Globalization comes from globe meaning the worldwide is coming together
countries and nations. It is also a process of interaction and integration among
the people, companies, and governments of different nations.
Globality, it means globalization as a condition.
Eight Theories of Globalization
THEORY OF LIBERALISM
Liberalism – the quality or state of being liberal – willing to respect or accept behavior
or opinions different from one’s own, open to new ideas. The belief in freedom,
equality, democracy, and human rights. (KALAYAAN) Liberalism sees the process of
globalization as market-led extension of modernization. It is a result of “natural”
human desires for economic welfare and Political Liberty. As such, trans planetary
connectivity is derived from human drives to maximize material well-being and to
exercise basic freedoms. All people cannot be assumed to be equally amenable to and
desirous of increased globality in their lives. Similarly, they overlook the phenomenon
of power. There are structural power inequalities in promoting globalization and
shaping its course. Often, they do not care for the entrenched power hierarchies
between states, classes, cultures, sexes, races, and resources.
THEORY OF POLITICAL REALISM
Political Realism is interconnected in questions of state power, the pursuit of national
interest, and conflict between states. According to them states are inherently
acquisitive and self-serving, and heading for inevitable competition of power. Another
group suggests that a dominant state can bring stability to world order. The
‘hegemon’ state maintains and defines international rules and institutions that both
advance its own interests and at the same time contain conflicts between other
states. Globalization has also been explained as a strategy in the contest for power
between several major states in contemporary world politics. (Hegemon – having
dominant influence or authority over others)
THEORY OF MARXISM
Marxism is a social, political, and economic philosophy named after Karl Marx. It is
principally concerned with modes of production, social exploitation through unjust
distribution, and social emancipation through the transcendence of capitalism. The
definition of Marxism is the theory of Karl Marx which says that society classes are
the cause of struggle, and that society should have no classes. An example of Marxism
is replacing private ownership with co-operative ownership. Marxism helped to
consolidate, inspire, and radicalize elements of the labor and socialist movements in
Western Europe Marxist reject both liberalist and political realist explanations of
Globalization. It is the outcome of historically specific impulses of capitalist
development. Liberal talk of freedom and democracy make up legitimating ideology
for exploitative global capitalist class relations.
THEORY OF CONSTRUCTIVISM
Globalization has also arisen because of the way that people have mentally
constructed the social world with symbols, language, images and interpretation.
Constructivists concentrate on the ways that social actors ‘construct’ their world:
both within their own minds and through inter-subjective communication with
others. Conversation and symbolic exchanges lead people to construct ideas of the
world, the rules for social interaction, and ways of being and belonging in that world.
Social geography is a mental experience as well as a physical fact. They form ‘in’ or
‘out’ as well as ‘us’ and they’ groups. They tend to place themselves as inhabitants of
a particular world: In national, class, social status, religion, and other identities.
THEORY OF POSTMODERNISM
In Western philosophy, a late 20th-century movement characterized by broad
skepticism, subjectivism, or relativism; a general suspicion of reason; and an acute
sensitivity to the role of ideology in asserting and maintaining political and economic
power. In Western philosophy, a late 20th-century movement characterized by broad
skepticism, subjectivism, or relativism; a general suspicion of reason; and an acute
sensitivity to the role of ideology in asserting and maintaining political and economic
power.
THEORY OF FEMINISM
It puts emphasis on social construction of masculinity and femininity. Biological sex is
held to mould the overall social order and shape significantly the course of history,
presently globality. Their main concern lies behind the status of women, particularly
their structural subordination to men. Feminism – about all genders having equal
rights and opportunities. Feminism fight to put an end to sexism, sexiest exploitation,
and oppression and to achieve full gender equality in law and in practice.
THEORY OF TRANS-FORMATIONALISM
A theory which holds that globalization is a complex process involving a number of
different two-way exchanges between global institutions and local cultures; it can be
reversed and controlled. Transformationalists argue that the flow of culture is not one
way, from the west to the developing world; it is a two-way exchange in which
Western culture is also influenced, changed, and enriched by cultures in the
developing world.
THEORY OF ECLECTICISM
Eclecticism is a conceptual approach that does not hold rigidly to a single paradigm or
set of assumptions, but instead draws upon multiple theories, styles, or ideas to gain
complementary insights into a subject, or applies different theories in particular
cases. The definition of eclectic is something that is made up of various sources or
styles. An example of eclectic is the taste in music of a person who enjoys listening to
country, hip hop, gospel, and classical music.

Global Economy
• is also referred to as “world economy.”
• Refers to the expanding interdependence of world economies
• refers to the interconnected worldwide economic activities that take
place between multiple countries.
• These economic activities can have either a positive or negative impact
on the countries involved.
• It may also mean as the free movement of goods, capital, services,
technology, and information.
International Monetary Fund (IMF) defined economic globalization as a historical
process.
International Monetary System (IMS) refers to internationally agreed rules,
conventions, and institutions for facilitating international trade, investments, and
flow of capital among nation-states.
Three global IMS:
1. Gold Standard- functions as a fixed exchange rate regime, with gold
as the only international reserve and participating countries
determine the gold content of national currencies.
2. Bretton Woods System- the US dollar was the only convertible
currency. Thus, it was agreed by 44 countries to adopt the gold-
exchange standard.
3. European Monetary System (EMS) - was successful in the
stabilization process of exchange rates. National currencies were
abandoned and member states delegated monetary policy onto a
supranational level administered by the European Central Bank.
Global Market Integration means that price differences between countries are
eliminated as all markets become one. It was the result of the establishment of a
global economy that involved the homogenization of trade and commerce.
The global market was stared after the second World War with the rise of new
conglomerates.
Differences among international, multinationals, transnational, and global
companies.
• International Companies are importers and exporters with no
investments outside their home countries.
• Multinational Companies have investments in other countries but do not
have a coordinated product offering in each country.
• Global Companies have investments and are present in any countries the
typically market their product and services.
• Transnational Companies are more complex organizations that have
investments in foreign operations have a central corporates facility but
give decision-making research and development.
The Global Interstate System is a facet of contemporary political globalization
that seeks to form collaboration among nation.
World Trade Organization (WTO) has 164 member-states it is the sole IGO caters
to rules of trade on a global scale.
Principles of Interstate System
NATIONALISM – a doctrine and/or a political movement that seeks to make the
nation the basis of a political structure especially a state. It is a sense of national
consciousness that generally exalts one’s own nation above others and focuses
on the promotion of interests.
INTERNATIONALISM - desire for greater cooperation and unity among states and
people. In a more comprehensive definition, it is a political principle that places
the interests of the entire world above those of individual nations and argues for
cooperation among nations for common good. This can be divided into two broad
categories: liberal internationalism and socialist internationalism.
• Liberal internationalism -set of related concepts on how to best organize
international relations between states and non-state actors that
emphasize a belief in international progress, interdependence,
cooperation, diplomacy, multilateralism, and support for international
political structures and organizations. The theory assumes that we can
move past the violence and anarchy of the international system through
cooperation. Liberal internationalists believe that humans by nature are
good, or at least, not naturally aggressive. They also have faith in the
good that both domestic and international organizations and institutions
can do.
• Socialist internationalism – believes that it is possible to build a better
world based upon the twin goals of equality and social justice. Nations
should work together to create a more peaceful world and finally bring
an end to capitalist exploitation. They argue that there is a shared
common interest amongst the working-class. Our identity is determined
by economic forces rather than artificially imposed national boundaries.
Global Governance
 • Also known as World Governance, is a movement towards political
cooperation among transnational actors, aimed at negotiating responses
to problems that affect more than one state or region.
• defines the political scope of globalization.
United Nations (UN) SIX ORGANS
1. General Assembly the only organ where all member-states have equal
presentation in discussion and consideration and policy making.
2. Security Council is the organ with commitment to preserve peace and
security.
3. Economic and Social Council is the main organ for cooperation, review,
policy dialogue and advice on social economic and environment al issues.
4. Trusteeship Council organ tasked to administer international oversight
5. International Court of Justice UN’s prime judicial program
6. Secretariat is the organ tasked to execute daily activities.
Global North: refers to the countries that are geographically in the northern
hemisphere or to countries that are economically developed.
The North comprises all First World countries and most Second World countries.
Global South: refers to the countries that are geographically in the southern
hemisphere or to countries that are developing or economically struggling.
The South comprises Third World countries.
GLOBAL NORTH VS. GLOBAL SOUTH
GLOBAL NORTH
• United States, Canada, Western Europe. Outermost Regions of the
European Union.
• Developed parts of Asia, Australia, and New Zealand.
• Home to all G8 (France, Germany, Italy, the United Kingdom, Japan, the
United States, Canada, and Russia) and to four of the five permanent
members of the UN Security Council.
• The Group of Eight or G8 refers to the group of eight highly industrialized
nations—France, Germany, Italy, the United Kingdom, Japan, the United
States, Canada, and Russia—that hold an annual meeting to foster
consensus on global issues like economic growth and crisis management,
global security, energy, and terrorism.
• These countries conduct the G8 summit which is an annual meeting
between leaders from eight of the most powerful countries in the world.
• The aim is to try to tackle global problems by discussing big issues and
planning what action to take. The leaders of the countries meet every
year in a different member country.
GLOBAL SOUTH
• Africa, Latin America
• Developing Asia, Including the Middle East.
These countries are characterized as poor and/or socio-economically
marginalized parts of the world. These countries lack resources that are essential
for it to develop at the same rate as others. Unfortunately, countries in the Global
South suffer from poverty, lack of human rights, and the depletion and abuse of
natural resources.
ISSUES OF NORTH – SOUTH DIVIDE
1. Standard of Living – Factors lead to low of standard of living (Lack of
trade and aid, Single crop farming, Abundance of dept, Neocolonialism)
2. Distribution of income around the world – Most South Countries lost to
the competition from the North. Encourage migration of people from
South to North for having a better income.
3. Economic competition worldwide – Factors determine the
competitiveness of economy (Appropriate infrastructure, Stable
macroeconomic framework, well-functioning public, and private
institutions)
REASONS WHY OUR WORLD IS UNEQUAL TODAY
1. Colonialism – Control by one power over a dependent area or people
2. Trade – Losing Money
3. Debt – The only way they could do this was to borrow money from the
rich northern countries.