Contemporary World Midterm Reviewer Chapter 1 PDF

CONTEMPORARY WORLD: MIDTERM REVIEWER CHAPTER 1 HISTORICAL BACKGROUND OF GLOBALIZATION GLOBALIZATION- intensification of Interconnectedness of all nation in a global perspective 1981 Begin THEODORE LEVITT- Coined the term GLOBA...

CONTEMPORARY WORLD: MIDTERM REVIEWER CHAPTER 1 HISTORICAL BACKGROUND OF GLOBALIZATION GLOBALIZATION- intensification of Interconnectedness of all nation in a global perspective 1981 Begin THEODORE LEVITT- Coined the term GLOBALIZATION In the Harvard Business Review of Theodore Levitt he argued that TECHNOLOGY AND WORLDWIDE COMMUNICATION activated the emergence of global consumer markets. Communication and technology played an essential role in giving birth to the Global Market and Global Consumerism. AGE OF EXPLORATION- The Age of Exploration began in earnest with the first voyage of Christopher Columbus in 1492, he is a voyager who kicked off a massive global interchange of people during his arrival in the Caribbean. COLUMBIAN EXCHANGE- exchange of disease, foods, products, services,etc between new world and the old world. SILK ROAD- ancient geographic network of trading hotspots across china, central asia and mediterranean. It is also considered the first global trade route in history, a network of routes used by traders' well traveled pathway of goods between Europe and east Asia. The Bactrian camel was useful for carrying goods on the Silk Road between China and the West. Camels are also extremely strong. They can carry very heavy loads, up to 900 pounds. INDUSTRIAL REVOLUTION- The Industrial Revolution shifted societies from an agrarian economy to a manufacturing one, with products being made by machines rather than by hand. INFORMATION AGE (1970) the idea that access to and the control of information is the defining characteristic of this current era in human civilization.It is also known as the Computer Age, Digital Age, or New Media Age. TYPES OF GLOBALIZATION ECONOMIC GLOBALIZATION- International trade of goods and services involving financial flow and foundation of globalization. Cross border distribution of one goods, products and services is an indicator of dynamic economic globalization -Online shopping and e-commerce are some of the recent trends in economic globalization. POLITICAL GLOBALIZATION Strengthening and expansion of political interrelations across the globe. -dramatically increased the landscape of international relations and cooperation that exist between and among states/countries -Establishment of various regional, continental, and international organizations that focus on specific aims and goals are related to the intensification of political globalization. SOCIO-CULTURAL GLOBALIZATION A process of cultural diffusion(spread) across the globe through the socialization process. -Internet and Social Media are the heart of Socio-cultural globalization. -Pop Culture(Popular Culture) it shares one culture from one place to another -Influence of socio cultural globalization is very visible and widespread to us Filipinos from fashion, language, music, movies food, and such Ethnocentrism is the belief that one's own culture/nation is superior to all others, while Xenocentrism is the belief that other cultures are better than one's own culture/nation. TECHNOLOGICAL GLOBALIZATION technological advancement -expansion and heavy reliance or usage of computers, gadgets, machineries, engine, software, PHILOSOPHIES OF GLOBALIZATION REALISM (REALITY) The realists’ perspective in explaining globalization focuses on the shifting distribution of power among states. It is a view of international politics that stresses its competitive and conflictual side. Pragmatic Approach- based on practical considerations, rather than theoretical ones. A pragmatic person deals with things in a practical way ARISTOTLE is generally regarded as the father of Realism LIBERALISM Liberalism is based on the moral argument that ensuring the right of an individual person to life, liberty and property is the highest goal of government -equal human rights IDEALISM Idealists and constructivists hold the notion that values, and norms play pivotal roles in sustaining and reforming the process and works of individuals, groups, or nations. - perfect world, standard way of living CHAPTER 2 INTERNATIONAL TRADE GLOBAL ECONOMY (CHARACTERISTICS) - One giant entity - Everything we sell, buy, make, own, imports and exports 1. GLOBALIZATION- process by which business and other organizations develop international influence or start operating on an international scale -domestic economies have become cohesive leading in to their improvement performances this i what we called global partnership, pursuit of international coherence in economic policy, it should benefit both countries 2. INTERNATIONAL TRADE- inter-country exchange of goods or services in forms of IMPORT, EXPORT AND ENTREPOT -this is an economic theory that refers to an economy's ability to produce good at lower opportunity cost that its trade partner -Considered as an impact of globalization -TARIFFS AND IMPORT QUOTA are significance protectionist trade policy TARIFFS taxes that governments place on imported goods of a specific type. QUOTA Quotas are import limits that prevent more than a set amount of a specific good from being imported into a country IMPORT a good or service bought in one country that was produced in another (enter) EXPORT exports are goods that a country sells to another. (Exit) ENTREPOT where goods are imported into a country and then re-exported out, without being distributed within the importing country. COMPARATIVE ADVANTAGE- an economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners 3. INTERNATIONAL FINANCE- the study of monetary interactions that transpire between two or more countries. International finance focuses on areas such as foreign direct investment and currency exchange rates. -how different countries financial system interact Example of INTERNATIONAL FINANCE The euro The international monetary fund The world bank Regional development bank The world trade organization 4. GLOBAL INVESTMENT refers to an investment strategy that is not constrained by geographical boundaries. Mainly takes place via foreign direct investment. BUSINESS AND ECONOMIC CYCLE INFLATION (THEORIES AND TYPES) Theories of inflation 1. Keynesian - John Maynard Keynes - Higher the cost of production, higher the price 2. Monetarist - Milton Friedman (money is the root of inflation) - Higher the money supply, higher the demand, supply, and price Types of Inflation 1. Demand-Pull - Attracts inflation - High demand and price 2. Cost-Push - High price of good 3. Built-In - expected - High employment/wager, high purchasing power FOUR ECONOMIC PROCESSES 1. PRODUCTION 2. DISTRIBUTION 3.EXCHANGE 4.CONSUMPTION FUNCTIONS OF MONEY 1. MEANS OF PAYMENT can be used in a transaction to exchange goods and services. 2. STORE OF VALUE Money can be easily stored, retrieved, and used at a later time, and, at least in times of low inflation, it’s able to maintain most of its value. 3. UNIT OF ACCOUNT providing a common measure of the value of goods and services being exchanged. 4. STANDARD OF DEFERRED PAYMENT means that goods can be acquired now and paid for at a later date FACTORS OF PRODUCTION 1. LAND any natural resources 2. LABOR effort that human contributes 3. CAPITAL includes machinery, tools, buildings. 4. ENTREPRENEURSHIP combines lands, labor and capital in new ways. TYPES OF ECONOMIC SYSTEM 1. FREE MARKET ECONOMIC SYSTEM there is a very little government interference -regulation comes from the people and the relationship between supply and demand CAPITALISM- private ownership LAISSEZ FAIRE SYSTEM- french term that means allow to do FACTORS OF PRODUCTION- Own a property, to make a choice, to compete, to make profit 2. COMMAND MARKET ECONOMIC SYSTEM- Control from government, there is a dominant centralized authority that controls a significant portion of the economic structure. TOP 10 RICHEST COUNTRIES IN 2023 USA China Germany Japan India United kingdom France Italy Brazil Canada CHAPTER 3 GLOBAL INTERSTATE SYSTEM the networks and relationships between different countries in the world. STATE is as community formed by people exercising permanent power within a specified territory -a state has sovereignty, what means its government makes and enforces its own laws without approval of any other authority NATION a large body of people united by common descent, history, culture, or language, inhabiting a particular country or territory. NATION STATE system of organization where people with a common identity live inside a country with firm or clear borders and a single government. MODERN WORLD SYSTEM MODEL- is a macro sociological perspective that seeks to explain the dynamics of the capitalist world economy as a total social system -established on a three-level hierarchy consisting of core, periphery, and semi-periphery areas - Immanuel Wallers INSTITUTIONS THAT THE GOVERN INTERNATIONAL RELATIONS UNITED NATIONS NORTH ATLANTIC TREATY ORGANIZATION (NATO) EUROPEAN UNION WORLD TRADE ORGANIZATION GROUP OF 20 INTERNATIONAL CRIMINAL COURT GLOBALISM The belief and theory or practice of adopting or pursuing a political progress, economic system based on global principles rather than national principles. the idea that events in one country cannot be separated from those in another, and that a government should consider the effects of its actions on the rest of the world:  CHAPTER 4 UN FOUNDING DATE AND PLACE San Francisco, California 26 June 1945. PURPOSE The Purposes of the United Nations are: To maintain international peace and security, and to that end: to take effective collective measures for the prevention and removal of threats to the peace, and for the suppression of acts of aggression or other breaches of the peace, and to bring about by peaceful means, and in conformity with the principles of justice and international law, adjustment or settlement of international disputes or situations which might lead to a breach of the peace; To develop friendly relations among nations based on respect for the principle of equal rights and self-determination of peoples, and to take other appropriate measures to strengthen universal peace; To achieve international co-operation in solving international problems of an economic, social, cultural, or humanitarian character, and in promoting and encouraging respect for human rights and for fundamental freedoms for all without distinction as to race, sex, language, or religion; and To be a center for harmonizing the actions of nations in the attainment of these common ends. CHARTER The Charter of the United Nations is the founding document of the United Nations. It was signed on 26 June 1945, in San Francisco, Article 1 The Purposes of the United Nations are: Maintain International Peace and Security, Develop Friendly Relations, Achieve International Cooperation Harmonize Actions of Nations: Article 2 The Organization and its Members, in pursuit of the Purposes stated in Article 1, shall act in accordance with the following Principles. Sovereign Equality, Good Faith, Peaceful Dispute Resolution, Non-Use of Force: Article 3 The original Members of the United Nations shall be the states which, having participated in the United Nations Conference on International Organization at San Francisco, or having previously signed the Declaration by United Nations of 1 January 1942, sign the present Charter and ratify it in accordance with Article 110. Article 4 Membership in the United Nations is open to all other peace-loving states which accept the obligations contained in the present Charter and, in the judgment of the Organization, are able and willing to carry out these obligations. The admission of any such state to membership in the United Nations will be affected by a decision of the General Assembly upon the recommendation of the Security Council. Article 5 A Member of the United Nations against which preventive or enforcement action has been taken by the Security Council may be suspended from the exercise of the rights and privileges of membership by the General Assembly upon the recommendation of the Security Council. The exercise of these rights and privileges may be restored by the Security Council. Article 6 A Member of the United Nations which has persistently violated the Principles contained in the present Charter may be expelled from the Organization by the General Assembly upon the recommendation of the Security Council. Article 7 There are established as principal organs of the United Nations: a General Assembly, a Security Council, an Economic and Social Council, a Trusteeship Council, an International Court of Justice and a Secretariat. Such subsidiary organs as may be found necessary may be established in accordance with the present Charter. ORGANS General Assembly Security Council Economic and Social Council Trusteeship Council International Court of Justice UN Secretariat. CHAPTER 5 GLOBAL DIVIDES ECONOMIC GROWTH AND DEVELOPMENT Economic growth is a quantitative concept, can be referred to as the increase that is witnessed in the monetary value of all the goods and services produced in the economy during a time period. Economic development is a qualitative concept refers to the process by which the overall health, well being and academic level of a general population of a nation improves. HUMAN DEVELOPMENT INDEX is a composite measure. It looks at 3 things, wealth, education, health -The standard of living dimension (wealth) is measured by gross national income per capita. -The education dimension is measured by mean of years of schooling for children of school entering age -Health dimension is assessed by life expectancy at birth. ASPECT OF DEVELOPMENT (MICHAEL TODARO) Increased life- sustenance Increased self esteem Increasing freedom to choose CAUSES OF DEVELOPMENT GAP HISTORICAL Colonialism POLITICAL War Corruption GEOGRAPHICAL Climate, Natural Resources SOCIO-ECONOMIC Cycle of Poverty, Global Trading System  CHAPTER 6 ASIAN REGIONALISM Asian regionalism is the product of economic interaction, not political planning. As a result of successful, outward-oriented growth strategies, Asian economies have grown not only richer, but also closer together. TWO FACTORS IN BUILDING ASIAN REGIONALISM 1. FUNCTIONALIST OR PRACTICAL DIMENSIONS. Emphasizing the advantages that can result from co-operation and dialogue in economic, security and other areas 2. IT HIGHLIGHTS IDENTITY ISSUES.Focusing on the way the region ought best be defined. OUTWARD ORIENTED GROWTH STRATEGY OF ASIA Trade and industrial policies do not discriminate between production for the domestic market and exports, nor between purchases of domestic goods and foreign goods It does not discourage international trade. It actually promotes international trade. SUB REGIONS IN ASIA AND THEIR ECONOMIC LEVELS SOUTHWEST ASIA falls within one of the middle-income categories. Exceptions are Israel and the Persian Gulf states of Kuwait, Qatar, and the United Arab Emirates, which are considered high-income. NORTH AND CENTRAL ASIA fall within the low-income category, except Russia (Siberia), Kazakhstan, and Uzbekistan, all considered lower-middle-income. SOUTH ASIAN countries are considered low-income, apart from lower-middle-income Sri Lanka. Except for China and North Korea. EAST ASIA is the most prosperous part of the continent. SOUTHEAST ASIA have likewise achieved high rates of growth and have moved into one of the middle-income ASIAN FINANCIAL CRISIS The 1997–98 Asian financial crisis began in Thailand and then quickly spread to neighboring economies -It began as a currency crisis when Bangkok unpegged the Thai baht from the U.S. dollar, setting off a series of currency devaluations and massive flights of capital.