TCW PRELIMS

International Financial Institutions

• Established to promote international economic cooperation, stability, and development.

Market integration

It refers to the unification of separate and distinct markets into a single global markets where goods and services, capital, and labor flow freely across borders.

International Monetary Fund

• 1944

• Ensures international monetary stability

• Helps countries with balance of payments problems

• Provides:

  • Financial assistance

  • Policy advice

  • Technical assistance

• Promotes exchange rate stability and market integration.

World Bank

• 1944

• Focuses on long-term economic development and poverty reduction

• Funds projects in:

  • Infrastructure

  • Education

  • Health

  • Governance

• Improves countries' competitiveness.

World Trade Organization

• 1995 (successor to GATT)

• Promotes free and fair trade

• Negotiates trade agreements

• Resolves trade disputes

• Reduces tariffs and trade barriers.

Early 1900s

Steamships and telegraphs improved international trade and communication.

WW1, Great Depression

(1914–1930s)

• Global trade declined.

• Countries adopted protectionism:

  • Tariffs

  • Import quotas

• Result: Economic instability.

Bretton Woods Conference

1944

• Created:

  • IMF

  • World Bank

• Currencies were tied to the U.S. dollar, backed by gold.

General Agreement on Tariffs and Trade

1947

• Reduced tariffs.

• Encouraged international trade.

1950-1960

• Rapid growth in global trade.

• Rise of Multinational Corporations (MNCs).

1970s

• Bretton Woods system collapsed.

• Shifted to floating exchange rates.

• Oil crises showed countries' economic interdependence.

1980-1990

• Economic liberalization

• Deregulation

• Privatization of state-owned businesses

1995

• WTO replaced GATT.

• Expanded trade rules to include:

  • Goods

  • Services

  • Intellectual property

Early Twentieth Century

Growth of regional trade groups:

• European Union (EU)

• North American Free Trade Agreement (NAFTA)

• Association of Southeast Asian Nations (ASEAN)

Scale

Arise from the ability of MNCs to spread fixed costs over a large volume of input

Scope

Arise from the ability of MNCs to leverage shared resources and capabilities across different products and markets

Innovation& Technological Leadership

ITL

• Invest heavily in Research and Development (R&D).

• Develop new products and technologies.

• Spread innovations globally.

Strategic Alliance & Partnerships

SAP

Examples:

• Joint ventures

• Licensing agreements

• Research collaborations

Benefits:

• Access new technology

• Enter new markets

• Share risks and resources

Strong Brand Recognition

SBR

Benefits:

• Customer loyalty

• Premium pricing

• Lower marketing costs

Built through:

• Consistent quality

• Effective marketing

• Adapting to local preferences

Advanced Management Practices

AMP

Use:

• Global HR management

• Financial management systems

• Information technology

Purpose: Coordinate operations across different countries efficiently.

Ohmae

Globalization means the onset of the borderless world.

Broad and inclusive type of definition

Robert Cox

Globalization is internationalizing of production, the new international division of labor, new migratory movements

More exclusive, but its application is constrained to particular definitions.

Ritzer

Globalization is a transplanetary process or a set of processes involving increasing liquidity and the growing multidirectional flows of people, objects, places, and information as well as the structures they encounter and create that are barriers to, or expedite, those flows.

about integration or fragmentation of the world; things (like products and services) can easily flow into other countries but it may also cause the rise roadblocks or limitations.

Economic Globalization

Refers to increasing interconnectedness of the world’s economies through the flow of goods, services, capital, and information across national borders.

Ex. International trade, foreign direct investment

Political Globalization

Emphasizes the increasing interdependence of governments and international organizations in addressing global issues and challenges.

Ex. International agreements, global security

Cultural Globalization

Refers to the diffusion of cultural practices, values, and products across borders.

Ex. Global media, fashion, cuisine, exchange of ideas and beliefs

Social Globalization

Increasing interconnectedness of people and communities worldwide

Ex. Movement of people, social practices

Technological Globalization

Driven by advancements in communication and information technologies

Ex. internet, mobile technology

Environmental Globalization

Focuses on the interconnectedness of environmental challenges and solutions

Ex. Climate change, natural biodiversity

Historical Process

GLBLZTN AS ….

It is an ongoing process driven by trade, exploration and movement of people. The current state of globalization is merely the latest phase.

Conceptual Framework

GLBLZTN AS ….

We use globalization to analyze our changing world; emphasizes increasing interdependence and interconnectedness of societies, economies, and cultures.

Solidity

refers to barriers that prevent or make difficult the movement of things.

Liquidity

refers to increasing ease of movement of people, things, information, and places in the contemporary world

Flow

refers to the movement of people, things, places, and information brought about by the permeability of global limitations

Zygmunt Bauman

He coined the terms solid modernity and liquid modernity as conceptual frameworks that explains the effect of globalization on our society.

Solid Modernity

A period marked by stable, traditional, and well-defined social, economic, and political structures.

• Society had rigid and traditional structures.

• Nation-state boundaries were clear and stable.

• People commonly had long-term employment with one employer.

• Cultural identities and practices were stable and homogeneous within each region.

Liquid Modernity

A period marked by flexibility, constant change, and uncertainty in a globalized world.

• Society has flexible and constantly changing structures.

• Nation-state boundaries are flexible and permeable, allowing a high flow of people, goods, and ideas, with global processes often outweighing national interests.

• Employment is flexible, including gig work and freelancing.

• People are exposed to diverse cultural influences from around the world.

Heterogenizing Tendencies

Globalization promotes diversity through the exchange of cultures, ideas, and perspectives.

• Cultures blend to create hybrid cultures.

• Technology enables knowledge sharing and collaboration.

• Social movements connect people to address global issues.

• Political ideas spread, promoting political pluralism.

Homogenizing Tendencies

Globalization promotes similarity by spreading common cultures, products, and practices.

• Western consumerism weakens local traditions.

• Multinational corporations reduce local businesses.

• English becomes the dominant global language.

• Economic inequality grows as globalization benefits a few more than others.

Economic globalization

The increasing interconnection of economies through the global flow of goods, services, capital, labor, and information.

Finance Trade Production Labor

What are the key dimensions of economic globalization?

FTPL

Multinational Companies, International Financial Institutions, NGO, State Actors

What are the drivers/actors that facilitate globalization? MINS

State Actors

National governments and regional organizations/partnerships that influence economic globalization through policies on trade and investment. They negotiate trade agreements, attract foreign investment, and may impose trade restrictions such as tariffs.

Non-Governmental Organizations and Civil Society

Advocate fair trade, environmental sustainability, and social justice. They raise awareness of the negative impacts of globalization, push for equitable and sustainable development, and help ensure its benefits are widely spread.

Immanuel Wallerstein’s World System Theory

IWWST

A theory that divides the global economy into countries based on wealth and economic roles.

• Core – Wealthy, industrialized countries. US, JPN, UK, FRNC

• Semi-periphery – Developing countries between core and periphery. Ex. Brazil, Russia, India, China

• Periphery – Poorer countries that supply raw materials and cheap labor.

global interstate system

A system of international relations mainly achieved through intergovernmental organizations, where increasing connections between nation-states continue to redefine traditional state sovereignty.

Erosion of Sovereignty

It reduces how freely a government can make decisions independently because it must consider global rules, markets, and other countries.

Sovereignty means a country's right and power to govern itself independently.

Globalization = more connections → more international rules/dependence → less freedom to decide completely alone.

Governance and Policy Challenges

Globalization challenges governments through international frameworks and global communication networks, which influence how policies are made and implemented.

Security and Cooperation

Globalization expands security concerns beyond traditional threats and encourages international cooperation through security institutions.

Internationalism

Focuses on state cooperation through multilateral action, international organizations, and treaties to address global issues and uphold international law.

→ Countries cooperate with each other.
→ Focuses on states, treaties, and international organizations.
→ “Let’s work together.”

Globalism

→ Envisions a more interconnected and integrated world where national boundaries are less significant.
→ Focuses on global interaction and the free flow of goods, people, capital, and information.
→ “Let’s become more globally connected.”

United Nations

An international organization established in 1945 to promote cooperation, manage international relations, and address global challenges.

Peace and Security

A primary function of the UN focused on preventing and resolving conflicts through peacekeeping, sanctions, and diplomacy.

UN Security Council

The UN organ responsible for international peace and security, composed of 15 members: 5 permanent and 10 non-permanent members.

United States, United Kingdom, France, Russia, and China.

Human Rights

The UN promotes and protects human rights by establishing international standards and addressing human rights abuses.

OHCHR

UN Human Rights Council

The main UN intergovernmental body responsible for promoting and protecting human rights.

The office that supports the UN's work in promoting and protecting human rights.

Consists of 47 member states, including the Philippines.

Development

The UN works to reduce poverty, improve health and education, and promote sustainable development.

UN Development Programme

(UNDP)

Leads UN efforts toward development and works with organizations such as WHO, UNICEF, and UNESCO.

Humanitarian Assistance

The UN coordinates international responses to crises caused by natural disasters, conflicts, and pandemics.

World Food Programme

WFP

Provides food assistance during humanitarian crises.

Office for the Coordination of Humanitarian Affairs

OCHA

Coordinates and mobilizes international humanitarian relief efforts.

Geopolitical Tension

Power rivalries and regional conflicts can obstruct global governance and weaken multilateral cooperation.

Economic Inequalities

Differences between wealthy and poor nations affect resources, opportunities, and the ability to address global challenges.

Technological Advancements

Rapid technological development creates challenges involving cybersecurity, data privacy, AI ethics, regulation, and international cooperation.

Sociopolitical Dynamics

Nationalism, populism, and authoritarianism can challenge multilateralism by prioritizing national interests over global cooperation.