MODULE I: THE CONTEMPORARY WORLD company like Starbucks buys coffee from farmers in WHAT IS EXPANSION?

ers in WHAT IS EXPANSION? Expansion refers to both the Historians Dennis O. Flynn and Arturo Giraldez said
Rwanda, it is providing a livelihood and a benefit to creation of new social networks and the that globalization began when
WHAT IS GLOBALIZATION? the community as a whole. multiplication of existing connections that cut across “all important populated continents began to
Governing Globalization from the World Economic traditional political, economic, cultural, and exchange products continuously — both with each
Forum's Annual Meeting 2017, Alex Gray ▪ A multinational company's presence overseas geographic boundaries. other directly and indirectly via other continents —
contributes to those local economies because the and in values sufficient to generate crucial impacts on
IN SIMPLE TERMS Globalization is the process by company will invest in local resources, products and WHAT IS INTENSIFICATION? The spreading, stretching all trading partners”
which people and goods move easily across borders. services. ▪ Socially responsible corporations may even and acceleration of global connections.
invest in medical and educational facilities. 1571. The establishment of the galleon trade that
AN ECONOMIC CONCEPT Globalization is the GLOBALISM A widespread belief among powerful connected Manila in the Philippines and Acapulco in
integration of markets, trade and investments with Globalization has not only allowed nations to trade people that global integration of economic markets is Mexico. This was the first that the Americas were
few barriers to slow the flow of products and services with each other, but also to cooperate with each beneficial for everyone, since it spreads freedom and directly connected to Asian trading routes.
between nations. other as never before. Take the Paris Agreement on democracy. It is a common belief forwarded to the
Climate Change, for instance, where 195 countries all media and policy circles. Economic globalization began on Philippine shores.
NOT ALL GOOD THOUGH Globalization has brought agreed to work towards reducing their carbon
many benefits to many people. But not to everyone. emissions for the greater global good. GLOBALIZATION refers to the expansion and Galleon Trade - 16th century to 18th century.
intensification of social relations and consciousness European countries.
How did Globalization Happen? WHAT’S BAD ABOUT IT? across world-time and worldspace.
THE SILK ROAD Widening the gap Although globalization is helping to Monetary reserves (country’s income)
One example is the Silk Road, when trade spread create more wealth in developing countries, it is not APPADURAI’S FIVE SCAPES OF GLOBALIZATION
rapidly between China and Europe via an overland helping to close the gap between the world's poorest Arjun Appadurai Appadurai is a cultural theorist and 1867. UK, US and other European nations adopted
route. Merchants carried goods for trade back and and richest nations. anthropologist. He is the person who came up with the gold standard.
forth, trading silk as well as gems and spices and, of the scapes theory.
course, coffee. While many have been lifted out of poverty, not World War I
everybody has benefited. Many argue that Technoscapes - refers to the ways technologies help The Great Depression - 1920s to 1930s
The early form of globalization known as archaic globalization operates mostly in the interests of the speed up cross-border movements World War II
globalization could be traced in the trade links known richest countries, with most of the world's collective Abandonment of the gold standard
as the Silk Route. The Silk Route or the Silk Road is profits flowing back to them and into the pockets of Ethnoscapes - represent the movement of people
not a single road. It is a network of roads in Eurasia those who already own the most around the world Fiat currencies - currencies that are not backed by
connecting Eastern and Southern Asia with the precious metals
Mediterranean world, stretching from Changan in While some areas have flourished, others have Financescapes - represent the rapid movement of and whose value is determined by their cost relative
China across the Taklamakan Desert, over the Pamir floundered as jobs and commerce move elsewhere. money across borders to other currencies.
Mountains, through the grasslands of Central Asia, Steel companies in the UK, for example, once thrived,
This system allowed governments to freely and
into Persia and then to the Mediterranean, with providing work for hundreds of thousands of people. Mediascapes - the power of international media to
actively manage their economies by increasing or
branches in the northern Eurasian steppes and India. But when China began producing cheaper steel, steel send news information across the globe at a rapid
decreasing the amount of money in circulation as
plants in the UK closed down and thousands of jobs rate
they see fit.
WHAT DRIVES GLOBALIZATION? were lost.
▪ Globalization has speeded up enormously over the Ideoscapes - refers to the ideas, symbols and
ECONOMIC SYSTEM
last half-century, thanks to great leaps in technology Every step forward in technology brings with it new narratives that have spread around the globe
dangers. Computers have vastly improved our lives,
TRADITIONAL ECONOMIES This economy relies on
▪ The internet has revolutionized connectivity and but cyber criminals steal millions of pounds a year. MODULE 2A: THE GLOBAL ECONOMY
tradition and culture to choose what goods and
communication, and helped people share their ideas Global wealth has skyrocketed, but so has global
services will be produced, how those goods and
much more widely, just as the invention of the warming. ECONOMIC GLOBALIZATION
services will be produced, and how those goods and
printing press did in the 15th century. The advent of The mobility of people, capital, technology, goods
services will be distributed throughout the populace.
email made communication faster than ever. DEFINITION OF GLOBALIZATION and services internationally.
MANFRED B. STEGER Professor of Political Science at
SOCIALIST ECONOMIES Basically, socialism is defined
▪ The invention of enormous container ships helped the University of Hawai’i-Manoa and Senior Advisor History of Economic Globalization
as an economic model where all citizens in a country,
too. In fact, improvements in transport generally – on International Education and Globalization to the
Silk Road - a network of roads in the ancient world region or community each own the factors of
faster ships, trains and airplanes – have allowed us to Dean of Social Sciences. He is the author of
that spannedfrom China to what is now the Middle production equally. Typically, equal economic
move around the globe much more easily. Globalization: a Very Short Introduction
East and to Europe. outcomes are generated after the election of a
democratically chosen government.
▪ A “global village” is created when distance and Globalization refers to the expansion and
isolation no longer matter because people are intensification of social relations and consciousness Silk was one of the most profitable products traded
through this network. CAPITALIST ECONOMIES
connected by technology. across world-time and world-space. It is a
multidimensional phenomenon involving economics,
While it was international, it was not truly “global”. ▪ Capitalism- the country’s industry is being
WHAT'S GOOD ABOUT IT? politics, culture, ideology, environment, and
Because it had no ocean routes that could reach the controlled by private organization or owners
▪ Globalization has led to many millions of people technology.
American continent.
being lifted out of poverty. ▪ For example, when a
▪ Historically, these societies leverage market forces, 4. GREATER EMPLOYMENT OPPORTUNITIES ▪ TARIFFS - A tax on goods coming into a country.
such as supply and demand, with a strong motivation Increases the price of the good and makes it less WORLD TRADE ORGANIZATION (WTO)
to earn a profit, to shape their economic models. WHAT ARE THE DOWNSIDES competitive. - The only global organization dealing with the rules
1. INCREASE IN GAP BETWEEN RICH AND THE POOR ▪ QUOTAS - Physical restriction on the number of of trade between nations.
COMMUNIST ECONOMIES 2. DOMINANCE OF GLOBAL TRADE BY THE RICH, goods coming into a country. - Its goal is to ensure that trade flows as smoothly,
Communism is an economic model where the NORTHERN COUNTRIES ▪ BANS - Forbid products on import goods. Refers to predictably, and freely as possible.
collective, governed by a centralized government, 3. EXPLOITATION OF WORKERS a government policy that prohibits the importation of
owns any and all properties located in the collective. certain goods from foreign countries into a domestic BENEFITS
Communism is modeled upon a classless society, “Race to the Bottom” - refers to countries’ lowering market. - Solves trade disputes between countries in a
where the work of the citizenry - the fruits of their their labor standards, including the protection of peaceful way.
labor - are taken by the government and distributed workers’ interests, to lure in foreign investors seeking TRADE LIBERALIZATION - Lowers the cost of goods and services for developed
throughout the populace based on need. high profit margins at the lowest cost possible. Also known as “free trade”. Act of reducing trade nations.
barriers to make international trade easier between - Promotes economic growth in developed nations.
3 PHASES OF GLOBALIZATION Governments weaken environmental laws to attract (No Tariffs, Quotas, and Bans) DRAWBACKS
investors, creating fatal consequences on their - Only focuses on developed nation.
1. THE EARLY VOYAGES OF EXPLORATION & ecological balance and depleting them of their finite REASONS FOR PROTECTIONISM - To achieve low cost, labor rights and environmental
COLONIZATION resources (oil, coal, and minerals) 1. Protect domestic industries concerns are ignored.
▪ Phase one begins in 1492, with the voyage of 2. Strategic reasons - Favors the rich nations and powerful transnational
Christopher Columbus to the new world, and MULTINATIONAL COMPANIES VS TRANSNATIONAL 3. Protect culture corporations.
continues with later European voyages of exploration 4. Prevent ‘Dumping’ - selling goods
that eventually made possible the formation of MULTINATIONAL COMPANIES at a very cheap price INTERNATIONAL MONETARY FUND (IMF) - An
Europe’s colonial empires. (ex. Microsoft, Amazon, Toyota, Google) organization of 189 countries, working to foster
Have a centralized management system where the BENEFITS OF PROTECTIONISM global monetary cooperation, secure financial
2. THE AGE OF TRANSNATIONAL INTEGRATION headquarters in the home country make key stability, facilitate international trade, promote high
▪ Western world experienced a dramatic decisions for all the operations worldwide. 1. Promotes efficient use and allocation of world employment and sustainable economic growth, and
intensification of inter-national connectivity due to resources reduce poverty around the world.
four advancing technologies–trains, steamships, the They usually adapt their products and services to 2. Promotes international specialization and
telegraph, and the postal system. local markets but maintain overall control in the increases world output FUNCTIONS OF IMF
home country.
3. Facilitates the working of the global market system
3. THE MODERN AGE OF GLOBALIZATION - Ensure the stability of the international monetary
and the working of price signals to ensure efficient
▪ The third phase of globalization that began in 1945 Operate in several countries but have a strong focus system– the system of exchange rates and
allocation of resources, international competition,
was made possible by the long economic expansion on the parent company's home country. The international payments that enable countries to
and the associated benefits to all.
that followed the end of the Second World War. New subsidiaries abroad follow guidelines and strategies transact with each other.
global economic reforms agreed upon by the United that are designed by the headquarters. - Keep track of the global economy.
HOW TO MAKE TRADE EASIER?
States and its wartime allies in 1944 provided a new - Lend to countries with a balance of payments
framework for international commerce and finance. TRANSNATIONAL COMPANIES difficulties.
Promoting free trade - The trading of goods and
(ex. Mcdo, Starbucks, KFC, Ikea) - Give practical help to members.
services between two or more countries without
ECONOMIC INTEGRATION Have many companies around the world but do not
tariffs.
1. The increasing reliance of economies on each have a centralized management system. MODULE 2B: CONTEMPORARY
Creating trade blocs - Agreement between countries
other GLOBAL GOVERNANCE
to reduce or eliminate trade barrier.
2. The opportunity to buy and sell in any country in Allowing each branch in different countries to
the world operate independently and make decisions that suit The world is faced with threats and challenges that
Outsourcing is the act of subcontracting work. This
3. The opportunities for land and capital to be local needs. no single country, no matter how powerful it is, can
includes buying labor or parts from outside a
located anywhere in the world. deal with.
This approach enables them to adapt to local markets company or business rather than using the
4. The growth of global markets in finance
more effectively, while still benefiting from global company’s own staff or plant.
Terrorism
MADE POSSIBLE BY: coordination. • 9-11 Attack • 2002 Bali Bombing
INSTITUTIONS OF GLOBALIZATION
1. INTERNET ACCESS • 2004 Madrid Bomb Attack • ISIS Attacks
PROTECTIONISM VS. TRADE -THE WORLD BANK
2. TECHNOLOGY Thousands of death and injuries
PROTECTIONISM - Protecting one’s economy from -WORLD TRADE ORGANIZATION
3. MOVEMENT OF FREE TRADE
foreign competition by creating trade barriers. -INTERNATIONAL MONETARY FUND
4. COMMUNICATION NETWORK PROLIFERATION OF WMD (Weapons of Mass
Domestic Products > Imported Goods Destruction)
THE WORLD BANK - To bridge the economic divide
WHAT ARE THE BENEFITS OF TRADE? • Nuclear Weapons
- is an economic policy where a country takes between poor and rich countries by turning rich
1. INCREASES COMPETITION AND LOWERS WORLD • Biological Weapons
measures to protect its domestic industries from country resources into poor country growth.
PRICES • Chemical Weapons
foreign competition. This is often done by imposing What will happen if these weapons fall into the
restrictions designed to discourage imports and 2 GOALS OF THE WORLD BANK
2. INCREASES CHOICES hands of terrorists?
encourage the consumption of domestic goods. 1 End extreme poverty
3. GREATER POTENTIAL FOR GROWTH NATURAL DISASTERS
MAIN MEANS 2 Promote shared prosperity of every country.
• 2004 Indian Ocean Tsunami TYPES  4th World Conference on Women (1995) - Many commentators view the SC to be the most
• 2010 Haiti Earthquake  Global: UN, WTO, WHO  Copenhagen Conference on Climate Change powerful organ of the UN.
• 2011 Japan Earthquake and Tsunami  Regional: ASEAN, EU -This consists of 15 member states. The GA elects 10
• Typhoon Yolanda  General Purpose: UN THE UNITED NATIONS of these 15 to two-year terms. The other five
 Specialized: WTO, WHO -In 1945, nations were in ruins. World War II was (Permanent Five) are China, France, Russia, the
TRANSNATIONAL CRIMES over, and the world wanted peace. United Kingdom, and the United States.
• Arms Trafficking FUNCTIONS -51 countries gathered in San Francisco that year to -The SC takes the lead in determining the existence of
• Drug Trafficking  Informational: gather, analyze, disseminate data sign a document. a threat to the peace or an act of aggression.
• Sex Slavery  Forum: exchange of views and decision-making -The document was a Charter, creating a new -States that seek to intervene militarily in another
• Cybercrimes  Normative: defining standards of behavior organization, the United Nations. state need to obtain the approval of the SC. With the
PANDEMICS  Rule-Creation: drafting of treaties -70 years later, the United Nations is maintaining SC’s approval, a military intervention may be deemed
• HIV/ AIDS  Rule-Supervision: monitoring compliance international peace and security. legal. This is an immense power.
• Malaria, TB  Operational: actions to achieve goals -It is promoting development and giving
humanitarian assistance to those in need. ECONOMIC AND SOCIAL COUNCIL
• There is no government for the world to coordinate POWER OF CLASSIFICATION -It is upholding international law, protecting human This is the main body for coordination, policy review,
and facilitate cooperation among all actors to deal IOs can invent and apply categories. They can also rights, and promoting democracy. policy dialogue, and recommendations on economic,
with threats and challenges. create powerful global standards. -And now, its Member States are working together to social, and environmental issues, as well as
fight climate change. implementation of internationally-agreed
• There is no one organization that various states are UN High Commissioner for Refugees (UNHCR) -UNITED NATIONS HEADQUARTERS development goals.
accountable to. Moreover, no organization can provided the definition for refugee. Since states are Manhattan, New York City
militarily compel a state to obey predetermined required to accept refugees, this power to establish INTERNATIONAL COURT OF JUSTICE
global rules. identity has concrete effects. THE UNITED NATIONS This is the principal judicial organ of the UN. Its main
 Established on October 24, 1945 to promote task is to settle, in accordance with international law,
( Therefore, global governance is needed.) POWER TO FIX MEANINGS international cooperation legal disputes submitted to it by states and to give
States, organizations, and individuals view IOs as  A replace for the ineffective League of Nations advisory opinions referred to it by authorized UN
WHAT IS GLOBAL GOVERNANCE? legitimate sources of information. As such, the  At its founding, it had 51 members. Today, it has organs and specialized agencies.
- “It is the sum of the many ways individuals and meanings they create have effects on various 193.
institutions, public and private, manage their policies.  Financed by voluntary contributions from its SECRETARIAT
common affairs…” member states It consists of the Secretary-General and tens of
(Commission on Global Governance) UN recently defined ‘security’ as not just safety from thousands of international UN staff members who
military violence, but also safety from environmental OBJECTIVES carry the day-to-day work of the UN
- It is the sum of laws, norms, policies, and harm.  Maintain International Peace and Security
institutions that define, constitute, and mediate  Protect Human Rights PRINCIPLES OF THE UN
relations between citizens, societies, markets, and POWER TO DIFFUSE NORMS  Deliver Humanitarian Aid  All member states have sovereign equality.
states in the international system. Norms are accepted codes of conduct that may be  Promote Sustainable Development  All member states must obey the charter.
- It is the way in which global affairs are managed. strict law, but nevertheless produce regularity in  Uphold International Law  Countries must try to settle their differences by
behavior. IOs also spread their ideas across the peaceful means.
• Global governance typically involves a range of world, thereby establishing global standards. ORGANIZATIONAL STRUCTURE OF THE UN  Countries must avoid using force or threatening to
actors including states, as well as regional and MAIN ORGANS use force.
international organizations which are given lead roles World Bank economists are regarded as experts in  The General Assembly  The UN may not interfere in the domestic affairs of
on an issue development and thus carry some form of authority  Security Council any country.
• IOs have immense powers. They can be sources of  Economic and Social Council  Countries should try to assist the UN.
ACTORS IN GLOBAL GOVERNANCE great good and great harm.  Trusteeship Council
NTERNATIONAL LAWS  International Court of Justice CHALLENGES TO THE UN
NGOs  Secretariat  International Peacekeeping
SOURCES OF INTERNATIONAL LAW There are over 6,500 NGOs that have an  Protection of Human Rights
 treaties or conventions international dimension either in terms of GENERAL ASSEMBLY  International Disputes
 customary practices membership or commitment to conduct activities. -Main deliberative policymaking and representative  Eradication of Poverty
 writings of legal scholars These organizations advocate a particular cause such organ The only organ where every member-state is  Eradication of Anti-Social Elements in Different
 judicial decisions as human rights, peace, or environmental protection represented. Parts of the World
 general principles of the law and they provide services such as disaster relief, -It convenes annually during September.
humanitarian aid. -Members vote on important questions or The United Nations is not a world government, and it
INTERNATIONAL NORMS OR SOFT LAW recommendations on various issues (2/3 majority of functions primarily because of voluntary cooperation
This is not a binding document, but rather the GLOBAL CONFERENCES votes) from states. If states refuse to cooperate, the
standards of behaviors such as some human rights, Through global conferences, governments (CARLOS P. ROMULO General Assembly President influence of the UN can be severely restricted.
labor rights, framework conventions on climate are able to address urgently some of the 1949-1950)
change. world’s most pressing problems.
INTERNATIONAL ORGANIZATIONS  The Summit for Children (New York, 1990) SECURITY COUNCIL