your ideas and imagination in relation to the topic,

this module offers various activities that are

contextualized and simplified.
At the start of the module, you are to take the pre-
assessment test to see how much background
information and knowledge you have about the topic.
This module is self-instructional. You can read,
analyze the concepts and ideas presented and reflect
on them. The activity helps you assess how you
progress as you go through the module. Remember
you are to work on this module independently. It is
expected that you will make the most of this module
and grow academically.

Wh
at Should You Learn?
At the end of the topic, you are able to:
A. Distinguish nation from state.
B. Identify the political, legal, and regulatory
environments of states.
C. Describe the impact of political risks on
governments.

Topics: POLITICAL GLOBALIZATION:

Let’s Start!
GOVERNMENTS AND CITIZENS IN THE FORMATION OF A STATE is the highest
GLOBALLY INTERCONNECTED WORLD OF expression of a political act of men conforming to
STATES promote their common interest, advance their
common welfare, secure their collective rights,
Overview: This module is designed and written in optimize their common resources, promote their
consideration of you and your level of knowledge as common heritage and harness their common
well as your capacity to learn and apply the necessary potentials for the welfare of the citizens (De Leon and
skills needed. It is made to train your mind to De Leon Jr. 2014, p. 6 as cited by Abelos, et al.,
appreciate the Governments and Citizens in the 2018). exactly 4 p.m. in the afternoon.
Globally Interconnected World of State. To further

1. What is the similarities and differences of nation and state?

2. What are the different factors of the political environment of
governmental institutions? 3. How can the categories and causes of
political risk?
 1

What is a State?
A State is a community of persons, more or less numerous, occupying a
definite territory, possessing an organized government, and enjoying independence
from external control.
Nation and State
Nation is defined as people, or aggression of men, existing in the
form of an organized society, usually inhabiting a distinct portion of the
earth, speaking the same language, using the same customs, possessing
historic continuity, and disguised from other groups by their racial origin and
characteristics, and generally, but not necessarily, living under the same
government and sovereignty.
State is more political concept.
Nation is racial or ethnical.
Arab Nation
Unites States of America

B. Elements of State
1. People
a. This is
the entire
body of
those
citizens of a state
who are invested
with
political power for
political purposes
(Black’s Law
Dictionary, 6th ed).
b. The number should be neither too
small nor too large.
c. A casual gathering of individuals
by chance, a group of bandits or a society of
pirates does not constitute people as an
element of state.

2. Territory
a. It is a
geographical
area under
jurisdiction of another country
or sovereign power or
state.
b. Nomadic
tribes, who
travel from
place to place, may not
establish a state since they are
not occupying a fixed territory.
c. A state must have a territory
sufficient in extent for its maintenance and growth.
2.1. Modes to Acquire Territory
Discovery and Occupation

2
A state may acquire a territory by discovering a continent, an
island or land with no inhabitants or occupied by uncivilized inhabitants, placing it
under its political administration.
The following lands can be the subjects of discovery and occupation:
Uninhabited Lands
Lands inhabited by uncivilized persons
Lands discovered by a state but which it failed to occupy for unreasonable length of time
Acquiring a territory through continuous and undisputed exercise of sovereignty over
it during such period as is necessary to create under the influence of historical
development the general conviction that the present condition of things is in
conformity with international law.
Cession
- It is the assignment, transfer or yielding up of territory by one state or
territory by one state or government to another.
- Cession may be in form of sale or donation.
Subjugation and Annexation
- Conquest made by a another state in the course of war and by
annexation at the end of the war
- It is also called involuntary cession

Accretion
- It is another mode of acquiring territory by addition of portions of
soil, either artificial such as the reclamation are in Manila Bay, or
natural by gradual deposition through the operation of natural
cause such as the waves of the ocean.

3. Government

a. Government is the totality

of authorities
which rule a society by
prescribing and
carrying on fundamental
rules which regulate
the freedom of its
members.
b. It is composed of the
executive, legislative,
judiciary and
administrators with
corresponding votes in administering the
 affairs of the state.

3.1 Kinds of Government

De Jure or Legitimate Government

This is established according to the constitution, and lawfully entitled to
recognition and supremacy and administration of the nation.
It is a government deemed lawful, rightful or just which, nevertheless, has been
supplanted or displaced.
De Facto or Illegitimate Government

3
A government that maintains itself in a display of form against the will of the
rightful legal government and is successful, at least temporarily, in overturning the
institutions of the rightful government by setting its own in lieu thereof.
Government by Revolutions
Government by Secession
Government by Occupation

4. Sovereignty
a. It is the supreme, absolute
and
uncontrollable power by
which an
independent state is
governed.
b. It is the paramount control
of the
constitution and the
frame of government
and its administration.
4.1 Internal Sovereignty
The power to control and direct the
internal affairs of a country such as the
authority to enact, execute and apply laws.

4.2 External Sovereignty

The power of an independent
state to control and direct its external
affairs such as the authority to enter into
treaties with other states to wage warm,
and to receive and send diplomatic
missions.

C. The Political Environment

 Globalization in the context of
governance takes place within the political environment of
governmental institutions, political parties, and
organizations through which a country’s people and rulers
exercise power.
Political culture reflects the relative
importance of the government and legal system
and provides a context within which individuals
and corporations understand their relationship to
the political system.
1. Political Risk
a. Political risk is the risk of a change in political environment policies that
would adversely affect a company’s ability to operate effectively and
profitably.
b. It can deter a company from investing abroad.
c. When the perceived level of political risk is high, a country will have
greater difficulty in attracting foreign investments.
d. Political forces can drastically change the business environment with
little adverse notice. 1.1 Categories of Political Risk

4
a. War
b. Social unrest
c. Politically motivated violence
d. International disputes
e. Change in government or pro-business orientation
f. Corruption
g. Crime
1.2 Causes of Political Risk
Tension is the fundamental cause of political risk between the
residents’ aspirations and goals and the real conditions at a given time.
Whenever the public perceives a wide gap between aspirations and reality,
there is political risk.
In lower and lower-middle-income countries, an economic crisis can
trigger political risk. Political Climate

2. Taxes
a. Tax is the lifeblood of every
government
(except some oil-rich
countries).
b. Governments rely on tax revenue to generate
funds necessary for social services, the
military and other expenditure.
21. Seizure of Assets
The ultimate threat a government can pose
toward a company is seizing assets.
Expropriation refers to government action to
dispossess a foreign company or investor.
Compensation is generally provided, although not often I the
“prompt, effective and adequate” manner provided for by international
standard. If no compensation is provided, the action is referred to as
confiscation.
International law is generally interpreted as prohibiting any act by a
government to take foreign property without compensation.
Nationalization is generally broader in scope than expropriation.
It occurs when the government takes control of some or all of
the enterprises in a particular industry.
International Law recognizes nationalization as a legitimate
exercise of government power, as long as the act satisfies a public purpose
and is accompanied by adequate payment which means it reflect the fair
market value of the said property.

5
3. International Law
a. International Law may be defined
as the rules and principles that
nation-states consider binding
upon
themselves.
b. International law pertains to property,
trade,
immigration and other areas that
have traditionally
been under the jurisdiction of
individual nations.
c. International law applies only to the
extent that
countries are willing to assume all rights and
obligations in these areas.

4. Islamic Law
a. Islamic Law, the Sharia is a
comprehensive code
governing Muslim conduct
in all areas of life,
including business. The
code is derived from two
sources.
b. Koran, the Holy Book written
in Arabic that is a
record of revelation made to
the Prophet Muhammad
by Allah.
c. Hadith, based on the life, sayings,
and practices of Muhammad.
d. The orders and instructions found in
the Koran are analogous to code
laws; the guidelines of the Hadith
 correspond to common law.

5. Bribery and Corruption: Legal and Ethical

Issues MOST CORRUPT COUNTRIES
(Transparency International)

a. Nigeria b. Colombia c. f. Ghana

Pakistan d. Iran g. Angola h. Russia i. Kenya
e. Mexico j. Guatemala

LEAST CORRUPT COUNTRIES (Transparency International)

1. New Zealand 2. Denmark 7. Australia

3. Finland 7. Hong Kong

3. Norway 7. Iceland

3. Switzerland 4. Singapore 8. Austria

4. Sweden 8. Belgium

5. Canada 8. United States 9. Ireland

5. Luxembourg 5. Netherlands 10. Japan

5. United Kingdom 6. Germany

6
7. Balances in Globalization
a. Traditional balance between nation-states.
b. Balance between nation-states and global markets.
c. Balance between individuals and nation-states.

KNOW What You

Learned!
The key to continuous improvement in the period of globalization is the direct outcome
of the actions of individuals. With the proper use of technology, individuals can make their
own choices because they are provided the freedom to decide what is rewarding and beneficial
to them.
Generate your own generalization atleast two:
1.
2.

Books:
Abelos, A. V. et. al., (2018). The Contemporary World. Malabon City: Mutya Publishing House, Inc.
Steger, Manfred B., Paul Battersby, and Joseph M. Siracusa, eds. [Link] SAGE Handbook
of Globalization. Two volumes. Thousand Oaks: SAGE Publications.
O’neil, P. H. (September 2005), Essentials of Comparative Politics. Tacoma, Washington DC, USA.