Contemporary world

• Globalization refers to changes in societies and the world economy due to increased trade and cultural exchange
• Embodied Globalization involves the movement or migration of people
• Agency-Extended Globalization deals with the dispersion and exchange of agents or representatives of various institutions, politics, and organizations
• Object-Extended Globalization involves the mobility of goods, commodities, and other objects of exchange such as machinery, money, and food items
• Disembodied Globalization covers the diffusion of ideas, knowledge, and information such as Confucian philosophy and good study habits across the world
• Economic Globalization primarily refers to international business, covering all contracts and negotiations involving economic resources, including human power and capital
• Sociocultural Globalization has two components:

  • Cultural Globalization: the spread of ideas, values, and meanings across countries
  • Social Globalization: covers the diffusion of beliefs, practices, and issues concerning population growth, media urbanization, tourism, and education
• Political Globalization involves institutions, public policies, and practices that cut across national borders to facilitate international agreements and transactions
• Natural Environment Globalization concerns the environment where the interaction of living species takes place
• The global economy refers to the interconnectedness of worldwide economic activities between numerous countries
• Goods are products made to be sold, while services are work done or duties performed by other people
• Traditional Economy is a system where economic activities are affected by ritual, custom, or habit, like subsistence farming and bartering
• Command Economy is organized around a central authority making major economic decisions, like what products are made and how much is produced
• Market Economy relies on supply, demand, and prices to determine economic decisions
• Mixed Economy is a mixture of both market and command economy
• Primary industries take natural resources from the earth, while secondary industries process raw materials into finished products
• Tertiary industries exchange and market products of primary and secondary industries, like restaurants and supermarkets
• Quaternary industries are concerned with research, information gathering, dissemination, and administration
• Trade barriers are restrictions on international trade imposed by the government to protect local industries
• Tariffs are taxes imposed by the government on imported goods or services to raise costs for consumers
• Non-tariff barriers restrict trade through measures other than tariffs, like quality and content requirements for imported goods
• Quotas limit the quantity or value of specific goods and services that can be imported over a certain period to reduce competition for local goods
• Voluntary Export Restraints are agreements between countries to limit the number of imports
• Global trade benefits include developing gains, improving the standard of living, accelerating economic development, and generating foreign exchange earnings
• Global Governance is governing relationships that transcend national frontiers without sovereign authority
• Governance of Peace, Security, and Conflict Resolution involves inclusive means of operating, participatory systems, accountability, and systemic capacity for physical security and human development
• Governance of Security deals with complex security problems like terrorism and cyber threats, governing security in partnerships and networks with public and private actors
• Governance of Conflict Resolution integrates conflict management into routine policies, involving developing leaders, effective institutional structures, fair dispute resolution processes, and conflict management procedures
• Conflict management systems are institutionalized approaches providing routine and predictable procedures for managing differences and reaching fair decisions on mutual concerns
• Governance of Science involves human choice in scientific research governance exercised at various levels, from individual scientists to citizens lobbying for research priorities
• Governance of Education impacts student and teacher success by defining and regulating relationships within and between educational institutions
• Governance of Information is the management of information balancing use and security, aiding legal compliance, operational transparency, and reducing legal discovery costs
• Global challenges like "Nuclear weapons" and "Climate change" require universal cooperation and motivate political actors to address them for future generations' survival under decent conditions
• Market integration is the process of expanding firms by consolidating additional marketing functions and activities under a single management
• Market integration occurs when prices among different locations or related goods follow similar patterns over a long period of time
• Groups of goods often move proportionally to each other in market integration
• Horizontal integration:

  • Occurs when a firm or agencies perform similar marketing functions at the same level in the marketing sequence
• Vertical integration:

  • Occurs when a firm performs more than one activity in the sequence of the marketing process
  • Involves linking together two or more functions in the marketing process within a single firm or under a single ownership
• Conglomeration:

  • A combination of agencies or activities not directly related with each other
  • When operating under unified management, it may be termed a conglomeration
• Reasons for market integration:

  • To remove transaction costs
  • Foster competition
  • Provide better signals for optimal generation and consumption decisions
  • Improve security of supply