(10.13.21)
2. Free Trade: malayang kalakalan;
easier to import goods or products;
easier to export good or products
Module 1: Introduction to Globalization
(Everything has turned Global!)
3. Globalization
of
Economic
Activities: yung ginagawa ng isang
tao sa isang lugar ay maaaring gawin
din ng ibang tao kasabay niya;
collaboration
Globalization



Jim Dator, “full range of forces and factors
that are sweeping across the globe totally un
hindered, or barely hindered, by boundaries
and policies of the nation-state.”
o Happens not only overnight, but
continues to happen for a very long
period
o Unstoppable
events
that
transcends time and space
o Happens simultaneously all around
the globe
Lechner, F. and Boli, J. (2012), “the
processes by which more people across large
distance become connected in more
different ways.”
o All individuals, wherever they are
around the world, they are
connected through technological
gadgets
o No time, distance that limits
Chirico, “Globalization has turned the world
into a ‘single place’.”
o Global Village – the world now is
just a single village, all of us are
connected
o Sometimes it goes
beyond
boundaries: disregarded territories,
disregarded physical barriers,
4. Connectivity:
connected
with
borderless globe; no physical
barrier prevailing over what the
person does
5. Borderless Globe
6. A Composite Process
7. A Multi-dimensional Process
8. A Top-Down Process
9. Global State vs Global Civil Society:
matters about global issues and
matters about what is right and
wrong that some people promote
especially when there’s exploitation

Visible Economic Dimension of Globalization

Objective Bases or Dimensions of Globalization
a. ECONOMIC BASES
Characteristics:
1. Liberalization:
pagluluwag
ng
ekonomiya; decrease in or no taxes
especially from imported goods;
accessible goods because its cheap
Mother Companies (Coca-Cola, P&G,
Nestle, Unilever, Kraft, etc.)


Always present here are the big companies
(Multi-national
or
Trans-national
Companies)
They go across different country, not just
focused or based in one country
They always have presence in many
different countries that is why their
products and services differ
b. CULTURAL BASES
 Globalization had widely affected
not just the economy, but also in
the manners of living (culture)
 Consumption behavior: before it
was just based from needs and
wants; now our consumption
behavior is affected because of
hype, what we see especially the
trends (leads to problems about the
rightness or wrongness of an act)
 Korean Wave
 We are affected by social media
especially during pandemic
Divers of Globalization
 Nagtutulak sa globalisasyon
1. Technology
2. Population Pressures
(If this works, the impact of globalization on
an individual is really great)
c. POLITICAL BASES
 The more we are connected
because of globalization, the more
we understand the importance of
human rights and laws
 We also understand the importance
of promoting freedom of each and
every one, be vigilant of
government abuse
 We are more participative in the era
of globalization because of the use
of technology
 National
Leaders
are more
connected because of globalization
(10.21.21)
The buyer of such goods and services is
referred to an “importer” who is based in
the country of import, whereas the
overseas-based seller is referred to as an
“exporter.”
Module 2: Global Economy
The Global Economy
- One of the most important topics in globalization
- Discusses about how the wealth of the world is
being redistributed or distributed to the different
parts of the globe

“Import” is any good (e.g., a commodity)
or service brought in from one country to
another in a legitimate fashion, typically for
use in trade (ex. cars from Japan to Phil.)

It is a good that is brought in from another
country for sale. Import goods or services
are provided to domestic consumers by
foreign producers. An import in the
receiving country is an export to the
sending country.
- Includes the business cycles and global trade




The economy of the world!
The international exchange of goods and
services that is expressed in monetary
units of account (money)
Business cycles (expansion and recession)
Consumer confidence
Trade Balance
World Economy


Controlled progressive or industrialized
states or countries
Consists of different blocks
THE ONCE MIGHTY UNCLE SAM
- Previously, the largest trading nation



Been surpassed by China (by 2010, largest
trading nation)
Exports the most to Canada, imports (like,
everything) comes from China
There are tons of competition, loss of
American jobs
Exports vs Imports


“Exports” refers to selling goods and
services produced in the home country to
other markets (traditional exports)
Export goods or services are provided to
foreign consumers by domestic producers.
1. Trade Deficit: A nation spend more on
imports and then it earns from exports
(more imports than exports)
2. Trade Surplus: A nations earns more
exports and then it spends on imports
copyrights.
(more exports than imports)
- every state around the world would
always aim to have a trade surplus
Economic Trade War





US vs China (2020)
More trade deficit on the part of United
States
China receiving trade surplus
Trade war (Donald Trump; limit and placing
tariffs on Chinese products)
Tariffs: taxes that are being imposed on
imported brands (prices of goods go higher)
Trade War

China
Protectionism (clear manifestation) –
trying to protect your economy
(protectionist policy)
o Tariffs – taxes on imported goods
(special taxes)

Depicted as the global hub for
manufacturing
(sweatshop of the world)
(cheap raw materials; usage of different
types of products in a swift manner)
o Subsidies – come in the form of tax
credits or direct payments
(lesser expense whoever use it;
ayuda o tulong ng gobyerno)

The world’s fastest growing consumer
market
o Quotas (limits; trading quotas)

(its middle class continues to grow)
o Currency manipulation deliberate
attempt by country to lower its
currency value, making exports
cheaper and more competitive
(normally, exporters would favor a
higher dollar exchange rate; higher
value)
Countries take advantage of cheap labor in
China
(many manufactures around the world go to
China to set up their own manufacturing
centers or sweatshops)

It plays a vital role in the international
economy

Accounts for 50% of the world’s GDP
growth
(normally, importers would rather
have a lower dollar exchange rate to
buy cheaper products abroad)
Economic Performance
Economic Box

European Union
GDP (Gross Domestic Product)

The European Union



An organization of 27 European countries
(before around 28 countries)
Major trading block, combined value of
imports and exports exceed any single
country
Launched a single European currency, also
known as the Euro
The monetary value of all the finished
goods and services produced within a
country’s borders in a specific time period.
(most countries would use GDP as one of
their important economic indicators)



Location > Nationality
All income within a country regardless of
producer nationality
Excludes income from investments in other
countries
GNP (Gross National Product)

Nationality > Location


All income generated by a country’s
residents regardless of resident location
Exclude income generated by foreign
producers within country’s (borders)
IT’S A GLOBAL ECONOMY
- all our economies are intertwined or connected


Module 3: Market Integration, Regionalism &
Global Economy
Nations around the world work on political,
social, and economic conflicts together
(settle their differences/conflicts; conflicts
do not just affect the involved
parties/nation, but also the states which
are also trading with the states concerned)
(the global economy is very fragile)
Market Integration and Regionalism (requisites
for Global Economy)
MNC – Multinational Corporations
Market Integration
(big corporations producing goods and
services based in different countries; the
ones who are responsible in trying to have
fluidity in term of flow of funds and
knowledge within the international market)

International markets and flow of funds
and knowledge

We are a planet (we stand together, not
divided)

(10.21.21)
Definitions:

(it is very important we tend to notice prices
of commodities in different place or even
states would be having the same effect or
price because it means the market is
becoming more integrated)
When an individual nation prospers, all
nations prosper (and more people buy
more products, improving the global
economy even more)
- It is very important that the global economy
continues to grow
- All countries must be able to set aside their
differences in order that their economies won’t
suffer: Economic Downturns – likes of depression
or recession
Occurs when prices among different
locations or related goods follow similar
patterns over a long period of time. Group
prices often more proportionally to each
other and when this relation is very clear
among different markets it is said that the
markets are integrated. Thus, market
integration is an indicator that explains
how much different markets are related to
each other.
Regionalism

Is the theory or practice of (the people)
coordinating social, economic or political
activities within a geographical region
comprising a number of states.
(If there are different people from different
states who would try to connect their social,
economic, and political background as one,
and they consider themselves as single block
– regionalism)

On an institutional level, regionalism
involves the growth of norms, rules, and
formal
structures
through
which
coordination is brought about.

It also implies a realignment of political
identities and loyalties from the state to
the region.

The extent of regional integration may
range
from
cooperation
amongst
sovereign states on the basis of
intergovernmentalism to transfer of
authority from states to central decisionmaking bodies, in accordance with
supranationalism. (Heywood, 2011, p.482)
Market Integration

(it may strengthen or weaken other
markets; it may strengthen its own market
once it gets together or integrates it’s owns
economies)

(also has something to do, not just
integrating, but also knowing your
identities; having an identity for yourselves;
ethnicities, language)

may occur with just about any type of
related market. In some cases, the
integration within a nation may involve the
emergence of similar patterns within the
capital, stock, and financial markets, with
those trends coming together to exert a
profound influence on the economy of that
nation.
Is the expression of a common sense of
identity and purpose combined with the
creation
and
implementation
of
institutions that express a particular
identity and shape collective action within
a geographical region.
can often be a very positive situation,
especially if the merging pattern regarding
pricing is indicative of an increasingly
prosperous economy, at the same time,
assessing integration between markets
can also be a useful tool in identifying
trends that are less that desirable, and
having the chance to begin reversing those
(makes markets really competitive; if there
would be more areas that would join the
market or would integrate within that
market, all the resources, financial or raw
materials that are being produced within
that area, can now be utilized by that block
or integrated market, it becomes more
stronger; more competitive)
(important in trying to come up with market
integration; considering oneself as one
region)
Regionalism
Global Economy

World-wide economic activity between
various countries that are considered
intertwined and thus can affect other
countries negatively or positively.

important in market integration because the
market becomes one and at the same time
all the resources are channeled as well within
that region
Example:
1) European Union
“HOW WILL MARKET INTEGRATION AFFECT US?”
o is a unique economic political union
between 27 EU countries
o Single and Unified Currency: EURO
o EU’s main economic engine is the
single market. It enables most
goods, services, money and people
to move freely
(come together in order to strengthen
respective economies; weaker economies
became far better, those who have better
economies are the ones who are sustaining
those states which have weaker economies)
(in return, the weaker economies, the
resources are channeled centrally within
that market or region; it enables most good
and services to move freely around within
that region)
2) ASEAN (Association of Southeast Asian
Nations)
o Established by the Founding
Fathers (10 member states in
Southeast Asia plus 1 observer):
Indonesia, Malaysia, Philippines,
Singapore, and Thailand
(they’re still building consensus,
trying to feel each other; most of the
states in ASEAN are not fairing good
in terms of their economy, there are
only quite a few: Singapore,
Malaysia, and Thailand)
World Economy
- how important market integration
regionalism when we of world economy

Very important factor for everyone to
consider

Refers to the world-wide economy

Of all the weapons in the government’s
arsenal, monetary policy is by far the most
powerful. Unfortunately, it is also the most
imprecise.
(the economy is one of the ultimate
weapons of any country or state can put use
in order to pressure other states)

True, the government can do some fine
control with tax policy to move capital
between investments by granting
favorable tax status.

On the whole, however, governments tend
to go for large, sweeping changes by
altering
the
monetary
(economic)
landscape.
o Consensus and Cooperation
(the very reason for establishing
ASEAN; an arena wherein these
countries would be able to talk
together, cooperate, and to discuss
whether they will push through with
market integration)
o Treat of Amity and Cooperation in
Southeast Asia
and
Political Geography
(Centripetal and Centrifugal Forces)
o ASEAN Charter
- how regionalism is also being characterized into
centripetal and centrifugal force
o No single currency yet…
- you may do that, divide or unify, by using your
economy or economic policies
Centrifugal Forces
(Divide a State)








Ethnic conflict
Social injustice
Poverty
Dictatorial leadership
Religious Intolerance
Nationalism
Loss of Rights
Any other divisive force
Centripetal Forces
(Hold a State Together)









Ethnic Unity and Tolerance
Social/Economic Equity
Just and fair Legal System
Charismatic Leadership
Religious Acceptance
Nationalism
Common heritage
Common Language
Any other unifying force