GEd 104 - Contemporary World In this period, European Enlightenment project tried to achieve a

UNIT 1. Introduction to Globalization universal form of morality and law. This with the emergence of
Globalization Concepts, Meanings, Features, and Dimension European metropolitan centers and unlimited material
Globalization accumulation which led to the capitalist world system helped to
• is the process in which people, ideas and goods spread strengthen globalization.
throughout the world, spurring more interaction and 4.The Modern Period (1750-1970)
integration between the world's cultures, governments and Innovations in transportation and communication technology,
economies. population explosion, and increase in migration led to more
• Is a process of interaction and integration among the people, cultural exchanges and transformation in traditional social
companies, and governments of different nations, a process patterns. Process of industrialization also accelerated.
driven by international trade and investment and aided by 5.The Contemporary Period (from 1970 to present)
information technology. The creation, expansion, and acceleration of worldwide
• This process has effects on the environment, on culture, on interdependencies occurred in a dramatic way and it was a kind of
political systems, on economic development and prosperity, leap in the history of globalization.
and on human physical well-being in societies around the
world. Dimensions of Globalization
• Is about growing worldwide connectivity. Six (6) dimensions in globalization: economic, political,
• Technolology - one principal driver of globalization technological, cultural, religious and ecological dimensions.
• Is considered a multi-dimensional process 1. Economic Dimension - refers to the extensive development
• Suggests a dynamic process of change that results in either of economic relations across the globe as a result of
positive or negative development technology and the enormous flow of capital that has
stimulated trade in both sources and goods.
International Monetary Fund (IMF) o Major player in the current century's global
"Globalization is the growing economic interdependence of economic order
countries worldwide through increasing volume and variety of Huge international corporations (General Motors,
cross border transactions in goods and services and of Walmart, Mitsubishi)
international capital flows and also through the more rapid and o International Economic Institutions (IMF, World
wide diffusion of technology." Bank, The World Trade Organization)
o Trading Systems
Globalization is an expansion, and intensification of social Major Sources of Economic Growth across Countries
relations and consciousness across world time and world space. o Property rights
It is about growing worldwide connectivity o Regulatory institutions
o Institutions for macro-economics
o Stabilization
Attributes, Qualities or Characteristics of Globalization o Institutions for social influence
Four (4) characteristics or qualities of globalization: o Institutions for conflict management
1. It involves both the creation of new social networks and the
2. Political Dimension - refers to an enlargement and
multiplication of existing connections that cut across traditional,
strengthening of political interrelations across the globe.
political, economic, cultural, and geographical boundaries.
Political Issues that Surface in this Dimension
2. Globalization is reflected in the expansion and the stretching of o The principle of state sovereignty
social relations, activities, and connections. o Increasing impact of various intergovernmental
3. Globalization involves the intensification and acceleration of
organization
social exchanges and activities. o Future shapes of regional and global governance
4. Globalization processes do not occur merely or an objective,
3. Cultural Dimension - refers to the increase in the amount of
material level but they also involve the subjective plane of human
cultural flows across the globe. Cultural interconnections are
consciousness.
at the foundation of contemporary globalization.
o Individualism and consumerism - the dominant
Historical Periods of Globalization
cultural characteristics of our age
1.The Prehistoric Period (10000 BCE-3500 BCE) o Hybridization - a constructive interaction process
In this earliest phase of globalization, contacts among hunters and
between global and local characteristics which is
gatherers - who were spread around the world - were
often visible in food, music, dance, film, fashion, and
geographically limited. In this period due to absence of advanced
language.
forms of technology, globalization was severely limited. o Media empires - i.e. Yahoo, Google, Microsoft, and
2.The Pre-modern Period (3500 BCE-1500 BCE)
Disney
In this period the invention of writing and the wheel were great o Advertisement
social and technological boosts that moved globalization to a new
4. Religious Dimension
level. The invention of wheel in addition to roads made the
Religion - is a personal or institutionalized set of attitudes,
transportation of people and goods more efficient. On the other
beliefs, and practices relating to or manifesting faithful
hand writing facilitated the spread of ideas and inventions.
devotion to an acknowledged ultimate reality or deity.
3.The Early Modern Period (1500-1750)
 • Is the most important defining element of any civilization • According to the International Monetary Fund - is a historical
as contrasted with race, language, or way of life. process, the result of human innovation and technological
o Jihadist globalism - is a religious response to the progress.
materialist assault by the ungodly West in the rest of the • It refers to the increasing integration of economies around
world. the world, particularly through the movement of goods,
• Pure form of Islam - destroy all alien influences services, and capital across borders.
imposed on Muslim people • It also refers to the movement of people (labor) and
• Political agendas and terrorist tactics knowledge (technology) across international borders.
• Christian Empire • Globalization (economic terms) - is nothing but a process
Roman Catholic Teaching of Globalization making the world economy an organic system by extending
Eight (8) principles: transnational economic processes and economic relations to
1. Commitment to universal human rights more and more countries and by deepening the economic
2. Commitment to the social nature of the human person interdependencies among them
3. Commitment to the common good
4. Solidarity - responsibility for one another Two Major Driving Forces for Economic Globalization
5. Preferential option of the poor - Theology of the Incarnation 1. The rapid growing of information in all types of productive
6. Subsidiary - decisions should be made at the lowest level activities
7. Justice 2. Marketization - a restructing process that enables state
8. Integral Humanism - concerned with the whole person enterprises to operate as market-oriented firms
Three (3) categories of Justice:
1. Commutative justice Dimensions of Economic Globalization
This aims at fulfilling the terms of contracts and 1. The globalization of trade of goods and services
other promises on both personal and social level. 2. The globalization of financial and capital markets
2. Distributive justice 3. The globalization of technology and communication
This ensures a basic equity in how both the burden 4. The globalization of production
and the goods of society are distributed and that
ensures that every person enjoys a basically equal Difference between Economic Globalization from
moral and legal standing apart from differences in Internationalization
wealth, privilege, talent and achievements Economic globalization - is a functional integration between
3. Social justice internationally dispersed activities which means that it is a
This refers to the creation of the conditions in which qualitative transformation rather than a quantitative change
the first two categories of justice can be realized and Internationalization - is an extension of economic activities
the common good identified and defended. between internationally dispersed activities.
According to catholic teaching, a just society is one which these
forms of justice are assured because they are required by human International Monetary Systems and Gold Standard
dignity. International monetary system (IMS) - refers to a system that
5. Ideological Dimension forms rules and standards for facilitating international trade
Ideology - is a system of widely shared ideas, beliefs, norms among the nations.
and values among a group of people.
• Often used to legitimize certain political interests or to European Monetary Integration
defend dominant power structures - Refers to a 30-year long process that began at the end of the
• Connects human actions with some generalized claims 1960s as a form of monetary cooperation intended to reduce the
• Globalization - is a social process of intensifying global influence of the US dollar
interdependence
• Globalism - is an ideology that gives the concept of neo- European Monetary System (EMS) - is a 1979 arrangement
liberal values and meanings to globalization. between several European countries which links their currencies
Major Ideological Claims of Advocates of Globalism: in an attempt to stabilize the exchange rate
1. Globalization is about the liberalization and global integration • European Economic and Monetary Union (EMU) - an
of markets. institution of the European Union (EU), established a
2. Globalization is inevitable and irreversible. common currency called euro.
3. Nobody is in charge of globalization.
4. Globalization benefits everyone. Three-pillar financial rescue programs:
5. Globalization furthers the spread of democracy in the world. 1. European Financial Stability Mechanism (EFSM) - is a
permanent fund created by the EU to provide emergency
UNIT 2. The Structures of Globalization assistance to member states within the Union.
I. THE GLOBAL ECONOMY 2. European Financial Stability Facility (EFSF) - is an
Economic globalization organization created by the EU to provide assistance to
• refers to the increasing interdependence of world economies member states with unstable economies
as a result of the growing scale of cross-border trade of • Special purpose vehicle (SPV)
commodities and services
 • managed by the European Investment Bank, a lending
institution. Global Economy Outsourcing
3. International Monetary Fund (IMF) Outsourcing - is an activity that requires search for a partner and
relation-specific investments
International Trade and Trade Policies • is a means of finding a partner with which a firm can
International trade - is the exchange of goods, services and establish a bilateral relationship and having the partner
capital across national borders. undertake relationship-specific investments so that it
Gross Domestic Product (GDP) - is the sum total of services becomes able to produce goods and services that fit the
and goods produced by country per annum. firm’s
• Is the only way for many people in many countries to Subcontracting - is a central element of the new economy,
acquire resources the practice of assigning part of the obligations and tasks
under a contract to another party known as a
The two key concepts in the economics of international trade: subcontractor
1. Comparative advantage Three essential features of a modern outsourcing strategy.
2. Specialization 1. Firms must search for partners with the expertise that allows
them to perform the particular activities that are required.
Trade policies - regulations and agreement of foreign countries 2. They must convince the potential suppliers to customize
• It defines standards, goals, rules, and regulations that products for their own specific needs.
pertain to trade relation between countries 3. They must induce the necessary relationship-specific
investments in an environment with incomplete contracting.
Focuses of Trade Policy in International Trade
Tarrifs - taxes or duties paid for a particular class of imports or Possible Determinants of the Location of Outsourcing
exports 1. Size of the country can affect the “thickness” of its markets.
Trade barriers - measures that governments or public authorities 2. The technology for search affects the cost and likelihood of
introduce to make imported goods or services less competitive finding a suitable partner.
than locally produced goods and services 3. The technology for specializing components determines the
• Are state-imposed restrictions on trading a particular willingness of a partner to undertake the needed investment in a
product or with a specific nation prototype.
Safety - This ensures that imported products in the country are of 4. The contracting environments can impinge on a firm’s ability to
high quality induce a partner to invest in the relationship.

Types of Trade Policies II. MARKET INTEGRATION

National Trade Policy - safeguards the best interest of its trade • refers to how easily two or more markets can trade with each
and citizen. other
Bilateral Trade Policy - to regulate the trade and business • is further used in identifying related phenomenon of market
relations between two nations of goods and services experiencing similar patterns of
International Trade Policy - defines the international trade policy increase or decrease in prices of products.
under their charter like the International economic organizations: • It may also refer to the movement of prices of related goods
o Organization for Economic Cooperation and and services sold in a defined geographical location in similar
Development (OECD) patterns
o World Trade Organization (WTO) • this exists when there are exerted effects that prompt similar
o International Monetary Fund (IMF) changes or shifts in other markets that focus on related goods
• The best interests of both developed and developing on events occurring within two or more markets.
nations are upheld by the policies

Trade Policy and International Economy Types of Related Markets where Market Integration Occurs
The following are dependent on globalization: Stock Market Integration. This is a condition in which stock
sound trade policies for market changes, markets in different countries trend together and depict same
establishment of free and fair trade practices and expected risk adjusted return
expansion of possibilities for booming international trade Financial Market Integration. It is an open market economy
between countries facilitated by a common currency and the
The World Trade Organization (WTO) elimination of technical, regulatory and tax differences to
- deals with the global rules of trade between nations with the encourage free flow of capital and investment across borders
main function of ensuring that trade flows smoothly, predictably
and freely. It is the only global international organization dealing Global Corporation
with the rules of trade between nations with WTO agreements, • Is a business that operates in two or more countries
negotiated and signed by the bulk of the world’s trading nations • Also goes by the name "multinational company"
and ratified in their parliaments at its heart. WTO is viewed as the
means by which industrialized countries can gain access to the Historical Periods of Global Corporation
markets of developing count
 State
The Finance Function in a Global Corporation • a compulsory political organization with a centralized
• Capital markets government that maintains a monopoly of the legitimate use
• Chief financial officers (CFOs) of force within a certain territory. (Max Weber, a German
Three functions can be created by CFOs through exploiting their social theorist)
internal capital markets: • are independent political communities each of which
FINANCING. A group’s tax bill can be reduced by the CFO like possesses a government and asserts sovereignty in relation to
borrowing in countries with high tax rates and lending to a particular portion of the earth’s surface and a particular
operations in countries with lower rates. segment of the human population. (Hedley Bull, a 20th
RISK MANAGEMENT. Global firms can offset natural currency century international philosopher)
exposures through world wide operations instead of managing Nation
currency exposures through financial markets. • is an imagined political community and imagined as both
CAPITAL BUDGETING. Getting smarter on valuing investment inherently limited and sovereign.
opportunities CFOs can add value • It is imagined because the members of even the smallest
nation will never know most of their fellow- members, meet
Foreign Direct Investment (FDI) them, or even hear of them, yet in the minds of each lives the
• It is a major driver of extended global corporate image of their communion.
development. • The nation is imagined as limited because even the largest of
• It is an investment made by a company or individual in one them, encompassing perhaps a billion human beings, has
country in business interests in another country, in the form finite, if elastic, boundaries, beyond which lie other nations
of either establishing business operations or acquiring • It is imagined as sovereign because the concept was born in
business assets in the other country, such as ownership or an age in which Enlightenment and Revolution were
controlling interest in a foreign company and the key feature destroying the legitimacy of the divinely ordained,
of foreign direct investment is that it is an investment made hierarchical dynastic realm…nations dream of being free, and
that establishes either effective control of, or at least if under God, directly so. The gauge and emblem of this
substantial influence over, the decision making of a foreign freedom is the sovereign state
business. • It is imagined as community, because regardless of actual
inequality and exploitation that may prevail in each, the
BRICS Economies nation is always conceived as a deep horizontal comradeship.
Brazil, Russia, India, China and South Africa (BRICS) - is an The terms nation and states are used interchangeably.
acronym for the combined economies Nation-states - dual concept:
• BRIC (2003) - By 2050, these four economies will be the most • are territorial organizations characterized by the
dominant. monopolization of legitimate violence (qua states)
• April 13, 2011 - South Africa was added - BRICS • Are membership associations with a collective identity
• These five countries were among the fastest growing and a democratic pretension to rule (qua nation)
emerging markets as of 2011.
• China and India will, by 2050, become the world's dominant The State and the Economic Interdependence
suppliers of manufactured goods and services, respectively “Golden Straitjacket”- the belief that globalization imposes a
• Brazil and Russia will become similarly dominant as suppliers forced choice upon states either to conform to free market
of raw materials. principles or run the risk of being left behind (Thomas Friedman, a
neoliberalism journalist and advocate)
General Agreement on Trade in Services (GATS) There are two things that will happen if a country is in Golden
• Is a first multilateral agreement covering trade in services Straitjacket: the economy grows and politics shrinks.
which was negotiated during the last round of multilateral It is a straitjacket because it narrows the political and economic
trade negotiations, called the Uruguay Round policy choices of those in power to relatively tight parameters.
• provides a framework of rules governing services trade, This is the reason of the difficulty of finding any real differences
establishes a mechanism for countries to make commitments today between ruling and opposition parties in those countries
to liberalize trade in services and provides a mechanism for that have put on the Golden Straitjacket
resolving disputes between countries
• GATS has similar principle with the General Agreement on Neoliberalism and Economic Sovereignty
Tariffs and Trade (GATT) that deals with trade in goods. Neoliberalism - is the intensification of the influence and
• The two primary objectives of GATTS: dominance of capital. It is the elevation of capitalism as a mode of
o to ensure that all signatories are treated equitably production into an ethic, a set of political imperatives, and a
when accessing foreign markets; cultural logic.
o to promote progressive liberalization of trade and Economic sovereignty - is the power or national governments to
services make decisions independently of those made by other
governments
III. THE GLOBAL INTERSTATE SYSTEM Four Different Concepts of Sovereignty

Globalization and the Nation-States

 o International Legal Sovereignty - It refers to the made by countries exporting to customs union. Goods inside the
acceptance of a given state as a member of the union can move freely with no additional tariffs. Members shared
international community. tariff revenues while a small share is retained by the country that
o Westphalian Sovereignty - It is based on the principle that the collects the duty. Removing internal barriers to trade and
one sovereign state should not interfere in the domestic requiring participating nations to harmonize their external policy
arrangements of another. as well as building a free trade area are put up by customs union.
o Interdependence Sovereignty - It is the capacity and
willingness to control flows of people, goods and capital Common Market (CM) - One major step towards economic
into and out of the country. integration. All barriers to the mobility of people, capital and
o Domestic Sovereignty - It is the capacity of a state to other resources within the area in question, as well as eliminating
choose and implement policies within the territory non-tariff barriers to trade, such as the regulatory treatment of
product standards are removed by CM aside from containing the
provisions of a customs union. The extension of free trade from
Economic and Political Integration (European Integration) just tangible goods, to include all economic resources which
• European integration - is the process of industrial, political, means that all barriers are eliminated to allow the free movement
legal, economic, social and cultural integration of states of goods, services, capital, and labor, including removal of tariffs
wholly or partially in Europe. European integration has and reduced non-tariff barriers is the key feature of a common
primarily come about through the European Union and its market.
policies.
• European Union (EU) - is an international organization Economic Union - The trading bloc that has both a common
comprising 28 European countries and governing common market between members, and a common trade policy towards
economic, social, and security policies non-members, although members are free to pursue independent
• Economic integration - can be described as a process and a macroeconomic policies. It requires coordinated monetary and
means by which a group of countries strives to increase their fiscal policies as well as labor market, regional development,
level of welfare. It is an arrangement between different transportation and industrial policies. In economic union the use
regions that often includes the reduction or elimination of of a common currency and a unified monetary policy is
trade barriers, and the coordination of monetary and fiscal considered. The best example of Economic union is the European
policies Union (EU).
Seven Stages of Economic Integration
1. Preferential trading area (PTA) Economic and Monetary Union (EMU) - As a key stage towards
2. Free trade area complete integration, involves a single economic market, a
3. Customs union common trade policy, a single currency and a common monetary
4. Common market policy. It represents a major step in the integration of EU
5. Economic union economies. EMU involves the coordination of economic and fiscal
6. Economic and monetary union policies, a common monetary policy and a common currency, the
7. Complete economic integration euro. EMU is a means to provide stability and for stronger, more
sustainable and inclusive growth across the euro area and the EU
Preferential Trade Areas (PTAs) - happens when there’s an as a whole for the sake of improving the lives of EU citizens.
agreement on reducing or eliminating tariff (tax or duty to be paid
on a particular class of imports or exports) barriers on selected Complete Economic Integration is the final stage of economic
goods imported from other members of countries within the integration in which member states completely forego
geographical region or areas. Agreement can either be bilateral independence of both monetary and fiscal policies. States that
(between two countries), or multi-lateral (several countries). Free participate in complete economic integration have no control of
Trade Areas (FTAs) are created when two or more countries in a economic policy including economic trade rules. There is full
region agree to reduce or eliminate barriers to trade on all goods monetary union where regulations regarding labor and capital are
coming from other members. The North Atlantic Free Trade shared between member states and this includes a single
Agreement (NAFTA) is an example of such a free trade area, and currency. There is also a complete harmonization of fiscal policy
includes the USA, Canada, and Mexico. which includes shared regulation of tax and benefit rates.

Free Trade Agreements (FTAs) or Preferential Trade Agreements • Political integration - refers to the integration of components
(PTAs) eliminate import tariffs as well as import quotas between within political systems; the integration of political systems
signatory countries. These agreements can be limited to a few with economic, social, and other human systems; and the
sectors or can encompass all aspects of international trade. FTAs political processes by which social, economic, and political
can also include formal mechanisms to resolve trade disputes. The systems become integrated. Creating common policy frame
North American Free Trade Agreement (NAFTA) is an example of work that creates equal conditions for the functions of the
such an arrangement. integrated parts of the economy is the aim of policy
integration.
Custom Union - Removal of tariff barriers between members,
together with the acceptance of a common or unified external Theories of European Integration
tariff against nonmembers is involved. Single payment or duty is
NEO-FUNCTIONALISM. This theory focuses on the supranational • Users engage with social media via computer, tablet or
institutions of the EU of which the main driving forces of smartphone via web-based software or web application,
integration are interest group activity at the European and often utilizing it for Messaging.
national levels, political party activity, and the role of New forms of digital media are accompanied by globalization in
governments and supranational institutions. The European bringing to light the possibilities for merging new kinds of
integration is mostly seen as an upper class- driven process- communities via networks and creating new arenas for political
driven by national and international political and economic upper interaction, identity and belonging. The concept of network
crusts. society affirms that citizens and civil society organizations can
INTERGOVERNMENTALISM. This theory provides a conceptual increasingly use networks to gain power relative states by
explanation of the European integration process. The main generating alternative discourses that have the potential to
concept of the Intergovernmentalism is emphasizing on the role overwhelm the disciplinary discursive capacity of the state as a
of national states in the European integration; in another words it necessary step to neutralizing its use of violence.
argues that "European integration is driven by the interest and
actions of nation states“. IV. CONTEMPORARY GLOBAL GOVERNANCE
LIBERAL INTERGOVERNMENTALISM. Liberal intergovernmental Global governance or world governance - is a product of neo-
stated that the bargaining power of member states is important in liberal paradigm shifts in international political and economic
the pursuit of integration, and package deals and side payments relations. It is a movement towards political integration of
also occur in the process of making deals. transnational actors aimed at negotiating responses to problems
NEW INSTITUTIONALISM. This theory emphasized the importance that affect more than one state or region.
of institutions in the process of European integration. Its three key • It tends to involve institutionalization.
strands are: rational choice, sociological and historical. These institutions of global governance tend to have limited or
MULTI-LEVEL GOVERNANCE (MLG). This is a new theory of demarcated power to enforce compliance: United Nations,
European integration. Writers Liesbet Hooghe and Gary Marks International Criminal Court, World Bank, etc.
defined MLG as dispersion of authority across multiple levels of • Is a tool to identify solutions to problems created by neo-
political governance. They stated that over the last fifty years, liberal globalization.
authority and sovereignty has moved away from national • is viewed as the sum of governance processes operating
governments in Europe, not just to the supranational level with in the absence of world government.
the EU, but also to subnational levels such as regional assemblies
and local authorities. The Roles and Functions of the United Nations
United Nations (UN) - an intergovernmental organization, UN is
Transnational Activism in States tasked to promote international co-operation and to create and
Transnational activism can be defined as the mobilization of maintain international order.
collective claims by actors located in more than one country • It is the largest, most familiar, most internationally
and/or addressing more than one national government and/or represented and most powerful intergovernmental
international governmental organization or another international organization in the world.
actor. • UN in the world of politics has the roles of preventing
A social movement is a type of group action. It refers to the and managing conflicts, regulating armaments,
organizational structures and strategies that may empower championing human rights and international
oppressed populations to mount effective challenges and resist humanitarian law, liberating the colonized, providing
the more powerful and advantaged elites. economic and technical aid in newly liberated countries,
The global justice movement describes the loose collection of organizing elections, empowering women, educating
individuals and groups often referred to as a “movement of children, feeding the hungry, sheltering the disposed and
movements”, who advocate fair trade rules and are negative to displaced, housing the refugees, tending the sick and
current institutions of global economics such as the World Trade coordinating disaster relief and assistance. In policy
Organization. motivation, peacekeeping is the most important feature
The new transnational activism is as multifaceted as the of UN activity in peace and security.
internationalism. Although globalization and global neo-liberalism • The UN aims to save succeeding generations from the
are frames around which many activists mobilize, the protests and scourge of war; to reaffirm faith in fundamental human
organizations are not the product of a global imaginary but of rights; to establish conditions under which justice and
domestically rooted activists who are the connective tissue of the respect for the obligations arising from treaties and other
global and the local, working as activators, brokers and advocates sources of international law can be maintained; and to
for claims both domestic and international. promote social progress and better standards of life in
larger freedom.
Social Media and the State
Social media - is a computer-based technology that facilitates the Four Main Purposes of the UN Charter - a written grant by a
sharing of ideas and information and the building of virtual country's legislative or sovereign power, by which an institution
networks and communities. such as a company, college, or city is created and its rights and
• By design, it is internet based and offers users easy privileges defined.
electronic communication of personal information and 1. Maintaining worldwide peace and security
other content, such as videos and photos. 2. Developing relations among nations
 3. Fostering cooperation between nations in order to solve 1. It calls for a transfer of decisions to the international
economic, social, cultural, or humanitarian international level
problems 2. It requires many decisions to be transferred to local
4. Providing a forum for bringing countries together to meet levels of government due to an increase in the demand for
the UN's purposes and goals participation
There were five stages or main gaps meet by UN in the 21st
century. These are: knowledge, norms, policy, institutions and The following can be guaranteed only by the States through
compliance. A critical hole in any of the five stages can cause independent courts:
efforts at problem solving to collapse. 1. Respect of human rights and justice
2. Promote the national welfare
3. Protect the general intere
Challenges of Global Governance in the Twenty-first Century
The new governance challenges in the 21st century being related
to globalization entail multiple trajectories of change within UNIT 3. A World of Regions
states, among actors inside and outside nation states, as well as GLOBAL DIVIDES: THE NORTH AND THE SOUTH
new forms of resource mobilization and risk allocation. Within Global South - refers to the regions of Latin America, Asia, Africa,
states the first trajectory or path is the depoliticization which can and Oceania mostly low-income and often politically or culturally
be observed in the form of delegating decisions to independent marginalized.
regulators and experts, central banks, or judiciaries. A second • It may also be called the "developing World" such as
trajectory is the rescaling of economic and social relations well Africa, Latin America, and the developing countries in
beyond the territorial boundaries of nation states, facilitated by Asia, "developing countries," "less developed countries,"
transnational legal arrangements that have their roots in national and "less developed regions” including poorer "southern"
law. Law is also a critical ingredient for transforming real assets regions of wealthy "northern" countries
into commodities and ultimately financial assets, that is, the third
path which is the capitalization of assets. Different effects are Three Primary Concepts of Global South
expected on different constituencies within and across domestic 1. It refers to economically disadvantaged nation-states and as a
polities (an organized society; a state as a political entity). Direct post-coldwar alternative to “Third World”.
participation or inclusion in these processes are benefitted by "Third World" - is a phrase frequently used to describe a
some though others face exclusion. Considered important for developing nation. It arose during the Cold War to identify
effective governance include recognition of these paths or countries whose views did not align with NATO and
trajectories and their potentially destabilizing effects for polities. capitalism or the Soviet Union and communism
First World - countries whose views aligned with NATO and
The Role of the Nation-State in Globalization capitalism
Basic Elements of a State Second World - countries that supported communism and
1. Territory the Soviet Union.
2. People 2. The Global South captures a deterritorialized geography of
3. Sovereign Power capitalism’s externalities and means to account for
subjugated peoples within the borders of wealthier countries,
Westernization - means that other nation-states are at a such that there are economic Souths in the geographic North
disadvantage when dealing with the Americas and Europe, most and Norths in the geographic South.
especially in the agricultural industry, in which second- and third- 3. It refers to the resistant imaginary of a transnational political
world nations face competition from Western companies subject that results from a shared experience of subjugation
under contemporary global capitalism.

Globalization’s Impact on the State New Internationalism in the Global South

Factors which lead to the increase and acceleration of movement As a symbol and metaphor, global south is not only relevant for
of people, information, commodities and capital. those who live in countries traditionally associated with it. The
1. Lifting of trade barriers global in global south does not only mean that the south is the
2. Liberalization of world capital markets globe but also signifies that the south continues to be globalized.
3. Swift technological progress (information technology, The global south while embedded in specific geographic
transportation and communication) imaginaries, represents emergent forms of progressive
Problems afflicting the world today which are increasingly cosmopolitanism. It is always emergent and provisional
transnational in naturethose that cannot be solved at the national internationalism.
level or State to State negotiations.
1. Poverty ASIAN REGIONALISM
2. Environmental pollution Regionalism - refers to the decentralization of political powers or
3. Economic crisis competencies from a higher towards a lower political level.
4. Organized crime and terrorism
Effects of greater economic and social interdependence to Views of Globalization in the Asia Pacific and South Asia
national decision- making processes.
Asia Pacific and South Asia - refer together to the regions of East Complex historical forces shaped new urban middle classes. They
(or Northeast) Asia, South Asia, the Pacific Islands, and South Asia. are product of regional economic development, which has taken
It includes some of the world's most economically developed place in waves under the U.S. informal empire over a half century,
states such as Japan, South Korea, Singapore, and Taiwan, and first in Japan, then in South Korea, Taiwan, Hongkong, and
highly impoverishes countries such as Cambodia, Laos, and Nepal. Singapore, Thailand, Malaysia, Indonesia and Philippines, and now
It also includes the largest and most populous states on the globe in China. They are product as well for development states. Their
including China and India and some of the world's smallest such as lifestyles have been shaped in very complex ways by their
the Maldives and Bhutan. appropriation of things American, Japanese, Chinese, South
Korean, Islamic and other ways of life, often mediated by the
Asia Pacific and South Asia’s Impact on Globalization market.
Asia was the central global force in the early modern world The political consequences of the rise of East Asia middle classes
economy. It was the site of the most important trade routes and vary. The cultural and political hegemony of the South Korean
in some places more advanced in technology than West such as middle classes is embodied by single generation, while that of the
science and medicine. Colonies in the Asia pacific and South Asia Taiwanese middle classes manifest itself in the political
influenced the West and vice versa. They were often “laboratories assertiveness of an ethnic majority. Southeast Asian middle
of modernity”. Colonialism was not simply a practice of Western classes also exemplify the diversity and complexity of class
Domination but a product of what one thinks of as Western and formation. Thai middle classes are coherent socially, hegemonic
modern. culturally, and ascend politically; their counterparts in Malaysia
and Indonesia are socially divided, dependent on the state,
The Region-Making in Southeast Asia and Middle-Class politically assertive and vulnerable; and the Philippine middle
Formation: classes are socially coherent, less dependent on the state,
The Third Wave culturally ascendant, but politically vacillating.
Regionalization entails complex and dynamic interactions
between and among governmental and nongovernmental actors
which resulted to hybrid East Asia. The main engines of
hybridization are explained by the successive waves of regional
economic development that is powered by developmental states
and national and transnational capitalism that nurtured sizeable
middle-classes that share a lot in common in terms of professional
lives and their lifestyles, in fashion, leisure, and entertainment, in
their aspirations and dreams

Two salient points in the history of east Asian middle-class

formation.
1. Middle class formation in Southeast Asia was driven by global
and regional transnational capitalism working in alliance with
national states while middle class in Japan, South Korea, and
Taiwan were created by developmental states and national
capitalism.
2. New urban middle classes in East Asia, whether in Japan, South
Korea, Taiwan, or Southeast Asia, with their middle-class jobs,
education, and income, have in turn created their own new
lifestyles commensurate with their middle-class income and
status.

Middle Classes in The Philippines

New urban middle classes emerged in the post 1986 Philippines.
They were created through growth in retail trade, manufacture,
banking, real estate development, and an expanding range of
specialist services such as accounting, advertising, computing, and
market research.
Fostered by government policies of liberalization and
deregulation, the development of these new enterprises has been
oriented both toward the export and domestic markets and has
entailed increasingly diverse sources of foreign investment and
variable subcontracting, franchise, and service relationships, with
a noticeable expansion of ties connecting the Philippines to other
countries in East and Southeast Asia

Regional Implications of Middle-Class Formation in East Asia

LONG QUIZ Issues on global economy are the main concern of the United
Which of the following is NOT aspect that led to a greater Asian Nations.
integration? ✓ FALSE
✓ Intergovernmental institutions were established. Both intergovernmental and private institutions help the
It is for culture and arts, sports, disaster management, education, functionality of a global economic by lending money to their
environment, health, information, labor, rural development and member states and global corporations.
poverty eradication, women, youth, and civil service matters. ✓ TRUE
✓ Socio-cultural community UN is appreciated regarding how its convening capacity and
Which of following is an attribute of a nation? mobilizing power are utilized to help funnel and consolidate
✓ It highlights the organic ties that hold groups of people knowledge from outside and ensure its discussion and
together. dissemination among governments.
One principal driver of globalization is the social media. Social ✓ FALSE
media have changed the ways in which this knowledge is being The contrasting moral structures of social behavior in different
recorded and passed on. member - states complicate the formulation of a normative
✓ First statement is wrong, second statement is true standard is not applicable to all.
Europe was the central global force in the early modern world ✓ FALSE
economy. Globalization is an external phenomenon being pushed ✓ The terms Global South and Third World are conceptually
into the region by world power particularly the United States and the same. They both refer to conditions usually found in
Europe. developing countries
✓ First statement is wrong, second statement is true ✓ TRUE
Refers to the decentralization of political powers or competencies
from a higher towards a lower political level. Prehistoric- fire, hunting and gathering, language, agriculture
✓ Regionalism • In this period, contacts among hunters and gatherers
This is the only global international organization dealing with the were spread around the world.
rules of trade between nations.
✓ World Trade Organization Pre Modern- Wheel, Compass, writing , paper printing
Globalization is spatial because it occurs in physical places. Which • This period moved globalization to a new level because
of the following does not support the statement? invention of the wheel was a great social and
✓ Cities act on globalization and globalization acts on cities. technological boost.
UN's prime judicial organ. • During this period, a devastating global epidemic occurs
✓ International Court of Justice which is the black death.
It is the sum total of services and goods produced by country per • Humans began using metal instead of stone as their
annum. primary material.
✓ GDP • During this period the invention of cuneiform by the
In the 16th century world system analyst identify the origin of Mesopotamians became a major leap in communication
modernity and globalization. In the 19th century the advent of technology.
globalization approaching its modern form is witnessed.
✓ Both statements are true Early modern- Water mills, postage systems, advanced navigation,
Globalist claim to convince people to adopt the natural discipline • Capitalism, governance, and the economic system arose
of the market if they want to prosper. While neoliberalist believe in this period.
that the spread of market force driven by technological • The invention of printing press, gun powder, and new
innovations is inevitable in globalization. navigational techniques.
✓ Both statements are wrong
Which of the following is not a factor that led to the increase and Modern- Coca-Cola, Sewing machine, telegraph
acceleration of movement of people, information, commodities, • During this period, population explosion, an increase in
and capital. migration, and industrialization accelerated happened.
✓ Environmental Pollution • Expansion of transportation, railways, mechanized
It is socio-economic and political divide primarily focused on the shipping, intercontinental air transport enabled the
southern hemisphere of the 1569-designed Mercatorian map. establishment of a genuine global infrastructure while
✓ Global South lowering transportation costs.
These countries were considered to be non-industrialized and
newly industrialized. They lacked the standard systems in banking, Contemporary - The creation, expansion, and acceleration of
finance, and trade. worldwide interdependencies occurred in a dramatic way and it
✓ Third-world countries was a kind of leap in the history of globalization.

TRUE/FALSE
OTHER SOURCES • TRUE
They have investments in other countries, but do not have a
He called for democracy and self-determination. coordinated product offering in each country. They are more
• President Woodrow Wilson focused on adapting their products and services to each individual
Which of the following is an attribute of today's global system? local market.
• International organizations also take on lives of their • MNC
own. They are importers and exporters with no investments outside
Security Council's veto power over resolutions has minimal impact their home countries.
to UN's functions. • International Companies
• FALSE They have investments and are present in many countries. They
Which of the following was not an initiative of the Socialist typically market their products and services to each individual
International? local market.
• Overtime and hazard pay • Global Companies
United Nation's Trusteeship Council is still operational. They are more complex organizations that have
• FALSE investments in foreign operations, have a central corporate facility
Nation-states no longer have influences on IGOs since they also but give decision - making, research and development, and
take lives on their own. marketing powers to each individuals foreign market.
• FALSE • TNC
Which of the following was not included in the Napoleonic Code? It aims to end extreme poverty and promote shared prosperity in
• Fraternity among the nobilities a sustainable way.
Which of the following is not a member state of ASEAN? • World Bank
• Sri Lanka It works to foster global monetary cooperation, secure financial
The following states have permanent membership in the UN's stability, facilitate international trade and more.
Security Council except for one. • International Monetary Fund
• Germany It is an American multinational investment banking and financial
This is UN's central deliberative and the only organ where corporation. It is the 4th largest bank in the US.
member-states have equal representation in discussion and • Citigroup
consideration, and policymaking. Their missions are to spur social progress and economic growth in
• General Assembly order to address and reduce poverty.
Internationalization, also known as globalization, refers to the • ADB and AfDB
deepening of interactions between states. Both intergovernmental and private institutions help the
• FALSE functionality of a global economic by lending money to their
Which of the following is not an effect of globalization to nation- member states and global corporations.
states? • TRUE
• Creation of standardized global government It was the result of the establishment of global economy that
Which of the following is ASEAN's motto? involved the homogenization of trade and commerce.
• One Vision, One Identity, One Community • Global market integration
He conceptualized the idea of liberal internationalism. It started when big American corporations began to emerge after
• Immanuel Kant the second WW2 with the rise of new
Liberal Internationalism is based on the view that capitalism is a conglomerates.
global system and that the working class must unite as a global • Global market integration
class to forward the struggle against capitalism. Which of the following is NOT the structural periods in the
• FALSE existence of global corporation after the war?
It sought to restore the sovereignty of states. • target-based period
• The Concert of Europe What are the three common attributes of global corporation?
The creation of League of Nations was a big factor in ending World • A, B, and C
War II. It is an agreements between major continental powers of Europe
• FALSE after a brutal religious wars bet Catholics and protestants;
Issues on global economy are the main concern of the United exercise complete control over domestic affairs and swear not to
Nations. meddle in each other's affair.
• FALSE • Treaty of Westphalia
Which of following is not a primary function of the United He believed in spreading the principles of the French Revolution -
Nations? liberty, equality, and fraternity - thus challenge kings, nobility and
• Promoting cultural heritages religion in Europe.
With 164 member-states, it is the sole IGO that caters to rules of • Napoleon Bonaparte
trade on global scale. It is a system of heightened interaction between various sovereign
• WTO states, particularly the desire for greater cooperation and unity
The global interstate system is a facet of contemporary political among states and people.
globalization that seeks to form collaboration among nation states • Internationalism
through the establishment of intergovernmental organizations. The country that was not able to join the League of Nations.
 • US Which of the following is NOT effect of globalization on nation-
He opposed nationalism because it prevented the unification of states?
the worlds workers. • rise of MNC
• Friedrich Engels He is an internationalist but did not believe in nationalism. The
It is an attitude that seeks to understand all the interconnections true form of internationalism reject
of the modern world and to highlight patterns that underlie them. nationalism, he divided the world not into counties but into
• Globalism classes: capitalist and proletariats.
It is a facet of contemporary political globalization that seeks to • Karl Marx
form collaboration among nation - states thru the establishment It sustains consumer choice, private property, and economic
of intergovernmental organization. freedom.
• Global interstate system • Capitalist
It makes world affairs systematic, secured and formulaic. Economically poor families, underprivileged individuals, labor
• Global Governance practices, and suppression of human rights, and other violations
It is the central deliberative and only organ where all member- of basic rights in Europe, Australia, US, and Canada are the pieces
states have equal representation in discussion, and consideration of evidence that people from developed countries also share
and policymaking. similar experiences with people from developing countries.
• General Assembly • TRUE
It is the main organ for cooperation, policy review, policy It is the growth of societal integration within a region and to the
dialogue, advice on social, economic and environmental issues. often undirected processes of social and economic interaction
• Economic and Social Council • Regionalization
The organ which has the commitment to preserve peace and It is the expansion and intensification of social relations and
security. consciousness across world-time and world-space.
• Security Council • Globalization
The organ tasked to execute the daily activities assigned by the The establishment of collaborations and cooperation based on
five other organs. respect is what makes Asian nations stronger than ever.
• Secretariat • TRUE
The organ tasked to administer international oversight for 11 It is process of intergovernmental collaborations between two or
territories and to make sure that adequate procedure are taken more states.
for independence and self-government. • Regionalism
• Trusteeship Council It gives importance to human rights, drugs, foreign relations,
UN's prime judicial organ. defense, law, and transnational crimes.
• International Court of Justice • political security
UN is appreciated regarding how its convening capacity and It includes economic and finance ministers, central bank
mobilizing power are utilized to help funnel and consolidate governors, free trade area, investment area, agriculture and
knowledge from outside and ensure its discussion and forestry, transport ministers, etc.
dissemination among governments. • economic community
• FALSE It is for culture and arts, sports, disaster management, education,
Institutions can be places where ideas are concerned and left environment, health, information, labor, rural development and
behind. The modality and processes for enforcing compliance with poverty eradication, women, youth, and civil service matters.
international norms and laws are not present. In fact, some UN • socio-cultural community
staff members violate, cheat and challenge them. They created to help reduce trading costs, increase business
• TRUE investment, and help North America be more competitive in the
It defines the political scope of globalization. global marketplace.
• Contemporary Global Governance • NAFTA
UN belittle the helping hand of non - governmental organizations ASEAN partnered with ASEAN +3 to address the 1997 Asian
(NGOs) and the global public opinion. financial crisis and help each other cope with the crisis. Which of
• TRUE the following is not the country included in ASEAN +3?
The contrasting moral structures of social behavior in different • North Korea
member - states complicate the formulation of a normative It is a political and economic union established to ensure free
standard is not applicable to all. movement of people, goods, services, and capital within the single
• FALSE market.
It is responsible for bringing human rights into the realm of • EU
international law thru the Universal Declaration of Human Rights. Initially, ADB focused by providing loans, technical assistance,
• United Nations grants, and equity investments.
United Nations was established after ____________. • ADB
• World War 2 The agency targets to promote international cooperation and the
Their primary aim is to foster strong economic, political, cultural development of the Japanese and global economy by supporting
educational, and technical intergovernmental relationships. the socio-economic development, recovery, or economic stability
• Intergovernmental Organizations of developing regions.
• JICA
Which of the following is NOT aspect that led to a greater Asian ABBREVIATIONS
integration?
• Intergovernmental institutions were established. IMF International Monetary Fund
It is the sum total of services and goods produced by country per
annum
UN United Nations
• GDP EU European Union
The term Third World ceased to exist when the Cold War ended.
ASEAN Association of Southeast Asian Nations
• TRUE
Association of Southeast Asian Nations 5/ASEAN 5: Indonesia, TNC Transnational corporations
Malaysia, Philippines, Singapore, and Thailand
GE General Electric
• FALSE
It is most probably because the continent comprises one-third of IMS International Monetary Systems
the world's land mass.
• Asia
EMS European Monetary Systems
The term Asia was originated from ________. EMU Economic and Monetary Union
• West (from Ancient Greece)
It is metaphor for interstate inequality and a product of Western EFSM European Financial Stability Mechanism
imagination EFSF European Financial Stability Facility
• Global South
These countries were considered to be non-industrialized and SPV Special purpose vehicle
newly industrialized. They lacked the standard systems in banking, GDP Gross Domestic Product
finance, and trade.
• Third World OECD Organization for Economic Co-operation and
It is characterized by state control of the means of production, Development
distribution, and exchange. WTO World Trade Organization
• Socialist
It is the home of all members of the Group of Eight (G8)-Canada, MNC Multinational corporations
France, Germany, Italy, Japan, United Kingdom, Russia, and the CFO Chief financial officers
United States of America.
• Global North FDI Foreign Direct Investment
The terms Global South and Third World are conceptually the BRICS Brazil, Russia, India, China and South Africa
same. They both refer to conditions usually found in developing
countries. GATS General Agreement on Trade in Services
• TRUE GATT General Agreement on Tariffs and Trade
It promotes social and economic development in Asia, composed
of 67 members, 48 of which are from the Asia-Pacific region. WB World Bank
• ADB PTA Preferential Trade Areas
Which of the following is NOT how do Asian countries respond
with regional alternatives to the challenges brought about by FTA Free Trade Agreements
globalization? NAFTA North American Free Trade Agreement
• as a local group
It has the 50-year-old ASEAN group and the failed East Asia NAFTA North Atlantic Free Trade Agreement
Economic Group (EAEG). CM Common Market
• Asian Regionalism
G8: MLG Multi-level Governance
• I, II,III, IV IO International organizations
It is socio-economic and political divide primarily focused on the
southern hemisphere of the 1569-designed Mercatorian map. NATO North Atlantic Treaty Organization
• Global South APEC Asia Pacific Economic Cooperation
ADB Asian Development Bank
JICA Japan International Cooperation Agency
OECD Organization for Economic Cooperation and
Development