The Contemporary World

Refers to circumstances and ideas of

the present age, where it deals with
problems and issues
related to environment, population,
wealth, power, tensions and
conflicts.
Refers to circumstances and ideas of
the present age, where it deals with
problems and issues
related to environment, population,
wealth, power, tensions and
conflicts.
 Refers to circumstances and ideas of the present age, where it deals with problems and issues
related to environment, population, wealth, power, tensions and conflicts.

INTRODUCTION TO GLOBALIZATION
GLOBALIZATION
 Is the increasing interaction of people, states, or countries through the growth of the
international flow of money, ideas, and culture
 It is the interconnectedness of people and business across the world that eventually leads to
global, cultural, political, and economic integration.
Globalization on Different Perspective
  Globalization is very important change, if not, the most important. (Bauman, 2003)
 The process of world shrinkage of distances getting shorter, things moving closer. (Thomas
Lawson)
 It cannot be contained within a specific time frame, all people and all situations. (Al-Rhodan,
2006)
Characteristics of Globalization
 Social mobility of movement of people regardless of reason
 There is an intensification of interactions
 It is an active process
 Borderless interaction
 Spread of ideas, knowledge, technology, culture and religion
Historical Background of Globalization
 1897 – Charles Taze Russel coined the term “Corporate Giants” referring to a large national
trust and other large enterprise
 1930 – The word “Globalize” as noun appeared in a publication entitled “Towards New
Education” where it denoted a holistic view of human experience in education
 Late 1970’s – Globalization was coined
 Early 1981 – Globalization was used as an economic sense
 Late 1980’s – Globalization was popularized by Theodore Levit
 Late 2000’s – The IMF identified four basic aspect of Globalization
o Trade and Transactions
o The Capital and Investment Movement
o Migration and Movement of People
o Dissemination of Knowledge
 2013 – the Globalization was used to define “borderless society”
 2017 – Globalization was often used in the Academe
 2018 – Globalization was now in all discipline
Indicators of Globalization
 Interdependence of Countries
 Advancement of Science and Technology
 Environmental Issues Across Borders
 Economic Globalization, Cultural and Political Globalization
Examples of Globalization
 Because of trade developments and financial exchanges, we often think of globalization as an
economic and financial phenomenon. Nonetheless, it includes a much wider field than just flowing of
goods, services or capital. Often referred to as the globalization concept map some examples of
globalization are the following:
Economic globalization: is the development of trade systems within transnational actors such as
multinational corporations or NGOs;
 Financial globalization: can be linked with the rise of a global financial system with
international financial exchanges and monetary exchanges. Stock markets, for instance, are a
great example of the financially connected global world since when one stock market has a
decline, it affects other markets negatively as well as the economy as a whole.
 Cultural globalization: refers to the interpenetration of cultures which, as a consequence, the
nations adopt principles, beliefs, and costumes of other nations, losing their unique culture.
 Political globalization: the development and growing influence of international organizations
such as the UN or WHO means governmental action takes place at an international level.
 Sociological globalization: the integration of different cultures of different societies become
possible.
 Technological globalization: the phenomenon by which millions of people are interconnected
because of the power of the digital world via platforms such as Facebook, Instagram, Skype or
Youtube.

STRUCTURES OF GLOBALIZATION
THE GLOBAL ECONOMY
 It denotes that the economies are more interconnected from extraction, production,
distribution, consumption, to disposal of goods and services (Carfi and Schilirő,
2018)
Economic Globalization
 Is driven by the “growing scale of cross-border trade of commodities and services”
(Shangquan, 2000)
 Entails global industrial restructuring and readjustments where developed countries play a
dominant role (Shangquan, 2000)
Economic Integration
 Means that separate production operations are functionally related to each other and form a
unified product or service.
Who are the Actors that Facilitate Globalization?
Globalization has opened the doors for the non-state authority and actors in driving economic
globalization
1. International Economic Organizations
- These organizations are critical in developing and pushing for neoliberal policies among
different countries. They also help facilitate trade and development discussions among
various states.
- They promote regional agreements and standards that facilitate better trade and
exchange of knowledge, human resources, and regional cooperation
o International Monetary Fund (IMF)
o World Bank
o Organization for Economic Cooperation and Development (OECD)
o Association of Southeast Asian Nations (ASEAN)
o North American Free Trade Agreement (NAFTA)
2. Multinational Companies (MNC’s)
- Considered to be the main carriers of economic globalization (Shangquan, 2002)
- MNC’s started to emerge during the world war II when US industrial production
increased by 44% (Strange, 1996)
3. Central Banks
- They are considered one of the most powerful institutions in the world economy since
they can lead economic development, and some authors contend that central bank
governors are more influential in their own national economy than some politicians
(Shangquan, 2002)
4. Global Civil Society
- Has made its mark in global development arena particularly during the UN Conference
on Environment and Development in 1992 (Keane, 2003).
- Seen as either composed of individuals or groups of individuals disadvantaged by the
effects of the globalization of the world economy.
MARKET INTEGRATION
- is a process by which economies are becoming more interdependent and interconnected in terms of
commodity flows including externalities and spillover of impacts (Genschel and Jacktenfuchs, 2017)
The International Institutions and their role in the Global Economy
International Financial Institutions (IFI’s)
  Are institutions that provide support through loans or grants and technical advices to promote a
country’s economic and social development (Bhargava, 2006).
 Provides financial and technical services and products not for profit but for overall economic
and social development.
Four Issues of IFI’s
1. Bhagava Argues that some of critics question IFI’s legitimacy since majority of its
shareholders and policy making powers lie with powerful rich nations.
2. Different sectors have questioned the effectiveness of the IFI’s development
assistance programs and policy advices.
3. The major products of IFI’s are loans to provide capital for development initiatives for
the countries. However, it does come for free and comes with a certain conditions
that borrowing country has to meet.
4. The financial capacity and sustainability of IFI’s is another concern. The IFI’s income
based has reduced compared to what it was before although the demand from IFI’s
are increasing particularly in contributing toward regional and local development
initiatives.
The Global Corporations
- Aside from IFI’s and governments, one of the major players in globalization and the modern
capitalist market is the global corporations.
- The modern global corporations are commonly referred as multinational corporations and
transnational corporations.
THE GLOBAL INTERSTATE SYSTEM
- Is an institutional arrangement of governance that addresses regional and globalized issues
that go beyond the scope of nation-state
- A system of powerful and competing states in which no single state is capable of imposing
control on all others. These states are in interaction with one another in a set of shifting
alliance and wars in relative power of states upsets any temporary sets of alliances, leading to
a restructuring of the balance of power” (Chase-Dunn, 1981)
Institution that Govern Globalization
With the growing globalization, the governance of global relations goes beyond nation-state
government. Nation-state governments scale and scope are limited in addressing regional and
global issues like climate change, cybercrime and global financial crisis.
There are several institutions that govern national relations and affairs. First and foremost is the
United Nations, with 192 member states, it is seen as the facilitator of global governance.
Globalism Vs Internationalism
Internationalism is defined as political, economic, and cultural cooperation between nations, while
globalism is an ideology based on the belief that flow of people, goods, and information should flow
freely across national boarders.