The Contemporary World

• We all study history and it makes us believe that the events in the past have something to do with the present, then we should also study the present which is relevant to us
• Globalization


  The expansion and intensification of social relations and consciousness across world-time and world-space
• Globalization


  • Expansion - formation of various connections in social, political, economic, cultural, and technological
  • Intensification - acceleration or maintaining these affiliations and connections globally
• Globalism


  A belief system or ideology that promotes a global community with shared norms, values, and governance. It advocates for the globalization of markets, international cooperation, and the dissemination of beliefs and ideas
• Globality


  A future social condition where existing political borders and economic barriers become irrelevant. Envisions a future state of extensive global interconnections that will continue to evolve
• Our study of the process of globalization must be inherently interdisciplinary so that we can accurately understand the social, economic, political, and cultural processes that shape globalization
• Parochial outlook


  A person who only looks at their community's problems without considering the wider context of society
• Close-minded


  Someone who focuses on their country's issues without analyzing the larger global context
• Sociological imagination


  Emphasizes the interconnectedness of individual lives and societal history. Defines "troubles" as personal challenges and "issues" as larger social challenges
• Personal troubles


  Affect individuals within their immediate relationships
• Public issues


  Extend beyond personal control
• Public issues


  • Homelessness
  • Joblessness
  • Crime
• The sociological imagination challenges the perception of personal problems as isolated issues, highlighting the influence of social norms, habits, and expectations
• Economic globalization


  The expanding interdependence of world economies, attributed to the growing scale of cross-border trade, the flow of international capital, and the wide and rapid spread of technology
• Economic globalization is the process of making the world economy an 'organic system' by extending transnational economic processes and relations to more countries, thereby deepening global economic interdependencies
• Economic globalization is a historical process, the result of human innovation and technological progress
• Early historical traces of exchange

  • Homo sapiens' migration from Africa to populate the rest of the world
  • Silk Road (Asia, Europe, Africa)
  • Discovery of America and sea route to India (Late 15th Century)
  • Establishment of Galleon Trade (1571)
  • Adoption of the gold standard (1867)
• Gold standard


  Functioned as a fixed exchange rate regime, but proved to be restrictive, compelling countries to back their currencies with fixed gold reserves
• The recovery of the United States during World War II began when they abandoned the gold standard, allowing for increased spending to revive their economy
• 20th century to current - Transport Revolution (Golden Age of Globalization)


  • Fiat currencies replace the gold standard, allowing governments flexibility in managing economies
  • Establishment of International Monetary System (IMS) - facilitating economic globalization through internationally agreed rules, conventions, and institutions
• International Monetary Systems


  • Gold Standard
  • Bretton Woods System
  • European Monetary System (EMS)
• Ongoing economic integration: Trade patterns evolve, emphasizing the voluntary flow of goods to maintain relationships between and among states
• International trade


  The importance of international trade is pivotal for a country's economy, fostering interdependence among nations for exporting and importing, thereby sustaining the economic well-being of the home country
• Building a car


  • Parts from various countries, assembled in Korea, components and technology from Japan, design from Germany, minor parts from Taiwan, marketing services from the United Kingdom
• Foreign Direct Investment (FDI)


  Investment made by a company or an individual in one country into business interests located in another country, where the investor typically acquires a significant degree of influence or control over the foreign business entity
• Capital market flows


  The movement of funds between financial instruments, assets, or markets within the broader capital market, encompassing the stock and bond markets. Includes remittances from migration, often flowing from industrialized to less industrialized countries
• Migration (movement of labor)


  Growing mobility of labor, which can be beneficial to developing economies when educated migrants return home to establish new enterprises, but also poses challenges like "brain drain"
• Diffusion of technology


  The spread and adoption of new innovations or ideas across different contexts and populations, facilitated by innovations in telecommunications, information technology, and computing, but also creating a "digital divide"
• Four interconnected dimensions of economy

  • Globalization of trade and goods and services
  • Globalization of financial and capital markets
  • Globalization of technology and communication
  • Globalization of production
• Market integration


  A phenomenon in which markets of related goods and services experience similar patterns of price changes, indicating fewer trade barriers and more integration
• Five World Bank Group Institutions

  • International Bank for Reconstruction and Development (IBRD)
  • International Development Association (IDA)
  • International Finance Corporation (IFC)
  • Multilateral Investment Guarantee Agency (MIGA)
  • International Centre for Settlement of Investment Disputes (ICSID)
• Other international economic institutions

  • Nongovernmental organizations (NGOs)
  • Organization for Economic Co-operation and Development (OECD)
  • United Nations Development Programme (UNDP)
  • World Trade Organization (WTO)
• Governance


  The process of exercising political, economic, and administrative authority to manage national or international affairs, ensuring the distribution of power to manage public resources and provide solutions for existing problems
• Government


  The body, agency, or institution, invested with the power to manage a political unit, organization or more often, a State
• Elements of the state

  • People
  • Territory
  • Government
  • Sovereignty
  • Constitution
• Origin of the state

  • Divine right theory
  • Necessity or force theory
  • Social contract theory
• INTERNAL SOVEREIGNTY


  The power of the state to rule within its territory
• EXTERNAL SOVEREIGNTY


  The freedom of the state to carry out its activities without subjection to or control by other states. External sovereignty is usually referred to as independence
• CONSTITUTION


  A body of rules and principles in accordance with which the power of sovereignty is regularly exercised
• Nature and Purpose/Function of Constitution


  • Serve as the supreme or fundamental law
  • Establish the basic framework and underlying principles of government