LESSON 1

THE STUDY OF GLOBALIZATION

COURSE LEARNING OBJECTIVES: By the end of the lesson, the students should be able to:
1. define globalization;
2. cite the importance and reasons for understanding globalization in today’s contemporary
world;
3. trace the historical development of globalization;
4. characterize the phases of globalization;
5. cite the positive and negative effects of globalization; and
6. explain the various sectors of globalization
MOTIVATION: 1-minute talk
The teacher calls a student who has experienced any of the following and asks them to
relate their experience in class.
a. use of social media
b. consuming/using imported goods
c. sipping coffee at Star Bucks
d. watching foreign movies
e. traveling abroad
INTRODUCTION

The contemporary world, which is the world we live in today, is marked by globalization.
Today, societies have become increasingly interdependent and have more social, economic,
political, and cultural relationships. Such an increasing interdependence can be attributed to
globalization. Consequently, the problems and issues that characterize the contemporary world
are now interconnected and multidimensional. Now, the various actors—states, organizations,
and citizens—are exhorted to work together to find global solutions.

DISCUSSION

What is globalization?

Globalization is from the term “globalize, "which means “emergence of an international

network of economic systems.” It is a word used to denote the increasing 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. Countries have built
economic partnerships to facilitate these movements for many centuries.
Globalization is spreading ideas, knowledge, information, goods, and services
worldwide. In business, the term is used in an economic context to describe integrated
economies marked by free trade, the free flow of capital among countries, and easy access to
foreign resources, including labor markets, to maximize returns and benefit the common good.
 Globalization describes how trade and technology have made countries more connected
and interdependent. It also captures the social and economic changes that have resulted. The
concept of globalization can be compared to the strands of a massive spider web that have
grown in number and reach over millennia. In the modern day, things have migrated faster than
ever before, including people, ideas, money, material items, and even diseases.
Some scholars questioned the exclusive focus on the economic side of globalization,
arguing that its effects extend beyond the social fabric of communities, while others
concentrated more on economic and financial integration (Kozul-Wright, 2005). Pieterse (2019)
draws attention to the cultural dynamics at play in the globalization process.

Globalization also generally refers to narrowing national differences and cross-border

barriers in economic, political, social, cultural, and other national characteristics. McGrew (1992)
describes globalization as comprised of multiple sameness and interconnectedness that go
beyond the nation-states. It is a process in which individuals and organizations in one part of the
world are affected by the activities, affairs, and convictions of another part of the globe. Cerny
(1997) defines it as a cluster of economic and political frameworks and procedures deriving from
the changing marks of the interests and assets that comprise the foundation of international
politics, specifically, the expanding structural differences of those interests and assets.
Albrow and King (1992) described globalization as the process by which people from
different places are incorporated into a single world society. Robertson (1992), as cited by Ariola
(2018), described globalization as the compression of the world and the intensification of its
consciousness. According to Stregger, globalization expands and intensifies social relations and
consciousness across time and space.
According to Brazalote et al. (2019), globalization is a phenomenon that is difficult to
understand. The term is often distinguished more by what it is not rather than by what it is.
Reich (1998) opines that it has an obscure meaning. Rosenau (1996) underscores that
globalization is not globalism nor universalism.
Other definitions of globalization, as cited by Ariola (2018), include the following:
1. Globalization is the increasing interaction of people, states, or countries through the
growth of the international flow of money, ideas, and culture. Thus, globalization
primarily focuses on the economic integration process, which has social and cultural
aspects.
2. It is the free movement of goods, services, and people across the world in an
integrated manner.
3. the liberalization of countries welcoming foreign investment supports their economy.
Castell (2000) identified several factors that drive globalization. One of these factors is
the reduction of trade barrier.. Richer nations united to lower import taxes or tariffs under the
General Agreement on Tariffs and Trade (GATT), which was later renamed the World Trade
Organization (WTO) in 1994. Another major factor driving globalization, according to Husain
(2011), is the advancements in modern technology that enable faster connection and access to
data or information.
Globalization is driven by a number of causes, according to Castell (2000). The lowering
of trade barriers is one of these elements. Richer nations united under the General Agreement
on Tariffs and Trade (GATT) to lower import duties or tariffs; the GATT was eventually renamed
the World Trade Organization (WTO) in 1994. Husain (2011) emphasized that another important
factor contributing to globalization is the advancements in modern technology that enable faster
connection and access to data or information.

Stiglitz &Pike (2004) averred that there are diverging views about globalization. One
view is the positive economic impact of globalization while the other highlights the negative
consequences of globalization as reflected in the widening economic gap between the rich and
the poor countries. While it is true that globalization and economic growth have led to poverty
reduction, it does not benefit all nations. Beck (2018) posits that globalization has multiple
dimensions, including economic, political, cultural, and ecological aspects.
When did globalization begin?
One of the best-known examples of early product, custom, and idea exchange is
undoubtedly the Silk Road, a historic network of commercial routes that spanned China, Central
Asia, and the Mediterranean between 50 BCE and 250 CEE. The Silk Road links China with the
West. It was a primary conduit for trade between the Roman Empire and later between
medieval European kingdoms and China. Chinese merchants exported silk to Western buyers.
Wools, gold, and silver traveled eastward from Rome and later from Christian Kingdoms. The
Silk Road trade relied heavily on new technologies, much like other globalization booms. Coins
were made possible by developments in metallurgy and transportation, which also allowed for
the construction of roads linking the great empires of the time and the movement of more food
between locations due to increasing agricultural productivity. Trade also contributed to
disseminating concepts like Buddhist doctrines and papermaking techniques, in addition to
Roman glass, Chinese silk, and Arabian spices.
Undoubtedly, during the Age of Exploration, when European explorers discovered new
maritime routes to Asia and ended up in the Americas instead, these exchanges were
intensified. Once again, the marine trade routes that flourished between previously
undiscovered and newly found continents were greatly influenced by technology. Christian
missionaries were once transported between the Old and New Worlds on ships carrying plants,
animals, and Spanish silver.
During the Age of Revolution, when concepts of liberty, equality, and fraternity spread
like wildfire from America to France to Latin America and beyond, the thread of globalization
kept spinning. Powered by the inventions of factories, steamboats, cars, railways, and planes,
globalization rode the waves of industrialization, colonization, and war through the eighteenth,
nineteenth, and twentieth centuries.

Modern communications satellites allowed Americans to watch the 1964 Summer

Olympics in Tokyo for the first time, ushering in a new global era marked by technological
advancements in computers and communications. Someone in Germany may now read about
breaking news in Bolivia in real time thanks to the Internet and the World Wide Web. Traveling
from Boston, Massachusetts, to London, England, could be possible in hours rather than the
week or more it would have taken a hundred years ago. This digital revolution massively
affected economies across the world as well. They became more information-based and more
interdependent. In the modern era, economic success or failure at one focal point of the global
web can be felt in every major world economy.
Extent of Globalization
According to Altman et al., as referenced by Botor (2020), one of the most recent
measures of global connections is the Global Connectedness Index (GCI), which measures a
nation's flows and linkages to other global players through exchanges of people, capital, trade,
and information. GCI 2018 indicates that in 2017, the world’s level of connectedness was at its
peak relative to capital, international trade, information, and people. The nation with the best
international connectivity is the Netherlands. The continent with the most connections is Europe.
Vietnam, Malaysia, Singapore, and Cambodia have outperformed expectations regarding global
connection in trade flow.
The Nature of Globalization
The following are the significant threads for the nature of globalization:
1. Increasing connectivity of civilizations throughout the globe;
2. Almost an unimpeded global flow of financial money, news, and cultural imagery;
3. Increased activity of international corporations like Multinational Corporations (MNCs);
4. Increasing economic development in many nations is accompanied by rising inequality;
5. The emergence of a worldwide consumer culture, more travel and migrations, faster
modes of transportation, and technological communications;
6. Increased awareness of what is happening worldwide and its probable effect on their
nation; and
7. The swift growth of international organizations, both governmental and non-
governmental, that support, supplement, and replace national operations.

Reasons for Globalization

Ariola (2018) has identified several reasons why the contemporary world has to
accommodate globalization as follows:
1. domestic markets are no longer affluent due to many interlocking factors;
2. companies and institutions go global to find political and economic stability, which is
relatively good in countries other than their country of origin;
3. technological and managerial know-how can be acquired, especially in science,
technology, education, health, and other disciplines, especially from advanced countries;
4. reduction of high transportation costs if one goes globally using advanced
communication and information tools; and
5. cross-border trade is stimulated and accelerated by the World Trade Organization
(WTO) creation.
Importance of Studying Globalization
By studying globalization in today’s contemporary world, we can:
1. comprehend the intricate webs of interdependence and the complex relationships
between nations, organizations, and individuals, thus providing insights into how
decisions and events in one part of the world can have consequences globally.

2. gain a deeper understanding of the dynamics of global markets, the impacts of

international trade policies, and the distribution of wealth and resources. This knowledge
is valuable for businesses, policymakers, and individuals seeking to navigate the global
economy effectively.
 3. appreciate and understand societies' multicultural and interconnected nature. It offers
insights into the influences of globalization on language, art, music, cuisine, and popular
culture, fostering a more inclusive and informed worldview.

4. derive insights into the complexities of global politics, the role of international
organizations, and the challenges and opportunities associated with global cooperation.
It helps us analyze human rights, environmental sustainability, migration, and
peacekeeping efforts.

5. comprehend the environmental impacts of global economic activities, the challenges of

climate change, and the need for international cooperation to address environmental
issues. It allows us to explore solutions for sustainable development and responsible
resource management on a global scale.

6. equips us with knowledge and perspectives to discuss global challenges such as

poverty, inequality, pandemics, technological advancements, and geopolitical tensions. It
encourages us to think critically, consider multiple viewpoints, and work towards
inclusive and sustainable solutions.

7. explore the complexities, interdependencies, and opportunities an interconnected world

presents. It enables us to navigate the global landscape more effectively, make informed
decisions, and actively contribute to addressing global challenges and fostering a more
inclusive, equitable, and sustainable future.
Phases of Globalization
According to Baldwin (2016), there are four phases of globalization as follows:
Phase 1: Humanizing the globe (300,000 BCE–10,000 BCE)
People in this era left Africa in search of food due to climate change. Production and
consumption were combined, although not in one location. The agricultural revolution of the
Neolithic era converted Phase 1 into Phase 2.

Phase 2: Localizing the global economy (10,000 BCE–1820 CE)

It was during this period that agriculture began to provide sustenance for the populace.
Instead of consumption coming from production, the other way around was happening. Seven
ancient civilizations rose to prominence during this period in what are now Iraq, Iran, Turkey,
Egypt, China, India/Pakistan, and Greece/Italy. Phase 2 was replaced by Phase 3 by the steam
revolution, which resulted in the first bundling of production and consumption in specific places.

Phase 3: Globalizing local economies (1820–1990)

The Industrial and Steam Revolutions made it possible to transport commodities

effectively over great distances by land and sea. Steam thus unlocked amazing transportation
potential that reduced the cost of consuming goods in distant locations. The "first unbundling" of
production and consumption occurred at this point. A sharp decline in the price of transporting
products was the root cause. Yet, local output concentration occurred at the level of factories
and industrial areas, notwithstanding the worldwide dispersion of production. The transition from
Phase 3 to Phase was caused by the Information and Communication Technology (ICT)
Revolution.

Phase 4: Globalizing factories (1990–present)

The ICT Revolution drastically reduced the cost of transferring ideas and goods across
large distances in the fourth stage. As a result, it made it less expensive to coordinate intricate
tasks remotely, which altered and is still altering the character of globalization. Specifically, it
became possible to organize separate manufacturing production stages over great distances for
the first time. This was dubbed the "Second Unbundling" by Baldwin. The significant wage
difference during Phase 3 made the separation lucrative once this production unbundling was
possible. Labor-intensive stages were offshored by wealthy nations to low-wage neighboring
countries.

Sectors of Globalization

The following are the sectors of globalization.

1. Economic globalization

Economic globalization implies an increasing interdependence of world

economies due to the growing scale of cross-border trade of commodities and services,
the flow of international capital, and the wide and rapid spread of technologies. Each
country's available resources will not just be limited to what it can produce but also
dependent on other countries.

2. Political globalization

Political issues such as women's and children's rights can now be exposed
globally. As a result, many laws are already implemented to address these issues. This
aspect promotes globally specific common values such as equality, human rights,
justice, democracy, and morals.

3. Military Globalization

It refers to the process that embodies the growing extensity and intensity of
military relations among political units of the world system. It also reflects the expanding
network of worldwide military ties and relations as well as the impact of critical military
technological innovations (from steamships to satellites)

4. Culture globalization

It conveys that the cultures of a specific country can be shared or spread with
other countries. The downside of this is that some cultures that are exclusive to a
certain country are slowly diminishing.

5. Ecological globalization.

Globalization has many ecological consequences, such as the infiltration of

invasive species that may be detrimental to a particular ecosystem.
 6. Technology globalization

Due to technological advancement, people can now communicate with the

people of other countries and give feedback on many issues worldwide.

7. Geographical

Globalization has created a borderless world where one can explore other
countries safely.

Positive Effects of Globalization

The following are the positive effects of globalization, among others.
1. One of the most noticeable effects of global competition is the increased quality of
goods. Domestic companies improve the quality of their products to compete with
foreign competitors, thereby enhancing customer satisfaction.

2. Multinational Corporations (MNCs) can expand their business to developing countries,

increasing job opportunities and employment for the locals.

3. Foreign Direct Investment (FDI) enters emerging nations. Profitable companies attract
much international investment, increasing the country's foreign currency reserves.

4. To enable nations to gain more from improved trade connections, the World Trade
Organization (WTO) and other international organizations were established to oversee
and control global trade and promote seamless trade flows between and among them.

5. Breakthroughs and technological know-how from developed countries can be shared

with developing countries, especially so that they can use them to build their resources.

6. Excellent cultural practices, habits, and ideas originating from one country can be shared
with another, thus improving the quality of human life.

7. One can have more education opportunities to be enrolled in the world's finest
educational institutions.

8. Globalization has forced police and security services from many countries to band
together to fight international terrorism. Criminals may now be apprehended no matter
where they go to avoid detection.

Negative Effects of Globalization

The following are the negative consequences of globalization, among others.
1. As a result of globalization, child labor and slavery have increased. Companies that use
minors may be excused from wrongful labor practices by paying authorities in nations
with weak accountability.
2. The argument put up by anti-globalization scholars is that the rich are getting richer while
the poor are barely making ends meet. They claim that globalization has increased the
gap between class and income.

3. Globalization is undoubtedly one of the primary factors identified as contributing to

environmental deterioration. Environmental deterioration has generated intense
discussion at numerous international conferences. Natural resources on Earth are
depleted by industrial and factory operations, particularly those carried out by
multinational enterprises.

4. Globalization may have benefited terrorists and criminals unintentionally. It may now be
easier for them to travel to another country to execute their plans or to seek refuge.

5. Increased pollution in developing countries where giant companies have established

their business.

6. The spread of diseases can be attributed to globalization due to the free movement of
people. People from all over the globe may converge in one place, which is why a virus
from the rainforest may make its way to almost every nation in the world. The COVID-19
virus has easily spread, thus creating a pandemic due to the movement of people from
one country to another.