Ged105 MMR1 Aquino

Metacognitive Reading Report #1
Economic Globalization: A Crucial Component Towards the Building of the National

Foundations
(Word Count: 1438)
Globalization is a huge factor towards the integration and interdependence of the
world as it aims to provide support through the access of goods, technologies, and other
services between multiple countries. The same can be said with economic globalization
which is one of the three main dimensions of globalization. An example would be the
import and export of goods and services that creates the action of negotiation, buying,
and selling that helps globalize the economy through the beneficial relationship that was
made during the trade interaction. With the existence of economic globalization, it has
intensified the economic exchange and economic corporations in the international
market of the world wherein the production capabilities are expanding throughout the
past year and is still gradually increasing up until now. It has also helped develop the
country’s fragmentation of production in the trade industry. But globalization, in theory, is
still far from being perfected that needs additional years of preparation in order to
perfect it. Which is why measures and determinants were made as a starting point in
order to be able to further understand the micro and macro details inside the
progression of economic globalization through the creation of theories, approaches, and
explanations as references to be able to measure the trade flows, factor movements,
and convergence of prices (goods, factor, assets) of the economic globalization.
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After reading the article entitled “Economic Globalization: From Microeconomic
Foundation to National Determinants”, there are three things that I significantly learned
from the reading. First of all, globalization cannot be defined as it is a wide complex
aspect that cannot be given any limitations as it is constantly evolving through the
continuous exchange of anything with different multiple countries. Instead, the
definitions are separately distributed to the sub-components of globalization such as
economic, political, social, etc. Another factor that prohibits us from giving a defined
term for globalization is the constantly changing character of it through the existence of
two main drivers which are crisis and investment that are both unpredictable in the
economic world. The second learning was that in order for us to study the causes and
consequences of globalization systematically, current tools were made in order to able
to measure the globalization progress which is classified into two
categories: markers estimating one specific part of globalization and indexes built on
various factors used to rank and look at globalization in changed nations. The difference
between indicators and indexes is that indicators come from organizations that have a
wide database and information such as the European Union, World Bank, International
Monetary Fund that gives a summary of a specific concept to globalization while the
indexes come from independent persons either from universities and research centers
that combines all scores or information gathered then combining them all together to be
able to form a single result or conclusion. Lastly, the third learning was that there are
prominent globalization indexes that currently exist to create a bridge on the gaps of our
understanding of globalization that will give us a transparent and significant point of
view to be able to further grasp the structure and essence of the globalization world. To
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name a few of those indexes, we have the 2002 KOF Index of Globalization constructed
in Dreher (2006) that covers 122 countries for the period from 1970 to 2002 and the
Maastricht Globalization Index (MGI) which was developed by Martens and Zywietz
(2006), and Martens and Raza (2009) that refers to a cross-section of 117 countries.
The difference between these two indexes is that the MGI index uses a rational and
scientific manner that focuses on the political, economic, social and cultural,
technological, and ecological dimensions. While the KOF index utilizes the empirical
manner in observing three of its dimensions which are economic, social, and political
globalization. The MGI and KOF indices can be very similar in many respects but there
are still micro differences between these two such as the methodological approach, the
adjustment of variables, methods for normalizing, how variables are weighted, etc.
The article provided only brief information regarding the entirety of
globalization which is why I find it hard to understand some concepts such as on what
action or approach should we be utilizing towards globalization, whether it be the micro
or macro determinants towards the development of the countries. There is also that
confusion where it was not indicated how the statistical tool or indices would be used
when trying to measure the dimensions or the current degree of globalization, there was
no clear instructions or data when processing the data of the indicators and indices.
Lastly, it was unclear to me that globalization still struggles in being a perfect concept
and fails to recognize the current problems or pitfalls in the structure of it despite the
different methodologies, choice of variables, weights, theories, measurements, and so
on.
3
Before reading the article entitled “Economic Globalization: From Microeconomic
Foundation to National Determinants”, I used to think that globalization was a new
phenomenon in the 2000s but it turns out that this is already the third wave and the first
wave of globalization happened somewhere between 1880 and 1913 while the second
wave happened after the Word War 2. I also used to think that globalization had no
rooms for disadvantages or consequences towards the relationship between countries
because after all, they are exchanging something on both parties which in return
creates a mutual relationship but it turns out not it was not living to what was promised
to use because at the moment globalization creates micro and macro determinants in
the global output such as the consumption of finite resources, a competition where less
developed countries receive less attention than the developed countries, sabotaging
other countries when a crisis becomes present because they have after all linked to one
another and much more problems that will arise in the future. Lastly, I used to think that
globalization was just a natural occurrence that did not need any experimentations or
testing but that changed when I learned the statistical tools and indices that were used
when measuring the rate of globalization around the world to be able to track the
investments and crisis happening per country in the world and develop a conclusion that
could improve and further the develop the globalization we currently we know.
These are the following question that I want to ask after reading the article:
 How to measure the globalization output using the statistical tools and indices
that were mentioned in the article?
4
o It was said that indicators were present and were used by different
organizations such as the OECD, European Union, and the World Bank in
calculating indices of globalization, but it was never mentioned and clearly
stated how was it used or how was it applied when measuring the
globalization output.
 Which approach of globalization would benefit the country in its development of
the foundation, will it be the micro or macro determinants?
o Although it is discovered that microeconomic decisions of firms and
organizations are relevant to globalization, I would want to find out more
about the significance of macroeconomic components.
 What is the current progress of globalization, has it gone far or not far enough, or
has it been heading in the wrong direction?
o Globalization is a complicated matter to be handled as it influences and
interacts with different dimensions of the global world which makes it hard
for the indicators, statistical, tools, and indices to be able to come up with
results that are beneficial and solutions that can accurately address
issues.
A brief overview on articles such as the globalization article that was mentioned
allows students, researchers, professors, or any other persons to further deepen his/her
understanding on his/her basic knowledge about globalization and be able to learn
something new with the perspective of other people. With regards to the condition of
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globalization, it is still indeed developing nations through the influences of innovations
from multiple countries whether be it the micro or macro determinants, however, while
there are numerous advantages to globalization, there are drawbacks that are
conspicuous in underdeveloped nations. As much as globalization has benefits in
principle it needs long periods of arrangements to make the qualitative and quantitative
analyses possible and be able to address the current issues before the globalization
creates further macro problems from the micro problems that previously existed.
Through this thinking, we should be able to utilize the theories, mechanisms, and
researches and be able to explore and create new significant concepts and principles to
avoid crisis and change the current globalization that we currently know of as of today.
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Metacognitive Reading Report #1

Economic Globalization: A Crucial Component Towards the Building of the National

Globalization is a huge factor towards the integration and interdependence of the

intensified the economic exchange and economic corporations in the international

country’s fragmentation of production in the trade industry. But globalization, in theory, is

progression of economic globalization through the creation of theories, approaches, and

explanations as references to be able to measure the trade flows, factor movements,

and convergence of prices (goods, factor, assets) of the economic globalization.

continuous exchange of anything with different multiple countries. Instead, the

definitions are separately distributed to the sub-components of globalization such as

consequences of globalization systematically, current tools were made in order to able

to measure the globalization progress which is classified into two

understanding of globalization that will give us a transparent and significant point of

The article provided only brief information regarding the entirety of

action or approach should we be utilizing towards globalization, whether it be the micro

different methodologies, choice of variables, weights, theories, measurements, and so

Foundation to National Determinants”, I used to think that globalization was a new

rooms for disadvantages or consequences towards the relationship between countries

that were mentioned in the article?

calculating indices of globalization, but it was never mentioned and clearly

 Which approach of globalization would benefit the country in its development of

the foundation, will it be the micro or macro determinants?

o Although it is discovered that microeconomic decisions of firms and

organizations are relevant to globalization, I would want to find out more

about the significance of macroeconomic components.

has it been heading in the wrong direction?

o Globalization is a complicated matter to be handled as it influences and

understanding on his/her basic knowledge about globalization and be able to learn

conspicuous in underdeveloped nations. As much as globalization has benefits in

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