SOCSCI 1105 THE CONTEMPORARY WORLD 3.

In the 1970s, the term "globalization" was

• Globalization is a process of increasing coined
connection, commodification, and 4. In early 1981, Globalization was used in an
institutional cosmopolitanism with economic sense.
contradictory consequences. 5. It was popularized by Theodore Levitt in the
late 1980s.
• According to Thomas Larsson, 6. In the late 2000s, the IMF identified four
globalization is the process of world basic concepts of globalization: trade and
shrinkage, where distances get shorter, and transaction, migration, investment, and
things move closer. technology.
7. In 2013, globalization was used to define a
• According to Manfred Steger, globalization "borderless society."
is an intensification and expansion of social 8. 2017 - Globalization is used in academe
relations. 9. 2018 - Globalization used for all disciplines

• The term "global village" (1961) was coined Three Phases/Origins in the History of
by Marshall McLuhan. Globalization:

• Archaic globalization
- refers to globalizing events from the time of
Thomas Friedman’s Stages of Globalization:
the earliest civilisations
• 1.0: Globalization of Countries (1492-
Three Principles of Archaic Globalization:
1800s)
1. Universalizing Kingship
- The world shrank from large to medium,
2. Expansion of religion
centered on countries
3. Medicinal understanding
- driven by colonization and different energy
sources (e.g., steam power, horse power). • Proto-globalization
- Spain and Portuguese splits the new world, - based on increasing trade links such as the
referred to as the Treaty of Tordesillas Manila Galleon Trade and Columbian
Exchange.
- Columbian exchange refers to the enormous
• 2.0: Globalization of Companies (1800- widespread exchange of commodities
2000s) (animals, metals, etc...)
- The world shrank from medium to small • Modern globalization
- Focusing on companies seeking markets - Tied to industrialization
and labor. - allowed cheap production of household
items using economies of scale, while rapid
population growth created sustained demand
• 3.0: Globalization for Individuals (2000- for commodities.
present)
- The world shrank from small to tiny, Origins of Modern Globalization:
flattening the global economic field. 1. the emergence of U.S as global power
- This stage enables individuals to connect, 2. The fall of the Soviet Union and end of the
collaborate, and compete globally. Cold War
3. Emergence of MNCs (Multi National
Historical foundations of Globalization Corporation)
1. In 1897, globalization was called "Corporate
Giants", meaning large enterprises, coined by
Charles Taze Russell.
2. In 1930, the term "globalize" first appeared as
a noun in a publication titled Towards New
Education.
Examples of Global Corporations: Facilitators:
1. Discoveries/Inventions/technology
• Multinational Corporations (MNCs): (e.g, innovations of agriculture streamlines
Operate in more than one country with the process of farming)
centralized management (e.g., Microsoft, 2. Creation of MNCs/TNCs
Coca-Cola, McDonald’s). 3. Circulation of finance, ideas, culture etc..
• Transnational Corporations (TNCs): (e.g, exportation of foreign products)
Operate in multiple countries without a 4. Free market ideology
centralized management system (e.g., Nike, • Laissez-faire: an economic
Amazon, Walmart). philosophy of free-market capitalism
that opposes government intervention
Slowbalization: A term coined by the Dutch writer (innovation, lower cost of goods, ease
Adjiedj Bakas referring to the phenomena which of starting a business, open
involves a slowing down of the pace of global competition)
integration. 5. Large-scale immigration
6. More liberal laws/policies
Contributory Factors to Slowbalisation
1. Improved or technological advancements 2 kinds of economy
2. Changing consumer preferences 1. Protectionism
3. Higher tariffs • You are protecting your own
4. Environmental concerns country’s economy from foreign
5. Carbon taxes competition by taxing imports via
tariffs.
Deglobalization: The reduction/diminishing of 2. Liberalization
interdependence and integration, leading to reduced • Reduces trade barriers
international trade and cross-border investments.
Important concepts to know for Global economy
Contributory Factors to Deglobalization 1. Global Supply Chain
1. Continuously low unemployment in the world • Covers all the steps in manufacturing
economy and delivering a product.
2. Income divide problem/income inequality 2. Global Production Network
3. Uncertain risks, such as the coronavirus pandemic • Nexus of interconnected functions
since 2020, • meaning steps or series of
4. Trade tensions between countries functions/activities
5. The rise of populism 3. Global Value Chain
• Refers to the full range of activities
September 13, 2024 (E.g, designing, manufacturing,
distribution, advertisement,
Global economy recycling, post production)
• The free movement of goods and services • Pre-production down to post-
around the world production
• Increasing interdependence of world 4. Global Competition
economies as a result of cross border trade of • Numerous countries are competing
commodities globally for the production and
• Concerned with globalization of production, marketing of various commodities
finance, markets, technology, organization such as oil, natural gas, minerals and
regimes, institutions, corporations and labor. technologies4
5. Outsourcing
• Pertains to the transfer of activities,
ones performed by an entity (a third-
party entity?) in exchange for money
ROLE OF INTERNATIONAL FINANCIAL
INSTITUTIONS IN THE CREATION OF
GLOBAL ECONOMY Bretton Woods System
• July 1944
International Financial Institution (IFI) • 44 countries gathered to agree on the standard
• Chartered by more than one country rate of currency
• Shareholders are generally national • Bretton Woods in New Hampshire
governments • An agreement under which gold was the basis
• International institutions and organizations for the US Dollar and other currencies were
are occasionally shareholders pegged to the US Dollars Value

International Monetary Fund (IMF) Purpose of Bretton Woods

• Originally created in 1945 as part of the
Bretton Woods Agreement • The purpose of the Bretton Woods meeting
• Under the International Financial Institution was to set up a new system of rules,
• Attempted to encourage international regulations, and procedures for the major
financial cooperation by introducing a system economies of the world to ensure their
of convertible currencies at fixed exchange economic stability.
rates. • Bretton Woods established the International
• To promote macroeconomic stability for both Monetary Fund (IMF) and the World Bank.
its member nations and the global economy.
• Deals with exchange rates, balances of
payments, international capital flows, and the
monitoring of member states and their
macroeconomic policies.

Multilateral Development Banks (MDBs)

• Example is the World Bank, the World Bank
loans itself to countries that require funds (to
balance the global economy)
• Provide financing for development to
developing countries through long term loans
at interest rates way below market rates.

World Trade Organization (WTO)

• WTO operations continue to be premised on

the neoliberal idea that all nations benefit
from free and open trade.
• The organization is dedicated to reducing,
and ultimately eliminating, barriers to such
trade.
Concepts (Globalization affects markets of three September 20, 2024
kinds) Global Interstate System
1. Commodities
• Goods and services Diplomacy
2. Labor • The art and science of maintaining a peaceful
• Manpower, workers who produce environment between countries and others
goods and services
3. Assets and debts NATION VS STATE
• Bank loans, securities
4. International Trading System • Nation-state – A relatively modern
• Gives rules and regulations for free phenomenon in human history, composed of
trade two non-interchangeable terms: nation and
• Open, rule-based, predictable, state.
nondiscriminatory trading and
financial system as an essential goal. STATE
• The World Trade Organization
• Refers to a country and its government.
(WTO) oversees this
• Described as a group of people who are more
5. Foreign Trade Policy
• Network of laws
or less numerous, permanently occupying a
6. Foreign Trade certain area of the country.
• Free from outside interference.
• The exchange of capital goods and
• Have a strong form of governance.
services, capitals across borders
• Majority of citizens consistently submit.
• Pertains to Gross Domestic Product

ELEMENTS OF STATE
Benefits of Trading Internationally
1. Adapts various goods 1. People – A state's population does not need
2. Outlet of supplies to have a certain size or number to exist.
3. Reduction of Market Fluctuations 2. Territory – The actual area of the earth's
4. Production Efficiency surface where humans live.
5. Specialization • TERRESTRIAL DOMAIN – Refers to
6. Innovation the "land-based" area of the territory.
7. Investment • AERIAL TERRITORY – The area of
the earth's exosphere above the land's
Challenges of Global Economy surface.
1. Commodities = Higher prices of goods • FLUVIAL TERRITORY – Refers to
2. Labor = Low employment rate "bodies of water."
3. Assets = Debt crisis • SUBJECT TO INTERNATIONAL
LAW STANDARDS FOR
DETERMINING TERRITORY.
3. Government – Serves as the vehicle through
which the state’s intentions are carried out or
accomplished.
4. Sovereignty – The state has the right to
conduct its own affairs, both domestically and
internationally.
• Domestic/internal – Power of the state to
manage its affairs.
• International/external – Capacity of the
state to interact with other equal states.
JURISDICTION The Treaty of Westphalia

• The state's authority over individuals and • A set of agreements signed in 1648 to end the
objects on its soil. 30 years' war between major continental
• Every person residing or temporarily residing powers in Europe.
in the state’s territory is under its jurisdiction, • Designed by the Holy Roman Empire, Spain,
except for foreign states, heads of state, acts France, Sweden, and the Dutch Republic.
of state, foreign merchants, and foreign
armies. Napoleon Bonaparte

NATION • Also known as Napoleon I.

• A French military leader and emperor who
• According to Benedict Anderson, a nation is controlled much of Europe in the early 19th
an "imagined community" and does not go century.
beyond a given "official boundary." • Spread principles of the French Revolution:
• It is inherently limited and sovereign. liberty, equality, and fraternity.
• The main privilege and concern of citizens • Challenged the power of kings, nobility, and
are rights and responsibilities. religion in Europe.

NATION-STATES Napoleonic Wars (1803-1815)

• Nationalism facilitates the formation of a • Implemented the Napoleonic Code, which

state. forbade birth privileges, encouraged freedom
• In the modern era, nation-states are largely of religion, and established meritocracy in
created by nationalist movements. government service.
• States become independent and sovereign. • Shocked European monarchies and the
• Sovereignty is the fundamental principle of hereditary elite.
modern state politics. • Battle of Waterloo (1815) – Anglo and
Prussian armies defeated Napoleon.
• Created the Concert of Europe.

Concert of Europe

• An alliance between the United Kingdom,

Austria, Prussia, and Russia.
• Aimed to prevent another war.
• Restored monarchical, hereditary, and
religious privileges before the French
Revolution and Napoleonic Wars.
• Sought to restore the sovereignty of states.
• Metternich System – Created the Concert of
Europe, named after its architect Klemens
von Metternich.

Internationalism

• A desire for greater cooperation and unity

among states and peoples.
• Has two forms: liberal internationalism and
socialist internationalism.
LIBERAL INTERNATIONALISM VS GLOBAL GOVERNANCE
SOCIALIST INTERNATIONALISM Government vs Governance

Liberal Internationalism • Government – An agency where the will of

the people is formulated, carried out, and
1. Immanuel Kant expressed; a system or group of people
• First major liberal internationalist governing an organized community.
thinker, late 18th-century German • Governance – Exercises political, economic,
philosopher. and administrative authority to manage a
• Envisioned a world government that nation’s affairs; the process of decision-
would govern interstate relations and the making and implementing decisions.
system as a whole.
Global Governance

2. Giuseppe Mazzini • Refers to various intersecting processes that

• 19th-century Italian patriot, first to create world order.
reconcile nationalism with liberal • Encompasses institutions, policies, norms,
internationalism. procedures, and initiatives through which
• Believed in a Republican Government and states and citizens bring predictability,
proposed a system of free nations stability, and order to their responses to
cooperating to create an international transnational challenges.
system.
Sources of Global Governance

• Treaties and organizations.

3. US President Woodrow Wilson.
• International NGOs.
• Principle of Determination – The belief
• Powerful transnational corporations.
that the world's nations have the right to
free, sovereign government and should International Organizations
aim to become democracies.
• Influenced by Mazzini • Refers to international intergovernmental
organizations made up of member-states.
Socialist Internationalism • Power of Classification (e.g., ISO).
• Power to Fix Meanings (e.g., sources of
• Karl Marx – German socialist philosopher,
information).
a major critic of Mazzini.
• Power to Diffuse Norms (e.g., WHO).
• Believed that true internationalism should
reject nationalism. League of Nations
• Nationalism rooted people in domestic
concerns rather than global ones. • An international democratic group aiming to
• Emphasized economic equality. prevent another war after WWI.
• Divided the world into classes: Bourgeoisie • The US failed to join due to opposition from
(capitalist) and Proletariat (working class). its Senate.
• Nationalism prevented the unity of workers. • The League failed to prevent WWII, led by
• Followers of Marx established their own Axis and Allied Powers.
international organization.
• Was a short-lived union of European socialist UNITED NATIONS
and labor parties established in Paris in 1889.
• Two prominent achievements: Labor Day • The most prominent international
(May 1) and International Women's Day. organization, founded on October 24, 1945,
in San Francisco, California, USA.
•
 • The term "United Nations" was coined by US
President Franklin Roosevelt on January 1,
1942.
• Now has 193 member states (originally 51
members).

Six United Nations Main Organs

1. General Assembly – The main deliberative,

policy-making body and representative
organ.
2. Security Council – The most powerful organ
(permanent members: China, USA, France,
Russia, UK).
3. Economic and Social Council – Central
body for coordination, policy review,
dialogue, and recommendations on social and
environmental issues.
4. International Court of Justice – Principal
judicial organ of the UN.
5. Trusteeship Council – Established in 1945
by the UN Charter.

The Secretariat – Consists of the Secretary-General

and 10,000 international UN staff members.