WEEK 1: INTRODUCTION TO GLOBALIZATION 3.

The Early Modern Period (1500-1750)

period between the Enlightenment and the Renaissance
GLOBALIZATION CONCEPTS, MEANINGS,
European Enlightenment project tried to achieve a universal
FEATURES & DIMENSIONS form of morality and law; led to the capitalist world system
Globalization is also referred to as Cultural Imperialism. helped to strengthen globalization
It is a conviction that there is a better culture. 4. The Modern Period (1750-1970)
Some cultures see other cultures as dominant creating an inferior or a
innovations in transportation and communication technology,
nondominant culture.
population explosion, and increase in migration led to more
GLOBALIZATION IS A PHENOMENON. cultural exchanges and transformation of traditional social
It is a collective action relative to their role as citizens, consumers, patterns; process of industrialization also accelerated
producers, and their environment designed to solve common problems. 5. The Contemporary Period (from 1970 to present)
creation, expansion, and acceleration of worldwide
One objective definition of globalization is that of Steger's interdependencies
(2013) -most unbiased and logical of all the definitions-
Globalization refers to the expansion and intensification of Dimensions of Globalization
social relations and consciousness across world-time and There are six dimensions in globalization. These include: economic,
world-space. political, technological, cultural, religious and ecological dimensions.
1. Economic Dimension - extensive development of
1. Globalization has various forms of connectivity such that it can be economic relations across the globe as a result of technology
economic, political, or cultural. These forms affect different degrees of
and the enormous flow of capital that has stimulated trade in both
interconnection.
sources and goods
2. Globalization allows for the expansion and stretching of social relations.
3. Globalization intensifies and accelerates social exchanges and Major Sources of Economic Growth across Countries
activities. Live telecast, shift from snail mail to email and social media are 1. Property rights
proof of this attribute. 2. Regulatory institutions
4. Globalization occurs worldwide. Every person is a global citizen because 3. Institutions for macro-economics
that person thinks about the issues of the world. 4. Stabilization
5. Institutions for social influence
6. Institutions for conflict management
According to the International Monetary Fund (IMF) globalization
is the growing economic interdependence of countries
2. Political Dimension - enlargement and strengthening of
worldwide through increasing volume and variety of cross border
transactions in goods and services and of international capital flows and political interrelations across the globe
also through the more rapid and wide diffusion of technology. Political Issues that Surface in this Dimension
1. The principle of state sovereignty
For Mc Grew (1990), globalization is something that is composed of 2. Increasing impact of various intergovernmental organization
multiple sameness and interconnectedness. To some, it is an 3. Future shapes of regional and global governance
economic process. To others, it is a political process. But for some, it is
defined as a condition. The condition that the world is experiencing could 3. Cultural Dimension - increase in the amount of cultural
be a result also of the existence of international trading, economic blocks flows across the globe; cultural interconnections are at the
(sudden rise in gasoline), multinational companies, UN, EU, and the like. foundations of contemporary globalization
Globalization benefits everyone, it is irreversible, etc. For a political Characteristics:
scientist, it is a challenge to the nation-state. For an economist, 1. Individualism and consumerism - dominant cultural characteristics of
globalization means increased free trade, speedy trade, etc. For a culture our age
expert, it refers to the concept of a global village. 2. Cultural diversity often results hybridization - a constructive interaction
process between global and local characteristics which is often visible in
ATTRIBUTES, QUALITIES, OR food, music, dance, film, fashion, and language.
CHARACTERISTICS OF GLOBALIZATION
4. Religious Dimension - religion is an institutionalized or
Globalization has four characteristics or qualities.
personal set of attitudes, beliefs, and practices relating to
1. It involves both the creation of new social networks and the
or manifesting faithful devotion to an acknowledged
multiplication of existing connections that cut across traditional,
ultimate reality or deity. It is the most important defining element of
political, economic, cultural, and geographical boundaries. any civilization as contrasted with race, language, or way of life.
2. Globalization is reflected in the expansion and the stretching of
social relations, activities, and connections.
JIHADIST GLOBALISM is a religious response to the materialist
Covered in the process of social stretching are: Non-governmental assault by the ungodly West in the rest of the world.
organization Commercial enterprises Social clubs Regional & global
Roman Catholic Teaching of Globalization
institutions and associations (UN, EU, ASEAN, Google and others)
1. Commitment to universal human rights
3. Globalization involves the intensification and acceleration of 2. Commitment to the social nature of the human person
social exchanges and activities.
3. Commitment to the common good
4. Globalization processes do not occur merely at an objective, 4. Solidarity (The principle of Solidarity affirms that membership in the
material level but they also involve the subjective plane of human human family means that all bear responsibility for one another.)
consciousness. 5. Preferential option of the poor (In the Theology of the Incarnation-
Christ God Became poor for us so as to enrich us by his poverty.)
Historical Periods of Globalization 6. Subsidiary (The Catholic Church teaches that decisions should be made
1. The Prehistoric Period (10000 BCE-3500 BCE) at the lowest level in order to achieve the common good.)
hunters and gatherers; globalization was severely limited 7. Justice (Justice is divided in three (3) categories:)
a. Commutative Justice - This aims at fulfilling the terms of
2. The Pre-modern Period (3500 BCE- 1500 CE)
contracts and other promises on both personal and social
invention of writing and the wheel level.
 b. Distributive Justice - This ensures a basic equity in how both WEEK 2: THE GLOBAL ECONOMY
the burden and goods of society are distributed and that
ensures that every person enjoys a basically equal moral and
THE GLOBAL ECONOMY
legal standing apart from differences in wealth, privilege,
talent and achievements Economic globalization - increasing interdependence of world
economies as a result of the growing scale of cross-border trade of
c. Social Justice - This refers to the creation of the conditions in
commodities and services, flow of international capital and wide and
which the first two categories of justice can be realized and
rapid spread of technologies.
the common good identified and defended.
8. Integral Humanism - is concerned with whole person
Two Major Forces for Economic Globalization
5. Ideological Dimensions - ideology is a system of 1. The rapid growth of information in all types of
widely shared ideas, beliefs, norms and values among a productive activities.
group of people. It is often used to legitimize certain political
interests or to defend dominant power structures. Ideology 2. Marketization (A restructuring process that enables state enterprises to
connects human actions with some generalized claims. operate as market-oriented firms by changing the legal environment in which they
operate and can be achieved through reduction of state subsidies, organizational
Globalization - social process of intensifying global
restructuring of management such as corporatization, decentralization, and
interdependence
privatization.)
Globalism - ideology that gives the concept of
neo-liberal values and meanings globalization.
Dimensions of Economic Globalization
Major Ideological Claims of Advocates of 1. The globalization of trade of goods and services
2. The globalization of financial and capital markets
Globalism
3. The globalization of technology and communication
1. Globalization is about the liberalization and global integration
4. The globalization of production
of markets.
2. Globalization is inevitable and irreversible.
3. Nobody is in charge of globalization. Difference between Economic Globalization
4. Globalization benefits everyone. from Internationalization
5. Globalization furthers the spread of democracy in the world. Economic globalization is a functional integration between
internationally dispersed activities; it is a qualitative transformation
PRE-MODERN PERIOD 1. In this period, the invention of writing and the wheel
rather than quantitative change while Internationalization is an
were great social and technological boosts that moved globalization to a new
extension of economic activities between internationally
level.
IDEOLOGICAL DIMENSION 2. It is often used to legitimize certain political
dispersed activities.
interests or to defend dominant power structures.
TECHNOLOGY 3. This is considered as one principal driver of globalization. Economic globalization produces its own major players in the form of
ECONOMIC DIMENSION 4. This refers to the extensive development of transnational corporations (TNCs), the main driving forces of
economic relations across the globe as a result of technology and the enormous economic globalization of the last 100 years or roughly 2/3 of
flow of capital that has stimulated trade in both sources and goods. world export.
CULTURAL DIVERSITY 5. This results in hybridization - a constructive interaction Transnational corporation known as a multinational
process between global and local characteristics which is often visible in food,
corporation is a corporation that has a homebase, but is
music, dance, film, fashion, and language.
registered, operates and has assets or other facilities in at
JIHADIST GLOBALISM 6. This is a religious response to the materialist assault by
the ungodly West in the rest of the world. least one other country at one time.
CONTEMPORARY PERIOD 7. The period of leap in the history of globalization.
GLOBALIZATION 8. This process has effects on the environment, on culture, on Origin of Economic Globalization
political systems, on economic development and prosperity, and on human
The origin of economic globalization can be traced back to the
physical well-being in societies around the world; this is about growing
worldwide connectivity. 16th century with long-distance trade routes like the Silk Road
INDIVIDUALISM/CONSUMERISM 9-10. These are the dominant cultural connecting Asia, Africa, and Europe. However, in the 17th and
characteristics of our age and the drive for economic success stimulated by the 18th centuries, the global economy primarily revolved around
internet and other technological devices that circulate much more easily than trade and exchange rather than production, with world exports
they did in earlier periods.
accounting for less than 2% of World GDP. It wasn't until the 19th
FALSE 1. Today’s globalization, relatively, has more disadvantages in comparison century that globalization began to take a modern form, marked
to earlier waves of globalization. by increased international trade, stability, and a period referred to
TRUE 2. During the Prehistoric Period, globalization was severely limited. as the "golden age of globalization" before World War I. During
TRUE 3. Globalization involves the macro-structures of a global community as this time, there was significant growth in the global economy,
its basic coverage and concern.
TRUE 4. Media empires generated and directed the extensive flow of culture.
averaging nearly 4% per annum, outpacing the growth of national
FALSE 5. Social justice ensures a basic equity in how both the burden and the incomes in developed economies.
goods of society are distributed and that ensures that every person enjoys a
basically equal moral and legal standing apart from differences in wealth, International Monetary Systems
privilege, talent, and achievements. (DISTRIBUTIVE JUSTICE)
TRUE 6. The Roman Catholic teaching of globalization believes that the poor are
International monetary system (IMS) refers to a system
susceptible to the effects of environmental irresponsibility because they live in that forms rules and standards for facilitating
countries where building materials and labor are expensive. international trade among the nations.
TRUE 7. Social networking, social stretching, and controlled social exchanges 1. Gold Standard, a system of backing a country’s currency
and activities are among the positive implications of globalization.
with its gold reserves.
TRUE 8. People engaging in buying and selling from other places in far-away
lands is an example of how globalization works. 2. Bretton Woods System, the aim of which is to create a
FALSE 9. Globalization processes occur on an objective, material level of human stabilized international currency system and ensure a monetary
consciousness. (INVOLVES SUBJECTIVE) stability
TRUE 10. The process of industrialization accelerated during the Modern Period.
3. European Monetary System, an attempt to stabilize 3. International Trade Policy - This defines international
inflation and stop large exchange rate fluctuations between trade policy under their charter like the international economic
European countries. organizations, such as Organization for Economic Co-operation and Development
(OECD), World Trade Organization (WTO) andInternational Monetary Fund (IMF). The
best interests of both developed and developing nations are upheld by the policies.
European Monetary Integration
European Monetary Integration refers to a 30-year long
Trade Policy and International Economy
process that began at the end of the 1960s as a form of monetary In most developed countries where open market economy prevails, the
cooperation intended to reduce the excessive influence of the US international economic organizations support free trade policies.
dollar on domestic exchange rates, and led, through various The following are dependent on globalization: 1. sound trade
attempts, to the creation of a Monetary Union and a common currency. policies for market changes, 2. establishment of free and fair
European Monetary System (EMS) on the other hand is a 1979 trade practices, and 3. expansion of possibilities for booming
arrangement between several European countries which links international trade.
their currencies in an attempt to stabilize the exchange rate. This The World Trade Organization
system was succeeded by the European Economic and Monetary Union The World Trade Organization (WTO) deals with the global rules of
(EMU), an institution of the European Union (EU), which established a trade between nations with the main function of ensuring that
common currency called the euro. trade flows smoothly, predictably and freely. It is the only global
European Financial Stability Mechanism (EFSM) is a international organization dealing with the rules of trade between nations with WTO
permanent fund created by the European Union (EU) to provide agreements, negotiated and signed by the bulk of the world’s trading nations and
emergency assistance to member states within the Union. It ratified in their parliaments at its heart.
raises money through the financial markets, andis guaranteed by the Global Economy Outsourcing Outsourcing
European Commission. An activity that requires search for a partner and relation-specific
European Financial Stability Facility (EFSF) on the other investments that are governed by incomplete contracts.
hand, is an organization created by the European Union to Subcontracting is a central element of the new economy. It is the
provide assistance to member states with unstable economies. practice of assigning part of the obligations and tasks under a contract to
another party known as a subcontractor and especially prevalent in areas
where complex projects are the normlike construction and information
International Trade and Trade Policies technology.
International Trade is the exchange of goods or services Outsourcing is a means of finding a partner with which a firm
along international borders. This type of trade allows for greater can establish bilateral relationships and having the partner
competition and more competitive pricing in the market. undertake relationship-specific investments so that it becomes
The two key concepts in the economics of international trade are able to produce goods and services that fit the firm’s
specialization and comparative advantage. particular needs. One of the most rapidly growing components of
1. Comparative advantage comes in; so long as the two international trade is the outsourcing of intermediate goods and business
countries have different relative efficiencies, the two countries services.
can benefit from trade – the country with absolute advantage will still
benefit by directing its resources to those goods where it is most There are three essential features of a modern
productive and trading for the others outsourcing strategy.
2. Specialization refers to this process: countries as well as 1. Firms must search for partners with the expertise that allows them to
individual businesses can maximize their welfare by specializing in perform the particular activities that are required.
the production of those goods where they are most efficient 2. They must convince the potential suppliers to customize products for
and enjoy the largest advantages over rivals. Specialization in their own specific needs.
international trade happens if a country cannot efficiently produce 3. They must induce the necessary relationship-specific investments in an
an item and obtain it by trading with another country that can. environment with incomplete contracting.
Trade policies on the other hand refer to the regulations and
agreement of foreign countries. It defines standards, goals, rules, Possible Determinants of the Location of
and regulations that pertain to relations between countries. Outsourcing
1. Size of the country can affect the “thickness” of its markets.
Focuses of Trade Policy in International Trade 2. The technology for search affects the cost and likelihood of finding a
suitable partner.
1. Tariffs: These are taxes or duties paid for a particular class
3. The technology for specializing components determines the willingness
of imports or exports. Imposing taxes on imported and exported goods
of a partner to undertake the needed investment in a prototype.
is a right of every country.
4. The contracting environments can impinge on a firm’s ability to induce
2. Trade barriers: These are measures that governments or partners to invest in the relationship.
public authorities introduce to make imported goods or
services less competitive than locally produced goods and
services. They are state-imposed restrictions on trading a particular
WEEK 3: MARKET INTEGRATION
product or with a specific nation. Tariffs, duties, subsidies,
embargoes and quotas are the most common trade barriers. MARKET INTEGRATION
3. Safety: This ensures that imported products in the country Market integration refers to how easily two or more markets
are of high quality. Inspection regulations laid down by public officials can trade with each other. It occurs when prices among different
ensure the safety and quality standards of imported products. locations or related goods follow similar patterns over a long period of
time.
Types of Trade Policies Types of Related Markets where Market
1. National Trade Policy - This safeguards the best interest Integration Occurs
of its trade and citizens. 1. Stock Market Integration
2. Bilateral Trade Policy - To regulate the trade and business This is a condition in which stock markets in different countries
relations between two nations, this policy is formed. Under the trade trend together and depict the same expected risk adjusted
agreement the national trade policies of both the nations and their negotiations are returns.
considered while bilateral trade policy is being formulated.
2. Financial Market Integration The two primary objectives of GATT
It is an open market economy between countries facilitated by 1. ensure that all signatories are treated equitably when accessing foreign
a common currency and the elimination of technical, markets;
regulatory and tax differences encourage free flow of capital 2. to promote progressive liberalization of trade and services.
and investment across borders. It occurs when lending rates in
several different markets begin to move in tandem with one another. WEEK 4: THE GLOBAL INTERSTATE SYSTEM

Global Corporation Globalization and the Nation-States

A global corporation is a business that operates in two or more
Globalization in the early years of the 21st century has not displaced the
countries. It also goes by the name "multinational company".
state. Max Weber, a German social theorist, defines the state
as a compulsory political organization with a centralized
Historical Periods of Global Corporation government that maintains a monopoly of the legitimate use
An approach to the study of globalization that locates the of force within a certain territory.
phenomenon itself in early patterns of trade and exchange is Hedley Bull, a 20th-century international philosopher, states
known as historical globalization. are independent political communities, each of which
American Corporations led the economic recovery and possesses a government and asserts sovereignty in relation to
expansion after the World War II destruction. This period up to a particular portion of the earth’s surface and a particular
the reentry of Japanese and European corporations to the global scene is segment of the human population. This means that governments
viewed as multinational corporations (MNCs). From the end of and constitutions come and go but states readily endure.
World War II to the present is considered the period of
transformation. Nation, on the other hand, is an imagined political community
and imagined as both inherently limited and sovereign.
The Finance Function in a Global Corporation 1. It is imagined because the members of even the smallest nation will never know
Chief Financial Officers (CFOs) must balance the opportunities with most of their fellow members, meet them, or even hear of them, yet in the minds of
each lives the image of their communion.
the challenges of operating in multiple environments in managing their
2. The nation is imagined as limited because even the largest of them,
internal markets in building advantage. These three functions can be created by encompassing perhaps a billion human beings, has finite, if elastic, boundaries,
CFOs through exploiting their internal capital markets. beyond which lie other nations.
1. Financing 3. It is imagined as sovereign because the concept was born in an age in which
A group’s tax bill can be reduced by the CFO like borrowing in countries Enlightenment and Revolution were destroying the legitimacy of the divinely
with high tax rates and lending to operations in countries with lower rates. ordained, hierarchical dynastic realm…nations dream of being free, and if under God,
directly so. The gauge and emblem of this freedom is the sovereign state.
2. Risk Management 4. It is imagined as a community because regardless of actual inequality and
Global firms can offset natural currency exposures through worldwide exploitation that may prevail in each, the nation is always conceived as a deep
operations instead of managing currency exposures through financial horizontal comradeship.
markets.
3. Capital Budgeting In everyday political speech and media commentary, the terms nation and
Getting smarter on valuing investment opportunities CFOs can add value. state are used interchangeably. The term nation-state has a dual concept,
with the modern state going back to the Peace of Westphalia, and
Foreign Direct Investment nationalism tracing back to Protestantism, the Enlightenment, the rise of
the vernacular, with both concepts of nation and state fused in the French
Foreign Direct Investment (FDI) was of corporate origin. It is a
Revolution.
major driver of extended global corporate development. It’s
Nation-states are territorial organizations characterized by
an investment made by a company or individual in one country for
the monopolization of legitimate violence (qua states)
business interests in another country.
Nations-states are membership associations with a collective
identity and a democratic pretension to rule (qua nation).
BRICS Economies
Brazil, Russia, India, China and South Africa (BRICS) is an
acronym for the combined economies of Brazil, Russia, India, China and South Africa.
The State and the Economic Interdependence
The belief that globalization imposes a forced choice upon states either to
BRIC, without South Africa, was originally coined in 2003 by
conform to free market principles or run the risk of being left behind is
Goldman Sachs, which speculates that by 2050 these four economies will be
the most dominant. South Africa was added to the list on April 13, termed into a phrase called Golden Straitjacket, by Thomas
2011 creating "BRICS". These 5 countries were among the fastest growing emerging Friedman, a neoliberalism journalist and advocate, to illustrate the
markets as of 2011. forcing of states into policies that suit the preferences of investment
Further, Brazil, Russia, India and China (BRIC) refer to the idea that China and houses and corporate executives (Electronic Herd) who swiftly move
India will, by 2050, become the world's dominant suppliers of money and resources into countries favored as adaptable to the demands
manufactured goods and services, respectively, while Brazil and of international business and withdraw even more rapidly from countries
Russia will become similarly dominant suppliers of raw deemed uncompetitive.
materials. Due to lower labor and production costs in these countries now There are two things that will happen if a country is
including a fifth nation, South Africa, many companies have also cited BRIC as a in Golden Straitjacket:
source of foreign expansion opportunity i.e. promising economies in which to invest.
The economy grows and politics shrinks.
It is a straitjacket because it narrows the political and economic
General Agreement on Trade in Services
policy choices of those in power to relatively tight parameters.
General Agreement on Trade in Services (GATS) is the
first multilateral agreement covering trade in services which
was negotiated during the last round of multilateral trade
Neoliberalism and Economic Sovereignty
negotiations, called the Uruguay Round, and came into force Neoliberalism is the intensification of the influence and
in 1995. The GATS provides a framework of rules governing services trade, dominance of capital.
establishes a mechanism for countries to make commitments to liberalize trade in Economic sovereignty, on the other hand, is the power of
services and provides a mechanism for resolving disputes between countries. GATS national governments to make decisions independently
has a similar principle with the General Agreement on Tariffs
of those made by other governments.
and Trade (GATT) that deals with trade in goods.
There are four different concepts of sovereignty. 7. Complete Economic Integration
1. International Legal Sovereignty: It refers to the Complete Economic Integration is the final stage of economic
acceptance of a given state as a member of the international integration in which member states completely forego
community. independence of both monetary and fiscal policies.
States that participate in complete economic integration have no control
2. Westphalian Sovereignty: It is based on the principle that
over economic policy, including economic trade rules.
one sovereign state should not interfere in the domestic
8. Political integration
arrangements of another.
Political integration refers to the integration of components within
3. Interdependence Sovereignty: It is the capacity and
political systems; the integration of political systems with
willingness to control flows of people, goods, and capital into and economic, social, and other human systems; and the political
out of the country. processes by which social, economic, and political systems
4. Domestic Sovereignty: It is the capacity of a state to become integrated. Political integration is mainly based on the
choose and implement policies within the territory. welfare-increasing effects of integrated policy making according to the
Economics of European integration.
Economic and Political Integration
European Integration is the process of industrial, political, Theories of European Integration
legal, economic, social and cultural integration of states wholly 1. Neo-functionalism
or partially in Europe. European Integration has primarily come about This theory focuses on the supranational institutions of the EU
through the European Union and its policies. of which the main driving forces of integration are interest
European Union (EU) is an international organization group activity at the European and national levels, political
comprising 28 European countries and governing common party activity, and the role of governments and supranational
economic, social, and security policies. institutions. European integration is mostly seen as an upper class- driven process
- driven by national and international political and economic upper crusts. It is a
Economic Integration is a process and a means by which a
theory of regional integration, building on the work of Ernst B. Haas, an American
group of countries strives to increase their level of welfare. It is political scientist, and Leon Lindberg, also an American political scientist. Jean
an arrangement between different regions that often includes the reduction or Monnet's approach to European integration aimed at integrating individual sectors in
elimination of trade barriers, and the coordination of monetary and fiscal policies. hopes of achieving spill-over effects.
2. Intergovernmentalism
Seven Stages of Economic Integration This theory provides a conceptual explanation of the European integration
1. Preferential Trading Area (PTA) process. The main concept of Intergovernmentalism emphasizes the role
Happens when there’s an agreement on reducing or eliminating of national states in European integration; in other words, it
tariff (tax or duty to be paid on a particular class of imports or exports) argues that "European integration is driven by the interest and
barriers on selected goods imported from other members of actions of nation-states". This theory was suggested by Stanley Hoffmann.
countries within the geographical region or areas. The theory proposed the Logic of Diversity, which 'sets limits to the degree which the
Agreement can either be bilateral (between two countries), or multilateral (several ‘spill-over’ process can limit the freedom of action of the governments.
countries). Free Trade Areas (FTAs) are created when two or more countries in a 3. Liberal Intergovernmentalism
region agree to reduce or eliminate barriers to trade on all goods coming from other This is a dominant political theory developed by Andrew Moravsik in 1993
members. The North Atlantic Free Trade Agreement (NAFTA) is an example of such a to explain European integration. The application of rational
free trade area, and includes the USA, Canada, and Mexico.
institutionalism to the field of European integration is the aim
2. Free Trade Area of this theory. Moravcsik stated that 'state-society relations - the relationship of
Free Trade Agreements (FTAs) or Preferential Trade Agreements (PTAs) state to the domestic and transnational social context in which they are
eliminate import tariffs as well as import quotas between embedded--have a fundamental impact on state behavior in world politics and that
signatory countries. These Agreements can be limited to a few sectors or can the 'universal condition of world politics is globalization.'
encompass all aspects of international trade. FTAs can also include formal 4. New Institutionalism
mechanisms to resolve trade disputes. The North American Free Trade Agreement This theory emphasizes the importance of institutions in the
(NAFTA) is an example of such an arrangement.
process of European integration. Its three key strands are: rational
3. Customs Union
choice, sociological, and historical.
Removal of tariff barriers between members, together with
the acceptance of a common or unified external tariff against
5. Multi-Level Governance
non-members is involved in the Custom Union. This is a new theory of European integration. Writers Liesbet Hooghe
and Gary Marks defined MLG as the dispersion of authority
4. Common Market
across multiple levels of political governance.
One major step towards economic integration is the Common Market.
All barriers to the mobility of people, capital and other
resources within the area in question, as well as eliminating Transnational Activism in States
non-tariff barriers to trade, such as the regulatory treatment Transnational Activism can be defined as the mobilization of
of product standards are removed by CM aside from collective claims by actors located in more than one country
containing the provisions of a customs union. and/or addressing more than one national government and/or
5. Economic Union international governmental organization or another international actor.
The trading bloc that has both a common market between A social movement is a type of group action. It refers to the
members, and a common trade policy towards non-members, organizational structures and strategies that may empower
although members are free to pursue independent oppressed populations to mount effective challenges and
macro-economic policies, is termed an Economic Union. resist the more powerful and advantaged elites.
The best example of an Economic Union is the European Union (EU). The global justice movement describes the loose collection
6. Economic and Monetary Union of individuals and groups often referred to as a “movement of
As a key stage towards complete integration, the Economic and Monetary movements”, who advocate fair trade rules and are negative
Union (EMU) involves a single economic market, a common towards current institutions of global economics such as the
trade policy, a single currency, and a common monetary World Trade Organization. The movement is often labeled the
policy. It represents a major step in the integration of EU economies. anti-globalization movement by the mainstream media.
EMU involves the coordination of economic and fiscal policies, a common The new transnational activism is as multifaceted as
monetary policy, and a common currency, the euro. internationalism.
Social Media and the State Global governance: This is a product of neoliberal paradigm shifts in
international political and economic relations. It is a movement towards political
Social media is computer-based technology that facilitates the integration of transnational actors aimed at negotiating responses to problems that
sharing of ideas and information and the building of virtual networks and affect more than one state or region.
communities. Social media: This is a computer-based technology that facilitates the sharing of
ideas and information and the building of virtual networks and communities.
WEEK 5: Contemporary Global Governance General Agreement on Trade in Services (GATS): This provides a
framework of rules governing services trade, establishes a mechanism for countries
to make commitments to liberalize trade in services and provides a mechanism for
The Contemporary Global Governance resolving disputes between countries.
Economic integration: It is an arrangement between different regions that often
Global governance or world governance is a product of
includes the reduction or elimination of trade barriers, and the coordination of
neo-liberal paradigm shifts in international political and monetary and fiscal policies.
economic relations. It is a movement towards political integration of Financial Market Integration: It is an open market economy between
transnational actors aimed at negotiating responses to problems that countries facilitated by a common currency and the elimination of technical,
affect more than one state or region. It tends to involve institutionalization. regulatory and tax differences to encourage free flow of capital and investment across
borders.
Transnational activism: This can be defined as the mobilization of collective
Four Main Purposes of the UN Charter: claims by actors located in more than one country and/or addressing more than one
A written grant by a country's legislative or sovereign power, by which an institution national government and/or international governmental organization or another
such as a company, college, or city is created and its rights and privileges defined. international actor.
1. Maintaining worldwide peace and security Global corporation: This is a business that operates in two or more countries.
2. Developing relations among nations Market integration: This exists when there are exerted effects that prompt
3. Fostering cooperation between nations in order to solve economic, similar changes or shifts in other markets that focus on related goods on events
occurring within two or more markets.
social, cultural, or humanitarian international problems
Complete Economic Integration: This is the final stage of economic
4. Providing a forum for bringing countries together to meet the UN's integration in which member states completely forego independence of both
purposes and goals monetary and fiscal policies.
There were five stages or main gaps met by the UN in the 21st century. Neo-functionalism: This focuses on the supranational institutions of the
These are knowledge, norms, policy, institutions, and European Union of which the main driving forces of integration are interest group
compliance. A critical hole in any of the five stages can cause efforts at activity at the European and national levels, political party activity, and the role of
problem-solving to collapse. governments and supranational institutions.
Neoliberalism: This is the intensification of the influence and dominance of
capital. It is the elevation of capitalism as a mode of production into an ethic, a set of
The Role of the Nation-State in Globalization political imperatives, and a cultural logic.
Basic Elements of a State United Nations: This is tasked to promote international cooperation and to create
and maintain international order. It is the largest, most familiar, most internationally
1. Territory represented, and most powerful intergovernmental organization in the world.
2. People Economic Union: It requires coordinated monetary and fiscal policies as well as
labor market, regional development, transportation, and industrial policies.
3. Sovereign Power False: There are two things that will happen if a country is in Golden Straitjacket: the
politics grows and the economy shrinks. - economy grows and politics shrinks
Globalization’s Impact on the State True: Foreign direct investment is made open to economies; frequently involves more
than just a capital investment and includes provision of management or technology as
Factors which lead to the increase and acceleration of movement
well.
of people, information, commodities and capital. False: In a globalized world economy, governments are independently deciding on the
1. Lifting of trade barriers case of adopting neoliberal economic policies of privatization, deregulations, and
2. Liberalization of world capital markets reductions in public expenditures - have no alternative but to adopt neoliberal
economic policies
3. Swift technological progress (information technology, True: When governments implement a certain strategy to control the direction of the
transportation and communication) economy, then integration is intentional, while shifting in supply and demand that has
a spillover effect on several markets is another factor of market integration.
False: Westphalian Sovereignty refers to the capacity of a state to choose and
Problems afflicting the world today which are increasingly
implement policies within the territory - Domestic Sovereignty
transnational in nature are those that cannot be solved at the False: The increase in the number of international organizations and the expansion of
national level or State to State negotiations. their functions help enable an individual country's sovereignty to a certain extent –
1. Poverty have undeniably restricted.
True: Combination of invention and social organization resulting in an increase in
2. Environmental pollution worldwide capital and wealth of nation is allowed by modern nation-state system
3. Economic crisis that emerged in the period prior to the end of World War II.
4. Organized crime and terrorism False: Augmenting costs for both consumers and producers and reducing trade
between the countries involved in the agreement are the aims of economic
integration - increasing.
Effects of greater economic and social interdependence to False: Free Trade Areas (FTAs) are created when two or more countries in a region
national decision-making processes. agree to strictly implement restriction barriers to trade on all goods coming from
1. It calls for a transfer of decisions to the international level other members. - reduce or eliminate barriers
False: Creating a unique policy framework that creates strict individual state
2. It requires many decisions to be transferred to local levels of conditions for the functions of the integrated parts of the economy is the aim of
government due to an increase in the demand for participation policy integration. - common policy framework
False: The global justice movement describes the strengthened collection of
individuals and groups often referred to as a “movement of movements”, who
The following can be guaranteed only by the States through
advocate fair trade rules and are positively in agreement to current institutions of
independent courts: global economics such as the World Trade Organization. - loose collection
1. Respect of human rights and justice True: Getting smarter on valuing investment opportunities, Chief Financial Officers
2. Promote the national welfare can add value.
False: Landscape of organizational communication within social movements is
3. Protect the general interest secured and independent of the influences of social media. - shaped and often
fundamentally influenced by social media
Foreign Direct Investment (FDI): It is a major driver of extended global False: To prevent a stance on politics, peacekeeping is kept to be the least important
corporate development. feature of UN activity in peace and security. - In policy motivation, most important
Economic sovereignty: This is the power of national governments to make True: The belief that globalization imposes a forced choice upon states either to
decisions independently of those made by other governments. conform to free market principles or run the risk of being left behind is termed into a
phrase called “Golden Straitjacket”.
WEEK 6: Global Divides: The North and the THE GLOBAL SOUTH
South (focus: Latin America) It refers to developing countries which represent mainly
agrarian economies in Africa, Asia, Latin America. The Global
The first division of the world began as early as 1494. We often hear South tends to be characterized by wars, conflicts, poverty and tyranny. They are
the terms north, south, east and west. In the 1500s, the Treaty of described as low-income countries. People have low income or salaries also. They
suffer from poverty, lack of human rights and the depletion and abuse of natural
Tordesillas was created. This is when the newly discovered lands outside
resources. These are countries that are less developed and characterized by low level of economic
Europe were divided into two: development, low lite expectancy, large inequalities in living standards such as Africa, Latin America,
The WEST belonging to the Crown of Castille (now part of Spain) developing countries in Asia and Middle East.
and the EAST belonging to the Portuguese empire.
THE GLOBAL NORTH
-First World and Second World
The next division of the world occurred during the Cold War -home to all members of GB and PS members of the United Nations Security Council
which started after the end of the WW II. During the war, the USSR and -G8 countries Canada, USA, United Kingdom, France, Italy, Germany, Russia, Japan
the USA were allies. In history, they fought against the Nazis of Germany during the -P5 countries- Russia, USA, United Kingdom, France, China (UN Security Council)
war. However, after World War 2, USA gained so much power and prominence in -90% has enough food and shelter
-better economy, owner of major industries, businesses, commerce and finance
The
terms of politics and economy which gave insecurities and envy to the USSR.
Union of Soviet Socialist Republics was a transcontinental THE GLOBAL SOUTH
country that spanned much of Eurosia. The USSR has 15 soviet -Third World
-10% has enough food and shelter (extreme weather events in South Central America
republics - Russia, Armenia, Azerbajan, Belarus, Estonia, Georgia,
continue to destroy crops and reduce food supply and reserves, with nearly 8 million
Kazakstan, Latvia, Kyrgystan, Lithuania, Moldova,, Ukraine,
people(many small scale farmers) affected- El Salvador, Guatemala, Honduras, and
Uzbekistan, Tajikistan, Turkmenistan, Estonia.
other members of "dry corridors"). As many as 828 million people or 10 percent of the
world's population go to bed hungry each night in 2021.
FIRST WORLD AND SECOND WORLD -source of raw materials of the North
The capitalist economists were considered FIRST WORLD
and communist economists were referred to as SECOND Three Primary Concepts of Global South
WORLD. When we say capitalism, it is an economic and political 1. It refers to economically disadvantaged nation-states and as a
system in which a country's trade and industry are controlled by private post-Cold War alternative to “Third World”.
owners for profits rather than by the state. In communism, there is a 2. The Global South captures a deterritorialized geography of capitalism’s
collective ownership of properties. When we say socialism, it is a externalities and means to account for subjugated peoples within the
combination of capitalism and communism, in this system or ideology, borders of wealthier countries, such that there are economic Souths in the
individuals can still own properties but industrial production or the means geographic North and Norths in the geographic South.
of generating wealth is managed by the government. 3. It refers to the resistant imaginary of a transnational political subject
that results from a shared experience of subjugation under contemporary
The FIRST WORLD encompassed all industrialized, democratic countries, global capitalism.
which were assumed to be allied with the United States in it's struggle
against the Soviet Union. But Finland and Switzerland maintained strict New Internationalism in the Global South
neutrality. They were considered industrialized countries. The ills of the global south are being globalized. Underdeveloped states of
The SECOND WORLD on the industrialized, communist realm of the Soviet the global south are ravaged by merciless IMF policies in the 1980’s. The
Union and its Eastern European satellites, yet it often includes poor economic prescriptions of the IMF as cures are recommended for countries
communist states located elsewhere. This world includes countries that are in the global south.
not rich but not poor also.
THIRD WORLD refers to countries that do not belong to either types of
Asian Regionalism
formal economies. they were colonized by the Europeans. THIRD WORLD is
Regionalism refers to the decentralization of political powers
also defined as a non-allied world and as a global realm of poverty and
or competencies from a higher towards a lower political
underdeveloped.
level. More specifically, it distinguishes between top-down from bottom up
regionalism where top-down regionalism describe the decentralization of
HOW THE THIRD WORLD BECAME THE competencies or the establishment of regional institutions by thE estate while bottom
GLOBAL SOUTH/ THE ORIGIN OF THE THIRD -up includes all patterns of endeavors towards political decentralization from within
the particular region
WORLD
The world was largely divided into several empires in the 19 Century. Each
Asia Pacific and South Asia’s Impact on
empire possessed a civilized central that were more or less primitive or
barbaric Globalization
"Third World" was coined in 1952 by Alfred Sauvy, a French Asia was the central global force in the early modern world economy. It
demographer, anthropologist, and economic historian who compared it was the site of the most important trade routes and in some places more
with the Third Estate, a concept that emerged in the context of the French advanced technology than West such as science and medicine. Colonies in
Revolution. the Asia pacific South Asia influenced the West and vice versa. They were
First Estate refers to the clergy and the monarch often “laboratories of modernity”. Colonialism was not simply a
Second Estate refers to the nobility (duke and duchess) practice of Western Domination But a product of what one thinks of as
Third Estate refers to the balance of French population, contrasting the Western and modern.
poor countries The Asia Pacific and South Asia refer together to the regions of East
(or Northeast) Asia, South Asia, the Pacific Islands, and South Asia. It
includes some of the world's most economically developed states such as
THE GLOBAL NORTH Japan, South Korea, Singapore, and Taiwan, and highly impoverished
It refers to developed societies of Europe and North America, countries such as Cambodia, Laos, and Nepal.
which are characterized by established advancements, wealth, political A foreign policy shift called “Pacific Pivot” was implemented by the
technological stability, zero population growth and dominance of world United States to commit more resources and attention to the region. This
trade and politics. The Global North is a combination of First World and shift which is also called “Atlantic Century” was termed “Pacific Century”
Second World. They are high income countries such as Norway, Australia, New by US Secretary of States Hilary Clinton. He stated that the Asia Pacific has
Zealand, Canada, USA, Belgium, Japan, Iceland, Netherlands, Sweden, and most of
become a key driver of global politics. It is the home to several key allies
Western Europe.
and important emerging powers like China, India, and Indonesia.
One distinguishing feature of regional institutions in Asia Pacific and South
Asia is the adoption of “Open Regionalism” which aims to develop and
maintain cooperation with outside actors. This is meant to resolve the They occupy different positions in their respective societies as well as in
tension between the rise of regional trade agreements and the push for relation to their nation-states as they constitute the expanding regional
global trade as embodied by the World Trade Organization (WTO). consumer market. MIDDLE CLASS
They were created through growth in retail trade, manufacture, banking,
The Region-Making in Southeast Asia and real estate development, and an expanding range of specialist services
such as accounting, advertising, computing, and market research. NEW
Middle-Class Formation:
URBAN MIDDLE CLASSES
The Third Wave This is a foreign policy shift implemented by the United States to commit
Regionalization entails complex and dynamic interactions more resources and attention to the region. PACIFIC PIVOT
between and among governmental and nongovernmental actors
which resulted in hybrid East Asia. The Main engines of hybridization are
Contemporary critics of neoliberal globalization use the north devices as a
explained by the successive waves of regional economic development that is powered
banner to rally countries victimized by the violent economic cures of
by developmental states and national and transnational capitalism. The
middle-class occupies different positions in their respective societies as well as in institutions like the International Monetary Fund. FALSE, global south
relation to their nation-states as they constitute the expanding regional consumer The Second World described countries whose views aligned with NATO and
market capitalism, and the Third World referred to countries that supported
communism and the Soviet Union. FALSE, First World, Second World.
The first wave of regional economic development took place in japan The ills of the global south are being globalized. TRUE
from the mid-1950's to the early 1970s and led to the emergence of a The strongest vehicle for social redistribution and the main mechanism for
middle-class by the early 1970s. The second wave took place between social transfer is regionalism. FALSE, state.
the 1960s and 1980s in SouthKorea, Taiwan, Hongkong and Singapore and Spaces of underdevelopment in developed countries may mirror the
led to the formation of middle -class societies these countries by the 1980s poverty of the global south, and spaces of affluence mirror those of the
global north. TRUE
Two salient points in the history of east Asian The global in the global south does not only mean that the south is the
globe but also signifies that the south has attained high globalization.
middle-class formation
FALSE, continues to be globalized.
1. Middle class formation in Southeast Asia was driven by global and
Globalization is the intensification of economic, political, social, and
regional transnational capitalism working in alliance with national states,
cultural relations across borders and a consciousness of that
while the middle class in Japan, South Korea, and Taiwan were created by
intensification, with a concomitant diminution in the significance of
developmental states and national capitalism.
territorial boundaries. TRUE
2. New urban middle classes in East Asia, whether in Japan, South Korea,
Globalization in the Asia Pacific and South Asia is an external phenomenon
Taiwan, or Southeast Asia, with their middle-class jobs, education, and
being pushed into the region by world powers like Greater Asia and the
income, have in turn created their own new lifestyles commensurate with
Americas. UNITED STATES AND EUROPE
their middle-class income and status.
The global south is not relevant for those who live in countries traditionally
associated with it but also signifies that the south continues to be
Middle Classes in The Philippines globalized. TRUE
New urban middle classes emerged in the post 1986 Philippines. They Regionalism refers to the centralization of political powers or
were created through growth in retail trade, manufacture, banking, real competencies from a higher towards a lower political level. FALSE,
estate development, and an expanding range of specialist services such as decentralization
accounting, advertising, computing, and market research.

Regional Implications of Middle-Class study well 05

Formation in East Asia
Complex historical forces shaped new urban middle
classes. They are products of regional economic development, which has
taken place in waves under the U.S. informal empire over a half century,
first in Japan, then in South Korea, Taiwan, Hongkong, and Singapore, reviewer ni hannahlyn

Thailand, Malaysia, Indonesia and Philippines, andnowinChina. They are

products as well for development states.

This describes the decentralization of competencies or the establishment

of regional institutions by the state. TOP-DOWN REGIONALISM
They are largely characterized as poor and underdeveloped. In these
countries, low levels of education, poor infrastructure, improper
sanitation, and poor access to health care mean living conditions are seen
as inferior to those in the world's more developed nations. THIRD WORLD
COUNTRIES
This is the term for colonies in the Asia Pacific and South Asia influenced by
the West and vice versa. LABORATORIES OF MODERNITY
It includes some of the world’s most economically developed states such as
Japan, South Korea, Singapore, and Taiwan, and highly impoverished
countries such as Cambodia, Laos, and Nepal. ASIA PACIFIC AND SOUTH
ASIA
This aims to develop and maintain cooperation with outside actors. This is
meant to resolve the tension between the rise of regional trade
agreements and the push for global trade as embodied by the World Trade
Organization (WTO). OPEN REGIONALISM
This is the only global international organization dealing with the rules of
trade between nations. WORLD TRADE ORGANIZATION
This refers to these countries' "interconnected histories of colonialism,
neo-imperialism, and differential economic and social change through
which large inequalities in living standards, life expectancy, and access to
resources are maintained. GLOBAL SOUTH