THE

STRUCTURES OF GLOBALIZATION:
The Global Economy,
Market Integration, The Global Interstate
System, Contemporary Global
Governance
• THE STRUCTURES OF GLOBALIZATION:
- Economic and political arenas as structures
1. The Global Economy – world economy as integral
element with economic players
2. Market Integration - international financial institutions
3. The Global Interstate System – nation-state relations
4. Contemporary Global Governance – United Nations
 THE
GLOBAL ECONOMY
 Steger (2014)
Expansion and intensification of
social relations and consciousness
across world time and space implies
that there are various forms of
connectivity.
Globalization is a multidimensional
phenomenon, creating
• Economic
• Political
• Cultural
• Technological
 ECONOMIC
GLOBALIZATION
Refers to the expanding
interdependence of world
economies.
 Shangquan (2000)
This attributes to the growing scale of
cross-border trade commodities and
services, flow of international capital,
and wide and rapid spread
In the Philippines of
technology.
The flow of international capital
can be observed in foreign direct
investments (FDI).
 Is a type of investment in which a
company establishes a business in
other country for production of goods
or services and still takes part in the
management of that business.
Toyota Motors Philippines Corp. is a subsidiary of
Toyota Motors Corporation based in Japan
• The flow of international capital can also be observed in
the following:
• Foreign portfolio investments
• Trade flows
• External assistance and external commercial borrowings
• Private loans
 International Monetary Fund

“Economic globalization refers to the

increasing integration of economies
around the world, particularly through
the movement of goods, services, and
capital across borders” (IMF, 2008).

It has historical origin. The Silk Road

• Network of trade routes that connected the East and the
West
• These (spice) routes also led to the discovery of the
Philippine Islands
• In the contemporary period, foreign expatriates come to the
country to manage their company’s foreign subsidiaries
 4 Interconnected Dimensions of Global
Economy
Benczes (2014)
1. Globalization of Trade of Goods and Services
2. Globalization of Financial and Capital Markets
3. Globalization of Technology and Communication
4. Globalization of Production
 Globalization of Trade of
Goods and Services

World Trade
Organization (WTO, 1995)
“Ensures that trade flows
as smoothly, predictably,
and freely as possible”
 Globalization of Trade of
Goods and Services

Emergence of china as a
major supplier and
exporter of
manufactured goods
 Globalization of Trade of
Goods and Services

Increasing number of
Business Process Outsourcing
(BPO) companies in the
Philippines
(cheap labor, Englisgh proficiency, customer service
skills, work ethic)
 Globalization of Financial
and Capital Markets

This is seen in cross-listing of

shares on one or more foreign
stock exchange, cross-hedging
and diversification of portfolio,
and round-the-clock trading
worldwide
(National Research Council,
1995)
 Globalization of Technology and
Communication

Emphasizes that various

transactions and
interactivities that transpire
instantly due to the internet
and communication
technology
 Globalization of Production

The fourth dimension is best

illustrated by the existence of
Multinational Corporations (MNCs)
and Transnational Corporations
(TNCs).
 Szentes (2003)

The process of "making the world economy

and 'organic system' by extending
transnational economic processes and
relations to more and more countries and by
deepening the economic interdependencies
among them."
 Boyer and Drache (1996)
The role of nation-states as manager of the
national economy is being redefined by
globalization.
Brodie (1996)
Calls the government as the "midwives" of
globalization
•Nation-States: Actors that
facilitate economic
globalization
 Ohmae (1995)
Argues that the nation-state has ceased to exist
as the primary economic organization until in the
global market.

Reich (1999)
Posits that national products, technologies,
corporations, and industries become obsolete.
•Global Corporations: Actors
that facilitate economic
globalization
 International Monetary System

Refers to internationally agreed rules,

conventions, and institutions for facilitating
international trade, investments, and flow of
capital among nation-states.

Thus, it facilitates economic globalization.

 3 Global IMS

1. Gold standard
2. Bretton Woods System
3. European Monetary System
•International Monetary
Systems: Actors that facilitate
economic globalization
•Is global economic integration
good or bad?
 GLOBALIZATION UNITES THE WORLD

1. Allows a worldwide distribution of incomes

2. Economic globalization reduces poverty
3. Globalization creates mutual dependence
between developing and developed countries
 GLOBALIZATION DIVIDES THE WORLD

1. Sources of goods and services are exploited

2. Economic globalization does not benefit all
nations
3. It further divides the world for it leads to
inequality according to expertise, experience and
skills.
 Economic globalization do not only affect one
country but all nations and citizens through the
increasing integration of economies around the
borderless world. The important players are
nation-states, global corporations, and the
international monetary systems. Lastly, some
people believe that this brings unity while others
believe that it furthers the separation among
nation-states around the world