Lesson 1

Introduction to Globalization

I Introduction:

This course introduces students to the contemporary world by examining the multifaceted
phenomenon of globalization. In this lesson the students will be able to gain knowledge on the
definition of Globalization. They will be enlightened on the importance of having international
relationship with other countries and maintaining trade agreements with them.
Once the lesson is completed, they will be knowledgeable on the different effects of Globalization
in the different aspects of our country particularly on the Industrial Financial, Economic, Political,
Legal/Ethical, Language. Competition, Cultural, Ecological, Social, and Technical aspects.
It is also important for the students to be able to know the different means on how the government
controls the influx of imports in our country because it has great effect on the welfare of our local
producers and the economy as well.
As the future of our country depends on them (Youth) with this knowledge, they will surely be an
asset to the country and be productive individuals to contribute to the development of the Filipino
Nation.
II Objectives:
At the end of the lesson you are expected to:
1. Define Globalization
2. Enumerate the effects of Globalization
3. Enumerate the Dimensions of Globalization
4. Enumerate the different International Financial Institutions and
5. Explain the effects of Globalization in the different aspects of the society
6. Understand the concept of Political Globalization

III Lesson Proper:

A. Definition of Globalization:
 is often used to refer to economic globalization, that is, integration of national economies
into the international economy through trade, foreign direct investment, capital flows,
migration, and the spread of technology.
 increases the possibilities of personal exchange, mutual understanding and friendship
between “world citizens”.
 Academically speaking, Globalization is “The expansion & INTENSIFICATION of social
relations and consciousness across the world, time and world space”
B. Effects of Globalization:

 Globalization has various aspects which affect the world in several different ways such as:
 INDUSTRIAL
 emergence of worldwide production markets and broader access to a range of
foreign products for consumers and companies. Particularly movement of
material and goods between and within national boundaries.

 FINANCIAL
 emergence of worldwide financial markets and better access to external
financing for borrowers; emergence of under or un-regulated foreign exchange
and speculative markets.
 ECONOMIC
 realization of a global common market, based on the freedom of exchange of
goods and capital.
 POLITICAL
 some use "globalization" to mean the creation of a world government, or cartels
of governments (e.g. World Trade Organization, World Bank, and International
Monetary Fund) which regulate the relationships among governments and
guarantees the rights arising from social and economic globalization.
 LEGAL/ETHICAL
 The creation of the international criminal court and international justice
movements.
 Crime importation and raising awareness of global crime-fighting efforts and
cooperation.
 LANGUAGE
 the most popular language is English.
 About 75% of the world's mail, telex, and cables are in English.
 Approximately 60% of the world's radio programs are in English.
 About 90% of all Internet traffic is using English.
 COMPETITION
 Survival in the new global business market calls for improved productivity and
increased competition.
 many industries around the world doing the same thing, so Industries have to
upgrade their products and use technology skillfully to compete.
 CULTURAL
 growth of cross-cultural contacts
 the desire to increase one's standard of living and enjoy foreign products and
ideas, adopt new technology and practices, and participate in a "world culture".
 ECOLOGICAL
 the start of global environmental challenges that might be solved with
international cooperation,
 climate change, cross-boundary water, air pollution, over-fishing
 factories are built in developing countries with less environmental regulation
which may increase pollution.
 SOCIAL
 Spreading of multiculturalism, and better individual access to cultural diversity
through media.
 Greater international travel and tourism
 Greater immigration, including illegal immigration
  Worldwide fads and pop culture, i.e. Pokémon, Sudoku, YouTube, MySpace,
Facebook. Accessible to those who have Internet or Television.
 TECHNICAL
 Development of a global telecommunications infrastructure and greater data flow
even into the world’s most remote areas
 Internet: creation and proliferation of information via the internet & world wide
web
 communication satellites: broadcast information through space around the planet
nearly simultaneously allowing for communications almost everywhere on earth.
 TECHNICAL
 Television: information from around the world can be seen
anywhere in the world
 submarine fiber optic cable
 wireless telephones
 Increase in the number of standards applied globally; e.g. copyright laws, patents
and world trade agreements.

C. Dimensions of Globalization
 Cultural
 Economical
 Political

 Culture It is the customs, arts, social institutions, and achievements of a particular

nation, people, or other social group.

CULTURAL GLOBALIZATION
 The transmission of ideas, meanings and values around the world in such a way as to
extend and intensify social relations.
 This has added to the processes of commodity exchange and colonization.
 A visible aspect of cultural globalization is the diffusion of certain cuisines such as
American fast food chains. The most successful global food and beverage outlets:
McDonalds, Starbucks, Coca-cola
 It involves reshaping global products in order to incorporate them into the local society
and their preferences.
 McDonald’s serves nearly 70 million people every day. They have more than 35,000
restaurants worldwide in over 100 countries. In order to cater to cultural traditions, laws,
and religious beliefs, McDonald’s expanded its menu.

The Two Contrasting Approaches to Cultural Globalization:

1. HOMOGENEITY
a. is 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.
b. is also linked to cultural imperialism.
c. This is the process by which local cultures are transformed or absorbed by a
dominant outside culture.
d. An example of Globalization as Homogenization
The way consumption has been globalized through fast food joints such as
McDonald - known as McDonaldization.
 American sociologist GEORGE RITZER states that McDonaldization is the
process by which the principles of the fast food restaurant are coming to
dominate more and more sectors of American society as well as the rest of the
world.

2. HETEROGENEITY
a. pertains to the creation of VARIOUS cultural practices, new economies, and
political groups because of the interaction of elements from different societies in
the world.
b. is the differences because of either lasting differences or of the hybrids or
combinations of cultures that can be produced through the different processes.

Dynamics of Local and Global Culture:

a. CULTURAL DIFFERENTIALISM
▪ emphasizes the fact that cultures are essentially different and are only affected
by global flows.
▪ defines culture as a clearly bound entity with a specific location.
b. CULTURAL HYBRIDIZATION
▪ is the development of new culture by MERGING two or more than two different
cultures through a period of contact and interaction.
▪ is the integration of local and global cultures (glocalization)
▪ Ex. The English language has developed from a mixture of multiple backgrounds,
including German, French and Latin.
Common English Words that came from other Languages
French- Ballet, Café, Entrepreneur, Genre, rendezvous
German- fest, kindergarten, rucksack
Latin- alias, et cetera, agenda, impromptu
c. CULTURAL CONVERGENCE
▪ it stresses homogeneity
▪ is when different cultures become SIMILAR or even come together.
▪ Example
English Language: English has become quite widespread as the international
second language throughout the world.

C. WHAT IS ECONOMICS?

▪ It is concerned with the production, distribution, consumption of goods and

services.
Economic Globalization
▪ It is the spread of TRADE, TRANSPORTATION and COMMUNICATION
SYSTEM in a global scale in the interest of promoting international commerce.
▪ is the increasing economic interdependence of national economies across the
world through a rapid increase in cross-border movement of goods, service,
technology, and capital.
▪ is the exchange of capital goods, and services across international borders or
territories.
International Trade
▪ is the exchange of capital goods, and services across international borders or
territories.

D. Two Types of Economy

D1. Protectionism
▪ refers to the practice of the government in which they are putting limits on foreign
trade to protect local businesses and jobs from foreign competition.
D2. Trade Liberalization
▪ refers to the lessening of government regulations, restrictions and trade barriers
in an economy in exchange for greater participation by private entities to make
international trade easier between countries.

Trade Barriers
▪ These are government policies which place restrictions on international trade.
Trade barriers can either make trade more difficult and expensive or prevent
trade completely.
▪ The major purpose of trade barriers is to promote local products than exported
products.

1. TARIFF
o is a TAX OR DUTY to be paid on a particular class of imports or exports.
o Tariffs work by increasing the price of the import. Those higher prices
give an advantage to domestic products within the same market. They
are used to protect a nation's industry.
2. NON-TARIFF BARRIERS
o Any barrier other than tariff and it do not affect the price of the products
but it affects the quality and quantity.

Examples:
a) LICENSES: License is granted by the government, and allows the
importing of certain goods to the country.
b) QUOTAS: Under this system, a country may fix in advance, the limit of
import quantity of commodity that would be permitted for import from
various countries during a given period.
c) PRODUCT STANDARDS: The importing country imposes standards for
goods. If the standards are not met, the goods are rejected.
d) PRODUCT LABELING: certain countries insist on specific labeling of the
products.
 E.g.. European Union insist on products labeling in major
languages in EU.
e) PACKAGING REQUIREMENTS: certain nations insist on
particular type of packaging of goods.
 E.g.. EU insist on packaging with recyclable materials.

E. International Financial Institutions

World Bank
a. The World Bank was created out of the BRETTON WOODS AGREEMENT, as a
result of many European and Asian countries needing financing to fund
reconstruction efforts.
 b. As of 2016, the Bank predominantly acts as an organization that attempts to fight
poverty by offering developmental assistance to middle- and poor-income
countries.
INTERNATIONAL BANK RECONSTRUCTION AND DEVELOPMENT (IBRD)
c. is a global development cooperative owned by 189 member countries.
d. It supports the World Bank Group’s mission by providing loans, guarantees, risk
management products, and advisory services to middle-income and creditworthy
low-income countries.
International Monetary Fund (IMF)
e. is an organization of 189 COUNTRIES, working to foster global monetary
cooperation, secure financial stability, facilitate international trade, promote high
employment and sustainable economic growth, and reduce poverty around the
world.

F. World Trade Organization

 Deals with the regulation of trade in goods, services and intellectual
property between nations.
 It regulates international trades .
 Acts as forum in negotiation trade agreements.

Positive aspects of WTO

• Solves trade dispute between countries in a peaceful ways.
• Lower the cost of goods and services .
• Promote economic growth in developing nations.
Negative aspects of WTO
• Focusing on a developed nations.
• To achieve lower cost, in developed countries labor right and
environmental concerns are usually ignore.
• Favoring the rich nations and powerful transnational corporations.

G. Economic Globalization
The biggest issue created by Economic Globalization is about the ENVIRONMENT.

 SUSTAINABILITY
 The degree to which the earth can provide resources for human needs.
 SUSTAINABLE DEVELOPMENT
The needs of the present day generation are met by preserving resources.
 Philippine Council for Sustainable Development
• Created under Fidel V. Ramos
• Executive Order No. 15
• Philippine Council for Sustainable Development
• Philippine Agenda 21 (PA 21) a strategy which promotes the development of the nation
through appropriate productivity, participatory and democratic processes and living in
harmony and within the limits of carrying capacity of nature and integrity of creation.
•

 Stewardship
• Taking responsibility of earth’s resources so that future generations will be able to have
access.
 KNOWLEDGE ECONOMY
 • Individuals or businesses that use education , research, innovative ideas, and
informative technologies for a variety of constructive purposes.

H. Political Globalization
• United Nations is one example of Political Globalizations.
• Its main objectives are: to maintain international peace and security and promoting
human rights and global development.

IV Activities:

1. Explain the meaning of Globalization based on your own point of view.

2. Explain the effects of globalization to different aspects of the society.
4. Explain the effect of Political Globalization to the Philippines especially now in time of
pandemic.