LESSON 1 -CONCEPTS OF GLOBALIZATION

DEFINITION OF GLOBALIZATION
• Globalization is comprised of multiple sameness and interconnectedness that go beyond the
nation-states. McGrew (1990)
• Ohmae in 1992 stated, “Globalization means the onset of the borderless world”(p.14).
•“Globalization is a world in which societies, cultures, politics and economics have, in some
sense, come closer together” – Ray Kiely and Phil Marfleet, Globalization and the Third World
(London: Routledge,1998), p.3.
• Globalization is the intensification of economic, political, social and cultural relations
across borders.
 – Hans-Henrik Holm and Georg Sorensen (eds.)
Globality
• Globalization as a condition Future social condition characterized by thick economic, political,
and cultural interconnections and global flows that make currently existing political borders and
economic barriers irrelevant (Steger (2005).
Globalism
• Steger (2014b) globalization as an ideology Appadurai (1996) five dimensions of global
cultural
flow.1. Ethnoscape- global movement of people2. Mediascape- flow of culture3. Technoscape- c
irculation of mechanical goods and software4. Finacescape- global circulation of money5. Ideos
cape- realm of political ideasWindows into the broader phenomenon of globalization
Globalization is also defined differently depending on someone else’s expertise, experience,
and perspective.
Economics expert
Globalizations means.
- fast speed of trade (importing and exporting are done in just a millisecond through technology)
- global economic organizations International Monetary Fund (IMF), World Bank (WB), World
Trade Organization (WTO). International Labor Organization (ILO), ASEAN, etc.
- multinational and transnational corporations
- free trade (governments not to restrict the importation of products and the exportation of local
products
Culture expert
Globalizations means.
.

- establishment “global village” (media, facebook has connected the world)

 - “Shrinking world” (breaking boundaries)
- cultural imperialism (Better Culture)- borderless world- adoption of other cultures (KPOP)

Political science expert

Globalization serves as a challenge to the nation-state.

- strengthening of regional blocs (ASEAN) (UN)

- emergence of global political norms (the norm that each country is entitled to the
exploitationof human resources for its own growth)
- emergence of corporations (businessmen and investors)
- international laws (conflicts)
- world governance

Four attributes of globalization

1. Globalization occurs worldwide
2. Intensification and acceleration of social exchanges and activities
3. Expansion and stretching of social relations
4. Various forms of connectivity 
A. Globalization occurs worldwide (Every person is a global citizen because he or she thinks
about the issues of the world)

- Think about the world

- Associate ourselves with global trends
- Sense of responsibility

B. Globalization Intensification & acceleration of social exchanges and activities

- Door-to-door mail delivery to FB messages –IG, SnapChat, Twitter

- Live TV telecast
- Travel capacities brought about by low airfares

C. Globalization Expansion & stretching of social relations.

- Regional and international non-governmental organizations (NGOs) Humanitarian

Institution
- Government associations
- multinational companies.

D. Globalization has Various forms of connectivity.

- They are diverse (economic, political, cultural, etc.)
LESSON 2 – ECONOMIC GLOBALIZATION
refers to the expanding interdependence of world economies. (Shangquan2000) attributes this
to the growing scale of cross-border trade commodities and services, flow of international
capital, and wide and rapid spread of technology. In the Philippines, cross-border trading can be
best illustrated by the country’s trading partnerships with China, the United States, and
Australia. Moreover, the flow of international capital can be observed in foreign direct
investments (FDI), a type of investment in which a company establishes a business in another
country for production of goods or services and still takes part in the management of that
business. A good example of this is Toyota Motor Philippines Corporation which is a subsidiary
of Toyota Motor Philippines Corporation based in Toyota, Japan. This flow of international capital
can also be observed in foreign portfolio investments, trade flows, external assistance and
external commercial borrowings, and private loan flows.
In 2008, the International Monetary Fund (IMF) defined economic globalization as a historical
process, the result of human innovation and technological progress. “It refers to the services
increasing integration of economies around the world, particularly through the movement of
goods, and capital across borders” (IMF, 2008). Economic globalization can be traced from the
time when there was economic movement in Asia, Africa and Europe through the Silk Road, a
network of trade routes that connected the East, particularly China, and the West. Historically,
these routes also led to the discovery of the Philippine Islands when Portuguese and Spanish
envoys were in search of spices, which then spawned colonization. In the contemporary period,
foreign expatriates come to the country to manage their company’s foreign subsidiaries.
Likewise, the Philippines sends thousands of skilled workers to the Middle East as construction
workers, seafarers, and nurses.
Benczes (2014) identifies four interconnected dimensions of economy namely: (1) globalization
of trade and goods and services; (2) globalization of financial and capital markets; (3)
globalization of technology and communication; and (4) globalization of production. The first
dimension of economic of economic interconnectedness is demonstrated in the establishment of
the World Trade Organization (WTO) that eases trade among countries. WTO, established in
1995, “ensures that trade flows as smoothly, predictably and freely as possible “(WTO, 2012).
Another indicator is the emergence of China as a major supplier and exporter of manufactured
goods that has affected the world economy. China-made products or parts are sent to the
United States. To meet this demand, China creates more jobs for its citizens. Another good
example of economic globalization of trade and services is the increasing number of business
process outsourcing (BPO)  companies in the Philippines. The second dimension is evident in
the liberalization of financial and capital markets. This is seen in cross-listing of shares on one
or more foreign stock exchange, cross-hedging and diversification of portfolio, and round the
clock trading worldwide (National Research Council, 1995). The third dimension emphasizes
that various transactions and interactivities that transpire instantly due to the internet and
communication technology. Moreover, the fourth dimension is best illustrated by the existence of
multinational corporations (MNCs) and transnational corporations (TNCs). The Coca Cola
Company is an example of an MNC. Based in Atlanta, Georgia, USA, the company only
manufactures syrup concentrates and sells them to various bottles that hold exclusive territories
in different countries including the Philippines.
The most fitting definition of economic globalization is that of Szentes’ (2003): the process of
“making the world economy an ‘organic system’ by extending transnational economic processes
and relations to more and more countries and by deepening the economic interdependencies
among them” This implies that the world economy is no longer controlled by the nation-states,
but it must be seen from a global context  –  the reliance and integration of world economies.
 Actors that facilitate Economic Globalization
 After recognizing the definition of economic globalization, it is important to discuss the different 
agents that bring about interdependencies of global economies. There are different views on
who or what the actors are that facilitate economic globalization. On one hand, some scholars
believe that it is still the nation-state but of different levels. Boyer and Drache (1996) state that
the role of nation-states as manager of the national economy is being redefined by globalization.
Although such is the case, nation-states still act as buffer to negative effects of globalization. In
support, Brodie (1996) calls the government as the “midwives” of globalization. It means that
nation-states are still relevant despite assuming a global perspective and act as mediators
between the effects of globalization and the national economy. Government policies and
regulation either permit or deny the smooth connection among world economies. On the other
hand, some experts claim that the actors are now the global corporations. Ohmae (1995)
argues that the nation-state has ceased to exist as the primary economic organization unit in the
global market. Filipino consumers, for instance, prefer to consume and avail of global products
and services like H&M, Uniqlo, Accenture, Amazon, Alibaba and FedEx. As a result of
transforming the national economy into a global one, Reich (1999) posits that national products,
technologies, corporations, and industries become obsolete. San Miguel Corporation and
Jollibee Foods Corporation are good illustrations of this effect. These two Filipino companies
have expanded outside their home country as they are present in Europe, US and the rest of
Asia. According to Gereffi (2005) , such TNCs are the main driving force of economic
globalization accounting for two thirds of the world export. Forbes lists down companies from 63
countries that together account for $35 trillion in revenue, $2.4 trillion in profit, $162 trillion of
assets and have a combined market value of $44 trillion (Schaefer, 2016).
 An international structure for money, power and interest was created to set a system in the
financial and economic relations in the modern day. The establishment of an international
monetary system (IMS) is one of the actors that facilitate economic globalization. IMS refers to
internationally agreed rules, conventions, and institutions for facilitating international trade,
investments, and flow of capital among nation-states. Historically, there are three global IMS  –
the gold standard, the Bretton Wood System, and the European Monetary System (EMS). The
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
(Benczes,2014). In the Bretton Woods System, the US dollar was the only convertible currency.
Thus, it was agreed by 44countries to adopt the gold-exchange standard. Also two financial
institutions were established: the International Bank for Reconstruction (IBRD) and the IMF. The
former, now known as the World Bank, is responsible for post-war reconstructions while the
latter aims to promote international financial cooperation and strengthen international trade.
Another form of integration is the establishment of the EMS. It came about after the collapse of
the Bretton Woods System. EMS was successful in the stabilization process of exchange rates.
It then prompted the foundation of a new European Economic and Monetary Union (EMU).
National currencies were abandoned and member states delegated monetary policy onto a
supranational level administered by the European Central Bank (European Commission, 2008).
The development of international trade and trade policy is also a form of such economic
integration. Trade patterns must not be stagnant. Flow of goods must be voluntary but restricting
it might affect the relationship between and among states.
Does economic globalization divides or unites the world?
With the nation-states, global corporations and international monetary systems as actors of
economic globalization, the world is now confronted with a number of ongoing debates as to
whether economic globalization unites or divides the world. Benczes (2014) believes that
economic globalization fosters universal economic growth and development. For one,
globalization allows a worldwide distribution of incomes. Australia, for instance, cannot provide
all the raw materials they need for certain products or services, so it needs other nation-states
to produce or provide these materials. Also, economic globalization reduces poverty (World
Bank, 2002). As foreign countries are in need of workforce and human capital, Filipino nurses
become overseas workers ; they go to Europe and other foreign countries to support their
families in the Philippines. Lastly globalization creates mutual dependence between developing
and developed countries (Arrighi, 2005). Some developing countries rely on developed
countries for employment and income while the latter relies on the former for raw and services
like labor. On the other hand, some observers of economic globalization believe that it divides
the world further. First, one might observe that the sources of goods and services are exploited,
since these economically poor nation-states depend on industrialized countries for employment
and income, these industrialized countries compensate their labor with cheap cost. These
industrialized countries even source materials from natural resources of poor nation-states as
another form of exploitation. Some even destroy nature without doing anything to rehabilitate it.
Second, economic globalization does not benefit all nations (World Bank, 2002). There is an
uneven experience among nations. Workers in TNCs are paid less compared to their
counterparts in the companies’ home countries. This shows how cheap labor is in the
Philippines. Third, Wallerstein (2005) claims that capitalism created the different levels of wages
in the economic arena of world systems. It further divides the world for it leads to inequality
according to expertise, experience, and skills.
Conclusion
 Economic globalization affects all nations and citizens through the increasing integration of
economies around the borderless world. Its important players are the nation-states, global
corporations, and the international monetary systems. Though some people believe that
economic globalization brings unity of all economic movements, others believe that globalization
furthers the separation among nation-states around the world.
Reference:
Brazalote T., and Leomardo R. (2019). The Contemporary World. C & E Publishing, Inc. Quezon
Cityp.17-21