Rory Vee V.

Baldemor

CWORLD Midterms Essay

Globalization and its Structures

The word globalization can be defined in numerous dimensions, which can be confusing

and vague. It does not have an easy definition, but it has been used extensively and has come to

mean different things to certain individuals. In other words, globalization is a complex

phenomenon that occurs at multiple levels and an even process that affects people differently.

Accordingly, what it means in economics will vary from what it means in politics, and what it

means in culture may differ in literature. Broadly speaking, globalization is the term used to

describe the way countries are becoming more interconnected in both economic, culture, or

politics. It is an international process given by trade, investment, technology, and finance. It is the

interconnectivity through communication. Different countries come together as one big global

economy. Simply put, globalization is the process of unifying the world. Through globalization,

companies can gain a competitive advantage from much lower operating costs, and access to new

raw materials and additional markets, thus, it allows the active exchange of goods, services, and

ideas, making the world closer and smaller. It increases the connection of every country to trading

social interaction, knowledge, new discovery, information of the world, and technological

advancement. Owing to the technological and global innovations that are being brought about,

Filipinos and other ethnicities are able to enjoy Hollywood movies, Italian cuisine, Japanese

anime, or Korean dramas, which are very prominent in this contemporary society.

Although globalization has a lot of effects to the relationships among different nations and

states, just like any other concept, it has pros and cons. It is a process of unifying yet it also gives

rise to more walls raised by those who are afraid of losing individual identity and value under the
raging waves of globalization. Therefore, while there is an increase in the easy access of the

internet and information on one side, there is also an increase in cyber terrorism and crime on the

other side, and while there is the rise of openness and more accepting and accommodating society

on one side, there is also a rise in disagreements and hostility towards outsiders on the other. That

is why the question arises as to how globalization really affects the lives of people more often. The

aim of this essay is to look at globalization as a part of a whole than on a larger scale, to look at its

features and effects on the state-nation, which is the Philippines, and to discuss its different

structures as well. Nevertheless, globalization is inferred with numerous aspects of the people’s

lives, but this essay will focus on the positive effects of globalization to the Filipinos, and the

experience it has for the Philippine economy as well as for the Filipino people.

First and foremost, globalization is not a new concept. It is a phenomenon that began with

the earliest human migratory routes. In ancient times, traders would travel vast distances just to

buy rare commodities such as salt, spices, and gold, which they would bring home and sell in their

home countries. In the case of the Philippines, the country used to be a colony of different countries

for at least thousands of years and it had already played an important role in the field of commerce

and trading in ancient southeast Asia until the nation was colonized by Spain in 1565. In the

Philippine Islands, the history of early globalization remains visible, as does the pre-colonial

experience of the region. The precolonial history of the country is visible in its people's diversity.

The country is divided into three subregions, namely, Luzon, Visayas, and Mindanao. Each of

these subregions is home to numerous distinct ethnic groups. Luzon, which is located in the

northernmost part of the nation and is the largest island, is home to the Bicolano, Ilocano,

Kapampangan, and Tagalog people. Mindanao, which is the country’s second-largest island along

its southern border, is home to the Maguindanao, Lutao, Subanon, and Tausug groups. And lastly,
the Visayas or Visayan islands, which are scattered between Luzon and Mindanao, home to the

Cebuano, Ilongo, and Waray speakers. Since the precolonial era, all of these different ethnic groups

have undergone many dramatic changes, but this diversity overall continues to reflect an earlier

era when these diverse people were factionalized, a time before it was even discovered, when

approximately millions of people lived in a number of different small villages and towns located

throughout the Philippine Islands, a time when the local rule was still governed by independent

datu chieftains.

However, by 1610, these factionalized ethnic groups had been linked together and

stabilized into a unifying single nation, with more than 95 million people of distinct ethnic groups

living in the different islands, who also recognize themselves as citizens of this nation of Filipinos,

as the European powers began to spread their sovereignty to every part of the globe in which this

system of organizing international connections has achieved a worldwide scale and the idea of

imperial sovereignty was later amended by anti-colonial movements into its present national form.

The colonization in the Philippines began in 1565, following the decolonization movements, the

nation launched its movement for independence from Spain in the late 19th century. The

Philippines has only finally gained independence in 1946 after being colonized for a second time

by the United States. As several global forces from multiple world regions converged on the

Philippines, the early modern islands were, in short, globalized, for the unity that binds together

the different Philippine regions and ethnicities into one nation under the rule of the Philippine

government was born out of globalization. These various global forces helped form a crossroad of

a truly global network of around-the-globe political, economic, cultural, and religious flows.

Turning back to globalization, it is said that everything comes with different structures.

And globalization is an inevitable process that leads to the shrinking of the world. When there is a
process and is inevitable, there should be a structure to it. Therefore, when discussing the concept

of globalization, one needs to discuss the structures of globalization as well. There are four

structures that are going to be discussed, and the first one is the global economy. The global

economy is the world’s economy, known as the international exchange of goods and services,

expressed in nominal units of account. It is a world without borders, inhabited by marketing

individuals and companies who have joined the geographical world, initiates the exchange of

goods and services, and is integrated into a huge single global market. There has been a growing

integration of the Philippine economy with the global economy. This is apparent in the substantial

growth in trade in commodities and labor migration. Active involvement in the era of globalization

world of commerce, migration, and financing has led to tangible gains, such as low and steady

inflation, and low unemployment rates. Studies have found that globalization has a positive effect

on the country’s economic growth and employment. The Philippines also has a significant role in

international migration. Openness to labor mobility has provided the country with decades of

experience as a source of international migrants. Statistics show that Filipinos comprise more than

50% of Philippine migrants, with an upward trend. Due to their important contribution to the

development of the Philippine economy, the OFWs are considered the country's economic heroes.

In 2018, remittances sent by OFWs accounted for 11 percent of the country's overall GDP. The

Philippines is one of the world's top five economies that gain the most from remittances. One of

the factors that promote labor mobility is the global events that increased the international

migration opportunities of Filipinos, especially in expanding their work to a global scale. This fact

has various implications. It seems that this ubiquitous interest in migration has become a cultural

construct that is now embedded in the society of the Philippines. Migration, for instance, happens
to be passed from one generation to the next among families, because working overseas is now a

common occurrence for the lives of Filipinos.

The next structure of globalization is market integration. It shows the relationship of the

firm in a market. The level of integration affects the company's conduct and thus its marketing

efficacy. A highly integrated market's behavior differs from that of a disintegrated market. Markets

vary in the level of integration and thus, their degree of efficacy depends. One method that boosts

globalization is to look at trends and patterns, how prices change across nations, or how they

become similar. It is an index that shows the degree to which different markets are associated. It

has three basic kinds, namely, horizontal integration, vertical integration, and conglomeration.

Through market integration, transaction costs are abolished, competition is reduced by merging

companies, better signals for optimal generation, and consumption decisions are provided, lastly,

the security of supply is improved. Market integration also allows consumers to purchase items of

higher quality at a cheaper cost. This is particularly useful for the Philippines, as there are items

that are not readily accessible within its boundaries, and the importation of those goods is cheaper

than the effort to manufacture them. It gives the people a lot of choices when purchasing products

so it helps the Filipinos to strive for an improved quality of life. It also generates higher national

economic growth through increased consumer purchases.

Another structure of globalization is the global interstate system. The global interstate

system focuses on the relationship between multiple unions in the state. It is the whole system of

human interactions. The modern world-system is structured politically as an interstate system, a

system of competing and allying states. It also includes all of the human population's cultural

aspects and networks of interaction. It leads to peace and security by promoting international

cooperation through education, science, and cultural reforms to promote universal respect for
justice, the rule of law, and human rights, together with fundamental freedoms. This reflects the

efforts of numerous nations and governments around the world to collaborate and work together.

For example, through the ASEAN, The diplomatic relations between the Philippines and Vietnam

have expanded to that of a strategic alliance. In a statement issued by the Philippine Department

of Foreign Affairs after the end of the first meeting of the Philippines-Vietnam Joint Commission

on Concluding a Strategic Partnership, the two sides “on the basis of amity, mutual respect, and

cooperation, the bilateral relations are growing in various aspects, including in political, trade and

investment, fisheries, marine, and oceanic affairs, defense and security cooperation, among

others.” Given the marginal contact in the past, the progress in the connections between the

Philippines and Vietnam is worth mentioning. This was initially influenced by the fact that both

nations, with the same challenges, were members of ASEAN. As a result, trade relations have also

strengthened between the two nations. Through the integration of the ASEAN countries, the

Philippines was able to gain economic growth through investment, services, work skills, and a free

market, and the gains went to the benefit of the people. All nations need to strive for a collective

interest and not just the well-being of their own country to meet all the aims of ASEAN. When

accomplished, it would reach beyond boundaries to improve national stability, foreign trade,

poverty reduction, and global competitiveness.

Finally, global governance, which is another structure of globalization. The concept of

global governance refers to the movement towards political cooperation among transnational

actors. It is concerned with issues that have been too difficult for a single state to solve on its own.

For instance, armed wars between and within states, climate change, and economic instability

cause major challenges to human security in all societies. Thus, to properly frame threats,

formulate suitable strategy, efficiently execute and reliably analyze outcomes to mitigate those
challenges, a variety of actors and expertise is essential. Different states as well as international

organizations are included in global governance, with one state holding more of a lead role than

the others. There is a consensus that strong governance is a requirement for economic growth. This

means that there a clear connection between successful governance and economic development.

The World Bank and the United Nations Development Program (UNDP) are some of the

international development agencies that are offering development aid to individual states, provided

that policy changes are implemented. For several years, the Philippines has already been a recipient

of various United Nations programs. For example, the UNDP, along with the Australian

government, has donated P172 million through the Resilience and Preparedness Towards

Inclusiveness Development (RAPID) program to increase disaster risk reduction and management

in typhoon-affected areas. There are about 12 local government units along the Eastern Visayas

region in which the RAPID program is implemented. While the intervention of the World Bank in

the Philippines has enhanced socio-economic and living conditions. Rural wages are raised,

agriculture development is increased, and market accessibility in rural areas is greatly enhanced.

To sum up, the Philippines is one of the Asian nations where globalization has made a

significant impact. Globalization in the Philippines is currently quite effective, as it has facilitated

significant changes in the nation such as allowing more labor, and thus, more Filipino and foreign

businesses have arisen in the region to assist the country in developing its economy. In addition,

following the influence of the US after the Second World War, the Philippines has been one of the

developing countries that have been dealing gradually with globalization. It is one of the most

significant factors that has led to a drastic change in Philippine society and economy. In the past,

the country's highest income was from overseas Filipino workers' remittances. Today, the BPO

sector has evolved to be the highest revenue stream. The BPO industries have significantly helped
increase the country’s GDP. The pattern for the Philippines to outsource stays favorable. If the

industry continues to expand, this ensures that more Filipinos profit from a higher wage. Among

nations, globalization has generated integration and standardization. Especially in the economic

aspect. International trade and tariff laws have allowed nations to trade products and services

across the globe. Globalization's cultural component has also enabled accessibility and exposure

to other nations’ cultures and perspectives. In terms of politics, global security challenges have

been addressed and diplomatic negotiations between opposing nations have been facilitated.

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manila/documents/publication/wcms_541519.pdf

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philippines-economy/

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