Economic Globalization Notes PDF

Economic Globalization In the beginning… - Simplest economic system - Hunting and gathering - “Isang kahig, isang tuka” - Hand-to-mouth subsistence Evolved to Agricultural Economy - Agricultural Revolution - People learned to plant crops and domesticate animals - Wealth was...

Economic Globalization In the beginning… - Simplest economic system - Hunting and gathering - “Isang kahig, isang tuka” - Hand-to-mouth subsistence Evolved to Agricultural Economy - Agricultural Revolution - People learned to plant crops and domesticate animals - Wealth was measured by how much sheep or cattle one has - Money was not yet invented - Mesopotamia Barter Trade - Before the invention of money, civilizations practice barter trade - Goods for goods Economy in the City States and Ancient Kingdoms - Taxation was invented - Taxation was in kind, not in cash - Example: 10% of everybody’s harvest goes to the king - If you harvest 100 sacks of potatoes, 10 sacks will go to the king - Aside from farming, some people became craftsmen and artisans - They made clothes, shoes, baskets, tools, jewelry, and furniture - They became new players in the barter trade Rise of Merchants - Some people became “middle men” or merchants - Trading expanded geographically - Merchants travel far to barter with other communities - The merchants became a wealthy social class - Gold became the trading currency Age of Ancient Empires - Kingdoms invaded other kingdoms - Primarily for economic gains - Measure of wealth: - Amount of Gold, treasures, agricultural produce, slaves - Later, money was invented Age of Mercantilism - People operated only in small concentric circles of trade - They don’t travel too far, or intercontinental, just to trade their goods Age of Discovery - Age of Mercantilism - Golden Rule - He who has the gold, is the one who rules - European kingdoms tried to accumulate as much gold as possible - But with the Age of Discovery, their operations widened - Empires now operated intercontinentally Industrial Revolution - Europe became the “center” of the economy, which is now a global economy - The overseas colonies became the “periphery” - Later, the USA also became a “center” of economic power - “Center” - where the factories are - “Periphery” - the farms, the sources of raw materials - IMBALANCE - the “center” became richer, the “periphery” remained poor Post-Colonial Era - After World War 2, the “centers” released their respective “peripheries” - The Western Powers gave independence to their colonies Post-Colonial Era: Neo-colonialism - The 1st World continued to flourish economically, while the 3rd World (agriculture-based economies) struggle to improve economically - Raw materials like sugar and copra are cheap; while finished products like coca-cola and shampoo are expensive. Who will get a higher income? - But the old economic order remained - The newly-independent countries (former colonies, the 3rd World) still exports raw materials to their former colonizers - In return, the Western Powers (former colonizers, the 1st World) exports finished products to the former colonies - Example: The Philippines exports sugar to the US. In return, the US exports candies, chocolates, and coca-cola to the Philippines Post-Colonial Era - Banks of the 1st World like IMF and WB loaned money to the 3rd World countries - In the process, they, the rich countries, get more control over them The 2nd World - Meanwhile, in the communist bloc, trade happens only among themselves  - The big communist countries - USSR and China - exports to the smaller communist states (satellite states) what they need, including military hardware like tanks, guns, bombs, etc) - Small communist countries - North Korea, North Vietnam, Cuba, etc Discovery of Oil - After WW2, petroleum was discovered in the Middle East - The Middle Eastern countries rose to become economic powers by exporting oil to the rest of the world - Now we have a new set of countries that are powerful economically, but are neither 1st world nor 2nd world - They are neither 3rd world too - They organized the Organization of Petroleum Exporting Countries (OPEC) The OPEC - These Arab states control the prices of petroleum products world-wide - If they drill oil quickly and in large quantities, there will be an oversupply - Prices will go down - If they slowed down the drilling of oil - there will be a shortage of supply - Prices will go up The New World Order - With the collapse of communism in the 1990s, the 1st, 2nd, 3rd world labeling of the countries of the world became outdated - The labeling system we have now is “Developed” and “Developing” countries Age of Economic Cooperation The European Union (EU) - The Western European countries, mostly former 1st world countries, banded together economically - One currency - the Euro (if you’re a tourist, no need for money, changers) - Porous borders - no visa (easy and fast travel from one EU country to another) - Relaxing of trade restrictions - less taxes, less threatening for sellers, results to higher income of the sellers - For example: you’re an exporter of French wine: - Before EU was formed: - You pay large amount of tax to the countries you send your product to - After EU was formed - You pay less tax, you get more income - You become richer quicker - The richer citizens gets, the richer the country becomes The APEC - Asia Pacific Economic Cooperation - Operates somewhat like the EU - Relaxation of tariffs (taxes) among member countries - The Philippines is a member of this - That’s why we see a lot of foreign products in our market - Ponkan, apples, etc - Downside: Some countries can’t compete economically with others - Example: - Korea, Japan, US sells computers, cars, appliances, and gadgets - Large price, less taxes = large income - Philippines and other agriculture-based countries sells bananas - Cheap price, less taxes = small income - The situation is worsened by China - China sells apples and ponkan to the Philippines - We patronize Chinese fruits over Philippine fruits - Thus, our farmers get lesser income now The ASEAN Integration - Association of South East Asian Nations (ASEAN) - Philippines, Indonesia, Malaysia, Singapore, Myanmar, Cambodia, Laos, Vietnam, Thailand, Brunei - Thailand proposed an EU-like set-up in 2015 - Thailand is on the advantage, we are at a disadvantage - Thailand has a lot to sell - They have a lot more agricultural produce (rice, fruits) compared to the Philippines - This ASEAN Integration is not yet in full swing - It is still in the early stages - You don’t need a visa to enter ASEAN member states - The K12 Program was instituted to have seamless transfer of students from on ASEAN state to another - Soon we might have a common currency - What do you think? Synthesis What have we seen in this lesson? There is a globalization of economy  - Countries tear down borders and merge their economies - They do this for mutual economic gains - They call this “economic cooperation” Cultural Globalization Today, we have a dichotomy of cultures - Western culture - Eastern culture Where is the demarcation line? - In Jerusalem Jerusalem: The City of God - In the old times, people believed that Jerusalem was the center of the flat world - All lands east of Jerusalem is “The East” - All lands west of Jerusalem is “The West” The West - Europe and America The East - Asia Middle East and Far East - Middle East - Also called “Near East”  - The east that is near Jerusalem - Far East - Also called “The Orient” - The east that is far from Jerusalem Eastern Culture - Also called Oriental Culture Facets of culture - Clothing - Music - Arts - Architecture - Customs and traditions - Religion - Cuisine - Mentality Far East Culture - China, Japan, Korea, Southeast Asia (Thailand, Indochina) - Heavily influenced by Taosim, Buddhism and Confucianism - Belief in Feng Shui - Writing and reading system is from right to left - Meekness is a virtue - Utmost respect for elders - Close family ties - Unique clothes - Food: noodles, raw fish, kimchi, maki - Unique music and musical instruments - Greeting: bow South Asian culture - India, Bangladesh, Pakistan - Heavily influenced by Hinduism - Colorful clothes - Unique music - Unique architecture - Cuisine: spicy, curry - Eating with bare hand - No beef diet - Arranged marriage Middle East culture - Heavily influenced by Islam - Unique clothes - Beard for men - No pork diet - Greeting: holy kiss Women in Asia - In general, Eastern culture is a male-dominated culture - Women were treated lowly in most parts of Asia - It’s just recently that things are changing - Only in the Philippines - concept of “under the saya” Western Culture  - North America and Europe - Western clothes - Unique music and musical instruments Western culture: North America and Europe - Individualism - Not so much family-oriented - Liberal views on sex and gender - Materialism - Unique cuisine - Greeting: hand shake - Western holidays Western culture: Latin America - South America and Central America - Heavily influenced by Catholicism - Cuisine: spicy food (Mexican) - Unique dance and music - Greeting: beso-beso HOW GLOBALIZATION OF CULTURE COMMENCED Age of Colonialism - West conquered East - Imposition of political power on the easterners - Economic exploitation - Western culture infiltrated the East - For Westerners, they think their culture is superior - Example: - The Spaniards imposed to us their religion and culture - The movie “The King and I” debunked the Oriental King’s worthiness of the bow - Hollywood movies’ plot is about America being savior of the world - Western medicine is legitimate, while eastern medicine is doubtful or mythical - Colonial mentality among Filipinos - The world is developing just one culture - And that is Western culture But most recently… - Eastern culture is gaining popularity - Martial arts movies - Chinese new year celebration in the US - Yoga fad - K-pop invasion - Herbal medicine fad Social Globalization Introduction - Man is a social being - Humans interact with one another - Socialization is essential in life Before… - Face-to-face interaction - Family, village, community - People learned to write - Written communication added to face-to-face communication - Personal letters, edicts of kings, books Advent of Mass Media - Invention of the printing press - Caused the mass production of writings - Print media - Newspapers - The Telegram was invented in the mid 1800s - The Telephone was invented in the late 1800s - Radio Broadcasting began in the 1920s - Television Broadcasting began in the 1940s - The internet was invented in the 1980s - The Cellphone was invented in the 1990s - Social Media was invented in the 2000s - (Red letters - mass audience, black - one-on-one communication) Today… - The Quad Media - Print - Radio - TV - Internet - Massive personal communication across the globe thru social media - We do these things on line… - Personal communication - Shopping - Banking - Job hunting - Courtship and dating - Entertainment - Education Conclusion - The world is smaller nowadays Globalization of Other Things Introduction - Aside from political ideas, economic systems, culture, and social networks, there are many other things that have globalized 1. Plants - Plants naturally grow in a certain place, but not in another - “Endemic” - means originally from Examples of endemic plants - Central and South America: - Avocado, chico, strawberries, corn, coffee, okra, tomatoes, tobacco, papaya, guava, calabasa - Far East:  - Rice, durian, duhat, abaca, lychee, lanzones, rambutan, carabao mango, sugar cane, tea - South Asia: - Cinnamon, Indian tree, Indian mango - Middle East: - Dates, olives, pomegranate, fig Because of Colonization - These plants got dispersed to other places - Example: - Manila-Acapulco Galleon Trade - Mexican fruits and vegetables entered the Philippines and were grown here - These plants got dispersed to other places - Example: - Sugar and tobacco were grown in other Spanish colonies 2. Language - Before, languages were confined in their respective “birth places” - Spanish - Spain - Portuguese - Portugal - English - England - French - France Because of Colonization - Spanish - now spoken in Central America, and most of South America - Portuguese - now spoken in Quebec, Canada, many African and Caribbean countries, and Pacific Islands - English - now spoken in North America, Indian sub-continent, many African countries, in Oceania, and in the Philippines. It is the most widely spread language, and the international business language - Recently these Asian languages are also starting to spread globally: - Japanese - Mandarin - Korean 3. Food and Beverage - Due to colonization, trade, migration, and many other factors, trademark food and beverage of many nations have spread world-wide - They are now available in specialized restaurants, and supermarkets world-wide  - Today, Coca-cola has penetrated almost all (if not all) countries in the world - Many say that it has surpassed the Gospel in doing so - We see the following food world-wide: - Hamburger - Spaghetti - Pizza - Sushi - Kimchi - Pancit - Pies - Tortilla - Nacho - Shawarma - Chocolates - Bibimbap - We see the following food world-wide: - Coca-cola - Coffee - Tea - Beer - Vodka - Tequila - Red Wine - Soju 4. Sports - Before, certain sports were just confined in one country - USA - basketball, volleyball, baseball - England - cricket, rugby - Korea - taekwondo - Japan - judo, sumo, karate - China - kung fu - Thailand - sepak takraw - But due to colonization, mass media, and many other factors, these sports are now played world-wide - There are now world-governing bodies for most of these sports like FIBA - They are even played in the Olympics - In China, there are over 300 million registered basketball players - These are the top 3 most popular sports in the world in terms of viewership: - 1st - football - 2nd - swimming  - 3rd - basketball 5. Religion - Most of the world’s major religions originated in Asia - Judaism - Israel, since time immemorial - Hinduism - India, since time immemorial - Taoism - China, since time immemorial - Confucianism - China, c.500 BCE - Buddhism - India, c.500 BCE - Christianity - Israel, 1st century CE - Islam - Arabia, c.500 CE - Judaism - Today, Judaism has spread world-wide due to the Jewish Diaspora - Hinduism - Although Hinduism is still practiced mainly in India, its doctrines are globally-spread out - The following everyday terms we hear have their roots in Hinduism: - Karma, reincarnation, next-life, past-life, soul-mate, yoga - The Beatles have converted to Hinduism one time in their life - Taoism - Although Taoism was practice mainly in China and Korea, its beliefs are globally-spread out - The following everyday terms we hear have their roots in Taoism: - Positive and negative vibes, feng sui, bagwa, eternal struggle of good vs evil - The Taoism symbol is even on the old Pepsi logo and South Korean flag - Confucianism - Although Confucianism was practiced mainly in China, Confucius’ teachings are globally spread out - The following have their roots in Confucianism: - The Golden Rule, Chinese martial arts (hand-to-hand combat) - Confucius was against the use of weapons. Thus, his followers developed a fighting technique without the use of weapons - Buddhism - Although Buddhism was originally from India, it has spread to the entire East Asia, most of mainland Southeast Asia, East Timor, and Sri Lanka - Today we see lots of Buddha statues in many places and in homes - Saying “Buddha bless you” when somebody sneezes - The world’s most famous Buddhists:  - Islam - Although Islam was originally from Arabia, it has spread to the entire Middle East, North Africa, most of insular Southeast Asia, and even in the Western World (Europe and USA) - It is one of the world’s fastest growing religions in the Western World as many westerners are attracted to its strict and wholistic discipline - Some Westerners who converted to Islam - Christianity - Began with Christ and the first church in Jerusalem (Acts 2) - Today it has spread to almost the enter world - Of all religions, it is the most aggressive in spreading its teachings to others (Evangelization) - Christians believe that Jesus commanded them to do so (matthew 28) - In the 1990s, the only place that Christianity hasn’t penetrated is the 10-40 window - The 10-40 Window - 10 degrees south latitude up to 40 degrees north latitude - Mainly Asia and North Africa - But now, 30 years later, with the help of technology, and recent geo-political developments, Christianity has taken great strides in bringing the Gospel to these places Summary - Today, we have seen the Globalization of - Plants - Language - Food and Beverage  - Sports - Religion Drivers of Globalization 1. Science and Technology - People discovered agriculture - Transitioned from Hunting-Gathering to Agricultural society - Industrial revolution - People developed machines for mass production - Transitioned from Agricultural to Industrial society - Discovery that the world is round - Made people aware of other continents and people therein - Discovery of fossil fuels (coal and petroleum) - Led to, and boosted the Industrial Revolution - Invention of advanced transportation - Made travel faster and more convenient - People reached places quicker, world became smaller - Space Exploration and Space Travel - When people reached outer space and the moon, we saw images of the earth from afar - We saw how “small” our planet is - Mass Communication - The invention of the printing press, radio, and tv enabled people to send messages globally to mass audiences - Information Technology - The invention of the computer and the internet made the world even much smaller 2. Trade - Merchants brought goods from one continent to another, causing awareness of other lands and cultures - The Spice Trade served as catalyst for the Age of Discovery and Age of Colonization  - Trade in the modern times causes foreign product to flood into the local markets of several countries 3. Colonization and Neo-Colonization - When a kingdom or empire conquers another one, they impose their political, economic, cultural, and social systems into the colony - Thus, there is a spreading of their system; in a way, it’s globalization - Spaniards spread Catholicism - British spread the English language - Americans spread the “Am way” and the American pop culture 4. Migration - People moved from one place to another bringing along their ideas, culture, and technology - The Trans-Atlantic Slave Trade brought African people and culture into the Americas - The Jewish Diaspora made the Jews spread all over the world 5. Wars and Revolutions - Wars causes borders to fall, people to migrate, and new systems to be imposed on nations - The French Revolution ushered democracy into modern Europe - The Russian Revolution put in orbit communism in Russia - The Chinese Revolution put in power the communists in China - Communist take-overs in Cuba, Vietnam, etc - Aftermaths of World War 1 and World War 2 established new world orders - The EDSA Revolution served as a model and sparked the downfall of communism world wide - US-Arab hostilities opened the Arab world to democracy 6. Personalities - Philosophers, rulers, celebrities, and other influential people spread their ideologies and trends, and made the world polarized or united in some way - Karl Marx, Confucius, Mohammed, Jesus Christ, rock stars, movie actors etc 7. World Organizations - The United Nations and other similar groups, sports governing bodies, economic cooperations, all contribute to making the nations open to one another (collapsing of borders) while retaining one’s sovereignty - Also in times of disasters, humanitarian inter-nation interaction becomes more prevalent. Example: Ondoy Summary - What causes Globalization? - Many drivers, combination of the following: - Science and Technology - Trade - Colonization and Neo-Colonization - Migration - Wars and Revolutions - Personalities - World Organizations