THE CONTEMPORARY WORLD

MODULE II
Last time, we discussed the different working definitions of globalization. One of
those defined globalization as the process of interaction and integration among the
people, companies, and governments of different nations, a process driven by
international trade and investment and aided by information technology
(Globalization101.org). Now, let us find out how this definition will be evident by
distinguishing the types of globalization.

Types of Globalization
1. Financial Globalization - it refers to the ease at which money can be
spread around the world.
Key Features: inter-connected financial systems
Example: stocks exchange and banking
PRO: inter-connectivity and technology = fast access to universal markets
and up-rise to money worth
CON: a downturn in one market can affect the whole world
1 U.S. Dollar = 56.79 Php PESO
If the Philippines would manage to bear with the global demands,
and 1 Peso became equal to 1 U.S. Dollar, you can spend it into:
Php 0.02 Centavos = Candy
Php 0.18 Centavos = Transportation
Php 1.00 = 1 Regular Meal in Jollibee
Php 100.00 = 1 P5,000 worth of Cellphone

2. Economic Globalization – it refers to the ways corporations do business as

multinational organizations nowadays.
Key Features: Before, local micro business owners were stuck within the
locality, but today, sales can increase through global market.
Example: Local Products exported Internationally
PRO: Increase in customers and sales
CON: increased difference between “haves” and “have nots” (increased
social demands) and leads the corporation to have more power than
countries.

3. Technological Globalization - refers to the spread of technology around

the world.
Key Features: the “Global Village” has expanded to every corner of the
globe
Example: communication, transaction and entertainment
PRO: fast and efficient development and financial growth
CON: third-world countries’ growth are slower

4. Political Globalization - refers to the diplomatic negotiations between

nation-states. It includes the standardization of global rules around trade,
criminality, and the rule of law.
Key Features: the uniformity of policies
 Example: safety and assurance; international rule of law
PRO: convenience, strong ties
CON: pressure and drastic changes to third-world countries

5. Cultural Globalization - refers to the spread and mixing of cultures around

the world.
Key Features: harmonization of world culture
Example: eventually have the same taste (in living, in music, food, and
values)
PRO: there will be equal treatment
CON: loss of world cultural diversity, western culture can be of conflict with
some traditions or belief in religion

6. Sociological Globalization - refers to the integration of our societies.

Key Features: having a “single-world” society
Example: accepting social differences
PRO: harmony in daily interaction
CON: None

7. Ecological Globalization - refers to the idea that the world needs to be

considered one interconnected ecosystem.
Key Features: the planet must be treated as a single ecosystem rather than
separate
Example: restoration and protection of forests and animals
PRO: global warming safety
CON: None

8. Geographical Globalization - refers to the idea that the world is no longer

seen as groups of distinct nations as much as it once was.
Key Features: a borderless world
Example: no imposition of power
PRO: a peaceful and a fulfilling world
CON: Vulnerability
Remember:

The 8 types of globalization are not as distinct as you might first think. One type of
globalization may have similar characteristics of another and they may influence one
another. You could think of these ‘types’ as a venn diagram where features overlap
rather than distinct silos. Getting your head around this can prevent a lot of confusion
around which aspect of globalization fits within which definition – it may fit within
multiple.

Advantages of Globalization
1. Globalization helps the world to focus on progress.
Having presence of a global need, any economy may fulfill these needs by
participating and joining the global market in production of goods, services or
programs for development.
2. It would stabilize global currencies to create an equal playing field.
Meeting the needs of a country equally, may help create more equal playing/
earning field for everyone.
 1 Kuwait dinar= U.S. $3.30 (both from
1 Bahraini dinar = U.S. $ 2.65 middle-east)
3. We can use our resources as one planet instead of one nation with
globalization.
For instance:
It costs $30 Billion per year to solve the world problem for hunger.
It is only 5% of what the United States currently spends on defense.
4. Globalization could reduce human trafficking and labor exploitation.
Work opportunities across borders that are open for Filipino workers will
decrease the rate of unemployment and increase their standard of living.
5. It could prevent governments from creating repressive legislation.
Equality is peacefully served through globalization. Many countries are now
given their equal rights to participate and enjoy the global world.
6. We can communicate better because of globalization.
Because of the Internet, it is easier to communicate with other people all over
the world today. This has also created new business opportunities even with a
time-zone that is 12 hours away.
7. Globalization creates more opportunities for trade.
If the global world will offer fewer borders or obstacles for trade such as lesser
taxes and tariffs, then everyone will have more access to unique goods and
services that are available in various regions of the globe. It could make some
items to be potentially cheaper also.

Disadvantages of Globalization
1. Globalization can leave some cultures behind.
It is not the wealthiest countries who are solely affected by this problematic
issue. The developing world may get left behind if they isolate instead of
integrate as the world moves forward.
2. It could create adverse impacts for the global environment.
The countries that have gone through the industrial revolution have created
the issues with greenhouse gas emissions that 90+% of scientists around the
world believe are a significant contributor to the processes of global warming.
3. Each culture could be asked to change how they define themselves.
National borders are not the only boundaries that humans set for themselves
as they go about the business of daily life. We also set limits on our cultural
identity, ethnicity and family environment. But, with the presence of
globalization, the mark of being a “Filipino” may already have been lost or
have been just the same with the neighboring countries and culture.
4. Globalization would temporarily reduce high-paying jobs.
As there would be a surge of employment in the places of the world where the
cost of living is lower, it will be a threat to employees with high paid income
versus low-income applicants. Since some corporations may choose to hire
low-income applicants (but with the same skills) for their workforce as part of
saving.
5. There is also a chance that globalization would only help the wealthy.
The people who have the power today are the ones who will drive the
emphasis for globalization to become a reality. They are the ones who will
create policies, legislation, and frameworks that will bring the world closer
together.
 6. It could create health issues for human populations.
Imagine a world anyone can travel at any time to whatever location they
choose. The lack of borders would certainly promote a level of freedom in our
world that we have never seen before in history. It could also create problems
with disease transfers that could impact the entire society.

REFERENCES:

Aldama, P.K. (2018). The Contemporary World. Rex Bookstore.

Anderson, B. (2010). Cacique Democracy in the Philippines: Origins and Dreams.
Routledge.
Barroso, P. (2021). Contemporary World -Society: From the Globalization of Communication
to the Communicational Globalization of the World. Escola Superior de Educação de
Viseu
Case, W. (2002). Politics in Southeast Asia: Democracy or Less. Psychology Press.
Claudio, L. & Abinales, P. (2018). The Contemporary World. C&E Publishing, Inc.
Cuterela, S. (2012). Globalization: Definition, Processes and Concepts. National Defense
University.
Clausen, A. (2010). Economic Globalization and Regional Disparities in the Philippines.
Singapore Journal of Tropical Geography.
Falkner, R. (2011). International Political Economy. The London School of Economics and
Political Science.
Globalization | National Geographic Society. (n.d.). National Geographic.
https://education.nationalgeographic.org/resource/globalization/
Hefti, A.M. (N.D.). The Philippines: Globalization and Migration. N.P.
Lim, A.A. (N.D.). Globalization: Its Impact on the Philippine Environment. Central Philippine
University.
Orbeta, A.C. (2002). Globalization and Employment: The Impact of Trade on Employment
Level and Structure in the Philippines. Philippine Institute for Development Studies.
Patalinghug, E. (2003). Globalization and State Capacity: The Philippines. Philippine Institute
for Development Studies
Sheffield, J., Korotayev, A. & Grinin, L. (2013). Globalization: Yesterday, Today and
Tomorrow. Litchfield Park, AZ, USA.
What Is Globalization? (2022, June 29). Investopedia.
https://www.investopedia.com/terms/g/globalization.asp