Lesson: 1 What is globalization Steger (2009) further defines globalization as

the expansion and intensification of social

Giddens (1990) points out that globalization is relations and consciousness across world-time
the intensification of worldwide social relations and world space. He explained that
which link distant localities in such a way that globalization has several dimensions:
local happenings are shaped by events
occurring many miles and away. In a conference ECONOMIC: ‘The economic dimension of
in 2000, Giddens explained, “globalization is not globalization’ explores how the way people
a single set of processes and does not lead into have undertaken economic production has
a single direction. Wallerstein (1998) believes changed.
that globalization is a reflection of the triumph
of a capitalist world economy bonded by a POLITICAL: The political dimension of
global division of labour. Khor (1995) in globalization’ looks at political arrangements
discussing the world politics expressed that beyond the nation-state.
globalization has long been experienced by the
CULTURAL: The cultural dimension of
Third World called colonization.
globalization’ explores the intensification and
For Mcgrew (1990) globalization is composed of expansion of cultural flows across the globe.
multiple sameness and interconnectedness that
ECOLOGICAL: ‘The ecological dimension of
go beyond nation states where individuals and
globalization’ examines the effects of global
organizations in one part of the world is
alliances on ecological issues.
affected by the activities, affairs, and
convictions. Furthermore Cox (1999) provides the
characteristics of globalization trend:
• MARKET GLOBALISM - advocates promise a
internationalizing of production globalizing of
consumerist, neoliberal, free-market world.
finance and securities trading changing
• JUSTICE GLOBALISM - envisages a global civil international division of labor vast migratory
society with fairer relationships and movements from South to North competitive
environmental safeguards. environment that accelerates these processes.
internationalizing of the state making states
• RELIGIOUS GLOBALISM - strives for a global into agencies of the globalizing world.
religious community with superiority over
secular structures.

Lesson: 2 The GLOBAL ECONOMY economic globalization refers to the increasing

interdependence of world economies as a result
The GLOBAL ECONOMY alludes to different of the growing scale of cross-border trade of
financial exercises among various nations with commodities and services, flow of international
either negative or beneficial outcomes. The idea capital and wide and rapid spread of
of a world no interrelations are noteworthy technologies.
pointers of the worldwide economy.

ECONOMY GLOBALIZATION
INTERNATIONAL TRADE
The International Monetary Fund (IMF) regards
“economic globalization’ as a historical process The conclusion of World War ll signaled the
representing the result of human innovation beginning of trade facilitation around the globe.
and technological progress. According to the Economies set rules and guidelines for
United Nations (as cited by Shangquan, 2000), international trade which led to the formation
of General Agreement on Tariffs and Trade trade products separately. The advantage of
(GATT). this theory in international trade is deriving
from the principle of specialization and division
International trade(IT) is the process and of labor (Nau, 2009). Countries have different
system when goods, commodities, services resources and talents; they are better in
cross national economy, and boundaries in performing in that economic activity than other
exchang for money or goods of another country economic activities.
(Balaam and Veseth, 2008).
MERCANTILISM
TRADE THEORY
An economic theory emerged from about 1500-
There are two types of trade theories explaining 1800. This period was the emerging eras of
international trade. nations-states and the formation of more
central governments. This system flourished
Descriptive Theory - It deals with the natural
due to the following reasons:
order and movement of trade. it describes the
pattern of trade under the idea of laissez faire, a • Higher export than import.
French term which means "leave alone".
•Export less high valued product and import
Prescriptive Theory - This prescribes whether less high valued product
government, an important economic institution,
should interfere and restrict with the •The benefits of colonial powers.
movement of goods and services.
STRUCTURALISTS
Three Perspectives on International Trade
The earliest wave of mercantilism was
ECONOMIC LIBERALS described as classical imperialism. The Modern
World System (MWS) theory deveIoped by
David Ricardo and Adam Smith were known Immanuel Wallerstein, explains the contact of
critics of late-eighteenth century on the abuses economies between core, semi peripheral, and
of mercantilism in England. Their liberal ideas peripheral countries in the world. Thus, the
and contribution in understanding global trade economic globalization and market integration
are still relevant until today. For Ricardo, his of the 21st century are extensions of the same
influential work Law of Comparative Advantage economic motives of imperial powers of the
explains that free trade efficiency is attainable if nineteenth and twentieth centuries (Balaam
two countries can produce more goods and and Veseth, 2008).

Lesson: 3 MARKET INTEGRATION INTERNATIONAL FINANCIAL INSTITUTIONS

Much of globalization is anchored on the role An international financial institution (IFI) is a

global economy plays in the different nations. financial institution that has been established
We often think of economy as something that (or chartered) by more than one country, and
covers a wide variety of financial aspects like hence are subjects of international law.
employment, Gross Domestic Product (GDP) or
the stability of stock markets. However, we THE BRETTON WOODS SYSTEM
must understand that the economy is
The major economies in the world had suffered
composed of people.
because of World War I, the Great Depression
in the 1930, and World War II. Because of the
fear of the recurrence of lack of cooperation related barriers to trade, and other broader
among nation-states, political instability, and areas of trade liberalization, an example cited
economic turmoil (especially after the Second by Ritzer (2015) was that of the “differences
World War), reduction of barriers to trade and between nations in relation to regulations on
free flow of money among nations became the items as manufactured goods or food.
focus to restructure the world economy and
ensure global financial stability (Ritzer, 2015). THE INTERNATIONAL MONETARY FUND (IMF)
AND THE WORLD BANK
Bretton Woods system has three key
elements. First element is the IMF and the World Bank were founded after the
World War II. Their establishment was mainly
1. expression of currency in terms of gold or because of peace advocacy after the war. These
gold value to establish a par value (Boughton, institutions aimed to help the economic stability
2007). of the world. Both of them are basically banks,
but instead of being started by individuals like
2. “the official monetary authority in each regular banks, they were started by countries.
country (a central bank or its equivalent) would
agree to exchange its own currency for those of THE ORGANIZATION FOR ECONOMIC
other countries at the established exchange COOPERATION AND DEVELOPMENT (OECD),
rates, plus or minus a one-percent margin" THE ORGANIZATION OF PETROLEUM
(Boughton, 2007, pp. 106-107). EXPORTING COUNTRIES (OPEC), AND THE
EUROPEAN UNION (EU)
3. element of the Bretton Woods system is the
establishment of an overseer for these - The most encompassing club of the richest
exchange rates; thus, the International countries in the world is the Organization for
Monetary Fund (IMF) was founded. Economic Cooperation and Development
(OECD) with 35 member states as of 2016, with
THE GENERAL AGREEMENTS ON TARIFFS AND Latvia as its latest member.
TRADE (GATT) AND THE WORLD TRADE
ORGANIZATION (WTO) In 1960, the Organization of Petroleum
Exporting Countries (OPEC) was originally
- According to Feet (2003), global trade and comprised of Saudi Arabia, lraq, Kuwait, Iran,
finance was greatly affected by the Bretton and Venezuela. OPEC was formed because
member countries wanted to increase the price
Woods system. One of the systems born out of
of oil, which in the past had a relatively low
Bretton Woods was the General Agreement on
price and had failed in keeping up with inflation.
Tariffs and Trade (GATT) that was established in
Today, the United Arab Emirates, Algeria, Libya,
1947 [Goldstein et al., 2007). GATT was a forum
Qatar, Nigeria, and Indonesia are also included
for the meeting of representatives from 23
as members.The European Union (EU) is made
member countries. It focused on trade goods
up of 28 member states. Most members in the
through multinational trade agreements
Eurozone adopted the euro as basic currency
conducted in many rounds of negotiation. The
but some Western European nations like the
Uruguay Round (1986-1993) that an agreement
Great Britain, Sweden, and Denmark did not.
was reached to create the World Trade
Organization (WTO)” (Ritzer, 2015).The WTO NORTH AMERICAN FREE TRADE AGREEMENTS
headquarters is located in Geneva, Switzerland (NAFTA)
with 152 member states as of 2008 (Trachtman,
2007). Unlike GATT, WTO is an independent The North American Free Trade Agreement
multilateral organization that became (NAFTA) is a trade pact between the United
responsible for trade in services, non-tarriff-
States, Mexico, and Canada created on January partners. NAFTA helps in developing and
1, 1994 when Mexico joined the two other expanding world trade by broadening
nations. It was first created in 1989 with only international cooperation.
Canada and the United States as trading

Lesson 4: THE GLOBAL INTERSTATE SYSTEM •The fourth effect is the rise of transnational
activism (TNA). Such happens when activist
-The world is composed of many states having groups of nation-states connect with their
different forms of government. It has been one counterparts in other states.
of the major subjects of scholars of political
disciplines because it is viewed as the institution INSTITUTIONS THAT GOVERN INTERNATIONAL
that sets policies for the country. RELATIONS

THE INTERSTATE SYSTEM -There are several international organizations

that governments of countries around the
-The origins of the present-day concept of world and individuals participate in. In order to
Sovereignty can be traced back to the Treaty of facilitate connections among nation-states,
Westphalia, which was a set of agreements intergovernmental organizations (IGOs) were
signed in 1648 to end the thirty years’ war established.
between the major continental powers of
Europe. •Peace Treaties and Military Alliances: The UN
and NATO
EFFECTS OF of GLOBALIZATION TO
GOVERNMENT -Global politics entails relationship of countries
and different governments and
-One of the key aspects of state sovereignty is nongovernmental organizations, The United
the government. It is a group of people who Nations (UN) is one of the leading political
have the ultimate authority to act on behalf of a organizations in the world where nation-states
state. meet and deliberate.
Globalization has, in a way reshaped the role •It is made up of close to 200 countries from
and functions of nation-states as governing around the world, 193 member states to be
bodies in their particular territories. exact. (United Nations, 2011).
•First, globalization is seen to impose a forced • Global Economic Associations: The WTO and
choice upon nation-states. NAFT A
•Second is the establishment of economic and -The next group is an economic association-
political integrations. One good example is the WTO which was created with the goal of
European Union (EU) and the North America increasing free trade. Countries, therefore, can
Free Trade Agreement (NAFTA). buy and sell goods from one another without
placing takes on imports or tariffs. In addition,
•The third effect of globalization is the
tariffs are used to protect businesses and
establishment of international laws and
companies inside their country. Another famous
principles. This is observable in the
economic organization is NAFTA. This is an
establishment of the UN that operates as a
economic treaty between the United States,
forum for nation-states to air their differences
Canada, and Mexico in which the three
and try to resolve them.
countries trade freely without taxing each
other. NAFTA is not without critics either. Some • European Union (EU)
American autoworkers protested against NAFTA
as several car companies moved their factories An IGO with 28- state members was established
to Mexico in search for cheaper labor. NAFTA, in 1993. Its goals are to promote peace, its
like WTO, represents the challenge in America values, and well-being of its citizens; offer
of keeping manufacturing factories. freedom, security and justice without internal
borders; uphold sustainable development;
•Association of Southeast Asian Nations combat social exclusion and discrimination;
(ASEAN) promote scientific and technological progress;
enhance economic; social and territorial
-Established in 1967, now has 10 member cohesion among member countries; respect
states. Its aims are to accelerate economic cultural and linguistic diversity; and establish an
economic and monetary union.
growth, social progress and cultural
development in the region; promote regional • Non-Governmental Organizations (NGOs)
progression; advance peace and sustainability;
promote active and beneficial cooperation and -Another example of an international
mutual assistance on matters of common organization that was developed out of war is
interest in the economic, technical, cultural, the Red Cross (Red Crescent in Muslim
administrative and scientific fields. countries). NGOs are not tied to any country.

Lesson 5: CONTEMPORARY GLOBAL among the established global systems, this

GOVERNANCE section discusses its organs, roles and functions.

-The world has no global government and global The six organs of the United Nations (UN)
authority. There are however, political and
economic bodies operating worldwide that not √General Assembly is the central deliberative
all people are aware of. Thus, what the world and the only organ where all memberstates
has is the idea of global governance. This term have equal representation in discussion and
refers to domestic institutions and governments consideration, and policymaking.
on how large-scale problems and public-policy
√Security Council is the organ which has the
issues are being solved at a global level.
commitment to preserve peace and security.
global governance makes world affairs
√Economic and Social Council is the main organ
systematic, secured and prescribed. Weiss &
for cooperation, policy reviews, policy dialogue,
Thakur (2014) describe global governance as
and advice on social, economic and
the totality of norms, laws, policies, and bodies
environmental issues.
that define, comprise, and facilitate
transnational relations between citizens, states, √Trusteeship Council is the organ tasked to
cultures, intergovernmental and non- administer international oversight for 11 trust
governmental organizations. Rules and norms territories and to make sure that adequate
put everything in order. Though global procedures are taken for independence and
governance is rule-based, it has no central self-government.
authority. However, there are systems for
international relationships that bind the states, √International Court of Justice is UN’s prime
people and society together. Since the United judicial organ.
Nations (UN) has the most number of members
√Secretariat is the organ tasked to execute the The Millennium Development Goals was set to
daily activities as assigned by the other organs. promote sustainable development. In 2015, this
was changed into the Sustainable Development
Goals (SDGs). These goals are the blueprint to
achieve a better and more sustainable future
Aside from maintaining international peace and
for all. This collection of 17 global goals covers
security and protecting human rights, UN also
social and economic issues including poverty,
carries the functions of delivering humanitarian
hunger, health, education, global warming,
aid, promoting sustainable development, and
gender equality, water sanitation, energy
upholding international law. The organization
urbanization, environment and social
utilizes good offices, diplomacy, and mediation.
justice.Weiss and Thakur (2014), in their article
It does peacekeeping processes in countries
titles, The United Nations Meets the Twenty-
with domestic conflicts and peace-building tasks
first Century: Confronting the Challenges of
in countries freed from conflict, lessening the
Global Governance, identify challenges
risk of reversing into conflict and setting the
confronting UN based on knowledge, norms,
ground work for sustainable peace and
policy, institutions and compliance:
development.

Lesson 6: THE GLOBAL DIVIDES: THE NORTH of a weapon by which millions of people can be
AND SOUTH wiped out in a few seconds.” (Britanica
Encyclopedia).
Prior to the division of world as Global North
and Global South, it was divided into three The Global North are developed European,
world country (Gorman, 2003): North American, Australian societies. It also
include South Africa and Israel (Odeh, 2010).
• The “First World” are countries which are Among the characteristics of countries
aligned with the United States adhering to belonging to the global north are:
capitalism as their economic and political
system. • established democracy

• The “Second World” are countries aligned • wealth

with the now-defunct Soviet Union adhering to
the principles of communism • technological advancement

• The “Third World” of non-aligned (and • political stability

generally poor) nations. People use the term
• aging population
“third world” to refer to poor nations in
general, but many people are not certain of its • zero population growth
origin.
• dominance of world trade and politics
Cold War is the term used to describe the
rivalry between the United States and the On the contrary, the global South are societies
Soviet Union and their respective allies after with agrarian economies like Africa, India,
World War II. The Cold war centered on major China, Latin America and others which do not
political and economic propaganda and not have stable economy and politics compared to
necessarily on recourse to weapons. It was the global North. These countries experience
George Owell, an English writer who first used turmoil, war, conflict, poverty, anarchy and
this term in 1945 to refer to what he predicted tyranny (Odeh, 2010).
would be a nuclear stalemate between “two or
three monstrous super-states, each possessed
-The Global north is most often associated with other hand, third world countries are now
first world countries where powerful countries termed as the Global South.
like the Group of Eight (G8)–Germany, Canada,
France, Italy, United Kingdom, Russia, Japan and -The Brandt line as shown below was proposed
the United States of America is located. On the by Willy Brandt in 1980. It is an imaginary line
dividing the world into two regions based on
their GDP per capita.

tradition in favor of new ways of thinking and

doing things, and to adopt a future orientation
Lesson 7: UNDERSTANDING GLOBAL rather than one focused on maintaining present
STRATIFICATION conditions (Barkens, 2011). Such thought has
There are several perspectives that explains been introduced by McClelland (1961) who
why global inequality and global stratification believed that the value attached to and the
exists. Three theories-- are motivation for achievement are important in
understanding why societies have achieved
(1) Modernization Theory,(2) Dependency
development. For him child rearing practices
Theory and (3) World System Theory—offer
and early socialization of individuals have
doffer different explanation why nations are
impact on the cultural traits of a society.
either poor or rich. Each theory has different
Barkens (2011) further explained that the
arguments in making us understand the
theory has similarities with the culture of
unequal distribution of world’s resources.
poverty theory which states that countries have
Focus Points/Highlights remained poor because they have failed to
develop attitudes, values beliefs which are
Countries around the world are hierarchically essential to economic success since the
arranged based on their resources, beginning of industrialization in the 19th
century to present times.

status and power. These arrangement of DEPENDENCY THEORY

nations on a global scale is called Global
Stratification. Conversely, global inequality is Dependency theory explains underdevelopment
the unequal distribution of resources, status of poor nations in relation to their dependency
and power. It is the result of stratification. on rich countries. Prebish (as cited by Ferrero,
2008) is an Argentine economist who observed
There are several viewpoints why global that economic growth in the developed
stratification exists. Among the theories countries did not result to growth in the poorer
explaining global stratification are (1) country but led to serious economic problems
Modernization Theory, (2) Dependency Theory of poor nations.The conditions of poor nations
and (3) World System Theory. is attributed to the colonization of developed
and rich countries which exploited the
MODERNIZATION THEORY resources of these countries and used them for
cheap labor. These “colonizers” after exploiting
The development of wealthy nations is
the resources will sell their products to their
attributed to the “correct” beliefs, values,
“colonized” countries. Further, rich and
powerful countries compel their colonized
and practices of its people. These cultural traits nations to borrow enormous debt from them
include a willingness to work hard, to abandon which are still being paid up to present times.
The exploitation of wealthy nations hindered On the other hand, semiperipheral countries
poor countries to develop on their own. are less developed compared to the core
countries. Taiwan, South Korea, India, some
WORLD SYSTEM THEORY countries in South America are examples of this.
From the point of view of the world system Haiti, Cape Verde and Honduras are countries
theory, countries are divided into either core, with very little industrialization. They are
semi-peripheral, and peripheral countries based examples of peripheral nation which are
on their position and relationship in the global dependent on core countries for capital. As an
economy. The core countries like the United example of global stratification and global
States, Japan, Australia, Germany characterized inequality read the case.
by high level of industrialization and capitalism.