CONTEMPORARY WORLD PRELIM MODULE 1 PDF

Philippine State College of Aeronautics Basa-Palmayo Campus Floridablanca, Pampanga PRELIM MODULE 1 Lifted from: 1  CLO MLO...

Philippine State College of Aeronautics Basa-Palmayo Campus Floridablanca, Pampanga PRELIM MODULE 1 Lifted from: 1  CLO MLO TLO 1. Demonstrate familiarization and understanding on Globalization CLO 1. Distinguish different TLO1. Define globalization interpretations of and 2. Understand the Global Economy TLO 2. Differentiate the competing approaches to globalization conceptions of globalization 3. Identify Global Actors TLO 3. Identity the underlying CLO 3 Analyze the various philosophies of the varying contemporary drivers of 4. Describe and explain definitions of globalization globalization Market Integration TLO 4. Define economic globalization CLO 4. Understand the issues confronting the nation-state TLO 5. Identify the actors that facilitate Economic globalization. define the modern world system. TLO 6. Articulate a stance on global economic integration TLO 7. Define Market Integration TLO 8. Discuss the global market integration TLO 9. Explain the role of globalization in the integration of market 2  TABLE OF CONTENTS TOPICS PAGE TIME NUMBER ALLOTMENT (in minutes) Academic Honesty Clause 4 Globalization 5-6 78.6 Activity 1 (A) 7-8 60 Activity 1 (B) 8 60 The Global Economy 9 78.6 Global Actors 10-11 78.6 Activity 2 (A) 12 60 Activity 2 (B) 13 60 Market Integration 13-14 78.6 Activity 3 (A) 15 60 Activity 3 (B) 16-17 60 Reference 17 Assessment Rubric 18 Formative Assessment (Via Google Form) 60 3  Academic Honesty Clause Plagiarism is the use or close imitation of the language and thoughts of another author and the representation of them as one’s original work. (1995 Random House Compact Unabridged Dictionary) In the academe, it is an adaption or reproduction of an original intellectual creation, be it concepts, ideas, methods, pieces of information or expressions of another author, whether individual, group, or organization without proper acknowledgment. Moreover, plagiarism can range from borrowing a particular phrase or sentence to paraphrasing someone else’s original idea without citing it. The most common form of plagiarism, especially nowadays, is copying and pasting online material without crediting the source. Every student must practice Academic Honesty. Academic misconduct is subject to an academic penalty by the instructor and/or disciplinary sanction by the College. I _____________________________ fully understood the definition and description of plagiarism stated above and I am familiar with the Student Conduct Code. I am aware that I shall be penalized if plagiarism is found evident on my output/paper which includes, gaining a failing grade. As a college student and a member of scholarly community, I shall value other people’s ideas. Thus, I pledged to commit to the following truthful statements: 1. I shall not submit other people’s work and present them as my own. 2. I will not take any passages from their own previous work without adding citations. 3. I will not rewrite someone else’s work without properly citing sources. 4. I shall not use quotations without citing the source. 5. I will not interweave various sources together in my work, without citing. 6. I will not rely too heavily on other people’s work. 7. I shall bring original thought into my own work. 8. I will not disclose any exams/questionnaires/activities after I have taken them. 9. I will not copy any material from another student and submit it as my own. 10. I shall not share my own completed output to another class/student. __________________________ (Signature over Printed Name) REFERENCE: https://courses.lumenlearning.com/suny-collegesuccess- lumen1/chapter/academic-honesty/ https://www.business.umt.edu/ethics/academic-honesty.ph 4  Globalization What is 'Globalization’? In the advent of technologies, we see the growth on transports and communications. This means, people and countries can exchange information and goods in an easy way, this process is called "Globalization". Globalization represents the global integration of international trade, investment, information technology and cultures. Government policies designed to open economies domestically and internationally to boost development in poorer countries and raise standards of living for their people are what drive globalization. In our World history, they introduce around centuries the idea of concept of Globalization; traders explore to buy rare commodities such as salt, spices and gold, which they would then sell in their home countries. The 19th century Industrial Revolution brought advances in communication and transportation that have removed borders and increased cross-border trade. The Silk Road, when trade spread rapidly between China and Europe via an overland route. World Health Organization define Globalization, “the increased interconnectedness and interdependence of people and countries, is generally understood to include two interrelated elements: the opening of international borders to increasingly fast flows of good services, finance, people and ideas: and the changes in institutions and policies at national and international levels that facilitate or promote such flows. Globalization has the potential for both positive and negative effects on development and health. Thomas Friedman defined globalization as, “as the inexorable integration of markets, transportation systems, and communication systems to a degree never witnessed before-in way that enabling corporation, countries, and individuals to reach around the word farther, faster, deeper and cheaper than ever before, and in a way that is enabling the world to reach into corporations, countries and individuals farther, faster, deeper, and cheaper than ever before” Also, Manfred Steger provided scholarly description in his Globalization: A Very Short Introduction, “the term globalization should be used to refer to a set of social processes that are thought to transform our present social condition into one of globality.” In simple economic concept, the flow of products and services with few barriers in the integration of market, investment and trade between nation. At some point, culture is also assimilated and trade as they exchange of ideas and traditions by trading. The spread of Korean pop culture across will advance the exchange of ideas, art, language and music like other millennials experiencing nowadays are 5 some of the best examples. Globalization across the borders makes people and goods to move easily in the different nations. Globalization is an event occurred in unprecedented pace and gives definition to the world's market. It is still a public debate whether it is beneficial or detrimental most especially to the average citizens. It may direct or indirectly affect everyone, but not everyone gets the same benefits. The more stretches and intensified, the more backlashes produce to those people who cannot keep on the same. Standards of living have risen overall as more third world countries experience industrialization. Other proponents believe that globalization is the way to catch up for developing countries, because it allows them to cooperate with other nation like never before. The presence of multinational company will of great contribution especially to local economies as they invest in local products, resources, services, medical and educational facilities. Globalization brought many benefits to other people but to others, it is not to everyone. It shows that, in fact, in all but a couple of countries polled, people believe life was better in the old days. If the other country produces cheaper product, other producers will be closed down and leads to loss of thousand jobs to others. Every step forward especially in technology it also brings a new danger. Example, Technology improves the lives of many people, but also increases the number of crimes every year. Globalization has contributed to global warming, climate change and the overuse of natural resources. An increase in the demand for goods has boosted manufacturing and industrialization. Globalization has also increased homogenization in countries. Some politicians argue that globalization is detrimental to the middle class, and is causing increasing economic and political polarization to developed countries. For example, outsourcing facilities in lower cost that leads workers to compete internationally for jobs. Also, international chain from developed country dominate the cultural exchange because their goods and culture influenced other countries more than those of any other nation. Good or bad, though, there isn't much argument as to whether or not it is happening. Let's look at the positives and negatives of globalization, and you can decide for yourself whether or not it is the best thing for our world. 6 ACTIVITY 1: Name: __________________________ Score: ___________________ Course: _________________________ Date: ____________________ A. GLOBALIZATION: ADVANTAGES AND DISADVANTAGES Scenario Positive Negative Depends Scenario A: In your local town, one of the main sources of employment for three generations has been the fruit cannery. The company has recently decided to close the factory and outsource the canning of fruit to another country where labor and fruit are cheaper. Scenario B: Your friend's garage band has really taken off on YouTube and people from places as distant as Finland and Ghana are downloading it. Scenario C: You meet someone really nice while you're on holiday in Bali and can now keep in touch via Skype. Scenario D: The shoes that you really like are much cheaper via an online shop in America. Scenario E: The Australian Government is being pressured to decrease the current annual minimum quota of 55% Australian television programming (between 6 am and midnight) to 40%. 7 Scenario F: The Company that your father works for has recently been taken over by a transnational corporation with job opportunities in many parts of the world if he is prepared to move/relocate. Scenario G: A representative from World Wildlife Fund invites students to become involved in and advocate to help the secure the future of orang-utans. Scenario H: Your mother’s superannuation fund has been affected by the Global Financial Crisis and she is worried that she won't have enough money when she retires Share your responses with the class. Try to tease out the complexities of each situation and ensure you understand that globalization affects local communities in complex and interdependent ways. B.True or False Direction: Write your answers before the number. 1. World Health Organization define Globalization, “the increased interconnectedness and interdependence of peoples and countries. 2. Thomas Friedman defined globalization as, “as the inexorable integration of markets, transportation systems, and communication systems to a degree never witnessed before 3. Exchange information and goods in an easy way, this process is called "Globalization" 4. Globalization is an event occurred in unprecedented pace and gives definition to the world's market. 5. Globalization has contributed to global warming, climate change and the overuse of natural resources 6. Some politicians argue that globalization is detrimental to the middle class, and is causing increasing economic and political polarization to developed countries. 7. United Nations defines Economic globalization as "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 8. In economic globalization, companies seek the greatest possibility of efficient and maximized profits that will involve many regions and localities to “global production”. 9. The rapid growing significance of information in all types of productive activities and marketization are the two major driving forces for economic globalization” 10. The United Nation, founded at the Bretton Woods Conference in 1944, is the official organization for securing international monetary cooperation. 8  The Global Economy Countries trade with each other due to the lack of resources and cannot satisfy their own needs and wants. As the countries developed their resources and they trade it for the resources they need. Many years ago, when the other countries travelled a distance to trade, as it is very evident that international trade play significant role in the development of industrialized world. Imports of goods and services happen maybe for better or cheaper quality, appealing goods or no alternatives exist. In this lesson, we will begin with economic globalization and global actors that facilitate the economic globalization. United Nations defines Economic globalization as “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. It reflects the continuing expansion and mutual integration of market frontiers, and is an irreversible trend for the economic development in the whole world at the turn of the millennium. The rapid growing significance of information in all types of productive activities and marketization are the two major driving forces for economic globalization" According to Dennis O. Flynn and Arturo Giráldez, "Global trade emerged when; 1) all heavily populated continents began to exchange products continuously - both with each other directly and indirectly via other continents - and 2) did so in values sufficient to generate lasting impacts on all trading partners (“Globalization Began in 1571. p2) In economic globalization, companies seek the greatest possibility of efficient and maximized profits that will involve many regions and localities to “global production”. Many believe that the new technology will allow the intense movement of information, goods, services and people can create an environment of “new economy” increasing the networks in global production, free trade and capital. The interconnections of various components of production, where the stages in production takes place in different location depends on the favorable conditions such as cheap labor, raw material, skilled labor and market consumer. Free trade will be necessary condition for the development of production networks. Minimizing trade barriers and ensure smooth movement resources, goods and services. The engine of globalization which allows the use of technological advances and differences between regions. Technology that can bring innovations for economic development and growth. Technological change and deregulation/ liberalization enabled the development of financial markets (capital moves freely) to the extent that the financial markets began to dominate the global economy (the majority share of the volume of past transactions comprises the speculative investment). 9  GLOBAL ACTORS Multinational Corporation The multinational corporation is a business organization whose activities are located in more than two countries and is the organizational form that defines foreign direct investment. This form consists of a country location where the firm is incorporated and of the establishment of branches or subsidiaries in foreign countries (A. A Lazarus, 2001 p. 10197) The International Monetary Fund The International Monetary Fund (IMF), founded at the Bretton Woods Conference in 1944, is the official organization for securing international monetary cooperation. It has done useful work in various fields, such as research and the publication of statistics and the tendering of monetary advice to less - developed countries. It has also conducted valuable consultations with the more developed countries. North Atlantic Treaty NATO is based on the North Atlantic Treaty, which provides the organization a framework. The treaty provides that an armed attack against one or more of NATO's member nations shall be considered an attack against them all.* NATO is headquartered in Brussels, Belgium. The organization was formed in 1949. Many nations joined NATO -even Iceland, the only member without a military force. The organization was originally formed out of the fear that the Soviet Union would ally military with Eastern European nations, i. e. the Warsaw Pact, and thus become a threat to Western Europe and the United States. World Trade Organization (WTO) International Monetary Fund (IMF), and the World Bank The World Trade Organization (WTO), the International Monetary Fund (IMF) and the World Bank are the three institutions that underwrite the basic rules and regulations of economic, monetary, and trade relations between countries. Many 10 developing nations have loosened trade rules under pressure from the IMF and the World Bank.’t The domestic financial markets in these countries have not been developed and do not have appropriate laws in place enable domestic financial institutions to stand up to foreign competition. The administrative setup, judicial systems, and to law-enforcing agencies generally cannot guarantee the social discipline and political stability that are necessary in order to support a growth-friendly atmosphere. As a result, most multinational corporations are investing in certain geographic locations only. In the 1990s, most foreign investment was in high-income countries and a few geographic locations in the South East Asia and Latin America. According to the World Bank's 2002 World Development indicators, there are 63 countries considered to be low- income countries. The share of these low-income countries in which foreign countries are making direct investments is very small; it rose from 05 percent 1990 to only 1.6 percent in 2000. The first half of the 20th century was marked by two world wars that caused enormous physical and economic destruction in Europe and a Great Depression that wrought economic devastation in both Europe and the United States. These events kindled a desire to create a new international monetary system that would stabilize currency exchange rates without backing currencies entirely with gold; to reduce the frequency and severity of balance-of payments deficits (which occur when more foreign currency leaves a country than enters it); and to eliminate destructive mercantilist trade policies, such as competitive devaluations and foreign exchange restrictions- all while substantially preserving each country's ability to pursue independent economic policies. Multilateral discussions led to the UN Monetary and Financial Conference in Bretton Woods, New Hampshire, U.S., in July 1944. Delegates representing 44 countries drafted the Articles of Agreement for a proposed International Monetary Fund that would supervise the new international monetary system. The framers of the new Bretton Woods monetary regime hoped to promote world trade, investment, and economic growth by maintaining convertible currencies at stable exchange rates Countries with temporary, moderate balance – of - payments deficits were expected to finance their deficits by borrowing foreign currencies from the IMF rather than by imposing exchange controls, devaluations, of deflationary economic policies that could spread their economic problems to other countries. After ratification by 29 countries, the Articles of Agreement entered into force on December 27, 1945. The fund's board governors convened the following year in Savannah, Georgia, U.S., to adopt bylaws and to elect the IMF’s first executive directors. The governor decided to locate the organization’s permanent headquarters in Washington, D.C., where its 12 original executive directors first met in May 1946. The IMFs financial operations began the following year. (Lawrence McQuillian, Encyclopedia Britannica, October 9, 2018) In other words, the fast globalization of the world's economies in recent years is largely based on the rapid development of science and technologies, has resulted from the environment in which market economic system has been fast spreading throughout the world, and has developed on the basis of increasing cross-border 11 division of labor that has been penetrating down to the level of production chains within enterprises of different countries. ACTIVITY 2 Name: ________________________________ Date: ______________ Course: _______________________________ Score: ____________ Global economy in which we live After the discussion the students will bring the following:  Bring a favorite item of clothing to school  Make a chart to show where their favorite clothing articles are produced  Take a home survey to identify the country of origin of other common goods  Use collected data to make a chart, graph, or map to illustrate the global economy in which we live in. Home survey A. Directions: Take a home survey with your favorite item of clothing and goods. Use a chart, graph or map to identify the country of origin of other common goods. Item: Price: Country: Manufacturer: Questions: 1. Which country has the largest products that has been produced in your possession? 2. What are the nations why the country cited is leading in the mass production of products 3. Give the advantages and disadvantages of mass production that is controlled by any country 12  B. Direction: Name the different global actors and their functions Organization: International Monetary Fund (IMF): Date founded: Bretton Woods Conference in 1944: Function: Securing international monetary cooperation: Market Integration Market integration is the fusing of many markets into one Global market integration means that price differences between countries are eliminated as all markets become one way to the progress of globalization is to look at trends how prices converge or become similar across countries. The time when the costs of trading across the country fall and that is the time the other firm will take advantage of price differences, other countries may enter the market of the other country. Trading cost fall when new product invented or developed becomes cheaper and also some costs are man-made like when they impose a barrier for trade. In one market a commodity has a single price such as the price of rice would be the same in east Pangasinan and west Pangasinan if these areas were part of the same market. If the price of rice in west Pangasinan was higher sellers of rice would move from the east to the west and prices would equalize. The price of rice in one place to other might be different, though, and high transport costs and other kinds of expenses might mean that it would be uneconomical for other sellers to move their stocks to other place if prices were higher there. And for other markets, the price changes for a long period of time, Integration 13 By the end of the 20th century globalization across most markets had returned to the levels seen just before World War I. Today, markets are more integrated than ever as transportation costs have continued to fall and most tariffs have been scrapped altogether. One vision of the future of globalization involves the elimination of other kind’s barriers to trade used by institutional differences between countries, Markets are embedded in institutions such as property rights. legal systems. And regulatory regimes. Differences in institutions between countries create trading costs in the same way that tariffs or distance do. For example, there may be different laws in Kenya, China about what happens when a buyer fails to pay. This might make it hard for a Chinese exporter to recover what it is owed in the event of a dispute, which could make the firm reluctant to enter the Kenyan market. Despite the removal of tariffs the world is far from being a single market. Borders still matter because of these kind of institutional incompatibilities.Complete integration requires the ironing out of legal and regulatory differences to create a single institutional space. Some economists argue that this process is underway and inevitable, and that global markets drive the harmonization of institutions across countries. Consider a multinational firm choosing a country in which to locate its factory. In order to attract the firm's investment, a government might cut business tax rates and loosen regulatory requirements Other competing countries follow suit. The resulting lower tax revenues make countries less able to finance welfare states and educational programs. All policy decisions become oriented toward maximizing integration with global markets. No goods or services would be provided that are incompatible with this This economic interest also became part of a political strategy that transformed people into individual political economic subjects. In order to establish, maintain and expand their domination the new states will make systematic use of scientific knowledge with the aim of assessing and influencing the behavior of their subjects. And they will do this assuming that people's behavior is mainly motivated by interest Government now consciously wants to deal with the interests of individuals in order to serve its own interest. Political economics will not only consist of observing people's self-interested behavior, it will also promote it. The main issue in the politics of states will be to figure out ways to anticipate what might happen in order to influence economic expansion. The new politics will not only go together with a reflection about the interest of the state but also implies that those in power have to think differently about their individual roles in relation to and about the way their personal motivation fits with the According to Smith, it was no longer a question of teaching mankind what must be done with reference to the next world, but rather to understand what the human being actually is and what can be done in this world with humans as they actually are. The social contract and the workings of society should be studied on the basis of natural human (Bouchet: Adam Smith: Then & Now) 14 ACTIVITY 3 Name ____________________ Course: _____________ Market Game The students must bring the following: Cartolina / Manila paper Marker Play money A. Direction: The student will be given an exact amount of play money and they will come up with a project output Example: Amount of Play Money (Php 2.496.00) Project: Young at Heart (This project is a simple party for the Senior Citizen in Brgy. Cadre) Guide Questions: 1. Title of the project: Score: Date; 2. Beneficiaries: 3. Line Item Budget: Items: 15 Price: The total must be the exact amount given by the teacher for the project 4. Possible impact of your Project B. Direction: Choose the correct answer from the given options. Write your answer before the number. A. Trade B. Culture C. Security D. Politics 1. Countries within the region create deals like cheaper tariffs to for easier import/export 2. Countries within the region provide assistance in combating foreign-supported terrorist groups 3. Leaders of countries within the region often perform social visits to talk agreements despite differences and show solidarity and support to those they are in agreement with 4. Citizens of countries within the region are generally alike in appearance, temperament and experiences which can help in easing negotiations 5. The following are aspects of the Bandung View EXCEPT: A. Tame the market corporations B. Serve as the engine of development C. Create states with little to no democratic participation in nearly all spheres of governance D. Express the general will 6. Which among the following bodies of the United Nations does NOT deal with issues like international laws and disputes? A. General Assembly B. Economic and Social Council C. Security Council D. International Court of Justice 16 7. What do we call the line that shows the "North-South" divide? A Bentley Line B. Barman Line C. Brandt Line D. Best Line 8. Many of the countries in the Global South were former A. capitalists B. colonies C. monarchies D. democracies 9. Globalization has forced isolated countries to establish international commerce policies A interact with others B severe ties with others C. compete with each another D. attack each other 10. It is the branch or aspect of the United Nations that has the primary responsibility for international peace and security A Security Council B. Economic and Social Council C. General Assembly D. International Court of Justice REFERENCE: 17 ASSESSMENT RUBRIC: CRITERIA Exemplary Proficient Incomplete 10 points 5 points 3 points Reflective Learning Evidence of strong Evidence of some Little evidence of reflective thought reflective thought reflective thought pertaining to the topics pertaining to the topics pertaining to the topics presented, with the presented, with few presented, with improper correct usage of lapses in vocabulary. use of vocabulary. vocabulary. Statements Statements are Statements did not meet are beyond simply contained by just simply the expectations for the answering the given answering the given given the activity. activity. activity. Total points __________ 18