FINAL Contemporary Module

The Contemporary World
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CHAPTER 1: DEFINING
GLOBALIZATION
OBJECTIVES:
At the end of the semester, the students shall be able to:
1. differentiate the competing conceptions of globalization;

2. identify the underlying philosophies of the varying definitions of
globalization; and
3. agree on a working definition of globalization for the course
INTRODUCTION
There is a saying that the only constant in this world is change. Change is inevitable.
Over the years, humans have encountered a lot of changes from their social
interactions to their social relationships. Changes in social structures as well are
undeniable. One of the most important changes is globalization (Bauman, 2003). The
reality of all this change that we are part of is what is called – the global age
(Albrow,1996). The access to internet makes people communicate easier and faster all
over the globe. It is easier for now to be updated about news and happenings in all
parts of the world.
With this comes the question of what is globalization. Globalization has no specific or
particular definition for even scholars have their own beliefs and perceptions as to what
may be its definition. Some even argue about it because of their contradicting views.
For example, Swedish journalist, Thomas Larsson (2001) defined globalization as “the
process of world shrinkage, of distances getting shorter, things moving closer. It pertains
to the increasing ease with which somebody on one side of the world can interact, to
mutual benefit with somebody on the other side of the world”. While for Martin Khor, the
former president of Third World Network (TWN) in Malaysia, globalization is colonization.
Figure 1. An example picture of globalization
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Activity Express Yourself
On the box below, make your own definition of globalization. Elaborate
your answer.
THE TASK OF DEFINING GLOBALIZATION
Globalization’s first appearance in the Webster’s dictionary in 1961 paved the way
for the many opinions about it. Its definition could either be classified into two: broad
and inclusive or narrow and exclusive. An example of a broad and inclusive definition
would be of Ohmae (1992), “globalization means the onset of the borderless world…”
While an example of a narrow and exclusive definition is Robert Cox’s “the
characteristics of globalization trend include the internationalizing of production, the
new international division of labor, new migratory movements from South to North, the
new competitive environment that accelerates these processes, and the
internationalizing of the state…making states into agencies of the globalizing world” (as
cited in RAWOO Netherlands Development Assistance Research Council, 2000, p.14).
According to comprehensive studies, 67 definitions of globalization refers to

economic dimensions out of the 114 definitions by the Geneva Center for Security
Policy (GCSP) in 2006. Other definitions also pertain to political and social dimensions.
According to Ritzer (2015), “globalization is a transplanetary process or a set of

processes involving increasing liquidity and the growing multidirectional flows of people,
objects, places, and information as well as the structures they encounter and create
that are barriers to, or expedite, those flows…”(p.2)
So how can we understand and appreciate these numerous definitions of

globalization? First, the definition of globalization relies on the perspective of the person
who defines it.
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Secondly, for sociologist, Cesare Poppi defines globalization as the debate and
the debate is globalization. And lastly, globalization is a reality. It is changing as the
human society develops making the future of globalization hard to predict.
In a nutshell, globalization is not easy to define because of its shifting nature. It is

multifaceted, complex and can easily be influenced by the people who give its
definition.
On a 1/8 illustration board, draw your ideas about globalization.

PROJECT
Make it beautiful and creative as possible.
METAPHORS OF GLOBALIZATION
Metaphors will be of great aid in order to understand a word. The following are the
metaphors used to fully comprehend globalization.
Solid and Liquid
Solidity pertains to the hindrances or barriers that make or prevent the movement of
things difficult. Solids can be man-made or natural. Examples of natural solids are
bodies of water or forms of land. The Great Wall of China would be one of the best
examples for landforms. Just like the imaginary nine-dash line created by the Chinese in
their claim of the South China Sea making it hard and limited for the Filipinos to fish at
the said territory.
On the other hand, liquidity refers to the increasing ease of movement of people,
things, information, and places in the contemporary world. Liquidity pertains to sudden
changes making time and space as crucial elements of globalization. Its movement is
also difficult to stop. Examples of liquidity are the changes in stock markets only in
seconds and of videos getting viral on Facebook or You Tube. Between solidity and
liquidity, liquidity is what best describes globalization nowadays.14
Figue 2. South China Sea
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Flows
Flows are the movement of people, things, places, and information brought by the
growing “porosity” of global limitations (Ritzer, 2015). There are a lot of examples of
flows which can be cited such as the sprouting of milk tea shops, eating of
Samgyeupsal, patronizing Starbucks, the craving for S&R pizza, addiction to burger and
fries – foods introduced to us by foreign cultures. This just proves that even foods are
being globalized. Other examples of flows would be global financial crisis, poor illegal
migrants flooding in all parts of the world (Moses, 2006), the virtual flow of legal and
illegal information like blogs and child pornography, and even immigrants recreating
ethnic enclaves in host countries. Concrete examples of this are the OFWs in all parts of
the globe and the Chinese community in the Philippines.
Figure 3. S&R pizza
Activity
Globalization Connects
In the following activity, you are to realize how globalization is plays its
role in everyday life. Read the following sentences and put your answers on the boxes.
1. Give at least 3 of the most recent songs you have listened. Where did they
originate? Identify the nationality of the artist for each music.
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2. What gadgets or devices do you usually use when listening to music?
3. Where were these gadgets or devices made? Where is the company based?
4. How were you able to access this music? Is it through You Tube, Spotify or other
music channels?
5. In what way do you think music plays a great role in globalization and how does
music connect to different aspects of life like with politics, sports, celebrities, or
other world phenomenon? Elaborate your answer.
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GLOBALIZATION THEORIES
There are important theories of globalization. These theories see globalization that
increases either homogeneity or heterogeneity.
Homogeneity refers to the increasing sameness in the world as cultural inputs,

economic factors, and political orientations of societies expand to create common
practices, same economies, and similar forms of government. This has always been
linked t cultural imperialism wherein a given culture influences other cultures. An
example of this is Christianity being the dominant religion in the Philippines which was
brought by the Spaniards. Another is Americanization as defined by Kuisel (1993) as
“the import by non-Americans of products, images, technologies, practices, and
behavior that are closely associated with America/Americans” (p.96). Stiglitz (2002),
blamed the International Monetary Fund (IMF) for its “one-size-fits all” approach which
treats every country in the world as the same. This only leads for the rich countries to
become advantageous in the world economy at the expense of poor countries,
leading to increased inequality among nations. Barber (1995) said that “McWorld” exists
– only one political orientation is growing in today’s societies.
The internet can be seen as an alternative media as for McChesney (1999), global
media is being “extended from old media to new media” (p.11), such as Microsoft,
Facebok, Twitter, Google, and Apple’s iTunes. The global flow of media is often
characterized as media imperialism wherein televisions, music, books and movies play
high influence by the west. (Cowen, 2002).
Ritzer (2008) claimed that, generally, the contemporary world is undergoing the
process of McDonaldization. This is the process in which Western societies are
dominated by the principles of fast food restaurants. It involves the global spread of
rational systems, such as efficiency, calculability, predictability, and control.
On the other hand, heterogeneity pertains to the creation of various cultural

practices, new economies, and political groups because of the interaction of elements
from different societies in the world. This also refers to the differences because of either
lasting differences or the hybrids or combinations of cultures that can be produced
through the different transplanetary process.
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DYNAMICS OF LOCAL AND GLOBAL CULTURE
There are three perspectives on global cultural flows and these are differentialism,
hybridization, and convergence.
Cultural differentialism emphasizes the fact that cultures are different and are
superficially affected by the global flows. The interaction of cultures often leads to
“catastrophic collision”. For instance, the interaction among the different civilizations
would just lead to intense clashes like with the Western and Islamic civilization as one
good example. This theory has been disagreed by others because of its portrayal for
Muslims as being “prone to violence” (Huntington, 1996).
On the other hand, globalization is also a creative process which gives rise to
hybrid entities and wherein global flows involve people, technology, finance, media,
and political images lead to the creation of cultural hybrids. Cultural hybridization
emphasizes the integration of local and global cultures (Cvetkovitch and Kellner,1997).
Cultures also are deemed to being altered by strong flows while cultural
imperialism happens when one culture imposes itself on and tends to destroy at least
parts of another culture. John Tomlinson’s idea is that cultural imperialism is
“deterritorialization” of culture. This means that it is harder to tie culture to a specific
geographic point of origin. The cultural convergence approach emphasizes that
homogeneity is introduced by globalization.
THE GLOBALIZATION OF RELIGION
Undoubtedly, globalization has played an essential role in the current revival and
development of religion. Religion’s spread in the society and even to the world has put
a great impact with globalization.
Figure 4. Globalization
of Religion
With the dissemination of religion, information technologies, transportation means

and the media plays vital roles. For instance, there are countless websites that were
created to give information and explanations about different religions. This makes
internet an instrument for people in all parts of the globe contact each other holding
discussions, debates and forums wherein ideas about religion can be spread.
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Another essential with the dissemination of religion is the media. With the aid of radio
stations, television channels and print media as advocates, different religions are being
spread into the world.
As Turner (2007) explained: Globalization transforms the generic “religion” into a

world-system of competing and conflicting religions. This process of institutional
specialization has transformed local, diverse and fragmented cultural practices into
recognizable systems of religion. Globalization has, therefore, had the paradoxical
effect of making religions more self-conscious of themselves as being “world religions.”
(p.146)
GLOBALIZATION and REGIONALIZATION
Regionalization is one part of the world that encourages regionalization elsewhere

by imitation. The age of economic globalization has also been the age of
regionalization. Thus, regionalism is seen as a critical part of the political economy of
globalization (Hurell, 2007, p.4). The ASEAN and the Shanghai Cooperation Organisation
(SCO) are regional organizations that seek strong security in Asia through cooperation.
On the contrary, Huntington (1996), believed that culture and identity are
civilizations. He identified nine major civilizations: Western, Latin American, African,
Islamic, Sinic, Hindu, Orthodox, Buddhist, and Japanese.
Assignment
Search in the internet 3 news which can be related with globalizations and utilize the
pictures about the news (one news per bond paper). These would be put in short bond
papers using Microsoft Word with captions below the pictures about the news and
explain how each of the news is related with globalization.
ORIGINS and HISTORY of GLOBALIZATION
Where and when did globalization started? There are different views about this. At
one belief, the major points of the beginning of globalization began after the Second
World War.
Hardwired
It is because of our basic human need to make our lives better that made the
possibility of globalization according to Nayan Chanda (2007). This just means that the
beginning of globalization was from our ancestors in Africa who walked out of the said
continent in the late Ice Age. This long journey led them to all the continents in the
world, roughly 50,000 years ago.
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Commerce, religion, politics, and warfare are the “urges” of people toward a better
life stated by Chanda (2007). These are connected to the four aspects of globalization
which can be traced throughout history: missionary work, conquest, trade, and
adventures.
Cycles
There is the notion that this may reappear or vanish. For others, globalization is a
long-term cyclical process which makes knowing its origin is a complicated task. What
matters are the cycles that globalization has gone through (Scholte, 2005).
Epoch
These are also referred to as “waves” and each has its own origin. Ritzer (2015) cited
Therborn’s (2000) six great epochs of globalization. The following are the sequence of
occurrence of the epochs.
1. Globalization of religion (fourth to seventh centuries)

2. European colonial conquests (late fifteenth century)
3. Intra-European wars (late eighteenth to nineteenth centuries)
4. Heyday of European imperialism (mid-nineteenth century to 1918)
5. Post-World War II period
6. Post-Cold War period
Events
Some specific events are part of the fourth view of globalization’s origin. Gibbon
(1998) argued that Roman conquests centuries before Christ were its origin. While in
an issue in a magazine the Economist (2006, January 12), considered the rampage
of the Genghis Khan’s armies into Eastern Europe in the thirteenth century. And for
Rosenthal (2007), same goes to the voyages of discovery such as Christopher
Columbus’s discovery of America in 1942, Vasco de Gama in Cape of Good Hope
in 1498, and Ferdinand Magellan’s completion of his circumnavigation of the globe
in 1522.
The recent technological advances in transportation and communication also

can be regarded as the beginnings of globalization. This includes the first translantic
telephone cable (1956), the first translantic television broadcasts (1962), the
founding of the modern internet of in 1988, and the terrorist attacks on the Twin
Towers in New York (2001). More and more specific events will characterize not just
globalization’s origin but also more of its history.
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Figure 5. Translantic Television
BROADER, MORE RECENT CHANGES
These fifth view of the broad changes happened during the last half of the
twentieth century. According to some scholars today, these three notable changes
are the origin of globalization. They are as follows:
1. The emergence of the United States as the global power (post-World War II)
2. The emergence of multinational corporations (MNCs)
3. The demise of the Soviet Union and the end of the Cold War
The United States was able to outrun Germany and Japan in terms of industry
through its dominant military and economic power after World War II. After which, the
United States began to progress in different aspects like in media, diplomacy, film (as in
the Hollywood) among others.
Countries like the United States, Germany, and Great Britain had their homeland
great corporations the world knows today. Before MNCs came into being, their origins
roots during the eighteenth to early nineteenth centuries.
The more recent than the two would be the fall of the Soviet Union in 1991. This
paved the way for the opening of the major parts of the world since the early twentieth
century. There is the vast spread of many global processes throughout the world –
immigration, tourism, media, diplomacy, and MNCs. This marked for the so-called “free”
world. China even as being a communist country, is becoming a major force in global
capitalism (Fishman, 2006) and even in terms of other aspects such as the hosting of the
Olympics in 2008.
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PROJECT
Search the internet for the following movies about war and make a reflection paper
after watching the movie of your choice. Explain also the connection of the movie to
globalization. Here are your choices.
1. The American Sniper

2. Twelve Strong
3. Hacksaw Ridge
4. The Lone Survivor
5. Unbroken
6. Fury
GLOBAL DEMOGRAPHY
The singular historical period during which mortality and fertility rates decline from
high to low levels in a particular country or region is called demographic transition.
It was during the mid or late 1700s that transition started in Europe. Death rates and
fertility began to decline during that time. High to low fertility happened 200 years in
France while it was 100 years in the United States. It was only in the twentieth century
that mortality decline in Africa and Asia, with the exemption of Japan.
It was during the nineteenth century that Europe and the West had an increased
share in the world’s population. In terms of the age structure, the overall trend in Japan
and the West was downward until 1950. It only increased temporarily when the baby
boom after the Second World War occurred.
Developing countries like India and the Philippines had higher dependency ratios
compared to the West in 1900.
GLOBAL MIGRATION
Since the earlier times, the movement of people from places to places has been
evident. There is the categorization of “vagabonds” and “tourists” (Bauman, 1998).
Vagabonds are those people who are on the move because “they have to be” (Ritzer,
2015, p.179) – they are not faring well in their home countries and are forced to move in
the hope of improved circumstances. While tourists are on the other hand, move
because they want to be and because they can afford it.
Refugees are vagabonds forced to flee their home countries due to safety
concerns (Haddad, 2003). According to Kritz (2008), those who migrate to find work are
involved in labor migration.
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Many countries face issues of illegal migration. The United States faces a major influx
of illegal immigrants from Mexico and other Central American states (Thompson, 2008).
In addition, tighter borders have also had the effect of “locking in” people who might
otherwise have left the country (Fears, 2006). Great Britain, Switzerland, Greece, and
other countries in Asia have the same concerns about illegal immigration.
Immigrants constitute of younger workforce in the North which locals cannot

perform. They send remittances back to their country of origin, which improves the lives
of the recipients, reduces poverty rates, and increases the level of education as well as
the foreign reserves of the home country (Economist 2007, November 1). Since banks
are unwilling and unable to handle the type (small amounts of money) and volume of
remittances, specialized organizations play a major role in the transmission of
remittances. According to Malkin (2007), the Philippines is one of the leaders in the flow
of remittances, next to India and China,
Diasporization and globalization are closely interconnected and both their

expansion is a domino effect to each other. Paul Gilroy’s (1993) conceptualization of
diaspora as a transnational process, involves dialogue to both imagined and real
locales. The term “diaspora” is used to describe migrant communities.
Assignment:
With the aid of the internet, search for at least one documentary about OFWs and
make a reflection paper about it connecting it to globalization.
PROJECT
Create a 1-2 minute video about the pandemic Covid-19 which they will post on
their Facebook account. The video’s content should be about its effect about the
contemporary world.
Figure 6. The Coronavirus
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CHAPTER 2: THE GLOBAL

ECONOMY
OBJECTIVES:
1. define economic globalization;

2. identify the actors that facilitate economic globalization;
3. define the modern world system; and
4. articulate a stance on global economic integration.
INTRODUCTION:
The Eight Millennium Development Goals which is created by the United Nation (UN)
in the 1990s is the basic guide in addressing the different problems in the world. Among
these eight goals which the UN tried to achieve in the year 2015 are as follows:
1. Eradicating extreme poverty and hunger.

2. Achieving universal primary education.
3. Promoting gender equality and women empowerment.
4. Reducing childhood mortality.
5. Improving maternal health.
6. Combating diseases like HIV/AIDS and Malaria.
7. Ensuring environmental sustainability.
8. Having global partnership for development.
We have different living standards around the globe and it has dissimilar version of
defining those standards depending on the subject country. According to UN a person
who earns below Php 100,534.00 a year and estimated Php 275.00 a day in the
Philippines is considered as a person living in poverty line or poverty threshold.
Figure 1.0
Image Source: Richmondvale.org Image from: worldvision.ca
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According to UN (2015) a condition characterized by severe deprivation of basic

human needs including food, safe drinking water, sanitation facilities, health, shelter,
education, and information is classified as Extreme or Absolute Poverty. A person who is
living and earning less than USD 1.25.00 a day, is under the category of extreme or
absolute poverty according to UN. The year 2030 is the target deadline of UN to
eliminate this extreme or absolute poverty.
The UN (2015) reported that there is 836 million people still living in poverty at the
present, from the previous reports of UN the total number people living in poverty are at
1.9 billion, meaning there is a huge improvement in the progress of the economy. It was
predicted by the World Bank that by the year 2030 the people living in poverty will drop
to 400 million if the progress of the global economy will continue to improve.
Some factors that helps extreme poverty to decrease are as follows:
 Better Access to Education

 Humanitarian Aid
 Better Policies of International Organizations
 Ex. United Nation (UN 2015)
 Economic Globalization
Due to economic Globalization, the world’s economies and the growth of many
developing countries have become more interconnected.
Activity
Simply explain in your own words the difference between people living in Poverty
Line or Threshold and people living in Extreme Poverty or Absolute Poverty, and site
examples of area or country that may have great numbers of people who live in
extreme poverty.
ECONOMIC GLOBALIZATION AND GLOBAL TRADE
According to the UN (as cited in Shangquan, 200), “Economic globalization

refers to the increasing interdependence of world economies as a result of the
growing scale of cross-border trade of commodities and services, flow of
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international capital, and wide and rapid spread of technologies. It reflects the
continuing expansion and mutual integration of market frontiers, and is an
irreversible trend for the economic development in the whole world at the turn
of the millennium.” Source: The Contemporary World, Prince Kennex Reguyal Aldama.
This means that all transactions made by one country to another country in terms of
services or goods by trade is part of the Economic Globalization, this are the factors
that made the Global Economy to improve and expanded the economic
development to different nations. Due to this trend the improvement or the capacity to
develop of each country is dependent on how far they extend their transactions. Each
country is affected by one another due to these global connections.
Like for example, in the Philippines most of the agricultural product that we harvest is
being trade or being exported to different countries. Philippines is one of the greatest
supplier of agricultural product in the world where in some of this product are being
recognized and being patronized by other countries.
Activity
Name some of the Philippine Products that are being exported to other countries
and name the countries they are being exported with.
TWO TYPES OF ECONOMIES ASSOCIATED WITH ECONOMIC GLOABALIZATION

1. Protectionism
2. Trade Liberalization
Protectionism
This is a policy of systematic government intervention in foreign trade with the
objective of encouraging domestic production.
It refers to government policies that restrict or prevent international trade to help
domestic industries. Protectionist policies are usually implemented with the goal to
improve economic activity within a domestic economy but can also be implemented
for safety or quality concerns. (source:ww.investopedia.com)
This means that the government would want to help the local or domestic
producers of a certain country. They would require Tariffs that may affect the selling
price of a product. Like for an instance, the rice that are being harvested and
produced in the Philippines will cost Php1,800.00 per 50kgs inside the country if it will be
imported to other countries the local producer will be required to pay a Tariff of Php
800.00 before exporting the product. In this case the Php1,800.00 will be exported to the
amount of Php 2,600.00 which is not quite recommended. When this kind of policy if
implemented on a certain country the competition between exporter and local traders
will be in favor of local traders and it will prevent exporters in exporting products.
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Source: marketbusinessnews.com globaltrademag.com

Activity
Name a Philippine product that is mainly affected by a Tariffication Law and

explain in your own words why it was affected.
Trade Liberalization
Trade Liberalization is the removal or reduction of restrictions or barriers on the

free exchange of goods and services between nations. These barriers include tariffs,
such as duties and surcharge, and nontariff barriers, such as licensing rules and quotas.
(source:www.investopedia.com)
The dominant economic policy is heavily influenced by World War II shifting it

from Protectionism to Trade Liberalization of free trade. Free trade agreements made
the transport of goods and services around the globe much easier and faster and most
of all less expenses in the operation also affecting the prices to be more competitive.
For an instance the good effect of modern technology in the economy is

somehow a contributor in reducing poverty. According to the economist Jeffrey Sachs,
mobile phone are the “single most transformative technology” when it comes to
developing country. Some of the benefits by having a mobile phone is it give easy
access to online banking and online payments systems it also provide better access to
education and faster dissemination and receiving of information.
In the Philippines at present even simple farmers and other agriculture worker
utilized mobile phones in knowing the best prices of agricultural supplies and may know
the market value price of the product or crop they are trading.
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Image from: 4liberty.eu
Activity
Name a Philippine Company Brand that serves or trade products globally and
also name the country where it was first established outside the Philippines.
ECONOMIC GLOBALIZATION AND SUSTAINABLE DEVELOPMENT
Economic Globalization describes the advancement of the global integration of

the economy, culture and political structures. The sustainable Development Goals
(SGDs) are set of policies goals that attempt to implement the principle of sustainability
on the economic, social and ecological level in every country of the world.
(source:www.greens-efa.eu)
One of the major issues that globalization is having today is on how to sustain the
resources that is being consumed for the development of the economy. Economic
growth relies on the development of businesses, transportation, communication, source
of energy and industries. All of these factors are interconnected to each other and will
always consume the natural resources of the world. The only question is, “how does
economy sustains its development if the natural resources are not being utilized
properly?
The development and growth of economic status of a certain country is very

beneficial to its residence but it has a price to pay and natural resources to sacrifice.
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Source: lifewideeducation.uk
Activity
In the process of growing economies, how does one country sustain its
development and what are the sacrifices it has to give? Explain in your own
understanding.
ENVIRONMENTAL DEGRADATION
Environmental degradation includes physical effects (such as disfigurement of

the land surface), aesthetic degradation effects (such as scenic degradation), and
ecological effects (such as disruption of biodiversity and deforestation.
Source:https://www.sciencedirect.com/topics/earth-and-planetary-sciences/environmental-degradation
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Image source: www.conservationinstitute.org
We always think of economic development and all of the improvement we can

do for the advancement of our world, which is very beneficial to all of human kind. We
already forget about where do we take those resources? Are they unlimited? Can we
replace those resources? What if all this resources are depleted? Do we have any other
option in replacing those resources? These are some of the many questions that we
may encounter in the process of developing our economy. The natural resources of the
world are being degraded due to the continuous consumption and utilization.
Like for an instance, we always wanted to save our forest and write on a paper
as advertisement and reminder, but to produce a paper we should use and cut a tree.
The act of saving a tree is very helpful for the environment but the process would
require a sacrifice of the trees that we wish to save. So as time goes by, technology
took place and delivered us with advertisements that would not require papers to write
on and provided us with computers, multimedia sites and other electronic gadgets that
can be used in the absence of a paper.
Activity
Cite some examples of Economic Development that causes Environmental
Degradation, briefly explain how it causes degradation to the environment.
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FOOD SECURITY
The Food and Agricultural Organization (FAO) defines food security as when all
people, at all times, have physical, social and economic access to sufficient, safe and
nutritious food, which meets their dietary needs and food preferences for an active and
healthy life. Source: www.sciencedirect.com
In 2018 the total population recorded by World Bank is 7.594 billion and it is
estimated to increase to 9 billion in 2050 (Breene, 2016). This is the number of population
that should be provided with healthy food in the future. The major challenge as of
today is how do the Government of a certain country sustain the needs of the people,
how will they provide healthy, clean and affordable food for all?
This is the major challenge that the world is looking forward, without food
everything will go down. All people basically need food to eat in order to fulfill their role
in the world. Food Security is such a priority for every country even developed or
developing country. The increasing population in the world would highly affect the
increase in demand of basic food.
Activity
Name some industries that contribute to the food supply of a certain country,
and enumerate some of the products they are producing.
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ECONOMIC GLOBALIZATION, POVERTY, AND INEQUALITY
Image source: www.littleusgoneglobal.wordpress.com
Companies from all over the world always look for palaces where they can
produce their product at a lower cost of production, mainly the cost of materials and
cost of labor. This is one way of outmaneuvering their competitors and is the result of
Economic and Trade Globalization. For example, mobile phones made in Germany are
much expensive than mobile phones made in China, meaning the cost of production in
Germany is more expensive than the cost of production in China. Another example,
shoes made in the Philippines are less expensive than shoes made from United States of
America. Companies doing this kind of strategies gain more profit and being patronized
by developing countries because they can sell their products at a lower price. But then
again for the local workers earning a minimum wage are seem to be losing their
chance to earn more, instead of earning a higher wage abroad they will only receive
local minimum wage if they work in their own country.
In the question of who is the winner is this? It is the companies, corporations and
stockholders. Workers will remain at their level while companies will gain more.
TWO TYPES OF ECONOMIC INEQUALITY
Income inequality is an extreme disparity of income distributions with a high

concentration of income usually in the hands of a small percentage of a population.
When income inequality occurs there is a large gap between the wealth of one
population segment compared to another. There can be varying types of income
disparity segregations and analysis used to understand income inequality.
source: https://www.investopedia.com
Basically speaking Income inequality refers to the fact that different people earn
different amount of salary or money.
Wealth Inequality refers to the distribution of assets and ownership of assets in a

certain nation. This may be measured by the Gross Domestic Product (GDP) of a
country and differentiate to other countries wealth. Wealth refers to the total assets of a
nation, either natural, physical, or human less the liabilities.
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In other words wealth inequality means that the global wealth is not distributed
equally. The stronger the country is the higher chances it may have in owning more
percentage of the global wealth, so the weaker the country is the less chances of it to
own a percentage in the global wealth.
Image from: https://fee.org/articles/regulations-widen-wealth-inequality
Activity
Briefly explain the difference between income inequality and wealth inequality.
22
THE THIRD WORLD AND THE GLOBAL SOUTH
The idea of being included in the third world country came from the time of
COLD WAR, this are the division of three political and economic alliances. First world
countries are Western Capitalist, Second world countries are the Soviet Union and its
allies and the remaining countries are recognized as the Third world. After the Cold War,
Soviet Unions and its allies are removed from the equation, the First World and the
Second World remains. Third world countries are associated with the weak countries
and the First World Countries are the rich and industrialized countries.
In the current period, social scientist categorized countries by their economic

productivity and they use the Gross Domestic Product (GDP) to measure the total
output of a country and also use the Gross National Income (GNI) that measures per
individual person’s income.
To make it simpler, social scientist use Global North and Global South to classify
countries. Global North includes USA, Canada, Western Europe and developed parts of
Asia which are recognized as First World countries. While Caribbean, Latin America,
South America, Africa and parts of Asia are included in the Global South, which are
nowadays recognized as the Third World countries.
23
Activity
In your own words, at the present time, explain why it is important to know the
classification of countries,
THE GLOBAL CITY
Based on the concept of global cities by Saskia Sassen in her 1991 work,
New York, London and Tokyo are classified as Global Cities or Alpha Cities. They
are considered as economic centers and wield control over the world’s political
economy and they are considered the wealthiest cities in the world. They
influence the most powerful and influential businesses in world and attracts other
countries or cities to invest and put up their business within this areas.
Source: https://www.dailymail.co.uk/travel/travel_news/article-6363395/London-beats-Paris-New-York-Tokyo-
named-best-city-world-2019.html
24
Global cities take advantage of the globalization and they play the
leading role in the part of globalization. People who leave in global cities are
skilled and they work continuously and also consume the products inside the
global city, in other words they work and they consume repeatedly. Due to high
demand of needs inside the global city, instead of importing goods from rural
cities and other nearby countries, they would prefer to produce products and
other materials within their boundaries so they would control also the flow and
the prices of their market area.
Therefore, since the global cities can provide product and other materials
on their own, the relationship from other places will be altered or will be in a
different manner at present, like for example of agricultural products, if they can
provide it inside the city it will no longer need to import any materials from other
rural producers. In this status, rural places will have limits on their production and
will experience low prices of commodities due to high volume of products.
Producers or businesses will choose to relocate on global cities for better
chances of success rather than rural areas.
Activity
How does a Global City shake globalization? Choose at least two (2)
reasons and explain them briefly.
THEORIES OF GLOBAL STRAFICATION

In the world today, it is easy to identify those highly developed countries
and those developing countries at present. We can see that those developed
countries are more powerful than other nations. Most of them also are
technologically advanced than other countries. In this case, why do other
countries developed faster than other countries?
The following theories of Global Stratification may give us some answers:
1. MODERNIZATION THEORY
2. WALT ROSTOW’S FOUR STAGES OF MODERNIZATION
3. DEPENDENCY THEORY
4. THE LATIN AMERICAN EXPERIENCE
25
MODERNIZATION THEORY
This theory explicitly determines the two historical events that contributed
to Western Europe developing at a faster rate than much of the rest of the
world. It also frames global stratification as a function of technological and
cultural differences between nations. The first event is known as the:
Agricultural staples gained by the European countries like potatoes and

tomatoes, which contributed in the growth of population which also provide
opportunities for trading and strengthen the power of merchant class.
Columbian exchange has a negative effect also mainly with Native Americans
who experience decreased in population by 80%. There are killed by diseases
brought by Europeans like smallpox and measles.
Industrial Revolution is the next historical event, this occurs in the

eighteenth and nineteenth centuries. Technologies arise in this event, like for
example steam power and mechanization. This technologies were used to
replace human labor, it also help increased the level of productivity and gave
manufacturers and business owners a high volume and faster production with
less human activity.
Industrial revolution is a big help to developing countries, but there are still
countries which are less willing to embrace the modernization process. This is
because they still respect old traditions which they always preserve and wanted
26
to be passed on to their next generations. These are societies steeped with

family system and traditions.
Activity
Why do countries need to adopt with Modernization and give some
examples of modernization process?
WALT ROSTOW’S FOUR STAGE OF MODERNIZATION
In accordance with the work of Walt W. Rostow, there are four stages in
the modernization process. First is;
27
Resources in around these societies are limited and most of them focused of
production of basic necessities like food, strict social hierarchy is also
implemented in these societies. Some examples of are feudal Europe and early
Chinese dynasties. Traditions are very important to them and they would want it
to be passed on to the new generations and traditions rules on how the society
will function.
The second stage is;
In this stage, innovation started to grow to individual person, they work beyond
their usual limitations. Greater individualism takes place and social status is more
closely linked with materials and wealth. People started to trade not only on
their inner society, instead, they cross borders of other societies.
The third stage will be called by Rostow as the:
In this stage, most of the societies or nations are starting to improve educational
system and promotes more democratic political system.
The last or final stage by Rostow is the:
28
This stage describes the rise of specials wants of an individual. They purchase
things that are not really necessities in life. Examples of these are car
accessories, fancy clothes, jewelries, and other non-essentials things.
Activity
In your own words, explain how you understand the four stages of
modernization by WWR.
DEPENDENCY THEORY and the LATIN AMERICAN EXPERIENCE
Europeans started claiming lands for Europe in 1500s they spread

throughout America, Africa, and Asia. On the other side, the British Empire
started to claim about one-fourth of the world. In this time slavery and
colonialism started and those weak countries are colonized and became slaves
by powerful countries like Europeans, British Empire and Americans. As time goes
by human slavery faded and powerful countries focuses on how to resolve the
shortage in resources.
After the colonialism and slavery period, all countries are set free on their
own and became independent. However, some countries still have slow
improvement progress. It seems like Globalization make them slower compare
to richer nations in terms of economic growth. Richer countries became richer
and weaker countries still strive to have a faster development.
This why dependency theory focuses on how weaker countries are being
wronged by richer nations. The only answer is richer nations became richer
because of the resources being harvested to weaker nations on lower cost.
Nevertheless, weaker nations received products and equipment in order to
improve their economy from rich nations on a higher cost.
29
THE MODERN WORLD-SYSTEM
This topic is all about the model of the American sociologist IMMANUEL
WALLERSTEIN. He called it as the Capitalist World Economy. He described high-
income nations as the “core” of the world economy. The core or these high
income countries are the center of production were resources of the world are
being processed to turn them in technology and wealth being enjoyed by the
western world.
“Periphery”, as describe by Wallerstein, are the Low-income countries who

support richer countries by providing them with human labor and natural
resources.
“Semi-Periphery”, this are middle-income countries like India and Brazil,

their closer ties to the core or high-income countries brands them as middle-
income countries who earn much higher income than Periphery countries.
30
Activity
1. Search for At least 3 countries under Core category.

2. Search for At least 3 countries under Periphery category.
3. Search for At least 3 countries under Semi-Periphery category.
31
CHAPTER 3: MARKET INTEGRATION
OBJECTIVES:
1. explain the role of international financial institutions in the creation of a global

economy;
2. narrate a short story of global market integration in the twentieth century; and
3. identify the attributes of global corporations.
INTRODUCTION
This chapter will show the contributions of different financial economic
institutions that facilitated the growth of the global economy. The history of the
global market will be discussed by looking at the different economic revolutions.
The growth and dynamics of multinational corporations that are emerging in
today’s world economy will also be examined.
So what is Integration? According to Ulrich Koester;
It simply means that it is the process of combining different national

economies to build larger economic regions. These are the connection,
arrangement and agreement between nations and institutions to create a
bigger and stronger union.
32
INTERNATIONAL FINANCIAL INSTITUTIONS

What is International Financial Institutions?
Some examples are World Bank, Asian Development Bank, Islamic Development
Bank. Each of these international banks has their own goal for the global
economy. Each one of them greatly affect the growth of the world’s economy,
like in the phrase saying “When the American sneezes, the rest of the world
catches a cold” but always remember this only applies to those high income
countries, for instance would Philippines affect the global market if it will suffer
from financial crisis? I would rather say not, but if China, Russia or America is
suffering from a financial dilemma the answer is definitely yes.
The following are financial institutions and economic organizations that
made countries even closer together, at least, when it comes to trade.
THE BRETTON WOODS SYSTEM

It was established after the Second World War, to create a new world
financial system to avoid lack of cooperation among nations, political stability,
and economic turmoil. It focuses on the reduction of barriers to trade and free
flow of money and ensures global financial stability. Americans played the
biggest role in the Bretton Woods System among the 44 delegates who joined
33
the conference of establishing the Bretton Woods System, since USA holds 2/3 of
the gold reserves after the war. Central Bank of each country was also
established during this period and also World Bank and International Monetary
Fund (IMF) are founded.
Activity
Search for 3 more reasons regarding why the USA became the main
character of the Bretton Woods System, and briefly explain.
Activity
Give an international bank and identify its goal that may help the
improvement of the global economy.
THE GENERAL AGREEMENT on TARIFFS and TRADE (GATT) and THE WORLD TRADE
ORGANIZATION (WTO)
GATT or General Agreement on Tariffs and Trade was established in 1947.
Due to the effect of the Bretton Woods System, GATT was created to
concentrate on trade goods through multinational trade agreements
conducted in many “rounds” of negotiation.
The WTO or World Trade Organization is an independent multilateral
organization that became responsible for trade in services, non-tariff-related
barriers to trade, and other broader areas of trade liberalization. The
headquarters of WTO is located at Geneva, Switzerland with 152 member states
as of 2008. The general idea where the WTO is based was that of neoliberalism.
This means that by reducing or eliminating barriers, all nations will benefit.
34
These entities are created to manage global trade among nation and to
formulate rules that will help the proper flow of trade within the globe. However,
there are still some negative impact brought by these entities like less limitations
among countries in terms of trading, mass productions of product which resulted
to pollutions that weakened the environment and also weak countries are
having difficulties competing around the world with richer countries which
causes unemployment for smaller countries.
Activity
Briefly explain the difference between GATT and WTO and choose 1 topic
only.
THE INTERNATIONAL MONETARY FUND (IMF) AND THE WORLD BANK

In the end of World War II, the economic stability and political stability of
the world became ambiguous. The economy started to rise again. The WORLD
BANK and INTERNATIONAL MONETARY FUND helped the world to get up again.
Their clients are not individual persons, instead they cater countries who are
having problems with their financial status.
The IMF’s main objective is to assist countries which were in trouble looking
for financial aids due to economic crisis. IMF’s serves as lending center of
countries meaning they lend cash to countries to help them with their struggles.
Unlike with the World Bank, it aims to eradicate poverty around the globe.
It funded projects of a certain country which would help to achieve their goals.
Mainly the investment of a country in education to help their citizens became
well-educated and competitive to other countries.
These two institutions have helped a lot of countries to get back on their
feet, along with this they also helped some corrupt political leaders and
sometimes they are having problems in collecting back their money.
35
Activity
Why do these two institutions keep on helping underprivileged countries?
What do they get in return of their help? Is there any impact in the world
economy when they help these countries?
THE ORGANIZATION FOR ECONOMIC COOPERATION and DEVELOPMENT (OECD),

THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES (OPEC), and THE
EUROPEAN UNION (EU)
The richest countries in the world have a club or organization which was
established in 1961. They named it as the Organization for Economic
Cooperation and Development. At present OECD is trying to shape the
international policies through its activity, from publishing papers and data base
and assessing the academic performance of students from various countries
and many more.
36
The Organizations of Petroleum Exporting Countries in 1960 was originally

composed by Kingdom of Saudi Arabia, Iraq, Kuwait, Iran, and Venezuela but
today United Arab Emirates, Algeria, Libya, Qatar, Nigeria, and Indonesia are
included as members. OPEC was established because members of petroleum
exporting countries wanted to increase the price of oil, because in the past it
has a really low price compare at the present and had failed in keeping up with
inflation. Today the most important export product in the world is oil. Almost all of
the factories, machineries and other equipment used in production are being
powered by petroleum.
3 FACTS ABOUT the EUROPEAN UNION.
37
If you wanted to be part of the European Union you must pay a

membership fee. After being a member your citizens are automatically EU
Citizens which means you can cross all borders of the EU without needing a
passport.
There are 28 states inside the European Union, all of these states use a
common currency which is euro, however, Western European nations, like the
Great Britain, Sweden, and Denmark still used their own currency even if they
are part of the EU.
Activity
1. Name at least 3 countries who are member with OECD.
2. Name at least 3 countries who are member with OPEC.
3. Name at least 3 countries who are member with EU.
NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA)
NAFTA was created in January 1, 1994 between UNITED STATES, MEXICO

and CANADA. Before only Canada and the United States have this agreement
in 1989. This is free trade agreement between the three nations, they removed
barriers in terms of trading so there is a free flow of trading among them.
Due to the reductions of barriers between these three countries,
manufacturing jobs transferred to the least developed country which is Mexico
because the cost of production is less expensive in Mexico which causes loss of
jobs for the Canadians and Americans. However business in developed
countries made a fortune with this and became richer because they save more
in the production cost. That is why NAFTA has its negative and positive impact
within the economic development of these three countries.
38
Activity
In your own opinion, what would be the best way or idea to avoid the
negative impact of NAFTA among these three countries? Explain it briefly.
HISTORY OF MARKET INTEGRATION
In the previous times when the economy is much simple than the present
economy, people only strived to produced goods for their family’s needs only.
As time goes by, the economic growth in the world have demanded the
different sectors to work harder and to work together in order to sustain the
needs of the world. To fully understand the cause of this shifting, let us look at
and discuss the topics enumerated below:
1. THE AGRICULTURAL REVOLUTION AND THE INDUSTRIAL REVOLUTION

2. CAPITALISM AND SOCIALISM
3. THE INFORMATION REVOLUTION
THE AGRICULTURAL REVOLUTION
Early civilizations practices agriculture in a primitive way like hunting and

gathering people in a single based stationary farming, but as times goes by
people started to learned new techniques on how to domesticate animals or
livestock and how to plant crops that may sustain their needs in a specific area.
Early civilizations realized that with this kind of agriculture system they can
increase their production without moving to other places. Due to this
development of agricultural system, permanent settlements in a particular area
started, the growth in population also boosted and trading among societies
took place.
39
THE INDUSTRIAL REVOLUTION
In the Agricultural revolution, people learn the systematic way of farming

in traditional process but in the Industrial revolution it makes agriculture work not
only systematic, instead it made it easier for farmers, they invented economic
tools, steam engines, machines for manufacturing and mass productions to help
the industry work faster and better.
Due to this development, business owners started to hire laborers for

operating machines and teach people to develop their skills to the fullest. Along
with this period of revolution, the production of goods has increased
tremendously and the economy started to grow faster than before.
Nonetheless, for every economic development or economic revolution

there are always some inevitable casualties along with it. The destruction of
environment is the first one to be affected. Pollution is one of it, air, land and
water pollution are some examples. Also human labor problems, laborers who
are being hired are put into dangerous task in operating machineries and might
experience accident in exchange of a very low wages. It is assumed that in the
Nineteenth century economic inequalities already existed. In line with this, in the
late nineteenth century, labor unions began to form and organized workers to
seek or to fight for proper amount of compensation. With the help of Marxist
Principles (Marx Labour Theory Value), labour unions gave way for minimum
wage laws, reasonable working hours, and regulations to protect the safety of
workers.
40
Activity
1. What do you think would happen to the economic status of the world,
if the Agricultural and Industrial revolution did not happen?
2. At present, what improvement do you think is needed for our farmers
or for the agricultural system in our country? Kindly elaborate your own
opinions.
CAPITALISM AND SOCIALISM
Capitalism is an economic system in which a country’s trade and industry

are controlled by private owners for profit, rather than the state or the
government. While Socialism is also an economic system theory of social
organization which advocates that the means of production, distribution, and
exchange should be owned or be regulated by the community as a whole.
Basically speaking, Capitalism is based on individual initiative and favors

market mechanism over the government intervention and means that the
government has no control on the operation of the industry while Socialism is
based on government planning and limitations on private control of resources.
Capitalism
41
Socialism
The best impact of capitalism is that it increases production and

employment to a society. It gives chances to individual to earn more profit and
maximized their abilities in doing business. On the other hand, Socialism aims to
protect and regulate the flow of businesses in the society.
Activity
In your own perspective, what do you think is more efficient in terms of
trade and exchange, is it Capitalism or Socialism? Kindly support your answer.
THE INFORMATION REVOLUTION
Nowadays, information around the globe is easier to receive with the help
of new technologies. Some of the examples are Television, Radio, Telephone,
Mail, Mobile Phones, Text Messages, Computers and most of all, the Internet.
Information revolution is a period of change that might prove as significant to
the lives of people. With a faster way of information dissemination, trade and
exchange also became more convenient. Meetings, gatherings and
advertisement of business owners are being held virtually in order to discuss
business arrangements and promotion.
With this kind of advancement the people in the society will surely benefit
from this technology. Computerization is at the root of this change, and
continuing advancements in that technology seem to ensure that this revolution
would touch the lives of people. Computers are unique machines; they help to
extend the brain power. Computerized robots have been replacing blue-collar
workers; they might soon be replacing white collar workers as well. Computers
are merely devices that follow sets of instructions called computer programs, or
software, that have been written by people called computer programmers.
42
Computers offer many benefits, but always remember that there are also
many imminent dangers. They could help others invade one's privacy or wage
war. They might turn one into button pusher and cause massive unemployment.
User-friendly systems can be easily used by untrained people.
Activity
Give at least 3 benefits from the advancement of technologies and also
give at least 3 disadvantages with simple explanations.
GLOBAL CORPORATIONS
When we say Global corporations we are pertaining to those businesses

which operate in two or more countries and face many challenges in their quest
to capture value in the global market. We can also say that it is multinational
corporation (MNC) is present in several countries, which improves the
company’s ability to maintain market share and earn higher profits.
International operations are therefore a direct result of either achieving
higher levels of revenue or a lower cost structure within the operations or value-
chain. MNC operations often attain economies of scale, through mass
producing in external markets at substantially cheaper costs, or economies of
scope, through horizontal expansion into new geographic markets. If successful,
these both result in positive effects on the income statement (either larger
revenues or stronger margins), but contain the innate risk in developing these
new opportunities.
However, despite the general opportunities a global market provides,

there are significant challenges MNCs face in penetrating these markets. Like for
43
an instance, building public relations potential in a new geographic region is an

enormous challenge, both in effectively localizing the message and in the
capital expenditures necessary to create momentum. Also International
expansion requires enormous capital investments in many cases, along with the
development of a specific strategic business unit (SBU) in order to manage these
accounts and operations.
Sometimes Multinational Corporations does not provide long-term
employment to the country where they temporarily reside. The employees are
only given work so that the foreign owners can cut costs and get rich. The
moment the foreign owners stop getting rich, they leave and also leave the
local employees and the economy they were supporting, leaving the country in
the same economic level before they established the corporation.
Activity
Give at least 3 Global Corporation who are established in the Philippines.
Enumerate the products or services that they produce or provide.
44
CHAPTER 4:
THE GLOBAL INTERSTATE SYSTEM

OBJECTIVES:
1. explain the effects of globalization on governments;

2. identify the institutions that govern international relations; and
3. differentiate informationalism from globalization.
INTRODUCTION:
Traditionally, the state has always been the subject of most interest to scholars of
global politics. The state has always been viewed as the “institution that creates
warfare and sets economic policies for a country.” Other countries recognize its
boundaries making state as a political unit that has authority over its own affairs.
Therefore, its leader or in charge of the borders has the right to know exactly if what is
happening in their country. The Treaty of Westphalia of 1648 established the idea of the
nation-state and of sovereignty.
This chapter will discuss about the state, regional alliances, and worldwide
organizations of states, among others. The Amnesty International, other multinational
corporations and non-governmental organizations are important organizations that test
the strength of national autonomy and global politics.
ACTIVITY
Look at the following words below and try to search for their meanings. Give an
example of the words and explain how your ideas about them. The teacher will give
further instructions for the submission.
1. state
2. sovereignty
3. nation-state
4. multinational corporations
5. non-state organizations
6. ISIS
7. Treaty of Westphalia
8. Red Cross
9. national autonomy
10. government
45
GLOBAL GOVERNANCE in the TWENTY-FIRST CENTURY
The declining power of nation-states is the first on the list of specific factors behind
the emergence of global governance. The vast flows of all sorts of things that run into
and often right through the boarders of nation-states is a second factor. The flow of
digital information of all kinds from the internet is included in this which is very difficult to
stop. Another is the mass migration of people wherein some enter various nation-states
illegally. This also involves the problem of the flow of criminal elements and their
products such as illegal drugs, laundered money, sex trafficking, and the like. This needs
call for global governance (Levy and Sznaider, 2006). A need for an effective authority
and improvement of human life are a few of the concerns that must be taken priority.
There are also the horrendous events that happened like that in Darfur, Sudan in
2003, wherein hundreds of thousands have been killed and millions of people have
been displaced, because of the conflict between the ethnic and tribal groups and the
resistance of Sudanese government from outside interference in its internal affairs. In
addition with this, who would forget the Holocaust that happened in WWII?
Besides there are also global problems that single nation-states cannot handle on
their own like the global financial crises wherein Southeast Asian nations have always
been the victims (Strange, 1996).
EFFECTS OF GLOBALIZATION TO GOVERNMENTS
The government is a group of people who have the ultimate authority to act on
behalf of a state and is one of the key aspects of sovereignty. Every state has its own
autonomy and responsibility with its own system of government. In democratic societies,
elections provide the leadership of the state. This also includes the development and
implementation of policies in the interest of the people of a state by a specific
government. On the other hand, civil societies such as the private economy,
educational institutions, churches, hospitals, fraternal organizations, and other non-profit
organizations can also act as counterweight or as a supplement to government.
There are several challenges to the government and these are divided into four
namely: traditional challenges, challenges from national or identity movements, global
economics, and global social movements.
TRADITIONAL CHALLENGES
In 1990, Saddam Hussein was the ruler of Iraq and he decided took over the oil fields
of Kuwait. Because of that, he was later dislodged by an international coalition led by
the United States.
46
Another example is when Russia intervened in the internal affairs of Ukraine. Crimea
was part of Ukraine and declared its independence from it and wanted to become
part of Russia again. Russia intervened in the affairs of people of Crimea. This is an
example of a case of how there might be a national identity within a country that is
assisted by a neighboring country. Ukraine argued to have the autonomy about the
case of Crimea. Later on, this resulted in a conflict between Ukraine and Crimea and
Russia for all them not recognizing sovereignty of each. Another example would be the
Taliban’s efforts to control Afghanistan’s government. Recently, in Europe, it interfered
in the debt crisis of Greece. All of these are some of the examples of external
intervention that leads to invasion by other countries.
Image from: factECards.com
CHALLENGES FROM NATIONAL/IDENTITY MOVEMENTS
A nation has its own cultural identity which its people is attached to while a state is a
definite entity due to its specific boundaries. Despite of this, different people with
different identities can live in different states. Examples of this are the Catalans living
primarily in Spain but some of them can be found in France; the Kurds reside in different
countries like Iraq, Iran, and Turkey and even the Filipinos migrating to other countries.
The Al-Qaeda and ISIS are also examples of national identity movements.
GLOBAL ECONOMICS
It is from the global economics that the third major source of challenge comes from.
Global economy demands the states to conform to the rules of free-market capitalism.
The developments of organizations that cooperate across countries like the WTO and
47
regional agreements, such as NAFTA, the European Union (EU), and the Association of
Southeast Asian Nations (ASEAN) are where government austerity comes from.
In the year 1980 is when neoliberal capitalism or neoliberal economics started and
focused on dismantling trading barriers and on free trade. It also made sure that
governments did not impose restrictive regulations on corporate presence and even on
the free flow of jobs and capital.
The use of IMF and the World Bank in forcing government reforms in poorer countries
is an example of expanding global economic influence. Businesses from developed
countries put their factories and pay people to build their factories and produce goods
in developing countries which worsen the rising inequality in the globe. One example
that explains how neoliberal economics can threaten the sovereignty of a state is
Greece. It was in 1981 when Greece joined the EU. Since EU is a larger alliance, it broke
down all kinds of barriers among its member states, such as passports, visas, and license
plates – allowing people to travel across European borders. After twenty years, Greece
got rid of its drachma and adopted euro as its own currency. And their hosting of the
2004 Olympics made the government of Greece to borrow money for infrastructure
improvements resulting in its large debt. This paved the way for Greece’s economy to
collapse because of the worldwide financial crisis in 2007 and 2008. Some of Greece’s
employees struggled also with their pensions, tax revenues were lower resulting to not
being able to pay their debts back. This further led to a series of austerity. The IMF bailed
them out from the crisis but in exchange for more austerity.
GLOBAL SOCIAL MOVEMENTS
Global social movements are not seen as threat but as challenge to state
sovereignty. Social movements are transnational movements of people that emerge
through enormous grassroots organizations which occur across borders and across
countries meaning that states have less control over there. Examples of this are human
rights movements, environmental movements, consensus on women’s rights and
autonomy, and rights of personal autonomy which includes issues on same-sex
marriage, homosexuality, and gender equality.
THE RELEVANCE OF THE STATE AMID GLOBALIZATION
The state has four elements: people, territory, government and sovereignty. It is a
distinctive political community with its own set of rules and practices and that is more or
less separate from other communities. The first element of a state is a permanent
population.
On the other hand, the nation pertains to people rather than any kind of formal
territorial boundaries or institutions. It is a collective identity grounded on a notion of
48
shared history and culture. The Philippines as a state refers to its territory, and its internal
and external sovereignty. While the Philippines as a nation refers to its shared collective
notion f democracy, history and its collective identity. In short, the state is a political
concept while a nation is a cultural concept. Thus, a nation-state is a territorially
bounded sovereign institution that governs individuals sharing a collective history,
identity, and culture.
Beland (2008) argued that “the role of the state is enduring – and even increasing –
in advanced industrial societies” (p. 48). He saw greater demands being placed on the
state. This is because of the four major sources of collective insecurity: terrorism,
economic globalization which leads to problems of outsourcing and pressures toward
downsizing, the current economic crisis; threats to national identity because of
immigration, and also the spread of global diseases such as AIDs.
ACTIVITY
LET’s HAVE A DEBATE
The class will be divided into two groups. The topic would be about the relevance of
the state amid the processes and structures of globalization.
INSTITUTIONS THAT GOVERN INTERNATIONAL RELATIONS
The United Nations, the International Court of Justice, NAFTA, and NATO are among
the international organizations that governments of countries around the world and
individuals participate in. Besides from these are also non-governmental organizations
that promote social and economic growth.
PEACE TREATIES AND MILITARY ALLIANCES: THE UN AND NATO
One of the leading political organizations in the world where nation-states meet and
deliberate is the United Nations. Former U.S. President Franklin D. Roosevelt coined the
term “United Nations” in 1942 (United Nations, 2011). It remains as an independent
actor in global politics and its operations began on October 24, 1945. It started with 50
representatives from 200 different countries around the world with 193 members to be
exact and the Republic of South Sudan as its latest member (United Nations, 2011). It
functions in four areas generally which are military issues, economic issues,
environmental issues, and human protection. It has its headquarters located at New
City, which was designed to be a place where countries could come to discuss their
issues with the aim of not resorting to violence and war. The number one goal of the
United Nations is to maintain peace and build friendships and provide forums where
countries could gather and discuss global issues. This is called the General Assembly
wherein it is held in an auditorium where speeches are given. The representatives from
49
different member states can also vote on issues. The maintenance of international
peace and security was the central mission of the UN after the war – making UN as the
major force in governing interstate relations (Ritzer, 2015).
The United Nations also has its Security Council. This is composed of a group of
countries which decide on what to do in cases when two or more countries are at the
wage of war or at the verge of fighting. The five permanent members of the UN Security
Council are the United States, Britain, Russia, China, and France which have a veto
power, meaning that one member can stop the entire council from taking action
against a country. 10 additional countries can join the permanent members for a two-
year term which make the council with 15 countries as its members. The Security
Council acts as the arbiter in ceasefires between two sides. As punishment, they can
pass sanctions like block trade with another country and they can also send troops or
observers, and if worst comes to worst, they can use military force.
Aside from fights, the UN has also a program called UNICEF or the United Nations
Children’s Emergency Fund. They collect funds to distribute emergency reliefs from
famine, disease and poverty. Its primary goal is to be able to help children all over the
world. It also provides education programs in areas where there are no schools. Even of
the UNICEF is part of the United Nations, they operate semi-independently and they rely
on fundraising. The main focus of the UN is the reduction of global inequality while
environmental issues, such as pollution and hazardous wastes are addressed through
the United Nations Environment Programme (UNEP).
The United Nations also has the International Court of Justice (ICJ) which is usually
referred to as the World Court. This is located at Netherlands in a town called The
Hague. This is the place where countries can settle their disputes in a court of law and it
is also a place for war criminals and rulers who have done terrible things to their people
and are put on trial for the crimes they committed. There are also a variety of
international courts and tribunals created by the UN such as the International Criminal
Court (ICC) and the International Tribunal for the Law of the Sea (ITLOS), aside from the
ICJ.
The UN also protects and promotes human rights through different organizations
and mechanisms. Human rights have been brought into the realm of international law.
This is reflected in the Universal Declaration of Human Rights. The International Bill of
Human Rights is one of the legal instruments that help the organization which consists of
three legal documents: the Universal Declaration of Human Rights (1948), the
International Covenant on Civil and Political Rights, and the International Covenant on
Economic, Social, and Cultural Rights.
50
Image from: Twitter
Because of being weak and being unable to stop wars, the UN is being criticized. This
is where the North Atlantic Treaty Organization or NATO comes in as an institution
known to play a big role in foreign conflicts. NATO is a defensive treaty or a military
alliance between the United States, Canada, and 25 European countries. This treaty
and international organization is based on the idea of collective security. The countries
in this organization agreed to combine their militaries and announce to the world that if
a certain country tries to mess with one of its members, the other countries will aid for
defense as help and support to the country being messed. NATO was created after the
Second World War. On the other hand, the United States has the most advanced
military in the world which makes up the bulk of NATO forces and operations.
NON-GOVERNMENTAL ORGANIZATIONS (NGOs)
NGO’s are not tied to any country. The Red Cross (Red Crescent in Muslim
countries) is an example of an international organization that was developed out of
war and is considered as a non-governmental organization. As an organization, Red
Cross help those who are wounded during wars. Red Cross is also allowed to freely
operate around the world and provide emergency relief such as food, water, and
medical supplies for those whose homes or towns have been destroyed by war or
natural disaster. They are also monitoring the treatment of prisoners because of war
and they even go to conflicts to ensure that there are no war crimes happening. The
big Red Cross worn by NGO’s is what identifies them as not soldiers. They remain neutral
and help the wounded from both sides of war as part of NGO. The headquarters of the
International Red Cross is in Geneva, Switzerland, and they have branches all around
the globe.
51
Image of the Red Cross from http://www.redcrossneny.org/
There are also a lot of NGO’s dedicated to helping people all over the world in
addition to Red Cross. Doctors Without Borders gives free emergency healthcare in
disaster areas; Oxfam fights against famine and disease; Amnesty International voices
out for human rights and political prisoners; and Save the Children helps kids get
education and health care.
GLOBAL ECONOMIC ASSOCIATIONS: THE WTO AND NAFTA
The World Trade Organization or WTO is an economic association that is made up of

162 countries around the world and was created with the goal of increasing free trade.
This means that countries can buy and sell goods from one another without putting
taxes on imports or tariffs. Tariffs aim is to protect businesses and companies inside their
country.
On the other hand, North America Free Trade Agreement or NAFTA is an economic
organization and treaty between the United States, Canada, and Mexico in which the
three countries trade freely without taxing each other.
GLOBALIZATION AND GLOBALISM
Globalization would be better described as the “increase or decline in the degree

of globalism” (Nye, 2002, p.1) while globalism refers to the network of connections that
transcends distances of different countries in the world. This just means that the links
52
among countries and people are better associated with globalism while globalization is
the speed in which they become linked with one another. Globalization means
connectedness. The world was already connected even before the Industrial
Revolution. The world was under one rule because of the conquests of the different
empires just like the Romans. However, at present, the contemporary world is
characterized through connections from the internet, modern transportation, and other
advanced communication technologies, making the speed of connection as the
difference.
One good example of globalization is the selling of products not only solely through
physical transactions but through online as well especially during the Covid-19
pandemic wherein most Filipinos relied on online selling as a means to sell and as a
mea ns of income. Online selling is a way to be able also to have access to the World
Wide Web.
Although globalism and globalization are often understood in terms of the

economy, Nye (2002) gave “four distinct dimensions of globalism: economic, military,
environmental, and social” (p.2.)
INFORMATIONALISM
Globalism and globalization’s difference is the speed and thickness or intensity of

connections. The type of connection that people have nowadays increases in the
contemporary world. The technological paradigm, associated with computer science
and modern telecommunication that replaces industrialism is called informationalism.
(Castells, 2004). These refer to the media, internet and technology.
In the 1970’s, a notable example of technological advancement is the founding of

Federal Express (FedEx) which uses computer technology in its deliveries. The usage f
MRI’s or Magnetic Resonance Imaging, ultrasound, CT scans, and the like are only a
few of the computer technology being used with regards to health checking. There are
also the launching of satellites, usage of GPS or global positioning systems, among
others.
Another difference of globalism and globalization is “thickness” (Nye, 2002).

Globalism is thin and when it becomes thicker, globalization happens. The Internet is a
mark of the contemporary world. Through it, people can have a connection to the rest
of the world just by accessing the internet through their computers, laptop, cellphones
and other gadgets. This goes also with the usage of social media such as Twitter,
Instagram, and Facebook, among others. There is also the control for the access to the
internet through using of personal passwords or the usage of the “Great Firewall” in the
case of the Chinese government.
53
Activity
COLLECT AND CONNECT
Do a compilation of 30 selected random posts of your friends from Facebook with

different themes (about a product, educational post, a movie, opinion, religious verse,
or status about one’s personal life). Afterwards, write your comments and opinions
about those that you have chosen.
GLOBAL CITIZENSHIP
Being associated with rights and obligations, the right to vote and the obligation to
pay taxes linking an individual to a state is what is called as “citizenship”. Global
citizenship is defined as “a moral and ethical disposition that can guide in the
understanding of individuals or groups of local and global contexts, and remind them
of their relative responsibilities within various communities.” according to Caecilia
Johanna van Peski (as cited in Baraldi, 2012).
To further understand global citizenship, click on the link below.
Source from You Tube: https://www.youtube.com/watch?v=IH8AmE6mV9k
PROJE CT
Students will be tasked to do a scrapbook about the 90’s up to the present

generation wherein they would put pictures and captions. This is for students to
appreciate and understand the changing contemporary world.
54
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FINAL Contemporary Module

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The Contemporary World

At the end of the semester, the students shall be able to:

1. differentiate the competing conceptions of globalization;

Figure 1. An example picture of globalization

Activity Express Yourself

On the box below, make your own definition of globalization. Elaborate

THE TASK OF DEFINING GLOBALIZATION

According to comprehensive studies, 67 definitions of globalization refers to

According to Ritzer (2015), “globalization is a transplanetary process or a set of

So how can we understand and appreciate these numerous definitions of

In a nutshell, globalization is not easy to define because of its shifting nature. It is

On a 1/8 illustration board, draw your ideas about globalization.

Solid and Liquid

Figue 2. South China Sea

Figure 3. S&R pizza

2. What gadgets or devices do you usually use when listening to music?

Homogeneity refers to the increasing sameness in the world as cultural inputs,

On the other hand, heterogeneity pertains to the creation of various cultural

DYNAMICS OF LOCAL AND GLOBAL CULTURE

THE GLOBALIZATION OF RELIGION

With the dissemination of religion, information technologies, transportation means

As Turner (2007) explained: Globalization transforms the generic “religion” into a

GLOBALIZATION and REGIONALIZATION

Regionalization is one part of the world that encourages regionalization elsewhere

ORIGINS and HISTORY of GLOBALIZATION

1. Globalization of religion (fourth to seventh centuries)

The recent technological advances in transportation and communication also

Figure 5. Translantic Television

BROADER, MORE RECENT CHANGES

1. The American Sniper

Immigrants constitute of younger workforce in the North which locals cannot

Diasporization and globalization are closely interconnected and both their

Figure 6. The Coronavirus

CHAPTER 2: THE GLOBAL

At the end of the semester, the students shall be able to:

1. define economic globalization;

1. Eradicating extreme poverty and hunger.

Image Source: Richmondvale.org Image from: worldvision.ca

According to UN (2015) a condition characterized by severe deprivation of basic

Some factors that helps extreme poverty to decrease are as follows:

 Better Access to Education

ECONOMIC GLOBALIZATION AND GLOBAL TRADE

According to the UN (as cited in Shangquan, 200), “Economic globalization

TWO TYPES OF ECONOMIES ASSOCIATED WITH ECONOMIC GLOABALIZATION

Source: marketbusinessnews.com globaltrademag.com

Name a Philippine product that is mainly affected by a Tariffication Law and

Trade Liberalization is the removal or reduction of restrictions or barriers on the

The dominant economic policy is heavily influenced by World War II shifting it

For an instance the good effect of modern technology in the economy is

Image from: 4liberty.eu

ECONOMIC GLOBALIZATION AND SUSTAINABLE DEVELOPMENT

Economic Globalization describes the advancement of the global integration of

The development and growth of economic status of a certain country is very

Environmental degradation includes physical effects (such as disfigurement of

Image source: www.conservationinstitute.org

We always think of economic development and all of the improvement we can

ECONOMIC GLOBALIZATION, POVERTY, AND INEQUALITY

Image source: www.littleusgoneglobal.wordpress.com

TWO TYPES OF ECONOMIC INEQUALITY

Income inequality is an extreme disparity of income distributions with a high

Wealth Inequality refers to the distribution of assets and ownership of assets in a

Image from: https://fee.org/articles/regulations-widen-wealth-inequality