The Contemporary World Chapter 1 Introduction to the Study of Globalization Chapter 1 Introduction to the Study of Globalization Introduction When the world was surprised by the birth of information technology, societies became more eager to adopt the trends of the market. People across the globe showed interest to be part of a community where connections and linkages are available. When the World Trade Organizations (WTO) was formed, economies responded quickly showing interest in this global network of countries. The same thing Nokia when it successfully penetrated the worldwide market through offering the most innovative cellular phones, millions of people were caught by this technological breakthrough. When the Asian financial crisis hit some countries in the region, economists, and governments became warier and keen in managing the domestic and international flows of money. The series of attacks in the United States on September 11, 2001 was seen as a result of western imperialism and a response of violent groups in the Middle East. What do these events and situations have in common? Are these signs of a borderless world where anything and everything could be global? Is local becoming global? The world is in a state of complexities and uncertainties. Small and big institutions and communities are affected at a higher scale by these complex phenomena. No one can accurately predict what the world would be like in the next 10 or 20 years. What happened in the late 90s and early 2000s are remarkable events have defined the future of man and its environment. Migration, economic organizations, political alliances, and the digital world are common landmarks of the global society. Networks and the formation of strong linkages will prevail over the conservative and isolationist behavior. The interconnected world economy is the forefront market of globalization. The meeting point of developed and developing economies as well as the emergence of economic institutions and organizations make everything easier and faster to hold transactions globally. Global productions are scattered everywhere, operating in countries where labor cost is cheap, and materials are available. For example, Toyota manufactures its auto parts in countries like the Philippines and Indonesia where there is high availability of cheap manpower. It offers finished and assembled products in countries like Singapore and Malaysia where there is a higher demand of cars. This kind of economic behaviors of countries shows how the cycle of economic operation for a global commodity works. This is also evident in countries in the western region where there are problems and challenges on the availability of needs and demands. The strengths of materials of a country could be experienced as weakness on the unavailability of the other economy or nation. This topic discusses the relevance of economic system in globalization. It deals on issues concerning the function of international trade, its benefits and damages. This also explains the importance of domestic and foreign policies in international trade and promotion of global economy. The topic will conclude by explaining the roles of international economic organizations in globalization. Specific Objectives: At the end of the lesson, the students should be able to: 1. Differentiate the competing conceptions of globalization 2. Identify the underlying philosophies of the varying definitions of globalization. 3. Agree on a working definition of globalization for the course. Duration: Chapter 1: 3 hours Competing Conceptions of Globalization Underlying Philosophies of the Varying Definitions of Globalization Dimensions of Globalization Reasons for Globalization Pros and Cons of Globalization Lesson Proper CHAPTER 1 – INTRODUCTION TO THE STUDY OF GLOBALIZATION 1.1 COMPETING CONCEPTIONS OF GLOBALIZATION Globalization, as a theory lies in in the works of many 19th and 20th century scholars and intelllectuals like Karl Marx, MacKinder, and Robertson who then began to introduce the term “globality”. However, it was in the 1960s and 1970s when this term gained worldwide attention (Held and McGrew,2002). In the area of academe, no single currency or definition has acquired acceptance. On the contrary, various competing interpretations emerged vying for dominance and universal recognition. To define globalization is to simply put it as a social process of reshaping and remaking the world order. Operations of social institutions transcend across territories and boundaries with the goal of expanding its reach-economic, political, and technological fibers. From the lens of Ritzer (2008), he described this phenomenon as the spread of worldwide practices, relations, consciousness, and organization of social life. The interconnectedness and social segments from macroinstitutions to the smallest sectors of the world have coincided the fabrics of globalization. In defining globalization, Justine Rosenberg argues that “globalization as a phenomenon gave rise to the interconnectedness of human society that replaced the sovereign state system with a multilateral system of global governance”. His definition centers on the process, condition, time, and age of this condition. On the other hand, Held and McGrew (2003) offer the following definition of globalization: “Globalization refers to a multidimensional set of social processes that create, multiply, stretch, and intensify worldwide social interdependencies and exchange while at the same fostering in people a growing awareness of deepening connections between the local and the distant”. The best scholarly description of globalization is provided by Manfred Steger who described the process as “the expansion and intensification of social relations and consciousness across world-time and across world-space.” Expansion refers to “both the creation of new social networks and the multiplication of existing connections that cut across traditional political, economic, cultural, and geographic boundaries.” Intensification refers to the expansion, stretching, and acceleration these networks. Not only are global connections multiplying, but they are also becoming more closely-knit and expanding their reach. 1.2 UNDERLYING PHILOSOPHIES OF THE VARYING DEFINITIONS OF GLOBALIZATION A. Realism The realists’ perspective in explaining globalization focuses on the shifting distribution of power among states (Walt, 1998 and Snyder, 2004). They explained that the core idea of dominating the world is through the employment of power. This force comes from different angles, depending, on the power availability of a nation. However, realists warn that countries may suffer and struggle to maintain its power if it will be overarched and used wrongly. In globalization, countries that have the power to dominate and control the world are those whose economies have the “powers” to affect and influence the operation worldwide. Realists argue that the reason why countries open their economies to the world is because of two contending reasons. First, financial returns of expanding markets offer new economic opportunities to the capitalist. Second, the political explanation behind globalization is best described with the application of its founders like Hans Morgenthau and Kenneth Waltz, realist-thinker John Mearsheimer and realist-doer Henry Kissinger. The continued centrality of political power and military strength are obvious forces of interdependence and realistic behavior of the more and most powerful countries. B. Liberalism Liberalism is a perspective in international relations where actors and institutions emphasize relationship and negotiations. Liberalists observe the importance of interaction and communication and focus on solving problems and conflicts affecting them. This idea is very evident in countries where democratic governance and institutions play major roles in maintaining national cohesiveness in managing domestic and international affairs. Liberal accounts describe the transformation of political-economic structures and the development of global interconnectedness in terms of the following factors: a. Spread of democracy and institutions b. Global economic ties c. International organizations C. Idealism The advent of globalization, formation of institutions, and the interplay of nations should be guided by ethical and legal standards. Idealists and constructivists hold the notion that values, and norms play pivotal roles in sustaining and reforming the process and works of individuals, groups, or nations. This theory emphasizes on the functions of ideologies, frameworks, systems, and identities in understanding globalization and international order. Its core beliefs centers on the centrality of ideas, beliefs, and collective values that shape the political and economic landscapes of the world. 1.3 DIMENSIONS OF GLOBALIZATION a. Economic globalization It refers to the mobility of people, capital, technology, goods and services internationally. It is also about how integrated countries are in the global economy. It refers to how interdependent different countries and regions have become across the world. b. Cultural globalization It refers to the transmission of ideas, meanings, and values around the world in such a way as to extend and intensify social relations. This process is marked by the common consumption of cultures that have been diffused by the internet, popular culture media, and international travel. c. Political globalization It refers to the growth of the worldwide political system, both in size and complexity. The creation and existence of the United Nations has been called one of the classic examples of political globalization. 1.4 REASONS FOR GLOBALIZATION Why do we have to globalize especially at this contemporary world? Here are the reasons: 1. Rapid shrinking of time and distance across the globe. One can easily cross the bridge going to the other side of the marketplace due to advance tools of technology than before. 2. Domestic markets are no longer rich because of many interlocking factors. 3. Companies and institutions go global to find political and economic stability which is relatively good in other countries than the country of origin. 4. To get technological and managerial know-how of other countries due to their advancement in science and technology, education, health, and other fields of discipline. 5. To reduce high transportation costs if one goes globally using the advance tools of communication and information. 6. To be close to raw materials and to markets of their finished products which are not available in the country of origin. 1.5 PROS AND CONS OF GLOBALIZATION Pros of Globalization 1. It encourages free trade. Without borders in place, consumers can purchase items from anywhere in the world at a reduced cost. 2. More trade means the potential for more jobs. When there are fewer barriers in place to purchase items, then consumers will generally purchase more things. This creates the foundation that businesses need to create more jobs. 3. Open borders mean more opportunities to develop poor areas of the world. There are many nations in the world today that are in a state of entry-level industrialization. Poverty is a feature in many of these developing countries. Through the process of globalization, the removal of borders allows the people in these areas to experience greater prosperity because each area gains the ability to access what they need. 4. It allows for open lines of communication. When borders are removed, people have the ability to communicate with one another more freely. There is a greater intermingling of cultures, which allows people to have a greater perspective about the world. Cons of Globalization 1. It generally makes the rich become rich and the poor to become mired in poverty. This means the rich can access what they want or need to become richer, but the poor get trapped in poverty because they don’t have the means to access success. 2. Jobs get transferred to lower-cost areas. Jobs can be created through globalism, but they tend to be created in the areas where labor costs are the cheapest. 3. It creates a political system where the biggest and the richest have influence. The biggest businesses and wealthiest people could hoard global resources for themselves through whatever government was put into place, enhancing the social inequalities that are already being seen on smaller scales. 4. Diseases travel faster in a world that is globalized. When people stay within their own regions, there are fewer problems with communicable diseases. If there were no borders and people could travel freely to wherever they wished to go, this issue would cause even the most remote parts of the world to be exposed to potentially deadly health concerns. 5. It could have a negative impact on the environment. Let’s say that production levels increase because everyone sees a boost in their economic circumstances. This would potentially increase pollution levels that could acidify the air, the ocean, and cause more issues with global warming. References Deocampo, Felix Jr. R., Ramos, Bernardo F., and Llonora, R. L. (2019). Globalization in Contemporary World. Plaridel, Bulacan: St. Andrew Publishing House Lisandro E. Claudio and Patricio N. Abinales. (2018). The Contemporary World. Quezon City: C & E Publishing, Inc. Manfred Steger, Paul Battersby, and Joseph M. Siracusa, eds. (2014). The SAGE Handbook of Globalization. Two vols. 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