THE CONTEMPORARY

WORLD
LESSON 1
GLOBALIZATION
RICHARD R. BERMUNDO, EDD
INSTRUCTOR
WHAT IS 'GLOBALIZATION'?

• It is a process of interaction and integration

among the people, companies and governments
of different nations, a procesd driven by
international trade and investments and aided
by information technology.
• Globalization can be also be defined as the free
movement of goods, services and people across
the world in seamless and integrated manner.
• It makes the world more accessible to everyone.
• World Health Organization define
globalization, is generally understood to
include two inter-related elements:
1. the opening of international borders to
increasingly fast flows of goods,
services, finance, people and ideas.
2. the changes in institutions and policies
at national and international levels that
facilitate or promote such flows.
Meaning, it has the potential for both
positive and negative effects on
development and health.
• Thomas Friedman define globalization as, as
the inexorable integration of markets,
nation states, and technologies to a degree
never witnessed before in a way that is
enabling individuals, corporations and
nation-states to reach around the world
farther, faster, deeper, and cheaper than
ever before.
• Meanwhile, according to Manfred Steger,
“the term globalization applies to a set of
social processes that appear to transform
our present social condition of weakening
nationality into one of globality.”
THE BENEFITS OF
GLOBALIZATION ARE:
• More international trade.
• More wealth in the world.
• Improve living standards.
• Increased creativity and innovation.
• More goods & services generally
available at lower prices.
• Easy access to foreign culture.
 TYPES OF
GLOBALIZATION
ECONOMIC GLOBALIZATION

• Economic globalization refers to interconnectedness

of economies through trade and exchange of
resources.
• It also refers to the widespread international
movements of good, services, capital, technology and
information.
• Economic globalization primarily comprises the
globalization of production, finance, markets,
technology, organizational regimes, institutions,
corporations, and labour.
SOCIAL GLOBALIZATION

• It pertains to human interaction within cultural

communities, encompassing topics like family,
religion, work and education.
• It is a global interconnectedness between the
people.
• It is also a measure of how easily information
and ideas pass between people in their own
country and between different countries
(includes access to internet and social media
networks).
POLITICAL GLOBALIZATION

• Refers to the amount of political co-

operation that exist between different
countries.
• Political globalization refers to the growth
of the worldwide political system, both in
size and complexity.
• It also refers to the organization of different
countries into trade blocs.
WHAT CAUSES
GLOBALIZATION?
The primary components that led to the intergration of
international market are:
• International finance—sometimes known as
international macroeconomics—is a section of financial
economics that deals with the monetary interactions
that occur between two or more countries. This section
is concerned with topics that include foreign direct
investment and currency exchange rates.
• Multinational production, defined as production that is
carried out by firms outside of their country of origin.
• Trade is a type of economic globalization and a
measure (economic indicator) of economic integration.
It represents the proportion of all production that
crosses the boundaries of a country, as well as the
number of jobs in that country dependent upon
external trade.
 The three components leads to
variation in basic causes of
globalization . For example,
various governments possess all
of political incentives they need to
regulate the movement of cross-
border capital, but the revolution
of information technology has
made it impossible.
HOW DOES TECHNOLOGY
DRIVE GLOBALIZATION?

Technological advancement drives

globalization by making it easier for people,
goods, and ideas to move across borders. For
example, people from all over the world can
now share their ideas in just a second or
minute through the internet, which has
enhanced communication and connectivity.
THE PROS AND CONS
OF GLOBALIZATION
PROS OF GLOBALIZATION

1. It encourages free trade. Without borders in place,

consumers can purchase items from anywhere in the
world at a reduced cost. There would be fewer barriers
in place, like tariffs, sales taxes, or subsidies because
there wouldn’t be nations in place that could add
restrictions.
2. More trade means the potential for more jobs. When
there are fewer barriers in place to purchase items,
then consumers will generally purchase more things.
This creates the foundation that businesses need to
create more jobs.
3. It eliminates currency manipulation. Many countries
today manipulate their currencies to benefit their local
economy. Even the three “primary” currencies of the
world do this: the pound, the euro, and the dollar.
4. Open borders mean more opportunities to develop
poor areas of the world. There are many nations in
the world today that are in a state of entry-level
industrialization. Poverty is a feature in many of
these developing countries. Through the process of
globalization, the removal of borders allows the
people in these areas to experience greater prosperity
because each area gains the ability to access what
they need.
5. It allows for open lines of communication.
When borders are removed, people have the ability to
communicate with one another more freely. There is a
greater intermingling of cultures, which allows
people to have a greater perspective about the world.
6. We could begin pooling resources to do great
things. Multiple countries are running space
programs right now. Some private businesses are
doing the same thing. If they could pool their
resources and combine talents to work toward one
single goal instead of having multiple agencies all
trying to do the same thing, we could be more
efficient with our innovation in the area of space
exploration. The same principle could be applied to
virtually any industry or idea.
CONS OF GLOBALIZATION

1. It generally makes the rich become rich and the poor to

become mired in poverty. This means the rich can access
what they want or need to become richer, but the poor
get trapped in poverty because they don’t have the
means to access success.
2. Jobs get transferred to lower-cost areas.
Jobs can be created through globalism, but they tend to
be created in the areas where labor costs are the
cheapest.
3. Globalism creates a culture of fear.
Even in jobs aren’t exported to cheaper areas of the
planet, business owners can hold the threat of doing so
over the heads of their current workers to gain salary
concessions.
4. It creates a political system where the biggest and
the richest have influence. The largest businesses and
wealthiest people could hoard global resources for
themselves through whatever government was put into
place, enhancing the social inequalities that are already
being seen on smaller scales.

5. Diseases travel faster in a world that is globalized.

When people stay within their own regions, there are
fewer problems with communicable diseases. If there
were no borders and people could travel freely to
wherever they wished to go, this issue would cause even
the most remote parts of the planet to be exposed to
potentially deadly health concerns.
6. It could have a negative impact on the
environment. Let’s say that production
levels increase because everyone sees a
boost in their economic circumstances.
This would potentially increase pollution
levels that could acidify the air, the
ocean, and cause more issues with global
warming.
CONCLUSION
• Globalization is the key factor for international business.

• Globalization is an event occurred in unprecedented pace

and gives definition to the world market. It is still public
debate whether it is beneficial or detrimental most especially
to the average citizens. It may directly on indirectly affect
everyone, but not everyone gets the same benefits.

• With globalization, there comes a higher level of thinking

and strategizing.

• Globalization has contributed to global warming, climate

change and the overuse of natural resources. An increase in
the demand for good has boosted manufacturing and
industrialization.

• The globalization pros and cons show that there would be

many benefits to a borderless world, but there would also be
great challenges which would need to be solved for it to be a
workable solution. Whether one supports a world without
borders or supports the current state of affairs, one truth
REFERENCE:

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QUESTIONS
1. Define globalization as, as the inexorable integration of
markets, nation state and technologies.
a) Manfred Steger
b) Christopher Columbus
c) Thomas Friedman

2. According to him, the term globalization applies to a set

of social process that appear to transform but presents
social condition of weakening nationality into one of
globality.
d) Manfred Steger
e) Christopher Columbus
f) Thomas Friedman
3. A process of interaction and integration among the
people, companies and government of different nation.
a) Socialization
b) Globalization
c) Rationalization

4. They define globalization as generally, the opening

of international borders to increasingly fast flow of
goods, services, finance, people and ideas.
d) Department of Education
e) World Health Organization
f) European Union
5. Refers to interconnectedness of economies
through trends and exchange of resources.
a) Social Globalization
b) Economic Globalization
c) Political Globalization

6. Refers to the amount of political co-operation

that exist between countries.
d) Social Globalization
e) Economic Globalization
f) Political Globalization
7. Pertains to human interactions within cultural
communities, encompassing topics like family, religion,
work and education.
a) Economic Globalization
b) Political Globalization
c) Social Globalization

8. An advancement that drives globalization by making

it easier for people, goods, and ideas to move across
borders.
d) Communication
e) Technological
f) Socialization
9. A global interconnectedness between the
people.
a) Social Globalization
b) Political Globalization
c) Economic Globalization