Globalization: Origins and History

Module 1: **Understanding Globalization** **Lesson 1** ***What is Globalization?*** - the advent of technologies - growth on transports and communications. - This means, people and countries can exchange information and goods in an easy way, this process is called "globalization". **...

Module 1: **Understanding Globalization** **Lesson 1** ***What is Globalization?*** - the advent of technologies - 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 and raise standards of living for their people are what drive globalization. ***Our world history*** - they introduced 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. ***19^th^ century Industrial Revolution*** - brought advances in communication and transportation that have removed borders and increased cross-border trade. ***Silk Road*** - **when trade spread rapidly between China and Europe via an overland route.** ***World Health Organization (WHO)*** - globalization can be as "the interconnectedness and interdependence of peoples and countries. **Two inter-related elements:** - the opening of international borders to increasingly fast flows of goods, services, finance, people and ideas; - and the changes in institutions and policies at national and international levels that facilitate or promote such flows. ***Thomas Friedman*** - defined globalization as "the inexorable integration of markets, transportation systems, and communication systems to a degree never witnessed before - in a way that is enabling corporations, countries, and individuals to reach around the world farther, faster, deeper, and cheaper than ever before. ***Committee for Development Policy*** - (a subsidiary body of the United Nations Organization), - globalization from an economic point of view can be as: *the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, the flow of international capital and the wide and rapid spread of technologies.* ***Economic concept*** - flow of products - the integration of market, investment and trade between nations. - some point, culture is also assimilated and trade as they exchange spread of Korean pop culture across the world will advance the exchange of ideas, art, language and music like other millennials experiencing nowadays are some of the best example. ***Manfred Steger*** - gave the best academic explanation of globalization when he described it as \"the expansion and intensification of social relations and consciousness across world-time and world-space. - the creation of new social networks and multiplication of existing connections that cut across traditional political, economic, cultural, and geographic boundaries. - For example, social media and other new technologies people to the world, while international non-governmental organizations (NGOs) are networks that bring together social ***Intensification*** - refers to the expansion, stretching, and acceleration of these only are global connections multiplying, but they are also becoming more closely-knit and expanding their reach. For example, there has always been a strong financial market connecting London and New York. - intensified trading network between London and New York may expand and stretch to cover more and more cities. After China committed itself to the global economy in the 1980‟s, for example, Shanghai steadily returned to its old role as a major trading post. ***Steger*** - "globalization processes do not occur merely at an objective, material level but they also involve the subjective plane of human consciousness.6 In other works, people begin to feel that the world has become a smaller place and distance has collapsed from thousands of miles to just a mouse-click away. - differentiated globalization, globality and globalism - globalization is a process, globality signifies a future social condition characterized by thick economic, political and cultural interconnections and global flows that make currently existing political borders and economic barriers irrelevant. On the other hand, globalism means globalization as an ideology reflecting shared ideas, norms, values accepted as truth. He adds that there are three kinds of globalism namely: - Market globalism advocates promise a consumerist, neoliberal, free-market world. This ideology is held by many powerful individuals, who claim it transmits democracy and benefits everyone. However, it also reinforces inequality, and can be politically motivated. - Justice globalism envisages a global civil society with fairer relationships and environmental safeguards. They disagree with market globalists who view neoliberalism as the only way - Religious globalism strives for a global religious community with superiority over secular structures. ***Globalization from the Ground Up*** - globalization is dispersed and transitory, making it difficult to judge or comment on - Some researchers avoid discussing globalization in its entirety. Instead, they want to discuss \"multiple globalizations.\" ***Arjun Appadurai*** - an anthropologist believed that different kinds of globalization occur on multiple and intersecting dimensions of integration that he calls "scapes." ***Enthnoscape*** - refers to the global movement of people ***mediascape*** - is about the flow of culture ***technoscape*** - circulation of mechanical goods and software ***finanscape*** - denotes the global circulation of money ***ideoscape*** - the realm where political ideas move around ***Appuradai‟s argument is simple:*** - there are multiple globalizations - Depending on what is being globalized, a different dynamic (or dynamics) may emerge. ***The term globalization*** - defined in many ways and in various aspects, but one thing that makes them all similar in concept is the idea of being connected with one another closer and faster than ever before. ***Christine Lagarde*** - former President of the International Monetary Fund (IMF) - "debates about trade and access to foreign goods are as old as society itself " - history tells us that closing borders or protectionism policies are not the way to go, as many countries doing it have failed - defends we should pursue globalization policies that extend the benefits of openness and integration while alleviating their side effects. ***Globalization*** - deeply connected with economic systems and markets, which, on their turn, impact and are impacted by social issues, cultural factors that are hard to overcome, regional specificities, timings of action and collaborative networks. **Lesson 2: Origins and History of Globalization** ***A Brief History of Globalization*** **Chinese e-commerce** - giant Alibaba in 2018 - chosen the ancient city of Xi‟an - symbolic value wasn‟t lost on the company: - brought globalization to its ancient birthplace - the start of the old Silk Road - It named its new offices aptly: "Silk Road Headquarters" - The city where globalization had started more than 2,000 years ago would also have a stake in globalization‟s future. ***Alibaba*** - shouldn‟t be alone in looking back. As we are entering a new, digital-driven era of globalization -- we call it "Globalization 4.0" ***Silk roads*** - (1st century BC-5th century AD, and 13th-14th centuries AD) - People have been trading goods for almost as long as they‟ve been around. - 1st century BC, a remarkable phenomenon occurred - first time in history, luxury products from China started to appear on the other edge of the Eurasian continent -- in Rome. - They got there after being hauled for thousands of miles along the Silk Road. - Trade had stopped being a local or regional affair and started to become global. - Silk was mostly a luxury good, and so were the spices that were added to the intercontinental trade between Asia and Europe. - percentage of the total economy - value of these exports was tiny, and many middlemen were involved to get the goods to their destination - But global trade links were established, and for those involved, it was a goldmine - The Silk Road could prosper in part because two great empires dominated much of the route. - blockades by local enemies of Rome or China. - If the Silk Road eventually closed, as it did after several centuries, the fall of the empires had everything to do with it. ***Marco Polo‟s late medieval time*** - because the rise of a new hegemonic empire: the Mongols. - a pattern we‟ll see throughout the history of trade: it thrives when nations protect it, it falls when they don‟t. ***Spice routes (7th-15th centuries)*** - next chapter in trade happened thanks to Islamic merchants. - As the new religion spread in all directions from its Arabian heartland in the 7th century, so did trade. ***The founder of Islam*** - prophet Mohammed, was famously a merchant, as was his wife Khadija - Trade was thus in the DNA of the new religion and its followers, and that showed. By the early 9th century, Muslim traders already dominated Mediterranean and Indian Ocean trade; afterwards, they could be found as far east as Indonesia, which over time became a Muslim-majority country, and as far west as Moorish Spain - The main focus of Islamic trade in those Middle Ages were spices. Unlike silk, spices were traded mainly by sea since ancient times. - the medieval era they had become the true focus of international trade - Chief among them were the cloves, nutmeg and mace from the fabled Spice islands -- the Maluku islands in Indonesia. They were extremely expensive and in high demand, also in Europe. But as with silk, they remained a luxury product, and trade remained relatively low volume. Globalization still didn‟t take off, but the original Belt (sea route) and Road (Silk Road) of trade between East and West did now exist ***Age of Discovery (15th-18th centuries)*** - Truly global trade kicked off in the Age of Discovery - it was in this era, from the end of the 15th century onwards, that European explorers connected East and West -- and accidentally discovered the Americas. - Aided by the discoveries of the so-called "Scientific Revolution" in the fields of astronomy, mechanics, physics and shipping, the Portuguese, Spanish and later the Dutch and the English first "discovered", then subjugated, and finally integrated new lands in their economies. - The most (in)famous "discovery" is that of America by Columbus, which all but ended pre-Colombian civilizations. - But the most consequential exploration was the circumnavigation by Magellan: it opened the door to the Spice islands, cutting out Arab and Italian middlemen. While trade once again remained small compared to total GDP, it certainly altered people‟s lives. Potatoes, tomatoes, coffee and chocolate were introduced in Europe, and the price of spices fell steeply. - Trade certainly started to become global - The European empires set up global supply chains, but mostly with those colonies they owned. - their colonial model was chiefly one of exploitation, including the shameful legacy of the slave trade - The empires thus created both a mercantilist and a colonial economy, but not a truly globalized one ***First wave of globalization (19th century-1914)*** - started to change with the first wave of globalization, - roughly occurred over the century ending in 1914. - By the end of the 18th century, Great Britain had started to dominate the world both geographically, through the establishment of the British Empire, and technologically, with innovations like the steam engine, the industrial weaving machine and more. It was the era of the First Industrial Revolution. ***The "British" Industrial Revolution*** - made for a fantastic twin engine of global trade. - steamships and trains could transport goods over thousands of miles, both within countries and across countries. - industrialization allowed Britain to make products that were in demand all over the world, like iron, textiles and manufactured goods. With its advanced industrial technologies," the BBC recently wrote, looking back to the era, "Britain was able to attack a huge and rapidly expanding international market." - trade grew on average 3% per year. - growth rate propelled exports from a share of 6% of global GDP in the early 19th century, to 14% on the eve of World War I. ***Maynard Keynes*** - the economist - "The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole Earth, in such quantity as he might see fit, and reasonably expect their early delivery upon his doorstep." - Keynes also noted, a similar situation was also true in the world of investing. with the means in New York, Paris, London or Berlin could also invest in internationally active joint stock companies. One of those, the French Compagnie de Suez, constructed the Suez Canal, connecting the Mediterranean with the Indian Ocean and opened yet another artery of world trade. Others built railways in India, or managed mines in African colonies. Foreign direct investment, too, was globalizing. - Britain was the country that benefited most from this globalization, as it had the most capital and technology, - The invention of the refrigerated cargo ship or "reefer ship" in the 1870s, for example, allowed for countries like Argentina and Uruguay, to enter their golden age. - the first wave of globalization and industrialization also coincided with darker events, - By the end of the 19th century, the Khan Academy notes, "most \[globalizing and industrialized\] European nations grabbed for a piece of Africa, and by 1900 the only independent country left on the continent was Ethiopia". - negative vein, large countries like India, China, Mexico or Japan, which were previously powers to reckon with, were not either not able or not allowed to adapt to the industrial and global trends. Either the Western powers put restraints on their independent development, or they were otherwise outcompeted because of their lack of access to capital or technology. Finally, many workers in the industrialized nations also did not benefit from globalization, their work commoditized by industrial machinery, or their output undercut by foreign import ***The world wars*** - a situation that was bound to end in a major crisis, and it did. In 1914, the outbreak of World War I brought an end to just about everything the burgeoning high society of the West had gotten so used to, including globalization. The ravage was complete. Millions of soldiers died in battle, millions of civilians died as collateral damage, war replaced trade, destruction replaced construction, and countries closed their borders yet again. - In the years between the world wars, the financial markets, which were still connected in a global web, caused a further breakdown of the global economy and its links. The Great Depression in the US led to the end of the boom in South America, and a run on the banks in many other parts of the world. Another world war followed in 1939-1945. By the end of World War II, trade as a percentage of world GDP had fallen to 5% -- a level not seen in more than a hundred years. ***Second and third wave of globalization*** - The end of the World War II marked a new beginning for the global economy. Under the leadership of a new hegemon, the United States of America, and aided by the technologies of the Second Industrial Revolution, like the car and the plane, global trade started to rise once again. At first, this happened in two separate tracks, as the Iron Curtain divided the world into two spheres of influence. But as of 1989, when the Iron Curtain fell, globalization became a truly global phenomenon. - In the early decades after World War II, institutions like the European Union, and other free trade vehicles championed by the US were responsible for much of the increase in international trade. In the Soviet Union, there was a similar increase in trade, albeit through centralized planning rather than the free market. The effect was profound. Worldwide, trade once again rose to 1914 levels: in 1989, export once again counted for 14% of global GDP. It was paired with a steep rise in middle-class incomes in the West. - Then, when the wall dividing East and West fell in Germany, and the Soviet Union collapsed, globalization became an all-conquering force. The newly created World Trade Organization (WTO) encouraged nations all over the world to enter into free-trade agreements, and most of them did, including many newly independent ones. In 2001, even China, which for the better part of the 20th century had been a secluded, agrarian economy, became a member of the WTO, and started to manufacture for the world. In this "new" world, the US set the tone and led the way, but many others benefited in their slipstream. - At the same time, a new technology from the Third Industrial Revolution, the internet, connected people all over the world in an even more direct way. The orders Keynes could place by phone in 1914 could now be placed over the internet. Instead of having them delivered in a few weeks, they would arrive at one‟s doorstep in a few days. What was more, the internet also allowed for a further global integration of value chains. You could do R&D in one country, sourcing in others, production in yet another, and distribution all over the world. - The result has been a globalization on steroids. In the 2000s, global exports reached a milestone, as they rose to about a quarter of global GDP. Trade, the sum of imports and exports, consequentially grew to about half of world GDP. In some countries, like Singapore, Belgium, or others, trade is worth much more than 100% of GDP. A majority of global population has benefited from this: more people than ever before belong to the global middle class, and hundred of millions achieved that status by participating in the global economy. ***Globalization 4.0*** - by two global powers, the US and China, the new frontier of globalization is the cyber world. - The digital economy, in its infancy during the third wave of globalization, is now becoming a force to reckon with through e-commerce, digital services, 3D printing. It is further enabled by artificial intelligence, but threatened by cross-border hacking and cyber-attacks. - a negative globalization is expanding too, through the global effect of climate change. Pollution in one part of the world leads to extreme weather events in another. And the cutting of forests in the few "green lungs" the world has left, like the Amazon rainforest, has a further devastating effect on not just the world‟s biodiversity, but its capacity to cope with hazardous greenhouse gas emissions. - In the West particularly, many middle-class workers are fed up with a political and economic system that resulted in economic inequality, social instability, and -- in some countries -- mass immigration, even if it also led to economic growth and cheaper products. Protectionism, trade wars and immigration stops are once again the order of the day in many countries. - As a percentage of GDP, global exports have stalled and even started to go in reverse slightly. As a political ideology, "globalism", or the idea that one should take a global perspective, is on the wane. And internationally, the power that propelled the world to its highest level of globalization ever, the United States, is backing away from its role as policeman and trade champion of the world - Chinese president Xi Jinping addressed the topic globalization in a speech in Davos in January 2017. "Some blame economic globalization for the chaos in the world," he said. "It has now become the Pandora‟s box in the eyes of many." But, he continued, "we came to the conclusion that integration into the global economy is a historical trend. \[It\] is the big ocean that you cannot escape from." He went on the propose a more inclusive globalization, and to rally nations to join in China‟s new project for international trade, "Belt and Road". - It was in this world, too, that Alibaba a few months later opened its Silk Road headquarters in Xi‟an. It was meant as the logistical backbone for the e-commerce giant along the new "Belt and Road", the Paper reported. But if the old Silk Road thrived on the exports of luxurious silk by camel and donkey, the new Alibaba Xi‟an facility would be enabling a globalization of an entirely different kind. It would double up as a big data college for its Alibaba Cloud services. Technological progress, like globalization, is something you can‟t run away from, it seems. But it is ever changing. So how will Globalization 4.0 evolve? We will have to answer that question in the coming years. **Lesson 3: The Global Divides, Economy, and Interstate System** ***The International Monetary Fund (IMF)*** - regards "economic globalization‟ as a historical process representing the result of human innovation and technological progress. It is characterized by the increasing integration of economies around the world through the movement of goods, services, and capital across borders. ***United Nations*** - defines economic globalization as the "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. - The rapidly growing significance of information in all types of productive activities and marketization are the two major driving forces for economic globalization." ***Dennis O. Flynn and Arturo Giraldez*** - global trade emerged when all heavily populated continents began to exchange products continuously - both with each other directly and indirectly via other continents - and did so in values sufficient to generate lasting impacts on a trading partner ***The Manila galleon trade*** - or commonly known as galleon trade is the first global trade to date. It is through this trade that the American continent was directly connected to Asian trading routes which conduit for the exchange of goods, people, and ideas between the East and the West - Given the complexity of the dynamic of global trade, conflicts between the trading countries may rise from time to time due to political and economic differences. One of the factors why countries in the past are at war and suffered economic downfall is due to unsettled trade conflicts as countries struggles to keep their track in the global trading. Economy of mostly all countries around the globe are intertwined since the start of economic globalization, this leads to the interdependent of each market. With this nature, if there exist discord even between two countries or is one country with bad economic condition could bring large impact to the global economy. - Before delving deeper to the different roles of these global actors, it is important to note that these are the institutions and agencies acting at the global level who contributes to the processes of globalization especially in global politics (Madsel & Christensen, 2016) ***United Nations*** - a diplomatic and political international organization with the intended purpose of maintaining international peace and security, develop friendly relations among nations, achieve international cooperation, and serve as a center for coordinating the actions of member nations. At its founding, the UN had 51 member states; as of 2024, it has 193 sovereign states, nearly all of the world\'s recognized sovereign states. ***Specialized Agencies*** ***1. International Labor Organization*** is a United Nations agency dealing with labor problems, particularly international labor standards, social protection, and work opportunities for all. ***2. Food and Agriculture Organization of the United Nations (FAO)*** a\. A specialized agency of the United Nations that leads international efforts to defeat hunger b\. Help eliminate hunger, food insecurity and malnutrition c\. Reduce Rural Poverty d\. Make agriculture, forestry, and fisheries more productive and sustainable e\. Enable inclusive and efficient agricultural and food systems f\. Increase the resilience of livelihoods to threats and crises ***3. United Nations Educational, Scientific and Cultural Organization*** a\. Contribute to peace and security by promoting international collaboration through educational, scientific, and cultural reforms to increase universal respect for justice, the rule of law, and human rights along with fundamental freedom. b\. Contribute to building peace ***4. World Health Organization*** a\. Building a better, healthier future for people all over the world b\. Concern about public health c\. The prime concern is to eradicate and combat dangerous diseases like AIDS/HIV d\. Make researches in medicines and vaccines to eliminate diseases and development of nutritious foods e. Responsible for World Health Report and Survey ***Other Specialized International Institutions*** **1. International Civil Aviation Organization (ICAO)** to foster the planning and development of international air transport to ensure the safe and orderly growth of international civil aviation throughout the world **2. International Maritime Organization (IMO)** responsibility for the safety and security of shipping and the prevention of marine pollution by ships 3.**International Telecommunication Union (ITU)** a\. Connecting all the world\'s people b\. Global radio spectrum and satellite orbits, develop the technical standards that ensure networks and technologies seamlessly interconnect and strive to improve access to ICTs to underserved communities worldwide 4\. **Universal Postal Union (UPU)** a.Ensure a truly universal network of up-to-date products and services b.Sets the rules for international mail exchanges and makes recommendations to stimulate growth in mail, parcel and financial services volumes and improve quality of service for customers 5\. **World Meteorological Organization (WMO)** a.A specialized agency of the United Nations for meteorology (weather and climate), operational hydrology and related geophysical sciences b.The UN system\'s authoritative voice on the state and behavior of the Earth\'s atmosphere, its interaction with the oceans, the climate it produces and the resulting distribution of water resources. 6\. **World Intellectual Property Organization (WIPO)** a.Intellectual property (IP) refers to creations of the mind, such as inventions, literary and artistic works, designs, and symbols, names, and images used in commerce, e.g. patents, copyright, and trademarks b.Lead the development of a balanced and effective international intellectual property (IP) system that enables innovation and creativity for the benefit of all 7\. **International Fund for Agricultural Development (IFAD)** a.Invest in rural people, empowering them to increase their food security, improve the nutrition of their families and increase their incomes b.Building resilience, expand their businesses and take charge of their development 8\. **United Nations Industrial Development Organization (UNIDO)** a\. The specialized agency of the United Nations that promotes industrial development for poverty reduction, inclusive globalization, and environmental sustainability 9\. **World Tourism Organization (UNWTO)** a\. Responsible for the promotion of responsible, sustainable, and universally accessible tourism b.Leading international organization in the field of tourism, which promotes tourism as driver of economic growth, inclusive development, and environmental sustainability and offers leadership and support to the sector in advancing knowledge and tourism policies worldwide. ***OTHER GLOBAL ACTORS*** ***Multinational Corporation (MNC)*** - 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. - It is a business organization whose activities are located in more than two countries and is the organizational firm that defines foreign direct investment. - branches or subsidiaries in foreign countries (A.A Lazarus, 2001 p10197). ***The International Monetary Fund (IMF)***  - founded at the Bretton Woods Conference 1944, is the official organization for securing international monetary cooperation. ***North Atlantic Treaty Organization (NATO)*** - 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 7 all. It is headquartered in Brussels, Belgium - The organization was formed in 1949 - Many countries joined NATO \-- even Iceland which is 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. ***Global Financial Institutions Associated with World Trade*** - The World Trade Organization, the International Monetary Fund, and the World Bank are the three institutions that underwrite the basic rules and regulations of economic, monetary, and trade relations between countries. Many developing nations have loosened trade rules under pressure from the IMF and the World Bank. ***World Trade Organization (WTO)*** - It is the only global international organization dealing with the rules of trade between nations. - The goal is to ensure that trade flows as smoothly, predictably and freely as possible. ***World Bank*** - It is a financial institution that extends financial assistance through loans to countries interested. It was founded by the United Nations Monetary and Financial Conference or the Bretton Woods Conference. ***World Bank Group*** - International Bank Reconstruction and Development (IBRD) 1s an international financial institution that offers loan to middle-income countries willing to improve their economy 1.International Development Association (IDA) its primary purpose is to provide loans to developing countries to reduce inequalities and improve people\'s conditions and the country\'s economic growth. 2\. International Finance Corporation (IFC) providing loans for private sectors in developing countries to create markets that open up opportunities for all 3\. Multilateral Investment Guarantee Agency (MIGA) promotes foreign direct investment (FDI) into developing countries to help support economic growth, reduce poverty, and improve people\'s lives 4\. International Centre for Settlement of Investment Disputes (ICSID) is an international organization of investors for investment treaties and laws and contracts. 5\. The International Monetary Fund (IMF) is an organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. Its primary purpose is to ensure the stability of the international monetary system---the system of exchange rates and international payments that enables countries (and their citizens) to transact with each other. \- lending to countries with balance of payments difficulties, and giving practical help to members. ***The Organization for Economic Cooperation and Development (OECD), the Organization of Petroleum Exporting Countries (OPEC), and the European Union (EU)*** - most encompassing club of the richest countries in the world is the Organization for Economic Cooperation and Development (OECD) with 35 member states as of 2016, with Latvia as its latest member. It is highly influential, despite the group having little formal power. This emanates from the member countries‟ resources and economic power. In 1960, the Organization of Petroleum Exporting Countries (OPEC) was originally comprised of Saudi Arabia, lraq, Kuwait, Iran, and Venezuela. They are still part of the major exporters of oil in the world today. OPEC was formed because member countries wanted to increase the price of oil, which in the past had a relatively low price and had failed to keep up with inflation. Today, the United Arab Emirates, Algeria, Libya, Qatar, Nigeria, and Indonesia are also included as members. ***European Union (EU)*** - made up of 28 member states. Most members in the Eurozone adopted the euro as basic currency but some Western European nations like the Great Britain, Sweden, and Denmark did not ***North American Free Trade Agreement (NAFTA) now United States-Mexico-Canada Agreement (USMCA)*** - The North American Free Trade Agreement (NAFTA) is a trade pact between the United States, Mexico, and Canada created on January 1, 1994, when Mexico joined the two other nations. It was first created in 1989 with only Canada and the United States as trading partners, but it was replaced by USMCA on July 1, 2020. - the so-called global actors have significantly contributed to the economic globalization we are currently witnessing. ***macro level*** - which includes the international organizations and regimes that establish rules and norms for the global community. The World Bank, the International Monetary Fund, the World Trade Organization, and the International Labor Organization are the existing international organizations that make impact to the economy of the world. The regional integration schemes like the European Union and the North American Free Trade Agreement are also part of these organizations. Since these regimes blend both the rules and resources, they substantiate the widest parameters within which the global economy operates. ***meso level*** - which it is believed that the building blocks for the global economy are the countries and firms. The global economy is seen as the arena in which countries compete in different product markets. ***micro level*** - conceptualized as a system that shapes the behavior and motivation of actors inside it, or as an arena where nationally determined actors meet, interact, and influence each other." ***Modern World System (MWS)*** - developed by Immanuel Wallerstein. It describes the economic interactions between core, semi-peripheral, and peripheral countries in the world. - The **core countries** exert control and exploit those on the periphery, with capital flowing mainly from core countries to peripheral countries. In essence, this theory proposes that wealthier countries benefit from and exploit the citizens of other countries - Thus, the economic globalization and market integration of the 21st century are extensions of the same economic motives of imperial powers of the nineteenth and twentieth centuries (Balaamand Veseth, 2008). ***State*** - has been the traditional subject of global politics. It is viewed as the institution that creates warfare and sets economic policies for a country. Moreover, it is a political unit that has authority over its own affairs, and most of the time we refer to them as countries‟ in layman's term. When we talk about state, it must always consist of the four elements such as fixed territory, people, government and sovereignty. ***Treaty of Westphalia on 1648*** - where the notion of nation-state and idea of state sovereignty has started. ***The following are suggested "replacements" for nation-states:*** 1\. regional alliances and worldwide organizations 2\. regional and international economic bonds 3. private capital groups 4\. non-state organizations ***Interstate System*** - The origins of the present-day concept of Sovereignty can be traced back to the Treaty of Westphalia, - set of agreements signed in 1648 to end the thirty years‟ war between the major continental powers of Europe. ***The Westphalian system*** - provided stability for the nations of Europe, until it faced its major challenge by Napoleon Bonaparte. ***French Revolution*** - liberty, equality, and fraternity to the rest of Europe. Despite the challenge of Napoleon to the Westphalian system and the eventual collapse of the Concert of Europe after World War I, the present-day international system has traces of this history. ***interstate system or world-systems perspective*** - modernity claims that this high degree of interdependence is not a recent phenomenon and that an important dimension of the global system has been, and continues to be, its stratification structure that is organized as a core/periphery hierarchy in which some national societies have far more power and wealth than others. ***world-systems perspective*** - emerged during the world revolution of 1968 and the anti-war movement that produced a generation of scholars who saw the peoples of Global South (then called the "Third World") as more than an underdeveloped countries. - a global power structure existed and that the peoples of the non-core had been active participants in their own liberation. The history of colonialism and decolonization were seen to have importantly shaped the structures and institutions of the whole global system. ***Effects of Globalization on Governments*** - One of the key aspects of state sovereignty is the government. It is a group of people who have the ultimate authority to act on behalf of a state**.** - **First,** globalization is seen to impose a forced choice upon nation-states. Either they conform to the neo-liberal ideas and free-market principles of deregulation, privatization, and free trade or run the risk of being left behind in terms of development. - **Second** is the establishment of economic and political integrations. One good example is the European Union (EU) and the North America Free Trade Agreement (NAFTA).EU has a single currency and monetary system, a parliament with legislative powers, with common citizens‟ rights to live, work, vote, and run for office. The statehood of the members is not dissolved, what has changed is only how the nation-states function, in terms of economy and politics, as part of a whole. - **The third** effect of globalization is the establishment of international laws and principles. This is observable in the establishment of the UN which operates as a forum for nation-states to air their differences and try to resolve them. - **The fourth** effect is the rise of transnational activism (TNA). Such happens when activist groups of nation-states connect with their counterparts in other states. For example, an advocacy-based organization in the Philippines may connect itself with and get support from other human rights groups in Europe to pressure the Philippine government to realign its stance and actions in upholding human rights. ***Institutions that Govern International Relations*** - Several countries and individuals collaborate in international organizations. Intergovernmental organizations (IGOs) were set up to make it easier for countries to work together. Their goal is to build strong relationships between governments in the areas of economics, politics, culture, education, and technology. Some groups don\'t work for the government that work for social and economic growth. Let\'s take a look at each of them. **Peace Treaties and Military Alliances: The UN and NATO** - Global politics entails the relationship of countries and different governments and non-governmental organizations, The United Nations (UN) is one of the leading political organizations in the world where nation-states meet and deliberate.