Instructor: Jocel V.

Salvador, LPT
Learning Outcomes:
• Define economic, political and cultural globalization.
• Identify the actors that facilitate economic, political and cultural
globalization.
• Expound the benefits and advantages of various kinds of
globalization.
Globalization
THE WORD USED TO DESCRIBE THE GROWING
INTERDEPENDENCE OF THE WORLD'S ECONOMIES,
CULTURE AND POPULATION, BROUGHT ABOUT BY
CROSS- BORDER TRADE IN GOODS AND SERVICES,
TECHNOLOGY, AND FLOWS OF INVESTMENT, PEOPLE,
AND INFORMATION.
Economic Globalization
• 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 international capital and
wide and rapid spread of technologies.
• THE SPREAD OF TRADE TRANSPORTATION, AND COMMUNICATION
SYSTEMS ON A GLOBAL SCALE IN THE INTEREST OF PROMOTING
INTERNATIONAL COMMERCE.
International Trading Systems
Trading systems are not relatively a new concept. The oldest
international trade route was the Silk Road- a network of pathways in
the ancient world that spanned from China to what is now known as
Middle East and to Europe. (Claudio and Abinales, 2018 p. 14). It was
named as “Silk Road” because one of the highly- prized product traded
in this route was silk. The Silk Road was used regularly from 130 BCE
until 1453 BCE when the Ottoman Empire closed it. While the Silk
Road was “international” as it encompassed numerous countries, it
was not “global” as it did not include ocean routes towards other
countries and continents. (Ibid).
Galleon Trade
• The Galleon Trade was part of the mercantilism age. It was based on
the notion that a nation’s wealth and power were served by
increasing exports- and so increasing trade. This economic system
spanned from the 16th to 18th century where countries, primarily in
Europe, competed with one another to sell more goods as a means to
boost their country’s income (called monetary reserves later on). To
defend their products from competitors who sold good more cheaply,
these regimes (mainly monarchies) imposed high tariffs, forbade
colonies to trade with other nations, restricted trade routes and
subsidized its exports. (Ibid)
Actors that Facilitate Economic Globalization
1. International Economic Organization

• World Bank- previously responsible for funding reconstruction

projects after World War II.

• International Monetary Fund- was the lender of last resort for

countries to prevent it from collapsing. If economic growth in a
country slowed down because there was not enough money to
restart the economy, the IMF would step in.
Actors that Facilitate Economic Globalization
2. Multinational Companies
Main carriers of economic globalization. These includes various
companies like Dutch and British India and such.

3. Central Banks
Financial institution that is responsible for overseeing the monetary
system and policy of a nation or group of nations, regulating its money
supply, and setting interest rates.

4. Global Civil Society

Organizations and individuals who are negatively affected by
globalization, that protest and seek alternative to develop their own.
Modern World System
TWO TYPES OF ECONOMIES
1. PROTECTIONISM
PROTECTING ONE’S ECONOMY FROM FOREIGN COMPETITION BY
CREATING TRADE BARRIERS (TARIFF)

2. TRADE LIBERALIZATION
REDUCING TRADE BARRIERS TO MAKE INTERNATIONAL TRADE EASIER
BETWEEN COUNTRIES.
VARIOUS WAYS TO MAKE TRADE
EASIER
1. FREE- TRADE
• TRADING OF GOODS AND SERVICES BETWEEN TWO OR MORE
COUNTRIES WITHOUT TARIFFS OR TAXES
2. TRADE BLOC
• AGREEMENT MADE BETWEEN GOVERNMENT TO REDUCE OR
ELIMINATE TRADE BARRIERS.
3. OUTSOURCING
• MANUFACTURING JOBS TRANSFER FROM DEVELOPED NATIONS TO
DEVELOPING NATION REDUCE THE COST OF PRODUCTS.
THE PURPOSE OF ECONOMIC GLOBALIZATION
• increase the interconnectedness and integration of economies around the
world, with the goal of promoting economic growth and development,
improving living standards, and creating more opportunities for trade,
investment, and innovation
• increase international trade and improve the status of various
underdeveloped nations by giving a chance to showcase their goods and
services in the global market. It even increases the cultural relations
among nations. Basically, economic globalization is to increase the status
of a country.
CULTURAL GLOBALIZATION
Ways of Cultural Change
1. Enculturation refers to the process of learning and internalizing
cultural norms, values, and beliefs from the society one was born
into.
2. Acculturation refers to the process of adopting the practices and
values of a dominant culture while maintaining some aspects of
one's original culture.
3. Assimilation is when one completely gives up own culture and
follows the new one.
4. Amalgamation is when two or more cultures blending together to
create a new, unique culture.
 POLITICAL
GLOBALIZATION
Political Globalization
• Political globalization refers to the intensification and
expansion of political interrelations across the globe.

• refers to the absence of the absolute sovereignty of a

state’s political borders over a certain area as well as
increased interaction between the systems of
government and increased external intervention and
interaction on the basis of democracy, non-
governmental organizations, human rights, and
freedoms.
Effects of Globalization on Governments
• Montreal Protocol on Substance that Deplete the Ozone Layer.
• Aims to phase out the production of numerous substance responsible for
Ozone layer depletion, signed in August 26, 1987 with 46 country signatories.
• According to NASA, a definitive evidence show that the ozone levels will
return to 1980 levels by 2032. (Watts, 2018)
• Local government attract foreign investors that can create job
opportunities to people. However, it entails converting tracks of
agricultural land into unindustrialized one. Farmers will be displaced
and agricultural production with certain area will be affected.
Some of the International Organizations
• United Nations
• ASEAN
• EU
• NATO
• OECD
• WTO
• WHO
UNITED NATIONS
• The UN is an International Government Organization
designed to make the enforcement of international law,
security, human rights, economic development and social progress
easier for countries around the world.
• 193 members which includes the Philippines
• Carlos P. Romulo is the first Asian to hold a position of president of
the Security Council.
• Leader- Antonio Guterres
• October 24, 1945
• New York
5 Branches
1. The General Assembly
2. The UN Security Council- US, UK, FRANCE, RUSSIA, CHINA
3. The International Court of Justice
4. The Economic and Social Council
5. Trusteeship Council
ASEAN
• The ASEAN Declaration states that the aims and purposes of the
Association are: (1) to accelerate economic growth, social progress
and cultural development in the region and (2) to promote regional
peace and stability through abiding respect for justice and the rule of
law in the relationship among countries.
• 11 countries including the Philippines
• Bangkok Declaration of 1967
• Dr. Kao Kim Hourn
• Jakarta, Indonesia
European Union
• The aims of the European
Union within its borders
are: promote peace, its
values and the well-being of
its citizens. offer freedom,
security and justice without
internal borders, while also
taking appropriate measures
at its external borders to
regulate asylum and
immigration and prevent
and combat crime.
European Union
• 27 member states that are located primarily in Europe.
• Ursula von der Leyen
• Brussels
Ukraine
Pros of Political Globalization
• Access to international aid and financial support.
• It contributes to world peace. It reduces risks of invasions, more
checks on big powers and limitation on nationalism.
• International organizations are often committed to spread values like
freedom and to fight abuses within counties.
• Smaller countries can work together and gain more influence
internationally.
• Governments can learn from each other.
Cons of Political Globalization
• State sovereignty is reduced.
• The functioning of international and supranational organizations is
often not “democratic” in terms of representation and accountability.
• Big countries can shape decisions in supranational organizations.
• Sometimes countries can veto decisions and slow down decision
making processes.
• Coordination is difficult and expensive.
CHAPTER QUIZ!