RELEVANCE OF THE COURSE – Studying the
outside world is a cure to parochialism. This
expansion of one’s ethical horizon is what it means
to be a global citizen. You will be haunted by “Ghost
of Comparisons” (Jose Rizal)
GLOBALIZATION – Primarily an Economic
Process. It is the increased of interconnectedness and
interdependence of peoples and countries. The two
interrelated elements are:
• The opening of international borders to
increasingly fast flow of goods, services,
finance, people, and ideas
• The changes in institutions and policies at
national and international level that facilitate
and promote such flows
GLOBALIZATION 1.0
• Started at year 1492 – 1800
• “Age of Voyages” pioneered by Ferdinand
Magellan
• Trading and Migration are some elements of
globalization
GLOBALIZATION 2.0
• Began in the 1820s (late 19th to early 20th
century)
• Industrial Revolution – the machinery was
introduced to a man, caused culture shock,
and led to widespread globalization.
• Economies and cultures grew very quickly
GLOBALIZATION 3.0
• 2000 to present
• The term globalization has established its
current meaning. It becomes a strategy and
phenomenal in a sense that they have never
been experienced substantial interconnected
and interdependence before
GLOBALIZATION 4.0
• “Kingdom Starter” – forming of groups of
countries
• It has only just begun, but we are already
vastly under prepared for it (Klaus Schwab)
GLOBALIZATION SCHOLARS – They view the
process through various lenses that consider multiple
theories and perspective (interdisciplinary approach)
MANFRED STEGER
• Expansion – both the creation of new social
networks and multiplication of existing
connections that cut across traditional
political, economic, cultural and geographic
boundaries
• Intensification – refers to stretching and
acceleration of these networks. Not only are
global connections multiplying, but they are
also becoming a closely knit and expanding
their reach.
THOMAS FRIEDMAN
• The inexorable integration of markets,
transportation systems and communication
systems to a degree never witnessed before –
in a way that is enabling corporations,
countries and individuals to reach around the
world farther, faster, deeper and cheaper than
ever before.
ARJUN APPADURAI
• Avoid talking about globalization as just one
whole process at a large scale but to discuss
“multiple globalization”
o Ethnoscape – refers to the global
movement of people
o Mediascape – flow of culture
o Technoscape – refer to the
circulation of mechanical goods and
software
o Financescape – denotes the global
circulation of money
o Ideoscape – realm where political
ideas move around
GLOBALISM – Widespread ideology/ belief that • Minimize trade barriers such as capitals
the global integration of economic market is moves freely and ensures smooth movement
beneficial to everyone since it spreads freedom and of resources, goods, and services
democracy across the world
HIGH FREQUENCY TRADING
EMERGENCE OF GLOBAL TRADE
• A method of trading that uses powerful
• When there is continuously exchange of computer programs to transact a large
products with each other directly or indirectly number of orders in fractions of a second
• When there were values sufficient to generate
MULTINATIONAL CORPORATION
lasting impacts on all trading partners
• large and powerful organizations that feature
REASON FOR TRADE
a worldwide business presence and direct
• Greater Variety of Good and Services investments in foreign countries
• Economic Growth and Development
INTERNATIONAL TRADING SYSTEM – a
• Flow of New Ideas
Play a significant role in the development of the
• Needed Resources Acquired industrialized world. It is a trade within a continent.
• Increased Competition and Efficiency
THE SILK ROAD
• Reduction of International Hostilities
• Oldest known international trading system
ECONOMIC GLOBALIZATION – Historical
• A network of pathways in the ancient world
process representing the result of human innovation
(China to Middle East and Europe)
and technological progress. Characterize by a drastic
• Han Dynasty (130 BCE) until Ottoman
economic change throughout the world and an
Empire (1453 BCE)
increasing interdependence of world
FORMS OF GLOBALIZING TRADE – Known
NEW ECONOMY
as Intercontinental trade for it has a definite oceanic
• The interconnections of various components route
of production depends on favorable factors
THE GALLEON TRADE
such as cheap labor, raw materials, skilled
labor, and market consumer • Established in 1571 that connected Manila
and Acapulco Mexico
TWO DRIVING FORCES OF ECONOMIC
GLOBALIZATION • Role of Filipino are slaves, they become sole
means of communication however it serves
• The rapid growing significance of as the age of enlightenment for ilustrados
information in all types of productive
they use the galleon ship as a means of
activities
transportation to study in Europe
• Marketization – introduction of competition
AGE OF MERCANTILISM
into the public sector
• Began in the 16th century to 18th century, it is
FREE TRADE
the continuation of galleon trade
• Engine of Economic Globalization which
• It is a system of global trade with multiple
allows the use of technological advances and
restriction such as increase of taxes
differences between regions
 • It has a “Sell more and Buy less or Export
more and Import less” policy to boost their
country’s income (called monetary reserves
later on)
GOLD STANDARD
• Adopted at an International Monetary
conference in Paris by the UK, US and other
European countries.
• Main goal was to create a common system
that would allow for more efficient trade and
prevent isolationism of the mercantilist era.
• Established a common basis for currency
prices and a fixed exchange rate system based
on the value of gold
• Restrictive system that compelled country to
back their currencies with fixed gold reserves
GREAT DEPRESSION (1920 -1930) further
emptying government coffers and was largely caused
by the gold standard because the governments’
capacity to print money and increase the money
supply was severely curtailed It is the worst and
longest recession experience by the western world
RECOVERY OF THE UNITED STATES began
when the gold standard was abandoned in the early
20th century that enable US government to free up
money to spend on reviving the economy. Indirect
version of gold standard was used until late 1970s
FIAT CURRENCIES
• Floating currency is pioneered by European
countries for they have low gold reserves
• It is a currencies that are not backed by
precious metals and whose value
determined by their cost relative to other
currencies
• System that allows governments to freely and
actively manage their economies
increasing or decreasing the amount of
money in circulation as they see fit.
THE BRETTON WOODS SYSTEM – The
landmark system for monetary and exchange rate
management. Developed at the UN Monetary and
Financial Conference held in Bretton Woods, New
Hampshire, from July 1 to July 22, 1944 that has a
delegate from 44 countries.
KEYNESIAN THEORY
• Economic crises occur not when a country
does not have enough money, but when
money is not being spent and thereby, not
moving
• Global Keynesianism – anchored active
role of the government in managing
spending when economies slow down.
o Designers of the system: John Maynard
Keynes, of the UK, Harry Dexter White,
the Chief International Economist of the
Treasury Department.
• It became fully functional when currencies
became convertible in the year (1958)
• In order to convert currencies, countries
settled their international balances in dollars.
INTERNATIONAL MONETARY FUND
• The global lender of last resort to prevent
countries from spiraling into credit crises
• Introduced in December 1945 that is signed
by 29 members of the Articles of Agreement
WORLD BANK
• Old name of world bank is “International
Bank for Reconstruction and
Development”
is • Set up to provide financial assistance for
countries during the reconstruction post
World War II phase
FALL OF BRETTON WOOD SYSTEM
by
• The 1973 oil crisis – Organization of the
Petroleum Exporting Countries imposition of
oil embargo to US and other countries
 • Overvaluation of the US dollar and increased
corruption in governments
NEOLIBERALISM
• Friedrich Hayek and Milton Friedman stated
that the government’s intervention
economies distort the proper functioning of
the market. A phenomenon called stagflation,
in which a decline in economic growth and
employment and a sharp increase in prices
• Known as “Shock Therapy” since it affected
certain industries thus die
• 1980s – 2000s it became the codified strategy
of U.S Treasury Department, World Bank,
International Monetary Fund, and World
Trade Organization – a new organization
founded in 1995 to continue the tariff
reduction under the GATT.
THE NEW WASHINGTON CONSENSUS
• Its advocates (Reagan and Thatcher) pushed
for minimal government spending to reduce
government debt.
• Privatization of government-controlled
services like water, power, communications
and transport believing that the free market
can produce the best results.
• They pressured governments, particularly in
the developing world to reduce tariffs and
open up their economies arguing that is the
quickest way to progress.
GLOBAL FINANCIAL CRISIS
• 1990s, the IMF called for the immediate
privatization of all government industries.
Which would free industries from corrupt
bureaucrats and pass them on to the more
dynamic and independent private investors.
That resulted to oligarchy
• Government authorities failed to regulate bad
investments. The US housing market, made
Americans built houses beyond their
financial capacities
• To mitigate the risk of these loans, bank that
were lending investors’ money pooled these
mortgage payments and sold them as
in “mortgage-backed securities. There were
surplus of money and home prices stopped
increasing as supply caught up with demand.
In their haste to issue these loans, the bank
became less discriminating that they began
extending loans to individuals with dubious
records
MARKET INTEGRATION – The fusing of many
markets into one. Occurs when group of goods often
move proportionally to each other and when prices
of related goods among different locations follow
similar patterns over a long period of time
DEGREE OF INTEGRATION
• Ownership Integration – when all the
decisions and assets of a firm are completely
assumed by another firm
• Contract Integration – involves an
agreement between two firms on certain
decisions
REASONS FOR MARKET INTEGRATION
• To remove transaction cost
• To foster competition
• To improve security of supplies
• To provide better signals for optimal
generation and consumption decisions
TYPES OF MARKET INTEGRATION
• Horizontal Integration – occurs when a firm
or agency gains control of other firms
performing similar marketing functions at the
same level in the marketing sequence (Red
Ocean Strategy)
o Mergers – joining of two similar
sizes, independent companies to
make one joint entity
 o Acquisition – the purchase of another
company
o Hostile Takeover – acquisition of the
company which does not want to be
acquired
• Vertical Integration – can be manifested in
a company that operates in the production
process of the same industry
o Backward Integration – company
that supplies the products or services
needed for the product (raw material,
manufacturing, labor)
o Forward Integration – only has a
physical store to reach his customer
o Balanced Vertical Integration – a
combination of forward and
backward integration
• Conglomeration – describes the process by
which a parent company begins to acquire
subsidiaries; a company that diversifies
GLOBAL MARKET INTEGRATION – Comes
along with the globalization 2.0. It revolutionizes
every movement of man. These connected the
world’s ports to each other.
• Means that price differences between
countries are eliminated as all markets
become one
• Promotes economic integration which can
reduce the cost of trade, improve the
availability of goods and services, and
increase consumer purchasing power in
member nations
• Employment opportunities tend to improve
because trade liberalization leads to market
expansion, technology sharing, and cross
border investment
ORDER IMBALANCE – occurs when a market
exchange receives an excess of buy or sell orders for
a specific commodity, making it impossible to match
the orders of buyers and sellers
GLOBAL GOVERNANCE – The governing of all
the government. It is an international process of
consensus-forming that generates guidelines and
agreements in which global affairs are managed
typically involves a range of actors including states
as well as regional and international organizations.
SOURCES OF GLOBAL GOVERNANCE
• Treaties – done when states sign and form
organizations which is binding at
international law. It is the process legislating
international law (International rules that
govern interactions between states)
o Multilateral – enacted through UN
Conventions
o Bilateral – agreement between two
countries only
GAPS IN GLOBAL GOVERNANCE
• Knowledge Gaps – failure to identify and
recognize the existence of a problem.
• Normative Gaps – failure to develop rules
and laws to address the problem.
• Policy Gaps – failure to implement rules and
laws.
• Compliance Gaps – failure among the
constituents to adhere to the policies
• Institutional Gaps – failure to establish
image and the advocacies of the institution.
GLOBAL INTERSTATE SYSTEM
• 30 years religious war in the Kingdom of
West that resolve in a treaty called “Treaty of
West Phalia”
• First major challenge of Westphalian System
is Napoleon Bonaparte for he believed that
liberty, equality, and fraternity. Every
country he conquered he implemented the
Napoleonic Code that forbade birth
privileges, encouraged freedom or religion,
and promoted meritocracy in government
system
 • Internationalism is a political principle that
advocates greater political or economic
cooperation among states and nation
• Immanuel Wallerstein propose the Modern
World-System (to serve and protect the
interest of the capitalist based on unequal
division of labor) wherein he categorized the
three-tiered structure of the Global Interstate
System (Core, Semi-Periphery, Periphery)
o Structure politically of human
interactions is a structure of
competing and allying states
FEATURE OF GLOBAL INTERSTATE
SYSTEM
• Their relation to other state should have
collapsing stratification because the
treatment of GIS is equal (sovereign equality)
• They should be politically an independent
country
• Balance of Power- forming of alliances and
maintaining social status
ATTRIBUTES OF TODAY’S GLOBAL
SYSTEM
• Countries or states are independent and
govern themselves
• Countries interact with each other through
diplomacy
• International organizations like UN facilitate
these interactions
• Beyond simply facilitating meetings between
states, international organization also take on
lives of their own
NATION
• They do not go beyond a given official
boundary because rights and responsibilities
are mainly the privilege and concern of the
citizens of that nation.
• They limit themselves to people who have
imbibed a particular culture, spoke a common
language, and live in a specific territory.
• Nation allows one to feel a connection with a
community of people even if he/she will
never meet all of them in his/her lifetime
ELEMENTS OF STATE
• It exercises authority over a specific
population called its citizens
• It governs a specific territory
• State has a structure of government that
crafts various rules that society follow
• The state has sovereignty over its territory
o Internal Sovereignty – no individuals
or group can operate in a given
national territory by ignoring the state
(supreme authority)
o External Sovereignty – means that
state’s policies and procedures are
independent of the interventions of
other state (not controlled by any
nation)
INTERNATIONAL ORGANIZATIONS (IOs) -It
is primarily made up of member-states. Help to fulfill
global government. Fallacy about NGO’s is that they
are merely talk-shop and venues of contracting and
intersecting agendas of countries however they can
become influential and powerful enough to stand
alone.
POWERS OF IOS
• Power of Classification – IOs can invent and
apply categories in which they invent
powerful global standards
• Power to Diffuse Norms – IOs spread their
ideas across the world thereby establishing
global standards (norms are aceppted codes
pf conduct that may not be strict law)
• Power to Fix Meanings – States and
organizations view IOs as legitimate sources
 of information. As such, the meanings they
create have effects on various policies
5 ORGANS OF UNITED NATIONS
GENERAL ASSEMBLY
• UN’s main deliberative policymaking and
representative organ.
• Decisions on important questions, such as
those on peace and security, admission of
new members and budgetary matters require
two-thirds majority of the GA (UN Charter).
INTERNATIONAL COURT OF JUSTICE
• The GA elects the president to serve a one-
year term of office. All member states
(currently at 193) have seats in the GA.
• The Philippines played a prominent role in
the GA’s early years when Filipino Diplomat
Carlos P. Romulo was elected president
from 1949-1950.
UN SECURITY COUNCIL
• The most powerful organ to the UN. Consists
of 15 member states, in which the GA elects
ten of these 15 to two-year terms. The other
five-sometimes referred to as the Permanent
5 (P5) – China, France, Russia, the United
Kingdom and the United States.
• They lead in determining the existence of a
threat to the peace or an act of aggression and
calls upon the parties in dispute to settle the
UN SECRETARIAT
act by peaceful means and recommends
methods of adjustment or terms of settlement.
• They can resort to imposing sanctions or even
authorizing the use of force to maintain or
restore international peace or security.
• States that seek to intervene militarily in
another state need to obtain approval of the
Security Council.
• P5 holds veto power over the council’s
decision and it only takes one veto vote to
stop an SC action dead in its track
ECONOMIC AND SOCIAL COUNCIL
• The UN’s central platform for discussion on
sustainable development. Principal body for
coordination, policy review, policy dialogue,
and recommendations on social and
environmental issues, as well as the
implementation of internationally agreed
development goals. (Planet, Power, Profit)
• It has 54 members elected for three-year
terms.
• Whose task is to settle in accordance with
international law legal disputes submitted to
it by states
• They give advisory opinions referred to it by
authorized UN organs and specialized
agencies.
• The court as such cannot try individuals
(International criminal cases are heard by the
International Criminal Court), which is
independent of the UN).
• Its decisions are only binding when states
have explicitly agreed to place themselves
before the court’s authority.
• The SC may enforce the rulings of the ICJ,
but this remains subject to the P5’s veto
power.
• Consists of the Secretary –General and tens
of thousands of international UN staff
members who carry out the day-to-day work
of the UN as mandated by the General
Assembly and the other principal organs.
• It is the bureaucracy of the UN, serving as a
kind of international civil service.
• Members of the secretariat serve in their
capacity as UN employees and not as state
representatives.
CHALLENGES OF THE UNITED NATION –
UN is not a world government and its functions
primarily because of voluntary cooperation from
states
COOPERATION AMONG MEMBER STATES
• If states refuse to cooperate, the influence of
the UN can be severely circumscribed
PROMOTION OF INTEREST OF
COUNTRIES.
• They are finding formula that would give
major powers a greater role in the UN while
still recognizing the need of all country to
have a voice. They are finding answers on
how to accommodate the national self interest
of large and small powers
INTERNATIONAL PEACEKEEPING
• The UNSC is tasked with authorizing
international acts of military intervention.
• Because of the P5’s veto power, it is tough
for the council to release much more to
implement a formal resolution.
The Brandt Line was developed by Willy Brandt in
1980s as a way of showing how the world was split
into relatively richer and poorer nations.
GLOBAL NORTH AND GLOBAL SOUTH
• Describes a grouping of countries along
socio-economic and political characteristics.
o differing levels of wealth and income
o political and economic freedom
• The terms the North and the South are
alternative designations for developed and
developing countries
CHARACTERISTICS OF GLOBAL NORTH
• Established Government and Wealth
• Technological Advancement and Political
Stability
• Aging Population and Zero Population
Growth
• Dominance of World Trade and Politics
Mostly correlates with the Western world with
notable exceptions (America, Canada, Japan,
Europe, South Korea, Singapore, Australia, New
Zealand)
CHARACTERISTICS OF GLOBAL SOUTH
• Most of these countries are low-income and
often politically or culturally marginalized on
one side of the divide
• Described as newly industrialized or in the
process of industrializing
• They are frequently current or former
subjects of colonialism
• Tend to be characterized by turmoil, poverty,
anarchy and tyranny.
Term often used to identify regions within Latin
America, Asia, Africa and Oceania (Philippines,
Malaysia, Haiti, Lebanon, Chad, Brazil)
GLOBAL SOUTH ORIGINS
• The presidents of Egypt, Ghana, India,
Indonesia and Yugoslavia created the Non-
Aligned Movement in 1961 to pursue
international cooperation, human rights,
national sovereignty, racial and national
equality, non-intervention and peaceful
conflict resolution. (120 member countries)
• Countries that formed regional blocs to
protect their independence from pressures of
superpower politics
• Non-aligned because they refused to side
with either the Capitalist Western Europe and
North America or Communist Eastern
Europe.
• Lack the burning desire, loyalty, sense of
belongingness (fervor) to keep the block alive
REGIONALIZATION the process through which
geographical regions become significant political
and/or economic units serving as the basis for
cooperation and identity. REGIONALISM – a
phenomenon on the clustering of environmental,
economic, social and governmental factors. It
emphasizes the geographical region as the unit of
analysis, stressing interrelationships and functions
within the geographic region (W.P Scott).
CHARACTERISTICS OF REGIONALISM
• Local Identity – citizens feel pride in the
local culture of its people
• Autonomy – results to more power to
administer economic resources and modify
fiscal policies
• Psychic Phenomenon – prohibits people
from other regions to be benefitted by a
particular region
FERVOR
• The expression of a common sense of identity
and purpose combined with the creation and
implementation of institutions that express a
particular identity and shape collective action
within a geographical region.
OLD REGIONALISM
• The first coherent regional initiatives began
in 1949, 1950s and 1960s (NATO, Warsaw
Pact, Regional Networks, European
Commission)
• They are more oriented toward interactions
between states, planned allocation resources
led by government
NEW REGIONALISM
• Began in the late 1980s and continues still.
• A new wave of political initiatives prompting
regional integration that took place
worldwide during the last two decades. The
idea that lies behind this increased regional
identity is that as a region becomes more
economically integrated, as well as politically
integrated
• Export oriented and a market allocation of
resources led by private firms
NON-STATE REGIONALISM
• It is not only states that agree to work together
in the name of a single cause. Communities
and non-governmental organization also
engage in regional organizing. The “new
regionalism” varies in form:
o There are tiny associations that
include a few actors and focus on a
single issue or huge continental
unions that address a multitude of
common problems from territorial
defense to food security.
REASONS IN THE FORMATION OF
REGIONAL ASSOCIATIONS
• For Military Defense
• Countries come together to pool their
resources together, get better returns for their
exports, as well as expand their leverage
against trading partners
• Economic crisis compels countries to come
together. (to cope up with globalization)
CHALLENGES TO REGIONALISM
• The Resurgence of Militant Nationalism and
Populism
• Continuing of Financial Crisis
• Concept of Sacrificing Sovereignty for
Regional Stability
• Different Visions of What Regionalism
Should be for
BENEFITS OF REGIONALISM
• Cooperate in setting exchange rate and
macroeconomic policies to minimize the effects
 of regional and global shocks and to facilitate the
resolution of global imbalances.
• Pool the region’s foreign exchange reserves to
make more resources available for investment
and development;
• Contribute to the efficiency of global financial
markets; Diversify sources of global demand
helping stabilize the world economy;
• Create regional mechanisms to manage cross
border health, safety and environmental issues
better.
• Generate economic growth, new ideas,
competition and raise income across the world;
• Provide leadership to help sustain open global
trade and financial systems
FACTORS LEADING TO A GREATER
INTEGRATION OF THE ASIAN REGION
• Trade - global trade facilitates what we need
from other parts of the world and vice versa
• Similar Culture – The cultures of Asia is
diverse but these share many things. This
makes it an easier fit during times of
negotiations.
• Common Goals – The Asian recognized the
mutual benefit of a slow integration
ASIA PACIFIC – refer together to the regions of
East (or Northeast) Asia, South and Southeast Asia,
and the Pacific Islands.
ASIA PACIFIC ECONOMY
• The Asia Pacific area makes up nearly a third
of the world’s land mass and two-thirds of the
global population.
• The combined economies of the region now
generate the largest share of global GDP
(gross domestic product) at 35% , compared
with Europe (28%) and North America (23%)
-(Asian Development Bank, 2012).
• It also accounts for just over a third of total
world exports of merchandise goods up from
a quarter in 2001 (Asian Development Bank,
2012).
RISE OF THE SOUTHEAST ASIAN TIGERS –
The success of the East Asian economies was
followed in the late 1980s and 1990s by the high-
flying growth of Southeast Asian countries including
Thailand, Indonesia, Malaysia, Singapore,
Philippines and Vietnam.
• The Southeast Asian ‘tigers’ had some
similarities to their East Asian counterparts
including close ties between the state and
business elite, some degree of autonomous
decision-making structure, and the rise of
manufacturing.
• However, the Southeast Asian economies
also became more reliant on infusions of
foreign capital, based on fixed exchange rate
policies and corresponding investments and
returns
MEDIA – a means of conveying something, such as
channel of communication (Jack Lule). The
technologies of mass communication
FUNCTIONS OF MEDIA
• Media reshapes societies but they also dull
the user’s communicative properties and
make them more prone to multitasking
• The TV was turning the world into a Global
Village because as more and more people sat
down in front of their TV sets and listened to
the same stories, their perception of the world
would contract (Jack Lule)
GLOBALIZATION AS A FORM OF
COLONIZATION – creates an avenue where the
fraternization of cultures become possible.
• fast paced import/export of products and
services; the prevalence of are some of the
obvious manifestations of this diffusion of
cultures.
THE GLOBAL SPHERE AND CULTURAL approach to outsiders or those with
IMPERIALISM contradictory views.
• Cyberbalkanization – This hires armies of
• Cultural globalization then is simply
social media to manipulate public opinion
euphemism for “Western Cultural
through intimidation and spreading fake
imperialism” since it promotes
news.
“homogenized, westernized, consumer
culture.” (Tomlinson)
• Consumerism – An American capitalist
value which encompasses the belief that
personal wellbeing and happiness depends to
a very large extent and level of personal
consumption, particularly on the purchase of
material goods. (Herbert Schiller)

MOVEMENTS DEDICATED TOWARD

OPPOSING ACCEPTANCE OF FOREIGN
CULTURES

• Contra- flows – dedicated towards opposing

the blind acceptance of foreign cultures.

• Hybridization / Cultural Hybridity –

highlights the interface of globalization and
localization as traditions and other cultural
forms diffused with the mainstream.

o Mixing previously separate

cultural systems – mixing elite art of
opera with popular music

o Deterritorialization of cultural
processes from their original physical
environment to new contexts,

o Impure cultural genres that are

formed out of mixture of several
cultural domains.

SOCIAL MEDIA EFFECTS

• Media have enabled users to be consumers

and producers of information simultaneously
• Splinternet – The segregation of the internet
into smaller groups with similar interests, to
a degree that they show a narrow-minded