Consolidated Reviewer on

Globalization
- The term “globalization” appeared in the 1930s but emerged on a worldwide scale in the
1990s.
- More so with the emergence of mass media and technology, globalization has
encapsulated the world to the point that its temporary halt was felt during the
COVID-19 Pandemic.

Key Concepts——————————————————————

1. GLOBALITY
Definition: It's like a situation—a social condition—where the whole world is super
connected in terms of money, politics, culture, and the environment. This
connection challenges the traditional borders that divide countries.
Imagine: Picture a world where everything is so linked that it's hard to say where one
country ends and another begins.

2. GLOBAL IMAGINARY
Definition: People are starting to think of the world as one big place rather than lots of
separate countries. This doesn't mean they forget about their own country, but it
does change how they see it.
Imagine: Imagine if everyone started seeing the world as their big home, not just their
own country.

3. GLOBALISMS
Definition: The set of people’s growing consciousness/awareness that we are all
interconnected. They turn the big idea of the world as one into specific plans and
actions. Some people think this global connection is great, while others think it's
bad.
Imagine: Think of it like people coming up with plans based on the idea that the whole
world is connected. Some plans might be good for everyone, and others might
only help a few.

4. GLOBALIZATION
Definition: A spatial concept referring to a set of social processes. This is about how the
world is changing from being mostly about separate countries to being more
about the whole world. It's not just about big global things; it also happens in
smaller areas like cities or even neighborhoods.
Imagine: Imagine changes happening everywhere, from big stuff like global markets,
KPop, technological advancements, etc, to small things like the way your local
area fits into the world. It's like the world is getting mixed up in lots of different
ways.

“Globalization is a bunch of things happening socially, tied together by the idea that the world is
a big, connected space. The main feature is that everything is moving towards being more
connected.”
 4 Forms of Globalization

Embodied People/Globalization Disembodied Ideas/Globalization

● Explanation: This is about how ● Explanation: Focuses on the spread

people physically move around the of ideas, information, and culture
world, influencing the global across borders without the need for
landscape. It involves the movement physical movement. It's about the
of individuals, often for reasons like global exchange of knowledge and
work or migration. values.
● Example: Consider the international ● Example: The internet is a prime
workforce where people from different example, where information, trends,
countries move to work in another, and cultural influences can be shared
bringing their skills and cultures. This globally without people physically
movement of people shapes the moving. Social media platforms
global environment. contribute significantly to this form of
globalization.

Objectified Things/Globalization Institutional Globalization

● Explanation: Deals with the global ● Explanation: Focuses on the global

movement of physical objects and spread and influence of institutions,
products. It's not just about ideas; it's like governments, corporations, and
about tangible things like goods and international organizations. It's about
technology moving across the world. how these entities operate on a global
● Example: Think of products made in scale.
one country being sold worldwide. ● Example: Consider multinational
The iPhone, for instance, is designed corporations operating in various
in the U.S., manufactured in various countries, where decisions made at a
countries, and then distributed global headquarters impact operations
globally, representing the globalization worldwide. International organizations
of physical objects. like the United Nations also exemplify
institutional globalization by
addressing global issues on a broad
scale.

Qualities/Characteristics of Globalization

Creation of New Social Networks and Multiplication of Connections:

● Explanation: Globalization involves building new social networks and expanding
existing connections that go beyond traditional boundaries like politics, economics,
culture, and geography.
● Example: Giant media corporations today don't just rely on conventional TV; they use
various apps and social media that transcend national borders, creating a global
audience.
Expansion and Stretching of Social Relations, Mobilities, and
Connections:
● Explanation: Globalization leads to the stretching and broadening of social
relationships, movements, and connections. It's about reaching across the globe in
various aspects of life.
● Example: Financial markets operate globally with electronic trading happening 24/7.
Shopping malls cater to consumers globally, offering products with components from
different countries, and showcasing global supply chains.

Intensification and Acceleration of Worldwide Social Interactions:

● Explanation: Globalization accelerates and makes social interactions more intense on a
worldwide scale. This is facilitated by the power of communication in the global network
society.
● Example: The digital revolution has created a global network society, transforming the
way people interact globally through communication power and technological
innovations.

Subjective Plane of Human Consciousness and Imagination:

● Explanation: Beyond the material level, globalization influences how people think and
imagine things. It expands the frame of reference for human thought and action, creating
a global perspective.
● Example: While local and national attachments remain, globalization has compressed
space and time, making the entire planet a reference for human thought. Digital
technology, controlled by large corporations, extends into personal identity formation,
allowing for more fluid individual and collective identities.

“Globalization refers to the multidimensional and uneven expansion of social relations and
consciousness across world-space and world-time.”
–x–x–x–
“Globalization is about planetary interconnectivities, mobilities, and imaginations.”

Arjun Appadurai’s “scapes” of Globalization

Anthropologist Arjun Appadurai describes different facets of globalization as "scapes,"
each representing a unique dimension of integration. In essence, Appadurai argues that
globalization is not a singular phenomenon but occurs through various interconnected lenses,
each with its unique logic, providing a multifaceted view of the global landscape.

● Ethnoscape:
● Definition: Global movement of people.
● Examples: Migration, international travel, and movement of refugees.
● Mediascape:
● Definition: Flow of culture through media.
● Example: Global dissemination of movies, music, and news through various
media channels.
● Technoscape:
● Definition: Circulation of mechanical goods and software globally.
● Example: International trade of electronic devices, software development, and
technological innovations.
 ● Financescape:
● Definition: Global circulation of money.
● Examples: International financial markets, cross-border investments, and
currency exchange.
● Ideoscape:
● Definition: Movement of political ideas globally.
● Example: The spread of political ideologies, activism, and international political
movements.

ADVANTAGES vs DISADVANTAGES of Globalization

Advantages of Globalization Disadvantages of Globalization

● Increased Productivity: Countries ● Job Losses: Millions of workers lose

producing goods and services in their jobs due to imports or shifts in
which they excel experience faster production abroad, often finding new
productivity growth, leading to quicker jobs that pay less.
improvements in living standards. ● Job Insecurity: Many workers fear
● Price Stability: Global competition layoffs, especially in import-competing
and inexpensive imports help control industries, leading to concerns about
prices, reducing the likelihood of job stability.
disruptive inflation and supporting ● Wage Concessions: Workers may
economic growth. face demands for wage concessions
● Technological Innovation: An open from employers, with the threat of jobs
economy fosters technological being moved abroad if concessions
development and innovation, are not accepted.
benefitting from fresh ideas from ● Vulnerability of Service Jobs:
around the world. Beyond blue-collar jobs, service and
● Higher-Paying Jobs: Jobs in export white-collar jobs become increasingly
industries typically offer about 15 vulnerable to being outsourced
percent higher wages compared to overseas.
those in import-competing industries. ● Loss of Competitiveness:
● Access to Foreign Investment: Companies building advanced
Unrestricted capital movements factories in low-wage countries can
provide workers with access to foreign erode the competitiveness of workers
investment and help maintain low in developed countries, as these
interest rates. factories become as productive as
those in developed nations.

“Globalization can be managed, at both the national and international levels, to reduce
economic inequalities and protect the natural environment.”

Theories Explaining State Sovereignty in the Age of

Globalization

1. Hyper Globalist Theory

● Perspective: Negates the importance of territorial boundaries, envisioning a borderless
world.
● Reasoning:
● International Tourism and Global Movement of Ideas: Highlights the ease of
travel and exchange of information through the internet.
 ● Rise of Non-State Actors: Points to the influence of transnational corporations
(e.g., Coke, Unilever) and NGOs (e.g., Greenpeace, Amnesty Intl.) that operate
independently from states.
● Moral Superiority: Argues that fundamental human rights are morally superior to
the concept of state sovereignty.
● Proponents: Kenichi Ohmae, Martin Albrow, Susan Strange

2. Skeptics
● Perspective: Asserts the ongoing importance of state sovereignty.
● Reasoning:
● National Self-Interest: States engage in the global economy based on national
self-interest.
● Dominance of States: States remain dominant, exercising power for control, and
engaging in pooled sovereignty through international organizations formed by
and for states.
● Enduring Attraction of Nation-State: Emphasizes the enduring influence of
nationalism and patriotism, suggesting that states keep their dominance as long
as citizens remain allies.
● Proponents: Paul Hirst, Robert Gilpin, Grahame Thompson, Stephen Krasner

3. Post-Modernist / Transformationalist View

● Perspective: Presents a mixture of Hyper Globalist and Skeptic views, acknowledging
hybridity.
● Manifestation of Glocalization:
● Transformation of Government Functions: States recognize the need to transform
their authority, power, and functions in response to global interconnectedness.
● Multilateral Agreements:
● Nations and states enter into multilateral agreements to address "problems
without passports," recognizing differences but working towards common
solutions.
● Proponents: John Ruggie, James Rosenau, Anthony Giddens

Regional Bloc Theory

● Regionalism Celebration: Emphasizes the celebration of economic and political
interdependence among countries within a specific region.
● Forms of Regional Cooperation:
● Customs Union (CU): A regional arrangement where countries agree to eliminate
internal tariffs and adopt a common external tariff.
● Free Trade Areas (FTAs): Regions where member countries aim to reduce or
eliminate trade barriers, promoting freer exchange of goods and services.
● Goal: To establish minimal tariffs when countries trade within the regional bloc.

European Union Entities:

● Council of Europe: Acts as the policy-making body of the European Union, addressing
various issues like human rights, crime prevention, drug abuse, environmental
protection, bioethical issues, and migration through treaties.
● Eurozone: Refers to the subset of EU countries (19 out of 28) that both trade and use a
single currency, the Euro.
 ● European Union Customs Union: Ensures that internal trade among member states is
tariff-free while implementing a common external tariff for trade with non-member
countries.

Trade Barriers to Importation

● Tariff: Imposes a tax on international products to protect local suppliers.
● Quota: Places limitations on the quantity of goods that can be imported.
● Embargo: Enforces a ban on the trade of a specific good with a particular country; it can
also function as a form of economic sanction.

Types of Companies (Market Integration)

International Companies Multinational Companies Transnational Companies

● Scope: Operate in multiple ● Scope: Operate in multiple ● Scope: Operate globally

countries but maintain a focus countries and have a significant with a highly integrated and
on their home country. presence in each, treating each interconnected approach
● Operations: Engage in foreign country as a distinct market. across borders.
trade and may have foreign ● Operations: Establish ● Operations: Blur the lines
branches, but the majority of subsidiaries or branches in between national and
decision-making and operations various countries, tailoring international operations,
are centralized in the home products and strategies to local often with a decentralized
country. markets. Decision-making can structure. Decision-making
● Example: A company that be centralized or decentralized is distributed based on
exports products to various based on the company's regional or functional
countries but primarily operates structure. expertise, fostering a
and makes key decisions within ● Example: A company that seamless global approach.
its home country. produces and sells products in ● Example: A company that
○ FedEx different countries, adapting its designs, produces, and
strategies to suit the specific markets products globally,
needs and preferences of each with decision-making spread
market. across different regions to
○ Procter & Gamble adapt to diverse markets.
(P&G) ○ Nestlé

Types of Market Integration

Vertical Integration Horizontal Integration

- Definition: A strategy where a - Definition: A strategy where a
company controls multiple stages of company acquires or merges with
the production and distribution chain, competitors operating at the same
from raw materials to the end product stage of the production or distribution
or service. chain.
- Example: A car manufacturer - Example: A software company
acquiring a tire production company acquiring another software company
(backward integration) or opening its that produces similar products.
showrooms (forward integration).
Information on Monetary Organizations and Institutions

Unitary Currency
Politics
Ideologies
- Democratic US
- Communist-Authoritarian
Economy
- Market Driven US
- Market Drive pa rin China
- Depends on the policy of their communist government

Advantages
- Trade Facilitation: A unitary currency streamlines international trade, akin to a
standardized medium of exchange.
- Reduced Transaction Costs: With a common currency, transaction costs diminish,
fostering economic efficiency.
- Elimination of Exchange Rate Risks: Countries using the same currency avoid
volatility associated with exchange rate fluctuations.

Challenges
- Divergent Economic Conditions: Varied economic conditions among nations may
necessitate distinct monetary policies, challenging the efficacy of a shared currency.
- Loss of National Monetary Autonomy: A unitary currency implies relinquishing
individual control over monetary policy, limiting a nation's ability to address specific
economic challenges.
- Sovereignty Concerns: Nations may be hesitant to cede control over their currency,
fearing a loss of economic sovereignty.

Illustrative Example:
Consider the Eurozone. While the euro facilitates trade and travel, challenges arise due
to economic disparities among member states. Greece's economic struggles, for instance,
underscore the complexities associated with a shared currency, emphasizing the nuanced
dynamics at play.

Why UK alis alis sa EU?

- Member siya but the currency is diff (Sterling Pound)

Advantages
- Sovereignty Regained
- Control Over Immigration
- Flexible Trade Agreements
- National Policy Tailoring
- Financial Contributions Redirected

Disadvantages
- Economic Uncertainty
- Impact on Trade
- Loss of Collective Bargaining Power
- Complexities of Transition
- Social and Cultural Shifts
Why Gold is not a major currency?
Gold is no longer a mainstream currency but remains relevant as a store of value,
particularly during economic uncertainties. Its historical significance, global acceptance, and
diverse uses in jewelry and industry contribute to its continued relevance, despite digital
currencies and the evolution of financial systems

Economic Globalization

​ Definition: Economic globalization involves the integration of national economies

through trade, investment, capital flows, and the exchange of technology and ideas.
​
​ Drivers:
● Technological Advances: Improved communication and transportation facilitate
global economic activities.
● Trade Liberalization: Reduction of barriers like tariffs promotes cross-border
trade.
● Foreign Direct Investment (FDI): Companies investing in other countries
contribute to globalization.
● Global Institutions: Organizations like the World Trade Organization (WTO) play a
role in shaping global economic policies.
​
​ Benefits:
● Increased Economic Growth: Access to larger markets can boost economic
output.
● Technological Transfer: Globalization allows the sharing of technological
advancements.
● Access to Resources: Countries can tap into resources available worldwide.
​
​ Challenges:
● Inequality: Benefits may not be evenly distributed among nations and within
societies.
● Cultural Homogenization: Concerns about the loss of cultural diversity due to
global influences.
● Vulnerability to Shocks: Economic crises in one part of the world can have a
global impact.
​
​ Critiques:
● Environmental Impact: Increased production and transportation can harm the
environment.
● Labor Exploitation: Concerns about exploitation in low-wage countries.
● Loss of National Sovereignty: Some argue that globalization erodes a nation's
control over its own economy.
​
​ Trade Liberalization Example:
● Case: The North American Free Trade Agreement (NAFTA).
● Explanation: NAFTA eliminated tariffs between the United States, Canada, and
Mexico, fostering increased trade and economic cooperation.
​
​ Foreign Direct Investment (FDI) Example:
● Case: China's Open Door Policy.
● Explanation: China's decision to open its economy to foreign investment in the
late 20th century attracted substantial FDI, leading to rapid industrialization and
economic growth.
 ​
​ Technological Transfer Example:
● Case: The Spread of Mobile Technology in Africa.
● Explanation: The adoption of mobile phones in Africa, facilitated by globalization,
has connected remote areas, improved communication, and provided access to
financial services.
​
​ Cultural Homogenization Example:
● Case: Globalization of Western Fast Food Chains.
● Explanation: The worldwide presence of fast-food chains like McDonald's and
Starbucks is often cited as an example of cultural homogenization, where similar
products and experiences become prevalent globally.
​
​ Inequality Example:
● Case: The "Digital Divide."
● Explanation: While globalization has brought technological advancements,
there's a digital divide where some regions or social groups lack access to these
benefits, exacerbating global inequality.
​
​ Environmental Impact Example:
● Case: Deforestation in the Amazon Rainforest.
● Explanation: Global demand for agricultural products can drive deforestation,
impacting the environment and biodiversity in regions like the Amazon.

Bretton Woods Conference Overview:

● When: July 1-22, 1944.
● Where: Bretton Woods, New Hampshire, USA.
● Goal: Establish a framework for economic cooperation and avoid the economic
mistakes that led to the Great Depression.

​ Key Agreements:
● International Monetary Fund (IMF):
● Purpose: Promote international monetary cooperation and exchange rate
stability.
● Example: Provides financial assistance to member countries facing
balance of payments problems.
● World Bank (WB):
● Purpose: Facilitate post-war reconstruction and development.
● Example: Funds projects like infrastructure, education, and healthcare in
developing countries.
● Gold-Backed Dollar:
● Agreement: The U.S. dollar was pegged to gold, and other currencies
were pegged to the U.S. dollar.
● Example: This system aimed to provide stability by linking currencies to a
tangible asset (gold).
​
​ Legacy of Bretton Woods:
● Stability and Growth: Initially, the system contributed to post-war economic
stability and growth.
● Critiques and Challenges: Over time, challenges emerged, including trade
imbalances, inflation, and the strain on the gold peg.
​
 ​ 1971 and the End of Bretton Woods:
● Event: President Nixon ends the convertibility of the U.S. dollar to gold.
● Consequence: This marked the collapse of the Bretton Woods system, leading to
the adoption of floating exchange rates.
​
​ Impact on Global Economy:
● Transition to Floating Rates: Currencies started to float against each other based
on market forces.
● Financial Innovation: Without the gold constraint, financial markets saw increased
innovation.

**The goals of the IMF and World Bank, the gold-backed dollar system, and the eventual
breakdown of the Bretton Woods system.

Examples: IMF providing financial aid during economic crises and the World Bank funding
development projects.

World Bank:
Background:
● Formation: Established in 1944 at the Bretton Woods Conference.
● Membership: 189 member countries.

Structure:
● Organizations: Consists of two main institutions - the International Bank for
Reconstruction and Development (IBRD) and the International Development Association
(IDA).
● Governance: Governed by its member countries; decisions are made collectively.

Purpose:
● Focus: Aims to reduce global poverty and support development projects.
● Projects:
​ 1. The Global Solar Atlas: Assists in solar energy development in various
countries.
​ 2. East Africa Regional Transport, Trade, and Development Facilitation Project:
Enhances transportation infrastructure for economic growth.

Criticisms:
● Conditionality: Critics argue that the World Bank imposes too many conditions on
borrowing countries.
● Effectiveness: Some question the effectiveness of certain projects and their impact on
local communities.
IMF (International Monetary Fund):
Background:
● Formation: Also established in 1944 at the Bretton Woods Conference.
● Membership: 190 member countries.

Structure:
● Governance: Governed by its member countries; decisions made collectively.
● Leadership: Headed by a Managing Director, currently Kristalina Georgieva.

Purpose:
● Stability: Aims to ensure the stability of the international monetary system.
● Projects:
​ 1. Financial Assistance Programs: Provides funds to countries facing balance of
payments problems.
​ 2. Capacity Development: Offers training and technical assistance to member
countries.

Criticisms:
● Austerity Measures: Some criticize the IMF for imposing harsh economic policies,
leading to social unrest.
● Representation: Concerns about the dominance of developed countries in
decision-making.

World Trade Organization (WTO):

Background:
● Establishment: Formed in 1995, succeeding the General Agreement on Tariffs and Trade
(GATT).
● Membership: 164 member countries.
Structure:
● Decision-Making: Operates on a one-country-one-vote principle.
● Leadership: Headed by a Director-General, responsible for day-to-day operations.
Purpose:
● Trade Rules: Sets rules for international trade to ensure fairness.
● Projects:
​ 1. Trade Facilitation Agreement: Aims to simplify customs procedures, reducing
trade barriers.
​ 2. Aid for Trade Initiative: Supports developing countries in building trade
capacity.
Criticisms:
● Inequality: Critics argue that the WTO's rules favor developed nations.
● Lack of Progress: Some say the WTO has been slow to adapt to changing global
economic dynamics.

United Nations (UN):

The United Nations is an international organization founded in 1945 with the primary
goal of maintaining international peace and security. It serves as a forum for member states to
address global issues, promote cooperation, and protect human rights. The UN has several
functions and key components:
 ● Peace and Security: The UN works to prevent conflicts, maintain peace, and facilitate
peacekeeping operations in areas of conflict. It also promotes disarmament and
non-proliferation of weapons of mass destruction.
● Human Rights: The UN works to protect and promote human rights globally. It sets
international standards and monitors their implementation through various mechanisms,
such as the Universal Declaration of Human Rights and the Human Rights Council.
● Sustainable Development: The UN promotes sustainable development through various
initiatives, including the Sustainable Development Goals (SDGs). It addresses issues
such as poverty, education, gender equality, environmental sustainability, and access to
healthcare.
● Humanitarian Assistance: The UN coordinates and provides humanitarian assistance in
response to natural disasters, conflicts, and other emergencies. It supports relief efforts,
provides aid to affected populations, and advocates for the protection of vulnerable
groups.
● International Law and Justice: The UN promotes the rule of law and international justice.
It includes institutions such as the International Court of Justice, which settles legal
disputes between states, and the International Criminal Court, which prosecutes
individuals for genocide, war crimes, and crimes against humanity.
- Key Components of the UN:
● General Assembly: The General Assembly is the main deliberative body of the
UN, where all member states have equal representation and discuss global
issues.
● Security Council: The Security Council is responsible for maintaining international
peace and security. It has five permanent members (China, France, Russia, the
United Kingdom, and the United States) and ten non-permanent members
elected by the General Assembly.
● Economic and Social Council: The Economic and Social Council coordinates the
economic and social work of the UN and its specialized agencies. It promotes
sustainable development, addresses social issues, and facilitates international
cooperation.
● Secretariat: The Secretariat is the administrative arm of the UN, headed by the
Secretary-General. It supports the work of the UN bodies, implements decisions,
and provides research, analysis, and coordination.

World Bank
The World Bank is a global financial institution that provides financial and technical
assistance to developing countries. Its primary goal is to reduce poverty and promote
sustainable economic growth. The World Bank consists of several key components:

● International Bank for Reconstruction and Development (IBRD): The IBRD provides
loans and financial assistance to middle-income and creditworthy low-income countries
for development projects. It focuses on infrastructure development, education,
healthcare, and other initiatives.
● International Development Association (IDA): The IDA provides grants and concessional
loans to the world's poorest countries. It supports poverty reduction, social development,
and economic empowerment in low-income countries.
● International Finance Corporation (IFC): The IFC focuses on promoting private sector
investment in developing countries. It provides financing, investment, and advisory
services to private sector companies to stimulate economic growth, create jobs, and
improve living standards.
● Multilateral Investment Guarantee Agency (MIGA): MIGA promotes foreign direct
investment (FDI) in developing countries by providing political risk insurance and
guarantees to investors. It protects against non-commercial risks such as political
instability and expropriation.
● International Centre for Settlement of Investment Disputes (ICSID): ICSID provides a
platform for the settlement of investment disputes between governments and foreign
investors through arbitration and conciliation. It ensures a neutral and transparent
process for resolving investment-related disputes.