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• Globalization

  The growing interdependence of the world's economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information
• Globalization


  The increasing connectedness and interdependence of world cultures and economies
• Globalization


  A process of expanding various sociocultural and socio-ecological processes from national to international and transcultural level
• Most definitions of globalization focus on the economic and trade dimensions, but it also has sociopolitical and sociocultural aspects
• Globalization


  Intensified transference or exchange of things across existing boundaries
• Globalization


  Primarily an economic process, the drive toward integration of economies throughout the world through trading and financial flows across countries' borders
• Aspects of Globalization


  • Economic
  • Financial
  • Ecological
  • Informational
  • Industrial
  • Cultural
  • Political
• Global Connectedness Index (GCI)


  A measurement of flows and interconnections of a country to other global players through exchanges in trade, capital, people, and information
• The world's level of connectedness in terms of international trade, capital, information, and people is at its peak in 2017
• The Netherlands is the world's most globally connected country, and Europe is the most highly globally connected continent
• Economies in Southeast Asia like Cambodia, Malaysia, Singapore, and Vietnam have exceeded expectations for global connectivity, particularly in trade flow
• Only 20 percent of the global economic output of the countries is exported from the home countries and only 3 percent of people are living outside the countries they were born in, showing that the material and social flows are more within and between countries rather than on a global level
• Factors driving globalization


  • Reduction of trade barriers
  • Infrastructural investments such as on modernization of transportation systems, and modern telecommunications
• Competing conceptions of globalization

  • Positive
  • Negative
• Positive view of globalization


  Highlights the positive economic impacts such as on the level of employment and balance of trade
• Negative view of globalization

  Highlights the negative impacts, specifically the inequity among countries and between the rich and the poor
• Important aspects of globalization

  • Trading
  • Capital Movement
  • Movement of People
• Trading


  International trading, or the economic exchanges and deals between countries, enabled by international fiscal payments where private banks and central banks play important roles
• The world saw an increase in world trade from 1971 to 1999, with the biggest increase in the export of manufactured goods, while the export of primary commodities such as food and raw materials often produced by poor countries declined
• Types of capital movement

  • Commercial Loans
  • Official flows
  • Foreign direct investment
• Movement of people


  People can migrate to other countries in search of better employment opportunities
• The number of Overseas Filipino Workers during the period April to September 2018 was estimated at 2.3 million
• Assumptions behind the pursuit of globalization

  • Rapid economic growth will lead to development
  • Trading will bring prosperity
  • Poor countries will benefit from borrowed funds
  • Poor countries need to catch up with rich countries by implementing economic policies toward economic integration
  • Removal of tariffs, quota can ease global trading and will lead to economic integration
• Critiques to the assumptions behind globalization include that economic growth is only one aspect of development, trading benefits some more than others, borrowing of poor countries is coupled with conditions that make them compromise spending for social services and welfare, and it will be difficult for poor countries to catch up because they are caught in unequal exchanges and underdevelopment
• Reduction of tariffs in the Philippines since the 1980s led to unfair competition of local industries with imports, resulting in the death of several domestic industries and massive unemployment
• Institutions and actors shaping economic globalization

  • International Financial and Trade Institutions
  • Transnational Corporations (International Businesses)
  • United Nations agencies
  • Regional Organizations such as the ASEAN
• Role of World Bank

  Facilitate investment of capital for member countries, fund large-scale projects, and implement Structural Adjustment Policies (SAPs) that require governments to reduce spending for social services, prioritize repaying debts, increase exports, provide subsidies for foreign export-oriented firms, and remove tariffs for imports
• Role of International Monetary Fund (IMF)

  Provide short-term emergency loans and help bring enormous flow of foreign money through loans and speculative investment
• Role of World Trade Organization (WTO)


  Create rules for global trade and investment, aim to reduce tariffs, create agreements that push governments to relax regulations on environment, food safety, and product quality, and encourage countries to deregulate economies