Daryll S.

Rebellon
BSCpE-2A

Chapter 1: The Structures of Globalization

Learning Outcomes:
1.) Define Globalization

 In today’s time, businesses are developing quickly and they are not restricted to one nation
and they are coming to numerous countries. Making an appearance in more than one
nation of trade is called globalization, it implies to broaden the service sector of your
business to other countries. It may also refer to the proceeded integration and
interdependency of nations within the field of fast exchange and technologies. Globalization
can as well be a method of spreading science, technology, business, etc. through transport,
communication, and trade. Globalization has influenced nearly all nations around the world
socially, financially, politically, and mentally. The affect of globalization has been seen on
tradition, environment, culture, security, way of life and ideas. There are numerous
components impacting globalization worldwide. The reason for the boom in globalization is
the demand of people, free-trade activities, acknowledgment of markets worldwide, rising
of new technologies, new research in science, etc. If a business takes its work internationally
and establishes it in another nation, it requires huge international investment, this greatly
impacts a business or company. And, globalization has some negative effects like all the
growing environmental issues like water pollution, deforestation, air pollution, soil
pollution, pollution of water resources, climate change, biodiversity loss, etc. which is
needed to be resolved by international efforts as soon as possible.

2). Analyze the interrelated factors of globalization.

 There are 3 interrelated factors of globalization which are proximity, location, and attitude. First
is proximity, it’s a function of the “shrinking globe”, is somewhat a matter of time, as today’s
media transmission innovation permits individuals around the world to share voice, recordings,
and copy data in minutes. The expanding technological and administrative capabilities of
individuals around the globe are one of the examples of proximity. Managers can collaborate
with a modern cast of worldwide players. According to (Ohmae, 1990), organizations should
treat all clients as “equidistant” from their organizations to emphasize the new spirit of closer
ties and the insignificant miles of today's global world. Second is location, location is the
integration of operations across several countries. Employees are recruited and posted in
several countries. Phenomenon of transnational management which is a growing practice of
spreading an organization’s operations across many countries. And sharing of values. And the
third one is Attitude. In attitude, nothing is overseas anymore and open attitude of practicing
management internationally.
3.) Interpret how governments influence competitiveness.

 Government can influence competitiveness of the country when it comes to globalization. In

this world many countries try to compete with each other when it comes to who has the
most competitive and rich economy. Countries have their own organizations and products
which they are very proud to show off to gain popularity and sales. Like Samsung of South
Korea and more. Just like technological inventions that are never seen before. For example
when a country can make or invent a new life changing product first. Then there is a
possibility that many individuals in different countries would try to invest on that country's
product. And the result would be that the country would gain popularity and sales which
would make the country rich and attract more investors. A country can also boost the
popularity of their products and inventions by using advertisements throughout the world.
There are many more methods that a country can do to boost their products' popularity and
sales, and if a country can apply all of these methods, they can be ahead from other
competing countries.

4.) Explain why globalization is uneven based on the three rankings.

 The KOF Swiss Economic Institute offered a useful ranking into three broad categories.
These are Economic globalization, Social globalization, and Political globalization. Economic
globalization is the measure of developing worldwide integration not only markets but also
systems of finance, commerce, communication, innovation, and law that bypass
conventional, social, ethnic, and social boundaries. Whereas economic globalization has
made some difference to people to attain higher standards of living. It has marginalized and
devastated numerous individuals and has resulted in environmental degradation and the
consumption of natural resources. Social globalization refers to the degree of shared
thoughts and information between and through different countries. In today’s world, the
web and social media is at the center of this. Examples of social globalization could include
internationally famous movies, TV series, and books. Political globalization measures the
dissemination of government policies in terms of the number of government offices and
departments in a nation, participation in international organizations and etc. If a country
met all these 3 required rankings, the country could be at the top of the rankings.
Chapter 2: Market Globalization

Learning outcomes:

1.) Describe the changes in the world economy.

 The world government changed significantly since World War Il. And there is a change in the
development of worldwide markets and businesses. Worldwide competitors have
relentlessly replaced or retained local products. At the same time, the integration of the
world economy has expanded altogether. Economic integration is estimated at 10 percent
at the start of the 20th century. Nowadays, it is roughly estimated at 50 percent. The
Integration is striking the two districts which is the European Union or (EU) and the North
American Free Exchange Range or (NAFTA). One of the confirmations of the changes that
have occurred is the vehicle industry. Cars with European name plates such as Renault,
Citroen, Peugeot, Morris, Volvo, Volkswagen, and more. Within the past decade, there have
been several momentous changes within the world economy. When plans and strategies
are based on the new realities of the changed world economy, organizations have a higher
rate of achieving success. Capital developments instead of exchange have ended up the
driving constrain of the world economy, production has ended up becoming a source of
creating employment, the world economy overwhelms the scene, individual economies play
a subordinating role and the 75-year battle between capitalism and communism reached its
end.

2.) Identify the three forms of economic system.

 The three types of economic systems are capitalist, socialist, and mixed. The classification
was based on resource allocation. These are market allocation, command allocation, and
mixed allocation. Market allocation are basically capitalist economies, businesses and
people have the freedom to seek their own interests. Buying and offering goods on a
competitive market, which actually determines a fair price for goods and services. Next is
Command allocation, basically a communist state or country has a command allocation. The
government controls the entire economy, allocating resources and dictating prices for goods
and services but consumers have the freewill to spend their money on anything that is
available in the market. Lastly is Mixed allocation, it combines the elements of market
allocation and command allocation. Even among market allocation states, the government
usually takes some action to direct the economy. These moves are made for many reasons
like for example, some are designed to protect certain industries or give assistance to
consumers. This just means that most countries have mixed allocations.
3.) Distinguish the 3 forms of economic systems.

 Just like in number 2. There are 3 forms of economic systems which are market allocation,
command allocation and mixed allocation. The difference between the three are as follows.
Market allocation are basically capitalist economies, businesses and people have the
freedom to seek their own interests. Buying and offering goods on a competitive market,
which actually determines a fair price for goods and services. Next is Command allocation,
basically a communist state or country has a command allocation. The government controls
the entire economy, allocating resources and dictating prices for goods and services but
consumers have the freewill to spend their money on anything that is available in the
market. Lastly is Mixed allocation, it combines the elements of market allocation and
command allocation. Even among market allocation states, the government usually takes
some action to direct the economy. These moves are made for many reasons like for
example, some are designed to protect certain industries or give assistance to consumers.
This just means that most countries have mixed allocations.

4.) Explain the characteristics of the world bank rankings.

 The World Bank created a classification system that uses per capita (GNP) as a base. The
classifications are low income, low-middle-income, upper-middle-income, and high-income.
Lower income countries have less than 766 dollars of GNP per capita. Usually, low-income
countries in this level have limited industrialization, high percentage of population engaged
in agriculture, high birth rates, low literacy rates, heave reliance on foreign aid, political
instability, and is concentrated in Africa. Next is low-middle-income, they are said to be less
developed countries. They have GNP per capita between 766 dollars and 3,035 dollars.
Countries in this class are typically at the early stage of industrialization. Next is upper-
middle-income, the countries in this class are said to be developing or industrializing. The
GNP per capita ranges from 3,036 dollars to 9,385 dollars. There are less people engaged in
agricultural sectors and more on industrial sectors. And last is high-income, countries in this
class are advanced, industrialized and developed. Their GNP per capita is above 9,386
dollars.
5.) Explain the principles, ideas, and arguments postulated on the six core claims of market
globalism.

 Globalization: Liberalization and Global Integration of Markets. This claim is tied down
within the liberal ideals of the self-regulating market as the basis for a future worldwide
order. The liberalization and integration of worldwide markets is displayed as both desirable
and "natural" situations that promotes a person's liberty and progress in the world.
Globalization is Inevitable and Irreversible. According to this statement, globalization
includes a spread of irreversible market forces driven by technological advancements that
make the worldwide integration of national economies unavoidable. The depiction of
globalization as some sort of natural force suggests that individuals must adjust to the
discipline of the market in they want to survive and succeed. Nobody is in Charge of
Globalization. In this ideology of globalization, no one is in control, it is not controlled by
any individual, any government, or any institutions. Everyone has free will. Globalization
Benefits Everyone. This claim lies at the very center of market globalism, since it gives an
positive answer to the significant normative question of whether globalization should be
considered a great or a terrible thing. Market globalists state that free exchange and open
markets give the best prospect for making jobs, impelling financial development, and raising
living standards around the world. Globalization Furthers the Spread of Democracy in The
World. Globalist treat freedom, free markets, free trade and democracy as synonymous
terms. Globalization requires war on terror. According to Robert Kaplan's statement, you
also have to acquire military and economic power behind it or else your ideas cannot
spread. This just means that in order for globalization to spread and be acknowledged by
many individuals, you need to use force coming from the military and economic power you
acquired.