GEWORLD REVIEWER (PRELIMS) KYLA TENORIO_BSMLS2A
LESSON 1: GLOBALIZATION GLOBALIZATION ACCORDING TO
● In education, a 'global system' of ECONOMIST
education is emerging, beyond the level ● Increased free trade
of individual countries. ● Speed of trade
● In communication, the ability to send ● Formation of global economic
and receive information all around the organizations
world. ● Setting up of regional economic blocs
● In engineering, the increasing trend
towards internationally integrated The Five Scapes of Globalization
markets and global interconnectedness. ● Ethnoscape – refers to the global
movement of people.p
Relevance to this course: ● Mediascape – flow of culture.
● A cure to parochialism. ● Technoscape – circulation of mechanical
● It can teach you more about yourself. goods and software.
● You need to study the world because ● Financescape – global circulation of
you will be interacting with it. money.
● The phenomenon of globalization ● Ideoscape – realm where political ideas
occurs subjectively. move around.
GLOBALIZATION LESSON 2: KEY CONCEPT OF
● primarily an “economic process.” GLOBALIZATION
● usually refers to “the integration of the Globalization is to designate an overview of the
national markets to a wider global human experience in education.
market signified by the increased free - CUTURELA (2012)
trade.”
an interdependent world when it comes to its
MANFRED STEGER economical and informational dimensions.
● an expansion and intensification of - AFTER COLD WAR
social relations and consciousness
across world-time and world-space. development of an increasingly integrated
● He differentiated “globalization” with global economy marked by free trade, free
the term “globalism.” flow of capital, and the tapping of cheaper
○ globalization - system foreign labor markets.
○ globalism - belief - WEBSTER
Intensification and Acceleration of Social the compression of the world and the
Exchanges and Activities intensification of the perception of the world as
● From snail mail to Facebook a whole.
● Live television broadcast - ROLAND ROBERTSON (1992)
● Increased travel (cheap flights)
all those processes by which the people of the advances in modern technologies that have
world are incorporated into a single world made international transactions, in both trade
society (borderless community). and finances, convenient, accessible, and easy.
- MARTIN ALBROW & ELIZABETH KING - DURING 1980’s
(1990)
extension beyond national borders of the same
the intensification of worldwide social relations market forces that have operated for centuries
which link distant localities in such a way that at all levels of human economic activity.
local happenings are shaped by events - IMF (2000)
occurring many miles away and vice-versa.
- ANTHONY GIDDENS (1991) interplay of extraordinary technological
innovation mixed with influence of the world
to a set of complex, social processes that are that gives today’s changing its complexity.
changing out current social condition derived - WILL HUTTON & ANTHONY GIDDENS
from the modern independence of (AS CITED BY CUTURELA, 2009)
nation-states.
- STEGER (2005) FIVE CORE CLAIMS OF MARKET
GLOBALISM
Rapid interconnection worldwide that links 1. Globalization is about the liberalization
people: and global integration of markets.
- local 2. Globalization is inevitable and
- national irreversible.
- regional context 3. Nobody is in charge of globalization.
4. Globalization benefits everyone.
This interconnectedness is created because of 5. Globalization furthers the spread of
the ff: democracy in the world.
- social
- economic relationships LESSON 3: THE GLOBALIZATION OF
- networks which are relevant in the global WORLD ECONOMICS
- interactions. • also known as “world economy”
• international exchange of goods and
^ Multidimensional set of social processes services that is expressed in monetary units
that create, multiply, stretch, and intensify of money.
worldwide social interdependencies and • free movement of goods, services, capital,
exchanges. technology and information
^ A growing awareness of deepening • historical process representing the result of
connections between the local and the distant. human innovation and technological
progress.
offers extensive opportunities for truly • characterized by the increasing integration
worldwide development, but it is not of economies around the world through the
progressing evenly. movement of goods, services and capital
- INTERNATIONAL MONETARY FUND across the borders.
High Frequency Trading - is a process by abandoned the gold standard, the US
which computers can execute millions of stock government was able to free up money to spend
purchases and sales among different cities in a on reviving the economy.
matter of seconds.
FIAT CURRENCIES
INTERNATIONAL TRADING SYSTEMS ● Currencies that are not backed by
Silk Road precious metals and whose value is
● oldest known international trade route. determined by their cost relative to other
● a network of pathways in the ancient currencies
world that spanned from China to what ● This system allows governments to
is now the Middle East and Europe. freely and actively manage their
Dennis O. Flynn & Arturo Giraldez economies by increasing or decreasing
● historians who traced the age of the amount of money in circulation as
globalization. they see fit.
● they traced this back to 1571 with the
establishment of the Galleon trade that “Economic crisis occur not when a country
connected Manila in the Philippines and does not have enough money, but when
Acapulco in Mexico money is not being spent, and thereby not
Galleon Trade moving.”
● part of the age of mercantilism - John Maynard Keynes
Mercantilism
● system of global trade with multiple THE BRETTON WOODS SYSTEM
restrictions 1. International Bank for
Monetary Reserves Reconstruction and Development
● selling more goods as a mean to boost (IBRD) or World Bank
their country’s income ● responsible for funding post-war
reconstruction projects.
A more open trade system emerged in 1867. ● It was a critical institution at
The countries thus established a common that time.
basis for currency prices and a fixed
exchange rate system – all based on the value 2. International Monetary Fund (IMF)
of GOLD ● global lender of last resort to
prevent individual countries
GREAT DEPRESSION from spiraling into credit crisis.
● started during the 1920’s and extended ● If economic growth slowed
up to the 1930’s. down because there was not
● worst and longest recession ever enough money to simulate the
experienced by the Western World. economy, the IMF would step
● shows the important roles that money, in.
banks and the stock market play in our
economy. GENERAL AGREEMENT ON TARIFFS
AND TRADE (GATT)
Barry Eichengreen argues that the recovery of - to reduce tariffs and other hindrances to free
the United States really began when, having trade.
NEOLIBERALISM AND ITS
DISCONTENT Friedrich Hayek & Milton Friedman
● Government poured money into their ● Argued that the government’s practice
economies, allowing people to purchase of pouring money into their economies
more goods by increasing demands for had cause inflation
these products ● Increasing demand for goods without
● As demand increased, so did the price of increasing supply.
these goods. WASHINGTON CONSENSUS
● Western and some Asian economies like ● Dominated global economic policies
Japan accepted the rise in prices because from 1980-2000
it was accompanied by general ● Its advocates pushed for minimal
economic growth and reduced government spending to reduce
unemployment. government debt.
● As prices increased, companies would ● it includes privatization of
earn more and would have money to government-controlled services like
hire workers. water, power, communications and
transport believing that the free market
Early 1970s (The start of ending Bretton can produce the best results
Wood System)
● prices of oil rose sharply as a result of Post-communist Russia
the Organization of The Arab Petroleum
Exporting Countries (OAPEC). ● After communism had collapsed in the
● imposition of an embargo, a government 1990s, the IMF called for the immediate
order that limits trade, in response to the privatization of all government
decision of the United States and other industries
countries. ● Only individuals and groups who had
● the ‘Oil Embargo’ affected the Western accumulated wealth under the previous
economies that were reliant on oil communist order had the money to
● stock market crashed in 1973-1974 after purchase these industries
the United States stopped linking the ● In some cases, the economic elite relied
dollar to gold which effectively on easy access to government funds to
take over the industries
Stagflation – persistent inflation combine with ● This practice has entrenched an
stagnant consumer demand and relatively high oligarchy that still dominates the
unemployment Russian economy to this very day.
Stagnation – not active, changing or LESSON 4-5: WORLD POLITICS
progressing consumer demand - International Relations – interactions
between states and internal politics or diplomatic
Inflation – a continual increase in the price of engagements between two or more countries.
goods and services
- Internationalization – scholars explore the
deepening of interactions between states. meet all of them in his/her lifetime.
THE ATTRIBUTES OF TODAY’S GLOBAL SOVEREIGNTY
SYSTEM Internally - No individuals or groups can
Four Major characteristics of Politics: operate in a given national territory by ignoring
1. Independent countries or states that rule the state.
themselves
2. Countries communicate with one another Externally - A state's policies and procedures
through diplomacy are independent of the interventions of other
3. International institutions that enable these states.
interactions (United Nation) COUNTRY- a region that is identified as a
4. International institutions take on lives of their distinct national entity.
own in addition to enabling meetings between
governments
THE INTERSTATE SYSTEM
Nation-state – composed of two - The concept of sovereignty can be traced back
non-interchangeable words. (Not all states are to the Treaty of Westphalia (30 years of war)
nations, and not all nations are states.) - Westphalian system – provided stability for
States – refers to a country and its government the nations of Europe until it faced its first major
(e.g., government of the Philippines) challenge by Napoleon Bonaparte.
- Principles of French Revolution (liberty,
Four Attributes of States equality, and fraternity)
1. It exercises authority over specific population - Napoleonic Code – forbade birth privileges,
(citizens) encouraged freedom or religion, and promoted
2. It governs a specific territory meritocracy in government service.
[Link] a structure of government that crafts - Concert of Europe – restore the world of
various rules that people follow monarchical, hereditary and religious privileges.
4. Has sovereignty over its territory
INTERNATIONALISM
Sovereignty – refers to internal and external - a system of heightened interaction between
authority various sovereign states, particularly the desire
for increased cooperation and solidarity among
NATION states and peoples.
- It is limited because it does not go beyond a Jeremy Bentham – advocate the creation of
given “official boundary”. international law.
- Rights and responsibilities are mainly the Giuseppe Mazzini – believed in the Republican
privilege and concern of the citizens of the government and proposed a system of free
nation. nations that cooperated with each other to create
- Often limit themselves to people who have an international system.
imbibed a particular culture, speak a common
language, and live in a specific territory. Forms of Internationalism
- Allows one to feel a connection with a 1. Liberal Internationalism – aims to establish
community of people even if he/she will never conditions of peace, prosperity, and justice
through free trade, national self-determination,
and strengthened international law.
2. Socialist Internationalism – seeks to
transcend liberalism by pushing for the full
realization of liberal ideals such as equality and
liberty.
Treaty of Westphalia
- a set of agreements signed between May and
October 1648 to end the Thirty Year's War
between the major continental powers of
Europe.
