GE104 (Midterms)

• Globalization


  The process of world shrinkage, of distances getting shorter, things moving closer. It pertains to the increasing ease with which somebody on one side of the world can interact to mutual benefit with somebody on the other side of the world.
• Globalization has gained many connotations pertaining to progress, development and integration
• Globalization is seen by some as occurring through and with regression, colonialism and destabilization
• Metaphor for globalization


  Solid and Liquid
• Solidity


  • Barriers that prevent or make difficult the movement of things, or people; can be natural or man-made
• Natural Solids


  • Landforms and Bodies of water
• Man-made Solids


  • The Great Wall of China, The Berlin Wall, the "nine-dash line" used by China in the South China Sea
• Liquidity


  The increasing ease of movement of people, things, information, and places in the contemporary world
• Liquidity is the one increasing and proliferating today, so the metaphor that best describes globalization is Liquidity
• Flows in globalization


  The movement of people, things places and information brought about by the growing porosity of global limitations
• Flows in globalization


  • Foreign cuisines being consumed by Filipinos
  • Global financial crisis affecting regions worldwide
  • Poor illegal migrants flooding many parts of the world
  • Virtual flow of legal and illegal information
  • Job migration like Filipino communities abroad and Chinese community in the Philippines
• Globalization can be traced back to when humans first put a boat into the sea, and key events like the Roman conquest, voyages of Columbus and Magellan
• Notable changes that are origins of globalization today

  • Emergence of the US as global power (post WWII)
  • Emergence of Multinational Corporations (MNCs)
  • Demise of the Soviet Union and end of the Cold War
• Core claims of globalization backers and supporters

  • Globalization is about liberalization and global integration of markets
  • Globalization is inevitable and irreversible
  • Nobody is in charge of globalization
  • Globalization benefits everyone
  • Globalization furthers the spread of democracy
  • Globalization requires war on terror
• Prominent promoters of globalization

  • Thomas Friedman
  • Martin Wolf
  • Mustafa Akyol
  • Theodore Levitt
  • Fareed Zakaria
  • Lee Kuan Yew
  • Hillary Clinton
  • Emmanuel Macron
  • Jose Manuel Barroso
• Positive aspects of globalization

  • Multi-culturalism and multi-lingualism
  • Free trade
  • Cultural and educational exchanges
  • Migration
  • Global cooperation
• Multi-Culturalism and Multi-Lingualism


  • Free exchange of goods and services need swift communication, hence the need to learn different culture and as many language as possible
• Free Trade

  • Reduced costs on selling products almost worldwide provided huge profits for a number of big trans-national corporations, resulted in cheaper prices of some consumer goods such as: cell phones and computers
• Cultural and Educational Exchanges


  • The rise of multi-lingualism inevitably leads to the study of diverse cultures and eventually, more educational exchanges such as EU's Erasmus Mundus Program between universities of all countries
• Migration


  • (at least within EU member countries) citizens can freely visit and work in any country; and at least before the 2008 crisis hit, the Third World migrants can relatively easily find jobs in and eventually migrate to more developed countries
• Global Cooperation


  • Globalization's rules and mechanisms are created and governed by global entities such as WTO- where almost all countries are represented, and global institutions such as the United Nations encourage global cooperation on many issues ranging from climate change, poverty eradication and presently this pandemic Covid 19
• Linguistic Hegemony of English


  • As the US and the then very much UK- influenced the EU utilize English, (as the universal language) globalization compels other countries to use it as well, with some former colonies such as the Philippines and Malawi, even prioritizing it over their own national language
• Cultural Homogenization


  • Big corporations such as: fast food chains like McDonald's, consumer item giants like Nestle, and Hollywood film companies like Pixar, Marvel, and Disney dominate markets in many countries because of their enormous financial power and presence in almost every country
• Third World dependence on the First World


  • Despite globalization's obvious contribution to the successful leap of some countries from Third to First World status, more Third World countries complain that the current setup favors developed countries more, especially with regard to rules that prohibit developing countries from providing massive state subsidies or aid to their farmers – while EU heavily subsidies their agricultural sector, and the way global financial institutions fail to help many developing countries jumpstarting their industrialization
• Global Income and Wealth Inequality


  • As only the biggest corporations seem to benefit from stiff competition and unbridled free trade
• Tax Injustice

  • Under globalization, countries compete for foreign investment and are forced to lower corporate tax rates, thereby reducing the expected government income which can be used for social services that can shield the most vulnerable sectors from the negative effects of globalization
• Racism and Anti- Migrant sentiments


  • As corporations in many First World countries hire more migrants to save on wages, First World working-class citizens complain about being left behind in their own countries, hence partly fueling the rise of racism and anti-migrant sentiments
• Prominent Anti-or Alter-Globalization personalities

  • Alejandro Lichauco
  • Ha Joon Chang
  • Jose Ma. Sison
  • Joseph Stiglitz
  • Walden Bello
  • US President Donald Trump
  • US Senator Bernie Sanders
  • Pope Francis
  • Marine Le Pen
  • Venezuelan Pres. Hugo Chavez
• Reasons why globalization is more favorable to developed countries

  • Developed countries investments in developing countries earn profits which the former typically repatriate, rather than re- invest in the latter
  • Developed countries control multi -lateral financial institution such as: IMF, World Bank, and even the biggest private banks that are capable of bankrolling or frustrating any effort towards industrialization contemplated by progressive developing countries governments
  • Technology transfers on a massive scale seldom happens, hence developed countries tend to retain a monopoly on innovations vital to the growth of the manufacturing sector
  • The bulk price of the developing countries main exports (raw materials and semi-manufactured goods) is lower than the bulk price of their typical imports from developed countries (technology/machinery and high value products)
  • The migration of workers and professional from developing countries to the developed countries depletes the former's human resources which they need to free themselves from poverty and dependency
  • The education system of developing countries is aligned with the needs of developed/capital rich countries which are also typical destinations of migrant workers from the developing nations
• Economic globalization (UNCTAD definition)


  Closer integration of national economies through trade and financial flows as well as cross-border migration of people
• Four Freedoms of the European Union

  • Free movement of goods or products
  • Free movement of capital
  • Free movement of persons
  • Free movement of services
• Liberalization


  The abolition of tax on imported goods (tariff)
• Deregulation


  The lifting of strict banking and financial regulations aimed at encouraging investors to invest more and retain their ability to pull out their investments at any time with ease
• Liberalization and Deregulation are economic processes that typically require special laws and / or policies
• 20 nations signed General Agreement on Tariffs and Trade (GATT) which primarily aims to regulate international trade


  October 30, 1947
• In 1995, GATT was formally supplanted by the World Trade Center (WTO)
• The WTO-GATT describes itself as "the only global international organization dealing with the rules of trade between nations"
• The WTO-GATT was negotiated and signed by the bulk of the world's trading nations and ratified in their parliaments to help producers of goods and services, exporters, and importers conduct their business
• The WTO-GATT systems came under intense criticism in 2008 after a major financial crisis hit the United States, with the contagion reaching Europe and other parts of the world because of the strong financial and economic ties of countries under globalization
• Anti-globalization personalities and movements

  • Marine Le Pen
  • Nigel Farage
  • Indignados (outraged) of Spain
  • Occupy Movement in the US