GLOBALIZATION

Chapter 5
Globalization

◦ Interdependence of the global economy wherein

people have more liberty to trade and enjoy basic
needs and wants under the comfort of free trade.
Antiglobalization

◦ The political left, argues that the people are being deceived
by making it appear that globalization benefits everyone.
Stages of Globalization

Globalization 1.0 Globalization 2.0

◦ Explorers came to know the existence of the ◦ State-owned companies such as British East
different continents starting with the Americas India Company founded in 1600 are the
and later on, Asia. period’s version of multinational corporations.
◦ The exploration of the New World as started by
◦ Global or transnational integration.
Christopher excited the monarchs of Europe and
encouraged them to sponsor navigation, which
lead to the discovery of the treasures of the soon–
to-be colonies of the Western Empire.
 Globalization 3.0
◦ The driving force of change was the magnification of everything that was part of the globalization 2.0 software, as well as the
development of the global fiber-optic network that enables people to collaborate and compete globally.
◦ The world economy will no longer be driven by the government of different countries but by individuals who will contribute
to “shrink” the world through the use of modern technology.
In Globalization 1.0, which began around 1492, the world went from size large to
size medium. In Globalization 2.0, the era that introduced us to multinational
companies, it went from size medium to size small. And then around 2000 came
Globalization 3.0, on which the world went from being small to tiny.

-Thomas Friedman, The World is Flat

Dimensions of Globalization
◦ Economic – Multinational corporations, consumers, and workers anywhere in the world interact with each other and enter
economic agreements.
◦ Ethical – Globalization pertains to the free movement of capital, trade, goods, and services.
◦ Cultural - Homogeneity and multiculturism. Interconnectedness of different people representing varied cultures encourages
understanding and respect. No matter how “extreme” one culture may be.
◦ Political – In the Philippines, this is mostly referred to by leftists as the imperialists way of controlling developing countries
through the influence of the World Bank and International Monetary Fund in the economic policies of countries.
Role of International Organizations
◦ WTO – World Trade Organization
◦ ILO – International Labor Organization
◦ IMF – International Monetary Fund
◦ WBG – World Bank Group
◦ IBRD – International Bank for Reconstruction and Development
Interpret the illustration based
on Globalization
 Activity
Write an Essay about “How Globalization
works” in terms of the following:

◦ Goods
◦ Employment
◦ Income

Sample: https://www.onlineassignmentshelp.com/blog/what-is-globalization/