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THE STUDY OF GLOBALIZATION

CONTEMPORARY WORLD

• Modern world

• Globalized world

• Modern age

• Present times

• Current global landscape

• means the world we live in today, including everything that is happening right now. 

• is a product of many transformations.

• is about the present time and how countries, people, and ideas are connected across the globe.

• The citizens of the current generation are inextricably linked to what is referred to as GLOBALIZATION.

WHAT IS GLOBALIZATION? 

• THE TERM ‘GLOBALIZATION’ WAS INTRODUCED BY THEODORE LEVITT

• The professor of Harvard Business School, in his article ‘The Globalization of Markets’ (Levitt 1984) and it denoted the process of formation of worldwide markets of globally standardized products, that is a phenomenon that could have hardly been imagined before. 

DEFINITION OF GLOBALIZATION

• Globalization is the process of increasing interaction and integration among people, companies, and governments worldwide.

• It refers to the interconnectedness of the world through the exchange of goods, services, information, and ideas.

• Globalization is the integration of markets, cultures, and communication systems on a global scale.

• It is the process by which the world becomes more interconnected as a result of advances in technology, communication, and trade.

• Globalization is the phenomenon of the world becoming increasingly unified through the exchange of ideas, values, and resources.

• It is the process of creating a global network where boundaries between nations are blurred.

GLOBALIZATION AS AN ECONOMIC, POLITICAL PROCESS, OR CULTURAL PROCESS

1. GLOBALIZATION AS AN ECONOMIC PROCESS

   1. Global Trade - Countries trade goods and services with one another more easily, allowing products made in one country to be sold worldwide.

   2. Investment Across Borders - Companies from one country invest in businesses or projects in another country to expand their operations globally.

   3. Job Opportunities - Globalization creates jobs in different countries, as companies outsource work or build factories in places where labor is cheaper.

   4. Flow of Money/Financial Flows - Money moves quickly across countries through international banks, stock markets, and financial investments.

   5. Global Competition - Businesses compete internationally, which can lead to better products and lower prices for consumers.

   6. Access to Technology - Countries share and adopt technologies, improving industries and making production faster and more efficient.

   7. Economic Growth - Globalization can help economies grow by opening up new markets and attracting international investments.

2. GLOBALIZATION AS POLITICAL PROCESS

   1. Proponents of this approach argue that economic perspectives on globalization cannot be discussed without looking at the underlying political processes and institutions. 

   2. Their arguments center around these two questions: 

      1. What are the political factors affecting the flows of capital, funds, and technology across territories? This means they want to understand how things like government rules, policies, and political decisions influence how money, funds, and new technologies move across borders.

      2. Do economic resource flows challenge the power of a nation-state? They are asking if the movement of money and resources between countries can take away some control or authority from a government or nation-state.

   3. Weaker Government Control -  As markets expand globally, national governments have less control over their own economies.

   4. Economic Importance - The economy is key to a country's growth, so losing control over it raises concerns for many.

   5. State Sovereignty Concerns - Supporters of political globalization worry about maintaining the power of governments to govern effectively.

   6. Kenichi Ohmae’s Perspective -Ohmae (1990, 1995, 2005) argued that we are moving towards a "borderless world." In this world, national borders won’t define the way economies or politics work—global networks will instead, based on free-market principles.

      1. Ohmae predicted that the power of nation-states would be replaced by global networks and corporations operating across borders. 

      2. Do you think global networks and corporations could replace the power of nation-states in the future? Why or why not?

3. GLOBALIZATION AS A CULTURAL PROCESS 

   1. Globalization as a Multidimensional Occurrence - Anchored in culture, according to sociologist John Tomlinson (1999). 

Defined as a "densely growing network of complex cultural interconnections and interdependencies" in modern social life.

2. Influences on Cultural Globalization - Media and industry stakeholders shape societies and identities globally. 

Technological advances make cultural formation easily transmitted, impacting everyday lives.

As globalization continues to shape our world, it brings with it a range of transnational concerns that impact cultures globally.

1. Migration - People moving across countries for work, safety, or better opportunities, creating new cultural connections and exchanges. Different cultures mix, leading to cultural diversity and changes in local traditions.

2. Global Security -  The world is interconnected, so conflicts, terrorism, and wars in one country can affect other countries. Global cooperation is needed to address security issues that impact different cultures and nations.

3. Media Influence Media - (TV, movies, social media) spreads cultural ideas, values, and trends worldwide. People around the world can share similar experiences, influencing their cultures and shaping identities globally.

4. Cybercrime - As people use the internet more, crimes like hacking or fraud happen across borders. Cybercrime can threaten the safety and cultural norms of many countries, requiring global cooperation to stop it.

5. Climate Change and Environmental Sustainability - Global environmental issues, like pollution and climate change, affect everyone, no matter where they live. People from different cultures must work together to protect the planet for future generations.

6. Gender Equality - Global discussions on gender rights and equality affect cultures worldwide. Women and men in different countries are advocating for equal rights, challenging cultural norms and pushing for change.

THE INTERNATIONAL SYSTEM

• refers to "the set of relationships among the world states structured according to certain rules and patterns of interaction" (Goldstein & Pevehouse, 2014). 

What is a state?

• is "a community of persons more or less numerous, permanently occupying a definite portion of the territory, having a government of their own to which a great body of inhabitants render habitual obedience, and is enjoying freedom from external control" (Rodee, 1976)

What are the essential de facto elements that a state must have?

1.People - A permanent population that resides within the state, forming a distinct community with shared identity and governance.

2.Territory - A defined geographical area where the state exercises authority, including land, water, and airspace.

3.Government - A functioning political and administrative system that creates and enforces laws, maintains order, and provides services to the people.

4.Sovereignty - The state's ability to govern itself independently without external interference, making and enforcing laws within its territory and engaging in international relations.

The Constitutive Theory of statehood says that, besides the four basic elements (people, territory, government, and sovereignty), a state also needs:

• Recognition by Other States – A state must be accepted as a state by other countries to fully exist in the international system. Without recognition, it may struggle to form diplomatic ties or join global organizations.

• Degree of civilizations – refers to how advanced a society is in terms of culture, technology, government, and way of life.

STATES

are considered principal actors in international relations. 

• They make decisions, create laws, and interact with other countries through diplomacy, trade, and agreements. 

• They also protect their people and work to maintain peace or security. 

•  They have power and control over their own land and government, they shape how the world works together.

Non State actors, also known as transnational actors when they operate across borders

• also known as transnational actors when they operate across borders.

• various entities such as:

  • Intergovernmental Organizations (IGOs)

  • Nongovernmental Organizations (NGOs), and 

  • Multinational corporations (MNCs), 

Intergovernmental Organizations (IGOs)

• These are groups formed by multiple countries working together for common goals, like peace, trade, or health. Examples include the United Nations (UN) and the European Union (EU).

• What is one of the primary goals of united nations? 

UNITED NATIONS TRIVIA 1

• The United Nations has a world celebration day! On which month and day is it celebrated?
  ANSWER: October 24th since 1948.
  
  

• When was the United Nations founded?
  ANSWER: It was founded in 1945, after the Second World War.
  
  

• The presidency of the United Nations General Assembly rotates among five regional groups of member states. Can you name these five groups?
  ANSWER:
  
  

  1. Asia

  2. Eastern Europe

  3. Latin America/Caribbean

  4. Western Europe

  5. Africa

• What is the United Nations best known for?
  ANSWER: The United Nations is best known for peacekeeping, peacebuilding, conflict prevention, and humanitarian assistance.
  
  

• How many nations do they work with to combat climate change?
  ANSWER: 140 nations.
  
  

Nongovernmental Organizations (NGOs)

• These are private organizations that help with social issues like education, human rights, or disaster relief.

• They are not controlled by governments.

• Examples: Red Cross, Greenpeace.

Multinational Corporations (MNCs)

• These are big companies that do business in many countries.

• They produce goods, provide services, and create jobs worldwide.

• Examples: Apple, Toyota, McDonald's.

The international system is the arena where state and non- state actors relate to each other (Almond & Powell, 1988).

• The international system is like a big stage where countries, organizations, and businesses interact. Governments make agreements, trade goods, and solve problems together. 

• Nonstate actors, like charities and big companies, also play a role by helping people, influencing policies, or doing business across countries.

Political System

• Defined as a set of institutions and agencies concerned with formulating and implementing the collective goals of society.

• The system exists in both domestic and international environments, which shape and influence each other.

• It receives inputs of demands and support from its environment and attempts to shape them through its output.

Almond and Powell's (1988) Functions of the Political System: Definition of Terms

1. Political Socialization

   • Attitudes toward the political system must be formed and sustained.

2. Political Recruitment

   • People must be recruited to fill political roles, from voters to government leaders.

3. Political Communication

   • Politically relevant information must be transmitted.

4. Interest Articulation

   • Demands for particular policies must be expressed.

5. Interest Aggregation

   • Demands must be selected and combined into a manageable number of major alternatives.

6. Policy Making

   • Demands must be converted into authoritative decisions and policies.

7. Policy Implementation

   • These decisions must be put into effect.

International Relations: One Key Concern – The Collective Goods Problem

Collective goods problem

• happens when something benefits everyone, but people don’t want to help or pay for it. Since they can still enjoy it without contributing, they choose not to, which can cause problems.

• is a problem of shared interests versus conflicting interests among members of a group and of how to provide something that benefits all members of a group regardless of what each contributes. 

= happens when a group has something that benefits everyone, but members have different interests. Some may want to help, while others prefer to do nothing but still enjoy the benefits.

Collective Goods Problem: CLIMATE CHANGE

• Everyone benefits from a stable climate, but some countries and companies don’t want to reduce pollution because it might hurt their economy. 

WHAT ARE THE WAY TO SOLVING COLLECTIVE GOODS PROBLEM? 

The collective goods problem can be addressed by applying three basic principles of international relations (Goldstein and Pevehouse, 2014). 

AWARENESS, CHOICE, AND RESPONSIBILITY (ACR) APPROACH

ACR Approach to Understanding the World Around Us 

AWARENESS - This is the state of "having or showing realization, perception, or knowledge: Some of its synonyms are consciousness, cognizance, and mindfulness. 

EXAMPLE:  Students demonstrate an open and positive attitude toward learning about other cultures and the global interconnectedness that influences their lives. They appreciate diversity and are eager to engage with global issues.

CHOICE - This is the act or power of choosing. Its synonyms include selection and option.

EXAMPLE: A student believes that supporting local businesses is important, even though globalization offers cheaper products from other countries.

RESPONSIBILITY - This is "the quality or state of being responsible.  It pertains either to moral, legal, or mental accountability; or to reliability and trustworthiness.

EXAMPLE: A student believes it's important to take care of the planet because we all share it.

GLOBALIZATION OF MARKETS AND ECONOMIC RELATIONS

What is the difference between old globalization and new globalization?

Globalization and Its Impact

• Fewer Belongings in the Past: Ancestors had fewer personal and household items. Many were handmade by themselves or their community.

• Mass Production in the Present: Most items today are mass-produced. Made by laborers from different countries.

GLOBALIZATION: THEN AND NOW

• Global Trade & Products: Many items sold today come from other countries. Increased international product availability.

Definition of Globalization (Sheffield et al., 2013)

Growth of social systems that connect societies. Links past, present, and future.
Effects After Industrialization: Stronger and more visible connections among countries. Global networks have intensified.
Can globalization be stopped?
Difficult to stop due to global trade, technology, and interconnected economies. Continues to shape how societies interact and evolve.

Evolution of Market and Economic Integration

• Trade in the 1800s: The Philippines exported hemp (abaca), tobacco, and sugar to China. Products were mainly raw materials and agricultural goods from farmers.

• Modern Trade Expansion: Still exports traditional products like hemp, tobacco, and sugar. Now includes manufactured goods such as:

  • Agri-food & fish (processed agricultural products)

  • Wooden crafts (furniture, décor)

  • Processed food & drinks (canned goods, beverages)

  • Clothing apparel (garments, textiles)

  • Natural health products (herbal supplements, organic goods)

• Technology & Global Integration: Trade has expanded due to technology and globalization. Faster, wider economic connections with more diverse products.

The World Economic Forum cited four characteristics of the new era of global trade:

1. The modern customer demands fast products, such as retail fashion.

2. Multilayer global manufacturing is aided by digitization.

3. Establishing a global market and scaling up market participation are more achievable for small manufacturers with the aid of technology.

4. Repurposing of goods is a trend, which implies that businesses are finding new sources of value in tracking products throughout its life cycle (Lehmacher, 2016).

Why do people choose to work abroad (ofw) or migrate? 

Overseas Filipino Workers (OFWs) and Global Labor Mobility

• Increasing exchange of human resources & skills.

  • Apart from products, the movement of people and expertise has expanded.

  • OFWs: A Key Contributor to the Economy

  • Many consider OFWs as the most successful export (Paddock, 2006).

  • Their remittances significantly support the Philippine economy.

• Historical Growth of Labor Migration

  • Began in the late 1940s and accelerated through the 1970s.

  • Driven by economic challenges and job opportunities abroad.

• Early Migration Trends

  • The United States opened its doors to Filipino workers.

  • Many Filipinos sought employment overseas for better opportunities.

• Impact of Labor Mobility

  • Integrates national economies into the global market.

  • People migrate for various reasons, including financial stability and career growth.

Understanding Economic Globalization

Definition by the International Monetary Fund (IMF)
A historical process driven by human innovation and technological progress. Leads to increased integration of economies worldwide.

Key Aspects of Economic Globalization

• Movement of Goods, Services, and Capital: 

  • Trade and investment flow across borders more freely.

Four Dimensions of Economic Globalization (Benczes, 2014)

1. Globalization of Trade

   1. Exchange of goods and services between countries.

Imports and Exports 

2. Imports 

   1. Products or services bought from other countries. 

   2. These goods enter a country’s market for consumption. 

3. Exports 

   1. Goods and services sold to other countries. 

   2. Helps generate revenue and strengthen the economy.

NET EXPORTS

Definition:

• The difference between a country's total exports and total imports.

  • If Exports > Imports → Positive Net Exports
    The country sells more than it buys, strengthening the economy.

  • If Imports > Exports → Negative Net Exports
    The country buys more than it sells, which may lead to debt or reliance on foreign production.

Net exports of the Philippines is negative.  

• The Philippines often imports more goods and services than it exports.

• This results in negative net exports (trade deficit).

2. Globalization of production 

   1. The launch of the World Bank and IMF at Bretton Woods, NH, marked a transformative shift in the global economy. 

• Progress of Globalization 

  • Significant progress in globalization over the past 25 years.

• Post-WWII Economic Transformation

  • Economic recovery and expansion post-WWII led to the rise of American corporations.

• Shift from Statist Models

  • Poor performance of past statist models prompted a re-examination of the state's role.

  • This led to a substantial shift towards private and market-based approaches.

• iPhone: A Global Product

  • Identified by Wall Street as one of the bestselling products of all time.

  • Its parts and components come from various countries worldwide.

• Consumer Demand & Marketing

  • People line up for days to buy new models.

  • Success is credited to marketing and advanced technology.

• Profit Distribution 

  • Sales profits are shared across multiple countries.

  • While the USA is the home country, other nations benefit from production.

3. Globalization of technology and communication

Technology and Market Integration

• Technology accelerates market integration.

• The "global village" concept: technology interlinks people.

• Facilitates transactions and exchanges beyond spatial limits.

Example: 

McDonald's first opened in Pushkin Square, Moscow. There are short films online that show long lines of people waiting outside the restaurant, even in freezing winter weather. This example illustrates "McDonaldization," which means making consumer habits similar all over the world. In other words, people in different countries start eating and behaving in ways influenced by global brands like McDonald's.

4. Globalization of financial and capital markets 

• Cross-Border Transactions and Financial Intermediaries

  • Higher Product Costs Across Countries

    • When a product is sold at a relatively higher price in another country than its original production cost.

• Law of One Price in the Market

  • The principle that identical goods should have the same price globally, adjusting for exchange rates.

• Role of Financial Intermediaries

  • Institutions like banks and investment firms help finance production and trade.

why do countries trade? 

Global Complexity in Transactions and Production

• International trade involves treaties and agreements.

• Trade agreements must be negotiated and ratified.

• Global business includes:

  • Protection of intellectual property

  • Regulation of foreign investment

  • Monopoly power considerations

  • Mobility of highly skilled workers

Despite this complexity, the key question remains:
Why do countries trade?

How will these countries gain from trade? 

International Trade: Costs & Benefits

Costs of International Trade:

• Removing imported goods to produce local products may not be efficient.

• Limited resources require trade-offs in production.

Benefits of International Trade:

• Expands market size.

• Encourages division of labor & specialization.

• Increases product variety & competition.

• Achieves economies of scale.

Pray. May the darkness of sin and the night of unbelief vanish before the light of the Word and the Spirit of Grace. And may the Heart of Jesus live in the hearts of all. Amen.

USC Hymn

To USC we sing

Our song shall always ring

You, who set the mind astir

Of our learning be harbinger.

Our Alma Mater dear

We pledge our love sincere

Firm do we stand and true

Glory to God, to man and you.

We promise faith and love

And laud the Lord above

To God we shout our song of praise

To Him our voice we raise.

Your aim’s to lead us to the Lord

Be now forever blessed!