MIDTERM GECWORLD

• Globalization can be classified as either broad and inclusive or narrow and exclusive.
• broad and inclusive - variety of issues that deal with overcoming traditional boundaries

  e.g globalization is the onset of the borderless world
• narrow and exclusive - are better justified but can be limiting as well in the sense that its application are only to those who adhere to such definition
• the concept of globalization is complex and multifaceted as the definitions deal with economic, political or social dimensions
• integration - the process of combining two or more things into one
• fragmentation - the process of breaking something into small parts
• metaphors of globalization - solid metaphor (natural or man-made) and liquid metaphor
• solid metaphor or natural or man-made - refers to the barriers that prevent or make the movement of things difficult.
• liquid metaphor - refers to the increasing ease of movement of people, things, information and places in the contemporary world
• Homogeneity - increasing sameness in the world as cultural inputs, economic factors, and political orientations of societies expand to create common practices, same economies, and similar forms of government
• cultural imperialism - a given culture influences other culture
• cultural imperialism - Christianity brought to the Philippines by the Spaniards; The import of non-american products, images, technologies, practices and behavior that are closely associated with americans
• neoliberalism - a modified form of liberalism tending to favor free-market capitalism
• capitalism - an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state
• global economic crises - a product of economic of globalization where affected countries suffers financial crisis
• heterogeneity - the quality or state of being diverse in character or content
• cultural hybridization - refers to the convergence of different elements of various cultures.
• commodification of cultures - refers to areas in the life of a community which prior to its penetration by tourism have not been within the domain of economic relations regulated by criteria of market exchange.
• nationalism - identification with one's own nation and support for its interest, especially to the exclusion or detriment of the interest of other nations
• globalization - refers to the intensification and expansion of social relations and consciousness across world time and space
• Non-Governmental Organzations : Red Cross/Red Crescent, Doctors without Borders, UNICEF, UNHCR, WHO, WFP, World Bank, World Trade Organization, International Monetary Fund, World Economic Forum
• Intergovernmental organizations and international organizations : ASEAN, APEC, EU, UN, WTO, IMF, NATO, AU
• Reasons for globalization - profit, competition, improved transport, containerization, improved technology, growth of multinational companies, growth of global trading blocs, reduced tariff barriers, firms exploiting gains from economies of scale, global trade cycle
• silk road - the oldest known international trade route; one of the most profitable products traded through this network was silk
• manila acapulco galleon trade - The first time that americas were directly connected to asian trading routes; the start of age of globalization
• mercantilism - a system of global trade with multiple restrictions
• world bank - responsible for funding postwars reconstructions projects
• International Monetary Fund - Global lender of last resort to precent individual countries from spiraling into credit crises
• Kohls and Uhl defined market integration as a process which refers to the expansion of firms by consolidating addtional marketing functions and activities under a single management
• 3 types of market integration

  1. horizontal integration
  2. vertical integration
  3. conglomeration
• horizontal integration - occurs when a firm or agency gains control of firms or agencies performing similar marketing functions at the same level in the marketing sequence
• advantages of horizontal integration

  1. lower cost
  2. higher efficiency
  3. increased differentiations
  4. increased market power
  5. reduced competition
  6. access to new markets
  7. economics of scale
  8. economics of scope
  9. international trade
• disadvantage of horizontal integration

  1. destroyed value
  2. legal repercussion
  3. reduced flexibility
• vertical integration - occurs when a firm performs more than one activity in the sequence of the marketing process
• global market integration mean that price differences between countries are eliminated as all markets become one
• law of price - states that the prices of identical security, commodities or asset traded anywhere that are exchanged in two or more markets must be the same regardless of location and currency
• law of one price - a variation of "purchasing power parity" that relates to a single commodity as opposed to a basket of goods
• microeconomics of globalization - refers to the myriad ways in which economic actors may become also inserted into the global economy indirectly, through their relations with other economic agents within local, regional, and national markets.
• example of microeconomics - demand, supply, prices, elasticity, opportunity cost, consumer choice, productivity
• demand - influenced by income, preferences, prices and other factors such as expections