CONTEMPORARY WORLD

1.GLOBALIZATION

• GLOBALIZATION – the interconnectedness of people and businesses across the world that eventually leads to
global cultural, political, social and economic integration.
• ALBROW 1990- refers to all those processes by which the people of the world are incorporated into a single
• GIDDENS 1990- defined as the intensification of worldwide social relations which link distant localities.
• CAENOY 2001- mean the end of the nation-state if the nation-state fails to redefine itself to meet the new
conditions it faces in the global environment.

GLOBALIZATION THEORY

• CULTURAL GLOBALIZATION- focuses in a large part on the technological and societal factors that are causing
cultures to converge.
o CULTURAL DIFFERENTIALISM- cultures unaffected by globalization
o CULTURAL CONVERGENCE- increasing sameness in the direction of dominant groups
o CULTURAL HYBRIDIZATION- mixing of cultures, producing new and unique cultures.
• ECONOMIC GLOBALIZATION – focus on the integration of international financial markets and the coordination
• POLITICAL THEORY – covers the national policies that bring countries together politically, economically and
culturally.
o LIBERAL THEORY- importance of the free market and need to allow it to operate free of any impediments,
o REALIST THEORY – states aggressively pursuing their own interests.

EFFECTES OF GLOBALIZATION

• Changed food supply

• Division of labor
• Less job security
• Damage to the environment
• Cultural impact
• Increase in anti-globalization protest

ADVANTAGEOF GLOBALIZATION

• Increased free trade between nations

• Increased liquidity of capital allowing investors in developed nations to in incest
• Corporations have greater flexibility to operate across borders

DISADVANTAGE OF GLOBALIZATION

• Increased flow of skilled and non-skilled jobs from developed to developing nations as corporations seek out
• Increased likelihood of economic disruptions in one nation effecting all nations
• Threat that control of world media by a handful of corporations will limit cultural expression

2.THE GLOBAL ECONOMY

• ECONOMIC GLOBALIZATION- widespread international movement of goods, capital, services, technology and
information.
• PROTECTIONISM – protecting ones economy from foreign competition by creating trade barriers.
• DOMESTIC PRODUCTS – imported goods
o TARIFF – tax levied by a government on imports and exports
o IMPORT QUOTA – limits on the number of products that can be imported into a country.
o BANS – forbid products on import good
 • TRADE LIBERATION – “free trade” act of reducing trade barriers to make international trade easier
• ECONOMIC DEVELOPMENT- growth of human capital index. Decrease in equality figures
o GDP per Capita
o HDI

3.ROLE OF INTERNATIONAL ORGANIZATION

• INTERNATIONAL ORGANIZATION- organization with an international membership, scope, or presence. It is

specialization within the political science master programmed.

BENEFITS OF INTERNATIONAL ORGANIZATIONS

• International organization can provide smaller states an opportunity for stronger economic.
• Help to build relationships with larger states in which some believe can prevent war between one another.

LIMITATIONS OF INTERNATIONAL ORGANIZATIONS

• CULTURAL DIFFERENCES: very hard to deal with such difference.

• MONITORING MULTIPLE COUNTRIES: it is very important and at the same time very difficult to closely analyze all
the economic and other dynamic situations all over the world.
• RESISTANCE FROM THE DOMESTIC ORGANIZATIONS: the domestic organizations may not be in favor of
centralization of power.
• GOVT. AND POLITICAL HURDLES: different countries with different political parties may lead to diversified the
government restrictions and administrative limits.

TYPES OF INTERNATIONAL ORGANIZATIONS

• INTER-GOVERNMANTAL ORGANIZATIONS (IGOs) – composed primarily of sovereign states, or of other

intergovernmental organizations. Examples United Nations, The World Bank, European Union.
• INTERNATIONAL NON-GOVERNMENTAL ORGANIZATIONS (NGOs) – has same mission as non-governmental
organization(NGO), but it is international in scope and has outposts around the world to deal with specific issues
in many countries.

4.ROLE OF INTERNATIONAL ORGANIZATIONS

• SETTING OF INTERNATIONAL NORMS THROUGH TECHNICAL ANALYSIS – play an important role in collecting
statistical information, analyzing the trends in the variables, making a comparative study and disseminate the
information to all other countries.
• TECHNICAL ASSISTANCE – important role in the recent times, leading out technical cooperation to the member
countries.
• NEGOTIATING AND SETTING UP MULTILATERAL AGREEMENTS – amongst all the roles and activities of the
international organizations, the most important is negotiating and setting up multilateral agreements.
• WORLD TRADE ORGANIZATION (WTO)- only global international organization dealing with the rules of trade
between nations to ensure that trade flows as smoothly, predictably and freely as possible.

OBJECTIVES OF WTO

o Set and enforce rules for international trade

o Forum for trade negotiations
o Handling trade disputes
o Monitoring national trade policies
o Technical assistance and training for developing countries
o Cooperation with other international org.
PRINCIPLES OF WTO

• TRADE WITHOUT DISCRIMINATION

o Most-favored-nation (MFN); treating other people equally
o National treatment; treating foreigners and local equally

AGREEMENT ON TRADE-RELATED INVESTMENT MEASURES (TRIMs)

• TRIMs – refers to certain conditions or restrictions imposed by a governments in respect of foreign investment in
the country. Is an international agreement administered by the world trade organization that set down minimum
standards for many forms of intellectual property

GENERAL AGREEMENT ON TRADE IN SERVICES (GATS)- created to extend multilateral trading system to service sector.
Goal is to remove barriers to trade

• WTO – does not hold votes. But it is dominated by the worlds most powerful countries and trading blocs; US,
European Union, Japan , Canada, Australia are key rich countries.

QUIZ

1. TECHNOLOGY AND COMMUNICATION- the demand of the BPO industry inside the Philippines increased by 30%
on the past few years. What interconnectedness of economic globalization is shown
2. CONSUMER MAY FIND CHEAPER PRICES OF PRODUCTS AND COMPANIES MAY FIND A CHEAPEST PLACE FOR
MANUFACTURE- Effect of trade liberation for companies and consumers
3. IMPOSING TARIFF – to protect domestic product productions and raise more money for the government, the
bureau of customs increased the exportation fee by 20%. Instrument of protectionism is applied
4. I AND III (I. imported products made from imported raw materials can be sold at lower prices / III. Local products
can be produced efficiently.) – results of trade liberation to price of products in the market
5. I AND IV (I. reduction of tariffs and non-tariff barriers / IV. Reduction or elimination of quota) – tangible examples
of trade liberation
6. EXPLOITATION OF WATER SUPPLY AND INCREASE POLLUTION INSIDE THE COUNTRY – effect of trade liberation to
the environment
7. ECONOMIC INTEGRATION- what is an agreement among countries in a geographic region to reduce and ultimately
remove tariff and non-tariff barriers leading to free flows of goods and services
8. PROTECTIONISM- earlier this year, the department of trade and industry prioritize the approval of local products
rather than imported goods to promote domestic production inside the country. The economic globalization.
9. TRADE LIBERATION – because of lower fee in importing and exporting smart phone accessories outside the
country, the price of travel chargers decrease by 5%. Type of economic globalization is manifested
10. PROTECTIONISM AND TRADE LIBERALIZATION- two trading concepts involve in the discussion of economic
globalization.
11. CULTURAL GLOBALIZATION- this aspect of globalization focuses in a large part of technological and societal factors
that are causing cultures to converge.
12. FALSE- the more countries and regions of the world become intertwined politically, culturally and economically
will result to less globalized the world becomes.
13. TRUE – critics of globalization decry the decimation of unique cultural identities and languages
14. TRUE – globalization as it is known in some parts of the world is driven by the convergence of cultural and
economic
15. ECONOMIC GLOBALIZATION- the focus is on integration of international financial markets and coordination
16. GLOBALIZATION – in economic context this describes the integrated economies marked by free trade, the free
flow
17. FALSE – globalization doesn’t changed the way nations business and people interact.
18. TRUE – eliminating international trade barriers will lead to more globalized world
19. POLITICAL GLOBALIZATION- this covers the national policies that bring countries together politically, economically,
culturally
20. TRUE – when companies move operations overseas to minimize cost, such moves can eliminate jobs.
21. 164- member countries of WTO
22. TRUE – international organization also give states an opportunity to be efficient
23. TRUE – free trade gives developed countries more access to the resources of the developing countries
24. JANUARY 1,1995- WTO established
25. TRADE-RELATED ASPECTS OF INTELLECTUAL PROPERTY RIGHTS- an international agreement administered by the
world trade organization
26. ENFORCE TRADE BARRIERS- principles of WTO
27. TRUE – goal of GATS to remove barriers to trade
28. MONITOR NATIONAL TRADE POLICIES- objective of WTO except
29. ACCEPTANCE FROM DOMESTIC ORGANIZATION- limitation of international organization except.
30. IMPLEMENT STATE LAWS- considered as the role of international org except
31. PROMOTE OBSTACLES TO TRADE- major activities of WTO except
32. MULTINATIONAL CORPORATION- an organization that owns or controls production of goods or services in one
33. TRUE- WTO is dominated by the worlds most powerful countries
34. TRUE – WTO does not hold votes instead it works by passive consensus
35. TRUE- the international organizations play an important role in collecting statistical info