Globalization
• Is the most powerful force for change in the world today affecting all societies on the planet
• It entails the movement of capital, free flow of goods and services, increase the mobility of
individuals, and expansion of multinational corporations and transnational organizations
• It is an integrated part of the product and financial market of economies around the world through
the flow of trade and capital across borders
• Globalization emphasizes the idea that it intensifies the sociopolitical and economic
interdependence of many countries that help in improving the quality of life of humanity
Nature of Globalization
• The process in which the economies of different countries around the world become increasingly
assimilated over time
• Through globalization, companies have more access to markets while consumers have greater
access to different varieties of goods and services
• Globalization affects the political systems and economic development of countries worldwide.
• It also affects the environment, culture, and physical well-being of societies in different parts of the
world
Elements of Globalization
• Privatization
– Refers to the policies of the government to transfer government-owned corporations and sell
them to the control of the private sector
– Government-owned corporations are all maintained by the private sector
– Privatize government-owned companies to become profit-oriented
• Deregulation
– Refers to the restructuring of the government’s control over the industry for basic
commodities like oil supply, water, and electricity
– To deregulate means that the government does not have any legislative power to interfere
with certain companies if they provide valid reasons for their course of actions
• Liberalization
– It is a policy wherein laws regarding the restrictive importation of products are modified or
abolished
– It is done by amending or abolishing policies that restrict or limit the importation of goods in
the form of tariffs and quotas
– When implemented, products of developed countries can now enter the markets of
developing countries and the least developed nations
▪ Free Trade
• no restrictions
• Quota - Limitation to the number of goods that can be exported or imported
• Tariffs - a tax or duty to be paid on a particular class of imports or exports
• Outsourcing
o obtain (goods or a service) from an outside or foreign supplier, especially
in place of an internal source
o Contracting work outside the country of origin or abroad – price of
materials and cost of labor is less expensive
Example:
- Call Centers in the Philippines and India
- US companies have factories in other countries like China and the
Philippines
Types of Globalization
• Economic Globalization
– Globalization is an economic process that involves the movement of economic resources
from one country to another
– Capital-rich countries would invest in poorer countries
– A country that has better technologies would usually sell modern technology to other
countries that lacked these products
– Products of developed countries enter the markets of those countries that have greater
demands for these products
– Natural resources of developing countries are also sold to the developed countries that need
their product
• Cultural Globalization
– Culture has also been modified
– Books, films, and music are released, sold, and promoted in the international market
– New trends are popularized not just in developed countries but also in the developing
countries
– The fast spread of cultural globalization became possible through modern technology,
particularly satellite communication, telecommunication networks, information technology,
and the internet
• Political Globalization
– The establishments of regional organizations aim to establish a world under a single
government
▪ European Union (EU)
▪ Association of South-East Asian Nations (ASEAN)
▪ Asia Pacific Economic Cooperation (APEC)
– Member states of these organizations remain sovereign, but they are bound to perform
obligations and follow commitments that they have signed when they joined these
organizations
– They have, to a certain extent, bounded and integrated themselves into the policies of
specific international organizations and groupings
Effects of Globalization
Positive Effects
• Globalization provides an increase in the level of global output
• Globalization brings the best technology and other forms of intellectual capital to countries that
cannot produce it
• International capital flows can transfer savings from countries where the marginal product of capital
is low to those where it is high
• Globalization influences the distribution and levels of income
Negative Effects
• Globalization has led to the erosion of cultural diversity, and it has produced a unified global system
of culture and economic values
• Unrestrictive global trade will only yield to an increasing inequality between developed and
developing countries
• The integration created by globalization reduced the sovereignty of nations, especially concerning
the economic policy formulation
• Advance nations face limited choices in tax and monetary policies under the rules of world trade
• It creates an unregulated global free market system that only benefits multinational corporations in
Western countries like the USA and UK at the expense of local enterprises, local cultures, and
ordinary people
Migration
• Is the movement of a person or group from one territory to another to seek temporary or permanent
residence
• Such movement can be considered as:
– Voluntary or Involuntary
– Long-term or Short-term
• Why do people migrate? People migrate for various reasons
– Push factors
▪ Those that motivate people to leave their place because of difficulties such as food
shortage, war, or flood, among others
– Pull factor
▪ Those that attract them to their place of destination – health benefits, better
opportunities
4 Reasons Why People Migrate…
• Environmental
– Difficulty in living conditions
– Good weather
– Pollution
• Political
– Government persecution
– Militarization of the countryside
– War or social unrest
– Corruption
• Cultural
– Safe streets
– Presence of family and friends
– Cinemas, museums, theaters, concert halls
• Economic
– Affordable housing
– Unemployment
– Good economic prospect
– Good schools and hospitals
– Poverty
– Lack of job opportunities
– Bad educational system
Types of Migration
• Internal migration
– Includes persons or groups moving to a new place within one’s own country
• External migration
– This is moving to a new residence in a different country, state, or continent
• Emigration
– This consists of persons or groups departing (leaving) from one country because of settling in
another
• Immigration
– This is the process where individuals or groups move into another country for settlement
