CONTEMP

• Globalization by authors

  • Martin Albrow and Elization King: Processes by which the people of the world are incorporated into a single world society
  • Anthony Giddens: The intensification of worldwide social relations which link distant localities in such a way that local happenings are shaped by events occurring many miles away and vice versa
  • Roland Robertson: The compression of the world and the intensification of the consciousness of the world as a whole
• Globalization originated in the late 1970s, and it was utilized for economic purposes in the early 1980s
• Charles Taze Russell developed the term Corporate Giants in 1897 which refers to largely national trust and other big businesses of that time
• International Monetary Fund lists 4 fundamental aspects of globalization: Trade & transactions, Capital & Investment, Migration of Knowledge, Dissemination of Knowledge
• Globalization was prevalent in the academic institutions

  2017
• 3 main Categories of Globalization

  • Political Globalization
  • Cultural Globalization
  • Economic Globalization
• International Economy


  • Distinguished and measured differently from national economies
• Global Economy


  • Transfer of commodities and services across international borders using monetary units, concerns production finance, markets, technology, organizational regimes, institutions, corporations, and labor
• Borderless society: Term globalization was used to define a borderless society that refers to international migration
• Historical Foundation of the Term Globalization
• Globalize: The term globalization originates from the term globalize, which appeared as a noun in an article towards new education
• Theodore Levitt is credited with coining the term globalization in an article: Globalization of Markets in the late 1980s. He popularized the term by bringing it to the business world
• Used in every field of study

  2018
• Nature of Globalization

  • Conglomerate: Pagsasama-sama ng iba’t ibang product sa iisang lugar
  • Copyright: Credits to the owner
  • Trademark: A unique symbol or word(s) used to represent a business or its products, binebenta ng bilyong halaga
  • Patent: Intellectual property that gives its owner the legal right to exclude others from making, using, or selling, protects the product from the process of making it by others
  • Monopoly: A single seller or producer that excludes competition from providing the same product, unique product in the market
  • Push factor: Low income
  • Pull Factor: High income
  • Theory of Comparative Analysis by David Ricardo: Countries that are good at producing particular goods are better off exporting it to other countries that are less efficient at producing that goods, e.g: mga products ng Pilipinas, like oil and bananas na inexport sa ibang bansa
• World Economy

  • The total of the data from each individual country
• Market Integration


  • A phenomenon in which marketplaces for products and services that are connected to one another in some way exhibit comparable patterns of price increases or decreases, the interconnectivity of prices among different locations or related goods, Vertical integration: involves the acquisition of business operations within the same production vertical (e.g: isang company pero mara
• Vertical integration


  Involves the acquisition of business operations within the same production vertical
• Connected services


  Services that are connected to one another in some way exhibit comparable patterns of price increases or decreases
• Conglomerate


  Bounded by licensing agreement, many businesses under one company with various products
• International Monetary Fund (IMF) promotes global economic growth and financial stability, encourages international trade, and reduces poverty
• World Bank Group works with developing countries to achieve equitable and sustainable economic growth and find solutions to global problems
• Short term loans are temporary financial assistance
• European Bank for Reconstruction and Development provides project financing for banks, industries, and businesses in Europe
• IMF provides temporary financial assistance to member countries to help ease balance of payments adjustments
• Asian Development Bank is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific
• Michael Porter is a Harvard University professor
• Very long-term loans have maturities of 30-40 years and funding comes from direct contributions by governments in donor countries
• African Development Bank improves living conditions and mobilizes resources for economic and social progress in African countries
• Interconnectivity of prices

  Prices among different locations or related goods
• Multilateral Development Banks (MDBs) provide loans and grants to member nations to fund projects that support social and economic development
• Horizontal integration


  An expansion strategy that involves the acquisition of another company in the same business line
• International Financial Institutions (IFIs) play a central role in helping to fund activities in developing countries that support sustainable, climate-resilient, and low-carbon development
• Regional Development Banks (RDB) provide financial and technical assistance for development in low- and middle-income countries within their regions
• MDBs provide financing for development to developing countries through long-term loans at interest rates below market rates
• Inter-American Development Bank supports the economic and social development of Latin America and Caribbean countries
• Long term loans have maturities of up to 20 years and funding comes from international capital markets
• Global Corporation characteristics


  • Large company operating in many countries, example: Mcdo restaurants
• Global businesses


  • Have a strong headquarters in one country but investments in multiple foreign locations, including manufacturing facilities or sales offices
• International Company

  • Nestle: a Swiss multinational food and beverage company that operates in numerous countries
• Corporation


  • McDonald's