MIDTERM REVEIWER – SOCSCI 100

FINANCIAL: Development of worldwide

LESSON 1
financial markets and access to external
DEFINING GLOBALIZATION financing.

ECONOMIC: Creation of a global common

DEFINITION OF GLOBALIZATION
market with reduced trade barriers.
• The process by which people POLITICAL: Formation of international
worldwide are unified into a single organizations (e.g., WTO, IMF) regulating
society. government relationships.
• It encompasses economic,
technological, sociocultural, and LEAGL/ETHICAL: Establishment of
political forces, leading to changes international criminal courts and crime-
in societies and the global economy. fighting cooperation.
• Often refers to economic
LANGUAGE: Dominance of English in global
globalization, which integrates
communication (75% of mail, 60% of radio,
national economies into the
90% of internet traffic).
international economy through
trade, investment, migration, and COMPETITION: Increased competition
technology. requiring improved productivity and
technology use.
Global Connectedness Index (GCI) -
measures a country's connections through CULTURAL: Growth of cross-cultural
trade, capital, people, and information. contacts and a desire for foreign products
and ideas.
Top Country: Netherlands (most
connected) ECOLOGICAL: Global environmental
challenges requiring international
Top Continent: Europe (most
cooperation (e.g., climate change).
connected)
SOCIAL: Spread of multiculturalism,
increased travel, and global pop culture.

EFFECTS OF GLOBALIZATION ECHNICAL: Development of global

telecommunications and internet
INDUSTRIAL: Emergence of global infrastructure.
production markets and access to foreign
products.

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DIMENSIONS OF GLOBALIZATION TRADE BARRIERS

1. TARIFFS - taxes on imports to protect

1. CULTURAL GLOBALIZATION - transmission
domestic industries.
of ideas and values, leading to cultural
homogenization or heterogenization. 2. NON-TARIFF BARRIERS - regulations
affecting quality and quantity.
Homogenization - increasing
sameness in global culture (e.g., a. Licenses - granted by the
McDonaldization). government, and allows the
importing of certain goods to the
Heterogenization - creation of
country.
diverse cultural practices through
interaction. b. Quotas – the limit of import
quantity of commodity that would
2. ECONOMIC GLOBALIZATION- spread of
permitted for import from various
trade, transportation, and communication
countries during a given period.
systems to promote international
commerce. c. Product Standards - importing
country imposes standards for
Interdependence - Increased
goods. If the standards are not met,
economic interdependence through
the goods are rejected.
cross-border movement of goods
and services. d. Product Labeling – certain
countries insist on specific labeling of
International Trade - Exchange of
the products.
goods and services across borders,
driven by reduced trade barriers e. Packaging Requirements - certain
(GATT/WTO). nations insist on particular type of
packaging of goods.

Types of Economic Policies

International and Financial Trade
TRADE LIBERALIZATION - reducing
Institutions
government restrictions to facilitate
international trade. WORLD BANK - provides loans for
development and implements structural
PROTECTIONISM - government limits on
adjustment policies.
foreign trade to protect local businesses.

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INTERNATIONAL MONETARY FUND (IMF) - secure the rights and interests of

promotes global monetary cooperation smaller nations.
and provides emergency loans.

WORLD TRADE ORGANIZATION (WTO) -

CULTURAL GLOBALIZATION - increasing
regulates international trade and
contact between people and their cultures,
negotiates trade agreements.
ideas, values, and lifestyles; linked to
globalization of music, media, fashion,
food, and knowledge.
The biggest issue created by economic
globalization is about the ENVIRONMENT.

LESSON 2
SUSTAINABILITY - the earth's ability to
THE GLOBAL ECONOMY
provide resources for human needs.

SUSTAINABLE DEVELOPMENT - meeting

present needs while preserving resources
8 MILLENIUM DEVELOPMENT GOALS
for future generations.
• Created by the United Nations (UN)
in the 1990s.
PHILIPPINE COUNCIL FOR SUSTAINABLE • To address global issues and reduce
DEVELOPMENT extreme poverty by 2015.
• In September 2000, 189 countries
• Under the Fidel V. Ramos’
acknowledged the importance of
administration.
partnerships for development.
• Executive Order No. 15

1. ERADICATE EXTREME POVERTY AND

3. Political Globalization - the amount of
HUNGER
political cooperation between different
countries; continuity of political • Reduce by half the proportion of
relationships. people living on less than a dollar a
day.
• Establishment of organizations like
• Achieve full and productive
the UN, NATO, and WTO to regulate
employment and decent work for all,
international politics and trade.
including women and young
• Maintain international peace and
people.
security, promote human rights, and

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7. ENSURE ENVIRONEMENTAL
SUSTAINABILITY
2. ACHIEVE UNIVERSAL PRIMARY
EDUCATION • Integrate the principles of
sustainable development into
• Ensure that all boys and girls
country policies and programmes;
complete a full course of primary
reverse loss of environmental
schooling.
resources.
3. PROMOTE GENDER EQUALITY AND • Reduce by half the proportion of
EMPOWER WOMEN people without sustainable access
to safe drinking water and basic
• Eliminate gender disparity in primary sanitation.
and secondary education • Achieve significant improvement in
preferably by 2005, and at all levels lives of at least 100 million slum
by 2015. dwellers, by 2020
4. REDUCE CHILD MORTALITY 8. GLOBAL PARTNERSHIP FOR DEVELOPMENT
• Reduce by two thirds the mortality • Develop further an open, rule-
rate among children under five. based, predictable, non-
discriminatory trading and financial
5. IMPROVE MATERNAL HEALTH
system.
• Reduce by three quarters the • Address the special needs of the
maternal mortality ratio. least developed countries.
• Achieve, by 2015, universal access to
reproductive health.

6. COMBAT HIV/AIDS, MALARIA AND OTHER THE MILLENIUM DEVELOPMENT GOALS

DISEASES REPORT 2015

• Stop and begin to reverse the spread • Significant achievements made on

of HIV/AIDS. many MDG targets worldwide, but
• Achieve, by 2010, universal access to progress has been uneven across
treatment for HIV/AIDS for all those regions and countries.
who need it. • Millions of people are being left
• Halt and begin to reverse the behind, especially the poorest and
incidence of malaria and other those disadvantaged due to sex,
major diseases age, disability, ethnicity, or
geographic location.

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• Gender inequality persists, and HOW DID GREAT DEPRESSION END?

climate change undermines
1. HENRY FORD - the owner of Ford Motors.
progress.
Supplier of Military Jeepney.

2. RAILING/TRAIN SYSTEM - used coal or

POVERTY IN THE PHILIPPINES steam to function.

3. ALDRICH – VREELAND ACT - aims to help

POVERTY - a condition characterized by
the local businesses inside the USA by
severe deprivation of basic human needs
giving financial support/funds in exchange
including food, safe drinking water,
for 5% tax. That 5% tax goes to the
sanitation, health, shelter, education, and
emergency fund.
information.

• As of 2022, PHP 12,030 per month for

a family of five. LEAPFROGGING – is the idea that countries
• Most people living in poverty are can skip straight to more efficient and cost-
self-employed farmers, fisherfolk, or effective technologies that were not
agricultural workers available in the past.

FAIR TRADE – is the concern for the social,

economic, and environmental well-being
ECONOMIC GLOBALIZATION AND GLOBAL
of disregarded small producers. It promotes
TRADE
a more moral and equitable global
economic system.
BIMETALLISM - a monetary system where
the value of money is based on two • is concerned with PROTECTION OF
different metals - the gold and silver. WORKERS and PRODUCERS,
establishment of more FAIR PRICES,
GOLD STANDARD - a monetary system
engagement in ENVIRONMENTALLY
where a country's currency or money has a
SOUND PRACTICES and SUSTAINABLE
value directly linked to gold.
PRODUCTION, creation of
PUMP PRIMING - the action taken to RELATIONSHIPS between PRODUCERS
stimulate an economy. in the South and CONSUMERS in the
North, and promotion of SAFE
GREAT DEPRESSION - a severe worldwide
WORKING ENVIRONMENT.
economic depression preceding World
War II.

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VALUE CHAIN
LESSON 3
Process or activities by which a
MARKET INTEGRATION
company adds value to an article,
including production, marketing, and the
provision of after-sales service.
MARKET INTEGRATION

• when prices among different

GLOBAL VALUE CHAIN
locations or related goods follow
similar patterns over a long period of • people and activities involved in the
time. production of a good or service and
• groups of prices often move its global level supply, distribution,
proportionally to each other and and post-sales activities.
when this relation is very clear • the sequence of all functional
among different markets it is said activities required in the process of
that the markets are integrated. value creation involving more than
• the unification of different markets one country.
into one, allowing for the free
movement of goods and services.

TWO MAJOR CATEGORIES OF GLOBAL

VALUE CHAIN
IMPACT OF MARKET INTEGRATION
1. PRODUCER-DRIVEN
• has a profound impact on global
trade and economy. • have high barriers
o leads to greater • many commodity chains require
synchronization in price capital or technology-intensive
movements, a wider range of production and economies of scale.
suppliers and commodities, • The value chain is mostly
and improved market coordinated by the producers and
efficiency. the capacity of the distributors .
o helps global trade flourish by 2. BUYER-DRIVEN
making the entire world a
single large market where • have low barriers
suppliers can access a • Producers are bound to the
broader set of consumers, and decisions of buyers through the
consumers enjoy a wider functions of design and marketing.
choice of products.

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THREE MAIN DRIVERS OF ECONOMIC ELECTRONIC COMMERCE – changes in

GLOBALIZATION IN THE LATTER HALF OF THE business organization, market structures,
20TH CENTURY government regulations, and human
experience.
1. Investment by transnational corporations

2. International trade
TWO MOST IMPORTANT TYPRS OF E-
3. Internet COMMERCE

1. BUSINESS-TO-CONSUMER (B2C) MARKETS

1. INVESTMENT-BASED GLOBALIZATION
• the transfer of goods and/or services
• All invested capital in the world that to individual consumers (a retail
is owned by non-nationals. model).
• due to the constant striving on the • transactions are conducted directly
part of capitalists to accumulate between a company and consumers
more capital who are the end-users of its products
or services.
2. TRADE-BASED GLOBALIZATION
2. BUSINESS-TO-BUSINESS (B2B) MARKET
• On a national scale - represents the
proportion of all production that • Products and services are sold to
crosses the boundaries of a country. other businesses rather than to the
• the long-distance and global general public.
exchange of commodities has • Businesses use these products and
increased (or decreased). services as components of their own
goods for sale.
3. DIGITAL GLOBALIZATION

• flow of data and information around

the world. THE RISE OF GLOBAL CORPORATIONS
• Access to the internet has created a
new platform for users to exchange • A global corporation, also known as
not just information but also increase a global company, is coined from
trade. the base term ‘global’, which means
all around the world.
• It makes sense to assume that a
global company is a company that
does business all over the world.

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HOW CONTEMPORARY GLOBAL DIFFERENCE BETWEEN A TNC AND MNC

CORPORATIONS FUNCTION
TRANSNATIONAL MULTINATIONAL
1. INTERNATIONAL COMPANIES CORPORATION COMPANY (MNC)
(TNC)
• These companies have no foreign type of multinational Controls production
direct investments and make their corporations.
product or service in their home gives decision- Delivers services
country. making, R&D, and facilities
marketing powers to
• They are exporters and importers.
each individual
2. MULTINATIONAL COMPANIES foreign market.
At least 2 countries
• operating in several countries but
managed from one country (their
DIGITIZATION is transforming the classic
home country).
value chain of manufacturing focused on
• focus on adapting their products and
innovation in which:
services to each individual local
market. 1. Product design and innovation are
replaced with driving innovation through
3. GLOBAL COMPANIES
digital product design.
• have investments in dozens of
2. Labor-intensive manufacturing is
countries but maintain a strong
replaced by digitizing the factory shop
headquarters in one - their home
floor.
country.
• business does not adapt to local 3. Supply chain management is replaced
norms - imposes its existing business by globalizing through digital supply chain
model in the country. management.

4. TRANSNATIONAL COMPANIES 4. Marketing sales and services is replaced

by digital customization.
• have invested in foreign operations,
have a central corporate facility but
give decision-making, research and
development (R&D), and marketing
powers to each individual foreign
market.

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• Drafted in 1945, obligates member

LESSON 4
states to implement Security Council
GLOBAL INTERSTATE SYSTEM decisions.

REGIONAL COMMISSIONS
INTERSTATE - refers to connections or
existence between two or more states, Groups of officials from various countries
particularly in the U.S. focused on economic and social
development.
INTERSTATE SYSTEM - a framework for
international relations characterized by • ECA - Economic Commission for
systematic interconnectedness that Africa
influences social continuity and change. • ECE - Economic Commission for
Europe
INTERSTATE RELATIONS - authoritative
• ECLAC - Economic Commission for
actions and commitments between
Latin America and the Caribbean
governmental authorities of different
• ESCAP - Economic and Social
states, either bilaterally or through
Commission for Asia and the Pacific
international organizations.
• ESCWA - Economic and Social
GLOBAL INTERSTATE SYSTEM - encompasses Commission for Western Asia
the entire system of human interactions,
structured politically as a system of
competing and allying states, central to
SELECTED INSTITUTIONS ASSOCITED WITH
the field of International Relations.
WORLD TRADE

WORLD BANK (WB) - aims to reduce

INSTITUTIONS THAT GOVERN NATIONAL poverty by lending to poorer countries and
RELATIONS improving living standards.

INTERNATIONAL BANK FOR

RECONSTRUCTION AND DEVELOPMENT
History of UNITED NATIONS (IBRD) - provides loans to middle-income
countries for economic development.
• coined by President Franklin
Roosevelt in 1942, established post- INTERNATIONAL DEVELOPMENT
World War II to prevent future ASSOCIATION (IDA) - offers loans and
conflicts, succeeding the ineffective grants to boost economic growth and
League of Nations. reduce inequalities, focusing on the
poorest countries.

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INTERNATIONAL FINANCE CORPORATION FOOD AND AGRICULTURE ORGANIZATION

(IFC) - provides loans to private sectors in OF THE UNITED NATIONS (FAO) - leads
developing countries to create market efforts to defeat hunger and achieve food
opportunities. security, enhancing agricultural
productivity and sustainability.
MULTILATERAL INVESTMENT GUARANTEE
AGENCY (MIGA) - promotes Foreign Direct UNITED NATIONS EDUCATIONAL, SCIENTIFIC
Investment (FDI) in developing countries, AND CULTURAL ORGANIZATION (UNESCO) -
offering political risk insurance. strengthens global education systems and
promotes gender equality in education.
INTERNATIONAL CENTRE FOR SETTLEMENT OF
INVESTMENT DISPUTES (ICSID) - administers WORLD HEALTH ORGANIZATION (WHO) -
international investment disputes and addresses public health issues, focusing on
provides arbitration services. disease eradication and health research.

ORGANIZATION FOR ECONOMIC

COOPERATION AND DEVELOPMENT (OECD)
- an intergovernmental organization that OTHER SPECIALIZED INTERNATIONAL
stimulates economic progress and world INSTITUTIONS
trade.
INTERNATIONAL CIVIL AVIATION
INTERNATIONAL MONETARY FUND (IMF) - ORGANIZATION (ICAO) - ensures safe and
fosters global monetary cooperation and orderly growth of international civil
financial stability, promoting sustainable aviation.
economic growth.
INTERNATIONAL MARITIME ORGANIZATION
WORLD TRADE ORGANIZATION (WTO) - (IMO) - responsible for shipping safety and
regulates international trade, aiming to preventing marine pollution.
raise living standards and improve lives
INTERNATIONAL TELECOMMUNICATION
through trade.
UNION (ITU) - connects people globally
through ICTs and develops technical
standards.
SPECIALIZED AGENCIES
UNIVARSAL POSTAL UNION (UPU) - sets rules
INTERNATIONAL LABOR ORGANIZATION for international mail exchanges and
(ILO) - focuses on labor standards, social improves service quality.
protection, and work opportunities,
WORLD METEREOLOGICAL ORGANIZATION
promoting social justice.
(WMO) - authoritative voice on weather,
climate, and water resources.

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WORLD INTELLECTUAL PROPERTY INTERNATIONAL ACTORS IN GLOBAL

ORGANIZATION (WIPO) - develops an GOVERNANCE
effective international intellectual property
system to foster innovation. 1. States

INTERNATIONAL FUND FOR AGRICULTURAL 2. International Organizations (e.g., ASEAN)

DEVELOPMENT (IFAD) - empowers rural
populations to achieve food security and 3. Civil Society (e.g., NGOs like
Greenpeace)
improve livelihoods.

UNITED NATIONS INDUSTRIAL DEVELOPMENT 4. Market (e.g., Global Corporations)

ORGANIZATION (UNIDO) - promotes
industrial development for poverty
reduction and sustainability.
THE UNITED NATIONS
UNITED NATIONS WORLD TOURISM
AS A GLOBAL GOVERNANCE ACTOR
ORGANIZATION (UNWTO) - promotes
sustainable tourism as a driver of
• Universal membership – 193 states.
economic growth and development.
• International Bureaucracy –
comprises six main organs.
• Acts as a mechanism for information,
LESSON 5 action, and conflict management.

GLOBAL GOVERNANCE

SIX MAIN ORGANZ OF THE UNITED NATIONS

DEFINITION 1. GENERAL ASSEMBLY

• Main deliberative body with all

• the collective laws, norms, policies,
member state.
and institutions that manage trans-
• Committees focus on various issues
border relations among various
(disarmament, economic, social,
actors, including states, cultures,
etc.).
citizens, intergovernmental and non-
governmental organizations, and the 2. SECURITY COUNCIL
market.
• operates as a rule-based order • Maintains international peace and
without a central authority, meaning security.
there is no global government.

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• Composed of 15 members, including 2. PROTECT HUMAN RIGHTS

5 permanent members (China,
• a key purpose and guiding principle
France, Russia, UK, USA).
of the organization.
3. ECONOMIC AND SOCIAL COUNCIL
3. DELIVER HUMANITARIAN AID
(ECOSCO)
• End hunger, achieve food security
• Coordinates economic and social
and improved nutrition.
work of the UN.
• Ensure inclusive and equitable
• Promotes economic growth and
quality education.
human rights.
4. PROMOTE SUSTAINABLE DEVELOPMENT
4. INTERNATIONAL COURT OF JUSTICE
• development that promotes
• Settles legal disputes between
prosperity and economic
nations.
opportunity, greater social wellbeing,
• Composed of 15 judges elected for
and protection of the environment.
9-year terms.
• offers the best path forward for
5. SECRETARIAT improving the lives of people
everywhere.
• Administrative body led by the
Secretary-General. 5. UPHOLD INTERNATIONAL LAW
• Manages UN operations and staff.
• justice and respect for the
6. TRUSTEESHIP COUNCIL obligations arising from treaties and
other sources of international law
• Promotes self-governance and
can be maintained.
independence for dependent
territories.

GAPS OF THE 21ST CENTURY IN GLOBAL

GOVERNANCE
FUNCTIONS OF THE UNITED NATIONS
MANAGING KNOWLEDGE: Addressing
1. MAINTAIN INTERNATIONAL PEACE AND
complex global issues beyond state
SECURITY
capacity.
• The UN does this by working to
DEVELOPING NORMS: Establishing new
prevent conflict.
behavioral norms through international
cooperation.

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FORMULATING RECOMMENDATIONS: ASEAN SECRETARY GENERAL: Appointed for

Creating policies for potential a non-renewable five-year term.
contingencies.
ASEAN COORDINATING COUNCIL: Prepares
INSTITUTIONALIZING IDEAS: Facilitating joint meetings and coordinates implementation
action and problem-solving. of agreements.

COMPLIANCE: Ensuring adherence to ASEAN COMMUNITY COUNCIL: Focuses on

international laws and regulations. political-security and economic activities.

THE ASSEMBLY: Composed of all ASEANSAI

members; highest decision-making body.
ASSOCIATION OF SOUTHEAST ASIAN
NATIONS (ASEAN)
FOUR ASEAN COMMITEES
• Established on August 8, 1967, in
Bangkok, Thailand. 1. Strategic Planning Committee
• Founding members: Indonesia,
Malaysia, Philippines, Singapore, 2. Rules and Procedures Committee
Thailand. 3. Knowledge Sharing Committee

4. Training Committee

AIMS AND PURPOSES

• Accelerate economic growth. MEMBER STATES

• Promote regional peace and
stability. • Brunei Darussalam • Vietnam
• Provide mutual assistance in training
• Cambodia
and research.
• Foster cooperation with international • Indonesia
organizations.
• Laos

• Malaysia
ASEAN’s ORGANIZATIONAL STRUCTURE
• Myanmar
ASEAN SUMMIT: Composed of heads of • Philippines
member states; supreme policy-making
body. • Singapore

• Thailand

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POST-COLD WAR
LESSON 6
• After the Cold War, the Second
GLOBAL DIVIDES – THE NORTH AND THE
World classification became
SOUTH
obsolete.
• Third World Countries = Impoverished
States
GLOBAL DIVIDES • First World Countries = Rich and
Industrialized Countries
• A socio-political and economic
divide between rich northern
countries (Global North) and poor
GLOBAL NORTH-SOUTH DIVIDE
southern countries (Global South).
• Nations can transition to the North as
BRANDT LINE – a geographical line
they develop economically,
distinguishing the Global North (More
regardless of their geographical
Economically Developed Countries -
location.
MEDCs) from the Global South (Less
Economically Developed Countries -
LEDCs).
HISTORICAL CONTEXT
• NORTH: Developed economies,
COLD WAR ERA higher life expectancy, better
literacy rates.
• A period of ideological conflict post-
• SOUTH: Developing economies,
WWII, characterized by capitalism
higher poverty rates, lower life
vs. communism.
expectancy, and literacy.

THREE DISTINCT POLITICAL AND ECONOMIC

GLOBAL NORTH
BLOCS
• Comprises developed countries
FIRST WORLD: Developed, industrialized
primarily in the Northern Hemisphere.
capitalist countries (e.g., USA, Western
• Includes members of the G8 and
Europe).
four of the five permanent UN
SECOND WORLD: Former communist Security Council members.
countries (e.g., Russia, Eastern Europe). • 95% of the population has sufficient
food, shelter, and access to
THIRD WORLD: Developing countries (e.g., education.
parts of Africa, Asia, Latin America).

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GLOBAL SOUTH

• Comprises less developed countries

mainly in tropical regions and the
Southern Hemisphere.
• Acts as a source of raw materials for
the North.
• Only 5% of the population has
sufficient food and shelter.

DEVELOPMENT GAP

• The North-South divide is increasingly

referred to as the development gap,
emphasizing the disparity in
economic development.
• Focus on closing the gap between
rich and poor countries.

CLOSING THE GAP

The United Nations Millenium Development

Goals aimed at narrowing the divide
through:

• Improving education and

healthcare.
• Promoting gender equality.
• Ensuring environmental sustainability.

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