institutions and the capitalist philosophy that

Globalization refers to a multidimensional set of leads to the shrinking of the world in economic
social processes that create, multiply, stretch, terms.
and intensify worldwide social interdependencies
and exchanges while at the same fostering in Globalization
people a growing awareness of deepening
connections between the local and the distant - Economics
(McGrew, 2003). - Technology
- Politics
For Justine Rosenberg‘s definition of - Individuals and Institutions
globalization, he argues that globalization as a - Environment
phenomenon gave rise to the - Culture
interconnectedness of human society that
replaced the sovereign state system with Qualities and characteristics of Globalization
multilateral system of global governance. His (Held and McGrew, 2002)
definition centers on the process, condition, time,
and age of this condition. 1. Creation and Multiplication of social
networks and cultural activities which break the
From the lens of George Ritzer (2008), he traditional norms and practices in the political,
described this phenomenon as the spread of economic, and cultural realms of most
worldwide practices, relations, consciousness, communities.
and organization of social life. The
interconnectedness of social segments from 2. Expansion and Stretching of social
macro institutions to the smallest sectors of the operations and connections which is seen in the
world have coincided the fabrics of globalization. financial markets and trading operations around
the globe. (Examples: World Trade Organization,
Globalization, as a theory lies in the works of ASEAN Economic Community, World Economic
many 19th and 20th century scholars and Forum and European Union)
intellectuals like Karl Marx, MacKinder, and
Robertson who began to introduce the term 3. Intensification and Acceleration of human
―globality”. However, it was in the 1960‘s and activities which describes the process of world
1970‘s when this term gained worldwide and individual connection works.
attention.
Consumer markets and consumerism continue to
Globalization -- simply put -- is a social process rule in this postmodern era where the farthest
of reshaping and remaking the world order. have the access to reach the central portion of
Operations of social institutions transcend across global events.
territories and boundaries with the goal of
4. Consciousness and Awareness. People,
expanding its reach – economic, political, and
as the primary actors of globalization are the front
technological fibers. Understanding the term
liners as reflected in their experiences. The
globalization, requires a critical examination of its
human consciousness is critical on how they
origin, development, and usage as part of our
impact the growing outcomes and markets of
understanding of social change within the
globalization.
spectrum of contemporary world. Thus, the
deployment of new ideas in trans-planetary
Qualities and Characteristics of Globalization
setting and the structural emergence of nation-
(Summary)
state project moved communities to be included
in a trans-state and transnational domain. 1. Creation and Multiplication - of social
networks and cultural activities
Globalization - The movement towards the
2. Expansion and Stretching - Of social
expansion of economic and social ties between
operations and connections reflected on
countries through the spread of corporate
 how the financial markets and trading Disadvantages of trade:
operate around the Globe
3. Intensification and Acceleration - of - Increase in gap between the rich and the
human activities like the rise of poor
Consumerism - Dominance of global trade by the rich,
4. Consciousness and Awareness -Human northern hemisphere countries
daily actions as reflected in their - Lack of opportunities for the poor to be
experiences able to have access to markets
- Exploitation of workers and growers
1. ECONOMIC GLOBALIZATION
Integration of Economies Corporate Domination
- The increasing reliance of economies on
each other Key Issues:
- The opportunities to be able to buy and
- Damage to the environment?
sell in any country in the world
- Exploitation of labour?
- The opportunities for labour and capital to
- Monopoly power
locate anywhere in the world
- Economic degradation
- The growth of global markets in finance
- Non-renewable resources
Made possible by: - Damage to cultures
- Technology
2. TECHNOLOGICAL GLOBALIZATION
- Communication networks
- Internet access
- “World Wide Web” has exploded in last 10
- Growth of economic cooperation – years
trading blocs (EU, ASEAN, etc.) - Computers can move money around
- Collapse of ‘communism’ world = “finance capital”
- Movement to free trade - Silicon Valley is 9th largest economy in
world!
MULTI-NATIONAL CORPORATIONS
3. CULTURAL GLOBALIZATION
- OLD: Dutch East India Company?
- 1602 company of Dutch merchants &
- Cultural Imperialism = Dominance of one
independent trading companies culture over others
- Spice trade monopoly in East Asia
- Hollywood movies, MacDonald’s,
- Power to colonize territories & enslave
Disneyland, Starbucks
indigenous people
- Dominance of the English language and
- Indonesia & South Africa invasion of other languages
- Do people all over the world have the
Benefits of Trade:
same taste?
- Increased choice
4. POLITICAL GLOBALIZATION
- Greater potential for growth
- Increase international economies of scale - The United Nations: Global assoc. of
- Greater employment opportunities govts. facilitating cooperation in
- Corporate Expansion international law, security, economic
development, and social equity
Multi-national or trans-national corporations
- Whose interests does the UN represent?
(MNCs or TNCs) – businesses with a
- The US and the UK were the only nations
headquarters in one country but with business
in support of going to war in Iraq
operations in a number of others
- Can a global politics with social values
exist?
 other countries. In some cases, political-military
alliances are sometimes used especially within
Globalization and Westernization the bipolar world where economic power is
utilized to strengthen military capability.
- Westernization – adaptation of western
culture and values 2. Liberalism - forging of relationships and
- Refers to the western value system as it negotiations
influences countries outside of US and
Europe. • >spread of democratic institutions
• Global economic ties,
THEORIES ON GLOBALIZATION • International Organization (UN, ASEAN)

1. Realism - employment of power in world Liberalism is a perspective in international

domination, relations where actors and institutions
emphasize relationships, and negotiations.
• market control- financial profits,
Liberalists observe the importance of interaction
manpower; and communication and focus on solving
• Political – military and territory problems and conflicts affecting them. This idea
• Technology – logistics and systems is very evident in countries where democratic
• Here globalization is related to governance and institutions play major roles in
Americanization and Westernization maintaining national cohesiveness in managing
domestic and international affairs.
The realist perspective explaining globalization
focuses on the shifting distribution of power Example:
among states (Walt, 1998 and Synder, 2004).
They explained that the core idea of dominating When Chinese government asserted its rights
the world is through the employment of power. over the contested West Philippine Sea, Realist
This force comes from different angles, China has shown its military strength to its
depending on the power availability of a nation. neighbors through giving signal of its
However, realists warn that countries may suffer, advantageous capability. On the other hand,
and struggle to maintain its power it will be Liberalist Philippines utilized soft approaches
overreached and used wrongly. through protesting in the International Criminal
Court the act of China pertaining to its
Realists argue that countries open their aggressiveness over the West Philippine Sea.
economies to the world because of two
contending reasons: Liberalists believe in the avoidance of
international conflict and problems, and
1. Financial returns of expanding markets negotiations and dialogues are potential
offer new economic opportunities to the capitalist mechanisms in confronting issues among
(origin country). (Examples: McDonald‘s, parties.
Chevron, Ford, Coca-Cola, Citibank, Microsoft,
and H&M) Three Factors that describe the
Transformation of Political-Economic
2. The continued centrality of political power Structure and Development of Global
and military strength are obvious forces of Interconnectedness:
interdependence and realistic behavior of the 1. Spread of Democracy and Institutions
more and most powerful countries. - Democracy as a frontline of liberalism has
been utilized as a sociopolitical apparatus
Realists see economic alliance and corporation
in challenging political actors who act
as medium of flourishing activities under
beyond their power and control. The
favorable security conditions. Economies tend to
strong participatory presence of citizens
forge partnership if they see advantages from
in key issues affecting the interest and
 welfare of the public could be used as a Alexander Wendt and John Gerard Ruggie are
reference in balancing the interest of the two most prominent founders of this school of
stakeholders. thought. Idealism presents the changing norms
- Liberalists see that democracies are and evolutions of individuals, groups, and states
venues of not using threat to intimidate with the goal of influencing the dynamics and
and harm other nations. Many liberals pattern of social structure.
believe in the vital function played by the
rule of law as safeguard of selfrespect Furthermore, they value the importance of
and social stability. ―appropriateness‖ and ―transparency‖ in
2. Global Economic Ties reshaping and framing rules affecting the general
- Liberalists see economic ties and welfare of its members, may it be individual or
cooperation such as market integration collective. Idealists emphasizes appropriate
and economic alliances as fitting fixtures policies and decisions during the state of conflict
of globalization. The core belief of as it advances the moral aspects and ethical
liberalism is that economic alliance and dynamics of actions.
integrating the domestic economy into a
regional or economic bloc will deliver Role of Ideas and Technology in Globalization
prosperity and security. Opening of
- Ideas are non-material entities of culture;
markets to other countries is described as
it embodies one‘s perception of his social
an act of country‘s commitment to global
world or environment. It defines how
consciousness and moral understanding
values, norms, and beliefs are used by
of multistate interests. (Examples:
governments and institutions in the
European Union‘s Eurozone and
holding and exercise of power (Nau,
Association of Southeast Asian Nations
2008).
Economic Community (AEC)).
- When ideas are used well based on their
3. International Organizations
intended application, development takes
- Liberals believe that the formation of
place. It could be utilized for the linking
leading regional and international
and transfer of knowledge in a
organizations like global commerce and
transnational community of nations,
governance are main instruments in the
scientific, and social innovation, and
maintenance of peace and solidarity.
increase in the understanding of people in
(Examples: Organization of Petroleum
their day-today life. Ideas are necessary
Exporting Countries (OPEC) and North
in this particular scene because the
Atlantic Treaty Organization (NATO))
definitions and concepts constructed are
3. Idealism-use of ethical and legal standards used in interpreting how people act and
(appropriateness and transparency) behave.

Idealists and constructivist hold the notion that Three important technological trends that
values, and norms play pivotal roles in sustaining made significant changes in the interaction of
and reforming the process and works of nations and people
individuals, group, and nations. This theory
1. Knowledge and technology are significant
emphasizes on the functions of ideologies,
determinants of wealth and power.
frameworks, systems, and identities in
The success of an economy of a
understanding globalization and international
country requires pool of resources
order. Its core beliefs centers on the centrality of
like ideas and technology. The
ideas, beliefs, emotions, and collective values
technological advancement of a
that shape the political and economic landscapes
nation is an identity of its economic
of the world.
power.
 2. The fast pace of technological change. Dimensions of Globalization

From industrialization to modernization, 1. World Capitalist Economy

technology has taken a significant role in - Primary force of globalization.
business, government, and individuals. The - Capitalist states are the main engines of
countless forms of technological breakthrough global production and distribution of
change the cycle of the 21st century. The advent goods and services.
of fourth industrial evolution, the global - Capitalists engage in transnational
community is expected to embrace multiple operation maintaining pool of resources
technical changes and technological such as labor and capital.
developments. - Multinational corporations are very powerful
in controlling domestic and foreign market.
3. Dispersed knowledge and technology.
2. Nation –state system
The increasing trends in communication
revolution make it more possible to move data - Sovereignty of states has been
and ideas from people to people and country to emphasized as a primary part of
country at faster and more convenient way. independence and autonomy.
- The concept of sovereignty in a
Innovation as a product of technological globalized world is understood as the
advancement have rendered national borders best form of asserting the existence and
irrelevant in international system. Discoveries operation of a state in order to be
and changes in science and technology make recognized.
markets around the world a borderless contact, - It has been used as a major political unit
making the global economic structure more in international relations.
intertwined. Because of global reach, economies - Nation-states have the right to make their
find this trend as a ground of tough competition, own collective objectives.
with rivals‘ states and institutions who have vast
resources of wealth and power. In addition, 3. World military
resource- poor countries are prone to the
damage of these changes. Technology in this day - Strengthening military power is the
of postmodernity can be used to project global priority of the first world countries as well
power at the same time intimidates countries that as the developing and third world
are technologically behind. For example, African countries.
States and countries from part of the global south - Budget allotted by governments to
have the difficulty to rise and compete with defense and military surged hundred
resource-rich countries. folds with the aim of delivering world-
class defense operation and services to
Three Worlds its people.
- US maintains the rank as the world‘s most
1. First world Countries –high income, high powerful military in terms of military
standard of living, modern infrastructures aligned spending (SIPRI, 2017).
with US

2. Second World Countries – Eastern bloc

aligned with USSR

3. Third World – Neutral and non aligned

countries not economically developed
UNIT [Link] 4. - Production quantity is dictated, consumer
behavior is directed, and market
GLOBAL ECONOMY operation is controlled by a single
authority.
- Refers to interconnected worldwide - Its objective is to mobilize resources for
economic activities that take place the common good of the public and for the
between multiple countries. interest of the nation.
- It can have either a positive or negative - Private individuals have no say in the
impact on the countries involved. economic operation.

Every society must answer Three Economic MIXED ECONOMY

questions:
- Market-driven economies
- What goods and services should be - Combination of market and command
produced? economies.
- How should these goods and services be - Some sectors are under the directions of
produced? the private individuals while other aspects
- Who consumes these goods and of the economy are left within the
services? guidance of the government.
- State can take over the ownership and
ECONOMIC SYSTEM
operation of a private company for the
purpose of maintaining the interest of the
- An organized way in which a state or
nation.
nation produces, allocates, distributes its
resources and apportions goods and
ANALYSIS OF ITS EFFECT OR IMPACT TO
services in the national community.
THE PRESENT PARTICULARLY TO
- Regulate factors of production, including
DEVELOPING COUNTRIES AND
capital, labor, land/physical resources,
INTERNATIONAL RELATIONS
and entrepreneurs.
MARKET ECONOMY: ADVANTAGES
The Global Economy of most countries is
classified into there categories: - Large parts of the society take on a bright,
merry and colorful air as everyone busies
MARKET ECONOMY
himself trying to sell something to
someone else.
- Decision making of private individuals
- Most people work harder
- Economy under the will and interest of the
- Foreign investment is attracted as word
individuals.
gets out about new opportunities for
- Economic freedom to purchase and sell
earning profit
products, services, and properties.
- This condition is not planned by a single
MARKET ECONOMY: DISADVANTAGES
person or group that has the ability to
manipulate or direct the economy solely. - Increase in corruption in all sectors of
- It promotes competition among business society.
and firms. - Workers/businesses face uncertainty as
a result of competition and change: no
COMMAND ECONOMY
guarantee for job.
- Growing social and economic inequality.
- A central economic planning body
handles the entire decision making.
- The quality and quantity of goods and
services produced is based on the
decision of the government.
COMMAND ECONOMY: ADVANTAGES

- Less inequality Globalization 2.0 (1800 – 2000)

- Common good versus profit priority - End of World War II
- Can prevent abuse of monopoly power - Age of Pax Brittanica
- Formation of Market Integration and
COMMAND ECONOMY:DISADVANTAGES Institutionalizations of major economic
activities in global market
- Price controls - Globalization 3.0 (2000 – present)
- Bureaucratic - Period of Technology and Internet
- Threat to democracy and liberty - Age of Information
- Intensification of trade worldwide and
MIXED ECONOMY: ADVANTAGES
development of Multinational corporations
- New players and prominent economic
- Distribute goods and services to where
actors: China, ASEAN, European Union,
they are most needed.
Japan, South Korea
- Encourage innovation to meet customers
need. Thomas Friedman’s Flatteners
- Everyone is free as long as its legal.
1. Collapse of the Berlin Wall
MIXED ECONOMY: DISADVANTAGES 2. Creation of NETSCAPE – commercial internet
browser
- Limited economic freedom 3. Workflows – software applications that
- Not practice to work out very well connected people
- Government decides the amount of tax 4. Outsourcing – shifting of work overseas
on products. 5. Offshoring – transferring of whole factories
overseas
CONCLUSIONS 6. Open Sourcing – creation of free softwares
7. Insourcing – letting in other business in side
- Economic system has an important factor your company to take care of Logistics
in people getting along in a balance of 8. Supply Chaining- supplies come from other
nature. countries and sold in other countries
- It takes a certain number of human hours 9. Informing – development of search engines,
to provide all of the healthcare services google, yahoo
for these millions of people. 10. Steroids – Voice over internet, WIFI
- Focused on the dichotomies and Thomas Friedman’s Crisis
comparisons between market economies
and planned economies. - Ambition Gap
- - US not producing enough engineers and
THOMAS FRIEDMAN’S THE WORLD IS FLAT scientists
- Education Gap
Thomas Friedman’s Phases of Globalization
Globalization 1.0 (1492 – 1800)
- Period of Mercantilism
- Age of Industrialization (rise of British
Economy)
- Inventions:Steam engine, Printing press,
Railway system
- Development of Social Systems and
Institutions: Government, Education
- Exchange of goods within the region