GE03 - The Contemporary World

Objectives

  • Analyze the Contemporary drivers

  • Describe the emergence if economic & political systems

What is Economy?

  • The needs and wants of the people.

  • When someone consumes there should be someone that creates.

  • But sometimes we make too much so the government trades/export, so the economy still grows

3 things you need to think about before trading

  1. You need standards to the things you’ll trade

  2. You need to think which country to sell it to

  3. So you’ll have a good relationship with the other countries

Economic = Political Systems

  • the economic depends on how the political law works

How we encounter globalization

  • a complex phenomenon, an uneven process (+ & -) that affects all people differently

  • Unexpected events that may change the flow of our lives

  • Something we can experience on an individual level

  • It may not only affects certain country but also each one of the people in it

Winners and Losers (Affected by Globalization)

  • There are positive and negative sides of the affected by globalization

  • The losers are usually the lower class

  • After the higher class chooses the best places for housing, the poor are left with poor living conditions that they have to endure

  • Blaming the poor for flooding is a mistake Not all are their fault

IMPORT: When a country experiences severe deficiency in a certain demand

How can Globalization affects us

  • Even wars like Ukraine and Russia, we can still feel being affected by it.

  • The demand for oil/fuel grew because Russia focused on the war rather than EXPORTING (We get our oil from he middle east)

  • When demands are higher than supply, it creates a growth in their prizes

  • Because of Globalization, even when a country’s so far away, we can still be affected by it, one way or another.

Globalization - Integration of national markets to global markets by increased free trade

Interdisciplinary - the multiple theories and perspective that views to understand GLOBALIZATION

Disciplines that can explain globalization

  • Economics

  • Culture

  • Environment

  • Politics

  • Ideology

  • Technology

Economic - The study of production, resources, and consumption of goods & services

Politics - We need to have governance to trade.

Culture - We need culture to know what other countries have the same culture as us.

Ideology - What is right and what is wrong

Environment - The development of the environment when making of certain resources (Environmental Degradation)

Technology - communication is the biggest contribution of technology.

Engines/Drivers of Globalization

  • Technological: communication and information revolution

    • There are a showcase of technology wherever there's a war or an impending war or any other threats

  • Economics: Market and Capitalism

    • Capitalism - the system of the trade industry is controlled by private owners for their own profit.

    • Making sure that there are no disruption with the communication in 1980s the governance is very centralized, except one rural area in China, which open their market for capitalism, the people then started expanding and building that area.

  • Political: Financial Institutions (IMF, World Bank) and interstate

    • IMF: (International Monetary Fund) supports over 190 countries for growth ad prosperity, through economic policies that promotes financial stability and monetary cooperation.

    • They let other country’s loan money from them, when it is on the verge of bankruptcy

    • World Bank: They let other country’s loan money for rebuilding and construction purposes.

Globalization defined by Steger

  • Expansion and escalation of social relations across world time and space.

    • Expansion: creation of social networks and multiplying of connections across traditional political, economic, cultural, and geographic boundaries.

Examples of Expansion (SEA)

* Networks of automobile industry (HONDA SUPPLY CHAIN)

  • Thailand produces diesel engines

  • Malaysia on steering gear

  • Indonesia on engine blocks

  • Philippines o transmissions

* They don’t want other companies to copy their products that’s why they only ask for parts not as a whole.

Examples of Intensification (SEA)

Bangkok flooded by monsoon (2012)

  • Honda plant temporarily cease production

  • Honda did not reach the sales target so America suffered

  • The companies global profit fell

  • Meaning, not only are global connections multiply but also close knit and expanding their reach.

  • The world has become a small place and distance has collapse

THERE IS NO PATICULAR DEFINITION TO GLOBALIZATION

Arjun Appadurai’s SCAPES

  • The Multiple and Intersecting Dimensions of Integration

    • There are multiple globalization divided into 5 scapes

      • Ethoscapes - global environment of people

        • People moving from one place to another

      • Mediascapes - flow of culture

        • The media can change the flow of culture and the media’s influence is strong

      • Technoscapes - circulation of mechanical goods and software

        • Efficiency is everything, evolution of technology means communication is easier

      • Financescapes - global circulation of money

        • movement of money (import & export)

      • Ideoscapes - political ideas move around

        • can easily influence others

Banana Ketchup and Coconuts

  • The Philippines is abundant with bananas and coconuts. Since tomatoes were too expensive, the Filipinos resorted with making ketchup using bananas and since we have multiple variations of bananas to choose from.

Don’t ask what is globalization, but rather what is being globalized?

  • Capital and investment movements - since we open our market to other countries and we rely on theirs too, to a point where we can be greatly affected if something were to happen with their trades

  • Trade and transactions

  • Education and spread of knowledge

  • Migration and unrestricted movement of people