Module 1 - ORGANIZATION/STRUCTURE OF
GLOBALIZATION
Table of contents
1. Introduction/Overview
2. Learning Outcomes
3. Lesson 1- Module 1
1. Introduction/Overview
The purpose of this module is to make the globalization phenomenon visible. It indicates that
reminders of how international organizations have shifted their focus to a global scale are
abundant in the daily press. News stories from both domestic and international sources usually
touch on topics including global trade, exchange rates, stock market winners and losers,
currency volatility, and rising oil prices. Given that everyone is involved in these global activities,
it is evident that the world is no longer separated.
Examining the relationships between established and up-and-coming countries, assessing
technological disruptions, and negotiating the intricacies of a quickly changing international
order are all necessary to comprehend the dynamics of the modern world. It is crucial to take
into account the historical background that has influenced the present as we negotiate its
complexity.
2. Learning Outcomes
Learning Outcomes
At the end of the module, the students are able to:
Define and explain what is globalization
Analyze the interrelated factors of globalization
Interpret how governments influence competitiveness
Explain why globalization is uneven based on the three ranking standards.
3. Lesson 1- Module 1
Definitions of Globalization
a. In the academe under the new General Education Curriculum, the best scholarly definition
of globalization is provided by Manfred Steger (2014, p. 184). He described globalization as “the
expansion and intensification of social relations and consciousness across world-time and
across world-space. The first key word expansion may refer to the creation of the international
marketplace including the international cultural environment where education, social institutions,
material elements are connected and occur at different levels. On the other hand, intensification
refers to the expansion, stretching and acceleration of the networks of the former.
b. In another view, globalization is defined as the process through which an increasingly
flow of ideas, people, goods and services, technology and capital leads to the integration of
economics and societies at a speed unprecedented in effect and outcomes (as cited by Danug
& Campanilla, 2004, p.81).
c. Anthropologist Arjun Appadurai (1996) argues that there are multiple globalizations and it
depends on what is being globalized. It could be an idea, material, and nonmaterial culture. The
globalization system which is aptly called the digital age has something to do with the context,
character, content and conduct of power and shaped up with the changing configuration of
power of the individuals, group of the individuals, associations, corporations, institutions and the
nation-state (Danug & Campanilla , p.83)
d. In the context of economics, it is defined as the recognition by organizations that business
must have a global, not local focus. It refers to a new perspective or attitude about relationships
with other people in other nations. Economically, it also refers to the unprecedented scope,
shape, number and complexity of business relationship conducted across international
boundaries. The phenomenon of globalization according to Stoner et al. (1995) as cited by
Abelos, et al. (2016) consists of three interrelated factors – proximity, location and attitude.
2. The Interrelated Factors as Discussed in the Three Facets of Globalization
Proximity
> First, organizations now operate in much closer proximity than ever before to a greater
number and range of customers, competitors, suppliers, and government regulators. This
proximity, a function of the “shrinking globe,” is partly a matter of time, as today’s
telecommunications technology allows people around the world to share voice, video, and
facsimile information in minutes.
Location
> Second, the location and integration of an organization’s operations across several
international boundaries is part of globalization.
Attitude
> Third, globalization refers to a new, open behavior about practicing management
internationally. This attitude combines a curiosity about the world outside one’s national borders
with a willingness to develop the capabilities for participating in the global economy.
3. How Governments Influence Competitiveness
According to Young (1995 as cited by Abelos [Link], 2006), he concluded that both
government and business need to place a higher priority on international competitiveness.
Among specific recommendations, he suggested that responsibility for formulating international
trade policy and encouraging exports (now fragmented among multiple government agencies)
should be unified.
Global managers thus operate in a climate marked by more aggressive government efforts
to influence how they run their organizations. According to Porter (1990), those efforts have
influenced global competitiveness.
With striking regularity, firms from one or two nations achieve disproportionate worldwide
success in particular industries. Some national governments seem more stimulating to
advancement and progress than others.
Porter traces that success to a significant degree, to the economic climate institutions,
and policies attributable to government actions.
4. Globalization and Competitiveness
The term competitiveness is viewed as an idea that applies in a number of different
settings. It refers to the relative standing of one competitor against other competitors.
Competitiveness is like the game of the musical chairs. There are finite numbers of places to sit,
and some are more desirable than others.
Measuring Globalization
There is no doubt we now live in a global marketplace. In scores of countries around the
globe, the same products and services are available to consumers and organizations. These
range from McDonald’s restaurants to Sony electronic equipment to Nokia and Samsung
cellular phones. But ask the average of consumers where the global array of goods comes from
and you will hear several answers that reflect differing perceptions. Throughout the world,
McDonald’s is the quintessential American fast-food restaurant, just as the Doc Martens is
synonymous with British youth culture. But for many other product, brands, and companies, the
sense of identity with a particular country is becoming blurred. Which brands are Japanese, or
Americans, or German? Does a Big Mac taste the same everywhere in the world?
There are many alternatives on how to measure globalization per country in the world. The
KOF Swiss Economic Institute offers a useful ranking into three broad categories as follows:
● Economic globalization measures long distance flow of goods, capital, and services as
well as information and perception that company market exchanges;
● Social globalization measures the spread of ideas, information, images and people.
● Political globalization measures the diffusion of government policies in terms of the
number of embassies and consulates in a country, membership in international
organization, likewise participation of a country in United Nations peace missions and
similar advocates.
In general, most of the countries in higher ranking are affluent countries or the so called” Global
North.” With the exception of Singapore, which is situated geographically in the Global South,
the rest are economically well-off. The statistics shows the top 36 nations (among the top 50 in
the globalization index on the data constructed in 2015. The index is based on three dimensions
or core sets of indicators namely economic, social and political.