WELCOME TO THE CONTEMPORARY WORLD  Financescape

 Ideoscape
DEFINITIONS
 Technoscape
 Academic Scholars  Mediascape
 Political Scientist  Ethnoscape
 Sociologist
Identify the Scapes - Appadurai
 Economist
 Anthropologist 1. “the expansion of a global political system....” –
William Thompson, 2007
Academic Scholars
2. “It is a transmission of ideas, meaning, values by
 Expansion and intensification of social relations distant methodologies...” – Sarthak Aditya,
and consciousness across world time and across 2006
world space 3. ” Globalization is the increasing liquidity and the
- Manfred Steger growing multidirectional flows of people...”
– George Ritzer & Paul Dean, 2010
Political Scientist 4. “It is the increasing economic integration...”
 the expansion of a global political system, and – Rakesh Roshi, 2009
its institutions, in which inter-regional 5. “Globalization is a contemporary type of
transactions are managed colonization...”– Martin Khor,1995
- William Thompson “IT IS A PROCESS AND CONDITIONTHAT INVOLVES
INCREASING INTERCONNECTEDNESSOF DIFFERENT
 A challenge to the nation-state PARTS OF THE WORLD THROUGH
 Emergence of corporations COMMONPROCESSES OF ECONOMIC, POLITICAL,
 Strengths of regional blocks and emergence of ENVIRONMENTAL, AND CULTURAL CHANGES.”
global political norms
GLOBALIZATION
Sociologist
THREE MAIN ASPECTS OF GLOBALIZATION
 ongoing process that involves interconnected
changes in the economic, cultural, social, and
political spheres of society
GOODS AND • TRADE
- Nicki Lisa Cole SERVICES • SKILLS/PROFESSION

Economist
• IMMEGRATION/CULTURE/
PEOPLE • LABOR
 It is the increasing economic integration and
interdependence of national, regional, and local
economies across the world through an • MONEY
intensification of cross-border movement of CAPITAL • INVESTMENT
goods, services, technologies and capital.
- Rakesh Roshi

Anthropologist
2 BASIC THEORIES OF GLOBALIZATION
 Focused on kinds of Globalization...which
1. THEORY OF LIBERALISM
occurs on multiple and intersecting dimensions
- Capitalism/Neoliberalism
of integration-SCAPES
2. THEORY OF MARXISM
- Arjun Appadurai
 1. Liberalism or Free Market Economy  Most people see speedy travel, mass
 Economic questions are answered by individual communications and quick dissemination of
buyers and sellers. information through the Internet as benefits of
 Supply and demand influence economy globalization.
 People act out of self interest; motive for profit
DISADVANTAGES OF GLOBALIZATION
(money) drives the economy
 Also known as FREE ENTERPRISE or CAPITALISM  It creates problem for developed countries is
that jobs are lost and transferred to lower cost
Examples: The United States, Wester, Europe, Japan,
countries.
Philippines
 Globalization has led to exploitation of labor.
1. Marxism or Command Economy Prisoners and child workers are used to work in
 The government answers the basic economic inhumane conditions. Safety standards are
questions ignored to produce cheap goods. There is also
 Advantages: able to act quickly in emergencies, an increase in human trafficking.
provide for all people equally  Multinational corporations, which were
 Disadvantages: Inefficient, no incentive to work previously restricted to commercial activities,
hard or be creative are increasingly influencing political decisions.
 The general complaint about globalization is
Example: Communist Countries (China, Vietnam, North
that it has made the rich richer while making
Korea, former Soviet Union, Cuba)
the non-rich poorer.
CAN WE USE BOTH OF THESE BASIC THEORIES AT THE  Some experts think that globalization is also
SAME TIME? leading to the incursion of communicable
diseases. Deadly diseases like HIV/AIDS are
YES being spread by travelers to the remotest
1. Government regulation of some business corners of the globe.
practices  Due to massive needs of transportations
Ex. Wages, labor hours, safety practice everyday our ecological health/environment is
2. Government limits certain choices compromised.
Ex. Cannot buy or produce certain STRUCTURES OF GLOBALIZATION
goods/services
3. Government provides aid to the needy  GLOBAL ECONOMY
Ex. Medicare, Medicaid, welfare  MARKET INTEGRATION
 GLOBAL INTERSTATE
ADVANTAGES AND DISADVANTAGES OF
 CONTEMPORARY GLOBAL GOVERNANCE
GLOBALIZATION
CONCLUSION
ADVANTAGES OF GLOBALIZATION
 Treat Parochialism
 Free trade reduce barriers such as tariffs, value
 Globalism perspective (Steger)
added taxes, subsidies, and other barriers
between nations.  View our society differently
 It promotes global economic growth; creates  Filipino’s increasingly interacting
jobs, makes companies more competitive, and with the world.
lowers prices for consumers.  OFW 6,092/day in 2015
 Competition between countries is supposed to  Internet, affordability of travel, presence of
drive prices down. MNC’s
 There is cultural intermingling and each country
is learning more about other cultures.
 Labor can move from country to country to
market their skills.
GLOBALIZATION

1. This perspective or outlook is too limited to 6. Manfred Steger defined Globalization as

his/her own immediate community or merely Expansion and intensification of social
concerned his/her family. Narrow minded to relations and consciousness across world time
close minded are the attributes of this idea and across world space." What he meant
which must cure by the help of the course about EXPANSION?
Contemporary World. A. The stretching and acceleration of networks-
A. Blind follower syndrome hence development.
B. Parochialism B. An act of spreading the globalization of ideas.
C. Exclusivity C. All of the choices are correct.
D. Fanaticism D. Creation of social networks and multiplication
of it.
2. Evaluate the following statements: 7. Identify the SCAPES where the below
A. The study of CW develops a sense of statement belong with; Silk route trading
nationalism and love for country hence create during Han dynasty.
world peace. A. Ideoscape
B. The Study of CW would help us to learn how B. Financescape
to solve national problems by looking into C. Ethnoscape
global issues and concerns in various D. Technoscape
perspectives. 8. Manfred Steger defined Globalization as
A. First statement is false and second statement is Expansion and intensification of social
true. relations and consciousness across world time
B. Both statements A & B are True. and across world space." What he meant
C. First statement is true and second statement is about INTENSIFICATION?
false. A. All of the choices are correct.
D. Both statements A& B are False. B. Creation of social networks and multiplication
of it.
3. Which of the following is INCORRECT about C. The stretching and acceleration of networks-
Globalism of Steger? hence development.
A. Ideology among powerful people D. An act of spreading the globalization of ideas.
B. Globalization spreads freedom and democracy 9. Evaluate the Statement A and B:
C. Ideology among developing countries A. Globalization helps us to appreciate and value
D. Ideology that globalization or global integration our unique identity as Flipinos.
of economic markets is beneficial for everyone B. Globalization helps us to learn how to
4. The following are the Structures of conserve and advance our own posterity.
Globalization EXCEPT; A. Both statements A & B are True.
A. Market Integration B. First statement is true and second statement is
B. Global Economy false.
C. Global State C. First statement is false and second statement is
D. Global Governance true.
5. Who among the following scholars/historians D. Both statements A& B are False.
mentioned that GALLEON TRADE is the 10. Identify the SCAPES where the below
precursor of Globalization? statement belong with;Gold standard by the
A. Steger and Thompson Int’l monetary conference.
B. All of the choices are correct. A. Ideoscape
C. Giraldez and Steger B. Financescape
D. Giraldez and Flynn C. Mediascape
D. Ethnoscape
E. Technoscape
CHAPTER – 2  Trade is the concept of exchanging goods and
services between two people or entities.
THE GLOBAL ECONOMYINSTRUCTOR: THE GLOBAL
International trade is then the concept of this
ECONOMYINSTRUCTOR:
exchange between people or entities in two
ECONOMIC GLOBALIZATION different countries.
 People or entities trade because they believe
 The International Monetary Fund (IMF) defines that they benefit from the exchange. They may
it as ahistorical process representing the result need or want the goods or services.
of human innovation and technological  This type of trade gives rise to a world
progress. economy, in which prices, or supply and
 What is the IMF? demand, affect and are affected by global
 An organization of 189 countries working to events.
foster global monetary cooperation, secure  Global trade allows countries to use their
financial stability, facilitate international trade, resources—whether labor, technology or
promote high employment and sustainable capital— more efficiently.
economic growth, and reduce poverty around  Because countries are endowed with different
the world. assets and natural resources (land, labor, capital
 The United Nations (UN) defines it as the and technology), some countries may produce
increasing interdependence of world economies the same good more efficiently and therefore
as a result of the growing scale of cross-border sell it more cheaply than other countries. If a
trade of commodities and services, flow of country cannot efficiently produce an item, it
international capital and wide and rapid spread can obtain the item by trading with another
of technologies country that can.
 What is the UN?
 Maintaining worldwide peace and security. INTERNATIONAL TRADING SYSTEMS
Developing relations among nations. Fostering
 The oldest known international trade system is
cooperation between nations in order to solve
theSilk Road.
economic, social, cultural, or humanitarian
 It was an ancient network of trading routes
international problems.
formalized during China’s Han Dynasty. It
ECONOMIC GLOBALIZATION helped link international commerce between
130 BCE and 1453 CE.
 A Different View (from Global Policy Forum)  The "Silk Road” is not just a single road, but a
 Advances in communication and transportation network of different routes throughout the
technology, combined with free-market world; many historians favored referring to it as
ideology, have given goods, services, and capital “Silk Routes.”
unprecedented mobility.  German geographer & traveler Ferdinand von
 Northern countries want to open world markets Richthofen coined the terms Seidentrasse (silk
to their goods and take advantage of abundant, road) and Seidentrassen (silk routes) in 1877.
cheap labor in the South, policies often  Marco Polo (1254 - 1324) described them in
 supported by Southern elites. They use depth in his stories in the “Book of the Marvels
international financial institutions and regional of the World,” written by Rustichello da Pisa,
trade agreements to compel poor countries to while they were imprisoned in Genoa, Italy.
"integrate" by reducing tariffs, privatizing state  Primary goods traded on the Silk Road:
enterprises, and relaxing environmental and - From East to West:
labor standards. This results to enlarged profits  Silk, Tea, Dyes, Precious Stones, Chinaware,
for investors but offered pittances to laborers, Porcelain, Cinnamon, Ginger, Bronze and Gold
provoking a strong backlash from civil society. Artifacts, Medicines, Perfume, Ivory, Rice,
WHAT IS TRADE AND WHY DO DIFFERENT ECONOMIES Paper, Gunpowder
TRADE? - From West to East:
  Slaves, Horses, Saddles and Riding Track,  This theory stated that a country’s wealth was
Grapes, Domestic and Exotic Animals such as determined by the amount of its gold and silver
Dogs and Cats, Honey, Fruits, Glassware, holdings. In its simplest sense, mercantilists
Woolen Blankets, Rugs and Carpets, Textiles, believed that a country should increase its
Gold and Silver, Camels, Weapons and Armor holdings of gold and silver by promoting exports
and discouraging imports.
How the Silk Road affected the rest of the world
The objective of each country is to have a trade surplus
 Wider Economic Impact
and avoid a trade deficit.
 People engaged in silk production rather than
doing anything else. As demand for silk grew,  Surplus = Exports > Imports
more and more people devoted their lives to  Deficit = Exports < Imports
silk production.  The 1500s marked the rise of new nation-states,
 Promulgation of Ideas whose rulers wanted to strengthen their
 The Silk Road was the primary route of nations by building larger armies and national
Buddhism. The belief was starting to dwindle in institutions. By increasing exports and trade,
India but through contacts with other cultures these rulers were able to amass more gold and
and traditions, Buddhism grew and flourished wealth for their countries.
and became one of the biggest religious  One way that many of these new nations
traditions of the world. promoted exports was to impose restrictions on
 Measles, Smallpox and The Bubonic imports. This strategy is called protectionism
Plague/Black Death and is still used today.
 This last plague resulted in the largest
THE EARLY 1900S
decimation of the human population in history,
wiping out nearly half of the Europeans in a  The Gold Standard
four-year period.  The Gold Standard was introduced, ledby the
 The network was used regularly from 130 BCE, UK, to counter the restrictive and isolating
when the Han Dynasty officially opened trade mercantilist ideology.
with the west, to 1453 CE, when the Ottoman  The US, the rest of Europe, and many countries
Empire boycotted trade with the west and followed suit because they all wanted a
closed the routes. standardized transaction in the booming world
 The Counqueror Tamerlane took over the silk trade market.
routes and kept them open after the collapse of  But The Gold Standard was still restrictive,
the Mongol Empire, until his death in 1405 and because it compelled countries to back their
anarchy arose; routes to China were closed. currencies with gold reserves.
China then closed its borders to foreigners.  In the height of the WW1, countries depleted
 Silk Road’s closure initiated The Age of their gold reserves and suspended the gold
Discovery — Europeans taking to the sea and standard to print more money to fund military
charting new water routes to replace over-land involvement.
trade. This impacted different cultures all over  But The Gold Standard was still restrictive,
the world as Europeans claimed lands in the because it compelled countries to back their
name of God and their country, and influenced currencies with gold reserves.
others by introducing Western Culture and  In the height of the WW1, countries depleted
religion. their gold reserves and suspended the gold
standard to print more money to fund military
Mercantilism
involvement.
 Developed in the sixteenth century,  Printing too much money during the war
mercantilism was one of the earliest efforts to caused a hyperinflation. Countries then realized
develop an economic theory. the importance of tying their currency with the
value of gold.
The Great Depression Keynesian Economics

 “The Roaring 20s” - a period between 1920 and  Developed by British economist John Maynard
1929 when the US economy expanded rapidly Keynes in an attempt to understand the Great
and the nation’s total wealth more than Depression.
doubled.  Keynes advocated for increased government
 New York Stock Exchange was filled with expenditures and lower taxes to stimulate
speculations; a place where the highest to the demand and pull the global economy out of the
lowest classes in the society poured their depression. He also rejected the concept of the
money into stocks. Invisible Hand.
 The problem with stocks was that they were  Keynesian Economics focuses on using active
overvalued; unemployment was high, government policy to manage aggregate
production was low, consumer debt was demand in order to address or prevent
proliferating, agriculture sector was struggling economic recessions.
due to drought and falling food prices, and  Highly critical of classical economic arguments
banks had an excess of loans that could not be that natural economic forces and incentives
liquidated. would be sufficient to help the economy
 Nonetheless, stock prices continued to soar and recover.
had reached “stratospheric” levels that could
The End of the Great Depression
not be justified by future earnings.
 October 24, 1929 - known as “Black Thursday,”  When Franklin D. Roosevelt was elected into
the stock market crashed because nervous office, he signed the “New Deal” within 100
investors began selling overpriced stocks en days, creating 42 new agencies designed to
masse. A record 12 million shares were traded stimulate agricultural and industrial production,
that day. create jobs, allow unionization, and provide
 October 29, 1949 - known as “Black Tuesday,” unemployment insurance, which would
16 million shares were traded after another stimulate recovery.
wave of panic. Millions of shares ended up  Although some argue that the WW2 ended the
being worthless and were wiped out Great Depression because defense
completely. manufacturing geared up and factories went to
 Consumers lost confidence, spending dropped, full production mode, providing more and more
money and gold were hoarded, productions jobs.
slowed down, unemployment went up, wages
fell, half of America’s banks closed. Fiat Currencies
 The Great Depression lasted for 10 years with  The word "fiat" comes from the Latin and is
its lowest point in 1933, with unemployment often translated as the decree "it shall be" or
rising from 3 to 25% of the total population. "let it be done.”
 Fiat money is government-issued currency that
The Great Depression and the Gold Standard is not backed by a physical commodity, such as
gold or silver. The value of fiat money is derived
 Some economists argue that the Gold Standard from the relationship between supply and
caused the Great Depression largely, because it demand and the stability of the issuing
limited the amount of circulating money, government, rather than the worth of a
therefore reducing investments, demand, and commodity backing it. Most modern paper
consumption. currencies are fiat currencies.

The Bretton Woods System

 The Bretton Woods agreement was created in a

1944 conference of all of the WW2 Allied
 nations. It took place in Bretton Woods, New  The looseness of the term “neoliberalism”
Hampshire.  Market Fundamentalism
 The 1944 Bretton Woods agreement  Monopoly and Monopsony Power
established a new global monetary system. It  Deregulation
replaced the gold standard with the USD as the  “One Size Fits All” Concept
global currency. This establish the US as a  Inequality
dominant power in the world economy.  The looseness of the term “neoliberalism”
 The agreement created the International Bank  Economists and critics still argue on the exact
for Reconstruction and Development (IBRD aka definition of “neoliberalism”.
World Bank) and the International Monetary  Market Fundamentalism
Fund (IMF).  Critics argue that advocating the use of free
markets in areas, such as health and education
THE CONTEMPORARY WORLD
is misplaced because by nature these are public
 The Bretton Woods System services, which are not subject to the same
 The IBRD was responsible for reconstruction profit motivation.
projects after the war since many of the world’s
The Challenges to Neoliberalism
cities were left in shambles. The IMF was the
global lender of last resort to prevent countries  Monopoly and Monopsony Power
from spiraling into credit crises.  A broadly neoliberal policy has seen a widening
 General Agreement on Trade and Tariffs inequality of both wealth and income in the
(GATT) Western world. This is due to several factors,
 After the Bretton Woods, more countries such as skilled workers in a position to
committed to further global economic command higher wages, but low-skilled workers
integration through the GATT. in flexible labor markets more likely to see
 The purpose of GATT was to eliminate harmful stagnant wages.
trade protectionism, tariffs, and other  Deregulation
hindrances to international trade. GATT  Deregulation had not necessarily helped
restored economic health to the world after the economic development, but instead have
devastation of the depression and WW2. contributed to increased financial instability,
which has caused wider economic shocks.
Neoliberalism
 “One Size Fits All” Concept
 Neoliberalism is a policy model—bridging  An important problem for neoliberalism is that
politics, social studies, and economics—that policies which may work in one country doesn’t
seeks to transfer control of economic factors to necessarily work in all countries.
the private sector from the public sector. It  Inequality
tends towards free-market capitalism and away  Neoliberal policies tend to increase inequality.
from government spending, regulation, and But, this inequality can harm long-term growth
public ownership. prospects. Those with low-income have limited
 Neoliberalism ≠ Liberalism spending power and those who become richer
 It is often associated with Adam Smith’s laissez have a higher marginal propensity to save, so
faire economics, the policy that prescribes a wealth doesn’t ‘trickle down’ as some hope.
minimal amount of government interference in
Neoliberalism and The Stagflation of the 1970s
the economic issues of individuals and society.
This theory is characterized by the belief that Vietnam War
continued economic growth will lead to human
Yom Kippur War
progress, a confidence in free markets, and an
emphasis on limited state interference.  In the early 1970s, the post-World War II
economic boom began to wane, due to
The Challenges to Neoliberalism
increased international competition, the
 expense of the Vietnam War, and the decline of  Imports allow foreign competition to reduce
manufacturing jobs. prices for consumers.
 Unemployment rates rose, while a combination  It also gives shoppers a wider variety of goods
of price increases and wage stagnation led to a and services.
period of economic doldrums known as  Promotes dynamism and innovation within an
stagflation. economy.

Stagflation Disadvantages and Issues with International Trade

 slow economic growth occurring simultaneously  Sweatshops

with high rates of inflation.  Child Labor
 The crisis was compounded when oil-rich  Embargoes
nations in the Middle East declared an embargo  Reduces jobs in domestic industries that can't
against the United States in retaliation for its compete on a global scale.
support of Israel.  It also leads to job outsourcing.
 Embargo - A ban on trade.  Countries with traditional economic systems
will be affected immensely.
Neoliberalism and the 2008 Financial Crisis
Economic Globalization Today
 The Great Recession—sometimes referred to as
the 2008 Recession—in the United States and  Exports make national economies grow at
Western Europe has been linked to the so- present.
called “subprime mortgage crisis.”  In the past, it was more of the advanced nations
 Subprime mortgages are home loans granted to who benefited from free trade of industrial and
borrowers with poor credit histories. Their agricultural products.
home loans are considered high-risk loans.  Now, it’s more of the developing countries such
 With the housing boom in the United States in as Philippines, India, China, Brazil, and
the early to mid-2000s, mortgage lenders Argentina.
seeking to capitalize on rising home prices were  Right now, Economic Globalization is still an
less restrictive in terms of the types of uneven process, with some benefiting more
borrowers they approved for loans. And as than the others.
housing prices continued to rise in North  Economics is not the lone actor in globalization,
America and Western Europe, other financial instead, it is just one of the forces driving it.
institutions acquired thousands of these risky
mortgages in bulk
 In numbers:
 US economy shrank by 3.9%▸ 8.8 Million jobs
lost in the US alone
 $16 Trillion housing net worth stock market
plunge
 7.3 Million lost their homes from 2007-2014

Benefits of International Trade

 Exports create jobs and boost economic growth.

 They give domestic companies more experience
in producing for foreign markets. Over time,
companies gain a competitive advantage in
global trade.
 Trade also makes companies more efficient.
CHAPTER - II 6. Which of the following is considered as high-
risk mortgages?
1. Bretton Woods: John Maynard Keynes ::
a) Prime mortgage
Washington Consensus: ________
b) Subprime mortgage
a) Adam Smith
c) All of the choices are correct
b) Neoliberalist
d) Interest-free mortgage
c) Friedrich Engels
7. This specific system is the results of the
d) Milton Friedman
agreement replacing gold standard with US
dollar as a currency.
2. How the Neoliberalism and Washington
a) Bretton wood system
consensus policy negatively affected the U.S.
b) Global Keynesianism
financial institutions which resulted to global
c) Fiat currency
financial crisis?
d) Washington consensus
a) U.S. gov’t allowed foreign banking investors.
b) U.S. gov’t adopted mortgage-backed securities.
8. This key factor of economic globalization
c) U.S. gov’t removed several banking restrictions.
explained that the drastic and more complex
d) U.S. gov’t privatized all banking institutions.
products and services were introduced in the
markets. Great manifestations of it are the
3. Which of the following practices made the
millions of music albums, movies or ebooks
Russian economy controlled by few wealthy
which could be purchased for every second by
and powerful individuals after the post-
the people in the modern world.
communist Russia?
a) The increase of speed and frequency of trading.
a) Washington policy
b) The increase of global trading.
b) Protectionism
c) The increasing integration of economies.
c) All of the choices are correct
d) All of the choices are correct.
d) Privatization policy
9. Who among the following economists
4. This specific system is the results of the
challenged Keynesianism and took advantage
International monetary conference in Paris.
of economic disturbance to criticize the same?
a) Bretton wood system
a) Adam Smith
b) Global Keynesianism
b) Milton Friedman
c) Gold standard
c) Friedrich Engels
d) Fiat currency
d) Rakesh Roshi

5. This is an economic strategy to shield the

10. The figures provided by the UN Conference on
nation’s product by limiting or imposing higher
Trade and development on the direct foreign
tariffs to the exported product. The best
investments across the world was US$57
example of this practice is when Japan
billion in 1982 to US$ 1.76 trillion in 2015. This
discouraged the importation of rice to their
is a specific example of what key factor of
economy.
economic globalization?
a) Washington policy
a) The increase of speed and frequency of trading.
b) Protectionism
b) The increasing integration of economies.
c) Privatization policy
c) The increase of global trading.
d) Shock therapy
d) All of the choices are correct.
11. Which of the following organization function 16. All of the following are correct about the
as lender of last resort and established under Mortgage-backed securities (MBS) EXCEPT;
Bretton Woods. a) All of the choices are correct.
a) IMF b) MBS is a combination of different mortgages
b) World Bank being sold as one package.
c) WTO c) MBS is a form of investment related to housing
d) GATT loans.
d) MBS is the process of buying and selling houses
12. The IMF called for immediate privatization of for investment purposes.
gov’t controlled corporations and industries of
this country. 17. Under the Bretton Woods system the
a) United Kingdom following are correct except;
b) United States a) Gov’t made the consumption of goods and
c) China services reduced hence prices follows.
d) Russia b) Gov’t made the demand/consumption
increased because of this system.
13. Which of the following is correct in the c) Gov’t action resulted to increase of prices hence
principle of Global Keynesianism in 1944? increased of companies’ revenue.
a) Gov’t should provide autonomy to the d) Gov’t poured more money to their economy.
companies.
b) Gov’t should decrease its expenditures by the 18. Evaluate the statement below:
help of IMF and World Bank. Silk trading as an ancient trade network that
c) Gov’t should lower taxes and its expenditures. traverses from Asia to Europe is considered as
d) Gov’t should actively manage their economy. Globalization.
a) True, because globalization started with the
14. What was the Washington consensus’ network of trading across the world.
projected as an advantage of privatization of b) False, because it merely pertains to trading
gov’t owned-controlled corporations and and not with other aspects of society.
services? c) True, because it spread their productions from
a) Oligarch controlled corporations will die. China across the different countries.
b) All of the choices are correct. d) False, because it failed to reach other
c) Efficiency of services and corporate continents by having no ocean routes.
administration.
d) Minimal government spending to reduce debt. 19. This was the Americas’ first connection to the
Asian trading route according to Flynn and
15. The negative effect of neoliberalism was seen Giraldez.
during the 2008 Global Financial Crisis where a a) Washington consensus
major banking institutions in the U.S. affected b) During World War II
the world economy. Which of the following is c) Bretton woods
the main caused of this crisis according to the d) Galleon Trade
economists tracing back as early as 1980’s?
a) The subprime mortgage entered by the various 20. According to this economist, economic crises
banking firms in the United States. occur not when the economy does not have
b) The banking institutions who aggressively revenue, but when the money is not being
formulated a variety of investments. spent.
c) The autonomy provided by the government to - John Maynard Keynes
all banking institutions in creating investment.
d) The Mortgage-backed securities introduced by
the different banking institutions like Lehman.
21. Washington Consensus advocates and
persuaded the governments that the way to
progress is to reduce tariffs and open their
market economies. Which among the
following classifications of countries became
the target of this advocacy?
a) Developing countries
b) Underdeveloped countries
c) All of the choices are correct
d) Developed countries

22. This policy is also known as a rapid change

from command economy to mixed economy.
a) Shock therapy
b) Mortgage-backed Securities
c) Washington policy
d) Privatization policy

23. Which of the following is the primary

characteristics of Mercantilism?
a) The government intervention.
b) Greater number of productions.
c) All of the choices are correct.
d) Presence of market competition.

24. Silk Route is known as the oldest international

trading route in the world. Why the said route
called after the said fiber?
a) The road is the network of pathways and was
the best producer of silk.
b) The people in Han dynasty encouraged the silk
productions from China to Europe.
c) The highly valued product being traded was silk.
d) The Chinese Han dynasty name after their
nation’s fiber.

25. When was the beginning of globalization age

according to the Historians and scholars
Giraldez and Flynn?
a) when it produces tremendous impacts on all
trading partners.
b) All of the choices are correct.
c) when the populated continents began to
exchange products continuously.
d) when there were direct and indirect exchanges
of products.
CHAPTER - III D. All of the choices are correct
6. The motto of this event are Liberty, Equality
1. The following organizations created under the
and Fraternity (LEF+).
ideology of socialist internationalism EXCEPT;
A. World war II
A. Socialist international
B. 30 years war
B. Communist international
C. Prussia revolution
C. Union of Soviet Socialist Republics
D. French revolution
D. Axis powers
7. The “Great powers” in Europe intended to
2. Which of the following statements conform
reestablished the monarchial power,
with the idea that “Not all nations are states
hereditary, and religious privileges. Which of
and not all states are nations”?
the following alliances related with this
A. Nations are States and States are nations.
mission?
B. State can form to a nation while nation can
A. Napoleonic mission
form to a state.
B. Axis powers
C. All states are nations hence all nations are
C. Allied powers
states.
D. Socialist International
D. States can have several nations and vice versa.
E. Concert of Europe

3. Evaluate the following statements (United

8. This Treaty was signed to end the 1618-1648
Nations):
war.
I. The U.N. always has supreme authority to
- Treaty of Westphalian
intervene in military actions.
II. The U.N. functions primarily due to voluntary
9. Which of the following is not the outcome of
cooperation of nation-states.
interstate relations?
A. Both statements A& B are True.
A. The creation of world government that has
B. First statement (A) is false and second
jurisdiction over global military powers.
statement (B) is true.
B. All choices are the results of interstate systems.
C. First statement (A) is true and second
C. Formulated international integration of political
statement (B) is false.
systems
D. Both statements A& B are False.
D. There was show of power through coercion of
ideologies among states.
4. Evaluate the following statements:
I. Liberal Internationalism advocates the
10. "WHEN WORKERS AND THEIR
establishment of world government would
ORGANIZATIONS TAKE THE SIDE OF THEIR
prevent conflict among states.
COUNTRIES INSTEAD OF EACH OTHER, THEIR
II. Liberal internationalism perspective of global
LONG TERM INTERESTS ARE COMPROMISED"
government came from Jeremy Bentham.
- Who among the following proponents of
A. Both statements A & B are True.
Socialist internationalism created this
B. Both statements A& B are False.
idea?
C. First statement (A) is true and second
A. Mikhail Gorbachev
statement (B) is false.
B. Karl Marx
D. First statement (A) is false and second
C. Frederich Engels
statement (B) is true.
D. Vladimir Lenin

5. This concept refers to deepening integration

between states.
11. Liberal Internationalism: World Government
A. Internationalism
prevents conflict (Kant)
B. Intensification
C. Internationalization
 Socialist Internationalism: 16. Which of the following is an achievement of
____________________________ Socialist internationalism that is being
A. Unity of workers across the world practiced/observed today?
andoverthrow nationalism (Marx) A. League of Nations
B. Unity of workers across the world could B. Minimum wage concept
overthrow capitalism (Engels) C. Labor Day
C. Unity of workers across the world in the D. 9-hour workday
perspective of nationalism (Lenin)
D. Unity of workers across the world in the 17. Westphalian Treaty: Holy Roman Empire ::
perspective of nationalism (Marx) Concert of Europe: _______________________
A. Great powers
12. “Sovereignty is the fundamental principle of B. Axis powers
state politics”. Which of the following events is C. Monarch powers
the root cause of the evolution of Sovereignty? D. Allied powers
A. World War II
B. 30 years of religious war 18. The Global politics composed of the following
C. Treaty of Westphalia key attributes EXCEPT;
D. Napoleonic War A. States' Dominant powers and warfare.
B. International organizations facilitate interstate
13. Concert of Europe: Klemens Von Metternich: interactions.
Imagined Communities: _______________ C. Global organizations have lives of their own.
(Type the first and last name) D. Sovereignty of different States.
- Benedict Anderson
14. This concept refers to heightened interaction 19. Scholars Michael Barnett and Martha
of different sovereign states. formulated the three powers of international
A. All of the choices are correct organizations (IO's) and because of these
B. Internationalization tremendous powers it could create great good
C. Expansion and great harm to the interstate relations.
D. Internationalism Which among the following are correct?
E. Intensification A. Powers of classification, militarization, to
diffuse norms.
15. Which of the following transition of events in B. Powers of classification, to diffuse norms, to fix
the history of global politics is correct? meanings.
A. After the Treaty of Westphalia comes the C. Powers of classification, to standardized, to fix
Napoleon Bonaparte code and war, to League meanings.
of Nations, and proceeded to Concert of D. Powers of classification, to organize, to diffuse
Europe, and resulted to United Nations. norms.
B. After the Treaty of Westphalia comes the
Napoleonic war and code, to Concert of Europe, 20. The principle of self-determination states that
and proceeded to League of Nations, and world’s nations had a right to a free and
resulted to United Nations. sovereign government which was expounded
C. After the Treaty of Westphalia comes the by______.
Napoleon Bonaparte code and war, to League A. Jeremy Bentham
of Nations to Concert of Europe, and resulted to B. Giussepe Mazzini
United Nations. C. Woodrow Wilson
D. Treaty of Westphalia to Napoleon Bonaparte to D. Immanuel Kant
League of Nations and United Nations.