Chapter 1

capital that has stimulated trade in both

GLOBALIZATION CONCEPTS, sources and goods .
MEANINGS, FEATURES, AND
DIMENSIONS POLITICAL DIMENSION - This refers to an
enlargement and strengthening of political
interrelations across the globe.
GLOBALIZATION
CULTURAL DIMENSION - This refers to
 is the process in which people, ideas
the increase in the amount of cultural flows
and goods spread throughout the world.
across the globe. Cultural interconnections
 is a process of interaction and
are at the foundations of contemporary
integration among the people,
globalization.
companies, and governments of
different nations.
RELIGIOUS DIMENSION - Religion is a
 about growing worldwide connectivity
personal or institutionalized set of
 It is about growing worldwide
attitudes, beliefs, and practices relating to
connectivity according to Steger.
or manifesting faithful devotion to an
acknowledged ultimate reality or deity . It is
HISTORICAL PERIODS OF the most important defining element of any
GLOBALIZATION civilization as contrasted with race,
language, or way of life.
THE PREHISTORIC PERIOD (10000 BCE-
IDEOLOGICAL DIMENSIONS - Ideology is
3500 BCE) - In this earliest phase of
a system of widely shared ideas, beliefs,
globalization, In this period due to absence norms and values among a group of people .
It is often used to legitimize certain political
of advanced forms of technology,
interests or to defend dominant power
globalization was severely limited.
structures.
THE PRE-MODERN PERIOD (3500 BCE- Chapter 2
1500 CE) - In this period the invention of THE GLOBAL ECONOMY
writing and the wheel were great social and
technological boosts that moved SILK ROAD - a trade route which connects
globalization to a new level.
the East, particularly China. This route
THE EARLY MODERN PERIOD (1500-
brings us to the history of how Philippines
1750) - It is the period between the
was discovered by the Portuguese and
Enlightenment and the Renaissance.
Spain.
THE MODERN PERIOD (1750-1970) -
ECONOMIC GLOBALIZATION - refers to
Innovations in transportation and
the expanding interdependence of world
communication technology
economies.
THE CONTEMPORARY PERIOD (FROM
THE INTERNATIONAL MONETARY FUND
1970 TO PRESENT) - The creation,
(IMF) - also defined Economic
expansion, and acceleration of worldwide
Globalization as a historical process, the
interdependencies occurred in a dramatic
result of human innovation and
way and it was a kind of leap in the history
technological progress(IMF,2008).
of globalization.
BRODIE (2006) – Calls the government as
DIMENSIONS OF GLOBALIZATION
the midwives of globalization which means
the role of the nation state.
ECONOMIC DIMENSION - This refers to
the extensive development of economic
MARKET INTEGRATION
relations across the globe as a result of
technology and the enormous flow of
MARKET INTEGRATION - occurs when challenges of operating in multiple
prices among different locations or related environments in managing their internal
goods follow similar patterns over a long markets in building an advantage. These
period of time. three functions can be created by CFOs
through exploiting their internal capital
INTEGRATED MARKETING allows you to markets.
spread your marketing messages across
multiple channels and increases the 1. Financing
chances of it being heard. A group's tax bill can be reduced by the
CFO like borrowing in countries with high
HOMOGENIZATION OF TRADE & tax rates and lending to operations in
COMMERCE – Result of a stablishment of a countries with lower rates.
global economy.
2. Risk Management
AMERICAN HISTORY,2018 – Emerge after Global firms can offset natural currency
the second world war exposures through worldwide operations
instead of managing currency exposures
DOWER(1992) – Primary and Global maker through financial markets.
of trucks for the Japanese military.
3. Capital budgeting
COLONIZATION AND IMPERIALISM rose Getting smarter on valuing investment
as the new ways of putting order to the opportunities COs can add value.
economic interrelationships among
countries. BRAZIL, RUSSIA, INDIA, CHINA AND
SOUTH AFRICA (BRICS)
BRIC, without South Africa, was originally
TYPES OF RELATED MARKETS WHERE coined in 2003 by Goldman Sachs, which
MARKET INTEGRATION OCCURS speculates that by 2050 these four
economies will be the most dominant.
South Africa was added to the list on April
STOCK MARKET INTEGRATION - This is a
13, 2011 creating "BRICS"
condition in which stock markets in
different countries trend together and
GENERAL AGREEMENT ON TARIFFS
depict same expected risk adjusted returns.
AND TRADE (GATT) - deals with trade in
goods. The two primary objectives of GATTS
are to ensure that all signatories are
FINANCIAL MARKET INTEGRATION - It is treated equitably when accessing foreign
an open market economy between markets; and second, to promote
countries facilitated by a common currency progressive liberalization of trade.
and the elimination of technical, regulatory
and tax differences to encourage free flow
of capital and investment across borders Chapter 3
THE GLOBAL INTERSTATE SYSTEM

GLOBAL CORPORATION - A global INTERSTATE - A system of unequally

corporation is a business that operates in powerful and competing states in which no
two or more countries. It also goes by the single state is capable of imposing control
name "multinational company’. on all others.

STATE - are independent political

communities each of which possesses a
THE FINANCE FUNCTION IN A GLOBAL
government and assert sovereignty in
CORPORATION
relation to a particular portion of the earth’s
surface and particular segment of human
CHIEF FINANCIAL OFFICERS (CFOS)
population (Hedley Bull)”
must balance the opportunities with the
 payments difficulties; and giving
NATION - The concept of nation practical help to member
emphasizes the organic ties that hold
groups of people together and inspire a
sense of loyalty and belonging – i.e., 3. WORLD TRADE ORGANIZATION
ethnicity, language, religion, and others (WTO)-regulates international trades
(Schattle, 2014). deals with the rule of trade between
nations, ensure the trade will flows
NATION-STATE- This refers to modern smoothly, predictably and freely as
countries and their political apparatuses possible. Act as forum in negotiation
rules over a single nation. trade agreements.

THE STATE AND THE ECONOMIC

INTERDEPENDENCE EUROPEAN INTEGRATION - Is the process
of industrial, political, legal, economic,
The belief that globalization imposes a social and cultural integration of states
forced choice upon states either to conform wholly or partially in Europe.
to free market principles or run the risk of
being left behind is termed into a phrase
called “Golden Straitjacket”. EUROPEAN UNION (EU) - Is an
international organization comprising 28
NEOLIBERALISM - the intensification of European countries and governing common
the influence and dominance of capital. economic, social, and security policies

ECONOMIC SOVEREIGNTY - The power or

national governments to make decisions
ECONOMIC INTEGRATION - which a
independently of those made by other
group of countries strives to increase their
governments.

There are four diff. concepts of level of welfare. often includes the
sovereignty:
reduction or elimination of trade barriers.
1. International legal Sovereignty SEVEN STAGES OF ECONOMIC
2. Westphalian Sovereignty INTEGRATION
3. Interdependence Sovereignty and
4. Domestic Sovereignty 1. Preferential trading area (PTA
2. Free trade area
3. Customs union
WORLD’S THREE LEADING FINANCIAL 4. Common market
INSTITUTIONS 5. Economic union
6. Economic and monetary union
7. Complete economic integration
1. WORLD BANK (WB)- The international
PREFERENTIAL TRADE AREAS (PTAS) -
financial institution that provides loans
Happens when there’s an agreement on
to countries of the world for capital
reducing or eliminating tariff (tax or duty to
projects. It was established by the
be paid on a particular class of imports or
United Nations Monetary and Financial
exports) barriers on selected goods
Conference or the Bretton Woods
imported from other members of countries
conference.
within the geographical region or areas.
2. INTERNATIONAL MONETARY FUND
FREE TRADE AGREEMENTS (FTAS) -
(IMF)- It does so in three ways: keeping
Eliminate import tariffs as well as import
track of the global economy and the
quotas between signatory countries.
economies of member countries;
lending to countries with balance of
CUSTOM UNION - Removal of tariff structures and strategies that may
barriers between members, together with empower oppressed populations.
the acceptance of a common or unified
external tariff against non-members. GLOBAL JUSTICE MOVEMENT - Describes
the loose collection of individuals and
COMMON MARKET (CM) - eliminating groups often referred to as a “movement of
non-tariff barriers to trade, such as the movements”
regulatory treatment of product standards
are removed by CM NEW TRANSNATIONAL ACTIVISM - Is as
multifaceted as the internationalism.
ECONOMIC UNION - trading bloc that has
both a common market between members, SOCIAL MEDIA AND THE STATE - Social
and a common trade policy towards non- media is a computer-based technology that
members. facilitates the sharing of ideas and
information.
ECONOMIC AND MONETARY UNION
(EMU) - Involves a single economic CONTEMPORARY GLOBAL
market, a common trade policy, a single GOVERNANCE
currency and a common monetary policy.
GLOBAL GOVERNANCE OR WORLD
COMPLETE ECONOMIC INTEGRATION - GOVERNANCE - Is a product of neo-liberal
The final stage of economic integration in paradigm shifts in international political and
which member states completely forego economic relations .
independence of both monetary and fiscal
policies. INTERNATIONAL ORGANIZATION (IOS) -
Commonly used to refer international
THEORIES OF EUROPEAN INTEGRATION intergovernmental organizations on groups
that are primarily made up of member-
NEO-FUNCTIONALISM - This theory states.
focuses on the supranational institutions of
the EU of which the main driving forces of POWERS OF INTERNATIONAL
integration ORGANIZATION
1. Power of classification
INTERGOVERNMENTALISM - theory 2. Power to fix meanings
provides a conceptual explanation of the 3. Power to diffuse norms
European integration process. 4. Because of these immense powers, IOs
can be sources of great good and great
LIBERAL INTERGOVERNMENTALISM - harm.
Application of rational institutionalism to
the field of European integration ROLES AND FUNCTIONS OF THE
UNITED NATIONS - As an
MULTI-LEVEL GOVERNANCE (MLG) - intergovernmental organization, the United
defined MLG as dispersion of authority Nation is tasked to promote international
across multiple levels of political co-operation and to create and maintain
governance. (Liesbet Hooghe and Gary international order.
Marks )
THE UNITED NATIONS (UN) - in the world
TRANSNATIONAL ACTIVISM IN STATES of politics has the roles of preventing and
managing conflicts, regulating armaments,
TRANSNATIONAL ACTIVISM - Defined as championing human rights.
the mobilization of collective claims by
actors located in more than one country FOUR MAIN PURPOSES OF THE UN
CHARTER
SOCIAL MOVEMENT - type of group
action. It refers to the organizational
1. Maintaining worldwide peace and  Less Population
security  High wealth
2. Developing relations among nations  High standard of living
3. Fostering cooperation between nations  High Industrial Development
in order to solve economic, social, industries
cultural, or humanitarian international
problems SOUTH
4. Providing a forum for bringing countries  High population
together to meet the UN's purposes and  Low wealth
goals  Low Standard or living
 Low Industrial Development
The UN aims to save succeeding
Agricultural
generations from the scourge of war.
FIRST WORLD
- Developed, capitalist and industrial
CHALLENGES OF GLOBAL GOVERNANCE Countries
IN THE TWENTY-FIRST CENTURY - It is a  North America
process which allows interconnectivity  Western Europe
across different borders and sovereign  Japan
territories.  Australia

BASIC ELEMENTS OF A STATE SECOND WORLD

-Former communist – socialist
1. TERRITORY  Russia
2. PEOPLE  Eastern Europe
3. SOVEREIGN POWER ( THE AUTHORITY  Turk States
OF A STATE TO GOVERN itself)  China

THIRD WORLD
NATION- STATE - role in globalization is -Developing Countries
complex. Since nation-states are divided by  Africa
physical and economic boundaries, reduced  Asia
barriers in international commerce and  Latin America
communication are considered their
potential threat. REGIONALISM – Refers to the
decentralization of political powers or
GLOBALIZATION’S IMPACT ON THE competencies from higher towards a lower
STATE political level.
1. POVERTY
2. ENVIRONMENTAL POLLUTION
3. ECONOMIC CRISIS
4. ORGANIZED CRIME AND TERRORISM

DECISION MAKING PROCESSES IN

GLOBALIZATION is complex as it takes
place in various levels such as sub-national,
national
Chapter 5
GLOBAL DEVIDES

GLOBAL SOUTH – Refers to the regions of

latin America, Asia, Africa and Oceania
mostly low income and politically or
culturally marginalized.

NORTH