Reviewer: Globalization – Lesson 1 (Contemporary World)
Intended Learning Outcomes (ILO)
By the end of the lesson, students should be able to:
1. Examine different conceptions of globalization.
2. Distinguish definitions of globalization from various experts.
3. Adopt a clear working definition of globalization.
DEFINITION ON GLOBALIZATION
● Globalization is the spread of products, technology, information, and jobs across
nations (Fernando, 2021) -Macroeconomics, Economics
● One of the most important changes is globalization (Bauman, 2003).
● The reality of all this change that we are part of is what is called - the global age
(Albrow, 1996).
● The access to the internet makes people communicate easier and faster all over the globe.
It is easier for now to be updated about news and happenings in all parts of the world.
Introduction to Globalization
● Meaning: Globalization is the integration of goods, services, and culture among
nations.
● Historical roots: Began during European colonization, where trade and exploration
connected distant regions.
● Accelerating factors:
○ Telecommunication and transportation developments speed up exchanges.
○ The Internet makes interactions instant, turning nations into “next-door neighbors.”
● Multidimensional: Globalization is not only economic, but also political, cultural, and
technological.
What is Globalization?
● A process of interaction and integration among people, companies, and governments of
different nations.
● Driven by: international trade and investment.
● Supported by: advances in information technology.
● Working Definition: Globalization is the growing interconnectedness of economies,
societies, and cultures worldwide.
Globalization and History
● Globalization is not entirely new.
● It has existed in earlier forms (colonial trade, migration, cultural exchange).
● The modern era intensified globalization through faster technology, stronger trade
systems, and global communication.
Three Components of Globalization
1. Economic Globalization
● Integration of markets, production, and financial systems worldwide.
● Includes the role of multinational corporations, global trade agreements, and
monetary systems.
● Example: International companies (e.g., Apple, Samsung) selling products worldwide
In order to monitor the economy, 3 economic institutions were created:
1. THE INTERNATIONAL MONETARY FUND (IMF) --would oversee the international
monetary system.
2. The International Banks for Reconstruction and Development (IBRD later named the
WORLD BANK (WB) --would provide loans for European reconstruction but later expanded
its activities to the developing world
3. The General Agreement on Tariffs and Trade (GATT, renamed the WORLD TRADE
ORGANIZATION in 1992) --would oversee multilateral trade agreements.
2. Cultural Globalization
● Spread of ideas, values, traditions, and lifestyles across borders.
● MIGRATION is an important aspect of cultural globalization.
● THE GLOBALIZATION OF SPORT is another fairly obvious example of cultural
globalization, think of all the international sporting events that take place -most notably the
World Cup and The Olympics, and Formula 1, which bind millions together in a shared,
truly global, 'leisure experience'.
● THE GLOBAL VILLAGE/ GLOBAL CONSCIOUSNESS-- Individuals and families are now
more directly plugged into news from the outside world - some of the most gripping events
of the past decade have unfolded in real time in front of a global audience.
● DETRADITIONALISATION--In his classic 1999 text, Runaway World, Anthony Giddens
argues that one consequence of globalization is detraditionalisation where people
-question their traditional beliefs about religion, marriage, gender roles and so on.
● The United Nations member states are the 193 sovereign states that are members of
the United Nations (UN) and have equal representation in the UN General Assembly and
51 founding countries.
● The UN is the world's largest intergovernmental organization which is based in New
York (Headquarter)
● Positive: Promotes cultural exchange.
● Negative: Can lead to cultural homogenization (loss of local traditions).
3. Political Globalization
● Nations becoming more politically interconnected.
● International organizations like the United Nations (UN) promote global governance,
peace, and cooperation.
● Ensures collaboration on issues like climate change, security, and human rights.
Role of the United Nations in Globalization
It is an international organization created on 24th October of 1945 when the UN charter
was signed.
● MAIN OBJECTIVES ARE:
1. to maintain international peace and security and
2. promoting human rights and global development.
Key Quotation
“In the context of globalization, the most important task is to ensure that all people
share in the benefits of the global economy.” – Joseph Stiglitz
The Structures of Globalization
What is Globalization?
● Definition: Process of interaction and integration among people, companies, and
governments of different nations, driven by trade, investment, and technology.
● Multidimensional: Economic, political, cultural, technological forms of connectivity.
Four Structures of Globalization
The Global Economy focuses on the process of making the world economy an integral element of
a whole. Also, it elaborates on the important players of economic globalization.
Market Integration covers the position of international financial institutions in global market
integration.
The Global Interstate System tackles the consequences of globalization on governments and
institutions that govern nation-state relations.
Contemporary Global Governance presents the United Nations' role, function, and the
challenges of global governance.
Economic globalization refers to the expanding interdependence of world economies.
Global economy or World economy refers to the international exchange of goods and
services through the use of monetary units of money, also mean as the free movement of
goods, capital, services, technology and information.
Foreign Direct Investments (FDI), a type of investment in which a company establishes a
business in another country for production of goods or services and still takes part in the
management of that business.
In 2008, the International Monetary Fund (IMF) defined economic globalization
● “It refers to the increasing integration of economies around the world, particularly
through the movement of goods, services, and capital across borders” (IMF, 2008).
Economic globalization can be traced from the time when there was economic movement in
Asia, Africa, and Europe through the Silk Road, a network of trade routes that connected the
Fast, particularly China, and the West.
Also led to the discovery of the Philippine island when Portuguese and Spanish envoys were
In search of spices, which then spawned colonization.
The Philippines sends thousands of skilled workers to the Middle East as construction
workers, seafarers, and nurses.
Four (4) interconnected dimensions of economy
Bencrzes (2014) identifies four interconnected dimensions of economy, namely:
(1) Globalization of trade of goods and services;
(2) Globalization of financial and capital markets;
(3) Globalization of technology and communication;
And
(4) Globalization of production.
Economic Interconnectedness
● The first dimension of economic interconnectedness is demonstrated in the establishment of the
World Trade Organization (WTO) that eases trade among countries.
1. WTO, established in 1995, “ensures that trade flows as smoothly, predictably, and
freely as possible” (WTO, 2012).
2. China is a major supplier and exporter of manufactured goods that has affected the
world economy. The increasing number of Business Process Outsourcing (BPO)
companies in the Philippines.
● The second dimension is evident in the liberalization of financial and capital markets. This is
seen in cross-listing of shares on one or more foreign stock exchange, cross-hedging and
diversification of portfolio, and round-the-clock trading worldwide (National Research Council,
1995).
● The third dimension emphasizes that various transactions and Interactivities that transpire
instantly due to the internet and communication technology. Moreover, the fourth dimension is
best illustrated by the existence of Multinational Corporations (MNCs) and Transnational
Corporations(TNCs).
● Multinational Corporation (MNC): An MNC is a big company that does business in several
countries, but it still follows a central plan from its home country.
Procter & Gamble (P&G): P&G is a multinational consumer goods company with a presence in
the Philippines, manufacturing and selling products like Tide, Pampers, and Pantene.
Coca-Cola: The Coca-Cola Company is a well-known multinational beverage company that
manufactures and sells Coca-Cola products in the Philippines.
● Transnational Corporation (TNC): A TNC is also a big company that operates in many
countries, but it doesn't have a strong connection to any particular home country. It's like a
company with offices all over the world, and they work together like one big team without a
single central location.
IBM: International Business Machines (IBM) is a technology company that operates
globally, providing IT services and solutions. It has a presence in the Philippines with offices
and operations.
HSBC: The Hongkong and Shanghai Banking Corporation (HSBC) is a global financial
services organization with branches and services in the Philippines, offering banking and
financial solutions.
Accenture: is a transnational consulting and professional services firm that operates in the
Philippines, providing a wide range of business and technology services to clients
worldwide.
ACTORS OF ECONOMIC GLOBALIZATION
● Nation-States (Boyer & Drache, 1996): Still play a role as buffers against negative
effects of globalization.
● Global Corporations (Ohmae, 1995): More dominant than nation-states in global
markets.
● Transnational Corporations (TNCs): Drive economic globalization, account for
two-thirds of world exports (Gereffi, 2005).
● International Monetary System (IMS)
Gold Standard: Fixed exchange rate with gold.
Bretton Woods System: US dollar as convertible currency.
European Monetary System (EMS).
