Globalization activities, intermingling local and global

events.
- Globalization is defined as the
process in which people, ideas, and Historical Periods of Globalization
goods spread throughout the world,
- Prehistoric Period (10000 BCE-3500
fostering interaction and integration
BCE): Limited contacts among hunters
among cultures, governments, and
and gatherers due to geographical
economies.
limitations and lack of advanced
- It is described as a process of technology.
interaction and integration among
- Pre-Modern Period (3500 BCE-1500
people, companies, and governments,
CE): Invention of writing and the
driven by international trade,
wheel spurred globalization. The wheel
investment, and information
and roads improved transportation,
technology.
while writing facilitated the spread of
- Globalization affects the ideas.
environment, culture, political systems,
- Early Modern Period (1500-1750):
economic development, prosperity,
European Enlightenment aimed for
and human physical well-being.
universal morality and law. The rise of
- A key driver of globalization is European metropolitan centers and
technology, which transforms capitalism strengthened globalization.
economic life and provides tools for
- Modern Period (1750-1970):
identifying opportunities, analyzing
Innovations in transportation and
trends, transferring assets, and
communication, population explosion,
collaborating with partners.
and migration increased cultural
- The International Monetary Fund exchanges and transformed social
(IMF) defines globalization as the patterns. Industrialization accelerated.
growing economic interdependence of
- Contemporary Period (1970-Presen):
countries through increased cross-
Dramatic creation, expansion, and
border transactions, international
acceleration of worldwide
capital flows, and rapid technology
interdependencies marked a
diffusion.
significant leap in globalization.
Attributes, Qualities, or
Dimensions of Globalization
Characteristics of Globalization
- Economic Dimension
- It involves creating new social
networks and multiplying existing - Extensive development of
connections across traditional economic relations through technology
boundaries. and capital flow.
- It is reflected in the expansion and - Major players include international
stretching of social relations, activities, corporations (e.g., General Motors,
and connections. Walmart, Mitsubishi) and institutions
(IMF, World Bank, WTO).
- It includes the intensification and
acceleration of social exchanges and - Inequities arise between rich and
poor countries.
 - Major sources of economic growth human person, the common good, and
include property rights, regulatory solidarity.
institutions, macro-economics,
- Principles also cover the
stabilization, social influence, and
preferential option for the poor,
conflict management.
subsidiarity, justice, and integral
- Political Dimension humanism.
- Enlargement and strengthening of - Ideological Dimension
political interrelations.
- Ideology is a system of shared
- Key issues include state ideas used to legitimize political
sovereignty, the impact of interests.
intergovernmental organizations, and
- Globalization intensifies global
the future of regional and global
interdependence, while globalism
governance.
provides neo-liberal values and
- Cultural Dimension meanings.
- Increased cultural flows with - Advocates claim globalization
cultural interconnections at the involves liberalization, is inevitable,
foundation. benefits everyone, and spreads
democracy.
- Individualism and consumerism,
driven by the internet and technology, - The neoliberal explanation is
circulate widely. politically motivated, stabilizing power
relations and shaping identities.
- Transactional media corporations
play a significant role in disseminating Unit II: The Global Economy
popular culture, leading to
1. Global Economy
homogenized culture (e.g., fast food).
Economic globalization is best
- Religious Dimension
explained by the accumulation,
- Religion is a personal or importation, and exportation of goods
institutionalized set of beliefs and and commodities from one country to
practices and a defining element of others and vice-versa.
civilization.
Economic globalization refers to the
- It can be a defining element in increasing interdependence of world
conflicts. economies as a result of the growing
scale of cross-border trade of
- Jihadist globalism is a response to
commodities and services, the flow of
the materialist West, seeking to
international capital, and the wide and
destroy alien influences and convert
rapid spread of technologies
the global imaginary into political
(Shangquan, 2000).
agendas.
Economic globalization is a historical
- Catholic teachings on globalization
process that was the outcome of
include commitment to universal
human evolution from traditional and
human rights, the social nature of the
primitive technology to the present
technological advancement. It refers to
the increasing integration of allowing its local businesses to cover
economies around the world, mainly the shortfall of certain products.
through the movement of goods,
3. Product Standards: A kind of
services, and capital across borders.
barrier that imposes strict standards on
Interconnected Dimensions of imported products which may make it
Economic Globalization: difficult for different importing countries
to bring their goods into the local
Goods and Services
market.
Capital
4. Government Subsidies: A
Communication and Technology strategy of the national government by
which incentives and cash payments
Market Exchange are distributed to domestic businesses
Economies Associated with to encourage them to expand their
Economic Globalization market globally by increasing
international export. Thus, the
1. Protectionism government may strengthen its local
Protectionism refers to government market.
policies that restrict international trade Advantages of Protectionism:
by imposing tariffs, quotas, product
standards, and subsidies. Taxes imposed on exporter
countries may increase government
Reasons for the implementation of revenues.
strict policies:
Strict and rigid policies may protect
Its goal is to improve the domestic domestic products.
economy by forcing its citizens either
directly or indirectly to purchase local Encourages the exportation of
products instead of imported products. national products which may expand
their products globally.
For safety and quality concerns of
both imported and exported products. Disadvantages of Protectionism:

Primary policy tools: Protectionism policies often support

other countries to make their own
1. Tariffs: These are charges to protection policies as well. Hence, it
importing countries in the form of inhibits the exportation of each other's
either money or goods that will serve products, which may result in less
as payment for allowing its profit.
international products to be sold in the
local market. 2. Trade Liberalization

2. Import Quotas: A kind of tariff

that lessens the number of products
that can be imported for a certain
period of time. The implementation of
import quotas helps the government
protect its domestic businesses by
Trade liberalization refers to the economic growth, the benefits are not
process of reducing or eliminating always distributed equally. Certain
barriers to international trade, such as sectors or individuals may benefit
tariffs, quotas, and other restrictions. disproportionately, leading to widening
The goal of trade liberalization is to income inequality within a country.
promote free trade, increase economic This is particularly true if the gains
efficiency, and foster global economic from trade are concentrated among
integration. capital owners or skilled workers, while
low-skilled workers face stagnant or
Advantages of Trade Liberalization:
declining wages due to increased
As it promotes free trade between and competition.
among countries, the cost of importing
Loss of Sovereignty: Trade
nations in bringing their goods to other
liberalization often involves the signing
countries is most likely to be lessened.
of trade agreements that require
Promotes efficient use and allocation countries to adhere to certain rules
of world resources. and regulations, which may limit their
ability to pursue certain domestic
Increases Capital Flow. policies.
Allows developing countries access to Social Dislocation: Rapid changes in
the heavily protected markets of the trade patterns can disrupt local
developed world, thus helping promote communities and traditional ways of
development. life, particularly in regions heavily
It encourages specialization among reliant on industries that are negatively
countries by maximizing their affected by increased competition.
capabilities, whether to manufacture This can lead to social dislocation, as
goods or provide services. individuals and communities struggle
to adapt to economic changes and find
It can lead to a higher efficiency of alternative sources of livelihood.
producers.
Main Actors of Economic
It can attract foreign investment. Globalization
Disadvantages of Trade [Link] Companies (MNCs):
Liberalization: Also known as Transnational
Job Displacement: Trade Corporations (TNCs), these are large
liberalization can lead to job losses in companies that operate in multiple
certain industries, particularly those countries.
that face increased competition from Foreign Direct Investment (FDI):
imports. When industries face Investing in factories, offices, and
competition from lower-cost producers other assets in different countries. This
abroad, they may be forced to creates jobs in host countries and
downsize or even shut down, leading integrates production chains globally.
to unemployment or underemployment
for workers in those sectors. International Trade: Importing and
exporting goods and services across
Income Inequality: While trade borders. This increases competition
liberalization can lead to overall
and product variety for consumers globalized economy. They play a vital
worldwide. role in the production of goods and
services that are traded internationally.
Global Supply Chains: MNCs often
source materials, manufacture goods, 5. Consumers: A consumer is the
and sell products in different countries, final individual or group that purchases
creating a complex web of and uses goods or services produced
international connections. through the global economic system.
Their decisions and behaviors
2. State (Government): National
significantly impact the direction of
governments play a crucial role in
globalization.
shaping the economic environment:
World System Theory
Trade Policy: Setting tariffs, quotas,
and trade agreements that influence According to Wallerstein, "a world-
the flow of goods and services across system is a social system that has
borders. boundaries, structures, member
groups, rules of legitimation, and
Regulations: Establishing laws that
coherence." Wallerstein divides the
govern business practices,
world into three main categories: core,
environmental standards, and labor
semi-periphery, and periphery.
conditions. These regulations can
impact the attractiveness of a country Core vs. Periphery: The core and
for foreign investment. periphery are the most crucial
categories. They differ geographically,
Infrastructure Development:
culturally, and economically.
Investing in transportation networks,
communication systems, and energy Periphery: Regions focus on labor-
grids that facilitate global trade and intensive production, often exporting
investment. raw materials and agricultural
products.
3. Regulatory Institutions:
Core: Regions dominate with capital-
World Trade Organization (WTO):
intensive production, controlling
Sets the framework for international
finance, manufacturing, and trade.
trade agreements and settles trade
disputes between countries. The core-periphery relationship is not
accidental but a built-in structure of the
International Monetary Fund (IMF):
world-system.
Promotes international financial
cooperation and stability by providing Core countries benefit from exploiting
loans and technical assistance to peripheral regions.
member countries.
Semi-Periphery: These countries
World Bank: Provides loans and occupy a middle ground, having some
grants to developing countries to characteristics of both core and
support economic growth and poverty periphery. They act as a buffer zone
reduction. and may benefit from trade with both
core and periphery but remain
4. Laborers: Laborers, also referred
vulnerable to exploitation by core
to as workers, are the backbone of the
countries.
Hierarchy: Levels of Economic Integration
Core: Wealthy nations, strong and Free Trade: Aims to reduce tariffs
powerful technological advancement, significantly between or among
benefit the most, exporter producer of partnered countries. The general goal
goods. of free trade agreements is to develop
economies of scale and comparative
Semi-Periphery: Served as buffers,
advantages, which promotes economic
retained limited access to international
efficiency. A free trade area (FTA) is
banking and the production of high-
where there are no import tariffs or
cost quantity manufactured goods.
quotas on products from one country
More technologically advanced than
entering another.
the periphery but less technologically
advanced than core countries. Common Market: A common market is
a formal agreement where a group is
Peripheral: They lacked a strong
formed amongst several countries that
central government or were controlled
adopt a common external tariff. In a
by other states. They exported
common market, countries also allow
materials to the core. They relied on
free trade and free movement of labor
coercive labor practices. Least
and capital among the members of the
industrialized.
group. The trade arrangement is
Economic Integration aimed at providing improved economic
benefits to all.
El-Agraa (1998) defines economic
integration as the discriminatory Preferential Trade Area: A preferential
removal of all trade impediments trade area occurs where there is
between at least two participating reduced protectionism in the trade of
countries and the establishment of goods/services amongst the countries
certain elements of coordination and involved. This could just be between
cooperation between them. two countries, i.e., a bilateral trade
agreement. A preferential trade area is
An arrangement among nations that a group of countries that agree to
typically includes the reduction or reduce tariffs and other trade barriers
elimination of trade barriers and the on certain goods and services among
coordination of monetary and fiscal themselves while maintaining their
policies. Economic integration aims to own barriers against imports from non-
reduce costs for both consumers and member countries. The goal of a
producers and to increase trade preferential trade area is to encourage
between the countries involved in the trade among member countries and
agreement. boost their economic development.
What do we mean by economic Economic Union: An economic union
integration? A group of countries is an agreement between two or more
removes trade restrictions among each nations to allow goods, services,
other but maintains restrictions on money, and workers to move over
imports from non-member countries. borders freely. The countries may also
The European Union, for example, coordinate social and financial policies
represents complete economic to support this common market.
integration.
Market Integration Lowering costs.
A state of affairs or a process 3. Conglomeration:
involving attempts to combine national
A combination of agencies or
economies into a larger economic
activities not directly related to each
region. Occurs when prices among
other may, when it operates under a
different locations or related goods
unified management, be termed a
follow similar patterns over a long
conglomeration.
period.
Global Economy - Refers to the
Reasons for Market Integration
international exchange of goods and
To remove transaction costs. services that is expressed in monetary
units of money.
Foster competition.
Global Interstate System
Improve security of supply.
The Global Interstate System is
Types of Market Integration
an institutional arrangement of
1. Horizontal Integration: governance that addresses regional or
global issues that go beyond the scope
When a firm or agency gains of a nation-state (Chase-Dunn, 1981).
control of other firms or agencies
performing similar marketing functions What is an Interstate System?
at the same level in the marketing
Chase-Dunn defines an
sequence.
interstate system as "a system of
Effects: unequally powerful and competing
states in which no single state is
Larger share of the market. capable of imposing control on all
Reduce competition. others. These states are in interaction
with one another in a set of shifting
Attaining economies of scale. alliance and wars and changes in
2. Vertical Integration: relative power of states upsets any
temporary set of alliances, leading to a
When a firm performs more restructuring of the balance of power"
than one activity in the sequence of (Chase-Dunn, 1981:20).
the marketing process.
An interstate system is the form
Types: of governance for globalization
Forward Integration: takes (Chase-Dunn, 1981).
activities to the consumption function. Effects of Globalization on
Backward Integration: Governments
combination of sources of supply. As the world becomes more
Effects: interconnected through politics, trade,
and communications, the role of
Risk reduction. nation-states and governments is
More profits. shifting.
National and local policies are not only With growing globalization, the
based on local context but also governance of global relations goes
international and global realities. beyond nation-state governments.
An example of a global treaty is the Nation-state governments’ scale and
Montreal Protocol on Substances that scope are limited in addressing
Deplete the Ozone Layer. regional and global issues like climate
change, cybercrime, and global
Montreal Protocol on Substances
financial crises.
that Deplete the Ozone Layer
Works by authors like Dryzek (2012)
Aims to phase out the production of
and Castells (2008) show the growing
numerous substances responsible for
emphasis on the role of non-state
ozone depletion, signed on August 26,
actors in global governance.
1987, with 46 country signatories (US
EPA, 2017). Non-State Actor
Definitive evidence of the Montreal Non-governmental organizations,
Protocol’s success was discussed by volunteer organizations, and interest
NASA and projected that ozone levels groups.
will return to 1980 levels by 2032
The increased number of international
(Watts, 2018).
organizations and the expansion of
This is an example of how international their functions have undeniably
agreements and efforts could fight restricted a country’s sovereignty to a
borderless challenges and issues certain extent.
specifically by domesticating
Several institutions govern
international norms.
international relations and affairs.
How does Globalization Negatively
Affect Local Government and Local
Communities? Institution that Governs
International Relations and Affairs
A local government might want to
attract major global investors by United Nations:
setting up a manufacturing firm, which
could create jobs and generate  With 192 member states
income.  Seen as a facilitator of global
governance
However, this may involve converting  Has regional commissions
agricultural land into an industrial composed of officials from
zone, displacing farmers and affecting different countries in charge of
agricultural production. making certain laws that
promulgate certain rights for
Global corporations may demand
economic and social
lower taxes and wages to finalize their
development
investment, arguing they will create
more jobs and income. World Bank (WB):
Institution that Governs  An international financial
Globalization institution that provides loans to
 countries of the world for capital and increase resilience of
projects livelihoods and food.
 Established during the Bretton
UNESCO: Contributes to peace
Woods Conference in 1944.
and security by promoting
International Monetary Fund international collaboration through
(IMF): Looks at the stability of the educational, scientific, and cultural
international monetary system by reforms.
monitoring global economy, lends
International Civil Aviation
to countries, and provides policy
Organization (ICAO);
and technical advisory functions to
International Maritime
members (Maverick, 2019).
Organization (IMO); International
World Trade Organization Telecommunication Union (ITU);
(WTO): Regulates international The World Intellectual Property
trades, ensures smooth flow of Organization (WIPO): For
trade, and provides a forum for regulations of international air
negotiations for trade agreements transport; shipping and prevention
among countries and regions of the of pollution at sea; developing
world (International Monetary Fund, standards on ICT; international
2019). intellectual property rights
standards.
World Health Organization
(WHO): Responsible for global Globalism:
researches on medicines and
 Is an ideology based on the
vaccines including the World
belief that the flow of people,
Health Report and Survey.
goods, and information
Organization for Economic should flow freely across
Cooperation and Development national borders
(OECD): Thirty-five member (Roudometof, 2005).
countries aim to stimulate  Focuses more on the
economic progress and world trade economic aspects of the
by providing a platform to compare exchanges among countries
policy experiences and identify and society (Sargent, 2008).
good practices in domestic and
Internationalism:
international economic policies and
programs of its members.  Defines as political,
economic, and cultural
International Labor Organization
cooperation between nations
(ILO): Deals with labor problems
(Roudometof, 2005).
and international labor standards
 Emphasizes diversity and
and social protection for workers.
celebrates multiculturalism,
Food and Agriculture while globalism focuses
Organization of the United more on the economic
Nations (FAQ): Leads international aspects of the exchanges
efforts to defeat hunger, eliminate among countries and society
food insecurity and malnutrition, (Sargent, 2008).