e s o f

Structur
G loba liza t ion
MODULE 2
 Member of the Group

Amatorio, Ashley Joyce F. Lacson, Symhon

Cardama, Althea Ubac, John Edward
Domasig, Shernalyn L.
Malimata, Mariel Abigail
Misa, Angela Mae
Rosas, Daphne Antonette
Sabado, Ira Hannah
Verzosa, Jenny Loreine
 THE STRUCTURES OF
GLOBALIZATION
1 2 3 4

THE GLOBAL MARKET THE GLOBAL CONTEMPORARY

ECONOMY INTEGRATION INTERSTATE GLOBAL
SYSTEM GOVERNANCE
 u ltimate
m e to the
Welco
e pre so!
gam

A GAME!
T’S PLAY
LE
d ge n iu s in you
e wo r
Unleash th n ta ti on Party
Pres e
during this
 LET'S PLAY

GUESS THE COUNTRY

What's the country that links these four together?

(clue: 5 letters)
What's the country that links these four
pictures together?

(clue: 5 letters)
What's the country that links these four
pictures together?

(clue: 11 letters)
What's the country that links these four
pictures together?

(clue: 11 letters)
What's the country that links these four
pictures together?

(clue: 6 letters)
What's the country that links these four
pictures together?

(clue: 5 letters)
CONGRATULATIONS!
You're such a word genius! Einstein is trembling.
 S e c t i o n 1 :

Th e Glo ba l
Ec on om y
 GLOBALIZATION ECONOMIC
Manfred B. Steger (2014)
GLOBALIZATION
definition of globalization as the According to Shangquan
expansion and intensification of (2000), economic globalization
social relations and
refers to the increasing
consciousness across world time
interdependence of world
and space implies that there are
various forms of connectivity. It is economies as a result of the
a multi-dimensional growing scale of cross-border
phenomenon involving trade of commodities and
economics, politics, culture, services, flow of international
ideology, environment, and capital, and wide and rapid
technology. spread of technologies.
Moreover, the flow of international capital can be observed in foreign direct
investments (FDI), a type of investment in which a company establishes a business in
another country for production of goods or services and still takes part in the
management of that business. A good example of this is Toyota Motor Philippines
Corporation which is a subsidiary of Toyota Motor Corporation based in Toyota, Japan.
The International Monetary fund (IMF) defined economic
globalization as a historical process representing the
result of human innovation and technological progress.
It involves the increasing integration of economies
around the world, particularly through the movement of
goods, services, and capital across borders.
Economic globalization can be traced through the Silk
Road, an old trade route that connected Asia, Africa, and
Europe.
 Four Interconnected
Dimensions of the Economy
1. Globalization of trade 2. Globalization of financial
goods and services and capital markets
- WTO or World Organization established in 1995
It's about how financial and capital
- focuses on facilitating international trade
markets have become more open and
- primary goal is to promote smooth, predictable,
connected globally.
and free trade among its member countries by
setting rules and resolving trade disputes.

3. Globalization of technology 4. Globalization of

and communication production
Highlights how the internet and communication
- MNCs or Multinational Corporations
technology enable instant transactions and
- TNCs or Transnational Corporations
interactions globally.
• The process of "making the world
economy into an 'organic system'
by extending transnational
economic processes and relations
to more and more countries and
by deepening the economic
interdependencies among them."
(Szentes 2003)
Boyer and Drache (1996) admit that ‘globalization is redefining

the role of the nation-state as an effective manager of the

national economy’ , but refuse the hypothesis of uniform state

policies and conceive the state as the main shelter from the
perverse effects of a free market economy. It is, therefore,
misleading to assume that globalization has relegated the

nation-state and its policies to an obsolete or irrelevant status;

governments instead ‘are acting as the midwives of

globalization’ (Brodie, 1996).

[Link]

[Link]
Ohmae (1995) argues that the
nation-state has ceased to exist as
the primary economic
organization unit in the global
market.
As a result of transforming the
national economy into a global one,
Reich (1999) posits that national
products, technologies,
corporations, and industries
become obsolete. San Miguel
Corporation and Jollibee Foods
Corporation are good illustrations
of this effect.
 International Monetary
System or IMS
In history, there were three major IMS:

1. The gold standard

Gold as a basis for their money's value. 3. The European
Monetary System (EMS)
2. The Bretton Woods
System System to unite their currencies and promote
economic cooperation.
Used the U.S. dollar as a common
currency, and they created institutions like
the World Bank.
As actors of economic globalization, the
world is now confronted with a number of
ongoing debates as to whether economic
globalization unites or divides the world.
Economic globalization fosters universal
economic growth and development
(Benczes, 2014)
Globalization creates mutual dependence
between developing an developed
countries (Arrighi, 2005)
Economic Globalization Pros
and Cons

1. Exploitation of Resources
2. Uneven Benefits
3. Wage Inequality
 S e c t i o n 2 :

Mar ke t
Integra ti on
World War II
 Section 2
MARKET INTEGRATION
History

After the Second World War, almost all countries around the world faced the great challenge of
bringing their feet back on the ground.

As a substitute to the unsuccessful League of

Nations, the United Nations (UN) was established
on October 24, 1945.

Primarily, it was tasked to promote international

cooperation and to restore international order.
 History

MONETARY AND FINANCIAL CONFERENCE BRETTON WOODS, NEW HAMPSHIRE (US)

Earlier in 1944 at the Monetary and Financial Conference Bretton Woods, New Hampshire (US), the
first government-sponsored international financial institutions were established:

World Bank (WB)

International Monetary Fund (IMF).

Two types of International Financial
Institutions

1 Intergovernmental

Private 2
 Two types of International Financial
Institutions
Intergovernmental Private
Intergovernmental financial institutions, Private international financial
also known as multilateral financial
institutions are typically commercial
institutions, are established by
entities owned by private investors.
agreements between governments of
They operate for profit and include a
different countries.
wide range of organizations, such as
They aim to provide financial support
banks, insurance companies, and
and advice to developing countries and
to maintain the stability of the
investment funds. They provide
international financial system. These services like lending money, providing
institutions are typically funded by investment advice, and facilitating
contributions from their member transactions.
governments.
Two types of International Financial
Institutions

01
INTERGOVERNMENTAL
INTERNATIONAL FINANCIAL
INSTITUTION
 Two types of International Financial
Institutions
Intergovernmental

The World Bank is an intergovernmental institution.

Its aim is to end extreme poverty and promote shared
prosperity in a sustainable way ([Link]).

There are five organizations that belong to the WB Group, namely:

1. International Bank for Reconstruction and Development
2. International Development Association
3. International Financial Corporation
4. Multilateral Investment Guarantee Agency
5. International Center for Settlement and Investment Disputes
Two types of International Financial
Institutions
Intergovernmental
In the 1960s, regional development banks were established:

Asian Development Bank (ADB) in 1960

African Development Bank (AfDB) in 1964

Two types of International Financial
Institutions

02
PRIVATE INTERNATIONAL
FINANCIAL INSTITUTION
Two types of International Financial
Institutions
Private
There are also private international financial institutions
such as Citigroup and Merrill Lynch.
Citigroup is an
American multinational
investment banking Merril Lynch is the
and financial wealth management
corporation. It is the division of the Bank of
fourth largest bank in America.
the US ([Link]).
Global market integration
Global market integration did not
happen overnight.

Harvey (1990) sees that cities and

countries were able to extend their reach
beyond borders and patterns of trade and
technology because of developments in
shipping and navigation.
The integration of the global market started when big American
corporations began to emerge after the Second World War with the rise of
new conglomerates.
Later, Japan and Europe followed suit. Japanese global automobile
corporations like Toyota, Nissan, and Isuzu took off after the giant American
companies flourished. These companies prospered as the primary and
global makers of trucks for the Japanese military (Dower, 1992).
Renault automobiles, a French multinational automobile manufacturer, was
also used to help in the military post- war operations. The rise of American,
Japanese, and European global corporations paved the way for the further
development of international trade.
According to Iwan (2012) differences
among :

INTERNATIONAL MULTINATIONAL
COMPANIES COMPANIES

GLOBAL TRANSNATIONAL
COMPANIES COMPANIES
INTERNATIONAL MULTINATIONAL
COMPANIES COMPANIES
they import and export but They invest in foreign
have no investments outside countries, but do not have
of their country. coordinate product offering
in each country.
 GLOBAL TRANSNATIONAL
COMPANIES COMPANIES
They are more complex
Invested in and present in
corporations and have
many countries.
invested in foreign nations.
Neubauer (2014) identifies the three
attributes of global corporation

Agent of economic development

Economic prominence

Powerful entity that can create crisis

f
INVESTMENT TRADE BASED DIGITAL
PERIOD PERIOD GLOBALIZATION
( 1950-1970 ) ( 1970-1995 ) ( 1995-PRESENT)
 l
:
a
n 3
b
c t i o
o
e
l
S
Th e G
Int er s ta te
Sy st e m
Learning Outcomes:
01 Explain the effects of
Globalization on nation-states;

02 Categorize the institutions that

govern international relations;
and

03 Diffrentiate internationalism
from globalism
 The Global
Interstate System
State Nation Nation-State

A contemporary political Organic ties that hold groups Defined as a political

organization with centralized of people together and inspire community that emanates
government that maintains the a sense of loyalty and from civic society to
legitimacy use of force within belonging. Example; ethnicity, legitimately execute peace or
a certain territory. language, religion peoples oneness.
 Introduction
Although some scholars like Appadurai and Ohmae said
that globalization has replaced the function and
jurisdiction of nation-state. Nation-states can
manipulate competitive advantages with international
and political issues, transnational civil society
organizations and multinational companies.
Globalization has, in away, reshaped the role and
functions of nation-state as governing bodies in their
particular territories.
 Effects of Globalization
First Effect Second Effect Third Effect Fourth Effect Fifth Effect

to impose a forced The establishment The establishment The rise of The creation of
choice upon of economic and of international transnational new
nation-states. political laws and principles. activism (TNA). communications
integrations. network.
 Intergovernmental
Organizations (IGOs)
An organization known as an
intergovernmental organization
(IGO) is one that was established by
a treaty involving two or more
nations and was intended to work in
good faith on matters of mutual
interest.
 Association of Southeast Asian
Nations (ASEAN)

ASEAN was established in 1967 has 10

member states.

European Union
EU, an IGO with 28-state members,
INTERGOV E RN M EN TAL was established in November 1993. EU
ORGAN IZA TIO NS is one of the powerful trade bloc in
(IGOs) the world and it has 8 goals.

World Trade Organization

WTO has 164 member-states. It is
the sole IGO that caters to rules of trade. It
manages the trade agreements made
among its members. Additionally, it mediates
any arising trading issues or conflicts.
 Internationalism
Is anchored on the opinion that nationalism should be outrun because links that bind
people of different countries are more powerful than those that disconnect them
(Anora, 2014). Moreover, in order to avert wars, Immanuel Kant (1795) stated that
agreements among nations must be reached.

Liberal internationalism Socialist internationalism

This proposes that nations must On the other hand, this contradicts
give up their freedom and submit liberal internationalism. This form of
to a larger system of laws that is internationalism is based on the view
embodied by common that capitalism is a global system
international principles. and that the working class must unite
as a global class to forward the
struggle against capitalism.
 Globalism Global interstate
system
Emerged as an attitude that Is a facet of contemporary
seeks to understand all the political globalization that seeks
interconnections of the modern to form collaboration among
world and to highlight nation-states through the
patterns that underlie them. establishment of
intergovernmental organizations.
 a ry
4 :
r
i o n
o
e c t
p
S
Contem
Glob a l
Gov er n an ce
Global Governance
It makes world affairs systematic, secured, and
formulaic.
It is the totality of norms, laws, policies, and bodies
that define, comprise, and facilitate transnational
relations between citizens, states, cultures,
intergovernmental and non-governmental
organizations. (Thakur, 2014)
Global governance is rule-based, it has no central
authority.
 Organs of United
Nations (UN)
General Assembly Security Council Economic &
Social Council
It is the central deliberative It is the organ which has the It is the main organ for
and the only organ where all commitment to preserve cooperation, policy review,
member-states have equal peace and security. policy dialogue, and advice
representation in discussion on social economic, and
and consideration, and environmental issues.
policymaking.
 Organs of United
Nations (UN)
Trusteeship International Secretariat
Council Court of Justice
It is the organ tasked to
administer international It is the organ tasked to
It is UN's prime judicial execute the daily activities
oversight for 11 trust
organ. as assigned by the five other
territories and to make sure
that adequate procedures organs.
are taken for independence
and self-government.
 Functions of United Nations
Maintain Peace and Security
It is the first function of UN when it was established after WW2.
Organization uses good offices, diplomacy, and mediation.
Conducts peacekeeping in conflict-ridden countries.
Engages in peace-building in post-conflict nations.
Aims to prevent conflicts from resurging and promotes sustainable peace
and development.
Supports the global fight against terrorism.
Works towards the removal of nuclear weapons and mass destruction
instruments.
 Functions of United Nations
Bringing Human Rights
In 1948, UN was responsible for bringing human rights into the realm of
international law through the Universal Declaration of Human Rights.
UN protects human rights through scrutiny and oversight of reported
situations and international agreements.
Addresses genocides and raises awareness about them.
Promotes and mobilizes for action related to human rights.
Governs the advancement of the Responsibility to Protect at multiple levels:
conceptual, institutional, political, and operational.
 Functions of United Nations
Delivering Humanitarian Aid
UN is responsible for coordinating responses to emergencies and supports
rapid humanitarian response for people affected by natural disasters and
armed conflict.

Upholding International Law

UN settles legal disputes referred to it by the member-states.
It also accords advisory opinions on questions that are of legal nature
submitted by legitimate UN organs and particular agencies.
 Functions of United Nations
Promoting Sustainable Development
The Millennium Development Goals was set to promote sustainable
development.
In 2015, this was changed into the Sustainable Development Goals (SDGs).
This collection of 17 global goals covers social and economic issues
including poverty, hunger, health, education, global warming, gender
equality, water sanitation, energy urbanization environment, and social
justice.
 Challenges of
Global Governance
In terms of knowledge, UN, is underappreciated regarding how its convening capacity
and mobilizing power are utilized to help funnel and consolidate knowledge from
outside and ensure its discussion and dissemination among governments.
The contrasting moral structures of social behavior in different member-states
complicate the formulation of a normative standard that can be applicable to all.
In formulating propositions, problems occur when only the member-states are heard.
UN belittle the helping hand of non-governmental organizations (NGOs) and the
global public opinion. Sometimes, recommendations are not executed.
Institutions can also be places where ideas are cornered and left behind. The
modality and processes for enforcing compliance with international norms and laws
are not present. In fact, some UN staff members violate, cheat, and challenge them.
QUIZ!
1. Which of the following best describes economic globalization?

A. The practice of restricting international trade to protect domestic industries and markets.
B. The global interconnectedness, interdependence and mutual reliance of economies facilitated by the
trading of products, services, financial resources, and information.
C. The act of enhancing political collaboration among countries in order to foster economic steadiness.
D. The concept of people and companies conducting their activities exclusively within the borders of one
nation, with no involvement in global trade.

2. Countries agreed to use gold as a basis for their money's value. What International
Monetary System (IMS) is this?

A. The Bretton Woods System

B. The Gold System
C. The Gold Standard
D. The European Monetary System
3. Which of the following is not an intergovernmental international financial
institution?
A. Citigroup
B. World Bank
C. International Monetary Fund
D. Asian Development Bank

4. In the first effect of globalization ASEAN Free Trade Area (AFTA) it encourages its
member-states to what? except one.
A. Commit
B. Invest
C. Trade
D. Resolve Crises

5. Which of the following IGOs was established in November 1993?

A. World Trade Organization
B. International Criminal Court
C. European Union
D. North Atlantic Treaty Organization
6. ________ identifies three structural periods in the existence of global corporations
after the war.
A. Neubauer (2014)
B. Gereffi (2001)
C. Iwan (2012)
D. Cammett (2006)

7. Association of Southeast Asian Nations (ASEAN), European Union (EU), and World
Trade Organization (WTO) are examples of what organization.
A. Intergovernment Organizations
B. Intragovernmental Organizations
C. Intergovernmental Organizations
D. Intragovernment Organizations

8. What organ of the United Nation has the commitment to preserve peace and security?
A. Economic and Social Council
B. Security Council
C. Secretariat
D. General Assembly
9. When were the Millennium Development Goals changed to the Sustainable
Development Goals?

A. 2015
B. 2014
C. 2017
D. 2016

10. What are the continents connecting china through the Silk Road?

A. Asia, Australia, Europe

B. Africa, Europe, Antartica
C. Asia, Africa, Europe
D. Asia, Antartica, Africa
CORRECT ANSWERS;

1. B
2. C
3. A
4. D
5. C
6. B
7. C
8. B
9. A
10. C
Th ank
You
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