MODULE 2

ECONOMIC GLOBALIZATION

According to Heywood, Economic globalization refers to the

process whereby all national economies have to a greater or lesser extent, been
absorbed into an interlocking global economy.

2 things definition of Heywood

1. The idea that economic dili na siya on domestic level but nahimo na syang global economy
means that you are now participating in the much bigger economy and that is a global economy.
You are absorbed in it, you are part of it so you are expected to participate in it.

Definition of a world bank

- Believes that economic globalization is a result of human innovation and technological processes.

Economic globalization is not just naturally in their na like nikalit ra syag boom
but it’s a result of a process and this process is a combination of human innovation, the
idea that we really need to enhance, innovate, keep moving forward and develop and
other than that combines technological progress that makes it possible to connect to
other economies.

IMF- It is characterized by increasing the integration of economies around the world through movements
of goods, services, and capital across borders.
● Not only part of a global economy but it has integration na nagaganp through a process of the
movements of good and services.
GLOBAL ECONOMY=GOODS AND SERVICE
●The purpose is to particularly deal with exchange rates balances
payments in international capital flow. Monitor what is happening in the
GLOBAL ECONOMY
● Provide expertise on that matter
● Giapautang ang mga countries para dili makuan ang domino effect in the economy.
● Provide loans to troubled economies to promote a stable world economy.
KUSOG MANGUTANG- PORTUGAL, GREECE, IRELAND, UKRAINE

WORLD BANK - 189 member states same as IMF

-sister organization of IMF
- purpose is reconstruction to finance the reconstructing the economy of certain states by war or such in
terms of transportation, communication, water system and other na mga need a country na naguba sa
world war.
- focuses on financing and investing in developing
countries, as well, as eliminating poverty as of the moment
-these changes are products of people, organization, institution, and technology

AFTER 1970- everybody kay nakabangon na sa world war so the world bank kay nag focus more the
idea of fighting of poverty
GLOBAL FINANCIAL COOPERATION- means encourage cooperation from other states to cooperate
on the global economy

Economic Globalization is about exports, selling, and buying kasi

may flow , not only domestic but also involves other countries. these
changes are products of people, organization, institution, and technology
at it is natural but ut is built and here we all can feel that.

Not natural but there are people involve like maynard kings and etch where there ideads help to
kuan the economy.
-more than trades

Services- involves the idea of kanang financial services, communication services, BPO, CALL
CENTERS. INTERNATIONAL SERVICEQ

capitals across borders that means ang capital kay not only invest in your own country but also investing
to other country /states

❖ Ang tawag sa state na iniivestan mo ng capital ay yung mga host states

❖ Ang tawag ng states na dun galing ang capital is homestates. Example: multinational
corporations yung mcdonalds is nag iinvest ng capital hindi lang sa us buut also other states
that’s there is flow of capital.

There is really an increase in the global economy/

world in terms of participation in each state.

According to IMF- World’s GDP increased from 42.1% in 1980 to 62.1% pin 2007.
57B dollars in 1982 but by 2015 the number was 1.76T dollars

Foreign Direct Investment

- The investment inside of your own country that incest it another states.
- 57B dollars in 1982 but by 2015 the number was 1.76T dollars

There is really increase in (global trade, exchange of goods and services around the globe.)

Economic globalization is not new, it happens before. Like trading system (Islam, Christianity in traveling
by trades or merchants, international trades.) Meron ng WORLD ECONOMY BEFORE.

Trades through stem engines, railroads, industrial revolutions and meron ng idea of communication by
Heywood

Merong naganap sa history natin that challenges our world economy as a whole

1. Idea of great depression- economic collapsed, stock market crash in US, that nahimo domino
effect throughout the economy means other countries also affected and naabot pa jud ang WW2-
idea is every nation participated in that war means there is great damage in the economy,
structure, lives. Need of restructuring by economic, political, and social of mga tawo.
DEVELOP THE IDEA OF SOLVE PARTICULAR ISSUE TO AVOID GEAT DEPRESIION TO HAPPEN
OR WAR.

BRETTON WOODS AGREEMENT/SYSTEM

- July 1944 in Mount Washington hotel Bretton woods. pr
- Dili na mahitabo ang mga nahitabo in the pasts and they believe that the great depression
happened because of lack of coopereation of other states.
- Means that other states are not involve

5KEY ELEMENTS OF BW

1. Currency expressed in terms of gold- that everybody had the idea of lowering the currency. If
dulaan kasi nimo ang currency kay delikado kay ma disrupt ang exchange rate nd world
economy, sa balance sa kwarta. EXAMPLE: if hinay economy kay weak anng currency kaysa sa
dollar.
If dako ang gap sa peso and dollar kay nice ni sya sa export. Means dako atong income.
2. Would agree to exchange its own currency established exchange rates.
3. International Monetary Fund (IMF) was created-
4. Member states agreed to eliminate all international trade restrictions
5. Based on US DOLLARS

44 COUNTRIES ARE PART IN BW part of that is the Philippines

GATT-GENERAL AGREEMENT ON TARIFFS AND TRADE ( aim into existence in 1947-1995)

- Agreement to reduce tariff, barriers, to help and facilitate
- Focused on trades in good means mamaligya kag products
- Focus on Forum for the meeting of representatives while the WTO, independent org
NAMUGNA AFTER ANA
- Focus on tariff reduction
- Not really org
WTO world trade organization
- Focus on services
- Naa stay member states
- multilateral organizations, lot of member states agreed in a specific agreement

DIFFERENCE OF GATT AND WTO

GATT focus on trades and goods then focus tariff reduction but WTO doesn’t focus lang trades and good
but includes also services then focus in non-tariff.
NON TARIFF BARRIERS, they are permitted, licensing, kuta.

FREE TRADE- not natural, it is belt means there is somebody who facilitates sa trading. Its there to boost
the products.
- The oldest international trade route was the silk road located across middle east Asia, Europe,
china. Ginatawag syag silk road kay no.1 ginabligya is silk.
- Remove barriers not just tax but also non tariff barries

It is actually a principle built on more people being freely available to engage in mutually beneficial
exchange and this would mean that the world’s resources are more used efficiently.
 AGREEMENT IN FREE TRADE
1. Reduce Tariff
2. reduce/ eliminate non-tariff barriers
3. Non-discrimination policies-dili ka mamili og countries sa product
4. National Treatment Rules- everyone and product is treated the same
5. Reciprocity- all countries should benefit from these particular trade agreements
6. Exemptions- agricultural product is protected in the Philippines, there is a certain
product that should be protected.

THE IDEA OF PROTECTIONISM

- Protecting your own economy by imposing tariff, tax impose in an imported product sa katong
imported products. IPhone kay patungan og presyon para dili maprotectang local products.
- Happens prior in Bretton woods, that most counties are protecting their product.
- Involves great depression na nahitabo also high tariff and restrictions kay dako kaayo like
daghang permit or kuta or patong so product
-
If you protect your own product, you are limiting the flow of income, profit, investment so wala gadagan
ang kwarta.

Maynard kings- he is a figure of economics.

 POLITICAL GLOBALIZATION
It talks about political flows, the idea that there is a change in the structure of the politics in the
global world
HEYWOOD- it is a process in which policy-making responsibilities have been passed from the
national government to international globalization that means the idea of politics is not just at the domestic
level but also the international political arena.

Where state and intergovernmental organization is the political actor, they exercise power
example for that is UN, European Union, ASEAN integration.

POLITICAL FLOWS
1. FLOW OF PEOPLE - immigrants and emigrants meron Silang impact in the nation-state.
Bordeerless disease, policymaking, WHO

THE TREATY OF WESTPHALIA HAPPENS IN 1648

- Peace of Westphalia that ends the 38 years war in Europe.

2 important things happened

1. The idea of recognition of sovereign state- highlights the idea of recognition that u recognize
that state is sovereign. It’s important that the states are independent, na hindi ka pwede
makielam sa domestic politics, and respect them
2. Treat them as equal, means the rights of self determination- every state is equal in terms of
sovereignty

CONCEPT OF NATION-STATE

Hyperglobalist believe that humihiina daw ang nation-state sa global affairs but
according to transnationalism is hindi like nanchange lang ang function nila.

THERE are nations na walang state called as STATELESS NATION example,

the curds in the Arab world, Palestinian, Uyghur.

According to Michael sudaroo, nation 2001, is a large group of people whose

members believe they belong together on the basis of shared identity as a people. The
connection is more than political.

NATION
- Is called is the unit of a culture where culture encompasses the way of life, tradition, language,
and history.
1. Language- a common language
2. Culture
3. history
- Imagined community by benedict anderson, youhave a sense and connection even though you
dont see tanan filipino. Like bisan makit an nimo sa ibang bansa ang filipino naa gyud
connection.\
STATE
 - A political unit. According to Max, is a human community where political organization claims a
monopoly of the legitimate use of works in the given territory.
- Much of a larger concept because the government is part of the state.

STATE HAS ELEMENTS

1. People- inhabitants of the state

2. Territory- is the concrete geographical area in which state settle
3. Sovereignty- hindi nakikipagcontrol \
4. Government- machinery of the state, hand

(STATE pwede na maraming nation then NATION kay walang state) USA- federal states wherein they
have 50 states.

Nation- the strong sense of identity as a nation

State - is a political (where they have strong nation-state is japan)

THREATS TO NATION-STATE
1. global economy threatens our nation-state specifically we adjust to the demand of it.
2. Flow of information - arab spring
3. Illegal immigrant- terrorism

INTERNATIONAL ORGANIZATION
- UN WORLD BANK, WTO, IMF, AND PINAKA FAMOUS IS UNITED NATIONS, united stations
prior na meron tinatawag na league of nation, were to prevent world war but didn’t.

United nation
- prevent world war to happen.
- 193 countries members
- The concern is military, economic, environmental, and human protection issue
Organs of UN
Originally there are 6 but currently there only 5
1. SECURITY COUNCIL- maintain international peace and merong tinatawag na permanent 5
glass, 15 members ang SC, 10 members kay elected by the general assembly and permanent
5, in the sense na hindi sila napapalitan, sila ay the US, CHINA, RUSSIA, UK, AND FRANCE.
Since they are the winner of WW2.
2. GENERAL ASSEMBLY
3. SECRETARIAT
4. ECONOMIC AND SOCIAL COUNCIL
5. INTERNATIONAL COURT OF JUSTICE
Former is trusteeship council

VETO - gistop bitaw nimo the resolution 1

 CULTURAL GLOBALIZATION
The idea of the media
- Facilitate
- No globalization if wala ito since without this no spread of information or globalization.
- Literally means of conveying information

Importance of media in Globalization

- Used by people or advocates of globalization for a larger audience
- The market could not evolve
- Music wouldn’t spurs
MEDIAS
- Printmedia, magazines newspaper
- broad cast media, radio, tv
- Digital media, social media, the internet

ACCORDING TO MAC LOHAN, media is a double-edged sword. Example: the global village and the
tribal village, b4 kalayo fire then magtalk with a friend but now laptops and all

Prons are the spread of information

Cons is it reshaped society, maybe it can be better, or as worst like the way of life, the culture