Understanding Globalization

Globalization

• Integrates economies and societies through the unrestricted flow of goods, services, capital, people, and ideas across borders
• Heightens interdependence and integration among diverse economies, markets, societies, and cultures
• Represents the increasing integration of economies and societies globally, notably via trade and financial exchanges
• Encompasses the exchange of knowledge, students, and educational practices across international boundaries
• Facilitates the sharing of advanced engineering technologies, designs, and skills among countries
• Supports the expansion of companies and trade into international markets

Dimensions of Globalization

• Economy involves the broad international movement of goods, capital, services, technology, and information
• Political Globalization leads to the rise of global organizations (e.g., United Nations, World Bank, IMF) influencing global governance
• Cultural Globalization involves the exchange of cultural elements like language, food, fashion, and entertainment
• Homogeneity standardizes cultures, values, economies, and lifestyles across different regions
• Heterogeneity leads to the creation of diverse cultural practices, economies, and political groups due to cross-societal interactions
• Globalization and Technology sees rapid advancements in communication and information technology, including the internet, social media, and AI

Facts About Globalization

• Economy sees growing interdependence via unrestricted trade
• Politics sees events in one country affecting others
• Culture sees the exchange of ideas, art, music, and food
• Technology sees the flow of technology across national borders

Underlying Philosophies of Globalization

• Capitalism is a system involving private property and profit-driven economies
• It involves competition, free markets determining prices/wages, and minimal government intervention
• Neo-Liberalism is a policy that cuts government programs, reduces state control, and promotes global free trade
• It opposes government regulation and favors privatization
• Technological Determinism involves changes in technology transforming economy, politics, culture, and social structures
• Once created, technology advances independent of human control, inevitably leading to better societies
• Imperialism means direct control over foreign territories through military conquest/settlement
• One country dominating others through trade, investment, and economic influence
• Cultural Pluralism means different groups living peacefully together with the right to participate in social life without discrimination
• It involves accepting different beliefs/practices without imposing a dominant culture
• Utilitarianism is where the best action maximizes well-being for the greatest number of people
• The right action produces the most happiness/least pain, with every person's happiness being equally important

Effects of Globalization

• Cultural Exchange
• Economic Integration
• Political Cooperation

Structures of Globalization

• It is the system of interconnected institutions, agreements, and networks influencing economic, political, and cultural exchanges

Economic Globalization

• Increasing interconnection/interdependence of economies via trade, investment, technology, and movement of goods, services, and labor

World System Theory

• It highlights economic inequalities between nations and how wealth/power are distributed globally

Modern World System

• Core Countries are highly developed, dominating global trade and finance
• Semi-Periphery Countries are emerging economies, acting as intermediaries
• Periphery Countries are less developed, supplying raw materials and labor with limited industrialization

Actors That Facilitate Economic Globalization

• Multi-National Corporations (MNCs) are large companies operating across multiple countries
• MNCs influence global trade and investment
• International Financial Institutions include organizations like the IMF, World Bank, and WTO, regulating trade policies and providing financial aid
• National governments set trade policies, negotiate agreements, regulate investments, and establish frameworks that facilitate globalization
• Technology & Digital Platforms such as e-commerce (Amazon, Alibaba), digital banking, AI, and automation accelerate global transactions
• Consumers create the demand for international products/services, driving companies to expand globally
• Labor & Migrant Workers contribute to economic activities in both home and host countries through cross-border movement

Global Market Integration History

• Early Trade and Regional Networks (Before 1500s)
• The Silk Road & Indian Ocean Trade (1000s–1400s)
• Age of Exploration and Mercantilism (1500s–1800s)
• Industrial Revolution and the Expansion of Global Markets (1800s–1914)
• World War I (1914-1918), Great Depression (1929), & World War II (1939-1945)
• World Trade Organization (WTO) 1995 & General Agreement on Tariffs and Trade (GATT, 1947) existed by the year 2000

Financial Institutions

• It an an organization providing financial services (deposits, loans, investments, currency exchange) to support economic growth

Banking Institutions

• Commercial Banks include BDO, Metrobank, BPI, Landbank, and PNB
• Thrift Banks include RCBC Savings Bank and Philippine Savings Bank
• Rural Banks include Cantilan Bank and One Network Bank
• Cooperative Banks include the National Confederation of Cooperatives (NATCCO)

Not Banking Financial Institutions

• Government Financial Institutions (GFIs) provide financial assistance, including the SSS and GSIS
• (GSIS)Development Bank of the Philippines (DBP) provides for infrastructure and business

International Monetary Fund (IMF)

• It was established in 1944, Bretton Woods Conference
• Seeks to maintain global financial stability
• Provides short-term financial aid to stabilize crises
• Impose strict loan conditions that may hurt local economies

World Bank

• It was established in 1944, Bretton Woods Conference
• Aims to reduce poverty and promote development
• Provides long-term loans for infrastructure, education, etc
• Provides funds to build infrastructure

Global Corporation

• A company operating both in its home country and worldwide, offering similar products/services to maintain brand identity
• International Companies are importers/exporters without investments outside their home countries
• Multinational Companies have investments in other countries
• They do not have coordinated offerings, focusing on adapting for each local market
• Global Companies see the world as a single market, offering standardized products with minimal adaptation

Transnational Corporations

• Operate in multiple countries, decentralizing decision-making for subsidiaries to operate independently
• Neubauer (2014) states transnational corporations are agents of economic prominence that can create crises
• Global corporations drive innovation, create jobs, and modernize industries, holding significant influence over the economy
• Their actions or mismanagement can lead to significant crises

Market Integration

• It involves different markets becoming interconnected and unified

Types of Market Integration

• Horizontal Integration occurs when a firm gains control over similar firms at the same level
• Vertical Integration merges companies at different production stages to control the supply chain
• Forward Integration occurs when a company moves closer to the customer
• Backward Integration is when a company controls the supply chain by acquiring suppliers
• Conglomeration is where a company diversifies by acquiring businesses in unrelated industries

The Effects of Globalization on Governments

• Economic Integration
• Sovereignty
• Cultural and Social Changes
• Environmental Policies

Institutions That Govern International Relations

• International Labor Organization (ILO)
• International Monetary Fund (IMF)
• World Trade Organization (WTO)
• International Criminal Court (ICC)
• World Health Organization (WHO)
• United Nations (UN)
• Association of Southeast Asian Nations (ASEAN)
• North Atlantic Treaty Organization (NATO)
• THE WORLD BANK

Internationalism

• A political and ideological concept emphasizing cooperation and interaction between nations for mutual benefits
• Nations cooperate while keeping their independence
• Each country controls its own policies while working with others

Globalism

• Global interconnectedness sees the world as intertwined
• Advocates for less significant borders and a globalized approach to governance, economics, and culture
• Decisions are made by organizations/businesses
• Countries sign agreements but set policies, and global decisions impact local laws/policies

Contemporary Global Governance

• Elements of the State include population, sovereignty, government, and territory

Powers of the State

• Police Power regulates behavior and enforces order
• Taxation imposes taxes
• Eminent Domain takes private property for public use with compensation

Global Interstate System

• It is the network of relationships between sovereign states
• State- A political entity with a government, population, and sovereignty
• Nation- A group of people with a shared culture/history even without their own government
• Nation State is characterized by a unified population sharing ethnicity, language, and background, governed centrally

Key UN Organs and Their Roles

• General Assembly is the main body where all 193 members have equal power
• Security Council maintains peace/security and has 5 permanent members with veto power
• International Court of Justice (ICJ) settles disputes
• Secretariat administers operations, led by the Secretary-General
• Economic and Social Council handles development/cooperation
• Trusteeship Council supervises territories transitioning to independence

Functions of the United Nations

• Maintaining International Peace and Security
• Promoting Human Rights
• Delivering Humanitarian Aid
• Promoting Sustainable Development
• Upholding International Law

Asian Regionalism

• A political ideology favoring a region over a greater area
• Is a practice of regional systems of administration
• Regionalization is dividing an area into smaller regions

Division of A Nation

• Focuses on strengthening ties within a region
• Encourages trade and economic growth, and preserves and strengthens regional cultures
• Regional organizations provide support and focus on developing technology

Globalization

• The unification of world people in a single society
• Connects the world through trade, culture, and communication
• Promotes free trade and a global market while encouraging cultural exchange
• International organizations provide aid globally
• Technological innovations spread worldwide

Asian Regionalism

• It is a product of economic interaction between Asian countries
• Economies have grown and new trends influence regions
• Factors leading to integration include economic cooperation, cultural ties, trade, connectivity, migration and education

Supranational Organizations

• Groups of countries working together under shared authority extending beyond national governments

Intra-Regional Trade

• The exchange of goods and services within the same region