Globalization Chapter 1 PDF

o Focuses primarily on trade liberalization or "free trade." I. Nature of Globalization  Formation of a Global Village...

o Focuses primarily on trade liberalization or "free trade." I. Nature of Globalization  Formation of a Global Village o Closer contact between different  Liberalization parts of the world. o Freedom for entrepreneurs to o Opportunities for personal establish industries or businesses exchange, understanding, and within their own country or abroad. friendship among global citizens.  Free Trade  Economic Globalization o Free flow of trade among nations. o Free trade and increased relations o States grant each other MFN (Most among industries worldwide. Favored Nation) status, ensuring o Erosion of national sovereignty in minimal regulations and protective the economic sphere. barriers.  Globalization of Economic Activity o Economic activities governed by both domestic and world markets. o Integration of domestic economies III. Signs of Globalization with the global market.  Liberalization of Import-Export System  Increase in international trade o Removal of restrictions on import- o Trade grows faster than the world export activities to promote a free economy. flow of goods and services across  Increase in international capital flow borders. o Includes foreign direct investments  Privatization (FDI). o Reducing state ownership in  Greater trans-border data flow production and distribution. o Utilizes technologies like the o Encourages the free flow of internet, satellites, and telephones. industrial, trade, and economic  International cultural exchange activities across borders. o Export of media such as Hollywood  Increased Collaborations and Bollywood films. o Promotes collaboration among  Globalization of terrorism entrepreneurs to foster o Terrorist activities now impact modernization, development, and multiple regions globally. technological advancement.  Spreading multiculturalism  Economic Reforms o More cultural diversity and access to o Encourages fiscal and financial it, but also reduction through reforms to support free world trade, assimilation and Westernization. free enterprise, and market forces.  Erosion of national sovereignty o Advocates for integration and o International agreements lead to democratization of global culture, organizations like WTO and OPEC. economy, and infrastructure through  Increased international travel and international investments. tourism o Easier access across borders.  Increase in immigration o Includes both legal and illegal II. Globalization Concepts immigration.  Development of global telecommunications infrastructure  Globalization o Easier global communication. o Describes changes in societies and  Development of global financial systems the global economy resulting from o Greater financial integration globally. increased trade and cultural exchange. JA.YU 1   Growth in multinational corporations' o More labor opportunities, increased control number of Filipino and foreign o Increased share of the world companies. economy. o Potential for the Philippines to  Increased role of international advance economically through organizations global trade and foreign investment. o Organizations like WTO, WIPO, and o Education is a key factor in societal IMF manage international advancement, helping Filipinos transactions. improve their quality of life.  Increase in globally applied standards  Overseas Employment o More standardization across o Due to local poverty, many Filipinos industries. seek better job opportunities abroad. IV. Anti-Globalization Views VII. Advantages of Globalization  Corporatist Agenda  Peaceful Relations o Anti-globalists argue globalization o Countries engage in trade to boost promotes corporate interests at the economies, setting aside past expense of individual freedoms. conflicts.  Debt-based Economics  Employment Generation o Globalization leads to credit-based o Companies seek labor from economies, causing unsustainable developing nations, creating job debt growth and crises. opportunities.  Education o Globalization spreads education and allows individuals to study abroad for better prospects. V. Pro-Globalization (Globalism)  Improved Product Quality o Fierce competition leads to better Views products to meet customer expectations.  Comparative Advantage  Cheaper Prices o Free trade benefits all involved by o Market competition lowers product enabling a more efficient allocation prices. of resources.  Improved Communication o Claims of lower prices, more o Information is easily accessible from employment, and better resource any part of the world, especially distribution. through the internet.  Enhanced Transportation o Faster, more reliable transportation allows global businesses to deliver products worldwide. VI. Globalization in the Philippines  Increased GDP o Globalization increases the GDP of  Philippines and WTO participating countries. o The Philippines joined WTO in 1995,  Free Trade marking its engagement in o Lower costs for goods and services globalization. due to fewer trade barriers.  Positive Impacts  Boosted Tourism o International trade and globalization foster global tourism. JA.YU 2   External Borrowing o Specialization of industries in o Countries gain access to better different countries, fostering financing through commercial international trade. borrowing and loans.  Financial Globalization o Development of global financial markets and access to international financing.  Informational Globalization VIII. Disadvantages of o Increased global information flow through the internet, TV, and other Globalization media.  Social Globalization  Health Risks o Sharing of ideas and cultural o Globalization spreads diseases, products like films, books, and TV such as HIV/AIDS, and raises food series globally. safety concerns.  Ecological Globalization  Loss of Culture o Effects of globalization on the o Increased migration causes people environment and ecosystems. to adopt foreign cultures, leading to cultural conflicts.  Uneven Wealth Distribution o The rich get richer while the poor remain impoverished.  Environmental Degradation o Industrialization contributes to pollution, resource depletion, and environmental harm.  Economic Disparity o Globalization creates disparity, particularly through structural unemployment.  Conflict and Terrorism o Globalization has increased terrorism and violence, causing economic losses.  Intense Competition o Local businesses suffer due to competition with global companies. IX. Types of Globalization  Cultural Globalization o Transmission of ideas, meanings, and values worldwide, often through the internet and media.  Economic Globalization o Interdependence of world economies through trade, capital flow, and technology.  Industrial Globalization JA.YU 3