Globalization is derived from the word “globalize” which refers to the emergence of an international

network of economic systems. This is also a process of interaction and integration among the people,
companies, and government of different nations.

Manfred Steger described the process of globalization as “the expansion and intensification of the social
relations and consciousness across the world time and across world – space.”

Bauman (2003) states that much has change during time immemorial. Human beings have encountered
many changes over the last century especially in their social relationships and social structures of these
changes, one can say that globalization is very important change, if not, the most important. Swedish
journalist Thomas Larsson saw the globalization as the process of world shrinkage, of distance getting
shorter, things moving closer; it pertains to the increasing ease with which somebody on one side of the
world interact, to mutual benefit with somebody on the other side of the world. On the mid-1990s,
Martin Khor once regarded globalization as colonization

THERE ARE 3 TYPES OF GLOBALIZATION

1. Economic Globalization – refers to interconnectedness of economies through trade and

exchange of resources. It also refers to the widespread international movements of goods,
services, capital, technology and information. Economic globalization primarily comprises the
globalization of product, finance, markets, technology, organizational regimes, institutions,
corporations, and labour. Example, I used cooking oil for Carbonara in which I took the
ingredients from the package of my mother from South Korea. Next example, when you buy a
Toyota car, its parts have probably been produced in several different countries.
2. Social Globalization – it pertains to human interaction within cultural communities,
encompassing topics like family, religion, work and education. It is a global interconnectedness
between the people. It is also a measure of how easily information and ideas pass before people
in their own country and between different countries (includes access to internet and social
media networks.) Good examples of social globalization could include internationally popular
films, books and TV series. The Harry Potter/ Twilight films and books have been successful all
over the world, making the characters CONW 1013 – The Contemporary World | 8 featured
globally recognizable. However, this cultural flow tends to flow from the center (i.e. from
developed countries such as the USA to less developed countries).
3. Political Globalization – refers to the amount of political cooperation that exist between different
countries. Political Globalization refers to the growth of the worldwide political system, both in
size and complexity. It also refers to the organization of different countries intro trade blocs.
Example: the development and growing influence of international organizations such as the UN
or WHO means governmental action takes place at an international level.
Why do we need to study globalization?

How will you be connected to other countries? How will you be able to understand the standard of living
in other countries and improve the development of politics, technology, sciences, culture, education and
economy? These are possible because of Globalization. For instance, researching is much easier because
there is the internet, where you can find the information that you need to satisfy your curiosity.
Moreover, besides books, the internet provides you with necessary facts and trivia on different concerns
and trends in the field of early childhood education, which serve as guides for you to become a better
and competent early childhood educator in the near future. Furthermore, because of the modern
technology, you get to experience a comfortable lifestyle. On the other hand, globalization has taught
you how to save and budget your allowance because of the continuous price increase in basic needs
such as food, clothing, and even transportation in our country. It is very important to study globalization
because understanding the contemporary international political economy is an essential part of being an
informed citizen. Understanding globalization is a very important part of learning about our human
involvement with the environment and society. Our daily experiences at school, work, and home are an
integral part of the globalization process. We live in an independent global political economy. The
concept of understanding globalization provides us with the tools necessary to be productive members
of our local and global communities. The purpose of studying globalization to understand the differences
and similarities of different cultures and to understand how we are connected and at the same time
separated from the world. (Steger, 2009)

THE TASK OF DEFINING GLOBALIZATION Since its first appearance in the Websters Dictionary in 1961,
many opinions about globalization have flourished. There are two classifications on defining
Globalization, Broad and Narrow

Broad and inclusive definition according to Ohmae 1992 – “globalization means the onset of the
borderless world.” It can include a variety of issues that deal with overcoming traditional boundaries.
This definition of globalization can see from a more perspective point of reference when it comes to how
we all become connected to each other. It can distinguish all the benefits and has the advantage of
seeing further ahead to avoid future problems. It does have a potential to neglect its own constituents at
certain times because of the tendency to look outward. This classification of Globalization also describes
the opportunity by which the people or factors behind a certain development in a country benefit as
well. Example, in a nutshell, broad and inclusive globalization gives everyone a chance to participate in
the management in such a way that the perspectives or plans a country have is reflected in their policies.
This leads to a more secured opportunities and benefits for everyone. Advantage and disadvantage are
also provided below.

ADVANTAGES

• Equal opportunities for everyone

• Secured opportunities for everyone

• Growth for the countries

• Development of the nations

DISADVANTAGES

• Reshaping of government institutions to cater for everyone

• Economic processes need to be reorganized

• Social processes require reorganization

• Failure to focus on the country’s own people and policies

Narrow and exclusive defined by Robert Cox as “the characteristics of the globalization trend include the
internationalizing of production, the new international division of labor, new migratory movements
from South to North, the new competitive environment that accelerates these processes, and the
internationalizing of the state… making the states into agencies of the globalizing world”. This definition
of globalization focuses on the one spot, particularly its own. It has a very limited point of view because
of the lack of reference. It fails to recognize the role of other parties as a potential partner. In global
trade, a nation that takes narrow point of view usually starts the trade wars because it excludes others. It
usually has the support of its own constituents and is commended for taking a protectionist stand. In
terms of globalization, narrow and exclusive means that the focus of the globalization would be limited
to the country alone.

ADVANTAGES

• Focuses on the development of the country

• Enhancement of the policies in a country

• Supported by people

• Gives importance to the people and the cultures inside the country

DISADVANTAGES

• Results to trade wars with other countries

• Limited perspective

• Failure to establish connections with other countries

NATURE OF GLOBALIZATION

1. Liberalization: It stands for the freedom of the entrepreneurs to establish any industry or trade or
business venture, within their own countries or abroad or in short “removing of controls”.

2. Free trade or the free market: It stands for free flow of trade relations among all the nations.

3. Globalization of Economic Activity: Economic activities are to be governed both by the domestic
market and also the world market. It stands for the process of integrating the domestic economy wit
world economies. The features of the globalization of economic activity include an international
development of trade, production, investments and flow of workforce.

• International Trade: relates to the exchange of capital and goods in the global market. International
trade is an exchange involving a good or service conducted between at least two different countries. The
exchanges can be imports or exports. An import refers to a good or service brought into the domestic
country. An export refers to a good or service sold to a foreign country.

• Production: It is a process of transforming tangible and intangible inputs into goods or services. Raw
materials, land, labor and capital are the tangible inputs, whereas ideas, information and knowledge are
the intangible inputs. These inputs are also known as factors of production.

• Investment: It is an asset or item accrued with the goal of generating income or recognition. In an
economic outlook, an investment is the purchase of goods that are not consumed today but are used in
the future to generate wealth. In finance, an investment is a financial asset bought with the idea that the
asset will provide income further or will later be sold at a higher cost price for a profit

• Workforce: is the number of people who are employed plus the unemployed who are looking for
work. The labor pool does not include the jobless who aren't looking for work.

4. Liberalization of Import-Export System: It stands for liberating the import- export activity and
securing a free flow of goods and services across borders.

5. Privatization: Keeping the state away from ownership of means of production and distribution and
letting the free flow of industrial, trade and economic activity across borders. Privatization is a way to
equalize the proper distribution of goods and services not only within one’s jurisdiction but also outside
to avoid that instance of concentration of goods in the hands of one person.

6. Increased Collaborations: Encouraging the process of collaborations among the entrepreneurs with a
view to secure rapid modernization, development and technological advancement. Each and every
entrepreneur follow a specific guideline that will govern them. This is employed to harmonized price
increase so that those who are less in life can freely participate in free flow of countries production and
wealth.

7. Economic Reforms: Encouraging fiscal and financial reforms with a view to give strength to free world
trade, free enterprise, and market forces. To freely protect every country in their international
transactions, reforms are considered. For instance, the inclusion of private enterprises in a country’s
jurisdiction. A very good example of this is the establishment of world bank where countries can freely
borrow amount to answer the economic deficits suffered by a country within a fiscal year.
Anti-Globalization

• Many anti-globalism activists see globalization as the promotion of a Corporatist agenda, which is
intent on constricting the freedoms of individuals in the name of profit. They also claim that increasing
autonomy and strength of corporate entities increasingly shape the political policy of nation-states.

• Globalization imposes credit-based economics, resulting in unsustainable growth of debt and debt
crises.

Pro-Globalization

• Supporters of free trade point out that economic theories such as comparative advantage suggests
that free trade leads to a more efficient allocation of resources, with all those involved in the trade
benefitting. In general, they claim that this leads to lower prices, more employment and better
allocation of resources.

GLOBALIZATION IN THE PHILIPPINES

The country is taking part in the process of globalization ever since the country signed agreements with
World Trade Organization in 1995. Now, globalization is very effective in the Philippines, it has allowed
major changes in the nation like more labor, and more Filipino and foreign companies has emerged in
the nation in order to help the country’s developing economy. Globalization can make the Philippines
into a better nation if the Philippine leaders make their economy more advance through global trading
and allowing more foreign investors to the help boost the economy. And by accomplishing those goals,
the Philippines should be able to reduce the poverty level as well as increase labor force for job
opportunities for those that are in need for a living. However, since the poverty level is still increasing,
most Filipinos has managed to find work overseas and they have managed to seek better living than in
the Philippines. The most effective factor in the Philippines is education. The society’s mentality is to be
educated and it’s with education that people in the nation see their opportunity for a better life in the
future.

THE MERITS AND DEMERITS OF GLOBALIZATION

Globalization is one of the most controversial issues of our times. Others generally believe that it brings
greater economic efficiency that will eventually result in bring prosperity for the world. Critics think that
it will largely benefit those who are already rich, leaving most of the world poorer than before. Economic
globalization is generally applauded by corporate leaders and economics. But opposition to economic
globalization is widespread in the labor and environmental movements for it has promoted exploitation
of workers, children, farmers, and the environment.

The Merits of the Globalization

1. Peaceful Relations

Most of the countries have resorted to trade relations with each other in order to boost their economy,
leaving behind any bitter past experiences if any. Example is the establishment of the United Nations,
which is a clear manifestation of establishing friendly relationship among all signatory countries.

2. Employment Considered

as one of the most crucial advantages, globalization has led to the generation of numerous employment
opportunities. Companies are moving towards the developing countries to acquire labor force. Along
with modernization is the goal of developing the economic status of a nation. This is feasible only if we
allow capitalist to pursue the rare business purpose. With this, different businesses are organized. Thus,
the creation of different job opportunities thereby leading to employment of individuals around the
world.

3. Education

A very critical advantage that has aided the population is the spread of education. With numerous
educational institutions around the globe, one can move out from the home country for better
opportunities elsewhere. The existence of economic goals must always be coupled with honing one’s
mind. Therefore, educational institutions are needed to support this claim. Along with modernization, it
is no longer impossible for people around the globe to develop themselves as we have institutions ready
to support us holistically.

4. Product Quality

The product quality has been enhanced so as to retain the customers. Today the customers may
compromise with the price range but not with the quality of the product. Low or poor quality can
adversely affect customer satisfaction. A very good example is our conception as to Chinese products. If
we are to compare it with products of other countries, we commonly say that Chinese products are of
poor quality and that of US products fully satisfy our standards. This is just a clear indication that
modernization or globalization made us more of a wise buyer.

5. Cheaper Price

Globalization has brought in fierce competition in the markets. Different business schemes are actually
adapted by the business owner to get more, as the law of supply and demand dictates. The competition
among business owners give security among customers. This is by way of considering low prices or rates
to get more demand because the more the demand is, the bigger the return of investment is on the part
of the owner, as everything is considered already by the owner whenever he resorted to low price
schemes.

6. Communication

Every single information is easily accessible from almost every corner of the world circulation of
information is no longer a tedious task, and can happen a second. The internet has significantly affected
the global economy, thereby providing direct access to information and products. For example,
messenger or Facebook can give us information as to what is happening on the other side of the world.

7. Transportation
 Considered as the wheel of every business organization, connectivity to various parts of the world is no
more a serious problem. Today with various modes of transportation available, one can conveniently
deliver the products to a customer located at any part of the world. In the past, there are no airplanes,
vessels, or any means of transportation. However, with the advent of technology, people can travel
worldwide.

8. GDP Increase

Gross Domestic Product, commonly known as GDP, is the money value of the final goods and services
produced within the domestic territory of the country during an accounting year. Naturally, this is
because of the chances given to a country to freely trade their local products. The more transaction a
country can get, either locally or internationally, can greatly affect its GDP.

9. Free Trade

A policy in which a country does not levy taxes, duties, subsidies, or quota on the import/export of
goods and services from other countries. There are countries which have resolved to free trade in
specific regions. This allows consumers to buy goods and services, comparatively at a lower cost.
Example, ASEAN Countries are all engaged to free trade unionism. So, what di we mean by this? This
means that they can import and export services without the need of paying import quotas and duties.

10. Travel and Tourism

Globalization has promoted tourism to great heights. International trade among different countries also
helps in increasing the number of tourists that visit different places around the world. This is possible by
way of locally introducing the tourist spots of a country by means of technology. For example, “Its more
fun in the Philippines”. Here, they promote tourism through Facebook, Instagram, tweeter and other
social acts that helps us to boost tourism.

11. External Borrowing

With the help of globalization, there is opportunity for corporate, national, and sub-national borrowers
to have better access to external finance, with facilities such as external commercial borrowing and
syndicated loans.

The Demerits (Disadvantages) of the Globalization

1. Health Issues

Globalization has given rise to more health risks and presents new threats and challenges for epidemics.
E.g. The dawn of HIV/AIDS. Having its origin in the wilderness of Africa, the virus has spread like wildfire
throughout the globe in no time. Widespread threats to global health persist – AIDS, TB, Malaria –
Infectious diseases – Chronic illnesses: Hypertension, diabetes – Environmental: Cancer, respiratory.
Food items are also transported to various countries, and this is a matter of concern, especially in case of
perishable items, and Covid-19 virus.

2. Loss of Culture
 With large number of people moving into and out of a country, the culture takes a backseat. People may
adapt to the culture of the resident country. They tend to follow the foreign culture more, forgetting
their own roots. This can give rise to cultural conflicts. E.g. a loss of a person’s culture usually due to
change in environment such as change due to immigration.

3. Uneven Wealth Distribution

It is said that the rich are getting richer while the poor are getting poorer. In the real sense, globalization
has not been able to reduce poverty. The power play among nations. Regardless of whether you like it or
not, US is always advance in terms of educational status. And since they are advanced, we can therefore
say that their position is far better than any other country. For instance, the main role given to them by
U.N.

4. Environment Degradation

The industrial revolution has changed the outlook of the economy. Industries are using natural
resources by means of mining, drilling, etc. which puts a burden on the environment. The establishment
of different infrastructures will always lead to risking the environment as we will be needing space for
the organization of this. Sometimes, these spaces considered our forest and different land forms which
are essential to ecosystem.

5. Disparity

Though globalization has opened new avenues like wider markets and employment, there still exists a
disparity in the development of the economies. Structural unemployment owes to the disparity created.
Developed countries are moving their factories to foreign countries where labor is cheaply available.
Again, a constant power play among nation. Those who have more can get more in cheapest way
possible. However, those who are less, is at the brink of dealing with other countries, normally at a
higher rate.

6. Conflicts

It has given rise to terrorism and other forms of violence. Such acts not only cause loss of human life but
also huge economic losses. Media today, exposing Muslims as terrorist is an example of this. What has
been show to our news today is a great thing to consider because this sends a signal to the viewer that
this is this without even evaluating the true nature and consequences of what has been shown. With
these conflicts that have been created, and sometimes, though it is sad to admit, it leads to war.

7. Cut-throat Competition

Opening the doors of international trade has given birth to intense competition. This has affected the
local markets dramatically. The local players thereby suffer huge losses as they lack the potential to
advertise or export their products on a large scale. Therefore, the domestic markets shrink. The concept
of (tatsulok) should be considered in explaining this part. The bigger the authority a country have, the
bigger the voice they have.
GLOBALIZATION REVIEWER

Definition of Globalization

 Origin of the term: Derived from "globalize," which refers to the international network of
economic systems.

 Manfred Steger: Defines globalization as the expansion and intensification of social relations
and consciousness worldwide.

 Bauman (2003): Emphasizes globalization as one of the most significant social changes in
history.

 Thomas Larsson: Describes globalization as the "world shrinkage"—reducing distances and

increasing interaction.

 Martin Khor: Once referred to globalization as a form of colonization in the 1990s.

TYPES OF GLOBALIZATION

1. Economic Globalization

o Definition: The interconnection of economies through trade, investments, and financial

exchanges.

o Includes: Global trade, finance, markets, technology, corporations, and labor.

o Examples:

 Using cooking oil from South Korea to make Carbonara.

 Buying a Toyota car whose parts are made in different countries.

2. Social Globalization

o Definition: Human interaction and cultural exchanges across nations.

o Includes: The spread of ideas, media, education, and lifestyle.

o Examples:

 Popular books/movies like Harry Potter or Twilight are recognized globally.

 Social media connects people from different countries.

3. Political Globalization

o Definition: The expansion of political cooperation and international governance.

o Includes: International organizations and trade blocs.

o Examples:

 United Nations (UN) helps maintain global peace.

 World Health Organization (WHO) manages health crises globally.

IMPORTANCE OF STUDYING GLOBALIZATION

 Increases connectivity with other countries.

 Helps understand global economic, political, and cultural interactions.

 Provides access to international trade, technology, and research.

 Affects daily life, including price fluctuations in food, transportation, and basic needs.

TASK OF DEFINING GLOBALIZATION

Broad and Inclusive Definition (Ohmae, 1992)

  Globalization = Borderless world.

 Encourages global participation and cooperation.

 Advantages:

o Equal opportunities for all nations.

o Secured growth and development.

 Disadvantages:

o Restructuring of government and economy required.

o May neglect local issues.

Narrow and Exclusive Definition (Robert Cox)

 Focuses on national policies and internal economic strategies.

 More protectionist approach.

 Advantages:

o Prioritizes national development.

o Preserves local culture.

 Disadvantages:

o Limits global trade and partnerships.

o Increases risk of trade conflicts.

NATURE OF GLOBALIZATION

1. Liberalization – Removing government restrictions on businesses and trade.

2. Free Trade – Open exchange of goods and services across borders.

3. Globalization of Economic Activity – Integration of national economies into the global market.

o International Trade – Buying and selling products across countries.

o Production – Transforming resources into goods and services.

o Investment – Buying assets to generate future profits.

o Workforce – Labor force affected by international economic trends.

4. Import-Export Liberalization – Easier cross-border trade.

5. Privatization – Less government control over industries.

6. Increased Collaboration – More partnerships between businesses worldwide.

 7. Economic Reforms – Policies supporting free trade and market growth.

GLOBALIZATION DEBATE: PROS AND CONS

Anti-Globalization (Critics)

 Corporations control politics.

 Widening wealth gap between rich and poor.

 Environmental exploitation.

 Debt crises from credit-based economies.

Pro-Globalization (Supporters)

 Free trade = Lower prices for consumers.

 Economic growth through trade and investments.

 More job opportunities worldwide.

 Cultural exchange and innovation.

GLOBALIZATION IN THE PHILIPPINES

 Joined the World Trade Organization (WTO) in 1995.

 More foreign investments and job opportunities.

 Globalized education system helps Filipinos compete internationally.

 Challenge: Many Filipinos seek work abroad due to local economic struggles.

MERITS (ADVANTAGES) OF GLOBALIZATION

1. Peaceful Relations – Promotes diplomacy (e.g., United Nations).

2. Employment Growth – More job opportunities in developing nations.

3. Education Access – Global learning opportunities.

4. Higher Product Quality – Competition improves standards.

5. Lower Prices – Market competition benefits consumers.

6. Better Communication – Faster information exchange via the internet.

7. Improved Transportation – Global movement of goods and people.

8. GDP Growth – Stronger economies due to increased trade.

 9. Free Trade – No tariffs, reducing costs for businesses and consumers.

10. Tourism Boost – Promotes cultural exchange and economic growth.

11. Access to International Loans – Countries can borrow from organizations like the World Bank.

DEMERITS (DISADVANTAGES) OF GLOBALIZATION

1. Health Issues – Global disease spread (e.g., COVID-19, HIV/AIDS).

2. Loss of Culture – Traditional customs influenced by foreign culture.

3. Wealth Inequality – The rich get richer, the poor get poorer.

4. Environmental Destruction – Industrialization harms ecosystems.

5. Economic Disparity – Unequal economic growth worldwide.

6. Conflict & Terrorism – Can fuel international disputes.

7. Local Business Struggles – Small businesses can't compete with global corporations.

ADDITIONAL CONCEPTS

International Trade Terms

 Import: Buying foreign goods/services.

 Export: Selling domestic goods/services to other countries.

Economic Globalization Terms

 FDI (Foreign Direct Investment) – When a company expands into another country.

 Outsourcing – Hiring workers from other countries for cheaper labor.