CONTEM_W: The Contemporary World

Prelims Notes
Mx. Marvin Salazar
1st Semester, 2nd Half, Academic Year 2022 – 2023

GLOBALIZATION ○ First wave of globalization

→ The British dominated the world and
INTRODUCTION globalization, steam engines and machines
were invented which improved trading.
● We have a single giant market.
○ The world wars
● Enables active participation in the global economy
→ Put an end to globalization, the economy
either as producers, processors, and consumers.
● All about interconnection and interdependence. flattened, and the US experienced the Great
● Fuels cooperation, innovation, and development. Depression.
● Results in employment losses in western countries ○ Second and third wave of globalization
and being transported to developing countries; tho → New start for the economy, new
there is an income gap; disparity technologies rose and the Iron Curtain
vanished later on. New innovations were
Global Economy or World Economy made such as the internet, more people
belonged in the middle class.
● Refers to the interconnected worldwide economic
○ Globalization 4.0
activities that take place between multiple countries.
→ The US and China dominated
● Pertains to all the economies of the world which we
globalization, the economy began to be
consider together as one giant economic system. It
digital and easier.
includes everything we all buy, sell, and own on this
● Land routes → Sea Routes
planet. ● Global Interstate System
● Involves a wide variety of processes, opportunities, ○ Five Key Attributes of World Politics
and problems related to the spread of economic 1. Nobody is in charge. Each
activities among countries around the world. country is sovereign, which means
that it has the authority to make its
Globalization own domestic and foreign policies.
2. States are still the primary
international players.
● Globalization is the word used to describe the growing 3. These countries interact with each
interdependence of the world’s economies, cultures, other through diplomacy.
and populations; brought about by cross-border trade 4. There are international
in goods and services, technology, and flows of organizations, like the United
investment, people, and information. Nations (UN), that facilitate these
● Keywords: Integration, Interdependence, Interaction, interactions.
connectivity 5. Beyond simply facilitating
● asd meetings between states,
● Globalization is the cause of the formation and international organizations also
creation of the global economy. take on lives of their own.
● Globalization = new world order ● States vs Nation
● Global economy = product of the new world ○ State is a political unit that has sovereignty
● Four Characteristics of Globalization over an area of territory and the people
○ Creation of new and the multiplication of within it. Sovereignty is the legitimate and
existing social networks and activities that ultimate authority over a polity (i.e., a
increasingly overcome traditional political, political unit)
economic, cultural, and geographic ○ Nation consists of a distinct population of
boundaries. people that are bound together by a
○ Expansion and stretching of social relations, common culture, history, and traditions who
activities, and interdependencies. are typically concentrated within a specific
○ Intensification and acceleration of social geographic region.
exchanges and activities. ● Internationalism vs Globalism
○ The creation, expansion, and intensification ○ Internationalism refers to political, economic,
of social interconnections and and cultural cooperation between nations.
interdependencies do not occur merely on ○ Globalism refers to the belief that people,
an objective, material level. goods, and information ought to be able to
● Globalization is viewed as a long term process rather cross national borders unhampered.
than a phenomenon that emerged in the last decades ● Global Governance
or even century. It is an old phenomenon started since ○ Global Multilateral Organizations
civilization began communicating and interacting with ■ World Bank
one another via different means. ■ World Trade Organization
■ International Monetary Fund
● Waves of Globalization ■ United Nations
○ Silk roads ■ North Atlantic Treaty Organization
→ Luxury goods started to be traded by ○ Regional Multilateral Organizations
China to Rome. Trade became global, ■ European Union
luxury goods and spices were traded. ■ ASEAN
○ Spice routes
→ Globalization continued to emerge Should we have a Global Government?
through the Prophet Mohammed. Islamic To have a global government means to have a global institution
trade focused on Spices. that has its own constitution and by laws that are strictly
○ Age of Discovery followed, and to be able to uphold these and enforce these laws
→ America is discovered by Columbus, requires immense power and to have that power is difficult to
Magellan’s circumnavigation led to the achieve given the diversity of the human race and requires the
access to the Spice Islands. complete subordination of all of its 8 billion members. And as we
know “Absolute Power corrupts absolutely.” Moving forward it is Technology & Innovation
prone to western dominance given their influence monetarily,
and it gives the great global powers the platform to bully or push - 30 years have passed, since the end of the Cold War,
Globalization has changed the world a lot. It' s always
smaller states into doing its bidding.
a question of what our world would be like if
Globalization didn’t exist in this century
- But, we could answer that most cultures of countries
would become intact as it is, and there would be no
ADVANTAGES AND BENEFITS OF GLOBALIZATION convenience when it comes to accessing technologies
such as smartphones, laptops, and television that we
Globalization by definition: have today. Innovations such as cars, machinery,
research, and discoveries of technological materials in
- Globalization is the word used to describe the growing the future. Globalization can 't be emphasized by
interdependence of the world’s economies, cultures, capitalism only, but by the effects it has given us, as
and populations; brought about by cross-border trade we live in a better world today.
in goods and services, technology, and flows of
investment, people, and information. Access to New Market
- Globalization is a cultural phenomenon that improves
the economy of some countries and it brings them out - By accessing new markets, you also inevitably
from the ruins of poverty. In both local and develop your products and services in new ways. This
international settings, we learn more about how is one of the greatest pros of globalization. Businesses
globalization itself functions given the fact that it widely frequently need to modify their offers when entering
influences every continent. new markets in order to satisfy regional demand.
While this may seem like more work, it is a great
Poverty Reduction opportunity for innovation. By building successful
products and services, and a solid customer base, you
- Governments and international organizations are can increase your revenue streams beyond national or
increasingly concerned about the influence of state borders.
globalization on poverty eradication. The economic - Reach potential customers
reasons for globalization emphasize the favorable links - Massive growth of revenue
between increased international trade and investment - Wide number of goods & services
flows and quicker economic growth, greater living
standards, rapid innovation, dissemination of Cheaper Prices of Products
technology and management skills, and new economic
possibilities. - Different companies have offered cheap products to
- Poverty increases health risks different countries, it's a good thing that we can buy
- Poverty weakens our democracies those things at a very cheap price. One example is
- Poverty weakens families buying through Shopee and Lazada, these two are for
- Poverty decreases mobility the convenience of every Filipino to buy whatever they
afford at a very affordable price. It might be a win-win
World Peace & Unity situation for both the company and its buyers, the
company is also gaining enough profit. People in both
- Globalization can 't exist without the union or developed and developing countries fit on less money.
agreement of different countries, thus, they must be
willing to put their differences or conflict aside to work Cultural Adaptation
together. Due to this, increased globalization has been
linked as a promoter of peace and unity among - Culture is considered an adaptive mechanism because
nations to achieve a common goal. it provides behavior patterns, strategies, and
- Globalization unites countries so that they can discuss techniques aimed at helping people adapt in a
common goals or resolve international problems. With particular environment
the combined efforts and resources of each country, it - It's an advantage for globalization to develop mutual
allows for more creativity and innovation to solve relationships between different nationals. Given the
problems affecting the people around the globe that time today, Filipinos undeniably romanticized Korean
requires a concentrated global effort. For instance, culture through the popularity of Korean dramas here
world leaders have seen the impact of climate change in the Philippines. Not only K-Drama, but also KPop
and decided to tackle it together in order to combat the has widely influenced the world through the stereotype
rising carbon emissions and such. of its music.

Increased Global Cooperation Labor & Employment

- Nations must be prepared to set aside their differences - Due to globalization, all countries have access to a
and cooperate for a worldwide economy to survive. larger labor pool. Labor has become increasingly
Reactionary movements that deepen racial and ethnic globalized. For instance, there are more commodities
divisions among individuals are sparked by and services being exchanged as more nations around
globalization. The focus of widespread collaboration is the world start to trade with one another, which results
then on supporting one’s own ethnic, racial, or in a rise in jobs.
linguistic group. - Globalization, or the idea that instead of having many
- As a result, growing globalization has been associated diverse markets, the entire world is one enormous
with a decrease in conflict—though not its eradication. market, has connected markets from all over the
For instance, external international cooperation started world. Conversely, wealthy countries may outsource
to play a more significant role in interstate relations as low-skill jobs to developing countries with lower living
environmental challenges grew worse and took on a expenses in order to minimize the cost of items
global character. States have understood that working supplied and pass those savings on to the customer.
together is the only effective approach to safeguard - Produces Valuable Goods & Services
the environment in order not to overexploit and - Contributes to Economic Growth
exhaust it.
DISADVANTAGES AND CHALLENGES OF GLOBALIZATION
Environmental Concerns
International Recruiting
- Increased transport of goods can lead to
- International Recruiting was cited as the most common - increased emissions
challenge by 30% of US and UK tech leaders. - habitat destruction
- HR teams face unknowns when they recruit across - Economic specialization can threaten forest health and
borders. lead to serious environmental issues, often in the form
of habitat loss, deforestation, or natural resource
Managing Employee Immigration overuse
- Increased greenhouse gas emissions, ocean
- Cited as one of the top challenges by 28% of US and acidification, deforestation (and other forms of habitat
UK tech leaders. loss or destruction), climate change, and the
- Immigration laws change frequently, and in some introduction of invasive species all work to reduce
countries, obtaining visas for foreign national biodiversity around the globe.
employees is extremely difficult.

Incurring Tariffs and Export Fees

WORLD DIVISIONS
- mentioned by 29% of tech leaders
- Depending on the market, getting those items Political Context
overseas can be costly for companies looking to sell ● 1494 CE: Treaty of Tordesillas
their products abroad. ○ On June 7, 1494, the
government
Loss of Cultural Identity
● 1946 to 1991
- The success of certain cultures throughout the world ● The end of the Second World
caused other countries to emulate them. But when War is a landmark in
cultures begin to lose their distinctive features, we lose contemporary world politics
our global diversity. (1939-1945).
● The consequences of the end of the Second world
Foreign Worker Exploitation was the rise of two new powers on the global stage.
● The United States and the Soviet Union became the
- Lower costs do benefit many consumers, but it also
creates tough competition that leads some companies greatest powers in the world with the ability to
to search for cheap labor. influence events anywhere on earth, giving rise to a
bipolar world. (Mutually Assured Destruction)
Global Expansion Difficulties ● After World War II, the world split into two large
geopolitical blocs, separating into communism and
- Global businesses must keep up with different and capitalism. This led to the Cold War from 1947 to
ever-changing labor laws in new countries. When
1991.
expanding into new countries, companies must be
aware of how to navigate new legal systems.
Otherwise, missteps lead to impediments and severe
financial and legal consequences.

Increased Competition

- Global free trade is beneficial to the entire system.

Individual Companies, Organizations, and workers can
be disadvantaged, however, by global competition.
This is similar to how these parties might be ● First World Concept
disadvantaged by domestic competition: The pool has ○ First World is a term developed during the
simply widened. Cold War in the 1950s, originally referred to
a country that was aligned with the United
Disproportionate Growth
States and other Western nations in
- Globalization can introduce disproportionate growth opposition to what was then the Soviet
both between and within countries. Union and its allies.
- Within countries, globalization often has the effect of ○ The “Three Worlds” of the Cold War Era of
increasing immigration. 1975
■ First World: Western Bloc led by
Imbalance Trades the USA, UK, NATO, Japan and
their allies
- Any country can trade with any other country, and
globalization causes an imbalance in this ratio. It is ■ Second World: Eastern Bloc led
also termed ‘trade deficit.’ Over the years, trade by the USSR. the Warsaw Pact,
imbalance has increased in developed countries by China and their allies.
competition in the market. ■ Third World: Non-Aligned
Movement (led bv India and
Yugoslavia) and other neutral
Exploits Cheaper Labor Markets
countries.
- Globalization allows businesses to increase jobs and
economic opportunities in developing countries, where
the cost of labor is often cheaper. However, overall
economic growth in these countries may be slow or
stagnant.
Economic Context
● New International Economic Order (NIEO)
○ Set of proposals advocated by developing
countries to end economic colonialism and
dependencies through a new interdependent
economy.
○ Mission to achieve a more equitable
international system was motivated also by Economic Context: First World Countries
increasing inequality in the share of global ● Currently, it describes a developed and industrialized
national income between developed and country characterized by political and economic
underdeveloped countries. stability, democracy, the rule of law, a capitalist
○ The United Nations Conference on Trade economy, and a high standard of living.
and Development (UNCTAD), along with the ● First world countries are often characterized by
associated Group of 77 and the Non-Aligned prosperity, democracy, and stability –both political and
Movement, was the central forum for economic.
discussions of the NIEO. ● A high literacy rate, free enterprise, and the rule of law
○ The United Nations General Assembly are other common characteristics of first world
adopted the Declaration for the countries.
Establishment of a New International ● Examples of first world countries include the United
Economic Order and its accompanying States, Canada, Australia, New Zealand andJapan.
program of action in 1974. Several Western European nations qualify as well,
● Rise of the Liberal Order especially Great Britain, France, Germany, Switzerland
○ Belief in the universal equality of individuals, and the Scandinavian countries.
as well as individual and collective
freedoms. Political liberalism entails the rule ● "First world" is a term that consists of countries that
of law, and the sovereign equality of states, may have the following characteristics: stable
as well as protections for human rights, democracies, high standards of living, capitalist
political rights and civil liberties. economies, and economic stability. Other measures
○ The United States has championed this that may be used to indicate first world countries
system-known as the liberal world order-for include gross domestic product (GDP) or literacy rates.
the past seventy-five years. During this time, ● "Third world" refers to countries with high mortality
the world has enjoyed unprecedented peace rates, especially infant mortality rates. They also have
and prosperity. an unstable and inconsistent economy. These are
● Rise of Liberal Internationalism countries that contain massive amounts of poverty and
○ US and world leaders created a series of in some cases have fewer natural resources than
international organizations and agreements other nations throughout the world. These countries
to promote global cooperation on issues often have to rely on more Industrialized countries to
including security, trade, health, and aid them and help stabilize their economy.
monetary policy.
○ It foresees a gradual transformation of world
politics from anarchy to common institutions
and the rule of law. To that extent, global
free trade, liberal economics and liberal
politics systems are all encouraged. In
addition, liberal internationalists are
dedicated towards encouraging democracy
to emerge globally.
● Foundation for World Economic Order
○ International economic institutions (the
World Trade Organization, World Bank, and
International Monetary Fund), the economic Criticisms: There is an argument to be made that the model of
principles underlying most free trade dividing nations into first, second, or third worlds represents an
agreements around the world. archaic and antiquated perspective.
○ rules-based international economy is 1. Controversy exists around the use of the term "first
required-one that inspires hope and fear in world'' to describe democratic countries in comparison
equal measure. with developing nations and those with political
● Rise of the Neoliberalism regimes that do not align with Western nations.
○ Neoliberalism is contemporarily used to refer 2. Designation as a first world nation does not
to market-oriented reform policies such as necessarily mean a country has local access to certain
“eliminating price controls, deregulating luxuries or resources that are in demand. For example,
capital markets, lowering trade barriers” and oil production is a staple industry in many countries
reducing, especially through privatization that historically have not been regarded as first world
and austerity, state influence in the economy nations.
○ Neoliberalism is often associated with the
leadership of Margaret Thatcher
(Conservative Party) and Ronald Reagan
(Republican Party).
○ A policy model that encompasses both
politics and economics, and seeks to
transfer the control of economic factors from
the public sector to the private sector.
(privatization)
 Global North and Global South
● In the 1980s, the Brandt Line was developed as a way
of showing how the world was geographically split into
relatively richer and poorer nations.
● According to this model:
○ Richer countries are almost all located in the
northern hemisphere, with the exception of
Australia and New Zealand.
○ Poorer countries are mostly located in
tropical regions and in the Southern
hemisphere.
● The World Economy
Less Developed Countries ○ According to Immanuel Wallerstein’s world
● Developed Countries: countries which are developed systems theory, a global capitalist system
in terms of economy and industrialization. The separates countries into the core (the
developed countries are also known as advanced North), semiperiphery, and periphery (the
countries or the first world countries, as they are South) based primarily on their economic
self-sufficient nations. participation.
● Developing Countries: Countries which are going ○ His theory is largely influenced by Karl Marx,
through the initial levels of industrial development who saw the economy as the foundation
along with low per capita income are known as society that determined all cultural
Developing Countries. These countries come under phenomena.
the category of third world countries. They are also ● World-system refers to the
known as lower developed countries. inter-global and transnational division
of labor, which divides the world into
core countries, semi-periphery
countries, and the periphery countries.
● Core countries focus on
higher-skill, capital-intensive
production, and the rest of the world
focuses (semi-periphery and
periphery) on low-skill, labor-intensive
production and extraction of raw
materials.

Global North represents the economically developed societies

of Europe, North America, Australia, Israel, South Africa,
amongst others, the Global South represents the economically
backward countries of Africa, India, China, Brazil, Mexico
amongst others.
● They are wealthy, technologically advanced, politically
stable and aging as their societies tend towards zero
Human Development Index population growth.
● The HDI was created to emphasize that people and ● Countries that are dominating international trade and
their capabilities should be the ultimate criteria for politics.
assessing the development of a country, not economic Global South represents countries that are agrarian based,
growth alone. dependent economically and politically on the Global North.
● Statistic Composite Index of Life Expectancy, ● Used to identify regions within Latin America, Asia,
Education (mean years of schooling completed and Africa, and Oceania.
expected years of schooling upon entering the
education system), and per capita income indicators,
which is used to rank countries into four tiers of human Regionalization
development. ● Regionalization is the process of transferring power
from the central government to the regions, for a better
application of the subsidiarity principle, within the
framework of national or federal solidarity.
● Regionalization can be defined as intensification of
intra-regional social and economic interactions
● Regionalization is defined as an increase in the
cross-border flow of capital, goods, and people within
a specific geographical area.

Regionalism
● Regionalism is a political ideology that seeks to
increase the political power, influence, and/or
self-determination of the people of one or more
subnational regions.
● Regionalism refers to three distinct elements:
○ a) movements demanding territorial
autonomy within unitary states;
○ b) the organization of the central state on a
regional basis for the delivery of its policies
including regional development policies;
○ c) political decentralization and regional
autonomy.
 CASE STUDY FOR LATIN AMERICA
Globalization vs Regionalization
● Globalization refers to the process of expanding your
business operations onto a global scale. This can
include selling products or services in other countries
or setting up offices or factories in other parts of the
world.
● Globalization is a “process of interaction and
integration among people, companies, and
governments worldwide”. It describes the growing
interdependence of the world’s economies, cultures,
and populations, brought about by cross-border trade
in goods and services, technology, and flows of
investment, people, and information”
● Regionalization is the opposite of globalization – it
refers to the process of dividing your business into
smaller units that operate within specific geographic
regions.
● Regionalization is the process of dividing an area into
smaller segments called regions. It points to the
“decomposition of the world into smaller economic
units and regional integration groupings”

Regionalism
● Types of regionalism include:
○ “economic regionalism,
○ linguistic regionalism,
○ political regionalism and even
○ sub-regional movements”
● In terms of establishing states, the types of
regionalism are supra-state, inter-state and intra-state
regionalism.
● In politics, “regionalism is an ideology that highlights
the local identity, the need for independent regional
planning and administrative freedom. It promotes the
manifestation of cultural singularities and prioritizes the
region’s interest over the interest of the nation as a
whole”

Asian Integration
● In Asia, the largest episode of opening up to trade and
investment occurred unilaterally from the 1980s
through to the 2000s. The story is a familiar one in
East Asia.
● In the 1980s and 1990s, there was a growing
consensus among policymakers involved in integrating
Asia that trade and openness were the key drivers of
development. Consequently, the removal of border
barriers and deeper integration were achieved without
formal or binding external agreements.
● This process is often termed market-driven integration,
as it did not involve RTAs. Competitive unilateral
liberalization in the 1980s and 1990s was followed by
reforms and further liberalization, influenced by
economic crises, regional institutions such as the
Asia–Pacific Economic Cooperation forum (APEC) and
ASEAN, and global commitments through the General
Agreement on Tariffs and Trade (GATT) and WTO
processes
● Economic integration in Asia has progressed over the
last 30 years through the formation of greater trade
and investment linkages, which have been driven by
market-led integration, underpinned by international
commitments
● In Asia, regional economic integration has mainly
focused on trade in goods and services and, to some
extent, investment.
● East Asia experienced higher economic growth and
growth in trade and investment than did other regions,
even when China’s growth is not taken into account.
● East Asia’s supply chains and production
fragmentation deepened trade and economic
integration in Asia and were an engine of global trade
and economic growth
GLOBALIZATION I: The Upside
● Globalization is a cultural phenomenon.
● Reflected in contemporary artwork, population
migration and linguistic changes.
● Trade – economic interdependence
● Trade goes back to as early as the Indus Valley
Civilization in Mesopotamia
1. Multinational corporations have global reach and
increasing power
2. Travel and shipping are cheap and safe
3. Governments have decreased tariffs and
regulation on international trade
→ Led to the term “Free Trade”
→ Cotton production
→ US Gov subsidizes cotton
production
→ While it is produced in USA, it
is processed in other countries
like Mexico, Guatemala, China,
India, etc
→ Blanks are processed in
Europe and the US, in the West.
● Government Regulation diminishes prosperity by
limiting growth.
● Latin American, Caribbean, African Nations are bullied
into free trade by larger economies
● Privatizing state run businesses to appease the IMF,
which offers low interest loans to developing nations.
○ Many Strings Attached
● Manufactured domestically, sold to the world.
● Global Capitalism has been good for a lot of people
(made clear in 2012)
● Migration
1. Air travel is cheap
2. Easy and inexpensive to stay in touch
3. Even with increased industrialization in the
developing world, economic opportunities
are often much better in wealthy countries
→ Remittances – money sent
home by people working abroad
● Globalization = Cultural Blending
● There are fewer languages spoken today, and less
cultural diversity.
● Green Revolution (2nd agricultural revolution in the
50s)

GLOBALIZATION II: Good or Bad

● Globalization lead to the celebration of individualism
○ Individualism also had a destabilizing effect
on families (e.g. spending time playing with
gadgets rather than family interaction)
● The biggest consequence of globalization and the
ensuing rise in the human population has been
humanity's effect on the environment.
○ As worldwide production and consumption
increases, we use more resources,
especially water and fossil fuels.
● Almost no human being alive today lives with stuff only
manufactured in their home country
 ● Key Point/Function 1
● Key Point/Function 2
o Additional/Supporting Statement 1
o Additional/Supporting Statement 2
o Additional/Supporting Statement 3
o Additional/Supporting Statement 4

KEY TERM and its definition

SUB-TOPIC
● Definition and its key words
● PARTS - Definition

*These are NOTES mentioned by the professors during lectures

These are NOTES mentioned by the professors during lectures

These are NOTES mentioned by the professors during lectures

Table

SUPPORTING FACTS/ADDITIONAL INFORMATION

OF THE SUB-TOPIC