Globalization, as a theory lies in in the works of many 19th and 20th century scholars and intelllectuals

like Karl Marx, MacKinder, and Robertson who then began to introduce the term “globality”. However, it
was in the 1960s and 1970s when this term gained worldwide attention (Held and McGrew,2002).

Ritzer (2008), he described this phenomenon as the spread of worldwide practices, relations,
consciousness, and organization of social life. The interconnectedness and social segments from macro-
institutions to the smallest sectors of the world have coincided the fabrics of globalization.

Justine Rosenberg argues that “globalization as a phenomenon gave rise to the interconnectedness of
human society that replaced the sovereign state system with a multilateral system of global
governance”. His definition centers on the process, condition, time, and age of this condition.

Held and McGrew (2003) offer the following definition of globalization: “Globalization refers to a
multidimensional set of social processes that create, multiply, stretch, and intensify worldwide social
interdependencies and exchange while at the same fostering in people a growing awareness of
deepening connections between the local and the distant”.

best scholarly description of globalization is provided by Manfred Steger who described the process as
“the expansion and intensification of social relations and consciousness across world-time and across
world-space.” Expansion refers to “both the creation of new social networks and the multiplication of
existing connections that cut across traditional political, economic, cultural, and geographic boundaries.”
Intensification refers to the expansion, stretching, and acceleration these networks.

UNDERLYING PHILOSOPHIES OF THE VARYING DEFINITIONS OF GLOBALIZATION

A. Realism

The realists’ perspective in explaining globalization focuses on the shifting distribution of power among
states (Walt, 1998 and Snyder, 2004). They explained that the core idea of dominating the world is
through the employment of power. This force comes from different angles, depending, on the power
availability of a nation. However, realists warn that countries may suffer and struggle to maintain its
power if it will be overarched and used wrongly. In globalization, countries that have the power to
dominate and control the world are those whose economies have the “powers” to affect and influence
the operation worldwide.

Realists argue that the reason why countries open their economies to the world is because of two
contending reasons. First, financial returns of expanding markets offer new economic opportunities to
the capitalist. Second, the political explanation behind globalization is best described with the
application of its founders like Hans Morgenthau and Kenneth Waltz, realist-thinker John Mearsheimer
and realist-doer Henry Kissinger. The continued centrality of political power and military strength are
obvious forces of interdependence and realistic behavior of the more and most powerful countries.
B. Liberalism

Liberalism is a perspective in international relations where actors and institutions emphasize

relationship and negotiations. Liberalists observe the importance of interaction and communication and
focus on solving problems and conflicts affecting them. This idea is very evident in countries where
democratic governance and institutions play major roles in maintaining national cohesiveness in
managing domestic and international affairs.

Liberal accounts describe the transformation of political-economic structures and the development of
global interconnectedness in terms of the following factors:

a. Spread of democracy and institutions

b. Global economic ties

c. International organizations

C. Idealism

The advent of globalization, formation of institutions, and the interplay of nations should be guided by
ethical and legal standards. Idealists and constructivists hold the notion that values, and norms play
pivotal roles in sustaining and reforming the process and works of individuals, groups, or nations. This
theory emphasizes on the functions of ideologies, frameworks, systems, and identities in understanding
globalization and international order. Its core beliefs centers on the centrality of ideas, beliefs, and
collective values that shape the political and economic landscapes of the world.

DIMENSIONS OF GLOBALIZATION

a. Economic globalization

 It refers to the mobility of people, capital, technology, goods and services internationally. It is
also about how integrated countries are in the global economy. It refers to how interdependent
different countries and regions have become across the world.

b. Cultural globalization

 It refers to the transmission of ideas, meanings, and values around the world in such a way as to
extend and intensify social relations. This process is marked by the common consumption of
cultures that have been diffused by the internet, popular culture media, and international travel.

c. Political globalization
  It refers to the growth of the worldwide political system, both in size and complexity. The
creation and existence of the United Nations has been called one of the classic examples of
political globalization.

Chapter 2

ECONOMIC GLOBALIZATION

economic globalization refers to the increasing interdependence of world economies as a result of

growing scale of cross-border trade of commodities and services, flow of international capital, and wide
and rapid spread of technologies. It reflects the continuing expansion and mutual integration of market
frontiers, and as an irreversible trend for economic development of the whole world. Economic
globalization primarily comprises the globalization of production, finance, markets, technology,
organizational regimes, corporations, and people. Nation-states, international governmental and non-
governmental organizations, global corporations, and international financial institutions are global
actors that facilitate the economic activities of the world economy.

INTERNATIONAL TRADE

International Trade is the process and system when goods, commodities, services cross national
economy and boundaries in exchange for money or goods of another country (Balaam and Veseth,
2008). Global trade has grown dramatically since the post-cold war era as a result of increasing demand
of goods and services of countries. This global norm is a reflection of growing practice of
internationalizing and globalizing local products and services.

Immanuel Wallerstein- Immanuel Maurice Wallerstein was an American sociologist and economic
historian. He is perhaps best known for his development of the general approach in sociology which led
to the emergence of his world-systems approach.

MODERN WORLD SYSTEM

The Modern World System (MWS) theory developed by

Immanuel Wallerstein, is an approach to world history and
social change that suggests there is a world economic system in
which some countries benefit while others are exploited. The
world systems theory is established on a three-level hierarchy
consisting of core, periphery, and semi-periphery areas.
 a. Core Countries - are dominant capitalist countries that exploit peripheral countries for
labor and raw materials. They are strong in military power and not dependent on any
state or country. They are focused on higher skill and capital-intensive production.

b. Semi-periphery - plays a significant role when it comes to stabilizing world systems since
it facilitates interactions and connections between high-income states and low-income
states. Also referred to as the middle-class, they exist to divide the economic power
between periphery and core areas.

c. Periphery Countries - lack a strong central government and possesses a

disproportionately small share of the world’s wealth. These areas are less developed
than the core and semi-periphery. These countries export raw materials to the core
countries; are often dependent on more developed nations for capital; and have
underdeveloped industry. These countries also have low-skill, labor-intensive
production, or in other words, cheap labor.

Types of Market Integration:

1. Horizontal Integration

- This occurs when firms or agency gains control of other firms or agencies performing similar
marketing functions at the same level in the marketing sequence. In this type of integration, some
marketing agencies combine to form a union with a view to reducing their effective number and the
extent of actual competition in the market.

(Examples: Walt Disney’s acquisition of 21st Century Fox and Pixar Animation Studios, Facebook’s
acquisition of Instagram)

2. Vertical Integration

- This occurs when firms perform more than one activity in the sequence of the marketing
process. It is a linking together of two or more functions in the marketing process within a single firm or
under a single ownership. This type of integration makes it possible to exercise control over both quality
and quantity of the product from the beginning of the production process until the product is ready for
the consumer.

a. Forward Integration

- It occurs when a company decides to take control of the post-production process.

b. Backward Integration
 - It occurs when a company decides to buy another company that makes an input
product for the acquiring company’s product.

3. Conglomeration

- The process whereby a firm expands by supplying a range of different products and, as such,
operates in several markets rather than a single market. (Example: In addition to phones and other
electronics, Samsung builds ships, undertakes major construction projects, and is involved in businesses
that include food processing, textile manufacturing, insurance, financial products, and consumer retail).

INTERNATIONAL FINANCIAL INSTITUTIONS

International Financial Institutions are international non-profit agencies, one of the major sources of
financing like regional development banks or banks globally. Major role is to finance productive
development projects or to promote economic development. IFIs focus on long-term investment
projects, institution-building, and on social, environmental, and poverty issues, strengthen economic
governance, ensuring the stability of international financial system, and trade liberalization. IFIs achieve
these objectives through loans, credits, and grants to national governments. Such funding is usually tied
to specific projects that focus on economic and socially sustainable development.

A. World Bank

The World Bank promotes long-term economic development and poverty reduction by providing
technical and financial support to help countries reform certain sectors or implement specific projects -
such as building schools and health centers, providing water and electricity, fighting disease, and
protecting the environment

B. International Monetary Fund (IMF)

International Monetary Fund (IMF) is responsible in supervising exchange rate system, providing loan
programs to economies experiencing balance of payments adjustments, and review domestic monetary
policies. It is mandated to ensure the stability of the international monetary system including exchange
rates and international payments. IMF is keen in monitoring foreign monetary transactions as it has a
direct effect on a country’s financial climate.

C. Asian Development Bank (ADB)

The Asian Development Bank is a multilateral development bank dedicated to reducing poverty in the
Asia-Pacific region by means of sustainable economic growth, social development, and good
governance. The ADB’s main financial instruments are loans, technical assistance, and grants. Most
lending is in the public sector, primarily for large
INTERNATIONALISM VS. GLOBALISM:

 Internationalism

Nations decide to cooperate with one another in political, economic and cultural aspects for promotion
of common good.

Types of Internationalism

1. Hegemonic Internationalism- The dominance of country over a nation or nation-state.

2. Liberal Internationalism- Nation states should give up their freedoms and establish a
continuously growing global system working together to prevent lawlessness in the world.

3. Revolutionary Internationalism- conflict in the society are due to international factors and
alliances.

4. Socialist Internationalism- working class nation unite to protect themselves against exploits,
abuses, and oppressions done by the capitalist class.

 Globalism

The belief that people, goods and information ought to be able to cross national borders freely. It is the
attitude of putting the interest of the entire world above the interest of individual nations.

Types of Globalism:

1. Economic Globalism- The long-distance flows of good, services, capital and information that
accompany market exchange.

2. Environmental Globalism- The distant transportation of materials in the aerial, fluvial or

terrestrial aspects.

3. Military Globalism- the long-distance networks in which force, and the threat or promise of
force are deployed.

4. Social and Cultural Globalism- Movement of information, ideas, images, and of people who
carry those people themselves.
4.3 Challenges in Global Governance

1. Jurisdiction Gap

- The lack of global governance in taking actions to problems affecting key sectors arises from the
absence of authority. This involves the need to create power and jurisdiction to governments and
international organizations that have the commitment in confronting issues like unemployment, human
rights, peace and crimes.

2. Incentive Gap

Global governance is formed with the participation of countries that have the interests to deal problem
affecting their sovereignty. Incentive gap is an issue between the rich and the poor countries of the
world because of uneven distribution of authority and control over decisions and policies. Poor
countries usually do not receive much attention and support from the coalition of body due to its
contributory constraints. Countries that do not provide higher material contribution usually receive
lesser amount of incentives.

3. Participation Gap.

Almost all international organizations are facing the problem of consensus in decision-making. Member -
states sometimes disagree on issues that harmful to their interest. They do not involve in decisions that
are critical to the economic and political welfare of their sovereignty.

António Manuel de Oliveira Guterres (Antonio Guterres)

Portuguese politician and diplomat. Since 2017, he has served as secretary-general of the United
Nations, the ninth person to hold this title. A member of the Portuguese Socialist Party, Guterres served
as prime minister of Portugal from 1995 to 2002.

Organs of United Nations

a. General Assembly

This is UN’s main deliberative and decision-making body represented by all its 193 members. The
assembly holds general debate from September-December in its headquarters in New York City. Two
thirds of votes are required to decide range of issues like peace and security, budget, and admission of
new members to the organization.
b. Security Council

The Security Council is responsible in the maintenance of peace and security. All member-states of UN
are obligated to follow decisions made by the council. In some cases, the council has the power to
impose sanctions or punish members or other bodies for destabilizing international peace and security.
Security Council is composed of 15 members, five are permanent members and ten are non-permanent
members elected for two-year term. China, France, Russia, United Kingdom, and the United States are
the council’s permanent members.

c. Economic and Social Council

This body is commonly called as ECOSOC. Its main function is to coordinate, review, and recommend
policies relating to economic, social, and environmental issues. It serves as the main agency of UN in
monitoring and evaluating key results on sustainable development. The 54 members of ECOSOC,
composed of experts from various fields and disciplines, is elected by the General Assembly.

d. International Court of Justice

The ICJ is the principal judicial body of UN. Its role includes settling legal disputes among concerned
states and provides opinions on legal matters. This is the only UN organ that operates outside United
States with headquarters in the Peace Palace, Netherlands.

e. The Secretariat

The Secretariat is headed by the UN Secretary-General who sits as its Chief Administrative Officer. The
appointment of the Secretary-General is done through the recommendation of the Security Council for a
five-year term. This organ is responsible for the UN’s peacekeeping mission and its day-to-day work and
operation having thousands of international staff stationed in different countries.

CRISIS AND DEVELOPMENT OF LATIN AMERICA

After World War II, Latin American countries decided to end its membership with General Agreement on
Tariffs and Trade system and based its economic strategies on imports. Most businesses and firms were
dependent with domestic market because of the absence of competition with foreign businesses. The
movement of development was at a very low pace due to poor export capacity. This economic
stagnation worsens when the 1970’s oil crisis hit the region. Governments had to borrow money to
finance higher priced-oil imports. Most economies were heavily indebted to western countries and
financial institutions like IMF and World Bank.
Based on the 2013 World Bank Economic Situation and Prospect Report, most Latin American countries
are classified as developing economies. This includes economies of Argentina, Brazil, Chile, Colombia,
Costa Rica, Ecuador, El Salvador, Paraguay, Peru, Uruguay, Venezuela, Guatemala, Mexico, and Panama.
Bolivia, Honduras, and Nicaragua fall under the Heavily Poor Indebted Countries, as of 2013. The
problem of economic protectionism did not work well as formula in managing the entire region during
the 70s. In the case of Brazil and Mexico, they were able to perform well using protectionist policies as
their saving grace, but these economies were fortunate to found an option in its large population and
market.

The 15-year period (1973-1987) of economic crisis in Latin America was described as a lost decade. This
is a period of economic stagnation brought on by domestic policies, high debt, and oil crisis. Argentina,
Brazil, Chile, Colombia, Mexico, and Peru incurred a drastic increase of debt from $53 to $248 billion.
These economies were hurt also by rising unemployment rate, inflation, and investments. To make the
matter worst, inequality and income gap widened resulting to the increase of poverty incidence among
Latin Americans. This decade of lost development was a learning curve for all countries in the region. In
the late 80s, numerous reforms were initiated; inflation was dealt with sound measurements, economic
liberalization was introduced, and foreign investment started to operate.

THIRD WORLD

A Third World country is an outdated and offensive term for a developing nation characterized by a
population with low and middle incomes, and other socio-economic indicators. The neutral and non-
aligned countries during the Cold War formed part of the Third World. The use of this category of world
order is less appealing now because scholars prefer to describe countries as less developed and
developing economy or global south as part of the political and economic condition of the world.
Countries that have colonial history as seen as part of the Third World like Africa, Asia, and Latin
America. Having common historical backgrounds, the Third World has challenges in the political
spectrum of institutional-building; these include human rights, freedom and democracy, dictatorship
and repressive regimes.

Advantages of Regionalism in Asia:

1. Generate productivity gains, new ideas, and competition.

2. Contribute to the efficiency and stability of global financial markets.

3. Diversity sources of global demand, helping to stabilize the world economy and diminish the risks
posed.

4. Provide leadership.

5. Create regional mechanisms.

Organizations Emerged in the Asian Region:

a. Association of Southeast Asian Nation (ASEAN)

A regional intergovernmental organization comprising ten Southeast Asian countries which seeks to
promote intergovernmental cooperation and facilitates economic, political, security, military,
educational and socio-cultural integration amongst its members.

b. Asia-Pacific Economic Cooperation (APEC)

The APEC is a regional economic forum established in the year 1989. It aims to create greater prosperity
for the people of the region by promoting balanced, inclusive, sustainable, innovative, and secure
growth and by accelerating regional economic integration. The 21 APEC member economies work
towards the realization of free and open trade and investment in the Asia-Pacific.

c. East Asian Summit (EAS)

The East Asian Summit is a unique Leaders-lead forum of 18 countries of the Asia-Pacific region. It is
formed to further the objectives of regional peace, security, and prosperity. Established in 2005, EAS
allows the principal players in the Asia-Pacific region to discuss the issues of common interest and
concern, in an open and transparent manner, at highest level.

“Que Sera, Sera”

Whatever Will be Will be