LESSON 1A
Globalization
Three Systems and Structures
- Political Governance/Leadership
- Socio-cultural Legacy and
Transformation
- Economic Dependence and
Interdependence
Intensified Social Relations and Structures
Cyber and Digitized Information System
- Integrative Dynamic Society
- Global Society
- Fragmegrative Dynamic Society
Global Interconnections
Different Perspectives in Understanding
Globalization
- Approaches > Holistic Interconnected
Interdependence
- Economic Process
- Social Process
- Political Process
Globalization refers to the ongoing process of
increasing interconnectedness and
interdependence worldwide. Multifaceted
phenomenon characterized by the exchange of
goods, services and ideas across national
boundaries.
- Refers to the processes by which more
people across large distances become
connected (connectivity and
interconnectivity) in more different
ways.
- This happens when a country loses of
control our own system.
Technology
- Environmental Challenges
- Social Problems
- Loss of Cultural Identity
4 INDUSTRIAL REVOLUTION
TECHNOLOGIES
- Robotic
- Internet of Things
- Virtual Reality
- AI
3 INDUSTRIAL REVOLUTION
TECHNOLOGIES
- Automation Information
- Information Communication
- Technology
INDICATORS OF GLOBALIZATION
The jet engine, the internet, e-banking, e-books,
e-bike, the LRT, MRT and other inventions of
science and technology are attributable to the
spread of globalization. These improvements
that people enjoy today in this contemporary
world have been major factors in globalization
which have generated further interdependence
in economic and cultural activities among
nations.
PROCESSES OF UNDERSTANDING
GLOBALIZATION AS A SCIENTIFIC
PHENOMENON
- Economic
- Political
- cultural
Globalization, as an economic process, refers
to the increasing interconnectedness and
interdependence of countries through the
exchange of goods, services, capital,
technology, and information on a global scale.
Globalization, as a political process, refers to
the growing interdependence and influence of
political actors, institutions, and policies on a
global scale.
Globalization, as a cultural process, refers to
the diffusion, exchange, and blending of cultural
practices, values, beliefs, ideas, and
expressions on a global scale.
IMPORTANCE OF STUDYING
GLOBALIZATION
- There is a greater demand in business
and industry, health, engineering and
technology to have people who can
work with people of other nations and
cultures.
- There is a greater demand of promoting
the local business and industry to other
countries and if need be, owners travel
independently and internationally for a
better promotion.
- These global challenges need to be
solved as soon as possible through the
gathering and sharing of information
 across disciplines, institutions, and other
entities on a global scale.
According to Neil Kokemuller (n.d.), a writer,
globalization is the expansion of local
economies and businesses into a broader
international marketplace. Why?
- Small businesses have gotten active in
the global environment as the Internet
and mobile technology have enabled
communication across continents and
countries.
REASONS FOR GLOBALIZATION
- Rapid shrinking of time and distance
across the globe. One can easily cross
the bridge going to the other side of the
marketplace due to advanced tools of
technology than before.
- Domestic markets are no longer rich as
a consequence of many interlocking
factors.
- To reduce high transportation costs if
one goes globally using the advanced
tools of communication and information.
- To be close to raw materials and to
markets for their finished products which
are not available in the country of origin.
ADVANTAGES OF GLOBALIZATION
- An open economy spurs fast
innovations with fresh ideas from
abroad.
- Export jobs often pay more than other
jobs.
- Free of capital flow keeps interest rates
low.
- Living standards go up faster
- Several people lose their jobs when
companies import cheap labor or
materials or shift production abroad.
THEORIES OF GLOBALIZATION
WORLD SYSTEM THEORY
- A perspective that globalization is
essentially the expansion of the
capitalist system around the globe. The
Capitalist world-system originated in the
16th century, when European’s traders
established enduring connections with
Asia, Africa and America.
WORLD POLITY THEORY
-State remains an important component
of world society, but primarily attention
goes to the global cultural and
organization. All-encompassing
world-polity and its associated with
world culture, which supplies a set of
cultural rules or scripts that specify how
institutions around the world should deal
with common problems.
WORLD CULTURE THEORY
- The world culture is indeed new and
important, but less homogeneous
than world polity. Globalization is a
process of relativization. World society
thus consists of a complex set of
relationships among multiple units in the
global field.
HOMOGENOUS WORLD
- Certain activities or institutions become
global, they must displace existing local
variable activities and institutions. If
there are more linkages, global
institutions, and global values,
presumably this means that more
people will have more in common.
Reasons Why Globalization will not make the
World Homogeneous
- Cultural and political differences have
themselves become globally valid. The
notion that the people and countries are
entitled to their particularity of
distinctiveness is itself part to global
culture.
- Cultural and political differences have
themselves become globally valid.
- The notion that the people and countries
are entitled to their particularity of
uniqueness/distinctiveness is itself part
of global culture.
Is Globalization Harmful?
- Globalization may be harmful to the
well-being (fears) of individuals,
countries and cultures.
Interdisciplinary Understanding of
Globalization
Political Scientist
- Political activity increasingly takes place
at the global level. Under globalization,
politics can take place above the state
through political integration schemes
such as the European Union, the
ASEAN integration where the
Philippines is involved though
intergovernmental organizations such as
the IMF, the WB, and the WTO.
Economist
- Integration through international trade of
markets in goods and services as
reflected in variety of possible measures
(direct measures of barriers such as
tariffs and transport costs, trade
volumes and price related measures).
Sociologist
- An on-going process that involves
interconnected changes in the cultural
and social spheres. It involves the
spread and diffusion of ideologies-
values, ideas, norms, beliefs and
expectations - that foster, justify and
provide legitimacy for economic and
political globalization fueled by globally
integrated communication systems.
Historian
- Historians follow rather than lead the
way. Globalization is not new as a
phenomenon but the word itself took
hold only recently which records shows
first use in English in 1930 and shows
that usage soared suddenly in the
1990's.
LESSON 1B
WHAT IS GLOBALIZATION?
Deterritorialization is the process through
which the constraints of physical space lose
their hold on social relations.
- The process by which capitalism
expands across the globe as powerful
economic actors seek profit in global
markets and impose their rules
everywhere.
- Also known as Neoliberalism.
- Means different things to different
people.
ROOTS OF GLOBALIZATION
1. Globalizing forces have been evolving
since the beginning of human history
(over 5,000 years).
2. Globalization began with the rise of the
modern era and the development of
capitalism; 500 years ago (Immanuel
Wallerstein).
3. Globalization became intense in the 2nd
half of the second century
(post-industrial economies and
contemporary restructuring of
capitalism.
Immanuel Wallerstein (1930 – present)
- It was with the emergence of the
modern world economy in 16th century
Europe that we saw the economic
predominance of market trade.
- This was the system called capitalism.
- Capitalism and a world economy…are
observed sides of the same coin.
POWER CONTROLLED BY MNCs/TNCs
- Cheap Labor
- Capital Accumulation
- Dependency
- Exploitation of Natural Resources
- Social Problems/Rise of Social
Discontentment
World System Theory > Expansion of the
Capitalist Economy
A theory of Globalization that explains
capitalism
World-System Theory – a perspective that
globalization is essentially the expansion of the
capitalist system around the globe.
The capitalist world system originated in the
16th century when European traders/colonizers
established connections/colonies in Asia, Africa,
and Latin America.
3 TYPES OF WORLD SYSTEMS
1. WORLD EMPIRES
- Rome, Medieval China
2. WORLD ECONOMIES
- No one nation has control
 3. SOCIALIST WORLD GOV’T
- Does not/has not existed
Core Nations
- Capitalist nations/highly developed
(finished products)
Semi Peripheral Nations
- Capitalist nations
Peripheral Nations
- Developing nations (struggling and
exploited nations) export raw materials
Emergence of Globalization
- Globalization has been happening for a
long time. (16th century Europe as the
original source.)
- Europeans established worldwide trade
connections on their own terms,
brought their culture to different
regions by settling vast areas, and
defined the ways in which the
different people were to interact with
each other.
- Late 19th century the period of intense
globalization, when millions migrated,
trade generally expanded and new
norms (Western orientation) and
organizations came to govern
international conduct.
- the 20th-century movement of people,
goods, and finance across national
borders was at least as free and
significant as it is today. The 2nd half of
the 20th century was a significant period
of globalization in its own right.
- World War II gave globalization a new
impetus. Obscured by Cold War
divisions, the transformation of world
society – in terms of linkages,
institutions, culture, and consciousness
was nevertheless profound.
GLOBALIZATION AND THE EXPANDING
MARKET
Expanding Market
- is the process of offering a product or
service to a wider section of an existing
market or into a new demographic,
psychographic or geographic market.
- An economic system operating along
capitalist lines now encompasses most
regions of the world, and economic
motivates always have been important
in creating global linkages,
globalization takes place in many
spheres for many reasons.
- The economy may be a driving force in
creating global change in some periods,
but its effects depend on what
happens outside of the world market.
IMPACT TO SOCIETIES
Homogenous World
- Activities or institutions become global,
displacing existing local variable
activities and institutions.
- Linkages, global institutions, and global
values----- means that more people will
have more in common (outcome of
interconnectivity)
LESSON 2
THE GLOBAL ECONOMY
Global economic integration, characterized by
the increasing interconnectedness and
interdependence of economies worldwide, has
become a defining feature of the contemporary
world.
This topic explores the challenges and
opportunities associated with global economic
integration, considering factors such as trade
liberalization, financial flows, technological
advancements, and geopolitical dynamics.
Global economy refers to the international
exchange of goods and services that is
expressed in monetary units of money. It may
also mean the free movement of goods, capital,
services, technology, and information.
Global Economy/Global Integration
- Trade liberalization
- Regional economic initiatives
- Neoliberalism
- Foreign direct investment
- Governance structures
 - Free market
- Social norms
- Limited government intervention
The International Monetary Fund (IMF)
regards “economic globalization” as a
historical process representing the result of
human innovation and technological progress. It
is characterized by the increasing integration of
economies around the world through the
movement of goods, services, and capital
across borders.
The World Bank is an international
development organization owned by 189
countries. Its role is to reduce poverty by lending
money to the governments of its poorer
members so that they can improve their
economies and the standard of living of their
people. Since 1947, the World Bank has funded
over 12,000 development projects via traditional
loans, interest-free credits, and grants
International Trading System
- International trading systems are not
new. The Silk Road is the oldest known
international trade route. It had a
network of routes that connected
different parts of the ancient world from
China to what is the Middle East today
and to Europe. It was called such
because one of the most profitable
products traded through this network
was silk, which was highly prized,
especially in the area that is now the
Middle East as well as in the West
(today’s Europe).
Neoliberalism and Its Discontents
Neoliberalism has emerged as a
dominant economic and political ideology in the
contemporary world, shaping the policies and
practices of nations across the globe. Since its
inception in the late 20th century, neoliberalism
has significantly influenced economic systems,
governance structures, and societal norms,
promoting free markets, individualism, and
limited government intervention.
Understanding Neoliberalism
Neoliberalism is rooted in the belief that
economic growth and individual freedoms are
best achieved through free markets and minimal
state intervention. It advocates for deregulation,
privatization, and the reduction of government
expenditure and welfare programs. Neoliberal
policies emphasize the importance of
competition, entrepreneurship, and global trade
as drivers of economic development.
Economic Impact
One of the central tenets of neoliberalism is
the promotion of free trade and globalization.
Proponents argue that opening up markets to
international competition fosters efficiency,
innovation, and economic growth. This has led
to the proliferation of trade agreements and
economic blocs such as NAFTA (North
American Free Trade Agreement) and the
European Union.
Political and Social Implications
Neoliberalism has also had a profound
impact on governance structures and social
policies. The ideology emphasizes the
importance of individualism, personal
responsibility, and market-oriented solutions to
societal problems. As a result, governments
have increasingly embraced privatization,
outsourcing public services, and reducing social
welfare programs.
Cultural Dimensions
Beyond its economic and political
dimensions, neoliberalism has permeated
cultural and societal norms. It has promoted
consumerism, emphasizing individual choice
and personal gratification. The proliferation of
advertising, branding, and the commodification
of culture reflect this consumer-centric
worldview. Critics argue that this has led to
shallow consumer culture, environmental
degradation, and the erosion of social cohesion.
Economic Globalization Today: Recent
Trends in the Contemporary World
The global financial crisis will take decades
to resolve. The solutions proposed by certain
nationalist and leftist groups of closing national
economies to world trade, however, will no
longer work.
Washington Consensus ---- employed ten
economic policies to standardize economic
reforms among nations through IMF and WB,
this failed because of limited instruments used
especially for developing countries.
Recent Trends in Economic Globalization:
International Trade
International trade continues to play a significant
role in economic globalization. While the
COVID-19 pandemic temporarily disrupted
global trade flows, there has been a gradual
recovery and resurgence. Trade agreements,
such as the Comprehensive and Progressive
Agreement for Trans-Pacific Partnership
(CPTPP) and the Regional Comprehensive
Economic Partnership (RCEP), have emerged to
facilitate trade and investment among
participating nations. However, geopolitical
tensions and trade disputes pose challenges
to the expansion of global trade.
Impact in the Philippines:
International trade has been a significant driver
of economic activity in the Philippines.
- strong trade links with major global
partners, particularly in the Asia-Pacific
region----electronic products, machinery,
garments, and agricultural commodities.
- exports benefit from a vibrant services
sector, including business process
outsourcing (BPO) and remittances from
overseas Filipino workers, which
contribute significantly to its foreign
exchange earnings.
Economic Globalization and Sustainable
Development
In other words, development has to be ensured
in and for future generations. One significant
global response or approach to economic
globalization is that of sustainable development,
which seeks to chart a middle path between
economic growth and a sustainable environment
(Borghesi and Vercelli, 2008). The relationship
between globalization and sustainability is
multi-dimensional – it involves economic,
political, and technological aspects.
However, these positive effects of development
put our environment at a disadvantage.
Climate change accelerated and global
inequality was not eradicated. This means
that development, although beneficial at one
hand, entails cost on the other.
Environmental Degradation
Development, especially economic
development, was hastened by the Industrial
Revolution.
- The earth’s atmosphere is damaged by
more carbon emissions from factories
around the world.
- The destruction of coral reefs and
marine biodiversity as more and more
wastes are thrown into the ocean
Economic Globalization, Poverty, and
Inequality
Economic and trade globalization is the result of
companies trying to outmaneuver their
competitors. While you search for the cheapest
place to buy shoes, companies search for the
cheapest place to make those shoes. They find
the cheapest sources of leather, dye, rubber,
and of course, labor.
Global Income Inequality
Globalization and Inequality are closely related.
We can see how different nations are divided
between the North and the South, developed
and less developed, and the core and the
periphery.
There are two main types of economic
inequality: wealth inequality and income
inequality. Wealth refers to the net worth of a
country. It takes into account all the assets of a
nation – may they be natural, physical, and
human – less the liabilities
A global company is generally referred to as a
multinational corporation (MNC). An MNC is a
company that operates in two or more countries,
leveraging the global environment to approach
varying markets in attaining revenue generation.
What is the role of global corporations in
globalization?
Multinational corporations have played a
leading role in this globalization, establishing
multiple links between the economies of various
countries. Using capital from developed
countries, MNCs establish factories and plants
in developing countries, where they can access
raw materials and labor more cheaply.
Global Interstate System
World-systems are defined by the existence of
a division of labor. The modern world-system
has a multi-state political structure (the interstate
system) and therefore its division of labor is
international division of labor.
Global Governance
This term global governance is sometimes
referred to as world governance. Global is a
movement towards political cooperation among
transnational actors, negotiating responses to
problems that affect more than one state or
region.
LESSON 3
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).
- When prices among different locations
or related goods follow the same
patterns over a long period of time,
market integration exists.
These developments are due to increasing
market integration, which has two kinds –
horizontal and vertical integration (Grossman
& Hart, 1986). Horizontal integration happens
when a firm gains control of other firms
performing similar marketing functions at the
same level in the marketing sequence.
Vertical integration happens when one
company owns the operations and products
from one stage to the other along the supply
chain. For example, an iron mining company
operates a steel manufacturing firm.
Role of International Financial Institutions in
the Creation of Global Economy
International financial institutions are global
financial institutions that support a country’s
economic growth through support that is loans,
technical assistance to governments and now
other private sectors (Wood, 2019).
International Financial Institutions
1. International Monetary Fund (IMF) is
an international organization with 183
member countries that promotes
international monetary cooperation and
exchange stability to foster economic
growth and high employment and to
provide short-term financial assistance
to countries to help ease balance of
payments adjustment (IMF, 2019).
2. World Bank (WB) The World Bank is an
international development organization
owned by 187 countries. Its role is to
reduce poverty by lending money to the
governments of its poorer members to
improve their economies and to improve
the standard of living of their people.
3. European Investment Bank (EIB)
furthers the objectives of the European
Union by providing long-term project
funding, guarantees and advice. It
supports projects both within and
outside the EU. Its shareholders are the
Member States of the EU.
4. Islamic Development Bank (IDB) The
purpose of the Bank is to foster
economic development and social
progress of member countries and
Muslim communities in non-member
countries individually as well as jointly in
 accordance with the principles of
Shari'ah i.e., Islamic Law.
5. Asian Development Bank (ADB)
provides loans, grants and technical
assistance to its developing member
countries, to the private sector and
through public-private partnerships to
support the building and maintenance of
infrastructure. The majority is in water,
energy, transport, urban development,
and information and communications
technology
6. European Bank for Reconstruction
and Development (EBRD) is a
development bank that provides project
financing for banks, industries and
businesses, both new ventures and
existing companies. It prioritizes support
for countries in Central and West Asia,
and North Africa
7. Development Bank of Latin America a
development bank committed to
improving the quality of life for all Latin
Americans and Caribbeans. Their
actions promote sustainable
development and regional integration.
Aim to convert themselves into the
green and blue bank, and the one
responsible for the economic and social
reactivation of the region.
8. Inter-American Development Bank
Group (IADB) The IDB is the most
important multilateral source of
development financing for Latin America
and the Caribbean. It aims to reduce
poverty and inequality and to promote
sustainable economic development in
the region.
9. African Development Bank (AfDB) As
the premier development finance
institution on the continent, the AfDB's
mission is to help reduce poverty,
improve living conditions for Africans
and mobilize resources for the
continent's economic and social
development.
10. Asian Infrastructure Investment Bank
(AIIB) meets its commitment to actively
support infrastructure projects that
contribute to climate change mitigation,
adaptation and resilience, and
reinforces its mission to promote
sustainable infrastructure development
in Asia and beyond.
MEMBERSHIP COMPOSITION OF IFIs
1. Only sovereign countries are admitted
as member owner
2. Broad country membership to include
borrowing developing countries and
developed donor countries
3. Membership in regional development
banks include countries around the
world as members (not limited to
countries from the region)
4. Has its own independent legal and
operational states
Other examples of International
Organizations that Govern Globalization
- World Trade Organization (WTO) –
regulates international trades, ensures
smooth flow of trade and provides a
forum for negotiations for trade
agreement among countries and regions
of the world (International Monetary
Fund, 2019)
- World Health Organization (WHO) –
responsible for global researchers on
medicines and vaccines including the
World Health Report and Survey
- International Labor Organization
(ILO) – deals with labor problems and
international labor standards and social
protection for workers
Other examples of International
Organizations that Govern Globalization
- UNESCO – contributes to peace and
security by promoting international
collaboration through educational,
scientific, and cultural reforms
- Organization for Economic
Cooperation and Development
(OECD) – thirty five member countries
aim to stimulate economic progress and
 world trade by providing a platform to
compare policy experiences and identify
good practices in domestic and
international economic policies and
programs of its members.
- Food and Agriculture Organization of
the United Nations (FAO) – leads
international efforts to defeat hunger,
eliminate food insecurity and
malnutrition, and increase resilience of
livelihoods and food.
GLOBAL CORPORATION
While many use “global” in the same way as
international when it comes to describing a
business some analysts make distinctions
between how each operates. On a basic level, a
global corporation is one that operates in more
than one country.
MARKET INTEGRATION
The European Union (EU) and the adoption of
the Euro as a single currency have brought
several benefits to its member states. Here are
some key advantages
- Enhanced Trade and Economic
Integration: The Euro eliminates
currency exchange costs and
fluctuations within the Eurozone, making
trade between member countries more
efficient and less costly. It has also
stimulated cross-border investments
and encouraged economic integration.
- Price Transparency and Competition:
The Euro facilitates price transparency
across member states, enabling
consumers to compare prices easily and
promoting competition. This has led to
increased efficiency and reduced price
differentials within the Eurozone.
- Increased Financial Integration: The
Euro has facilitated greater financial
integration within the Eurozone,
promoting cross-border banking and
capital flows. This integration has led to
more efficient financial markets,
enhanced access to credit, and
improved risk-sharing mechanisms.
- Increased Foreign Direct Investment
(FDI): The Euro provides a stable and
attractive investment environment,
attracting higher levels of FDI into the
Eurozone. This has contributed to
economic growth and job creation in
member countries.
- Improved Monetary Policy and
Stability: The European Central Bank
(ECB) oversees monetary policy for the
Eurozone, which promotes stability and
consistency in interest rates and
inflation across member states. This has
helped maintain macroeconomic
stability and reduce exchange rate risks.
- Elimination of Exchange Rate
Uncertainty: The Euro eliminates
exchange rate volatility between
member states, reducing uncertainty for
businesses and investors. This stability
encourages long-term investment
planning and fosters economic growth.
ASIAN INTEGRATION
Established on August 8, 1967 in Bangkok
Thailand
Founding members
- Indonesia
- Malaysia
- Philippines
- Singapore
- Thailand
Additional members
Brunei joined on January 7, 1984; Vietnam on
July 28, 1985; Lao PDR and Myanmar on July
23, 1997 and Cambodia on April 30, 1999.
ASEAN : ASEAN ECONOMIC COMMUNITY
(AEC) 2025
The ASEAN Economic Community
(AEC) Established in 2015, Kuala Lumpur,
Malaysia is a regional economic integration
initiative by the Association of Southeast Asian
Nations (ASEAN).
ASEAN Community Vision 2025
The ASEAN Community Vision 2025
aims to create a people-centered and
people-oriented community that is politically
cohesive, economically integrated, socially
responsible, and environmentally sustainable. It
envisions an ASEAN community that is resilient,
inclusive, and dynamic.
ASEAN Political Security Community 2025
The APSC aims to promote political and
security cooperation among ASEAN member
states, ensuring peace, stability, and resilience
in the region.
ASEAN Socio-Cultural Community (ASCC)
aims to promote social progress, cultural
development, and human resource
capacity-building within ASEAN.
Asian Economic Community
5 Core Principles ASEAN Single Market and
Production Base:
1. Free flow of goods This principle aims
to create a seamless and efficient flow
of goods within the ASEAN region. It
involves eliminating tariff and non-tariff
barriers, harmonizing customs
procedures, and enhancing trade
facilitation measures. The goal is to
promote trade liberalization and
enhance market access for goods
produced within ASEAN.
2. Free flow of services This principle
focuses on liberalizing trade in services
within ASEAN. It involves reducing
restrictions on the movement of service
providers, facilitating the recognition of
professional qualifications, and
promoting cross-border trade in
services. The aim is to enhance the
competitiveness and efficiency of
service sectors within the region.
3. Free flow of investment This principle
aims to attract and promote investment
flows within ASEAN by creating a
conducive and transparent investment
environment.
4. Free flow of capital This principle
focuses on facilitating the movement of
capital within ASEAN. It involves
liberalizing capital flows, harmonizing
capital market regulations, and
enhancing financial integration within
the region.
5. Free flow of skilled labor This principle
aims to promote the mobility of skilled
labor within ASEAN. It involves
facilitating the movement of
professionals, skilled workers, and
talents across borders within the region.
LESSON 4
MARKET GLOBALIZATION
Key aspects of globalization and its impact
on the world economy:
1. Increased International Trade:
Globalization has facilitated a surge in
international trade. Nations can specialize in
producing goods and services in which they
have a comparative advantage, leading to
greater efficiency and higher productivity.
2. Boosting Economic Growth:
Globalization has contributed to economic
growth, particularly in emerging economies.
Access to international markets and investments
has accelerated the development of these
countries, lifting millions out of poverty and
improving living standards.
3. Financial Integration:
Financial globalization has interconnected global
financial markets, allowing for greater capital
mobility and investment diversification. However,
it has also increased the susceptibility to
financial crises, as shocks in one part of the
world can quickly spread globally.
4. Technological Advancements:
Globalization has been fueled by technological
advancements, making it easier to
communicate, share information, and conduct
business across borders. The rise of the internet
and digital communication has facilitated
e-commerce, enabling companies to reach
consumers worldwide and revolutionizing the
way business is conducted.
 5. Transnational Corporations:
Multinational corporations have been major
drivers of globalization. These companies can
operate in various countries, leveraging
economies of scale, accessing new markets,
and creating employment opportunities.
However, the influence of large corporations has
raised concerns about their power and impact
on local economies.
6. Cultural Exchange and
Homogenization:
Globalization has led to cultural exchange, with
people from different cultures interacting and
sharing ideas and values. However, there are
concerns about cultural homogenization, as
global media and consumer trends sometimes
overshadow.
7. Income Inequality:
While globalization has lifted many out of
poverty, it has also exacerbated income
inequality, both within and between countries.
Developed countries often benefit more from
globalization, leaving some developing nations
behind and creating income disparities within
countries.
8. Environmental Impact:
Globalization's demand for increased production
and transportation has raised environmental
concerns. Issues like carbon emissions,
deforestation, and resource depletion need to be
addressed to achieve sustainable globalization.
9. Policy Challenges:
Globalization has presented challenges for
policymakers, as they must strike a balance
between promoting economic growth and
ensuring social and environmental welfare.
Cooperation among nations is necessary to
manage global issues such as climate change
and financial stability effectively.
Role of Technology, Trade Liberalization, and
Multinational Corporations:
- Technology: Technological
advancements, such as the internet,
telecommunications, and transportation
systems, have revolutionized global
communication, production, and
distribution. E-commerce platforms have
allowed businesses to reach customers
worldwide, while advanced logistics
have facilitated the efficient movement
of goods across continents.
- Trade Liberalization: Trade
agreements, such as those within
regional blocs (e.g., European Union,
ASEAN) and global institutions (e.g.,
World Trade Organization), have
reduced tariffs, quotas, and other trade
barriers, encouraging international trade
and market integration.
- Multinational Corporations: MNCs are
at the forefront of market globalization.
Their global operations, investment in
multiple countries, and establishment of
subsidiaries and branches have enabled
the flow of goods, services, and capital
on a global scale.
Real-World Examples of Global Companies
and Their Impact:
- Apple Inc.
Apple is a multinational technology
company known for its iconic products
like the iPhone and MacBook. By
leveraging global supply chains and
outsourcing manufacturing to countries
like China, Apple has achieved cost
efficiency and quick product delivery.
- McDonald's Corporation:
McDonald's is a leading global fast-food
chain operating in numerous countries.
Through franchising and localized
menus, McDonald's tailors its offerings
to suit the tastes and preferences of
local consumers.
The Historical context and factors that have
contributed to market globalization
1. Colonialism and Imperialism:
Colonialism and imperialism, particularly
during the 16th to the 20th centuries,
played a significant role in laying the
groundwork for market globalization.
European powers established colonies,
extracting resources and establishing
 trade networks that connected their
colonies to the global economy.
2. Industrial Revolution:
The Industrial Revolution, which began
in the 18th century in Britain and later
spread to other parts of Europe and the
United States, revolutionized production
processes.
3. Post-World War II Reconstruction:
The devastation caused by World War II
prompted the need for international
cooperation and economic
reconstruction. The establishment of
international institutions like the
International Monetary Fund (IMF) and
the World Bank aimed to stabilize
economies and foster global trade and
investment
4. Technological Advancements:
Technological advancements have
played a crucial role in enabling market
globalization. The development of
transportation technologies, such as
steamships, railways, and later air
travel, reduced the cost and time
required for long-distance trade.
5. Trade Liberalization:
Trade liberalization policies, including
the reduction of tariffs, quotas, and trade
barriers, have been instrumental in
promoting market globalization. Trade
agreements, such as the establishment
of the European Union and the North
American Free Trade Agreement
(NAFTA), have created regional
economic blocs that encourage trade
and investment.
Impact of Market Globalization on Various
Sectors:
1. TRADE
Positive Impact: Market globalization
has led to an increase in global trade
volumes and diversification of products.
Countries can specialize in producing
goods and services where they have a
comparative advantage, resulting in
efficiency gains and broader consumer
choices.
Negative Impact: Increased
competition from global markets can
negatively impact some domestic
industries, leading to job displacements
and trade imbalances. Additionally, trade
liberalization may result in the erosion of
domestic industries that face
competition from lower-cost imports.
2. FINANCE
Positive Impact: Financial globalization
has increased access to capital and
investment opportunities for businesses
and governments. It allows for portfolio
diversification, lowering the cost of
capital, and increasing investment
efficiency.
Negative Impact: The
interconnectedness of financial markets
has amplified the risk of financial
contagion during crises. Capital flows
can be volatile, leading to sudden
outflows that impact exchange rates and
asset prices.
3. CULTURE
Positive Impact: Market globalization
has facilitated cultural exchange and the
spread of ideas, allowing individuals
from different cultures to connect and
collaborate. This exchange of cultural
products and experiences can lead to
increased diversity and appreciation of
global cultures.
Negative Impact: Some argue that
market globalization has led to cultural
homogenization, as dominant global
cultures may overshadow local
traditions and identities. Cultural
products may become standardized to
cater to global markets, potentially
eroding unique cultural expressions.
4. TECHNOLOGY
Positive Impact: Market globalization
has driven technological advancements,
particularly in communication and
transportation. Innovations in digital
technologies have revolutionized global
 supply chains, logistics, and online
commerce.
Negative Impact: Rapid technological
changes can create skill gaps and job
displacement in certain sectors, leading
to income inequality. Moreover, the
reliance on advanced technologies may
increase the digital divide between
developed and developing nations.
5. ENVIRONMENT
Positive Impact: Globalization has
facilitated international collaboration in
addressing environmental challenges.
The sharing of knowledge and
technology has supported sustainable
practices and global environmental
initiatives.
Negative Impact: Increased production
and transportation in a globalized
market can lead to higher carbon
emissions, deforestation, and resource
depletion. Some environmental
regulations may be relaxed in countries
aiming to attract foreign investment.
FROM LAISSEZ FAIRE TO NEOLIBERALISM
Laissez-faire and neoliberalism are two
economic ideologies that have shaped the
evolution of economic policies and governance
over the past few centuries. Let's explore the
transition from laissez-faire to neoliberalism and
understand the key characteristics of each.
Laissez faire
is the belief that economies and
businesses function best when there is no
interference by the government. It comes from
the French, meaning to leave alone or to allow
to do. It is one of the guiding principles of
capitalism and a free market economy.
Neoliberalism
a theory of political economic practices
that proposes that human well-being can best be
advance by liberating individual entrepreneurial
freedoms and skills within an institutional
framework characterized by a strong private
property rights, free markets and free trade.
KEY CHARACTERISTICS OF
NEOLIBERALISM
Market-Centered Approach: Neoliberalism
prioritizes free markets and emphasizes that
market forces are the most efficient allocators of
resources.
Deregulation and Privatization: Neoliberal
policies often involve reducing government
regulations on businesses and privatizing
state-owned enterprises.
Fiscal Discipline: Neoliberalism advocates for
responsible fiscal policies, including controlling
public spending and maintaining low budget
deficits.
Free Trade and Globalization: Neoliberalism
supports liberalizing trade and promoting
globalization to expand market access and
economic opportunities.
Monetarism: Neoliberal economists often
emphasize the role of monetary policy in
stabilizing economies and controlling inflation.
PRIVATIZATION
It is the process of transferring an enterprise
or industry from the public sector to the private
sector.
Some of the government owned and
controlled corporations were already transferred
from public to private sector: Philippine Airlines
(PAL)Philippine Long Distance Corporation
(PLDT)Manila Electric Company
(Meralco)Manila Waterworks and Sewerage
System (MWSS) now Maynilad Water Services
and Manila Water Company.
LESSON 5
THE GLOBAL INTERSTATE SYSTEM AND
GLOBAL GOVERNANCE
Global Interstate System – is an institutional
arrangement of governance that addresses
regional or globalized issues that go beyond the
scope of a nation-state. (Chase-Dunn, 1981)
State – a system of centralized rule that
succeeded in subordinating all other institutions
and groups, temporal and spiritual (Heywood
2011). Emerged in 15th and 16th century in
Europe.
In the contemporary world, the concept of
sovereignty remains central to the organization
of states and international relations, but it has
evolved and faces new challenges due to the
changing global landscape. While the traditional
understanding of sovereignty as absolute
authority within defined territorial boundaries
persists, several contemporary factors have
influenced and shaped the way sovereignty is
perceived and practiced
Internationalism – puts emphasis on diversity
and celebrates multiculturalism, while globalism
focuses more on the economic aspect of the
exchanges among countries and society.
Global governance refers to the coordination
and management of international affairs and
challenges through the cooperation of multiple
actors, including states, intergovernmental
organizations, non-governmental organizations
(NGOs), multinational corporations, and other
stakeholders. It is an evolving concept that
seeks to address global problems that transcend
national boundaries and require collective
action.
The Global Interstate System
1. Defined Territory: A state must have a
clearly defined territory with recognized
borders. The territory should be
distinguishable and identifiable on the
map.
2. Permanent Population: A state should
have a settled population residing within
its borders. The population does not
necessarily need to be homogenous but
should be stable and self-sustaining.
3. Effective Government: A state should
have an organized and functioning
government capable of exercising
control over its territory and population.
This includes the ability to enact and
enforce laws, provide public services,
maintain order, and represent the state
in international affairs.
4. Capacity to Enter into Relations with
Other States: A state must possess the
capacity to conduct international
relations and interact with other states.
This involves the ability to negotiate
treaties, engage in diplomacy, and
participate in international organizations.
5. Independence: A state should be free
from the control of any external authority
and should not be subject to undue
influence from other states or
organizations.
6. Intent and Willingness: The entity
seeking statehood must express a clear
intention to be recognized as a
sovereign state. This intention is often
demonstrated through actions and
declarations that show a desire for
independence and self-determination.
7. Recognition by Other States: While
recognition by other states is not a
formal requirement for statehood, it is a
crucial factor. The entity seeking
statehood needs to be acknowledged as
a sovereign state by a significant
number of other states in the
international community.
STATE AND SOVEREIGNTY
Internal sovereignty and external sovereignty
are two aspects of the broader concept of
sovereignty, each referring to different
dimensions of a state's authority and control.
Internal Sovereignty:
Internal sovereignty relates to a state's
exclusive authority to govern within its territorial
boundaries without interference from external
actors. It signifies a state's ability to exercise
effective control over its domestic affairs,
including its government, laws, policies, and
institutions. External sovereignty refers to a
state's recognition as an independent and equal
member of the international community. It is the
acknowledgment by other states and
international entities that a particular state
possesses the right to govern itself without
external interference in its external affairs.
THE UNITED NATIONS
The United Nations (UN) serves as the primary
organization for international cooperation,
peace, and security. It is the only international
organization for international cooperation that
can authorize
The United Nations Charter established Six
Principal council organs in 1945
1. The Economic and Social Council’s
(ECOSOC) primary objective is to
advance the economic, social and
environmental dimensions of
sustainable development. It serves as a
gateway of the UN’s partnership with the
rest of the world for the coordination,
policy review, dialogue,
recommendations, and implementations
of international development goals.
2. The Trusteeship Council was
established as a main organ of the UN
(Chapter XIII) to provide international
supervision of Trust Territories that are
under the administration of seven
members-states, to ensure that
adequate steps are being made to
prepare the peoples of Trust Territories
for self governance.
3. The International Court of Justice is
the United Nation’s principal judicial
organ (Chapter XVI). Its role is to settle
legal disputes between states
(contentious cases) and to provide
advisory opinions on legal questions
referred by the UN organs and
specialized agencies, in accordance to
international law (advisory proceedings)
(International Court of Justice, 2018).
4. The Security Council (SC) is the most
potent organ with the power to make
legally binding resolutions. It is
compromised of the strongest military
states and is a concrete manifestation of
the reality of power dynamics
The Security council is composed of 15
members, among them would be the five states
which are granted permanent seats by the UN
Charter (Chapter V).
The five permanent members, also known as
the Permanent Five are:
- China
- France
- Great Britain
- Russia
- United States
All of which are allies in the Second World War
and are nuclear states.
5. The General Assembly (GA) is the only
UN organ with universal
representations, with all 193 member
states represented in the body. The
General Assembly decides on
essentials questions with a simple
majority, while concerns related to
peace and security, budgetary matters,
and new membership admissions
require a two-thirds majority.
GLOBALISM VS INTERNATIONALISM
Globalism refers to a worldview or ideology that
emphasizes increasing interconnectedness,
interdependence, and integration across
national boundaries. It advocates for the free
flow of goods, services, capital, and information
across borders.
Examples of globalism can be seen in various
aspects of contemporary society, such as:
Trade: Globalists support free trade agreements
and the reduction of trade barriers to promote
economic integration and maximize global
welfare. Examples include the North American
Free Trade Agreement (NAFTA) and the
Comprehensive and Progressive Agreement for
Trans-Pacific Partnership (CPTPP).
Climate Change: Globalists argue for
international cooperation to address climate
change and environmental issues. The Paris
Agreement, signed by numerous countries in
2015, exemplifies globalist efforts to mitigate
global warming through collective action.

Human Rights: Globalists emphasize the

importance of universal human rights and
advocate for international human rights
instruments and organizations, such as the
Universal Declaration of Human Rights and
Amnesty International.

Internationalism, on the other hand, refers to a

more nation-centric approach to international
cooperation. It emphasizes the importance of
maintaining the sovereignty and independence
of individual nations while recognizing the
benefits of collaboration and diplomacy.
Internationalists focus on bilateral and
multilateral relationships between nations,
working together on specific issues of mutual
interest or concern.

Examples of internationalism include:

Diplomacy: Internationalists prioritize diplomatic

negotiations and agreements between individual
nations to address shared challenges or
conflicts. This can be seen in efforts to resolve
disputes through diplomacy, such as peace
treaties or negotiations mediated by international
bodies.

Humanitarian Aid: Internationalists promote

providing aid and assistance to nations in need
during times of crisis or natural disasters.
International organizations like the International
Red Cross and Red Crescent Movement work
on the principles of internationalism to provide
humanitarian support globally.

Regional Cooperation: Internationalists often

emphasize cooperation within specific regions to
address regional challenges. Examples include
the Association of Southeast Asian Nations
(ASEAN) and the European Union (EU), which
promote regional integration and collaboration in
their respective areas.