Contemporay World Module 12

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LM-The Contemporary World with ASEAN Integration

Course Overview

Course Number
Course Code GE-SS 301
Descriptive Title The Contemporary World (with ASEAN
Integration)
Credit Units 3
School Year/ Term AY 2021-2022/ 1st Semester
Mode of Delivery Online/offline Learning
Instructor/s Anie Jane Paler Dugaduga
Course Description This course introduces students to the
contemporary world by examining the
multifaceted phenomenon of globalization.
Using the various disciplines of the social
sciences, it examines the economic, social,
political, technological, and other
transformations that have created an
increasing awareness of the
interconnectedness of peoples and places
around the globe. To this end, the course
provides an overview of the various debates in
global governance, development, and
sustainability. Beyond exposing the student to
the world outside the Philippines, it seeks to
inculcate a sense of global citizenship and
global ethical responsibility.
Course Outcomes At the end of the module, you must have:
1. Distinguish different interpretations and
approaches to globalization
2. Analyze various contemporary drivers of
globalization
3. Describe the emergence of global,
economic, political social and cultural systems
4. Understand the issues confronting
globalization
5. Articulate personal positions in various
global issues
6. Identify ethical implications of global
citizenships
7. Analyze contemporary news, events in the
context of globalization
8. Analyze global issues in relation to Filipinos
and the Philippines

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SLSU Vision A high quality corporate University of Science,


Technology, and Innovation
SLSU Mission SLSU will develop science, technology and
innovation leaders, produce high-impact
technologies from research and innovations;
contribute through sustainable development
through responsive community engagement
programs, and generate revenues to be self-
sufficient and financially viable.

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MODULE GUIDE

The modules are designed in order to address the flexible learning modalities in
higher education as instructed by the Commission on Higher Education (CHED). The
Contemporary World with ASEAN Integration consist of four modules with three topics
in each. The presentation of information was carefully planned so that optimum
learning shall take place given the modalities we have today.

To start the course module, you need to complete the pre-test structured by the
author of this module. The pre-test covered all topics of the course. You don’t need to
worry because pre-test will not be graded, just answer the test in order to determine the
level of understanding or prior knowledge to the subject.

Course module is divided into two terms, two modules for midterm and another
two for the final term. A separate examination shall be given to you to assess the
knowledge gained from the modules. Dates on the examination will be announced
accordingly.

Every topic contains learning outcomes that you must accomplished one in a
while. The presentation of topics used 4As Model to ensure a learner centered approach.
You must complete every activity provided to help yourself understand the topic easily.

Once done with the course module, a separate parallel post-test will be
accomplished by you to further evaluate the learning and the module itself. References
are provided for further research on your end.

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PRE-TEST
Direction: Answer the following questions carefully base on your own understanding.
Encircle the letter only.
1. A Swedish Journalist that define globalization as the process of world shrinkage, of
distance getting shorter, things moving closer.
a. Thomas Larsson
b. Al-Rhodan
c. Martin Khor
d. Bauman
2. The movement of people, places, and information brought by the growing porosity of
global limitations.
a. Flows
b. Solidity
c. Liquid
d. Gases
3. It refers to the 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.
a. Liquid and Gases
b. Homogeneity
c. Heterogeneity
d. Hybridization
4. It is a collection of cultural systems, belief system, and world views that establishes
symbols that relate humanity to spirituality and to moral values.
a. Religion
b. Belief
c. Norm
d. Ethics
5. Consider as the networking and expansion of once local products, beliefs, and practices
into universal products, beliefs, and practices often through technology.
a. Production
b. Globalization
c. Networking
d. Technology
6. Refers to the differences of either lasting differences or of hybrids or combinations of
cultures that can be produced through the different trans planetary processes.
a. Cultural Differentialism
b. Cultural Hybridization
c. Heterogeneity
d. Homogeneity

7. Emphasizes the fact that culture is essentially different and are only superficially affected
by global flows.
a. Cultural Differentialism
b. Globalization

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c Hybridization
d. Networking
8. A type of global migration that moved because they want to be and because they can afford
it.
a. Push factor
b. Tourists
c. Refugees
d. Vagabonds
9. They move because they are not faring well in their home countries and are forced to move
in the hope that their circumstances will improve.
a. Vagabonds
b. Migrant
c. Tourists
d. Globalization
10. It involves the flow of less-skilled and unskilled workers, as well as illegal immigrants
who live on the margins of the host society.
a. Migration
b. Refugees
c. Labor Migration
d. Vagabonds
11. An approach emphasizes the integration of local and global cultures.
a. Differentialism
b. Cultural Hybridization
c. Convergence
d. Global Culture
12. It is a process by which Western societies are dominated by the principles of fast food
restaurants.
a. McDonaldization
b. Globalization
c. McWorld
d. Civilization
13. A process wherein nations, corporations impose themselves on geographic areas in order
to gain profit and power.
a. Glocalization
b. Globalization
c. Imperialism
d. Hybridization
14. Refers to the political groups that are engaged in an “intensification of nationalism and
that leads to greater political heterogeneity throughout the world”.
a. McWorld
b. McDonaldization
c. Civilization
d. Labor Market
15. It means that it is much more difficult to tie culture to a specific geographic point of
origin.
a. Globalization
b. Deterritorialization
c. Cultural Hybridization
d. Cultural Convergence
16. Known as the Islamic community of believers.

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a. Ummah
b. Christianity
c. Religious community
d. Muslims community
17. It refers to “all attempts to make globalization more palatable to citizens”.
a. Counter-globalization
b. Managed-globalization
c. Regionalization
d. Globalization
18. A societal integration and the often-undirected process of social and economic
interaction.
a. Regionalization
b. Globalization
c. Religion
d. Collaboration
19. An Abrahamic monotheistic religion based on the life and teachings of Jesus of Nazareth.
a. Christianity
b. Islam
c. Hinduism
d. Buddhism
20. A historical period which mortality and fertility rates decline in a particular country or
region.
a. Global migration
b. Global demography
c. Epoch
d. Events
21. Use to describe a migrant community.
a. OFW
b. Illegal migration
c. Diaspora
d. Vagabonds
22. A community that utilize technology such as the internet.
a. Modern community
b. Virtual diasporas
c. Diaspora
d. Society

23. It is an Indian religion and dharma, or way of life.


a. Islam
b. Hinduism
c. Buddhism
d. Christianity
24. A former president of Third World Network once regarded globalization as colonization.
a. Martin Khor
b. Al-Rhodan
c. Thomas Larsson
d. Ritzer

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25. A sociologist who defines globalization as the debate and the debate is globalization.
a. Cesare Poppi
b. Chowdhury
c. Arjun Appadurai
d. Kumar

Module 1:
DEFINING GLOBALIZATION

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Topic 1:
INTRODUCTION AND METAPHORS OF GLOBALIZATION

Learning Outcomes

At the end of this Module, the students must have:


 Distinguished different interpretations and approaches of globalization
 Explained the conceptual metaphors of globalization

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 Determine the types of flows

Let’s start off!


Have a good warm up before exploring more about this topic. Say something about what is
“Globalization.”

GLOBALIZATION

Note: You need to complete the activity above so that it will be easy for you to understand
the discussion below. If you are done, we shall continue.

We’re getting there!

Let me ask you some questions from the previous activity that you have.

1. What will come up in your mind when you hear the word “globalization”?

2. Do you believe that globalization plays an important role in our lives? Why or why not?

3. What do think is the advantage/s of globalization? How about the disadvantage/s?

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Now, we explore!

To give you a concrete and substance understanding of the topic, together we will explore
more! Read the content of the lesson which will help you to understand about globalization
and etc.

Globalization
Globalization is a term used in the 20th century that refers to the process of trading goods
among nations. It described by the interaction, integration, and exchange among the
people, companies, and governments all over the world. The good exchanged include:
 Services
 Technology
 Investments
 Information
Globalization drives a country towards progress and development. It affects the nations as a
whole but in exchange, it damages smaller communities and societies.

Different Definitions of
Globalization
Globalization is a very important
Bauman, 2003 change, if not, the “most important”
The reality and omnipresence of
globalization make us see ourselves as
part of what we refer to as the “global
Albrow, 1996 age.” The internet, for example, allows
a person from the Philippines to know
what is happening to the rest of the
world simply by browsing Google.
It cannot be contained within a specific
time frame, all people, and all
situations.
Wrote that definitions suggest the
perspective of the author on the origins
Al-Rhodan, 2006 and geopolitical implications of
globalization. It is a starting point that
will guide the rest of any discussions. In
effect, one’s definition and perspective
could determine the concrete steps in
addressing the issues of globalization.
For example, if one sees globalization as

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positive, the person can say that it is a


unifying force. On the other hand, if it is
deemed as creating greater inequalities
among nations, globalization is
negatively treated.
Saw globalization as “the process of
world shrinkage, of distances getting
shorter, things moving closer. It
Thomas Larsson 2001 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”
Martin Khor, the former president of Regarded globalization as colonization
Third World Network (TWN) in
Malaysia
“globalization is a transplanetary
process or set of process involving
Ritzer, 2015 increasing liquidity and the growing
multidirectional flows of people,
objects, places, and information as well
as the structures they encounter that
are barriers to, or expedite those
flows…”
First perspective, “globalization is a
‘world of things’ that have ‘different
1996, Arjun Appadurai speeds, axes, points of origin and
termination, and varied relationships to
institutional structures in different
regions, nations, or societies’”
Second perspective. Globalization is the
debate and the debate is globalization.
One became part and parcel of the
Sociologist Cesare Poppi other.
“The literature stemming from debate
on globalization has grown in the last
decade beyond any individual’s
capability of extracting a workable
concept.
Third, globalization is reality. It is
changing as human society develops. It
has happened before and is still
happening today. We should expect it
to continue to happen in the future. The
future of globalization is more difficult
to predict.

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The literature on the definitions of globalization revealed that definitions could be


classified as either broad and inclusive or narrow and exclusive.

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METAPHORS OF
GLOBALIZATION

NARROW AND EXCLUSIVE in English


BROAD AND INCLUSIVE describes the
language, exclusivity is the limitation
opportunity by which people or factors
within a group, area or people. In terms
behind a certain development in a country
of globalization, narrow and exclusive
benefits as well. in a nutshell, broad and
means that the focus of the
inclusive globalization gives everyone a
globalization would be limited to the
chance to participate in a management in
country alone.
such a way that the perspectives or plans a
country have reflected in their policies.
This leads to a more secured opportunities
and benifits for everyone.

ADVANTAGES GLOBALIZATION
ADVANTAGES
1. Equal opportunities for evryone 1. Focuses on the development of the country
2. Secured opportunities for everyone 2. Enhancement of the policies in a country
3. Growth for the countries 3. Supported by people
4. development of the nations 4. Gives importance to the people and the
DISADVANTAGES cultures inside the country
1. Reshaping of government institutions to DISADVANTAGES
cater for everyone 1. Results to trade wars with other countries
2. Economic processes need to be recognized 2. Limited perspective
3. Social processes require reorganization 3. Failure to establish connections with other
4. Failure to focus on the country's own countries
people and policies

2.

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 Also refers to barriers that prevent


or make the movement of things
difficult.
 Furthermore, solids can either be
natural or man-made.
 Examples of natural solids are
landforms and bodies of water.
Man-made barriers include the
SOLIDITY Great Wall of China and Berlin Wall.
An imaginary line such as nine-dash
line used by the People’s Republic of
China in their claim to the Southern
China Sea is an example of modern
man-made solid.

 Liquidity: Increasing ease of


movement of people, things,
information, and places in the global
age.
 Gaseousness: Hyper-mobility of
people, things, information, and
places in the global age.
LIQUIDS AND GASES  Liquid phenomena not only move
easily, but once they are on the
move they are difficult to stop.
 For example, videos uploaded on
YouTube or Facebook are
unstoppable once they become
viral.

 Flows are the movement of people,


places, and information brought by
the growing “porosity” of global
FLOWS limitations (Ritzer, 2015)
 Closely related to the idea of
liquidity, and integral to it, is
another key concept in thinking
about globalization, the idea of
flows; after all liquids flow easily, far
more easily than solids.
 Because so much of the world has
“melted” and has become liquefied,
globalization is increasingly
characterized by great flows of

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increasingly liquid phenomena of all


types, including people, objects,
information, decisions, places, and
so on.
 Undoubtedly because of their
immateriality, ideas, images, and
information, both legal and illegal,
flow everywhere through
interpersonal contact and the
media, especially now via the
Internet.

TYPES OF FLOWS
 Globalization is not a one-way
process as concepts like
Westernization and Americanization
seem to imply.
 While all sorts of things do flow out
Multi-directional flows
of the West the United States to
every part of the world, many more
flow into the West and the US from
everywhere (e.g. Japanese
automobiles, Chinese T-shirts, i-
phones manufactured in China, and
so on.)
 Furthermore, all sort of things flow
in every conceivable direction
among all other points in the world.
 The fact is that global flows do not
occur in isolation from one another;
Interconnected flows many different flows interconnect at
various points and times.
 Take the example of the global fish
industry. That industry is now
dominated by the flows of huge
industrial ships and the massive
amount of frozen fish they produce
and which is distributed throughout
the world.in addition, these huge
industrial ships are putting many
small fishers out of business and
some are using their boats for other
kind of flows (e.g. transporting
illegal immigrants from Africa to
Europe).

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 Transplanetary processes not only


can complement one another, but
Conflicting flows often also conflict with one another
(and with much else).
 In fact, it is usually these conflicting
flows that attract the greatest
attention.
 In some cases, processes flowing in
one direction act back on their
source (and much else).
 This is what Ulrich Beck has called
the “boomerang effect”.
 In Beck’s work of boomerang effect
Reverse flows
takes the form of, for example,
pollution that is “exported” to other
parts of the world but then returns
to affect the point of origin.

Try this!
I believe that you have understood the topic. Now, kindly do the following activities.
Activity #1. Caricature of Globalization.
Direction: Create your generalization about globalization by having a caricature. And provide a short
detail about it.

Activity #2. Process Questions


Direction: Explain the following questions briefly but accurately.
1. What metaphors you are going to use in order to improve your own definition of globalization?
Enumerate at least three and explain one of them.
2. Give at least one concrete example in each type of flows.

Scoring Criteria
Content 10
Originality 5
Organization 3
Grammar 2
Total 20

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Topic 2:
GLOBALIZATION THEORIES AND DYNAMICS OF LOCAL AND
GLOBAL CULTURE

Learning Outcomes

At the end of this Module, the students must have:


 Determine the difference between globalization and regionalization;
 Distinguished the differences of different religions.

Let’s start off!


To gear you up with the topic ahead let us first unlock those unfamiliar words. Kindly look
the meaning of the following words in the dictionary and be able to use them in a sentence.

Write your definition and sample Sentence


here!
1. Heterogeneity

2. Homogeneity

3. Convergence

4. Hybridization

5. Monopolies

6. Imperialism

Note: You need to complete the activity above so that it will be easy for you to understand
the discussion below. If you are done, we shall continue.

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We’re getting there!


Before we explore more kindly answer first the following questions.

1. Are societies in the world becoming more similar (homogeneous) or more different
(heterogeneous)?

2. What do you think are the advantages and disadvantages of homogenization of culture?
How about heterogenization?

3. What do you think is the reason why Islam and Christianity are mostly incompatible with
each other?

Now, we explore!
Gain more knowledge about the Globalization theory, dynamics of local and global culture,
globalization of religion, and globalization and regionalization. Enjoy!

Globalization Theory

We have established the many definitions of and issues in defining globalization and the
metaphors that we can use to understand easily the concept. We also have looked into its origins
and history. This section will give you a glimpse of the important theories on globalization. We will
analyse globalization culturally, economically, and politically. It would be helpful to assert that the
theories see globalization as a process that increases either homogeneity or heterogeneity.

 Refers to the increasing sameness in


the world as cultural inputs, economic
factors, and political orientations of
HOMOGENEITY societies expand to create common
practices, same economies, and similar
forms of government.
 Homogeneity in culture is often linked
to cultural imperialism. This means, a
given culture influences other cultures.
For example, the dominant religion in
our country is Christianity, which was
brought to us by Spaniards. Another
example is Americanization, which was
defined by Kuisel (1993) as “the import
by non-Americans of products, images,

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technologies, practices, and behavior


that are closely associated with
America/Americans”.
 Pertains to the creation of various
cultural practices, new economies,
and political groups because of the
interaction of elements from the
different societies in the world.
 Heterogeneity refers to the
differences because of either lasting
differences or of hybrids or
HETEROGENEITY combinations of cultures that can be
produced through the different trans
planetary processes.
 Contrary to cultural imperialism,
heterogeneity in culture is
associated with cultural
hybridization. A more specific
concept is “glocalization” coined by
Roland Robertson in 1992. To him,
as global forces interact with local
factors or a specific geographic area,
the “glocal” is being produced.
Economic issues are not exempted
from heterogeneity.

DYNAMICS OF LOCAL AND GLOBAL CULTURE


 Emphasizes the fact that culture is
essentially different and are only
superficially affected by global flows.
CULTURAL DIFFERENTIALISM  The interaction of cultures is deemed
to contain the potential for
“catastrophic collision.” Samuel
Huntington’s theory on the clash of the
civilizations proposed in 1996 best
exemplifies this approach.
 Emphasizes the integration of local and
global cultures (Cvetkovic and Kellner,
1997).
 Globalization is considered to be a
creative process which gives rise to
hybrid entities that are not reducible to
either the global or the local. A key
concept is “glocalization” or the
CULTUTRAL HYBRIDIZATION interpenetration of the global and local
resulting in unique outcomes in
different geographic areas (Giulianotti
and Robertson, 2007)

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 Another key concept is Arjun


Appadurai’s “scapes” in 1996, where
global flows involve people,
technology, finance, political images,
and media and the disjuncture between
them, which lead to the creation of
cultural hybrids.
 Stresses homogeneity introduced by
globalization. Cultures are deemed to
be radically altered by strong flows,
CULTURAL CONVERGENCE while cultural imperialism happens
when one culture imposes itself on and
tends to destroy at least part of
another culture.
 One important critique of cultural
imperialism is John Tomlinson’s idea of
“deterritorialization” of culture.
Deterritorialization means that it is
much more difficult to tie culture to a
specific geographic point of origin.

THE GLOBALIZATION OF
Globalization
RELIGION
-is the networking and expansion of once local products, beliefs, and practices into universal
products, beliefs, and practices often through technology.

Religion
-is a collection of cultural systems, belief system, and world views that establishes symbols
that relate humanity to spirituality and to moral values

MOST KNOWN RELIGIONS ACROSS THE WORLD

 Christianity its deity is Jesus – 2.2 billion adherents—Holy Bible

 Islam the God is Allah-1.57 milliard adherents—Quran

 Hinduism- 811 million—many Gods

 Buddhism-380 million adherents—Buddha

Religion has entered the “information age” and has globalized at accelerating rates, in the
methods religions use for teaching and in belief systems.

Tools of uniting people all over the world on religious basis


 Books
 Movies
 Cell phone apps

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 Social networks
 Charity funds
 Special internet sites
 Religious schools

Religion epitomizes the definition of globalization due to the fact that it can be spread more
efficiently than ever before through the use of different technological tools such as, Facebook,
Twitter, YouTube, commercials, podcasts, cell phone apps and so much more. It is now possible
for any religion to spread beyond national borders, allowing even small new religious
movements to engage in overseas activities and leading to new unseen religious developments.

Expansion of terrorism on religious basis


 Videos and audios in the Internet of sermons read by missionaries which contain extremist
ideas, call for crimes, murders, terrorist attacks
 The possibility of communicating with anyone across the world and sharing ideas provoke
the spread of terrorists and expansion of their band

Conclusion
 Globalization has a great impact on religion. As people and cultures move across the globe,
as ideas are mobilized and transported by media technology, the religious globalization will
go on and on.
 It has its pro and cons. People should cope with the flow of info and choose their own
peaceful way.
 And to our mind, finally, the globalization will end in complete domination of one of them
over the rest.

GLOBALIZATION AND REGIONALIZATION


Globalization Regionalization
 It is the process international  It is the process of dividing an area
integration arising from the into smaller segments called regions
interchange of world views, products,  Example division of nation into states
ideas, and other aspects such as or provinces
technology etc.  Businesses also use regionalization as
management tool
 Promotes the integration of  Is precisely the opposite because it is
economies across state borders all dividing an area into smaller
around the world SEGMENTS
 Allows Co. to trade on international  Monopolies are more likely to
level so it allows free market develop
 Acceleration to multiculturalism by  Does not support
free and expensive movement of
people
 Community is more willing to come  Not get involved in the affairs of
to aid of a country stricken by a other areas.
natural disaster
 Driven advances in technology  Advanced technology is rarely
available in one country or religion

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Try this!
I believe that you have understood the topic. Now, kindly do the following activities.
1. Using Venn diagram kindly compare and contrast between globalization and
regionalization.
2. Draw a caricature which shows the reason why Islam and Christianity are incompatible
and provide a short explanation about it.

Scoring Criteria

Content 15

Originality 8

Organization 5

Grammar 2

Total 30

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Topic 3:

ORIGIN AND HISTORY OF GLOBALIZATION

Learning Outcomes

At the end of this lesson, you should be able to:


• Differentiate the five perspective regarding the origins of globalization
• Explain global migration and their implications to globalization
• Explain global demography and its effect to globalization

Activity- Let’s Read These


Read the quote from the famous Barack Obama then answer the following questions:
Globalization is a fact, because of technology, because of an
integrated global supply chain, because of changes in
transportation. And we’re not going to be able to build a wall
around that.
-Barack Obama

Analysis- Let’s Analyze

Answer the following questions:


1. What is globalization according to Barack Obama statement?
2. Do you agree with the quote? Why or why not? Explain

Introduction

This lesson generally adheres to the perspective that the major points of the beginnings of
globalization after the Second World War. Nevertheless, it would mean no harm to look at the five
different perspective regarding the origin of globalization.

Abstraction- Let’s Conceptualize

Hardwired

Nayan Chanda
Our basic human need to make our lives better that made globalization possible. Therefore, one
can trace the beginning of globalization from our ancestors in Africa who walked out from the said
continent in the late Ice Age.
Chanda mentioned that commerce, religion, politics, and warfare are the “urge” of people toward
a better life. There are respectively connected to four aspects of globalization and they can be
traced all throughout history: trade, missionary work, adventures and conquest.

Cycles

Globalization is a long-term cyclical process and thus, finding its origin will be a daunting task.
What is important in the cycles that globalization has gone through.

Epoch

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Six great epochs of globalization. These are also called “waves” and each has its own origin.

The following are the sequential occurrence of the epochs:

1. Globalization of religion (fourth to seventh centuries)


2. European colonial conquests (late fifteenth century)
3. Intra-European wars (late eighteenth to early nineteenth centuries)
4. Heyday of European imperialism (mid-nineteenth century to 1918)
5. Post-world War ll period
6. Post-Cold War period

Events

Specific events are also considered as part of the fourth view in explaining the origin of globalization.
If this is the case, then several points can be treated as the start of globalization.

• Argued that Roman conquests centuries before Christ were its origin. In an issue of the
magazine the Economist, it considered the rampage of the armies of Genghis Khan into
Eastern Europe in the thirteenth century.

• The voyages of discovery-Christopher Columbus’s discovery of America in 1942, Vasco da


Gama in Cape of Good Hope in 1498, and Ferdinand Magellan’s completed circumnavigation
of the globe in 1522.

• The recent years could also be regarded as the beginnings of globalization with reference
to specific technological advances in transportation and communication. Some examples
included the first transatlantic television broadcasts, the founding of the modern internet in
1988, and the terrorist attacks on the Twin Towers in New York.

Certainly, with this view, more and more specific events will characterize not just the origins of
globalization but also more of its history.

Broader, More Recent Changes

Recent changes comprised the fifth view. These broad changes happened in the last half of the
twentieth century. Scholars today point to these three notable changes as the origin of globalization
that we know today. They are as follows:

1. The emergency of the United States as the global power

2. The emergency of multinational corporations

3. The demise of the Soviet Union and the end of the Cold War

Through its dominant military and economic power after World War ll, the United States was able to
outrun Germany and Japan in terms of industry. Both Axis power and Allies fall behind economically
as compared to the new global power. Because of this, the United States soon began to progress in
different aspects like in diplomacy, media, and many more.

Before MNCs came into being, their roots were from their countries of origin during the eighteenth
to early nineteenth centuries. The United States, Germany, and Great Britain had in their homeland
great corporations which the world knows today. However, they did not remain there as far as their
production and market are concerned. For example, Ford and General Motors originated in the

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LM-The Contemporary World with ASEAN Integration

United States but in the twentieth century, they exported more automobiles and opened factories to
other countries.

More recent that the first two would be the fall of the Soviet Union in 1991. This event led to the
opening of the major part of the world for the first time since the early twentieth century. Many
global processes-immigration, tourism, media, diplomacy, and MNCs-spread throughout the planet.
This paved way for the so-called “free” world. China, even though the government remains
communist, is on its way to becoming a major force in global capitalism. Moreover, China is also
globalizing in terms of other aspects such as their hosting of the Olympics in 2008.

Global Demography

Demographic transition is a singular historical period during which mortality and fertility rates
decline from high to low levels in a particular country or region. The broad outline of the transition is
similar in countries around the world, but the pace and timing of the transition have varied
considerably.

The transition started in mid-or late 1700s in Europe. During that time, death rates and fertility
began to decline. High to low fertility happened 200 years in France and 100 years in the United
States. In other parts of the world, the transition began later. It was only in the twentieth century
that mortality decline in Africa and Asia, with the exemption of Japan. According to Maddison, life
expectancy in India was only 24 years in the early twentieth century while the same life expectancy
occurred in China in 1929 until 1931. Fertility decline in Asia did not begin until the 1950s and so on.
In the case of Japan, it was until the 1930s that “total fertility rate did not drop below five births per
woman”. This resulted in rapid population growth after the Second World War, affecting the age
structure if Asia and the developing world. Specifically, the baby boom in the developing world was
caused by the experienced baby boom that resulted from rising birth rate.

There was a reverse in global population shares during the twentieth century as Africa, Asia, Latin
America and Oceania had high levels of population growth rates. Population growth shows a more
remarkable shift: “between 1820 and 1980, 69.3 percent of the world’s population growth occurred
in Europe and Western offshoots. Between 1950 and 2000, however, only 11.7 percent occurred in
that region.

The United Nations projected the population growth will be shifted towards Africa. It is estimated
that by 2150, the regions’ share to the world population will be almost 20 percent, relatively much
greater that its share in 1820 and in 1900 six percent. Also, in 2150, there will be a projected
increase of two billion if we combine the population of Asia, Latin America and Oceania.

In terms of age structure, the overall trend in Japan and the West was downward until 1950. Their
dependency ration was close to 0.5. it only increased, although temporary, when the baby boom
after the Second World War occurred. Japan’s dependency ration, however, increased between
1888 and 1920. Its dependency ration is higher than the West between 1920 and the early 1950s. it
dropped in 1970 and later since its precipitous decline in childbearing during the 1950s and low
fertility rated in recent years.

The developing countries like India and the Philippines had higher dependency ration than the West
in 1900. A great increase in dependency ration was caused by the decline in infant and child
mortality and high levels of fertility, with its peak around 1970.

Dependency rations started to disappear because there is a decline in global birth rate. Furthermore,
the gap in fertility between the West and the less developed countries became smaller by the

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twenty-first century. Over the next 50 years, the case of dependency ratios of these two areas in the
world will be reversed. The aging of population will cause a rise in dependency ratio, starting in the
West.

Global Migration

The nuances of the movements of people around the world can be seen through the categories of
migrants- “vagabonds” and “tourists”. Vagabonds are on the move “because they have to be” they
are not faring well in their home countries and are forced to move in the hope that their
circumstances will improve. Tourists, on the hand, are on the move because they want to be and
because they can afford it.

Refugees are vagabonds forced to flee their home countries due to safety concerns. Asylum seekers
are refugees who seek to remain in the country to which they flee. Those who migrate to find work
are involved in labor migration. Labor migration is driven by “push” factors, as well as “pull” factors.
Labor migration mainly involves the flow of less-skilled and unskilled workers, as well as illegal
immigrants who live on the margins of the host society.

Migration is traditionally governed either by:

“Push” factors such as political persecution, economic depression, war, and famine in the home
country.

“Pull” factors such as a favorable immigration policy, a labor shortage, and a similarity of language
and culture in the country of destination.

Global factors, which facilitate easy access to information about the country of destination, also
exert a significant influence.

Many country faces issues of illegal migration. The United States faces a major influx of illegal
immigrations from Mexico and other Central American states. A fence is being constructed on the
US-Mexico border to control this flow of people. However, its efficacy is questioned and it is thought
that it will only lead illegal immigrant to adopt more dangerous methods to gain entry. In addition,
tighter border has also had the effect of “locking in” people who might otherwise have left the
country. Other countries with similar concerns about illegal immigration include Great Britain,
Switzerland, and Greece as well as countries in Asia.

A strong case can be made on the backlash against illegal immigrants. In the North, such immigrant
constitutes a younger workforce that does work which locals may not perform, and they are
consumers who contribute to growth. They also send remittances back to family members in the
country of origin, which improves the lives pf the recipients, reduces poverty rates, and increase the
level of education as well as the foreign reserves of the home country. The Philippines is the one of
the leaders when it comes to the flow of remittances, next to India and China.

The term “diaspora” has been increasingly used to describe migrant communities. Of particular
interest in Paul Gilroy’s conceptualization of the diaspora as a transnational process, which involves
dialogue to both imagined and real locales. Diasporization and globalization are closely
interconnected and the expansion of the latter will lead to an increase in the former. Today, there

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exists “virtual diasporas” which utilized technology such as the internet to maintain the community
network.

Application- Let’s Apply

1. In not more than two sentences, state the five different perspective regarding the origins of
globalization.

2. What do you think is the effect of a high dependency ratio in developed countries?

3. Is the heightened flow of people a unique feature of the current global era?

4. Has globalization facilitate or obstructed greater labor migration?

Scoring Criteria

Content 10

Originality 5

Organization 3

Grammar 2

Total 20

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MODULE

2
THE GLOBAL
ECONOMY

LESSON
1 Economic Globalization and Global Trade
2 Economic Globalization and Sustainable
Development
3 Theories of Global Stratification

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Module 2 THE GLOBAL ECONOMY

Students are the citizens of the country. They are also contributing the
economy. They study hard for their future. Mostly, they strive success due to
poverty. Once they completed the higher education, the society already expects
them to function well. For instance, after graduated, they will find a job. Once they
find a job, they will get out from poverty. After years of striving the success, they will
become one of the persons who will look for another job seekers who wants to get
out from poverty.

In this module, learners will get another fresh ideas about the global economy.
The Module 2 covers three (3) lessons. The first lesson talks about the economic
globalization and the global trade. Meanwhile, lesson two covers the sustainable
development. It also talks about the political and economic blocs. In addition, the
lesson three covers the theories of global stratification.

Lesson 1

Economic Globalization and Global Trade

Objectives:

At the end of this lesson, students must have:

 Identified the actors that facilitate economic globalization;


 Applied the economic globalization into real life scenario;
 Illustrated a stance on global economic integration;
 Categorized the raw materials of a particular product.

Activity

Direction: Complete the graphic organizers below.

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LM-The Contemporary World with ASEAN Integration

______

Who are the


_____
participants _____
in the
economy?

_____

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Example
What is
oftrade?
a Trade:
Trade

Analysis

Direction: Answer the following questions.

1. Explain why each participant give contributions to the economy?


2. You gave your own definition of a trade and its example. Enumerate at
least two (2) advantages and disadvantages, each.

Abstraction/ Discussion

Introduction

United Nations (UN) – tried to address the different problems.

Eight (8) Millennium Development Goals

Eradication of extreme poverty and hunger.

 Achieving universal primary education.


 Promoting gender and equality and women empowerment.
 Reducing child mortality.
 Improving maternal health.

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 Combating diseases (HIV/AIDS and malaria)


 Ensuring environmental sustainability.
 Global partnership for development

The nation’s living standards differ from each other around the globe. In the
Philippines, we have what we called poverty line or poverty threshold. It is when a
person living in poverty who earned less than ₱100, 534.00 a year, or around
₱275.00 a day. However, according to UN (2015), extreme poverty is a condition
characterized by severe deprivation of basic human needs such as food, safe
drinking water, sanitation facilities, health, shelter, education, and information. They
defined it as living on less than $1.25 per day.

In 2015, UN reported that 836 million people still live in extreme poverty, from
1.9 billion. Moreover, the World Bank predicted also that by 2030, the number of
people living in extremely poverty could drop to less than 400 million. However, most
people who have been lifted out of extreme poverty are still poor and being poor
comes with serious problems, from diseases to lack of water.

ECONOMIC GLOBALIZATION AND GLOBAL TRADE

Economic Globalization

The increasing interdependence of world economies as a result of the


growing scale of cross-border trade of commodities and services, flow of
international capital, and wide and rapid spread of technologies. It reflects the
continuing expansion and mutual integration of market frontiers, and is an
irreversible trend for the economic development in the whole world at the turn of the
millennium. (cited in Shangquan, 2000)

Two (2) Different Types of Economics

Protectionism

A policy of systematic government intervention in foreign trade with the


objective of encouraging domestic production. This encouragement involves giving
preferential treatment to domestic producers and discriminating against foreign
competitors. (McAleese, 2007 as cited in Ritzer, 2015, p. 1169)

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Trade protectionism usually comes in the form of quotas and tariffs. Tariffs
are required fees on imports and exports. For example, an A-Brand pen costs $1.00
in Country A. In Country B, it would be given $5.00 tariff. The pen would become
$6.00 in Country B. This policy was practiced in the sixteenth to until seventeenth
centuries and until the early years of Industrial Revolution.

Trade Liberalization

Also known as free trade.

Free trade agreements and technological advances in transportation and


communication mean goods and services move around the world more easily. In
other words, trade liberalization talks about goods (shoes and bananas), innovations,
and ideas.

For example, mobile phones have good consequences for everything


including reducing poverty. Mobile phones give access to education, information,
banking, and payment systems. It also helps the farmers get information and get the
best price for the crops they are producing.

Leapfrogging – the idea that countries can skip straight to more efficient and
cost-effective technologies that were not available in the past.

Fair Trade

The concern for the social, economic, and developmental well-being of


marginalized small producers. (Downie, 2007)

It aims for a more moral and equitable global economic system.

It is concerned with protection of workers and producers, establishment of


more just prices, engagement in environmentally sound practices and sustainable
production, creation of relationships, between producers in the South and consumers
in the North, and promotion of safe working environment.

Products such as coffee, tea, chocolate, wine, cotton, and bananas have
been exchanged in light of fair trade.

For example, in 2006 in America coffee chains such as Starbucks, spent $2.2
billion on certified products, which is greater than the preceding year. In turn, coffee

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LM-The Contemporary World with ASEAN Integration

growers get at least $1.29 per pound of coffee beans compared to the current
market price of $1.25.

SAQ

Direction: Answer the following questions.

1. Do you think the Philippines is harmed as other countries transfer their


activities to us through outsourcing?
2. In what ways do international organizations help our country’s economy?
3. Does the position of rich countries as giants in the economic chain
threaten the status of less developed countries in the global market? How?

Application

Follow the Product

The products that we consume and use – foods, clothing, and gadgets – are
part of our way of life. Globalization allows for a worldwide exchange of these
commodities and exposure to different cultures as well. This activity will allow the
students to investigate the origin and spread of the products and services sold in our
country. They will also be able to know the countries involved in the production,
distribution, and consumption of the products being sold and consumed in the
country. The following are the steps to accomplish this activity:

1. Each student will be selected to any of the following products being sold in the
Philippines. Select only one. The student shall choose a specific foreign brand
of the product.
a. Coffee
b. Sports Car
c. Laptop
d. Hamburger
e. Wristwatch
f. Shoes
g. Smartphone
h. Motorcycle
i. Bicycle

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2. List down the main ingredients or raw materials in manufacturing the chosen
product. Identify the corresponding country from which each ingredient or raw
material came from.
3. Identify the countries involved in the manufacturing of the chosen product.
Indicate the corresponding service the country does for the product (e.g.,
Costa Rica – planting of coffee beans).
4. Aside from the Philippines, list other countries in which the product is being
sold.
5. Cite the kinds of technology that made the creation of the product possible.
Consider communications and transportation.
6. Write one of the three statements about the creation of the product.
HAVE YOUR ANSWER HERE!

Scoring Criteria
Content 10
Originality 5

Organization 3
Grammar 2
Total 20

Lesson 2

Economic Globalization and Sustainable Development

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Objectives:

At the end of this lesson, students must have:

 Differentiated the stability and sustainability;


 Defined the global security;
 Differentiated the Global South from the Third World;
 Argued the given statement.

Activity

I. Technology
Direction: Below are graphic organizers. Give the advantages and
disadvantages of technology to the environment.

__________

__________ _________

Technology
(Advantages)

__________ _________

II. Industrialized Countries


Direction: Enumerate the industrialized countries world-wide.

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Industrialized
Countries

Analysis

Direction: Answer the following questions below.

I. Technology
1. Do people find ways to deal the disadvantages of the technology?
How?

2. Cite examples in dealing with the disadvantages through human beings


and environment.
II. Industrialized Countries
1. How can say that they are belong to the industrialized countries? What
are the proofs that they belong to that?

Abstraction/ Discussion

Economic Globalization and Sustainable Development

One of the downsides of the globalize trade is lack of sustainability or the


degree to which the earth’s resources can be used for our needs and even in the

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LM-The Contemporary World with ASEAN Integration

future. The development of our world today by using the earth’s resources and the
preservation of such sources for the future is called sustainable development. It has
to be ensured in and for the future generations. The relationships between
globalization and sustainability is multi-dimensional. It involves economic, political,
and technological aspects.

The world’s natural resources such as water and fossil fuel allows humanity to
discover and innovate many things. We were able to utilize energy, discovery of new
technologies, and make advancements in transportation and communication.

However, the development puts our environment at risk. Climate change


accelerates.

Environmental Degradation

Economic development was hastened by the Industrial Revolution. This is the


period in human history that made possible the cycle of efficiency (efficiency means
finding the quickest possible way of producing large amounts of a particular product).

It made buying easier of goods for the people, and there is an increase
demand of the goods. In addition, there was an increase of efficiency.

The cycle of efficiency harms the planet in many ways. For example, the
earth’s atmosphere is damaged by more carbon emissions from the factories around
the globe. Another example is that there is a destruction of coral reefs and marine
biodiversity as more wastes thrown into the seas and oceans.

Environmentalists argue that environmental issues should be given priority


over economic issues. In contrast, neoliberals see the efforts of the
environmentalists as serious hindrance to trade. However, some said that the two
approaches must be integrate.

There are challenges involved in implementing various measures to deal with


environmental problems. An example of this is the carbon tax and carbon neutrality.
It is difficult to find alternatives to fossil fuels. Barrionuevo (2007) stated that the use
of ethanol as an alternative to gasoline has am attendant set of problems. It is less
efficient and it has led to an escalation in the price of corn, which currently serves as
a major source of ethanol.

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Food Security

According to Breen (2016), the demand for food will be 60% greater that it is
today and the challenge of food security requires the world to feed 9 billion people by
2050.

Global Food Security

Delivering sufficient food to the entire world population.

It is the priority of all countries, whether developed or less developed.

The sustainability of society such as population growth, climate change, water


scarcity, and agriculture.

Challenge of Food Security

The protection of the environment.

Major Environmental Problem: Destruction of Natural Habitat

Industrial fishing has contributed to a significant destruction of marine life and


ecosystems.

The decline in the water supply because of degradation of soil and


desertification, has transformed what was once considered a public good into a
privatized commodity. The destruction of the water ecosystem may lead to the
creation of climate refugees, people who are forced to migrate due to lack of access
to water or due to flooding.

The use of persistent organic pollutants (POPs) has led to significant


industrial pollution.

Greenhouse gases, gases that trap the sunlight and heat in earth’s
atmosphere, contribute greatly to global warming. In turn, this process causes the
melting ice in the two different poles. This result to substantial flooding, reduction in
the alkalinity of the oceans, and destruction of existing ecosystems.

Electronic waste often dumped in developing countries.

Different Models and Agenda

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There are different models and agenda pushed by different organizations to


address the issue of global food security.

United Nations has set ending hunger, and promoting sustainable agriculture.

The World Economic Forum addressed the issue through New Vision for
Agriculture (NVA) in 2009 wherein public-private partnerships were established. This
partnership was launched to establish cooperation and encourage exchange of
knowledge among farmers, government, civil society, and the private sector in both
regional and national levels.

Economic Globalization, Poverty, and Inequality

Han Roslin, a Swedish statistician, said, “The 1 to 2 billion poorest in the


world who don’t have food for the day suffer from the worst disease, globalization
deficiency. They way globalization is occurring could be much better, but the worst
thing is not being part of it.”

Companies trying to outmaneuver their competitors is the result of economic


and trade globalization. Companies search for the cheapest place to make the
products while people search for the cheapest place to buy the products. In this
case, labor-intensive products are often produced in countries with the lowest wages
and the weakest regulations. As a result, for this process, it creates winners and
losers.

The winners are those corporations and their stockholders who earn more
profit, and consumers who get products at a cheaper price. In contrary, losers are
those high wageworkers who used to make the products. Their jobs moved
overseas. Low wage foreign workers are also losers in this situation. A lot of workers
are thrown into hazardous working conditions, although they paid above average
wages.

Multiplier Effect

It is an increase in one economic activity can lead to an increase in other


economic activities. For example, investing in local businesses will lead to more jobs
and more income. However, other people focus on working in foreign/ abroad
because they receive higher wages and protection. It happens to some countries

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LM-The Contemporary World with ASEAN Integration

because they do not have regulations that provide safe working conditions or protect
the environment.

Steps in the absence of regulation:

Public Awareness

The general public must have aware in their protections as a worker.


The company must protect their workers so that they will not be blasted by the
officials and the media.

Pro-Globalization

As developing economies grow, there are more opportunities for


workers, which leads to more competition for labor and higher wages.

Economic globalization has helped millions of people get out of extreme


poverty. However, the challenge of the future is to lift up the poor while at the same
time keep the planet livable. The key to help those in extreme poverty is to
participate in the economy.

An example for this is the microcredit. Muhammad Yunus, Bangladeshi


professor, won the Nobel Prize for this idea in 2006. He gave small loans to fund
plans that could raise the income of the borrowers. The best example for this, the
borrower loans from the lender to start a business. By this, they are participating the
economy. They have also have the opportunities to turn their creativity into a
sustainable income, as poor people can innovate in order to survive.

Global Income Inequality

Two Types of Economic Inequality

Wealth Inequality

Unequal distribution of assets.

Wealth – the net worth of a country. It takes into the account all the assets of
a nation, whether natural, physical, or human. There is no recognize monetary
measure that sums up the assets.

Income Inequality

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Unequal distribution of new earnings. It values the flow of goods and services, not
the stock of assets.

Income – the new earnings that are constantly being added to the country’s wealth.

According to the Global Wealth Report 2016 by the Credit Suisse Research
Institute, global wealth today is estimated to be about 3.5 trillion dollars and it is not
distributed equally. The countries like United States of America and Japan were able
to increase their wealth while others are not.

Branko Milanovic (2011) who is an economist that specializes in global


inequality, said that Industrial Revolution caused the differences among countries.
He called it as “economic big bang”. The result of industry and modern technology,
some nations become economically developed while other are developing.

The Third World and the Global South

During the Cold War, Western policymakers began talking about the world
three distinct political and economic blocs:

First World

Western Capitalists

Second World

Soviet Unions and its allies

Third World

Counties that do not belong to First and Second Worlds.

However, the terms are not accurate. There are hundreds of countries fit in
the “Third World” but they have different levels of economic stability. There are some
countries who are poor, but mostly, are not. In the recent years, the social scientists
sort countries into groups based on their specific levels of economic productivity.
They use the Gross Domestic Product (GDP), which measures the GDP per capita.

To have a simpler classification, they make a new bloc. They call it as “Global
North” and “Global South”. The “Global North” includes United States, Canada,
Western Europe, and developed parts of Asia. However, the “Global South” includes
the Caribbean, Latin America, South America, Africa, and parts of Asia.

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To sum up, the differences between the Global North and the Global South
are shaped by globalization and migration. Nevertheless, the economic differences
between the wealthy Global North and the poor Global South have always
possessed a racial character.

The Global City

The rural-urban differentiation has a significant relationship to globalization.


The South produces non-traditional products for export and become increasingly
dependent on industrialized food exports from the North. This will lead to a
replacement of the staple diet as well as the displacement of local farmers. As a
result, rural economies are exposed to low prices and mass migration.

Sassen (1991) used the concept of global cities to describe the three urban
centers of New York, London, and Tokyo. They are the economic centers that exert
control over the world’s political economy. World cities are categorized as such
based on the global reach of organizations found in them. These cities can be seen
as important nodes in a variety of global networks.

Cities are major beneficiaries of globalization. However, they are also the
most severely affected by global problems.

SAQ

Direction: Answer the following questions.

1. What is the impact of global flows on the global South?


2. Examine the gap between rural and urban areas across the globe. How is
the gap affected by globalization?
3. What do you think is the impact of urbanization and the rise of global city
on the agricultural sector?
4. Differentiate stability and sustainability.
5. In your own words, define global food security.
6. Differentiate the Global South from the Third World. Give their similarities
and differences.

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Application

The Global Free Trade on Trial This is an essay writing activity which
intends to show the stance of the students regarding economic globalization. Argue
based on this statement: “Global free trade has done more harm than good.

Scoring Criteria
Content 15
Originality 5
Organization 3
Grammar 2
Total 25

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Lesson 3

Theories of Global Stratification

Objectives

At the end of the lesson, students must have:

 Defined the modern world-system;


 Compared the Philippines into the modern world-system;
 Analyzed how a new conception of global relations emerged from the
experiences of Latin American countries;
 Reorganize a new map based on the idea of a modern world-system.

Activity

Direction: Compare and contrast the following countries using the Venn diagram.

United
Japan
States

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Philippines Mexico

Analysis

Direction: Answer the following questions.

1. Can Philippines reach the standards of United States or even Japan? Why or
why not?

2. Does the Philippines compete globally in the modern times? How? Cite an
example.

Abstraction/ Discussion

Theories of Global Stratification

Modernization Theory

This theory frames the global stratification as a function of technological and


cultural differences between nations.

Two (2) Historical Events

Columbian Exchange

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It refers to the spread of goods, technology, education, and diseases


between the Americas and Europe after Christopher Columbus’ so-called
“discovery of the Americas”.

This exchange worked out well for the European countries.

They gained agricultural staples which contributed to population growth


and provided new opportunities for trade, while also strengthening the power
of the merchant class.

It worked out much less well for Native American whose


populations were ravaged by the diseases, such as smallpox and measles,
brought from Europe.

Industrial Revolution (18th and 19th Century)

New technologies, such as steam power and mechanization, allowed


countries to replace human labor with machines and increase productivity.

At first, only benefited the wealthy.

It was very productive that it gradually began to improve standards of


living for everyone.

Industrialized countries in this time saw massive improvements in their


standards of living.

It rests on the idea that affluence could be attained by anyone.

It argues that the tension between tradition and technological change is


the biggest barrier to growth. A society that is more steeped in family systems
and traditions may be less willing to adopt new technologies and the new
social systems that often accompany them.

Walt Rostow’s Four Stages of Modernization

Traditional Stage

It refers to societies that are structured around small, local communities


with production typically being done in a family settings.

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Due to a society has limited resources and technology, most of their


time is spent on laboring to produce food.

Example for this is the feudal Europe and early Chinese dynasties.

Tradition rules how society functions: what your parents do is what


their parents did, and what you will do when you grow up, too.

Take-Off Stage

People begin to use their individual talents to produce things beyond


necessities. It creates new markets for trade. Greater individualism takes hold
and social status is more closely linked with material wealth.

Technological Maturity

Technological growth begins to bear fruit in the form of population


growth, reductions in absolute poverty levels, and more diverse job
opportunities.

Nations begin to push for social change along with the economic
change such as implementing basic schooling for everyone and developing
more democratic political systems.

High Mass Consumption

It is when the country is big enough that production becomes more


about wants than needs.

Countries put social support systems in place to ensure that all of their
citizens have access to basic necessities.

They also argue that if a country invests in better technologies, they


production will raise enough that there will be more wealth to go around and
overall well-being will go up. Furthermore, rich countries can help other
countries that are still growing by exporting their technologies and things.

However, critics of modernization theory argue that capitalism is the


only way for a country to develop. They pointed out that even as technology
has improved throughout the world, a lot of countries have been left behind.

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In general, modernization theory blames poor countries for not being


willing to accept change, putting the fault on their cultural values, and
traditions rather than acknowledging that outside forces might be holding back
those countries.

Dependency Theory

Latin American Experience

In the 1500s, European explorers spread throughout the


Americas, Africa, and Asia, claiming lands for Europe. The British Empire
covered about one-fourth of the world. In contrast, United States, began as
colonies, soon sprawled out through the North America and took control of
Haiti, Puerto Rico, Guam, Philippines, Hawaiian Islands, and parts of Panama
and Cuba. After the World War II, there are many questions about
international relations. One of those questions was about many countries in
the world are still not developing. Other answered that many countries are not
pursuing the right economic policies or their governments are authoritarian
and corrupt. Due to the experiences happened, dependency theory became
known.

Dependency Theory

It is the condition in which the development of the nation-states


of the South contributed to a decline in their independence and to an increase
in economic development of the countries of the North.

It argues that liberal trade causes greater impoverishment, not


economic improvement, to a less developed country. Trade protectionism
through import substitution is the key to self-sustaining path to development,
not liberal trade or export.

It focuses on how poor countries have been wronged by rich


nation that focusing on what poor countries are doing wrong. It was initially
developed by Hans Singer and Raul Prebatch in the 1950s. The two main
sub-theories are the North American Neo-Marxist approach and the Latin
American Structuralist approach.

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North American Neo-Marxist Approach

It was espoused by Andre Gunner Frank. The less developed countries


would develop by following the path taken by the develop countries. The idea
of this approach is that the country’s dependency to capitalist system that
causes lack of development, rather than internal sources cause of a country’s
underdevelopment.

Latin American Structuralist Approach

It was developed mainly by Latin American scientists. It is nominally


conducive to autonomous, self-sustaining development. It sought to diversify exports
and accelerate industrialization through import substitution. High tariffs walls were to
be erected that would reduce the region’s dependence on foreign manufacturers,
and thus on the developed North.

The terms “core nations” and the “peripheral nations” are the heart of
dependency theory.

Core Nations

These are more industrialized nations who received the majority of the world’s
wealth.

Peripheral Nations

These are countries that are less developed and received an unequal distribution of
the world’s wealth.

The development of this is stagnant because of the exploitative nature of the core
nations.

The less developed periphery countries are said to primarily serve the interests the
wealthier countries and end up having little to no resource to put toward their own
development.

The theory points out that the economies of periphery countries rely on the manual
labor and to the export of raw materials to core nations. The core countries then
process the raw materials and sell them at a much higher price. Some of these

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LM-The Contemporary World with ASEAN Integration

manufactured goods go right back to the periphery countries from which the raw
materials came.

The Modern World-System

Immanuel Wallerstein

He is an American sociologist who made a model and called it as the capitalist


world economy. He describes the high-income nations as the “core” of the world
economy. The core is the manufacturing base of the planet where resources funnel
in to become the technology and wealth enjoyed by the Western world today. He
also describes the low-income countries as the “periphery”, whose natural resources
and labor support the wealthier countries. In his model, the periphery remains
economically dependent on the core in a number of ways, which tend to reinforce
each other. Nowadays, foreign investment by richer nations helps and do not hurt
poorer countries. The dependency theory is very narrowly focused. There is no
solution to global poverty that comes out of dependency theory. The dependency
theorists urge poor nations to cease all contact with the rich nations or argue for a
kind of a global socialism.

SAQ

Direction: Answer the following questions.

1. In your own words, define the modern world-system.


2. In the case of the Philippines, how much do you think are we involved in
the modern world-system? What do you think are the advantages and
disadvantages of being a part of such?
3. How can we “upgrade” our economy given the strength of the global
economy, especially the giant economies like the United States and
Japan?
4. How do we examine economic globalization considering our colonial
history?

Application

A New Economic Map of the World

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In order for you to visualize Immanuel Wallerstein’s idea of the modern world-
system, this activity will involve a construction of a “new” map of the world. The
foundation of constructing this map is the three hierarchies of areas in the modern
world-system discussed.

1. Identify whether the following countries fall under core, periphery, or semi-
periphery category.

Australia China Indonesia Malaysia Philippines Sudan

Bangladesh France Italy Mexico Singapore Turkey

Brazil Germany Japan Nepal South United


Africa Kingdom
Canada Hungary Kenya Nigeria Spain United
States of
America
Chile India Madagascar Panama Sri Lanka Uruguay

2. Print the map of each country. (A quarter of a bond paper is enough for the
size of each map.)
3. Group the maps according to the category of the country in which they
belong. Paste the maps in a Manila paper.
4. Put the core countries at the center. Surround the core countries with the
states under the semi-periphery. Place the peripheral countries as the outer
ring of the map.
5. Compare the map you created with the original world map.

OUTPUT FOR MID-TERM (40%)


Reaction Paper
What is the implication in your life as student the current situation of this pandemic Covid 19?

Scoring Criteria
Content 20
Originality 5

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LM-The Contemporary World with ASEAN Integration

Organization 3
Grammar 2
Total 30

pg. 53

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