GLOBALIZATION

SOC STUD 10- LESSON 1 2ND QTR

Globalization

Interdependence of the global economy in which people have more liberty to trade and enjoy basic needs and wants under the comfort of free trade

Globalization 1.0

• lasted from 1492 to 1800

• known as the age of mercantilism and colonialism

• the driving forces were workforce, horsepower, wind power, and steam power

Mercantilism

A popular economic philosophy in the 17th and 18th centuries. The British colonies were the moneymakers and put limits on what goods the colonies could produce, whose ships they could use, and most importantly, with whom they could trade.

Christopher Columbus

• An Italian explorer whose voyages across the Atlantic Ocean, beginning in 1492.

• Started the exploration of the New World

Globalization 2.0

The age of Pax (peace) Britannica when Great Britain was the dominating power in terms of trade and economy. The driving force was new institutions, particularly the emergence of global markets and multinational corporations

Industry 1.0 (Steam)

1784

Industry 2.0 (Electricity)

1870

Industry 3.0 (Computing)

1969

Industry 4.0 (Intelligence)

Present day

Economic dimension of globalization

• Most states enter into free trade agreements to reduce and eliminate barriers to trade across international borders.

• The realization of a global common market, based on the freedom of goods and capital.

Financial dimension of globalization

• The rise of a global financial system with international exchanges and monetary changes.

• The emergence of under or unregulated foreign exchange and speculative markets.
  

Socio-cultural dimension of globalization

The blending of cultures where countries adopt ideas, beliefs, and customs from each other, leading to influence and interaction between different societies.

Technological dimension of globalization

The advancements in technology that facilitate global communication, trade, and interaction. It includes the rise of the internet, information technologies, and innovations that connect people and businesses worldwide.

Ecological dimension of globalization

Internationally coordinated practices and regulations regarding environmental protection. This include population growth, food security, poverty, etc.

World Trade Organization (WTO)

• January 1, 1995 in Geneva Switzerland

• A permanent institution that regulates trade between nations and cooperates with other international organizations

General Agreement on Tariffs and Trade (GATT)

Less powerful than WTO, its dispute settlement system was slower and not automatic

International Labour Organization (ILO)

• 1919 in Geneva, Switzerland

• Creates coordinated policies and programs directed at solving social and labor issues.

International Monetary Fund (IMF)

International monetary cooperation promotes exchange rate stability helps deal with balance of payment adjustments assists countries facing economic crises by providing international coordination.

World Bank Group

• Provides various technical services to the member countries

• Grants loans to a member country for up to 20% of its share in the paid-up capital

• determines the quantities of loans, interest rates, and terms and conditions

Globalization 3.0

Occurred during the second half of the 20th century, refers to the age of Pax Americana when the United States of America was the hegemonic power in terms of security, trade, and economy.