Globalization and International Relations Quiz

Introduction

• Course title: The Contemporary World
• Course unit: I
• Authors: Lisandro E. Claudio and Patricio N. Abinales
• Year: 2018

Lesson I: Globalization

• Globalization, as described by Manfred Steger, is the expansion and intensification of social relations and consciousness across world-time and world-space.
• It's viewed as an "economic process".
• It involves the integration of national markets into a wider global market, marked by increased free trade.
• Expansion refers to the creation of new social networks and the multiplication of existing connections that transcend traditional political, economic, cultural, and geographical boundaries.
• Intensification refers to the expansion, stretching, and acceleration of networks.
• Globalization relates to how people perceive time and space.
• Globalization isn't solely a material process; it also encompasses the subjective plane of human consciousness.

Globalization and Globalism

• Globalization represents various interconnected processes, while globalism is a widespread belief that global economic integration is beneficial for all, spreading freedom and democracy.

Global Experiences

• Globalization is a multifaceted phenomenon occurring at various levels.
• Its effects are uneven, impacting different populations differently.

Multiple Globalization

• Arjun Appadurai's concept of scapes describes different aspects of globalization, including ethnoscapes (global movement of people), mediascapes (flow of culture), technoscapes (circulation of mechanical goods and software), financescapes (global circulation of money), and ideoscapes (realm of political ideas).

Lesson II: The Globalization of World Economics

• The IMF views economic globalization as a historical process of human innovation and technological advancements.
• It's characterized by the increasing integration of economies across the globe through the movement of goods, services, and capital across borders.
• These changes are fueled by people, organizations, institutions, and technologies.
• High-frequency trading, facilitated by advanced supercomputers, enables rapid stock transactions across different cities.

International Trading Systems

• Silk Road (130 BCE-1453 CE): A significant international trade route connecting China, the Middle East, and Europe.
• Galleon Trade (1571): Connected Manila (Philippines) and Acapulco (Mexico), establishing a direct link between the Americas and Asia.
• Mercantilism (16th-18th century): European countries competed to boost their economies through increased sales of goods.
• Open Trade System (1867): Established a common basis for currency prices and a fixed exchange rate system, tied to the value of gold.

The Great Depression (1920s-1930s)

• The Great Depression was the worst and most prolonged recession in the Western world.
• Economic arguments suggest it was primarily caused by the gold standard, limiting the money supply and consumer demand.
• Economic historians argue that the US recovery began when it abandoned the gold standard, enabling increased government spending.

The Gold Standard (1970s)

• Until the 1970s, gold standards, in various forms, were used as a global form of currency underpinning trade.

Fiat Currencies (Present)

• Modern currencies are not backed by precious metals and their values depend on relative costs compared to different countries and their goods and services.

Fiat Currency

• Governments can use monetary policies (interest rate, investment, and trade), and fiscal policies (taxes) to increase or decrease the supply of money to manage the economy.

GNP and GDP

• GDP is the value of a nation's finished domestic goods and services during a specific time.
• GNP is the value of a country's domestically produced plus internationally owned goods and services.

The Bretton Woods System

• A network of global financial institutions was created to promote economic interdependence and prosperity.
• John Maynard Keynes believed that economic crises occur when money is not being spent, not when there is a shortage.
• Two key institutions included the International Bank for Reconstruction and Development (IBRD, or World Bank), funding post-war reconstruction, and the International Monetary Fund (IMF), acting as a global lender of last resort to stabilize countries during financial struggles.

General Agreement on Tariffs and Trade (GATT) (1947)

• GATT aimed to reduce tariffs and obstacles to free trade among countries.
• Countries committed to more global economic integration.

Neoliberalism and its Discontents

• Neoliberalism is a new framework in economic thinking that became the strategy for the United States, World Bank, IMF, and eventually WTO.

World Trade Organization (WTO) (1995)

• A successor to GATT, continuing its tariff reduction policies.
• Policies are collectively known as the Washington Consensus.

Washington Consensus

• Advocation of minimal government spending and privatization of government-controlled services.
• Aiming to promote free market practices for best results.
• Pressure on developing countries for tariff reductions and economic liberalization.
• Shock Therapy - an approach that accepts short-term pain for long-term economic benefit.

The Global Financial Crisis and the Challenge to Neoliberalism

• Mortgage-backed securities (MBSs) were created to mitigate associated lending risks.
• A single MBS encompassed multiple mortgages, assuming a steady repayment rate.

Economic Globalization Today

• Globalization remains uneven, benefitting some countries, corporations, and individuals more significantly than others.
• Developed nations frequently employ protectionist policies to shield domestic industries from foreign competition.
• Imbalances in trade often characterize relationships between developed and developing countries.

Surplus/ Deficit

• Data including China's large trade surplus and the Philippines' trade deficit is notable.

Race to the Bottom

• Countries sometimes lower labor standards or relax environmental controls to lure foreign investment, often at the expense of worker rights and environmental protection.

International Economic Integration

• International economic integration is central to globalization, yet, it's essential to recognize that globalization, in itself, is not uniformly beneficial.

International Relations, Internationalization, and the Attributes of Today's Global System

• International relations encompass interactions between individual states, internal politics, and diplomatic engagements.
• Internationalization refers to the growing interconnectedness and interdependence between states.
• The attributes of today's global system include independent states, diplomacy for interaction, international organizations (like the United Nations), and international organizations' independent role.

Nation, State, and Country

• The terms nation, state, and country aren't interchangeable.
• A nation refers to people sharing a common identity (culture, religion, language), while a state is a political entity with a defined territory, governing structure, and sovereignty.

The Interstate System

• The Treaty of Westphalia (1648) established the basis for the modern interstate system, establishing the concept of state sovereignty.
• Napoleon's attempt to gain greater power across Europe led to challenges against the Treaty system.

The Napoleonic Wars (1803-1815)

• Napoleon's rise and the establishment of an alliance across Europe aimed at preserving pre-Revolution hierarchies in response to the French Revolution.

Internationalism and the Thinkers

• Internationalism advocates for enhanced cooperation among sovereign states.
• Key thinkers like Immanuel Kant, Jeremy Bentham, Giuseppe Mazzini, Woodrow Wilson, and Karl Marx contributed diverse perspectives on this concept.
• Key ideas include global governance, self-determination, and universal principles of fairness (utilitarianism).

Socialist Internationalism

• A union of European socialist and labor parties formed in Paris (1889)
• Aimed for international cooperation for better equality.

The Russian Revolution (1917)

• Marked the overthrow of Tsar Nicholas II, replaced by a communist government under Vladimir Lenin.

Communist International (Comintern)

• A global organization established by Vladimir Lenin to promote communist revolutions worldwide.

Challenges to the United Nations

• The UN faces challenges in maintaining security and ensuring cooperation among member states.

International Organizations: UN, IBRD/World Bank, IMF, WTO, and NGOs

• A range of international organizations play important roles in global governance.

United Nations (UN)

• The UN is the most prominent of international bodies, a prominent, but not globally powerful, institution
• Five principal organs are recognized: General Assembly, Security Council, Economic and Social Council, International Court of Justice, and the Secretariat.

General Assembly (GA)

• The most important policy making and representative organ
• A Filipino Diplomat was elected President of the GA in the early years of the UN (1949-1950)

Security Council, Economic and Social Council, International Court of Justice, and Secretariat

• Essential organs of the UN with specific functions in maintaining international peace and security, coordinating economic policies, resolving legal disputes, and providing administrative support.

Regionalism and Regionalization

• Regionalism signifies the concentration of economic activities within a geographical region.
• Regionalization is driven by a combination of political and economic factors.

Countries

• Countries respond to globalization in different economic and political ways.
• Large countries use their resources to influence global interactions.
• Smaller countries focus on their specific strengths within the global arena.
• Regional associations or unions can be created to achieve political or economic goals.

Reasons for Regional Associations

• Countries form regional associations for various reasons, including military defense, resource pooling, protection of independence, and responses to economic crises.

Test your knowledge on globalization concepts as introduced by Manfred Steger and key aspects of international relations, including the role of the UN. This quiz covers crucial definitions, relations between time and space, and the functions of various UN organs. Perfect for students of global studies or international relations.