Course Number: GE 4

Course Title: The Contemporary World

Module Number: 1

Module Overview:
This chapter introduces history as a discipline and as a narrative. It presents the definition of the history,
which transcends the common definition of history as the study of the past. This chapter also discusses several issues
in history that consequently opens up for the theoretical aspects of the discipline. The distinction between primary
and secondary source is also discussed in relation to the historical subject matter being studied and the historical
methodology employed by the historian. Ultimately, this chapter also tackles the task of the historian as the arbiter
of facts and evidences in making his interpretation and forming historical narrative.

Module Outcomes:
At the end of the module, the learner should have;
 Differentiate the competing conceptions of globalization;
 Identified the underlied philosophies of the warying definitions of globalization

Discussion

See: https://www.youtube.com/watch?v=z_yqK8KKwDc
Introduction to the Contemporary World

What is
Globalization?

1. Globalization is the increasing interaction of people, states, or countries through the growth of
the international flow of money, ideas and culture. Thus, globalization is primarily focused on
economic process of integration that has social and cultural aspects.
2. It is the interconnectedness of people and business across the world that eventually leads to
global, cultural, political, and economic integration.
3. It is the ability to move and communicate easily with others all over the world in order to
conduct business internationally.
4. It is the free movement of goods, services, and people across the world in a seamless and
integrated manner.
5. It is the liberalization of countries of their impact protocols and welcome foreign investment
into sectors that are the mainstays of its economy.
6. It refers to countries acting like magnets attracting global capital by opening up their
economies to multinational corporations.

Globalization as Defined by Other Authors.

 1. Martin Albrow and Elizabeth Kingdefined globalization as those processes by which the people
of the world are incorporated into a single world society.
2. Anthony Giddensdefines globalization as the intensifications of worldwide social relations
which link distant localities in such a way that local happenings are shaped by events occurring
many miles away and vice versa.
3. Roland Robertson, Professor of Sociology at the University of Aberdeen described globalization
in 1992 as the compression of the world and the intensification of the consciousness of the
world as a whole.

Historical Foundation of the term “Globalization”

Though many scholars place the origins of globalization in modern times, others trace its
history long before the European Age of Discovery and Voyages to the New World, some even to the
third millennium BC. Large-scale globalization begun in the 1820s in the late 19th century, the
connectivity of the world’s economies and cultures grew very quickly.
In 1897, Charles TazeRussel (of the Watch Tower Bible and Tract society) coined a related
term, corporate giants. This term refers to the largely national trusts and other enterprise of the time.
In 1930, the word “globalize” as a noun appeared in a publication entitled Towards New
Education where it denoted a holistic view of human experience in education.
In the late 1970’s the word “globalization: had been used in its economic sense. However, in
the late half of the 19780’s Theodore Levitt popularized the treble to the spread of “globalization” by
bringing it into the mainstream business audience?
Lately in 2000, the International Monetary fund (IMF) identified four (4) basic aspects of
globalization: (1) trade and transactions; (2) capital and investment movements; (3) migration of
knowledge (4) dissemination.
It is only in 2017 when the word “globalization” was often used in teaching, in discussion, in
meetings and conferences, in lectures and so on.
This time 2018, the phenomenon of globalization is now on full swing in all academic
disciplines.
Indicators of Globalization
The jet engine, the internet, e-baking, e-book, e-bike, the LRT, MTR and other inventions of
science and technology are attributable to the spread of globalization. These are some of the modern
offspring of development in our infrastructure system. These improvements that people enjoy today
in this contemporary world have been major factors in globalization which have generated further
interdependence in economic and cultural activities among nations.
Likewise, environment challenges such as global warming, cross-boundary water, air
pollution, and over-fishing of the ocean are linked with globalization. Globalization processes affect
and are affected by business and work organization, economics, socio-cultural resources, and the
natural environment. Academic literature commonly subdivides globalization into three major areas:
economic globalization, cultural globalization, and political globalization.

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Nature of Globalization
Globalization is a conglomerate of various multiple units located in the different parts of the
globe which is linked by common ownership. The multiple limits draw on parts of the globe but all
linked by common ownership. Multiple units draw on a common pool of resources, such as money,
credit, information, patents, trade names and control systems. The units respond to some common
strategy. Products presence is in different markets of the world. Human resources are highly diverse.
Transactions involving intellectual properties such as copyrights, patents, trademarks, and process
technologies are across the globe.
Dimensions of Globalization
The following are the dimensions of globalization
1. Planning to expand the business on a worldwide scope.
2. Giving up the distinction between domestic and foreign market and instead developing a global
outlook of such business.
3. Locating the production and the physical facilities of the business by considering global
business dynamics irrespective of national consideration.
4. Creating product development and production planning on a global market sphere.
5. Global sourcing of the factors of production such as raw materials components, machinery,
technology, finance, and others that are obtained from the best source anywhere in the world.
6. Global orientation or organization structure and management culture.

Reasons for Globalization

Why do we have to globalize especially as this contemporary world?
Here are the reasons:
1. Rapid shrinking of time and distance across the globe. One can easily cross the bridge going to
the other side of the market place due to advance tools of technology than before.
2. Domestic markets are no longer rich as a consequence of many interlocking factors.
3. Companies and institutions go global to find political and economic stability which is relatively
good in other countries than the country of origin.
4. To get technological and managerial know-how of other countries due to their advancement in
science, technology7, education, health and other fields of discipline.
5. To reduce high transportation costs if once goes globally using the advance tools of
communication and information.
6. To be close to raw materials and to markets for their finished products which are not available
in the country or origin.
7. The creation of the World Trade Organization (WTO) had made it possible in stimulating
increased cross border trade. There are other world bodies like the UN and several arbitration
bodies where countries agree.

Stages of Globalization
There are five (5) stages of globalization. These are:
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 Stage 1
The first stage is the arm’s length service activity of an essentially domestic
company/institution which moves into new market overseas by linking up with local dealers and
distributors.
Stage 2
In this stage, the company/institution takes over these activities on its own.
Stage 3
In this stage, the domestic-based company institution begins to carry out its own
manufacturing market and sales in key foreign markets.
Stage 4
In this stage, the company/institution move to a full insider position in these markets
supported by a complete business system including Research and Development (R&D) and
engineering. However, the headquarters mentality continues to dominate.
Stage 5
In this stage, the company/institution moves towards a genuinely global mode of operation.
In this stage, global localization happens, that is, the company/institution serves local customers in
markets around the globe responding to their needs. This requires an organizational transition i.e.
the company must denationalize its operations and create a system of values shared by global
managers.
Merits of Globalization
What can a company or an institution gets form globalization. There are eight (8) merits or
advantages.
1. Global competition and important keep a lid on prices such that inflation is less likely to derail
economic growth.
2. An open economy spurs fast innovation with fresh ideas from abroad.
3. Export jobs often pay more than other jobs.
4. Unfettered capital flow keeps interest rates now.
5. Living standards go up faster.
6. Productivity grows more quickly when countries produce goods and services in which they are
of comparative advantage.
7. Countries liberalize their visa rules and procedures so as to permit the full flow of people from
country to country.
8. It results in freeing up the unproductive sector to investment and the productive sector to
export related activities resulting in a win-win situation for the world economy.

Demerits of Globalization
Globalization also has its disadvantages or demerits. Among these are:

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 1. Several people lose their jobs when companies import cheap labor or material or shift
production abroad.
2. Workers face pay cut demands from employers who often threatens to export jobs.
3. Unregulated globalization can cause serious problem to poor and developing countries in
terms of labor force, wages, benefits, job, termination, and others.
4. High foreign stake on industries where it is not necessarily needed could affect the economic
growth of domestic enterprise.
5. Sovereign of a country and company/institution may be at stake.
6.
Importance of Studying Globalization
In today’s contemporary world, it is important for students to understand and appreciate the
study people of globalization for the following reasons:
1. There is a greater demand in business and industry, health, engineering and technology to have
people who can work with people of other nations and cultures.
2. There is a greater demand promoting the local business and industry to other countries and if
need be, owners travel independently and internationally for a better promotion.
3. The contemporary world face global challenges that will take interdisciplinary groups to solve
these challenges: these challenges are: how to provide access to clean water, clean
environment, clean renewable energy that is affordable to everyone and how to deal with the
unpredictable climate change just to name a few. These global challenges need to be solved as
soon as possible through the gathering and sharing of information across disciplines,
institutions, and other entities in a global scale.
4. Creating meaningful, harmonious, and workable relationship that link globally is an important
aspect of the merits of globalization, especially if one wish to be President of the future
generation.
5. Knowledge of the merits, demerits and reason for globalization will enable the students to
work as model of collaborative international team in the near future along the areas of
business, education, health, science, arts, engineering, hotel industries, etc. and discuss bets
products in these areas.

The importance of Globalization for Everyone

According to Neil Kokemuller, a writer, globalization is the expansion of local economies and
business into a broader international market place. Even small businesses have gotten active in the
global environment as the internet and mobile technology have enabled communication across
continents and countries. Globalization has become important for a number of reasons, including
the overall need for business to compete, according to Kokemuller.
The internet revolutionized the business arena, because it created a whole new virtual
marketplace that expands beyond physical and geographical boundaries. Companies in foreign
countries can now compete for customers in the United States by leveraging their own country’s
resources, lowers cost of labor and affordable distribution processes. In the same way, U.S
companies have the opportunity to appeal to customers in the Philippines and other countries by
promoting their goods and services.

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 The development of business, industry and income levels in several large population centers
has also contributed to the importance of globalization. China, India and Brazil are prominent
examples of thriving economies as of 2013. Nearly two billion people reside in these countries. As
customers gain revenue dollars can provide. Partnership opportunities with business in these
countries can aid growth.
The Theory of Comparative Advantages
Globalization is grounded on the Theory of Comparative Advantage. This theory states that
countries that are good at producing particular good are better of exporting it to countries that are
less efficient at producing that good. Conversely, the latter country can then export the goods that
is produces in an efficient manner to the former country which might be deficient in the same. The
underlying assumption here is not all countries are good at producing all sorts of goods and hence
they benefit by trading with each other. Further, because of the wage differential and the way in
which different countries are endowed with different resources, countries stand to gain by trading
with each other.
Philosophy Underlying Globalization
Globalization is one of the most widely spread recent cultural, social, economic, and political
phenomenon which has strongly marked the discourse of the humanities and social sciences.
1. The concept of globalization has only recently been widely accepted and adapted- words like
global, globality, globalization, globalism as well as the concepts of global market, global
ecology, global citizen, it’s more truly unknown up to the very end of the 20th century.
2. Discussion of world issues used the derivatives of “international” rather than “global” relations
because of the recent popularized new concept of “globalization” has resulted in innumerable
contradicting definition of the same.
3. While, normatively speaking, some people associate globalization with progress, prosperity,
and peace, some others consider it to be retrogression, disaster and decay.
4. The common and indisputable characteristics of all its definitions is the view that globalization
is “ a process of economic, social, culture, and political activity, which transcends nation-state
borders and that it pertains to the world as a whole.” It is within in this context that the multi-
dimensionality of the globalization process comes to the foce.
5. Globalization is a complex and controversial process of the building of the world as a whole due
to the creation of global institutional structures and global cultural institutional structures and
global cultural forms like a free market (economic unification of the world with uniform
patterns of production and consumption; democratic integration of the world based on
common interest of humankind, such as equality, human rights protection, rule of law, peace
and security, and moral integration of the world on humanistic values-instead of national state
particularism.
6. Various ideological movements of resistance to globalization have been emerging in response
to globalization such as the violent and destructive mass demonstrations staged in various
countries are a manifestation of resistance.

Finally, based on the above philosophical dimensions underlying globalization is the free
movement of goods, services and people across the world in a seamless and integrated manner.

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Globalization can be thought of to be the result of the opening up of the global economy and the
concomitant increase in trade between nations in this contemporary world.
The point here is that, globalization has had positive and negative effects and therefore, a deep
approach is needed when discussing the concept. What is un deniable is that GLOBALIZATION is here to
stay hence it is better for the countries in the global economy to embrace the concept and live with it in
this contemporary world.

Activity 1
Direction (s): Define the following terms according to your understanding: (Don’t copy
from the textbook.)

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 1. Globalization

2. Contemporary

3. Contemporary World

4. Philosophy

5. Dimension

Activity 2
Direction: Answer the following.

1. What is the important of studying globalization?

2. When was the beginning of the contemporary world?

3. Why is the word “globalization” given emphasis or importance in today’s contemporary world?
Explain.

References: The Contemporary World: Dr. Mariano M. Ariola, LL.B.; Ed.D., L.P.T
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