THE CONTEMPORARY WORLD

REVIEWER 1

• refers to the expanding and intensifying interconnectedness and interdependence of the world’s economies, cultures, populations, institutions, and political systems. These connections are produced by trade, investment, finance, migration, transportation, media, technology, and information. Globalization widens relationships across space, deepens mutual dependence, and accelerates the movement of opportunities, ideas, and crises.

GLOBALIZATION

• The presence of links among people, places, institutions, and systems.

INTERCONNECTEDNESS

• Mutual reliance in which decisions or disruptions affecting one actor influence others.

INTERDEPENDENCE

• Movements of goods, services, money, people, data, technology, media, and ideas.

FLOWS

• Relationships connecting governments, firms, institutions, communities, and individuals.

NETWORK

• Faster transport and communication reduce the practical importance of distance.

TIME-SPACE COMPRESSION

• Activities such as remote work, digital finance, and global media are less tied to one territory.

DETERRITORIALIZATION

• Previously separate systems become connected and coordinated.

INTEGRATION

Opportunities, risks, voice, and benefits are distributed unequally.

UNEVENNESS

• Continuing changes that expand cross-border flows and connections.

GLOBALIZATION AS A PROCESS

• A situation in which distant places are closely linked and mutually affected.

GLOBALIZATION AS A CONDITION

• Policies and institutions that promote liberalization, integration, or cooperation.

GLOBALIZATION AS A PROJECT

• Beliefs about how global society and markets should be organized.

GLOBALIZATION AS AN IDEOLOGY

• A connection whose benefits, costs, mobility, and influence are distributed unequally.

GLOBALIZATION AS UNEVEN PHENOMENON

• Is the increasing integration of national economies through trade, investment, finance, production, technology, data, and labor mobility.

ECONOMIC GLOBALIZATION

• Is the interconnected system created by these relationships. A product may be designed in one country, financed in another, assembled from components produced in several others, and sold through a digital platform to customers worldwide.

GLOBAL ECONOMY

• Exchange with relatively few government-imposed barriers.

FREE TRADE

• A tax on imports.

TARIFF

• A limit on the quantity of an imported product.

QUOTA

• Government support that lowers costs or raises income for selected producers.

SUBSIDY

Policies that restrict imports or support domestic producers to protect jobs, strategic sectors, food security, or emerging industries.

PROTECTIONISM

• Long-term cross-border investment involving productive assets or managerial control.

FOREIGN DIRECT INVESTMENT

• Purchase of foreign stocks, bonds, or financial assets without direct control.

PORTFOLIO INVESTMENT

• Conversion and trading of one currency for another.

FOREIGN EXCHANGE

Money sent by migrants to households or communities in their home country.

REMITTANCES

The spread of financial stress across connected markets and institutions.

FINANCIAL CONTAGION

• Economic activity based on the internet, data, software, platforms, e-commerce, digital payments, remote services, and digital goods.

DIGITAL ECONOMY

• The modern world-system perspective, associated with Immanuel Wallerstein, views the world economy as a single capitalist system structured by an international division of labor. It highlights unequal power and exchange among zones. The categories are analytical, not permanent labels, and countries may contain core-like and peripheral sectors at the same time.

THE MODERN WORLD-SYSTEM

• Wealthier, industrialized, technologically advanced economies with strong institutions and high-value production.

Ex. UNITED STATES, EUROPEAN UNION,

JAPAN, SOUTH KOREA

CORE

• INTERMEDIATE ECONOMIES WITH INDUSTRIAL CAPACITY IN SOME SECTORS AND DEPENDENCY IN OTHERS.

Ex. CHINA, BRAZIL, INDIA, MEXICO, INDONESIA

SEMI-PERIPHERY

• ECONOMIES OFTEN DEPENDENT ON RAW-MATERIAL EXPORTS, LOW-WAGE LABOR, OR EXTERNAL FINANCE, WITH LOWER BARGAINING POWER.

Ex. Democratic Republic of the Congo, Ethiopia, Haiti, Bangladesh, Afghanistan

PERIPHERY

• A multinational corporation operates in several countries while retaining a recognizable home- country headquarters and central management. A transnational corporation also operates across borders but tends to use more decentralized networks that are less tied to one national center

GLOBAL CORPORATIONS: ATTRIBUTES AND IMPACTS

Global governance is the collection of rules, institutions, norms, agreements, networks, and decision-making processes used to address issues that cross borders. It is not a world government. No single authority possesses complete power over all states. Governance instead emerges from negotiation and contestation among states, international organizations, regional bodies, courts, corporations, experts, civil society, and communities.

CONTEMPORARY GLOBAL GOVERNANCE

• States bargain, vote, and makecommitments in international forums.

REPRESENTATION AND NEGOTIATION

• Governments negotiate treaties and adopt international standards.

RULE-MAKING

• Commitments become meaningful when translated into laws, budgets, agencies, and enforcement.

DOMESTIC IMPLEMENTATION

• States fund institutions, contribute to programs, provide aid, and supply experts or peacekeepers.

FINANCING AND PERSONNEL

• Governments remain responsible for rights, security, health, education, social protection, and disaster response.

PROTECTION AND WELFARE

• Citizens can hold national institutions responsible through constitutions, courts, elections, media, and participation.

ACCOUNTABILITY

• States link local needs with regional and global decision-making.

COORDINATION

• The state remains central because it possesses legal authority, taxation power, public institutions, territorial responsibility, and implementation capacity. Global institutions rarely operate effectively inside societies without national cooperation. During crises, citizens continue to rely on governments for protection, regulation, public services, and accountability. The strongest conclusion is not that the state is disappearing, but that capable states must cooperate beyond their borders while remaining democratically accountable at home

RELEVANCE OF THE STATE AMID GLOBALIZATION