GE 03 Reviewer THE THREE TENSIONS OF GLOBALIZATION
GLOBALIZATION By L. Rothenberg
-the process of interaction and integration among the 1) Tension between individual choice and societal
people, companies, and government of different choice.
nations.
- This occurs when a person, exercising her right to
Globalization 101, Laurence E. Rothenberg choose a particular lifestyle, to buy a particular product,
or to think a particular thought, is at odds with what
- This process has the effects on environment, culture,
society at a whole views is most preferable for all
political systems, economic development and
citizens at large.
prosperity, human physical well-being in societies
around the world. 2) Tension between free market and government
intervention.
CLASSIFICATIONS OF DEFINITIONS
- a free market determines what goods are produced
and how money is invested in order to satisfy consumer
BROAD AND INCLUSIVE demand (that is, the sum of all the individual choices).
-general definition 3). Tension between local authority and extra-local
authority
-it does not agree on certain ideology
- the tension between decisions made at the level most
NARROW AND EXCLUSIVE close to individual citizens and decisions made at higher
-personal definition Individual; of an levels of authority distant from the people it may affect.
-defined base on experience and how they perceived it.
IMPACT OF GLOBALIZATION
Thomas Larsson - Globalization is the process of world
shrinkage, of distances getting shorter, things moving 1.) HOMOGEINITY
closer. It pertains to the increasing ease with which
somebody on one side of the world can interact, to - it means an increasing sameness as information and
mutual benefit, with somebody on the other side of the ideas flow across boundaries.
world."
A. Cultural Imperialism - it is the growing international
Al-Rodhan (2006) - Globalization involves economic and influence of a particular culture.
political integration; global policies; knowledge
I. Cultural: the role played by American culture or
transmission, cultural stability; the reproduction,
Americanization, the spread of Christianity
relations, and discourses of power
II. Economic: spread of the market economy throughout
Martin Khor - Globalization is a form of colonization.
the world.
Ohmae (1992) - Globalization means the onset of the
III. Political: worldwide spread of models of the nation-
borderless world. This definition proposes that barriers
state or the single model of governance around the
are no longer considered a hindrance because there are
world.
so many ways by which we can access information and
goods from other countries as if we are living in one B. Media imperialism - subcategory under the broader
place without any boarders. umbrella of cultural imperialism
Ray Kiely and Phil Marfleet (1998) - Globalization is a C. Mcdonalization - it is the process wherein the
situation wherein societies, cultures, politics, and principle of one of the dominant fast-food restaurants in
economics have, in some sense, come closer together. the US is employed and is used in almost different
societies across the world
D. Globalization - it is the desires and ambitions of
STRUCTURAL BARRIERS
different entities such as organizations, corporations,
1. Social Class and other nations to influence others and impose their
power throughout.
2. Rate
2.) HETEROGEINITY
3. Ethnicity
- refers to differences because of either lasting
4. Gender differences of the hybrid or combinations of cultures
5) Regions of the World (North & South) that can be produced through the different processes;
1. MARRIAGE 2. MIGRATION 3. COLONIZATION
DYNAMICS OF GLOBAL AND LOCAL CULTURE 3. World Culture Theory - It is a label for a particular
interpretation of globalization that focuses on the way
1.) Cultural Differentialism -it states that currencies are
in which participants in the process become conscious.
immutable and there is a likelihood that other culture
which is significantly different from another culture may ECONOMIC INTEGRATION
clash if they get to interact
- is an arrangement among nations that typically
2.) Cultural Hybridization - it refers to a politics of includes the reduction or elimination of trade barriers
integration without the need to give up cultural identity. and the coordination of monetary and fiscal policies.
3.) Cultural Convergence - it supports the idea of global TRADE BARRIERS
cultural homogeneity. It is the process of increasing
1.) Tariff (taxes)
sameness by adopting global culture, ideas, and
practices. 2.) Non-tariff
ASPECTS OF GLOBALIZATION - importation quota
1.) Global Trading - Concerns importation and -product standards
exportation.
- economic embargo
2.) Capital flows - the movement of money for the
purpose of investment, trade, or business operations. - government subsidies
Inside of a firm, these include the flow of funds in the GLOBAL ECONOMY
form of investment capital, capital spending on
operations, and research and development (R&D). - World economy/worldwide economy
3.) Movement of people - Migration in search for better - All the economies of the world which we consider as a
employment opportunities. giant economic system;
THEORIES OF GLOBALIZATION ECONOMIC GLOBALIZATION (SHANGQUAN, 2000)
1. World System Theory - this theory believes that - refers to the increasing interdependence of world
capitalism has spread around the world for the last five economies as a result of the growing scale of cross-
centuries from 1500 to the present. In world Capitalism, border trade of commodities and services, flow of
the key structure is the three major division of labor of international capital and wide and rapid spread of
each country that has created hierarchy. technologies.
a. Core - powerful, wealthy, and industrialized countries 5 MAIN ACTORS OF GLOBALIZATION
that usually control and benefit from the global market. 1.) Multinational companies
Countries that are not as rich as the core countries
usually depend on these core countries. These countries 2.) Consumer
own most of the world's capital and technology and
3.) Laborers (Skilled, Unskilled, Professionals)
have great control over world trade and economic
agreements. 4.) State
b. Peripheral - countries that are dependent on core 5.) Regulatory institutions
countries for capital and have an underdeveloped
INTERCONNECTED DIMENSION OF ECONOMIC
industry. They generally provide labor and materials to
GLOBALIZATION
core countries.
1. Goods and Services: Goods are tangible objects that
c. Semi-Peripheral - Countries that share characteristics
satisfy people's wants. Services are actions, such as
of both core and periphery countries. However, they
haircuts and car repair, which also satisfy people's
also exploit peripheral countries just as core exploits the
wants.
natural resources of peripheral countries.
2. Capital: It is the total assets a company needs to stay
2. World Polity Theory - also known as world society
solvent. A company's capital assets are significant
theory, global Neo-institutionalism, and the "Stanford
because organizations use capital assets to create
school" of global analysis.
wealth
- It views the world system as a social system with a
3. Communication and Technology: Advances in
cultural framework called world polity, which
Communication and technology has allowed the
encompasses and influences the actors, such as nations,
integration of economies worldwide through increases
international organizations. and individuals under it.
in trade, investment flows, and technology transfer.
- Emphasizes culture, not economy:
4. Market Exchange: it is an economic system in which
- While countries differ a lot in their level of goods and services are produced, distributed, and
development, many aspects of their governments look exchanged by the forces of price, supply, and demand.
quite similar;
- This conformity reflects the existence of a common
global culture.
ECONOMIES ASSOCIATED WITH ECONOMIC f) It can lead to a higher efficiency of producers.
GLOBALIZATION
g) it can attract foreign investment
DISADVANTAGES OF TRADE LIBERALIZATION
1.) PROTECTIONISM
a. It can affect local businesses and their domestic
-Refers to government policies that restrict international product.
trade by imposing tariffs, quotas, product standards,
b. The possible risk may be experienced if the products
and subsidies.
or raw materials coming from other countries have a
PRIMARY POLICY TOOLS lower environmental standard.
a. Tariffs: These are charges to importing countries in c. Developing nations may be threatened to back out in
the form of either money or goods that will serve as a the global market as they are forced to compete in the
payment for allowing its international products to be same market with other nations possessing stronger
sold in the local market. economies.
b. Import Quotas: This is a kind of tariffs that lessen the d. Countries with lower educational standards may
number of products that can be imported for a certain struggle to adapt to a changing economic environment.
period of time.
e. It can exploit the natural resources due to the
c. Product Standards: This is a kind of barrier that competition and shallow environmental policies in a
imposes strict standards in imported products which country.
may make it difficult for different importing countries to
f. It can lead to structured unemployment whereby
bring their goods in the local market.
countries and companies who cannot compete with
d. Government Subsidies: This is a strategy of the others may lose gain and have less profit that may result
national government by which incentives and cash in layoff.
payments are distributed to domestic businesses to
THE EFFECT OF TRADE LIBIRIZATION TO ITS
encourage them to expand their market globally by
STAKEHOLDER
increasing international export.
The Bretton Wood System - agreement that was enacted
ADVANTAGES OF PROTECTIONISM
during the post-cold wars.
a. Taxes imposed on exporter countries may increase
It is the United States of America who was at that time
government revenues.
owned the 2/3 of world's Gold had led this conference
b. Strict and rigid policies may protect domestic product in July 1944 with delegates from 44 countries at Bretton
c. Encourages the exportation of national products Woods, New Hampshire.
which may expand their products globally.
GOALS of the Bretton Woods System:
DISADVANTAGES OF PROTECTIONISM
- create an efficient foreign exchange system;
a. Protectionism policies often time support other
- prevent competitive devaluations of currencies; and
countries to make their own protection policy as well.
Hence, it inhibits the exportation of each other products - promote international economic growth.
that may result in less profit
INTERNATIONAL FINANCIAL INSTITUTIONS (IFIS)
2.) TRADE LIBERALIZATION
- were founded by groups of countries to promote
- It is the process of removing or reducing the barriers or public and private investment to foster economic and
restrictions in the exchange for goods between and social development in developing and transitioning
among nations. countries.
ADVANTAGES OF TRADE LIBERALIZATION THE INTERNATIONAL MONETARY FUND (IMF) AND THE
WORLD BANK
a.) As it promotes free trade between and among
countries, the cost of importing nations in bringing their - These two institutions were established as part of the
goods to other countries is most likely to be lessened. Bretton woods agreement in 1945.
b.) Promotes efficient use and allocation of world (1) International Monetary Fund (IMF): this Institution
resources was created to oversee the world's monetary system's
stability. The IMF was comprised of 189 member
c.) Increases Capital Flow
countries.
d.) Allows developing countries access to the heavily
(2) World Bank: was established to provide financial
protected markets of the developed world thus helping
assistance and strategic advice to nations profoundly
promote development
affected by the previous world wars.
e.) It encourages specialization among countries by
(3) World Trade Organization: The World Trade
maximizing their capabilities whether to manufacture
Organization is a global organization made up of 164
goods or provide services.
member countries that deals with the rules of trade
between nations. It was born out of the General INTERNATIONAL/REGIONAL CIGANIZATION AND
Agreement on Tariffs and Trade (GATT), which was ALLIANCES
established in 1947.
1. Organization for Economic Co-operation and
THE GENERAL AGREEMENT ON TARIFFS AND TRADE Development (OECD) - is an international organization
(GATT) that works to build better policies for better lives. Their
goal is to shape policies that foster prosperity, equality,
The agreement was signed into law on January 1, 1948
opportunity and wellbeing for all.
with 23 countries after the world war to monitor world
trade that may lead to economic recovery. 2. The Organization of Petroleum Exporting Countries
(OPEC) - is a permanent, intergovernmental
MARKET INTEGRATION
Organization, created at the Baghdad Conference on
- it basically refers to how easily two or more countries September 10-14, 1960, by Iran, Iraq, Kuwait, Saudi
can trade with each other FORMS MARKET Arabia and Venezuela. It was established to monitor and
INTEGRATION reduction of trade barriers such as tariffs stabilize the price of OIL.
FORMS MARKET INTEGRATION 3. The Association of Southeast Asian Nations (ASEAN)
BENEFITS/ADVANTAGES: - was formed in 1967 by Indonesia, Malaysia, the
Philippines, Singapore, and Thailand to promote political
-it allows firms to access a larger pool of customers and and economic cooperation and regional stability.
suppliers
4. The Asia Pacific Economic Cooperation (APEC)
-increase profits and lead to higher levels of economic
growth - was established in 1989. Currently, the APEC has a
twenty-one member over the four continents. APEC
-firms in industries that can compete internationally Member Economies works together to sustain economic
may thrive in a more integrated market growth through a commitment to open trade,
DISADVANTAGE investment and economic reform.
- firms in industries that are not globally competitive 5. The European Union
may suffer - it adheres to the economic and political union where
its member countries have a single currency, Euro.
Through its harmonization of its political and economic
HISTORY AND GLOBAL MARKET INTEGRATION policy, the European Union was able to deliver peace,
Roman Period and Early Voyages prosperity, and stability for more than fifty years by
which it increases the standards of living of its people.
- The history of economic globalization can be traced
back to the early years of the Roman Empire, as 6. North American Free Trade Agreement (NAFTA)
evidenced by their extensive transportation network - This organization was formed in 1994 by the Canada,
and the existence of everyday language, the legal Mexico and America for the reason of elimination of
system, and currency. Years went by, and during the barriers when it comes to trade and investment. The
early 15th century, the different voyages of Vasco Da agricultural sector, production and manufacturing
Gama, Columbus, Magellan, and others have proved sector, investment, and other services are some of the
that technological advances have made it possible to sail economic sectors wherein tariffs are eliminated.
over the other continents and to facilitate
intercontinental trade. Different global powers that exist GLOBAL CORPORATION
during those times, such as Spain, Portugal, Britain, and A global corporation, also known as a global company, is
Italy, have controlled international trade. coined from the base term 'global', which means all
- Napoleonic Wars in 1815 and the Beginning of World around the world. It is a company that operates beyond
War 1 its local boundary.
- Opening of the Suez Canal has helped to reduce travel TYPES OF GLOBAL CORPORATIONS
times between Europe and Asia. 1.) International Companies - These are basically
Two-world wars (I & II) and the Great Depression; Post importers and exporters
World Wars and Post Great depression 2.) Multinational Companies - They operate in more
- The heightened economic integration achieved during than one country and receive substantial income from
the early 19th century was ruined by the two world these foreign operations.
wars and the great depression. 3.) Transnational Companies - the very largest
- The major powers of those times, the United States, multinational businesses with separate divisions that
Western Europe, and Japan, have undertaken the task of operate with a significant independence in their
rebuilding the economic system. assigned markets.
4.) Global Companies - usually operate on a worldwide
scale, but it would not be legally tied up to any nation.
GLOBAL CORPORATION DRIVING FORCE WHY EACH STATES PARTICIPATE IN
INTERNATIONAL RELATIONS
- the whole system of human interaction
- a system of competing and allying states Traditional Challenges
- political scientist commonly call this the international
system, and it is the main focus of the field of - External Intervention by other countries: this is a case
international relations. wherein Powerful Nations intervene with the issues and
affairs of other nations.
WHAT IS THE PURPOSE OF GLOBAL INTERSTATE SYSTEM
- Internal Political challenges: Challenges that come
- To contribute to peace and security by promoting from the state's own internal nonconformists.
international collaboration through educational,
- Regional Organization challenging state autonomy:
scientific, and cultural reforms in order to increase
Challenges coming from different International
universal respect for justice, the rule of law, and human
Organizations such as the EU's response to the Issue of
rights along with fundamental freedom.
Extra-Judicial Killing in the Philippines war on drug.
WHAT ARE THE BENEFITS OF INTERSTATE SISTEM TO
GLOBAL ECONOMICS
POLITICAL ECONOMY
- Due to the worldwide economy's increasing
- The balance of power in the interstate system prevents
Importance to the local economy, it demands the states
any single state from controlling the world economy,
to conform to the rules of free-market capitalism. This
and from imposing a political monopoly
scenario was called by Journalist Thomas Friedman as
THE TREATY OF WESTPHALIA (1648) "Golden Straightjacket," wherein States are forced into
policies that suit the preferences of investment houses
- European settlements of 1968 which brought to an
and corporate executives who transfer Capital and
end the 80 years war between Spain and Dutch and the
resources into countries favored as adaptable to the
German phase of the 30 years war.
demands of international business.
- Established the notion of the nation-state and the idea
GOLDEN STRAIGHTJACKET - all the rules set down by
of state sovereignty which creates an atmosphere that
global markets for how a country has to behave
states have sovereignty and government control over its
economically if it wants to thrive in today's world.
own affairs.
Global Social Movements
WHAT IS A NATION-STATE
- These are movements of people that are spontaneous
- IT'S HOW WE IDENTIFY OURSELVES
or that emerge through large grassroots organizations.
A NATION-STATE
GLOBAL GOVERNANCE
Determines:
- What language we speak
GOVERNANCE - is the process of making and enforcing
- What laws we follow decisions within an organization or society. GLOBAL
GOVERNANCE refers to the collective efforts to identify,
- What holidays we celebrate understand, and address worldwide problems that go
"The fundamental parts of a nation-state are nation and beyond the problem-solving capacities of states (Weiss,
state. 2010)
EFFECTS OF GLOBALIZATION ON GOVERNMENTS SOURCES OF GLOBAL GOVERNANCE
- Globalization has dispersed political and economic 1.) Treaties and organizations
power beyond the state. Global Norms, Economic 2.) International NGO's
Policies, and competitive benefits have forced each state
to participate in international relations with the purpose 3.) Powerful Transnational Corporations
of establishing legitimacy, respectability, economic
growth, and peace and order (Schattle, 2014).
GLOBAL CRISIS PROBLEMS
- Poverty
- Health (diseases/viruses)/Pandemic
- War Organized crime & Terrorism
- Climate change
- Environmental Pollution
- Economic crisis
- Cyber threats
- THE UNITED NATIONS
- an international organization founded in 1945 after
World War II.
- It is currently made up of 193 Member States.
- It fosters cooperation among nation-states to address
global problems.
International Court of Justice
- also referred to as the World Court,
- the principal judicial body of the United Nations.
- it is the only one of the main bodies of the United
Nations not located in New York, USA. The Peace Palace
in Hague, Netherlands provides the venue for countries
to settle disputes inside a court of law.
ROLES OF THE UNITED NATIONS IN GLOBAL
GOVERNANCE
- There is no "Central Authority" in Global Governance
but the United Nations comes close to being a "Central
Authority" to raise and resolve global issues as they
have the capability to involve many non-state actors
(governmental and non-governmental organizations,
etc).
Dennis Francis - President of the United Nations General
Assembly.
Antonio Guterres - the Secretary-General of the United
Nations.
Antonio M. Lagdameo - the Ambassador and permanent
representatives of the Philippines to the United
