THE CONTEMPORARY WORLD MODULE 1: WHAT IS CONTEMPORARY WORLD? LESSON 1: Introducing to Globalization WHAT IS GLOBALIZATION? Closely connected and interdependent, growing interdependence. Social media as a tool for communication globally. SHALMALI GUTTAL (2007) defined that globalization as the “process of interaction and integration among people, companies and governments worldwide. THE BENEFITS OF GLOBALIZATION More international trade More wealth in the world Improve living standards Increased creativity and innovation More goods and services generally available at lower prices. TYPES OF GLOBALIZATION ECONOMIC GLOBALIZATION SOCIAL GLOBALIZATION POLITICAL GLOBALIZATION THEORIES OF GLOBALIZATION Theory of Liberalism- derived from human drives to maximize material wellbeing and to exercise basic freedoms. Theory of Political Realism- is a view of international politics that stresses its competitive and conflictual side. -it takes assumption that power is (or ought to be) the primary end of political action. Theory of Marxism- concerned with modes of production, social exploitation through unjust distribution and social emancipation through capitalism. Theory of Constructivism- our idea is constructed by experience. Theory of Postmodernism- this dominant structure of knowledge in modern society is ‘rationalism’ Theory of Feminism- emphasize on social construction of masculinity and feminity. Theory of Trans-formationalism-emphasized that all changes or transform made happen due to globalization. Theory of Eclecticism- implied extensive sources of ideology. MODULE 1: LESSON 2: ESTABLISHING THE NATIONS War - is a conflict between political entities through a specified period that involves massive hostilities and destructive consequences. Thirty Years of War- one of the most destructive conflicts in the history of Europe. On October 24, 1648- the Treaty of Westphalia was signed, marking the end of the Thirty Years’ War. Overview of the Thirty Years War - the war started from 1618- 1648. - it is a series of wars fought by various nations for various reasons, including religious, dynastic, territorial, and commercial rivalries. - it happened on EUROPE. - the war is conventionally begun in 1618, when the Holy Roman emperor Ferdinand II , in his role as king of Bohemia, attempted to impose Roman Catholic on their Protestant subjects in Bohemia. -- Ferdinand II, Holy Roman Emperor and King of Bohemia was strongly Catholic, a major reason for the war. - Historically with over 8 million casualties. - the war resolved this issue through the Peace of Westphalia and ensured peace throughout Europe. Sovereignty- means a supreme power or authority. - a self - governing state. What is Nation- State? Is a system of organization defined by geography, politics and culture. Are a groups of people with a common heritage and culture who are also united under a common government. RESEARCH: What makes globalization contemporary The effects of globalization in our country The effect if there is calamity when it comes to globalization Nation-State: a sovereign state in which the cultural borders of a nation match the borders of the state. Nation-states retain much of the same politics of nations, such as being limited and imagined. However, the nation also has a sovereign territory. It can manage its own affairs without having to accommodate different nations within its borders. Use the State as an instrument of national unity, in economic, social and cultural life. Their territory is considered semi-sacred and non-transferable. Territorially bounded sovereign polity, or state that is ruled in the name of community of citizens who identify themselves as a nation. If a nation lacks its own state, it is not a nation-state. STATE – refers to a country and its government. NATION- is a cultural and ethnic entity. Module 2: Lesson 1 Global Governance- roughly defined, is to provide global public goods, particularly peace and security, justice and mediation systems for conflict, functioning markets and unified standards for trade and industry. United Nations- leading institution in charge of global governance. - It was founded in 1945, in the wake of the World War II, to prevent future conflicts. Research the secretary of UNITED NATION Anthony Smith, one of the most influential scholars of nationstates and nationalism, argued that a state is a nation-state only if and when a single ethnic and cultural population inhabits the boundaries of a state, and the boundaries of that state are coextensive with the boundaries of that ethnic and cultural population. Core Principles of Global Governance I. Common but differentiated responsibilities and respective capacities. - Recognizing differences among countries in terms of their contribution and historical responsibilities in generating common problems, in order to address shared challenges. II. Subsidiarity – issues ought to be addressed at the lowest level capable of addressing them. III. Inclusiveness , transparency, accountability - Global governance institutions need to be representative of, and accountable to, the entire global community, while decision-making procedures need to be democratic, inclusive and transparent. IV. Coherence- global rules and processes need to rest on comprehensive approaches, including the assessment of possible trade-offs, so that actions in different areas will not undermine or disrupt one another. V. Responsible Sovereignty- recognizes that policy cooperation is the best way to achieve national interests in global public domain. It also requires Governments and States to be fully respectful of the sovereignty of other nations so as to fulfil agreed policy outcomes. ROLE OF THE GOVERNMENT The creation of new infrastructure and other facilities to attract foreign investment. The ability of governments to prevent or reduce financial crisis. Strengthening banking transactions. Working with developing country governments to help establish more stringent labor. Protecting domestic infant-industries. Comparative Politics- seeks to understand how states work by comparing them to one another. Comparative advantage- is based on unrealistic assumptions such as constant costs of production, zero transport costs, and no barriers to trade. Lesson 2: Types of Protection/Import Barriers Tariffs- the reduction of trade barriers and import tariffs. Quotas- place a physical restriction on the amount of goods that can be imposed. Subsidies – grants given to domestic producers artificially lower their production costs. Global actors- refers to any social structure which is able to act and influence and engage in the global or international system. These are the specific actors International economic and financial organizations International government organizations Media Multilateral development banks Nation-states Research on the terms of trade Lesson 3: Market Integration According to Faminow and Benson ( 1990) market integration are those were prices are determined interdependently; which is assumed to mean that price change in one market affects the prices in other market. Types of market integration 1. Backward vertical integration- involves acquiring a business operating earlier in the supply chain. 2. Conglomerate integration- involves the combination of firms that are involved in unrelated business activities. 3. Forward vertical integration- involves acquiring a business further up in the supply chain. 4. Horizontal integration- hence, businesses in the same industry and which operates at the same stage of the production process are combined.