I.

INTRODUCTION ABOUT GLOBALIZATION

Globalization
Globalization refers to the outgoing of an international network, belonging to an economic and social
system.

To Eric Beerkens, Globalization refers to all those processes by which the peoples of the world are mix
into a single world society to global society.

Globalization encompasses a multitude of processes that involves economy, political systems, and
culture.

It is the process of world shrinkage of distances getting

shorter of things moving closer.
Globalization refers to the expansion and intensification of social relations across world-time and world-
space.
It is a changing of human society develops and has happened before and still happening today.

Global Economic Organization

Attributes of Globalization
1. Various forms of connectivity
2. Expansion and stretching of social relations
3. Intensification and acceleration of social exchanges and activities
4. Occurs subjectively
Types of Globalization
1. Economic
Countries that trade with many others and have few trade barriers are economically globalized.
2. Social
A measure of how easily information pass between people in their country and different countries
includes access to internet and media networks.
3. Political
The amount of political co-operation there is between countries.

INFORMATION TECHNOLOGY
IT is defined as creation, gathering, processing, storage and delivery of information.
Information technology includes www(worldwide web), telephone, fax, e-communication, internet.
IT Industry is the most widely operated industry in the world.

APPLICATIONS OF INFORMATION TECHNOLOGY

*BUSINESS *EDUCATION *INDUSTRY *IN HOME
*PRODUCT DESIGN *PRODUCT MANUFACTURING
*URBAN STUDIES *FISHING *ENTERTAINMENT
*OCEAN STUDY

ADVANTAGES OF INFORMATION TECHNOLOGY

*MULTIPURPOSE USES
*HELPS GOVERNMENT IN MAINTAINING RECORDS AND EFFICIENT GOVERNANACE.
*PROGRESS IN BUSINESS
*QUICK AND EFFICIENT
*ANYWHERE ANY TIME
DISADVANTAGES OF INFORMATION TECHNOLOGY
*BRAIN DRAIN
*LACK OF SPIRIT OF RESEARCH
*LESS IMPORTANCE OF BOOKS

The Effects of Globalization:

1. Changed Food Supply
Food supply is no longer tied to the seasons.
We can buy food anywhere at any time of the year.

2. Division of Labour
The cheapest locations of assemble components, production may moved from developed to developing
countries where costs are lower.

3. Less Job Security

In the global economy jobs were becoming more temporary and insecure.

4. Damage to the Environment

More trade means more transport which uses more fossil fuels and causes ollution.

5. Cultural Impact
The Websites such as YouTube connect people across the planet.
This create a monoculture as they remove local competition and force local firms to close.
6. Increase in anti-Globalization Protests
There is an awareness of negative impacts of globalization.
Globalization can be challenged by communities by supporting each other in business and through public
protest and political lobbying.

Benefits of Globalization
*Free trade
*Free movement of labor
*Increased economies of scale
*Greater competition
*Increased investment
*Reducing monopoly profits
*Improved Information Technology
IMPACT OF GLOBALIZATION
*Effects on Import – Export policy.
*Effects on Foreign currency.
*New Technology and
*Production methods.
*Advantage to Consumers.
*Small Producers Suffers
*New Jobs
HISTORY OF GLOBALIZATION
Mongol Dynasty (YUAN 1279 1368)
Yuan dynasty established by Genghis Khan.
Trade increased between China and Europe.
Set-up the capital Peking now Beijing.
Link China to Persia, India and build the first highway total of 1,100 miles.

31 December 1600, merchants from Britain incorporated themselves forming the East India Company
were given monopoly on all trade with the East Indies.

Bank of England founded; start of large and stable government bond market.
It is the second oldest central bank in the world.

The Oldest Surviving Banks of the World

Banca Monte dei Paschi di Siena
The world's oldest bank was founded in its present form in 1472.

Berenberg Bank
German bank founded in 1590 continuously with the same legal Identity, the oldest merchant bank.

‘’’’
Barclays
A British Bank founded in 1690
Coutts
A British Bank founded in 1692

Lloyds Bank
A British retail and commercial bank was founded in Birmingham in 1765.

1815 London becomes leading supplier of global Finance.

1830 Liverpool, A 31-mile railway starts a Revolution travel speeds and many lands are opened for
development 640,000 miles of track globally by 1910.

1876 Alexander Graham Bell invents telephone.

First motor cars (Daimler and Benz).

Henry Ford starts car mass-production.
1896 First modern Olympic Games; ideal of uniting peoples of the world through friendly rivalry
(Athens, Greece).

Wright Brothers make first manned airplane flight.

1917 Russian Revolution; a new Soviet Union became independent of global economy and the spread of
communism worldwide.

1944-6 United Nations, World Bank and IMF formed the US dollar supremacy for next 25 years.

Market economy in Russia and Eastern Europe brings Marxism to an end.

Tim Berners-Lee invents World Wide Web (www), leading to global spread of internet use.
2004 the Framework for global agreement on trade was agreed and WTO was formed.

THE ASEAN
East Asia will define its economic and political interests on the region.
China will be at the helm in East Asian community which includes Japan

QUOTES OF GLOBALIZATION
Where globalization means, as it so often does, that the rich and powerful now have new means to further
enrich and empower themselves at the cost of the poorer and weaker, we have a responsibility to protest
in the name of universal freedom.

Nelson Mandela

DIDYOU KNOW?
The Internet started in the 1960s as a way for government researchers to share information.
This eventually led to the formation of the ARPANET (Advanced Research Projects Agency Network),
the network that ultimately evolved into what we now know as the Internet.

Vinton Cerf and Bob Kahn

A computer scientist are credited with inventing the Internet communication protocols we use today and
the system referred to as the Internet.

GLOSSARY

Asean - The Association of Southeast Asian Nations is a regional intergovernmental organization

comprising ten countries in Southeast Asia, which promotes intergovernmental cooperation and
facilitates economics.

Global - pertaining to the whole world; worldwide; universal: the dream of global peace.

Global Economy - is the economy of all humans of the world, referring to the global economic system
that includes all economic activity within nations and between nations.

Globalization - refers to the increasing integration of economies around the world, particularly through
the movement of goods, services, and capital across borders.

Information technology - is the use of computers to store, retrieve, transmit and manipulate data or
information.

REFLECTION

ASSIGNMENT
1. What do you think is the importance of globalization?
2. How does globalization affects our country’s economy?
3. How have you experienced globalization?

Hebrews 11:1 Now faith is the assurance of things hoped for, the conviction of things not seen.
II. THE STRUCTURE OF GLOBALIZATION
Market Integration
Integration shows the relationship of the firm in a market.
Market integration as a process which refers to the expansion of firms by additional marketing functions
and activities under a single management.
Ex. Meat industry buys all the functioning plants needed for running this meat industry

MARKET ARE INTEGRATED IDEALLY HAVE THE FOLLOWING FEATURES

Information travels quickly
Supply and demand in the two markets adjust very quickly due to efficient mobility of goods.
Price adjustment in the two markets also takes place freely and quickly.

TYPES OF MARKET INTEGRATION

Horizontal Integration
This occurs when a firm gains control of other firms performing similar marketing functions at the same
level.
Some marketing agencies combine to form a union with a view to reducing their effective number and
the extend actual competition in the market.
Advantageous for the members who join the group.
Ex. Milk producers, Facebook, Instagram

Vertical Integration
It occurs when a firm performs 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.
A 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.

It reduce the number of middle man in the marketing channel.

Ex. Netflix, Zara, Ikea, Wholesale, Processing, Amazon

Conglomeration Integration
A combination of agencies or activities not directly related to each other.
It operates under a unified management be termed a conglomeration.
Ex. Unilever, Nestle, Adami, Process vegetables

DEGREE OF INTEGRATION
Ownership Integration
This occurs when all the decision and assets of a firm are completely assumed by another firm.
Ex. A processing firm which buys a wholesale firm

Contract Integration
This involves an agreement between two firms on certain decisions while each firm retains it separate
identity.
Ex. An employer and employee may often choose to work according to an employment contract.
Agreements for the sale of products may require much negotiation in terms of pricing, delivery, and other
important aspects of the sale.

EFFECTS OF INTEGRATION
Integration is an attempt at organizing or coordinating the marketing processes to increase operational
efficiency and acquire greater power over the selling or buying process.
Middle men are reduced and followed by them.
Price also will not increase further if market is well integrated.
Gaining a larger share of market and higher profit.
Lowering the cost through achieving operational efficiency.

The Rise of Global Corporation

Global corporations are inseparable to globalization.

Types of Global Corporation

International companies
Are importers and exporters, typically without investment
outside of their home country.
Multinational companies
The investment in other countries, but do not have product offerings in each country.

They’re more focused on adapting their products and services to

each individual local market.

Global companies
Invested in and are present in many countries.
They market their products and services to each individual local market.

Transnational Corporation
An enterprise that engages in activities which add value in more than one country (UNCTC).

BRICS Economies
Brazil, India, China, and South Africa
The most dynamic sector of global corporate growth.
A foreign direct investment is in a controlling ownership in a business in one country by an entity based
in another country.

BRICS economies represent a primary force in both global production and consumption.
Unaffected by the US and European Markets in 2007.

General Agreements on Tariffs and Trade (GATT)

It was establish in 1947 and was a forum for the meeting of representatives from 23 member countries.
It focuses on trade goods through multinational trade agreements.

World Trade Organization (WTO) 1993

Located in Switzerland with 152 member states as of 2008.
It is an independent multinational organization responsible for trade and services, non-tariff barriers.

Organization of Petroleum Exporting Countries (OPEC)

1960 OPEC was comprised of Saudi Arabia, Iraq, Kuwait, Iran and Venezuela.
OPEC was formed, the member countries increase the price of oil in the pass had a relatively low price
and had failed in keeping up the inflation.
United Arab Emirates, Algeria, Libya, Qatar, Nigeria and Indonesia are today’s member.

North American Free Trade Agreement (NAFTA)

NAFTA is a free trade pact between the United States, Mexico, and Canada created on January 1, 1994.

Capitalism and Socialism

Capitalism is a system in which all natural resources and means of production are privately owned.
It emphasizes profit maximation and competition as the main drivers of efficiency.

Socialism
The property is owned by the government and allocated to all citizens, not only those with money to
afford it.
Socialism emphasizes collective goals expecting everyone to work for the common value on everyone’s
basic needs than on individual profit.

Communism
It is a political and economic system in which all members of a society are socially equal.

Political Ideologies and Global Imaginary

Ideology
A system of widely shared ideas, patterned beliefs, guiding norms and values, and ideals accepted as
truth by some groups.
Serves as guide and compass for social and political action.
th
First coined by Antoine Destutt de Tracy in the late 18 century. Functional Level of ideology

Newly Industrializing Countries (NIC’s)

7 NIC’s including China, South Korea, Mexico, Brazil, India, Indonesia & Thailand in order.

China
2nd largest exporter of manufactured goods
th th
Brazil & India rank 9 & 10 .

Asian NIC’s manufacturing growth is highest

Asian “Tigers”
Largest gains in manufacturing growth:
South Korea, Hong Kong – separate political entity from China, Taiwan, Singapore, Malaysia, Thailand
All have access to Ocean Port shipping for Export

Geographies of Office Employment

Decentralization
Back-office functions means rote jobs with job security.
Outsourcing Temporary workers with no rights.
Clusters of specialized Offices
Offshore financial centers

Future Geographies
*Availability of resources
*Expansion of world economy
*Globalization of industry
Transportation technologies
*High-speed rail systems
*Smart roads
*Smart cars

Reasons for market integration

*To remove transaction costs
*Foster competition
*Provide better signals for optimal generation and consumption decisions.
*Improve security of supply

B. GLOBAL GOVERNANCE
One World
A nearly 8 billion souls living on this hurtling through empty space.
Many peoples with different ethnicities, languages, beliefs, religions, traditions, resources, capacities,
knowledge and desires.

A long history of conflicts but we have nevertheless created a global civilization based on ever more
sophisticated ways of cooperating amongst ourselves.

GOVERNANCE
The governance challenge requires a quantum leap in our ingenuity
and our commitment to one another.

Social Problems
An inability to maintain security and privacy.
Unsustainable healthcare costs.
Declining infrastructure quality.
Automation & growing unemployment.
An increasing lack of government transparency.

Problems of Democracy
Declining public confidence in governments & their leaders.
Institutions are believed to be incompetent, unethical or corrupt.
A decline in the quality of public debate
Elected representatives & increasingly centralized decision-making.

International agreements
Are treaties signed by a number of states that establish global rules of conduct.
States that break these rules are called rogue states (North Korea, Iran, Iraq, and Syria)

International law
The collection of rules and regulations that define the rights and obligations of states.

Problems of Governance
Governments no longer have all the knowledge, resources or power to achieve their goals.
Governments lack collaborative cultures to solve problems.
Governments lack the practical abilities to work with others b/c they lack the mechanisms to meet the
challenges of cooperation.

A Way Forward
You never change things by fighting the existing reality.
To change something, build a new model that makes the existing model obsolete.

New Model of Governance

Governance is based on the shared ownership of all citizens in both problems and solutions.
Governance activities utilize the knowledge and practices of collaboration and domination.
Rather than representative democracy, governance is based on direct citizen involvement and
collaboration.
The practices of global governance are facilitated by an independent, internet enabled platform for
citizens and resolve issues on their own in open partnerships with others.
DID YOU KNOW?
Coca-Cola was originated in 1886 by an Atlanta pharmacist, John S. Pemberton originally his
drink as a tonic for most common ailments, basing it on cocaine from the coca leaf and caffeine-rich
extracts of the kola nut; the cocaine was removed from Coca-Cola's formula in about 1903.

The League of Nations

Was a international organization founded after the Paris Peace Conference, 1919.
The League's goals included disarmament, preventing war, settling disputes between countries through
diplomacy and improving global welfare.
The four permanent members were Great Britain, France, Italy, and Japan.

QUOTES OF GLOBALIZATION
It has been said that arguing against globalization is like arguing against the laws of gravity.
Kofi Annan
GLOSSARY

BRICS - is the acronym coined to associate five major emerging national economies: Brazil, Russia,
India, China, and South Africa.

Global Company - is coined from the base term global, which means all around the world. .

International - involving two or more nations: international trade. of or relating to two or more nations
or their citizens.
Multinational Corporation - is usually a large corporation incorporated in one country which produces
or sells goods or services in various countries.

Transnational Corporation - is any enterprise that undertakes foreign direct investment, owns or
controls income-gathering assets in more than one country, produces goods or services outside its country
of origin.

REFLECTION

ASSIGNMENT

1. State Market Integration and give an example of Market Integration?

2. Does governance affects the economy of the country? Justify your answer
3. Sketch a structure of Globalization.
4. Distinguish Market Integration to globalization.
5. Compare the different between Socialism and Communism.

Deuteronomy 31:6
Do not fear or be in dread of them, for it is the Lord your God who goes with you. He will not leave you
or forsake you."
III. WORLD REGIONS
Governments, associations, societies and groups form regional organizations and/or network as a way of
coping with the challenges of globalization.
Regionalism
It is in relation to identities, ethics, religion, ecological sustainability and health.

Political Economy
The interaction between public authority institutions & governance and the economy and markets.

REGION
A group of countries located in the same geographically specified area or are an amalgamation of two
regions or combination of more than two regions.
To regulate and oversee flows and policy choices.
It is constructed by policymakers, economic actors and even social movements.

Regionalization
Refers to regional concentration of economic flows.
It is often an undirected process of social and economic interaction.

Types of Regionalism
State regionalism
States
Non-state regionalism
Non-governmental organizations which dedicate themselves to specialized causes.

Challenges to Regionalism
Resurgence of militant nationalism and populism.
Ex. NATO, Vladimir Putin & Donald Trump
Differing visions of what regionalism should be for Western views regionalism as an instrument of
democratization.
Non-western views democratization as an obstacle to economic globalization (China, Singapore, and
Russia).

REASONS OF FORMING REGIONAL ASSOCIATIONS

1. Military Defense North Atlantic Treaty Organization (NATO)
Formed during the Cold War when several Western European countries plus the United states agreed to
protect Europe against the threat of the Soviet Union.

2. Pool their resources, get better return for their exports and expand their leverage against trading
partners.
3. Protect their independence from the pressure of superpower politics.
WARSAW PACT
A regional alliance created by Soviet Union.
Soviet Union imploded in December 1991 but NATO remains in place.

Organization of the Petroleum Exporting Countries (OPEC)

It was established in 1960 by Iran, Kuwait, Saudi Arabia and Venezuela.
It aims to regulate the production and sale of oil.
OPEC’s success convinced 9 other oil-producing countries to join.

Non-Aligned Movement (NAM)

Created by Egypt, Ghana, India, Indonesia and Yugoslavia in 1961 to pursue world peace and
International cooperation, human rights, national sovereignty, racial and national equality, non
Intervention and peaceful conflict resolution.
The association refused to side with either first world countries capitalist democracies in Western Europe
and North America or communist states in Easter Europe.

ASEAN
*Indonesia (1967)
*Malaysia
*Philippines
*Singapore
*Thailand
*Brunei (1984)
*Vietnam (1995)
*Laos (1997)
*Myanmar (1997)
*Cambodia (1999)
ASEAN
Ex. The West Philippine Sea Crisis
EU crisis
Ex. Brexit( UK) to gain economic flexibility, anti-immigrant and anti-populist campaign.

Comparative Advantage of Regionalism

*Link state and non-state actors at various levels over time.
*Provide frameworks for multi-country cooperation
*Ensure national political commitment and buy-in
*Larger and more competitive markets

Asian Regionalism
East Asia will likely be the next region to define its economic and political interests on a transnational
basis.
*To promote social progress and better standards of life
*To practice tolerance and to live together in peace with one another.
*To unite our strength to maintain international peace and security.
*To insure that armed forces shall not be used save in the common interest.
*To employ an international machinery for the economy

China's Vision for the World:

China’s vision is based on three pillars:
*Cooperative security
*Common development
*Political inclusiveness China’s rise a global power would constitute indeed a Chinese threat to the
world.
Regionalism
A state-led or states-led project designed to reorganize a particular regional space along defined
economic and political lines.
Regionalism covers both regional integration and
regional cooperation aspects.

Political process characterized by economic policy cooperation and coordination among countries.

DID YOU KNOW?

ASEAN was established on 8 August 1967 in Bangkok by the five original member countries: Indonesia,
Malaysia, Philippines, Singapore, and Thailand.
The purpose is to accelerate economic growth, social progress and cultural development and to promote
peace and stability in the region.

QUOTES ON REGIONALISM
Asean is obviously a very important association for us. Over the past 30 years Asean has made great
strides in regional cooperation covering a number of areas, although recently it has been under strain
because of the financial crisis and other challenges.
Hassanal Bolkiah
GLOSSARY

NATO – Stands for the North Atlantic Treaty Organization, also called the North Atlantic Alliance, is an
intergovernmental military alliance between 30 European and North American countries.

Region - are areas that are broadly divided by physical characteristics, human impact characteristics, and
the interaction of humanity and the environment

Regionalism - is a political ideology focusing on the "development of a political or social system based
on one or more" regions.

WARSAW PACT - Warsaw Treaty Organization, officially the Treaty of Friendship, Cooperation and
Mutual Assistance.

REFLECTION

ASSIGNMENT

1. Describe Asean Regionalism that contributes to the peace and prosperity of the world.
2. Examine the purpose of the Asean Regionalism.
3. Identify the importance of Regionalism in globalization.

John 10:27
My sheep hear my voice, and I know them, and they follow Me.