TCW UNIT 1 AND 2 REVIEWER
environment, which increases processes
GLOBALIZATION
 A process (set of processes) that embodies
a transformation in the spatial organization
of relations and transactions, generating
transcontinental or interregional flows and
networks of activity, interaction, and
power.
 According to Al-Rodhan (2006),
Globalization is not a single concept that
can be defined and encompassed within a
set time frame, nor is it a process that can
be defined clearly with a beginning and an
end.
 Globalization is the process of world
shrinkage, distances getting shorter, and
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. - Larsson (2001)
However, others believe that Globalization
brought regression, colonialism, and
destabilization.
WHAT IS THE DIFFERENCE BETWEEN BROAD AND
INCLUSIVE AND NARROW AND EXCLUSIVE?
Defining Globalization as Broad and Inclusive
 Globalization means the onset of the
borderless world. This definition proposes
that barriers are no longer considered a
hindrance because there are so many ways
by which we can access information and
goods from other countries as if we are
living in one place without any borders.
(Ohmae, 1992).
Defining Globalization as Narrow and
Exclusive
 According to Robert Cox (1999),
Globalization is characterized by the
internationalizing of production, the new
international division of labor, migration
from south and north, and a competitive
such manufacturing of goods and
commodities
Ray Kiely and Phil Marfleet (1998)
Globalization is a situation wherein societies,
cultures, politics, and economics have, in some
sense, come closer together.
Jan Aart Scholte (1999)
Globalization refers to processes whereby social
relations acquire relatively distance less and
borderless qualities so that human lives are
increasingly played out in the world as a single
place.
Langhone (2001)
Explains that Globalization is the latest stage in a
long accumulation of technological advance, which
has given human beings the ability to conduct their
affairs across the world without reference to
nationality, government authority, time of day or
physical environment.
Metaphors of globalization
 Solid
It refers to the barriers that may prevent free
movement and it can be natural or man-made. It
may also refer to people, things, information, and
places “harden “over time and therefore have
limited mobility.
 Liquidity
It refers to increasing ease of movement of people,
things, information, and places in the global age.
 Flows
It refers to the movement of people, things, ideas,
and culture across the globe due to the advances in
technology, economic and political integration, and
establishment of global policies that lessens and
eliminates the existing borders.
THE FIVE Perspectives ON THE ORIGIN OF
GLOBALIZATION
1. Hardwired: proposes that globalization
originated from the basic motivation of
human beings to seek a better life (Chanda,
2007). History shows that our ancestors
travel from Africa to other places in search
of food and security.
2. Cycles: it explains that there is no single
point of origin in globalization but it is a
long-term cyclical process wherein the
current global age today is only a
modification of the global age in the past.
3. Epochs: if cycles explain a continuous long-
term cyclical process, the epochs explain
that there are waves of globalization that
took place in the past and each of them has
its own origin.
 The 4th to the 7th centuries which
witnessed the globalizations of
region (e.g. Christianity, Islam).
 The late 15th -century highlighted by
European colonial conquests.
 The late 18th and early 19th
centuries during which various
 Intra - European wars led to
globalization.
 The mid-nineteenth century to
1918; the heyday of European
imperialism.
 The post - World War II period.
 The post - Cold War period.
4. Events: this perspective is different from
cycles and epochs as it specifies the event
that is somehow responsible for the origin
of globalization.
 The spread of Christianity after the
fall of Roman Empire.
 The Other important Voyages such
as the discovery of America by
Christopher’s Columbus in 1942,
Vasco Da Gama rounding the Cape
of Good Hope in 1498, and the
circumnavigation of the globe
completed in 1522 by one of
Ferdinand Magellan’ s ships
(Rosenthal, 2007)
 European Colonialism
 The founding of the modern
Internet-based on Arpanet (which
was created in 1969).
5. Broader, more recent Changes: this
perspective views that the origin of
globalization has taken place during the
recent changes that happened in the 2nd
half of the 20th century.
 The emergence of the United States
as the global power in the years
following WW II
 The emergence of multinational
corporations (MNCs).
 The demise of the Soviet Union and
the end of the Cold War.
Criticism on the Existing Evidences of
Globalization
GLOBALIZATION AS GLOBALONEY
 Rejectionist: People who are against the
utility of globalization as an incorrect
analytical concept.
 Sceptics: it emphasizes the limited nature of
the globalizing process and that the world is
not as integrated as it is.
 Modifiers: It disputes the novelty of the
process, implying that the label
‘globalization’ has often been applied in a
historically imprecise manner
THEORIES OF GLOBALIZATION
World System Theory: this theory believes that
capitalism has spread around the world for the
last five centuries from 1500 to the present.
 Core: POWERFUL, WEALTHY, And
INDUSTRIALIZED COUNTRIES that
usually control and benefit from the
global market.

 Periphery: COUNTRIES THAT ARE
DEPENDENT ON CORE COUNTRIES for
capital and have an underdeveloped
industry. They generally provide labor
and materials to core countries.
 Semi-Periphery: COUNTRIES THAT
SHARE CHARACTERISTICS OF BOTH
CORE AND PERIPHERY COUNTRIES.
However, they also exploit peripheral
countries just as core exploits the
natural resources of peripheral
countries.
World Polity Theory: It was developed as an
analytical frame for interpreting global relations,
structures, and practices. Invoking an image of the
world as a system of interrelated interdependent
units.
World Culture Theory: It is a label for a particular
interpretation of globalization that focuses on the
way in which participants in the process become
conscious of and give meaning to living in the world
as a single place.
IMPACT OF GLOBALIZATION
1. Homogeneity - It means an increasing
sameness as information and ideas flow
across boundaries.
A. Cultural Imperialism: it is the growing
international influence of a particular
culture
 Cultural: the role played by the
American culture or the
Americanization, the spread of
Christianity
 Economic: Spread of the market
economy throughout the world
 Political: Worldwide spread of
models of the nation-state or the
single model of governance around
the world. Often times, this is called
as Mcworld.
B. Media Imperialism: it is a subcategory
under the broader umbrella of cultural
imperialism. From the traditional point
of view, the Western media and its
technologies dominate countries
belonging to less developed countries.
C. McDonaldization: it is the process
wherein the principle is one of the
dominant fast-food restaurants in the
United States of America is employed
and used in almost different societies
across the world. Its principle usually
revolves around EFFICIENCY,
PREDICTABILITY and TECHNOLOGICAL
Advancement in production and
marketing.
D. Grobalization: It is the desires and
ambitions of different entities such as
organizations, corporations, and other
nations to influence others and impose
their power throughout the world.
2. Heterogeneity It is associated with the
creation of local inputs leading to a variety
of cultural hybrids. In other words, the
predominance of locals would make a
difference on a global scale.
 Globalization: it is the process of
interaction and integration among
people, companies, and governments of
different nations, it is a process driven
by international trade and invest and
added by the spread of information and
technology (Bernardo Jr. 2016)
Dynamics of Global and Local Culture
Three Perspectives In Global Cultural Flow
 1. Cultural Differentialism: It states that
cultural differences are immutable and
there is a likelihood that other culture
which is significantly different from one
culture may clash if they get to interact.
2. Cultural Hybridization: It refers to a politics
of integration without the need to give up
cultural identity” (Pieterse, 2003, p. 56).
3. Cultural Convergence: it supports the idea
of global cultural homogeneity. It is the
process of increasing sameness by adopting
global culture, ideas, and practices.
UNIT II. GLOBAL ECONOMY
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 (Shangquan, 2000).
The given example above was only a part of
economic globalization as the scope of economic
globalization is not only limited in goods as it also
involves, capital, labor, migration and anything that
is related to goods and services.
 Goods and Services - Goods are tangible
objects that satisfy people's wants. Services
are actions, such as haircuts and car repair,
which also satisfy people's wants.
 Capital - It is the total assets a company
needs to stay solvent. A company’s capital
assets are significant because organizations
use capital assets to create wealth
 Communication and technology - Advances
in Communication and technology has
allowed the integration of economies
worldwide through increases in trade,
investment flows, and technology transfer.
 Market Exchange - it is an economic system
in which goods and services are produced,
distributed, and exchanged by the forces of
price, supply, and demand.
ECONOMIES ASSOCIATED WITH ECONOMIC
GLOBALIZATION
1. PROTECTIONISM
Protectionism refers to government policies that
restrict international trade by imposing tariffs,
quotas, product standards, and subsidies.
Reason for the implementation of strict policies
 Its goal is to improve the domestic economy
by forcing its citizen either direct or indirect
to purchase local products instead of
imported products.
 For safety and quality concerns of both
imported and exported products
PRIMARY POLICY TOOLS
Tariffs: These are charges to importing
countries in the form of either money or goods
that will serve as a payment for allowing its
international products to be sold in the local
market. It is usually documented in the custom
of a particular government. These Import tariffs
are the reasons for the increase of international
product prices. It also raises revenues of the
government and protects domestic products
from foreign competition due to the price hike
of imported goods.
Import Quotas: This is a kind of tariffs that
lessen the number of products that can be
imported for a certain period of time. The
implementation of import quotas helps the
government protects its domestic businesses by
allowing its local businesses to cover the
shortfall of certain products. Thus, it helps the
local market to increase its production that will
lead to the increase of numbers of goods that
can be sold in the market
Product Standards: This is a kind of barrier that
imposes strict standards in imported products
which may make it difficult for different
importing countries to bring their goods in the
local market. Thus, the restriction of a
 particular product can lead to a higher volume
of product production domestically.
Government Subsidies: This is a strategy of the
national government by which incentives and
cash payments are distributed to domestic
businesses to encourage them to expand their
market globally by increasing international
export. Thus, the government may strengthen
its local market.
Advantages and Disadvantages of
protectionism
 Advantages
a. Taxes imposed on exporter countries may
increase government revenues.
b. Strict and rigid policies may protect domestic
product
c. Encourages the exportation of national
products which may expand their products
globally.
 Disadvantages
a. Protectionism policies often time support
other countries to make their own protection
policy as well. Hence, it inhibits the exportation
of each other products that may result in less
profit.
2. TRADE LIBERALIZATION
It is the process of removing or reducing the
barriers or restrictions in the exchange for goods
between and among nations. With the reduction of
barriers such as tariffs and import quotas in the
process of exchanging goods and services, it
significantly reduces the cost of goods sold by the
importing countries Thereby, allowing an increase
of exchange between and among countries. Thus,
the proponents of trade liberalization believe that
reduction of barriers ultimately lessen consumer
costs while increasing efficiency, and fostering the
growth of the economy.
Advantages of Trade Liberalization
A. As it promotes free trade between and among
countries, the cost of importing nations in bringing
their goods to other countries is most likely to be
lessened. This event may likely result in lower
consumer prices due to lower fees of importing
nation and an increase in competition among local
and international businesses.
B. Promotes efficient use and allocation of world
resources
C. Increases Capital Flow
D. Allows developing countries access to the
heavily protected markets of the developed world
thus helping promote development
E. whether to manufacture goods or provide
services. This scenario is related to the concept of
comparative advantage wherein one specializes in
which they can gain the most profitable.
F. It can lead to a higher efficiency of producers.
G. It can attract foreign investment
 Disadvantages of Trade Liberation
A. It can affect local businesses and their domestic
product
B. The possible risk may be experienced if the
products or raw materials coming from other
countries have a lower environmental standard.
C. Developing nations may be threatened to back
out in the global market as they are forced to
compete in the same market with other nations
possessing stronger economies.
D. Countries with lower educational standards may
struggle to adapt to a changing economic
environment.
E. It can exploit the natural resources due to the
competition and shallow environmental policies in
a country.
F. It can lead to structured unemployment whereby
countries and companies who cannot compete
with others may lose gain and have less profit that
may result in layoff.
Main Actors of Economic Globalization
1. Consumer
2. Laborers
3. Regulatory institutions
4. State
5. Multinational companies
ECONOMIC INTEGRATION
El-Agraa (1998) defines the term economic
integration as the discriminatory removal of all
trade impediments between at least two
participating countries and the establishment of
certain elements of coordination and cooperation
between them. In other words, Economic
integration is an arrangement among nations that
typically includes the reduction or elimination of
trade barriers and the coordination of monetary
and fiscal policies. Economic integration aims to
reduce costs for both consumers and producers
and to increase trade between the countries
involved in the agreement.
 Level of Economic Integration
country has common external tariffs among
member countries, implying that the same tariffs
are applied to third countries; a common trade
regime is achieved.
Common market: It is an integration by which
member countries are able to move their capital
and services within their organization. This leads to
the expansion of scale economies and the
maximization of comparative advantages.
However, each national market has its own
regulations such as product standards.
Political union: It is a form of integration wherein
member countries abide by the rules presented by
a common government in which the member
country’s sovereignty is reduced significantly. This
integration can be found within the nation-state,
such as federations where there are a central
government and regions (provinces, states, etc.)
having a level of autonomy.

Preferential trading area: Allow member countries

to have access to some of their products. Tariffs are
not eliminated but it is lessened as compared to
non-participating countries.
Free trade: It aimed to reduce the tariff
significantly between or among partnered
countries. In regards to external countries which
are not part of their agreement, each of them has
its own decision making in regards to the tariff they
will impose on those external countries. The
general goal of free trade agreements is to develop
economies of scale and comparative advantages,
which promotes economic efficiency.
Custom union: It almost the same with free trade
agreement as it aims to reduce and abolish the
tariff but it differs from free trade as the member