CONWORL

Midterm Exam

Global Cooperation for an Inclusive and Sustainable Globalization

Globalization is described as the free flow of products, services, capital, people, and ideas

across international boundaries (Velocity Global, 2020). It has resulted in numerous developments

wherein some of the results have been favorable and some are not which up until now we continue

to face these consequences and challenges. Redefining the concept of globalization that focuses

on inclusivity and sustainability is what we need so more countries, all classes, and future

generations may benefit from it.

As bigger countries fight each other to take control of the economic order and pursue their

national interest, the impact of globalization on the lower or working class, to smaller or

underprivileged countries, and the environment has worsened. The uncooperative goals of all

countries disrupt the global economy and have slowed down growth, it creates a posing threat to

global trade, multilateralism, and the international cooperation structure that has molded global

economic policy for the last seven decades (Atalla, 2020). Not to mention that the world also faces

multiple challenges such as climate change, forced migration, the pandemic, and technology

disruption wherein a more cooperative global effort is what we need the most. A multilateral

approach would be one of the best chances to achieve inclusive and sustainable globalization.

According to Guriev, Leipziger & Ostry (2017), acknowledging and solving the issues of job

displacement, taxation, inequality, social protection, financial markets, and crony capitalism will

lead us to more inclusive globalization that benefits all. While the United Nations (2018), suggests

the following steps towards a more sustainable global economy: diversifying economies which

create opportunities for countries to broaden their source of revenue, addressing the roots of
inequalities will also help us in the longer run, making finance sustainable towards long-term

investments rather than short-term profits, and lastly improving a country’s legal institution,

administrative capacities, transparency, and business government.

Achieving this will be a long process and results will take time to appear but what is

important is that we start it now before it is too late. There will be no assurance that we will get

there but addressing the root problems of the world and creating inclusive and sustainable solutions

that work for everyone will be vital. In today's multipolar world, cooperative globalization will be

increasingly difficult to maintain, yet it is more necessary than ever to confront shared global

concerns and pursue shared goals.

Atalla (2020). How globalization is being redefined for a new generation. Retrieved from
https://www.ey.com/en_gl/government-public-sector/how-globalization-is-being-
redefined-for-a-new-generation
Guriev, Leipziger & Ostry (2017). Making globalisation more inclusive: A way forward. Retrieved
from https://voxeu.org/article/making-globalisation-more-
inclusive#:~:text=Strengthened%20cooperation%20in%20areas%20as,and%20requires%
20more%20effective%20institutions.
United Nations (2018). Four steps towards a more sustainable global economy. Retrieved from
https://www.un.org/en/desa/four-steps-towards-more-sustainable-global-economy
Velocity Global (2020). Globalization Benefits and Challenges. Retrieved from
https://velocityglobal.com/blog/globalization-benefits-and-challenges/
 CONWORL
Midterm Exam

Market Integration = Monopolization

Market integration enables businesses to unite and collaborate to reduce costs and

competitiveness, while also providing organizations with a wide set of relationships and

connections. As companies continue to integrate their market, the risk for industries to be

monopolized grows. Developing countries like the Philippines pose a great threat for market

integration to become a monopoly in a certain industry since its economic framework heavily

favors big corporations resulting in only the rich and powerful benefiting from it (Medalla &

Mantaring, 2009).

The competitive market is becoming tighter as already large enterprises continue to expand

and merge. Market Integration is fantastic for firms that gain from an exclusive market with no

competition, but they are not always so great for the customers that buy their products. When

purchasing from a big company, consumers frequently discover that they are paying unjustifiably

high costs for inferior-quality goods. Meaning, the powerful can charge citizens more for

fundamental services like health care, housing, and transportation (Open Markets, n.d.).

Benefitting from a market with no competition puts a great risk for different things to be capitalized

on. It does not only affect consumers, but it will also be hard for small and medium enterprises to

compete in such an environment. The power and influence of these large corporations on how an

industry will operate create a system that can or has been taking advantage of the people wherein

the lower stratum of society will most likely suffer. Furthermore, market integration in developing

countries will most like become a monopoly since there are no law regulations or if there are any

the titans of a certain industry hold a great power to influence the decisions of the government.
 Private sectors who aim to extend their market through market integration and later become

monopolies, instead of protecting and serving the consumers it is designed the opposite wherein it

aims to eliminate other competitions and maximize profit (McWhinney, 2021). As developing

countries continue to follow a system that only benefits the rich and powerful, the risk for market

integration to be monopolized will also continue. In these situations, market integration is just a

sugar-coated word for monopoly.

McWhinney (2021). How and Why Companies Become Monopolies. Retrieved from
https://www.investopedia.com/articles/investing/071515/how-why-companies-become-
monopolies.asp
Medalla & Mantaring (2009). On Free Trade Agreements (FTAs): the Philippine Perspective.
Retrieved from https://dirp3.pids.gov.ph/ris/dps/pidsdps0935.pdf
Open Markets (n.d.). INCOME INEQUALITY & MONOPOLY. Retrieved from
https://www.openmarketsinstitute.org/learn/income-inequality-monopoly
 CONWORL
Midterm Exam

Just Taking Advantage

The principle of subsidiarity is a teaching that states that a higher-order society should not

meddle in the internal life of a lower-order community, depriving the latter of its functions, but

rather should support it in times of need. Larger organizations should not abdicate their

responsibilities, but rather collaborate with local communities and groups in an attitude of humility

(Caritas Aotearoa New Zealand, 2020). With the emergence of transnational companies, it has

indeed created more jobs which supports the principle of subsidiarity, but these corporations

continue to take advantage of the people in poor conditions and situations. They tend to turn a

blind eye whenever there are environmental and welfare issues arise because of them.

Multinational corporations can increase job prospects in some markets whilst also reducing

them in others. They frequently locate factories, facilities, or headquarters in less economically

developed nations to take advantage of lower labor costs. When you can pay someone to do a

specific job cheaper instead of paying more, the chance of outsourcing being abused increases.

There is no doubt that these businesses have a positive financial impact, but at the same time, these

organizations are altering the local ownership structure of businesses. Many global firms act as if

they were local businesses because they do not have a centralized location. They can outprice

actual local firms in the market because of their size, which allows them to keep costs lower.

Because they can compete on a different level, large transnational corporations frequently force

local enterprises into bankruptcy (Gaille, 2019). While the issue regarding the welfare of workers

and the environmental impact of these corporations is nothing new, they continue to ignore and

escape the fact that they created these issues which only proves that they do not care about
anything, other than earning money. This is where the principle of subsidiarity is most important,

the role of the government in these situations is vital especially if they truly want to help the people.

Calling out corporations for their inhumane and destructive practices is the least that they can do.

Partnered with creating policies to protect the rights of the workers and for natural resources to not

be abused will also help in making sure that there are no laws broken.

Indeed, the idea of transnational companies does not go against the principle of subsidiarity

but the ignorance of these companies on the welfare of their workers and the condition of the

environment speaks the latter. The policy makers’ role in this regard is crucial so there will be no

rules violated. Encouraging these companies to become more sustainable and to create safe and

healthy workplaces will most likely increase workmanship among employees and decrease

inequality. Thus, we should continue talking about this topic and promote awareness so there will

no people to be taken advantage of.

Caritas Aotearoa New Zealand (2020). Subsidiarity Mana Whakahaere. Retrieved from
https://static1.squarespace.com/static/612dbb894d5bc25212ff3bcd/t/616f21767c1c3e4f70
4c3b15/1634673048469/Subsidiarity+PDF.pdf
Gaille (2019). 13 Transnational Corporations Advantages and Disadvantages. Retrieved from
https://brandongaille.com/13-transnational-corporations-advantages-and-disadvantages/
 CONWORL
Midterm Exam

Regionalism: An Important Step to Enhance Global Governance

Through multilateral relations, discussions on how the world would respond to growing

global challenges will be much easier if each country will be having a voice and take part in the

decisions to be made. Regionalism is all about working together to achieve common goals and

improve quality of life. Taking this into account, we cannot expect global governance and

regionalism to solve every issue that we face as not all the time it will work (Livingston, 2018).

The concept of global governance is beneficial in that it contains many significant insights

into what should be regarded as the best approaches for affecting societal dynamics in practically

any part of the world. It should also prove useful in the context of humanity's efforts to address

environmental issues. Though, it should not and cannot be considered as a necessary condition for

humanity to continue socio-cultural and economic progress. The major reason for this is that this

ideology assumes governing is just another phrase for "making money," rather than it being

genuinely about constructing the objective infrastructural conditions for humanity's long-term

survival (StudyCorgi, 2021). Currently, the proposed notion serves the interests of the world's most

powerful nation-states by allowing them to influence policy-making processes in countries of their

geopolitical interest without being accused of breaking international law. Maintaining that each

country, from first-world countries to developing countries will be able to talk about their opinions

and concerns on the different global issues will be necessary for a global government so it can

build trust among nations. If it is not done, it will result in questioning the credibility, legitimacy,

and relevance of the said government.

 In today's multipolar globe, it is more important than ever to tackle shared global challenges

and seek shared goals. Tackling the world's underlying problems and developing inclusive and

genuine solutions that benefit everyone will be critical. Working together would be the most

logical way for us to approach arising and growing problems nowadays. After all, we should

always remember that we live under the same sun.

Livingston (2018). Importance of Regionalism. Retrieved from https://eccog.org/july-16-2018-

importance-of-
regionalism/#:~:text=Regionalism%20is%20important%20to%20you,where%20it%20jus
t%20cannot%20work.
StudyCorgi (2021). Global Governance: Advantages and Disadvantages. Retrieved from
https://studycorgi.com/global-governance-advantages-and-disadvantages/