October 1986, the London Stock Exchange enacted newly deregulated rules that
enabled global interconnection of markets, with an expectation of huge increases in market
activity. This event came to be known as the Big Bang.
By the time the World Trade Organization was established in 1994 as the baton was passed
from the GATT, it had grown to 128 countries, including Czech Republic, Slovakia and Slovenia.
The year 1995 saw the WTO pass the General Agreement on Trade in Services, while the 1998
defeat of the OECD's Multilateral Agreement on Investment was a hiccup on the route to
economic globalization.
Multinational corporations reorganized production to take advantage of these opportunities.

Labor-intensive production migrated to areas with lower labor costs, especially China, later
followed by other functions as skill levels increased. Networks raised the level of wealth
consumption and geographical mobility. This highly dynamic worldwide system had powerful
ramifications. The World Trade Organization Ministerial Conference of 1999 and associated
1999 Seattle WTO protests were a significant step on the road to economic globalization.
The People's Republic of China (2001) and the last remnants of ex-Soviet bloc countries like
Ukraine (2008) and Russia (2012) were admitted much later to the WTO process after painful
structural reforms.
The Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base
Erosion and Profit Shifting, which entered into force on 1 July 2018, is an effort to harmonize tax
regimes in order to prevent multi-national firms from taking advantage of loopholes like Ireland's
Green Jersey BEPS tool.
Global Actors:
1. International governmental organizations
An intergovernmental organization or international governmental organization (IGO) refers to an

entity created by treaty, involving two or more nations, to work in good faith, on issues of
common interest. IGO's strive for peace, security and deal with economic and social questions.
Examples include: The United Nations, The World Bank and on a regional level The North
Atlantic Treaty Organization among others.
2. International non-governmental organizations (NGOs)
International non-governmental organizations include charities, non-profit advocacy groups,

business associations, and cultural associations. International charitable activities increased
after World War II and on the whole NGOs provide more economic aid to developing countries
than developed country governments.
3. Businesses
Since the 1970s, multinational businesses have increasingly relied on outsourcing and
subcontracting across vast geographical spaces, as supply chains are global and intermediate
products are produced. Firms also engage in inter-firm alliances and rely on foreign research
and development. This in contrast to past periods where firms kept production internalized or
within a localized geography. Innovations in communications and transportation technology, as
well as greater economic openness and less government intervention have made a shift away
from internalization more feasible.
4. Migrants
International migrants transfer significant amounts of money through remittances to lower-

income relatives. Communities of migrants in the destination country often provide new arrivals
with information and ideas about how to earn money. In some cases, this has resulted in
disproportionately high representation of some ethnic groups in certain industries, especially if
economy success encourages more people to move from the source country. Movement of
people also spreads technology and aspects of business culture, and moves accumulated
financial assets.
Impact:
Economic Growth and Poverty Reduction
Economic growth accelerated and poverty declined globally following the acceleration of
globalization.
Per capita GDP growth in the post-1980 globalizers accelerated from 1.4 percent a year in the
1960s and 2.9 percent a year in the 1970s to 3.5 percent in the 1980s and 5.0 percent in the
1990s. This acceleration in growth is even more remarkable given that the rich countries saw
steady declines in growth from a high of 4.7 percent in the 1960s to 2.2 percent in the 1990s.
Also, the non-globalizing developing countries did much worse than the globalizers, with the
former's annual growth rates falling from highs of 3.3 percent during the 1970s to only 1.4
percent during the 1990s. This rapid growth among the globalizers is not simply due to the
strong performances of China and India in the 1980s and 1990s—18 out of the 24 globalizers
experienced increases in growth, many of them quite substantial."
According to the International Monetary Fund, growth benefits of economic globalization are
widely shared. While several globalizers have seen an increase in inequality, most notably
China, this increase in inequality is a result of domestic liberalization, restrictions on internal
migration, and agricultural policies, rather than a result of international trade.
Poverty has been reduced as evidenced by a 5.4 percent annual growth in income for the
poorest fifth of the population of Malaysia. Even in China, where inequality continues to be a
problem, the poorest fifth of the population saw a 3.8 percent annual growth in income. In
several countries, those living below the dollar-per-day poverty threshold declined. In China, the
rate declined from 20 to 15 percent and in Bangladesh the rate dropped from 43 to 36 percent.
Globalizers are narrowing the per capita income gap between the rich and the globalizing
nations. China, India, and Bangladesh, some of the newly industrialized nations in the world,
have greatly narrowed inequality due to their economic expansion.
Global Supply Chain
The global supply chain consists of complex interconnected networks that allow companies to
produce handle and distribute various goods and services to the public worldwide.
Corporations manage their supply chain to take advantage of cheaper costs of production. A
supply chain is a system of organizations, people, activities, information, and resources involved
in moving a product or service from supplier to customer. Supply chain activities involve the
transformation of natural resources, raw materials, and components into a finished product that
is delivered to the end customer. Supply chains link value chains. Supply and demand can be
very fickle, depending on factors such as the weather, consumer demand, and large orders
placed by multinational corporations.
Labor Conditions and Environment
"Race to the bottom"
Globalization is sometimes perceived as a cause of a phenomenon called the "race to the

bottom" that implies that to minimize cost and increase delivery speed, businesses tend to
locate operations in countries with the least stringent environmental and labor regulations.
Pressure to do this is increased if competitor’s lower costs by the same means. This both
directly results poor working conditions, low wages, job insecurity, and pollution, but also
encourages governments to under-regulate in order to attract jobs and economic investment.
However, if business demand is sufficiently high, the labor pool in low-wage countries becomes
exhausted (as has happened in the PRC), resulting in higher wages due to competition, and
more demand from the public for government protection against exploitation and pollution. From
2003 to 2013, wages in China and India have gone up by around 10–20% a year.
Health Risks
In developing countries with loose labor regulations, there are adverse health consequences
from working long hours and individuals that burden themselves from working within vasts
global supply chains. Women in agriculture, for example, are often asked to work long hours
handling chemicals such as pesticides and fertilizers without any protection.
Although both men and women experience shortcomings with health, the final reports stated
that women, with the double burden of domestic and paid work experience an increased the risk
of psychological distress and suboptimal health. Strazdins concluded that negative work-family
spillover especially is associated with health problems among both women and men, and
negative family-work spillover is related to a poorer health status among women."
It is common for the work lifestyle to bring forth adverse health conditions or even death due to
weak safety measure policies. After the tragic collapse of the Rana Plaza factory in Bangladesh
where over 800 deaths occurred the country has since then made efforts in boosting up their
safety policies to better accommodate workers.
Mistreatment
In developing countries with loose labor regulations and a large supply of low-skill, low-cost
workers, there are risks for mistreatment of some workers, especially women and children. Poor
working conditions and sexual harassment are just some of the mistreatment faced by women
in the textile supply chain. Marina Prieto-Carrón shows in her research in Central America that
women in sweatshops are not even supplied with toilet paper in the bathroom everyday. The
reason it costs corporations more is because people can not work to their full potential in poor
conditions, affecting the global marketplace. Furthermore, when corporations decide to change
manufacturing rates or locations in industries that employ more women, they are often left with
no job nor assistance. This kind of sudden reduction or elimination in hours is seen in industries
such as the textile industry and agriculture industry, both of which employ a higher number of
women than men. One solution to mistreatment of women in the supply chain is more
involvement from the corporation and trying to regulate the outsourcing of their product.
Global Labor and Fair-Trade Movements
Several movements, such as the fair-trade movement and the anti-sweatshop movement, claim
to promote a more socially just global economy. The fair trade movement works towards
improving trade, development and production for disadvantaged producers. The fair-trade
movement has reached 1.6 billion US dollars in annual sales. The movement works to raise
consumer awareness of exploitation of developing countries. Fair trade works under the motto
of "trade, not aid", to improve the quality of life for farmers and merchants by participating in
direct sales, providing better prices and supporting the community. Meanwhile, the anti-
sweatshop movement is to protest the unfair treatment caused by some companies.
Various transnational organizations advocate for improved labor standards in developing

countries. This including labor unions, who are put at a negotiating disadvantage when an
employer can relocate or outsource operations to a different country.
Capital Flight
Capital flight occurs when assets or money rapidly flow out of a country because of that
country's recent increase in unfavorable financial conditions such as taxes, tariffs, labor costs,
government debt or capital controls. This is usually accompanied by a sharp drop in the
exchange rate of the affected country or a forced devaluation for countries living under fixed
exchange rates. Currency declines improve the terms of trade, but reduce the monetary value of
financial and other assets in the country. This leads to decreases in the purchasing power of the
country's assets.
A 2008 paper published by Global Financial Integrity estimated capital flight to be leaving
developing countries at the rate of "$850 billion to $1 trillion a year." But capital flight also affects
developed countries. A 2009 article in The Times reported that hundreds of wealthy financiers
and entrepreneurs had recently fled the United Kingdom in response to recent tax increases,
relocating to low tax destinations such as Jersey, Guernsey, the Isle of Man and the British
Virgin Islands. In May 2012 the scale of Greek capital flight in the wake of the first "undecided"
legislative election was estimated at €4 billion a week.
Capital flight can cause liquidity crises in directly affected countries and can cause related
difficulties in other countries involved in international commerce such as shipping and finance.
Asset holders may be forced into distress sales. Borrowers typically face higher loan costs and
collateral requirements, compared to periods of ample liquidity, and unsecured debt is nearly
impossible to obtain. Typically, during a liquidity crisis, the interbank lending market stalls.
Inequality
While within-country income inequality has increased throughout the globalization period,
globally inequality has lessened as developing countries have experienced much more rapid
growth. Economic inequality varies between societies, historical periods, economic structures or
economic systems, ongoing or past wars, between genders, and between differences in
individuals' abilities to create wealth. Among the various numerical indices for measuring
economic inequality, the Gini coefficient is most often-cited.
Economic inequality includes equity, equality of outcome and subsequent equality of

opportunity. Although earlier studies considered economic inequality as necessary and
beneficial, some economists see it as an important social problem. Early studies suggesting that
greater equality inhibits economic growth did not account for lags between inequality changes
and growth changes. Later studies claimed that one of the most robust determinants of
sustained economic growth is the level of income inequality.
International inequality is inequality between countries. Income differences between rich and
poor countries are very large, although they are changing rapidly. Per capita incomes in China
and India doubled in the prior twenty years, a feat that required 150 years in the US. According
to the United Nations Human Development Report for 2013, for countries at varying levels of the
UN Human Development Index the GNP per capita grew between 2004 and 2013 from 24,806
to 33,391 or 35% (very high human development), 4,269 to 5,428 or 27% (medium) and 1,184
to 1,633 or 38% (low) PPP$, respectively (PPP$ = purchasing power parity measured in United
States dollars).
Certain demographic changes in the developing world after active economic liberalization and
international integration resulted in rising welfare and hence, reduced inequality. According to
Martin Wolf, in the developing world as a whole, life expectancy rose by four months each year
after 1970 and infant mortality rate declined from 107 per thousand in 1970 to 58 in 2000 due to
improvements in standards of living and health conditions. Also, adult literacy in developing
countries rose from 53% in 1970 to 74% in 1998 and much lower illiteracy rate among the
young guarantees that rates will continue to fall as time passes. Furthermore, the reduction in
fertility rates in the developing world as a whole from 4.1 births per woman in 1980 to 2.8 in
2000 indicates improved education level of women on fertility, and control of fewer children with
more parental attention and investment. Consequentially, more prosperous and educated
parents with fewer children have chosen to withdraw their children from the labor force to give
them opportunities to be educated at school improving the issue of child labor. Thus, despite
seemingly unequal distribution of income within these developing countries, their economic
growth and development have brought about improved standards of living and welfare for the
population as a whole.
Economic development spurred by international investment or trade can increase local income
inequality as workers with more education and skills can find higher-paying work. This can be
mitigated with government funding of education. Another way globalization increases income
inequality is by increasing the size of the market available for any particular good or service.
This allows the owners of companies that service global markets to reap disproportionately
larger profits. This may happen at the expense of local companies that would have otherwise
been able to dominate the domestic market, which would have spread profits around to a larger
number of owners. On the other hand, globalized stock markets allow more people to invest
internationally, and get a share of profits from companies they otherwise could not.
Resource insecurity
A systematic, and possibly first large-scale, cross-sectoral analysis of water, energy and land
insecurity in 189 countries that links national and sector consumption to sources showed that
countries and sectors are highly exposed to over-exploited, insecure, and degraded such
resources. The 2020 study finds that economic globalization has decreased security of global
supply chains with most countries exhibiting greater exposure to resource risks via international
trade – mainly from remote production sources – and that diversifying trading partners is
unlikely to help nations and sectors to reduce these or to improve their resource self-sufficiency.
Competitive Advantages
Businesses in developed countries tend to be more highly automated, have more sophisticated
technology and techniques, and have better national infrastructure. For these reasons and
sometimes due to economies of scale, they can sometimes out-compete similar businesses in
developing countries. This is a substantial issue in international agriculture, where Western
farms tend to be large and highly productive due to agricultural machinery, fertilizer, and
pesticides; but developing-country farms tend to be smaller and rely heavily on manual labor.
Conversely, cheaper manual labor in developing countries allowed workers there to out-
compete workers in higher-wage countries for jobs in labor-intensive industries. As the theory of
competitive advantage predicts, instead of each country producing all the goods and services it
needs domestically, a country's economy tends to specialize in certain areas where it is more
productive (though in the long term the differences may be equalized, resulting in a more
balanced economy).
Cultural Effects
Economic globalization may affect culture. Populations may mimic the international flow of
capital and labor markets in the form of immigration and the merger of cultures. Foreign
resources and economic measures may affect different native cultures and may cause
assimilation of a native people. As these populations are exposed to the English language,
computers, western music, and North American culture, changes are being noted in shrinking
family size, immigration to larger cities, more casual dating practices, and gender roles are
transformed.
Yu Xintian noted two contrary trends in culture due to economic globalization. Yu argued that
culture and industry not only flow from the developed world to the rest, but trigger an effort to
protect local cultures. He notes that economic globalization began after World War II, whereas
internationalization began over a century ago.
George Ritzer wrote about the McDonaldization of society and how fast food businesses spread
throughout the United States and the rest of the world, attracting other places to adopt fast food
culture. Ritzer describes other businesses such as The Body Shop, a British cosmetics
company, that have copied McDonald's business model for expansion and influence. In 2006,
233 of 280 or over 80% of new McDonald's opened outside the US. In 2007, Japan had 2,828
McDonald's locations.
Global media companies export information around the world. This creates a mostly one-way
flow of information, and exposure to mostly western products and values. Companies like CNN,
Reuters and the BBC dominate the global airwaves with western points of view. Other media
news companies such as Qatar's Al Jazeera network offer a different point of view, but reach
and influence fewer people.
Migration
"With an estimated 210 million people living outside their country of origin (International Labour
Organization 2010), international migration has touched the lives of almost everyone in both the
sending and receiving countries of the Global South and the Global North". Because of
advances made in technology, human beings as well as goods are able to move through
different countries and regions with relative ease.
THEORIES OF GLOBAL STRATIFICATION:
Source: https://courses.lumenlearning.com/sociology/chapter/theoretical-perspectives-on-global-
stratification/#:~:text=According%20to%20modernization%20theory%2C%20low,other%20forms%20of%20economic%20gro
wth
Modernization Theory
According to modernization theory, low-income countries are affected by their lack of

industrialization and can improve their global economic standing through (Armer and Katsillis
2010):
1. An adjustment of cultural values and attitudes to work

2. Industrialization and other forms of economic growth
Critics point out the inherent ethnocentric bias of this theory. It supposes all countries have the
same resources and are capable of following the same path. In addition, it assumes that the
goal of all countries is to be as “developed” as possible. There is no room within this theory for
the possibility that industrialization and technology are not the best goals.
There is, of course, some basis for this assumption. Data show that core nations tend to have
lower maternal and child mortality rates, longer life spans, and less absolute poverty. It is also
true that in the poorest countries, millions of people die from the lack of clean drinking water and
sanitation facilities, which are benefits most of us take for granted. At the same time, the issue is
more complex than the numbers might suggest. Cultural equality, history, community, and local
traditions are all at risk as modernization pushes into peripheral countries. The challenge, then,
is to allow the benefits of modernization while maintaining a cultural sensitivity to what already
exists.
Dependency Theory
Dependency theory was created in part as a response to the Western-centric mindset of

modernization theory. It states that global inequality is primarily caused by core nations (or high-
income nations) exploiting semi-peripheral and peripheral nations (or middle-income and low-
income nations), which creates a cycle of dependence (Hendricks 2010). As long as peripheral
nations are dependent on core nations for economic stimulus and access to a larger piece of
the global economy, they will never achieve stable and consistent economic growth. Further, the
theory states that since core nations, as well as the World Bank, choose which countries to
make loans to, and for what they will loan funds, they are creating highly segmented labor
markets that are built to benefit the dominant market countries.
At first glance, it seems this theory ignores the formerly low-income nations that are now
considered middle-income nations and are on their way to becoming high-income nations and
major players in the global economy, such as China. But some dependency theorists would
state that it is in the best interests of core nations to ensure the long-term usefulness of their
peripheral and semi-peripheral partners. Following that theory, sociologists have found that
entities are more likely to outsource a significant portion of a company’s work if they are the
dominant player in the equation; in other words, companies want to see their partner countries
healthy enough to provide work, but not so healthy as to establish a threat (Caniels and
Roeleveld 2009).
SUMMARY:
Modernization theory and dependency theory are two of the most common lenses sociologists
use when looking at the issues of global inequality. Modernization theory posits that countries
go through evolutionary stages and that industrialization and improved technology are the keys
to forward movement. Dependency theory, on the other hand, sees modernization theory as
Eurocentric and patronizing. With this theory, global inequality is the result of core nations
creating a cycle of dependence by exploiting resources and labor in peripheral and semi-
peripheral countries.
Demonstration/Application:
Activity #2 – Make a Reaction Paper on: “Global free trade has done more harm than good”.

Lesson 2:
B. MARKET INTEGRATION
Focus:
• Explain the role of international financial institutions in the creation of a global economy
• Narrate a short history of global market integration in the twentieth century.
• Identify the attributes of global corporations
Source: https://en.wikipedia.org/wiki/Market_integration
Market integration occurs when prices among different locations or related goods follow similar
patterns over a long period of time. Groups of goods often move proportionally to each other
and when this relation is very clear among different markets it is said that the markets are
integrated. Thus, market integration is an indicator that explains how much different markets are
related to each other. A marketer plays the role of an integrator in the sense that he collects
feedback or vital inputs from other channel members and consumers and provides product
solutions to customers by coordinating multiple functions of organization.
History of Global Market Integration
Market Integration
The nineteenth century saw substantial advances in international market integration, and the
creation of a truly world economy. Technological advance was critical in this. The railroad
locomotive and the marine steam engine revolutionized world transport from the 1830s
onwards. Steamships connected the world's ports to each other, and from the ports the
railroads ran inland, creating a new and faster world transport network. Freight rates fell, and
goods could be carried across the world to ever more distant markets and still be cheaper in
those faraway places than the same item produced locally. Linked closely to these changes was
the electric telegraph, whose lines often ran along the new railroad networks. Telegraph
systems were established in most countries, including the major market of British India, until
1854. Beginning with the first transatlantic cable, which was laid by steamship in 1866, these
existing domestic telegraph systems were linked together by marine cables. The resulting
international information network was crucial in communicating details of prices and price
movements, reducing the cost of making deals and transactions. An infrastructural change of
major significance came in 1869 with the opening of the Suez Canal, which linked the
Mediterranean Sea by way of Egypt to the Red Sea: now ships sailing from Europe to Asia
could take the new shortcut rather than sail all the way around Africa. Immediately Asia was
some 4,000 miles closer to Europe in transport terms, and freight costs fell. Yet the low
efficiency of early steamships meant that many bulk cargoes such as rice still were carried to
Europe from Asia by sail around the Cape of Good Hope. Technological change in the shape of
steel hulls and steel masts made sailing ships larger and more efficient, and they continued to
be active until the more efficient triple-expansion engine finally drove the sailing ships from the
oceans during the last quarter of the nineteenth century.
RISE OF FREE TRADE
Physical changes in lowering freight and transaction costs were not the only forces stimulating
market integration. It was normal for countries to impose import duties on foreign goods,
seeking to gain an inflow of gold in their foreign trade accounts by selling more to each of their
trading partners than they bought from them. But in 1846 the merchants of Manchester,
England, the center of the world's cotton textile industry, struck their famous victory for free
trade by forcing the British government to abandon tariffs on all imported goods apart from a few
luxury items. The tariffs on wheat were the first to go, opening up the Great Plains of the United
States for wheat production to supply Britain. With free trade, no longer did trade relations with a
foreign country have to balance or be in surplus; rather, a deficit in trade with one country could
be offset by a surplus in trade with another country, liberalizing world trade in a way never
previously seen. Britain moved heavily into deficit on trade account, but this was sustained by
considerable invisible inflows generated by her substantial overseas investments, particularly in
the railroad systems of the United States.
This policy of open markets became a dominating principle extended through much of the
British Empire, including the key market of India, although Canada and the State of Victoria in
Australia chose to be notable exceptions. The United States retained import duties, and after
short periods of trade liberalization most European countries also returned to protectionism so
that their new manufacturing industries could establish themselves safe from the competition of
cheaper goods from Britain. Britain itself ran heavy trade deficits with the United States due
largely to grain purchases, and it also had deficits with the newly industrialized countries of
continental Europe, due to purchases of manufactured goods. Britain was able to sustain these
deficits because of its own sales of manufactures, especially cotton yarn and textiles, to India
and the rest of Asia, including China. So the open-market polices of the British Empire played a
crucial role in sustaining a complicated interrelated mesh of world payments, and newly
industrializing countries took advantage of these open markets whilst maintaining their own
protective walls. Each country could specialize in producing those goods they were best
endowed by nature to produce, and could exchange them for the other products they needed.
The vast market of British India was crucial, and though Britain, the colonial power, was the
leading supplier of manufactured goods there, Germany and other industrial nations were free
to trade, and did so very effectively. India itself had big surpluses with the rest of Asia,
particularly China, because of its sales of opium and of cotton yarn and textiles from Bombay.
INTEGRATION OF GRAIN MARKETS AT THE TURN OF THE CENTURY
Within Asia major effects of market integration were seen. Where a market area is fully
integrated, prices of a particular commodity will equalize across that area. Fluctuations in prices
across the region will synchronize, demonstrating that they are subject to the same influences.
Transport costs are crucial, and a commodity will only move from one location to another if the
cost of production in the place of origin plus the cost of transport is less than the prevailing price
for that commodity in the destination. In Asia the late nineteenth century saw market integration
in one of Asia's key commodities, rice. Prices moved in the same way in the exporting countries
(Burma, French Indochina, and Siam), in the great redistribution centers (the British free ports
Singapore and Hong Kong), and in the receiving countries (India, Ceylon, the Straits
Settlements, the Dutch East Indies, the Philippines, China, and Japan). The movement of
migrant workers to tin mines and rubber and tea plantations in places like the Straits
Settlements, the Dutch East Indies, and Ceylon had created increased demand for rice in those
countries which was now satisfied by rice imports from those countries capable of producing
supplies. Shifts in the flow of rice from country to country and from year to year reflected harvest
variations in both producers and consumers. The transport and information networks
established in the second half of the nineteenth century had created an intra-Asian economy in
which the income received by rice cultivators was spent on the products of the new
manufacturing industries of the region, particularly the cotton yarn and textiles of the factories of
Bombay, Shanghai, and Osaka. Rice was also supplied in very substantial quantities to Europe,
where it was used for food, brewing, and starch. It joined a flow of wheat to Europe from
Karachi. This period saw the integration of the world wheat market and the world rice market,
creating a global market in basic food grains. The two markets interlocked in British India, which
both consumed and exported both crops. Now the world price of wheat and rice moved in
unison, which meant that the incomes of U.S. farmers and other world wheat producers were
influenced by forces such as a monsoon in India!
But this integration of the world wheat markets and world rice markets had serious
consequences. During the 1920s there was great expansion in the amount of land under wheat
and rice in the world at large. Normally, good wheat harvests were offset by poor rice harvests,
and good rice harvests were offset by poor wheat harvests. But when favorable climatic
conditions occurred for both grains, particularly beginning in 1928, this resulted in a glut, forcing
down prices and bankrupting farmers all over the world. As farm incomes fell, so did the ability
of farmers to purchase manufactured goods, and this affected manufacturers, contributing to the
worldwide Great Depression of the 1930s. As the depression bit, countries increased their tariff
duties to keep foreign products out of their markets in order to help their own manufacturers and
farmers. In 1932 even Britain, with its deep commitment to free trade, was forced to turn to
protectionism and surrender the free trade ideal. Free trade and open markets were unfortunate
casualties of the Great Depression, and in fact their breakdown contributed to the slump's
prolongation. The restoration of free trade and open markets was one of the primary aims of
those planning the operation of the world economic system after the end of world hostilities in
1945.otton yarn and textiles from Bombay.
Overview of International Financial Institutions (IFIs):
Source: https://www.tradecommissioner.gc.ca/development-developpement/mdb-overview-bmd-apercu.aspx?lang=eng
African Development Bank
Asian Development Bank
Caribbean Development Bank
European Bank for Reconstruction & Development
Inter-American Development Bank
World Bank
Other IFIs & Institutions
In many parts of the world, international financial institutions (IFIs) play a major role in the social
and economic development programs of nations with developing or transitional economies. This
role includes advising on development projects, funding them and assisting in their
implementation.
Characterized by AAA-credit ratings and a broad membership of borrowing and donor countries,
each of these institutions operates independently. All however, share the following goals and
objectives:
1. to reduce global poverty and improve people's living conditions and standards;
2. to support sustainable economic, social and institutional development; and
3. to promote regional cooperation and integration.
IFIs achieve these objectives through loans, credits and grants to national governments. Such
funding is usually tied to specific projects that focus on economic and socially sustainable
development. IFIs also provide technical and advisory assistance to their borrowers and
conduct extensive research on development issues. In addition to these public procurement
opportunities, in which multilateral financing is delivered to a national government for the
implementation of a project or program, IFIs are increasingly lending directly to non-sovereign
guaranteed (NSG) actors. These include sub-national government entities, as well as the
private sector.
Canada is a partner and shareholder in the World Bank, which is the major global IFI, and in
several regional development banks. This membership permits Canadian firms and individuals
to compete for procurement opportunities in bank-funded projects and programs.
Working with IFIs:
During recent years, IFIs have made considerable progress in harmonizing the way they
procure goods and services. In many cases, they are now using similar policies and procedures,
although the interpretation of these approaches may still vary at the level of the individual
institution. In the sections that follow, we'll look at the common features of IFI procurement and
how it works. Skip directly to the section on:
Country Strategies
The Project Cycle
The Procurement Process
Project and Procurement Information
Suppliers of Goods, Works, Equipment and Non-Consulting Services
Consultants and Consulting Services
Corporate and Institutional Procurement
Private Sector Lending
Trust Funds
Business Approach
Country Strategies
All IFIs use country strategy documents, as these are fundamental to establishing an IFI's
lending priorities for a particular country. Based on the country's own vision for its long-term
development and written by the IFI, the document lays out the IFI's support program for the
nation.
A country strategy begins by analyzing the causes of poverty within the population and
identifying key areas where the IFI's assistance can reduce it most effectively. This establishes
a foundation for the IFI's future activities in the country, which can range across the entire
spectrum of economic and social needs.
The development of the country strategy involves extensive discussions with many
stakeholders, including government authorities, representatives of civil society, non-government
organizations, development agencies and the private sector. These discussions are crucial to
the success of the strategy because they promote collaboration and coordination among the
various national partners.
Country Strategy Documents:
African Development Bank (AfDB) - Country Strategy Papers
Asian Development Bank (ADB) - Country Planning Documents
Caribbean Development Bank (CDB) - Country Strategies
European Bank for Reconstruction and Development (EBRD) - Country Strategies
Inter-American Development Bank (IDB) - Country Strategy, available via Country pages
World Bank (WB) - Country Partnership Framework (CPF) (also called in some cases Country
Partnership Strategy or Country Assistance Strategy)
The Project Cycle
All IFI-funded projects are implemented by the borrowing countries, not by the IFI providing the
funds. However, all borrowers must follow the IFI's rules and procedures throughout the entire
project cycle. This is intended to guarantee efficiency and transparency in the use of IFI funds.
The project cycle, which has similar stages for all IFIs, is the framework for the design,
preparation, implementation, completion and evaluation of a project. Business opportunities
occur throughout the cycle, so becoming familiar with it will increase your chances of identifying
an opportunity and securing a contract.
You should be aware, though, that project cycles can often last for several years, so being
involved in a project from start to finish can require a substantial long-term investment on your
part. However, the smaller components within a given project cycle can provide many shorter-
term opportunities.
In general, the project cycle consists of the following stages:
Identification
The IFI and the borrowing country identify projects that are appropriate for the country's
development strategy and suitable for IFI support. Pre-feasibility studies are often required at
this stage.
Preparation
Once a proposed project has entered the project pipeline, the borrower and IFI technical staff
study and define it further. The actual design and preparation of the project are the borrowing
country's responsibility. During this stage, the borrower and/or the IFI frequently hire consultants
to help with feasibility studies, detailed project design and the assessment of the project's
environmental and social effects.
Appraisal
IFI staff conduct in-depth assessments of the technical, financial and economic elements of the
project. The appraisal phase is the IFI's responsibility and culminates in a project plan.
Negotiation
The IFI and the borrower negotiate the funding agreement and the project implementation
plans. Negotiations result in a loan or funding document that is presented to the appropriate IFI
board(s) for approval. The funding becomes effective after board approval and after the country
has signed the documents. Funds can now be disbursed, thus commencing the implementation
stage of the project.
Implementation and Supervision
Implementation of the project, including procurement, is the responsibility of the borrower and is
carried out with minimal IFI assistance. However, the IFI does oversee all major procurement
decisions made by the borrower. Most of the funds are spent during this phase, which provides
the bulk of the procurement opportunities for contractors.
Evaluation
This final phase is an assessment of the project and of the results achieved. It is performed after
the project has been completed and all funds have been disbursed.
The Role of Financial Institutions in the Creation of the Global Economy:
Characteristics of a Multinational Corporation
The following are the common characteristics of multinational corporations:
1. Very high assets and turnover
To become a multinational corporation, the business must be large and must own a huge
amount of assets, both physical and financial. The company’s targets are high, and they are
able to generate substantial profits.
2. Network of branches
Multinational companies maintain production and marketing operations in different countries. In

each country, the business may oversee multiple offices that function through several branches
and subsidiaries.
3. Control
In relation to the previous point, the management of offices in other countries is controlled by
one head office located in the home country. Therefore, the source of command is found in the
home country.
4. Continued growth
Multinational corporations keep growing. Even as they operate in other countries, they strive to
grow their economic size by constantly upgrading and by conducting mergers and acquisitions.
5. Sophisticated technology
When a company goes global, they need to make sure that their investment will grow
substantially. In order to achieve substantial growth, they need to make use of capital-intensive
technology, especially in their production and marketing activities.
6. Right skills
Multinational companies aim to employ only the best managers, those who are capable of
handling large amounts of funds, using advanced technology, managing workers, and running a
huge business entity.
7. Forceful marketing and advertising
One of the most effective survival strategies of multinational corporations is spending a great
deal of money on marketing and advertising. This is how they are able to sell every product or
brand they make.
8. Good quality products
Because they use capital-intensive technology, they are able to produce top-of-the-line
products.
Reasons for Being a Multinational Corporation
There are various reasons why companies want to become multinational corporations. Here are
some of the most common motivations:
1. Access to lower production costs
Setting up production in other countries, especially in developing economies, usually translates

to spending significantly less on production costs. Though outsourcing is a way of achieving the
objective, setting up manufacturing plants in other countries may be even more cost-efficient.
Due to their large size, MNCs can take advantage of economies of scale and grow their global
brand. The growth is done through strategic manufacturing/service placement, which allows the
corporation to take advantage of undervalued services across the globe, more efficient and
inexpensive supply chains, and advanced technological/R&D capacity.
2. Proximity to target international markets
It is beneficial to set up business in countries where the target consumer market of a company
is located. Doing so helps reduce transport costs and gives multinational corporations easier
access to consumer feedback and information, as well as to consumer intelligence.
International brand recognition makes the transition from different countries and their respective
markets easier and decreases per capita marketing costs as the same brand vision can be
applied worldwide.
3. Access to a larger talent pool
Multinational corporations are also known to hire only the best talent from around the world,
which allows management to provide the best technical knowledge and innovative thinking to
their product or service.
4.Avoidance of tariffs
When a company produces or manufactures its products in another country where they also sell
their products, they are exempt from import quotas and tariffs.
Models of MNCs
The following are the different models of multinational corporations:
1. Centralized
In the centralized model, companies put up an executive headquarters in their home country
and then build various manufacturing plants and production facilities in other countries. Its most
important advantage is being able to avoid tariffs and import quotas and take advantage of
lower production costs.
2. Regional
The regionalized model states that a company keeps its headquarters in one country that
supervises a collection of offices that are located in other countries. Unlike the centralized
model, the regionalized model includes subsidiaries and affiliates that all report to the
headquarters.
3. Multinational
In the multinational model, a parent company operates in the home country and puts up
subsidiaries in different countries. The difference is that the subsidiaries and affiliates are more
independent in their operations.
Advantages of Being a Multinational Corporation
There are many benefits of being a multinational corporation including:
1. Efficiency
In terms of efficiency, multinational companies are able to reach their target markets more easily
because they manufacture in the countries where the target markets are. Also, they can easily
access raw materials and cheaper labor costs.
2. Development
In terms of development, multinational corporations pay better than domestic companies,

making them more attractive to the local labor force. They are usually favored by the local
government because of the substantial amount of local taxes they pay, which helps boost the
country’s economy.
3. Employment
In terms of employment, multinational corporations hire local workers who know the culture of
their place and are thus able to give helpful insider feedback on what the locals want.
4. Innovation
As multinational corporations employ both locals and foreign workers, they are able to come up
with products that are more creative and innovative.
Foreign Direct Investment
Foreign direct investments are prevalent within multinational corporations. The investments
occur when an investor or company from one country makes an investment outside the country
of operation.
Foreign investments most often occur when a foreign business is established or bought outright.
It can be distinguished from the purchase of an international portfolio that only contains equities
of the company, rather than purchasing more direct control.
LESSON 2:
C. THE GLOBAL INTERSTATE
Focus:
• Explain the effects of globalization on governments

• Identify the institutions that govern international relations
• Differentiate internationalism from globalism
Source: Global Governance in the Twenty-first Century; Editors: Clarke, J., Edwards, G. (Eds.)
The key challenges of globalization are diffuse and outside the control of any one state. In its
most ambitious and forward looking form, global governance seeks to create an international
social fabric, albeit imperfect, which cumulatively, amounts to more than the sum of its parts.
Global Governance in the Twenty-first-century aims to open a number of new areas for further
analysis, and in particular, to begin a process of cross-fertilization between different disciplines
Globalization affects governance indirectly through peace and stability as well as directly.
Culturally, globalization spreads new ideas, technologies, tools, attitudes, and social networks,
and these have direct effects on governance. Examining issues related to global According to
the disciplining hypothesis, globalization restrains governments by inducing increased
budgetary pressure.
What are the Effects of Globalization to Governments?
The biggest effect is a reduction of economic independence. The increasing market size with
the effects of Absolute or Comparative Advantages in manufacturing creates the need to
specialize in narrow product production or service areas to be able to compete successfully.
This requires “OPEN MARKET” policies. On the opposite end of the spectrum, it could just as
easily result in “PROTECTIONIST” policies to restrict domestic access to markets using the
tools of import quotas and/or tariffs on imported goods. The main problem with restricting
market access using such tools is RETALIATION from other countries in implementing similar
policies against that country… the popular press refers to this as a “Trade War.” When this
happens, the larger market has a distinct advantage as its people can better afford slightly
higher prices for imported goods. Global corporations don’t generally like that an excise tax is
being applied to their goods that will impact sales volumes and profits to the their shareholders.
If a marketing study shows sales volumes are significantly affected in revenue losses… Global
Corporations simply establish Wholly Owned Subsidiaries in the countries where their brands
are already well-established, and continue selling them without the the excise taxes being
applied. In other cases, third countries, not involved in such Trade Disputes… called “Terms of
Trade,” are used to funnel goods without being subject to the import tax. Cyprus is often used a
gateway to import Turkish products into the European Union without going through procedures
to declare Value Added Taxes for such goods making them far cheaper on European markets.
Spanish Sahara is often used as a colony to mfr Made In EU products using non-EU citizens in
Africa, to get around import laws for access to EU markets. The large Spanish retail giant that
owns the Bershika, Zara, and Stradavarious brands has clothing made on a large floating
platform in the Mediterranean Sea to get around EU Safety at Work labor laws and import
restrictions. Turkey sold refined Iranian petroleum to Syria during a UN Sec Council embargo for
such imports to ISIL (Da’esh). If there is a will and a market, there is always a method to get
around t In contrast, globalization refers to the increase or decline in the degree of globalism. ...
In short, consider globalism as the underlying basic network, while globalization refers to the
dynamic shrinking of distance on a large scale. Globalism is a phenomenon with ancient roots.
Internationalism VS. Globalism
Internationalism is political, economic and cultural cooperation between nations while,

Globalism is an ideology based on the belief that people, goods and information ought to be
able to cross national borders unfettered.
Globalism Versus Globalization
In contrast, globalization refers to the increase or decline in the degree of globalism. ... In short,
consider globalism as the underlying basic network, while globalization refers to the dynamic
shrinking of distance on a large scale.
Globalism is a political ideology that puts interests of the world above those of individual
nations. This brings commitments to freer trade in goods, services and factors of production-
capital and labor. Globalism can be further explained in terms of economic, military,
environmental and socio-cultural globalism, towards an interconnected and interdependent
world.
Globalization, on the other hand, is the degree of globalism. It is a process of intensified cross-
border exchange of goods, services, capital, technology, ideas, information, legal systems, and
people. In economic terms, it is achieved through liberalization and opening up of national
economies for developing a global market.
Globalism can be achieved only when the process of globalization ensures principle of free
trade and fair competition through the democratic multilateral institutions. We need to put
concerted efforts towards ideals of globalism which will ensure a truly globalized society.
The terms globalism and globalization characterize the gradually evolving interaction and
integration of economies and societies around the world.
Globalism can be defined as the network of interconnectedness spanning multi-continental

distances drawing them close together economically, socially, informationally and culturally.
Globalization can be defined as the process of increasing the interconnectedness amidst
multiple continents. It is a process that deepens globalism (or) enhances the degree of
globalism.
There exists various dimensions of globalism and globalization, each has had and will have
profound impacts (good and bad) on humanity.
1. Environmental globalism/globalization: Can be regarded as the earliest dimension.

Environment and climate variations have dictated the location and numbers of human
population for millenias. Warming of global temperatures led to expansion of regions suitable for
human settlement. Ozone layer depletion and global warming are some contemporary adverse
effects of environmental globalism.
2. Biological globalism/globalization: Spread of crops such as maize & potato enabled humans
to lead settled lives. On the other hand spread of diseases such as small pox, plagues and HIV
have decimated human populations.
3. Strategic/Military globalism/globalization: Empires of Alexander, Romans, Mongols, Huns,

Mauryans & Mugals had conquered vast swathes of land across continents introducing military
globalization. Modern day events such as World Wars and Cold Wars involving opposing super
powers have introduced the dimension of strategic globalization.
4. Economic globalism/globalization: This dimension is the most commonly identified and

understood one. Economic globalization had improved productivity through increased capital
availability, technological innovation, labour migration and trade around the globe. However, it
has also brought about increase in economic inequality. Bilateral and multilateral trade
agreements (benefitial for a few) are proliferating at the cost of global free trade (benefitial for
all).
Other dimensions include information, cultural, educational and technological

globalism/globalization. Every dimension of globalism/globalization has contributed and will
contribute constructively and destructively to humanity. Humanity should collectively strive to
minimize the destructive effects and maximize the constructive effects.
Activity# 4 Watch the movie “Tears of the Sun” and write a Reaction Report. Relate to the topics
discussed.

LESSON 2:
D. CONTEMPORARY GLOBAL GOVERNANCE
Focus:
1. Identify the roles and functions of the United Nations;

2. Identify the challenges of global governance in the twenty-first century;
3. Explain the relevance of the state amid globalization
Source: https://globalchallenges.org/global-governance/
Global governance brings together diverse actors to coordinate collective action at the level of
the planet. The goal of global governance, roughly defined, is to provide global public goods,
particularly peace and security, justice and mediation systems for conflict, functioning markets
and unified standards for trade and industry. One crucial global public good is catastrophic risk
management – putting appropriate mechanisms in place to maximally reduce the likelihood and
impact of any event that could cause the death of 1 billion people across the planet, or damage
of equivalent magnitude. See here for a list of global catastrophic risks.
The leading institution in charge of global governance today is the United Nations. It was
founded in 1945, in the wake of the Second World War, as a way to prevent future conflicts on
that scale. The United Nations does not directly bring together the people of the world, but
sovereign nation states, and currently counts 193 members who make recommendations
through the UN General Assembly. The UN’s main mandate is to preserve global security,
which it does particularly through the Security Council. In addition the UN can settle
international legal issues through the International Court of Justice, and implements its key
decisions through the Secretariat, led by the Secretary General.
The United Nations has added a range of areas to its core mandate since 1945. It works
through a range of agencies and associated institutions particularly to ensure greater shared
prosperity, as a desirable goal in itself, and as an indirect way to increase global stability. As a
key initiative in that regard, in 2015, the UN articulated the Sustainable Development Goals,
creating common goals for the collective future of the planet.
Beyond the UN, other institutions with a global mandate play an important role in global
governance. Of primary importance are the so-called Bretton Woods institutions: the World
Bank and the IMF, whose function is to regulate the global economy and credit markets. Those
institutions are not without their critics for this very reason, being often blamed for maintaining
economic inequality.
Global governance is more generally effected through a range of organizations acting as

intermediary bodies. Those include bodies in charge of regional coordination, such as the EU or
ASEAN, which coordinate the policies of their members in a certain geographical zone. Those
also include strategic or economic initiatives under the leadership of one country – NATO for the
US or China’s Belt and Road Initiative for instance – or more generally coordinating defense or
economic integration, such as APEC or ANZUS. Finally, global governance relies on looser
norm-setting forums, such as the G20, the G7, the World Economic Forum: those do not set up
treaties, but offer spaces for gathering, discussing ideas, aligning policy and setting norms. This
last category could be extended to multi-stakeholder institutions that aim to align global
standards, for instance the Internet Engineering Taskforce (IETF) and the World Wide Web
Consortium (W3C).
In summary, global governance is essential but fragmented, complex and little understood. In
this context, the key questions raised by the Global Challenges Foundation are, how to reform
institutions, how to develop alternative institutions, and how to use the new possibilities of
technology to improve governance.
DEMONSTRATION/APPLICATION:
ACTIVITY # 5 Write a critique paper about president Duterte’s governance.

LESSON 3: GLOBAL POPULATION AND MOBILITY
A. THE GLOBAL CITY
Focus:
1. Identify the attributes of a global city
2. Analyze how cities serve as engines of globalization
Source: https://www.britannica.com/topic/global-city
Global city is an urban centre that enjoys significant competitive advantages and that serves as
a hub within a globalized economic system. The term has its origins in research on cities carried
out during the 1980s, which examined the common characteristics of the world’s most important
cities. However, with increased attention being paid to processes of globalization during
subsequent years, these world cities came to be known as global cities. Linked with
globalization was the idea of spatial reorganization and the hypothesis that cities were
becoming key loci within global networks of production, finance, and telecommunications. In
some formulations of the global city thesis, then, such cities are seen as the building blocks of
globalization. Simultaneously, these cities were becoming newly privileged sites of local politics
within the context of a broader project to reconfigure state institutions.
Early research on global cities concentrated on key urban centres such as London, New York
City, and Tokyo. With time, however, research has been completed on emerging global cities
outside of this triad, such as Amsterdam, Frankfurt, Houston, Los Angeles, Mexico City, Paris,
São Paulo, Sydney, and Zürich. Such cities are said to knit together to form a global city
network serving the requirements of transnational capital across broad swathes of territory.
The rise of global cities has been linked with two globalization-related trends: first, the
expansion of the role of transnational corporations (TNCs) in global production patterns and,
second, the decline of mass production along Fordist lines and the concomitant rise of flexible
production centred within urban areas. These two trends explain the emergence of networks of
certain cities serving the financial and service requirements of TNCs while other cities suffer the
consequences of deindustrialization and fail to become “global.” Global cities are those that
therefore become effective command-and-coordination posts for TNCs within a globalizing
world economy. Such cities have also assumed a governance role at the local scale and within
wider configurations of what some commentators have termed the “glocalization” of state
institutions. This refers to processes in which certain national state functions of organization and
administration have been devolved to the local scale. An example of this would be London.
Since the 1980s London has consolidated its position as a global banking and financial centre,
de-linked from the national economy.
The global city thesis poses a challenge to state-centric perspectives on contemporary

international political economy because it implies the disembedding of cities from their national
territorial base, so that they occupy an extraterritorial space. Global cities, it is suggested, have
more interconnectedness with other cities and across a transnational field of action than with the
national economy. Global cities are also said to share many of the same characteristics
because of their connectedness and shared experiences of globalization. They all exhibit clear
signs of deindustrialization. They possess the concentration of financial and service industries
within their spatial boundaries, as well as the concentration of large pools of labour. On the
downside, many also share experiences of class and ethnic conflict. They often have
segmented labour markets in which employees of key industries enjoy well-paid and
consumerist lifestyles while a lower stratum of workers staffs less well-paid, more precarious,
and less attractive positions within the urban economy. It has been further argued that the
promotion of global cities runs the risk of economically marginalizing nonurban populations
within the national economy.
Although global cities are interconnected, embedded as they are in global production and
financial networks, they are also locked into competition with one another to command
increasing resources and to attract capital. To successfully compete, local governments have
been keen to promote their cities as global. Such cities have been marketed as
“entrepreneurial” centres, sites of innovation in the knowledge economy, and as being rich with
cultural capital. A common strategy has been to stress the multiethnic qualities of a city, for
example. This is intended to stress its cosmopolitan and global character and to disassociate
the city from its actual territorial, ethnic, or cultural setting. Such cities also regularly compete to
host world events of considerable prestige that present further economic opportunities, such as
the Olympic Games.
ACTIVITY# 6 Make a list of cities considered as “Global Cities” and justify how they serve as
engines of globalization.

LESSON 3:
B. GLOBAL DEMOGRAPHY
Focus:
1. Explain the theory of demographic transition as it affects global population;
Source: https://www.nationalgeographic.org/encyclopedia/
Populations change over time. The growth or decline of a population can have an effect on the
quality of life for people within that population. In this lesson, you'll learn about the theory of
demographic transition, which is a model used to study and predict population changes.
Demography
Demography is the statistical study of human populations. Demographers look at information in

order to determine specific characteristics of a population.
The theory of demographic transition predicts how a population will change over time in regards
to the mortality and fertility rates as well as age composition and life expectancy.
What is the Demographic Transition Model?
The Demographic Transition Model (DTM) is based on historical population trends of two
demographic characteristics – birth rate and death rate – to suggest that a country’s total
population growth rate cycles through stages as that country develops economically. Each
stage is characterized by a specific relationship between birth rate (number of annual births per
one thousand people) and death rate (number of annual deaths per one thousand people). As
these rates change in relation to each other, their produced impact greatly affects a country’s
total population. Within the model, a country will progress over time from one stage to the next
as certain social and economic forces act upon the birth and death rates. Every country can be
placed within the DTM, but not every stage of the model has a country that meets its specific
definition. For example, there are currently no countries in Stage 1, nor are there any countries
in Stage 5, but the potential is there for movement in the future.
What are the stages of the Demographic Transition Model?
In Stage 1, which applied to most of the world before the Industrial Revolution, both birth rates
and death rates are high. As a result, population size remains fairly constant but can have major
swings with events such as wars or pandemics.
In Stage 2, the introduction of modern medicine lowers death rates, especially among children,
while birth rates remain high; the result is rapid population growth. Many of the least developed
countries today are in Stage 2.
In Stage 3, birth rates gradually decrease, usually as a result of improved economic conditions,
an increase in women’s status, and access to contraception. Population growth continues, but
at a lower rate. Most developing countries are in Stage 3.
In Stage 4, birth and death rates are both low, stabilizing the population. These countries tend to
have stronger economies, higher levels of education, better healthcare, a higher proportion of
working women, and a fertility rate hovering around two children per woman. Most developed
countries are in Stage 4.
A possible Stage 5 would include countries in which fertility rates have fallen significantly below
replacement level (2 children) and the elderly population is greater than the youthful population.
Limitations of the Demographic Transition Model
Like any model, there will be outliers and exceptions to the rule and the Demographic Transition
Model is no different. Additionally, there are things the DTM cannot reveal: the impact of other
demographic variables such as migration, are not considered, nor does the model predict how
long a country will be in each stage. But even so, the relationship between birth rate and death
rate is an important concept when discussing population and any patterns, such as those
provided by the DTM, that aid in understanding are helpful.
Demographic Transition Model Case Studies
Over a series of five posts we will explain each stage of the Demographic Transition Model in
depth and provide a case study for stages when there is a country that currently fits its
parameters.
ACTIVITY # 7 Search for the recent population of our country and explain by relating to the
theory of demographic transition.

LESSON 4: TOWARDS SUSTAINABLE WORLD
A. SUSTAINABLE DEVELOPMENT
Focus:
1. Differentiate stability from sustainability;

2. Articulate models of global sustainable development
Source: https://sustainabilityadvantage.com/2010/07/20/3-sustainability-models/
Sustainable Development is development that meets the need of the present without
compromising the ability of the future generations to meet their own needs.
Many of the challenges facing humankind, such as climate change, water scarcity, inequality
and hunger, can only be resolved at a global level and by promoting sustainable development: a
commitment to social progress, environmental balance and economic growth.
As a part of a new sustainable development roadmap, the United Nations approved the 2030
Agenda, which contains the Sustainable Development Goals, a call to action to protect the
planet and guarantee the global well-being of people. These common goals require the active
involvement of individuals, businesses, administrations and countries around the world.
The 2030 Agenda for Sustainable Development, adopted by all United Nations Member States
in 2015, provides a shared blueprint for peace and prosperity for people and the planet, now
and into the future. At its heart are the 17 Sustainable Development Goals (SDGs), which are
an urgent call for action by all countries - developed and developing - in a global partnership.
They recognize that ending poverty and other deprivations must go hand-in-hand with strategies
that improve health and education, reduce inequality, and spur economic growth – all while
tackling climate change and working to preserve our oceans and forests.
The Sustainable Development Goals, also known as the Global Goals, are a call from the
United Nations to all countries around the world to address the great challenges that humanity
faces and to ensure that all people have the same opportunities to live a better life without
compromising our planet.
The 3-overlapping-circles model The overlapping-circles model of sustainability acknowledges
the intersection of economic, environmental, and social factors. Depending on our mindset, we
re-size the circles to show that one factor is more dominant than the other two. For example,
some business leaders prefer to show the economy as the largest circle because it is the most
important to their success and it makes their world go round.
They draw society as the second largest circle because that is where their customers and other
important stakeholders live. The environment would then be the smallest because it is the most
external to standard business metrics. Unfortunately, this model implies that the economy can
exist independently of society and the environment—that the part of the red circle that does not
overlap with the blue and green circles has an existence of its own. This large incongruity leads
us to the next, more accurate model.
3-nested-dependencies model If you were to ask a maritime fisherman whether the devastating
collapse of the cod fishery off the east coast of Newfoundland was an environmental disaster, a
social disaster, or an economic disaster, he would say, “Yes.” The 3-nested-dependencies
model reflects this co-dependent reality. It shows that human society is a wholly-owned
subsidiary of the environment—that without food, clean water, fresh air, fertile soil, and other
natural resources, we’re cooked.
It’s the people in societies who decide how they will exchange goods and services. That is, they
decide what economic model they will use. Because they create their economies, they can
change them if they find their current economic models are not working to improve their quality
of life. To add another metaphor: the economy is the tail and society is the dog—not vice versa.
To be fair, the society-economy relationship is symbiotic. During the recent recession, the
economic downturn had a significant impact on people’s quality of life. Good jobs are so
important to a vibrant modern-day society that sustainability champions who portray the
economy as subservient to society are sometimes accused of being naïve about how the “real
world” works.
It might be useful to use the picture of Earth in the adjacent slide to remind some critics about
the real “real world.” This defining photo shows water, atmospheric clouds, and land—the
environment. The photo also reminds us of a stark reality—there is no umbilical cord going
somewhere else; we must live within the carrying capacity of the planet. We can’t see them in
the photograph, but clusters of people on land form societies within that larger environment.
And, it’s those societies which decide how they will exchange goods and services within and
between themselves—their invisible economies. The 3-nested-dependencies model reflects this
reality.
LESSON 5: CONCLUSION
A. GLOBAL CITIZENSHIP
Focus:
1. Articulate a personal definition of global citizenship;
2. Appreciate the ethical obligations of global citizenship
Source: http://www.ideas-forum.org.uk/about-us/global-citizenship
What is Global Citizenship?
It is a way of living that recognizes our world is an increasingly complex web of connections and
interdependencies. One in which our choices and actions may have repercussions for people
and communities locally, nationally or internationally.
Global Citizenship nurtures personal respect and respect for others, wherever they live. It
encourages individuals to think deeply and critically about what is equitable and just, and what
will minimise harm to our planet. Exploring Global Citizenship themes help learners grow more
confident in standing up for their beliefs, and more skilled in evaluating the ethics and impact of
their decisions.
What is a Global Citizen?
A Global Citizen is someone who:
- is aware of the wider world and has a sense of their own role as a world citizen respects
and values diversityhas an understanding of how the world works
- is outraged by social injustice
- participates in the community at a range of levels, from the local to the global
- is willing to act to make the world a more equitable and sustainable place
- takes responsibility for their actions.

To be effective Global Citizens, young people need to be flexible, creative and proactive. They
need to be able to solve problems, make decisions, think critically, communicate ideas
effectively and work well within teams and groups. These skills and attributes are increasingly
recognised as being essential to succeed in other areas of 21st century life too, including many
workplaces. These skills and qualities cannot be developed without the use of active learning
methods through which pupils learn by doing and by collaborating with others.
Why is Global Citizenship education needed?
"Education must be not only a transmission of culture but also a provider of alternative views of
the world and a strengthener of skills to explore them" Jerome S Bruner
With the interconnected and interdependent nature of our world, the global is not ‘out there’; it is
part of our everyday lives, as we are linked to others on every continent:
- socially and culturally through the media and telecommunications, and through travel and
migration
- economically through trade
- environmentally through sharing one planet
- politically through international relations and systems of regulation.
The opportunities our fast-changing ‘globalized’ world offers young people are enormous. But so
too are the challenges. Young people are entitled to an education that equips them with the
knowledge, skills and values they need in order to embrace the opportunities and challenges
they encounter, and to create the kind of world that they want to live in. An education that
supports their development as Global Citizens.
The active, participatory methods of Education for Global Citizenship and Sustainable
Development help young people to learn how decisions made by people in other parts of the
world affect our lives, just as our decisions affect the lives of others. Education for Global
Citizenship and Sustainable Development also promotes pupil participation in the learning
process and in decision-making for the following reasons:
Everything done in school sends out messages, so we need to exemplify the values we wish to
promote. If we wish to affirm beliefs about the equality of all human beings and the importance
of treating everyone fairly and with respect, we need to ensure that learning processes, and
relationships between pupils and teachers, reflect and reinforce these values.
Research shows that in more democratic schools pupils feel more in control of their learning,
and the quality of teaching, learning and behaviour is better.
The UN Convention on the Rights of the Child affirms the right of children to have their opinions
taken into account on matters that affect them.
ACTIVITY # 9: WRITE A MINI-RESEARCH PAPER ON A TOPIC RELATED TO
GLOBALIZATION

Post Assessment:
GLOSARRY:
CONTEMPORARY WORLD - consisting the seven continents of refers to all the countries the
globe.
GLOBALIZATION - integration of national markets to a wider global market signified by

increased free trade.
GLOBALISM - widespread belief among powerful people that the global integration of economic
world is beneficial for everyone since it spreads freedom & democracy
INTERNATIONALIZATION – is an intentional process, an empowering product and liberating

mindset that infuses the intentional multicultural dimension into the purpose functions and
delivery of post-secondary and continuing education while reinforcing the values, interests and
goals of the institution, national development and ASEAN community building.
GLOBAL ECONOMY- refers to the interconnected worldwide economic activities that take place
between multiple countries. It refers to the exchange of goods and services between different
countries, and it has also helped countries to specialize in products which they have a
comparative advantage in.
MARKET INTEGRATION - occurs when prices among different locations or related goods follow
similar patterns over a long period of time. Groups of goods often move proportionally to each
other and when this relation is very clear among different markets it is said that the markets are
integrated.
GLOBAL INTERSTATE SYSTEM - It is the whole system of human interactions. The modern
world-system is structured politically as an interstate system – a system of competing and
allying states. Political Scientists commonly call this the international system, and it is the main
focus of the field of International Relations.
CONTEMPORARY GLOBAL GOVERNANCE - encompasses activity at the international,

transnational, and regional levels, and refers to activities in the public and private sectors that
transcend national boundaries.
GLOBAL CITY - an urban center that enjoys significant competitive advantages and that serves
as a hub within a globalized economic system. The term has its origins in research on cities
carried out during the 1980s, which examined the common characteristics of the world's most
important cities.
GLOBAL DEMOGRAPHY - is the study of human populations – their size, composition and
distribution across space – and the process through which populations change. Births, deaths
and migration are the 'big three' of demography, jointly producing population stability or change.
GLOBAL MIGRATION - understood as a cause and effect relationship, though the causes are
just as numerous as their effects. People move across international borders for a variety of
reasons.
SUSTAINABLE DEVELOPMENT - is the idea that human societies must live and meet their
needs without compromising the ability of future generations to meet their own needs.
GLOBAL CITIZENSHIP - is someone who is aware of and understands the wider world – and
their place in it. They take an active role in their community and work with others to make our
planet more peaceful, sustainable and fairer.
MIGRATION - is the movement of either people or animals from one area to another.
IMMIGRATION - international movement of people to a destination country of which they are

not natives or where they do not possess citizenship in order to settle as permanent residents or
naturalized citizens.
REFUGEE - a person who has been forced to leave their country in order to escape war,
persecution, or natural disaster.
TERRORISM - the unlawful use of violence and intimidation, especially against civilians, in the
pursuit of political aims.
WESTERNIZATION - the adoption of the practices and culture of western Europe by societies
and countries in other parts of the world, whether through compulsion or influence.
FREE TRADE - also called laissez-faire, a policy by which a government does not discriminate
against imports or interfere with exports by applying tariffs (to imports) or subsidies (to exports).
A free-trade policy does not necessarily imply, however, that a country abandons all control and
taxation of imports and exports.
PREPARED BY: MRS. ELENA C. BERNABE, MPM, DM (CAR)

GC World Module

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HOLY INFANT COLLEGE

BSN, BSM & BSRT

Prepared by: Elena C. Bernabe, MPM, DM (CAR)

Lesson 1: DEFINING GLOBALIZATION

At the end of the lesson, the students should be able to:

Pre-assessment: (Answer the following questions):

Source: Bridgette Byrd O’Connor

Globalization is now a buzzword in twenty-first-century politics. This interconnection and

Globalization’s effect on communities and economies

The Pros and Cons of Globalization

Liberalism sees the process of globalization as market-led extension of modernization. At the

They fructify in the form of:

a) Technological advances, particularly in the areas of transport, communications and

2. Theory of Political Realism:

The neo-Marxists in dependency and world-system theories examine capitalist accumulation on

They conceive of themselves as inhabitants of a particular global world. National, class,

Some other ideational perspectives of globalization highlight the signifi-cance of structural

Accordingly, capitalists attempt to amass ever-greater resources in excess of their survival

Mindsets encourage or discourage the rise of globality. Modern rationalism is a general

Reflection:(State your reflection about the lesson)

A. THE GLOBAL ECONOMY

At the end of the lesson, students should be able to:

• Define economic globalization

Three suggested factors accelerated economic globalization:

1. Advancement of science and technology

Policy and government

Multinational corporations reorganized production to take advantage of these opportunities.

1. International governmental organizations

An intergovernmental organization or international governmental organization (IGO) refers to an

2. International non-governmental organizations (NGOs)

International non-governmental organizations include charities, non-profit advocacy groups,

International migrants transfer significant amounts of money through remittances to lower-

Economic Growth and Poverty Reduction

Global Supply Chain

Labor Conditions and Environment

"Race to the bottom"

Globalization is sometimes perceived as a cause of a phenomenon called the "race to the

Various transnational organizations advocate for improved labor standards in developing

Economic inequality includes equity, equality of outcome and subsequent equality of

According to modernization theory, low-income countries are affected by their lack of

1. An adjustment of cultural values and attitudes to work

Dependency theory was created in part as a response to the Western-centric mindset of

Reflection:(State your reflection about the lesson)

At the end of the lesson, students should be able to:

History of Global Market Integration

RISE OF FREE TRADE

Overview of International Financial Institutions (IFIs):

African Development Bank

Asian Development Bank

Caribbean Development Bank

European Bank for Reconstruction & Development

Inter-American Development Bank

Other IFIs & Institutions

African Development Bank (AfDB) - Country Strategy Papers

Asian Development Bank (ADB) - Country Planning Documents

Caribbean Development Bank (CDB) - Country Strategies

European Bank for Reconstruction and Development (EBRD) - Country Strategies

The Project Cycle

In general, the project cycle consists of the following stages:

Implementation and Supervision

The Role of Financial Institutions in the Creation of the Global Economy:

Characteristics of a Multinational Corporation

The following are the common characteristics of multinational corporations: