GLOBALIZATION PRELIM

Global Economic Imperialism - one nation assumes economic power or influence over others. Age of "westernization" and "Americanization"

"westernization" and "Americanization" - Adopting ideas that are characteristic of West and North America, relegating the traditional In their own culture.

GLOBALIZATION

  • Difficult to understand

  • Reich (1988) - its meaning is obscure.

  • McGrew (1990) - compromised of multiple sameness and interconnectedness that go beyond nation-states.

  • Cerny (1997) - cluster of economic and political framework

  • 1st decades of 21st century - some scholars argues that it is a process, for some, it is condition. For others it is ideology.

  • Freeden (2003) - denotes range of processing nesting under one rather unwieldly epithet.

  • Appadurai (1996) - 5 dimensions of global cultural flow:

    • Ethnoscapes, technoscapes, mediascapes, financescapes, ideoscapes

  • Steger (2005) - globalization as condition, globality denote "future social condition"

    • Existence of multinational, transnational companies, international trading, economics blocks, UN, - European Union (EU).

    • Condition became an ideology

  • Steger (2014) - defined ideology as system of widely shared ideas, patterned beliefs, guiding norms and values, and ideas accepted as truth by some group.

    • 5 core claims:

      • Globalization is about liberalization and global integration of markets.

      • Globalization is inevitable and irreversible

      • Nobody is in charge of globalization

      • Globalization benefits everyone

      • Globalization furthers the spread of democracy in the world.

The Global Economy

 Economic Globalization - expanding interdependence of world economies.

  • Shangquan (2000) - attributes this to growing scale of cross-border trade commodities and services, flow of international capital, and wide and rapid technology.

  • In the Philippines cross boarder country trading partnership, China, United States, Australia.

  • Foreign Direct Investment (FDI) - example toyota

 

4 INTERCONNECTED DIMENSIONS OF ECONOMY by Benczes 2014

  1. Globalization of Trade and Goods

  2. Globalization of Financial and Capital markets

  3. Globalization of Technology and communication

  4. Globalization of production.

 

  • Establishment of Word Trade Organization (WTO) 1995. It ensures a smooth flow or trades.

  • China as a major supplier and exporter of manufactured goods. Parts and event technologies.

  • Create more jobs to its citizens.

  • Business Process Outsourcing BPO (cheap labor cost, English proficiency.

  • Multinational Corporations (MNCs) and Transnational Corporations (TNCs)

Example Coca-Cola, based in Atlanta, Georgia, USA, manufactures syrup then sells to other country.

  • Imported Fuels we have Train Law or Tax Reform for acceleration and Inclusion

  • International Monetary Fund (IMF) - organization of 190 countries

    • They work together to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment, and sustainable economic growth. And reduce poverty around the world.

THE MARKET INTEGRATION

World Bank (WB) and International Monetary Fund (IMF)

2 TYPES OF INTERNATIONAL FINANCIAL INSTITUTION

  • Intergovernmental

  • Private

  •  WB aims to end extremes poverty and promotes shared prosperity

 

5 ORGANIZATION THAT BELONGS TO WB:

  • International Bank for Reconstruction and Development

  • International Development Associations

  • International Financial Corporation

  • Multilateral Investment Guarantee Agency

  • International Center  for Settlement and Investment Disputes.

 

  • International Companies are importers and exporters with no investments outside their home countries.

  • Multinational Companies have investments in other countries, but do not have a coordinated product offering in each country. They are more focused on adapting their products and services to each individual local market.

  • Global Companies have investments and present in many countries. They typically market their products and services to each individual local market.

  • Transnational Companies are more complex organizations that have investments in foreign operations, have a central corporate facility but give decision-making, research and development, and marketing powers to each individual foreign markets