Contemporary World

John Ercel Lozada, RMT, LPT, R-EMT, MAEdc, MPAo, MM-PHA

Lecturer

The main dimensions or "scapes" of globalization include:

Ethnoscapes: the movement of people across the world.
Technoscapes: the flow of technology and knowledge.
Financescapes: the movement of financial capital.
Mediascapes: the distribution and exchange of media and information.
Ideoscapes: the flow and exchange of ideas, beliefs, and values.
There are several theories about the origin of globalization, including:
Modernization Theory: views globalization as a product of the development and
spread of modern technology and capitalism.
Dependency Theory: argues that globalization is the result of the unequal
relationship between developed and developing countries, where developed
countries dominate and exploit developing countries.
World Systems Theory: posits that the global economy has been dominated by a
single center, and that the growth of a capitalist world economy has been driven by
the pursuit of profit and economic growth.
Neoliberalism: emphasizes the role of market-oriented policies and the reduction of
state intervention in driving globalization.
Cultural Theory: focuses on the role of cultural exchange and communication in
shaping global consciousness and the spread of cultural practices.
There are several perspectives on how culture flows globally, including:
Hybridization: the mixing and merging of cultural elements from different regions to
create new cultural forms.
Cultural Imperialism: the spread of dominant cultures and the suppression of local
cultures, often through the influence of media and multinational corporations.
Globalization from Below: the spread of cultural practices and identities that are
driven by local communities and their interactions with other communities, rather
than top-down processes.
Cultural Homogenization: the trend towards the reduction of cultural diversity and
the spread of similar cultural forms across the world.
Cultural Heterogenization: the coexistence and co-creation of diverse cultural
forms and practices in a global context.
Contemporary World
John Ercel Lozada, RMT, LPT, R-EMT, MAEdc, MPAo, MM-PHA
Lecturer

Roots of Globalization
The Age of Exploration and Discovery, starting in the 15th century, which led to
the expansion of trade and commerce across the world.
The Industrial Revolution in Europe in the late 18th and early 19th centuries, which
spurred technological advancements and increased economic growth.
The growth of colonial empires and the creation of a global economy and trade
system.
The rise of transnational corporations and the growth of international trade and
investment.
The development of modern transportation and communication technologies,
which have greatly facilitated the movement of goods, people, and information.
World Economy
The world economy refers to the interconnected and interdependent global system of
production, consumption, exchange, and distribution of goods and services, as well
as the flow of capital, technology, and information between countries. It
encompasses all economic activities, transactions, and relationships that take place
globally, and is shaped by factors such as globalization, technological change,
government policies, and cultural differences. The world economy is characterized
by complex interconnections and interactions among countries and regions, as well
as a growing integration and interdependence of economies across the world.
Protectionism
Protectionism is an economic policy that restricts or regulates international trade in
order to protect domestic industries and jobs. This can be achieved through
measures such as tariffs (taxes on imported goods), quotas (limits on the amount of
a particular good that can be imported), or subsidies (financial assistance to
domestic industries). The aim of protectionism is to increase the competitiveness of
domestic producers by reducing foreign competition, but it can also lead to higher
prices for consumers and decreased efficiency in the economy.
Free trade
Free trade is an economic policy that advocates for the unrestricted flow of goods
and services across national borders, without tariffs, quotas, or other trade barriers.
The goal of free trade is to increase economic efficiency and growth by allowing for
the specialized production of goods and services in regions where they can be
produced most efficiently, and to promote competition, innovation, and consumer
choice. Free trade can lead to increased economic benefits, but it can also result in
job losses and decreased competitiveness for certain domestic industries,
particularly in developing countries.
Contemporary World
John Ercel Lozada, RMT, LPT, R-EMT, MAEdc, MPAo, MM-PHA
Lecturer

Free trade agreement

A free trade agreement (FTA) is a treaty between two or more countries that
removes or reduces trade barriers, such as tariffs and quotas, on a wide range of
goods and services. FTAs aim to increase economic efficiency and growth by
promoting cross-border trade, investment, and economic integration. They can also
increase competition, innovation, and consumer choice. FTAs can be bilateral
(between two countries) or multilateral (among multiple countries). Some examples
of FTAs include the North American Free Trade Agreement (NAFTA), the European
Union (EU), and the Trans-Pacific Partnership (TPP).
Tariff
A tariff is a tax imposed by a government on imported or exported goods. It is used
to regulate international trade and can be used to protect domestic industries,
increase government revenue, or influence economic or political relations with other
countries. Tariffs can increase the cost of imported goods, making them less
competitive with domestic products, and can lead to inflation, decreased consumer
choice, and decreased economic efficiency. The use of tariffs can also result in trade
disputes and can have a negative impact on international relations.
Quota
A quota is a limit on the amount of a particular good that can be imported or exported
in a specific time period. Quotas are used to regulate international trade and can be
used to protect domestic industries, influence economic or political relations with
other countries, or comply with international agreements. Quotas can limit the
availability of certain goods and increase prices, but they can also provide stability
and certainty for domestic producers. The use of quotas can result in trade disputes
and can have a negative impact on international relations.
Laissez-faire
Laissez-faire is a French term that means "let do" or "let it be." In economics, it refers
to a political and economic philosophy that advocates for minimal government
intervention in the economy. Laissez-faire proponents believe that the market is best
left to operate freely, without government intervention, and that this will result in
maximum economic efficiency and growth. This philosophy is based on the idea that
individuals and businesses, acting in their own self-interest, will naturally create an
efficient and prosperous economy. However, laissez-faire economics has been
criticized for leading to income inequality and market failures, and for not taking into
account externalities such as environmental degradation and social welfare.
European Union (EU)
The European Union (EU) is a political and economic union of 27 member states
located primarily in Europe. It was established to promote peace, stability and
economic cooperation among its member states. The EU operates through a system
of supranational and intergovernmental institutions and aims to ensure the free
Contemporary World
John Ercel Lozada, RMT, LPT, R-EMT, MAEdc, MPAo, MM-PHA
Lecturer

movement of goods, capital, services and people within the internal market. The EU
also has a common currency (the Euro) used by 19 of its member states.

Market integration
Market integration refers to the process by which goods, services, capital and labor
flow freely between regions or countries, creating a single, unified market. This
results in the breaking down of trade barriers and increased economic cooperation,
leading to greater competition, increased efficiency and potentially higher economic
growth. Market integration can be facilitated by agreements and institutions such as
the World Trade Organization (WTO) or regional trade agreements like the European
Union (EU).
Agricultural Revolution
The Agricultural Revolution refers to a series of improvements in agricultural
practices and technologies that took place during the 18th and 19th centuries and
led to significant increases in food production. The Agricultural Revolution was driven
by innovations such as the development of new tools and equipment, the use of
fertilizers and the implementation of new farming techniques. It allowed for greater
efficiency in farming, which led to increased food production and a more stable food
supply, contributing to population growth and the rise of urbanization. These
developments also allowed for the creation of larger surpluses and greater trade in
agricultural goods, which in turn helped to fuel industrialization and economic growth.
Industrial Revolution
The Industrial Revolution was a period of major economic and social change that
took place from the late 18th century to the mid-19th century, characterized by the
transition from manual labor-based production to machine-based manufacturing. It
began in Britain and then spread to the rest of Europe and North America. The
Industrial Revolution brought about major advancements in transportation,
communication, and energy production, leading to increased productivity and growth.
It also led to the development of new forms of work organization and the growth of
cities, as well as significant social and economic changes, including the rise of the
middle class and the growth of a market economy. Overall, the Industrial Revolution
transformed the world economy and had far-reaching effects on global economic
development.
Socialism
Socialism is a political and economic ideology that advocates for collective
ownership and control of the means of production and distribution of goods and
services. The goal of socialism is to create a more equal society by distributing
wealth and resources more evenly. In a socialist system, the government or a
collective organization is responsible for managing the economy and making
decisions about production and distribution. Proponents of socialism argue that it can
lead to a more equal and just society, while critics argue that it can result in
inefficiency and decreased economic growth. There have been many different forms
Contemporary World
John Ercel Lozada, RMT, LPT, R-EMT, MAEdc, MPAo, MM-PHA
Lecturer

of socialism throughout history, including democratic socialism, market socialism,

and state socialism.

Capitalism
Capitalism is an economic system in which private individuals, rather than the
government, own and control the means of production and distribution of goods and
services. Capitalists are motivated by profit and compete with each other in markets
to sell their goods and services. This competition drives innovation and efficiency,
leading to economic growth and increased wealth. In a capitalist system, the
government plays a limited role, primarily regulating the economy to protect property
rights and prevent monopolies. Critics argue that capitalism can lead to income
inequality, instability, and boom-and-bust cycles, while proponents argue that it is the
best system for promoting prosperity and individual freedom.
The Information Revolution
The Information Revolution, also known as the Digital Revolution, refers to the rapid
advancement in technology and communication that has taken place since the late
20th century. The Information Revolution has been driven by the development of
computers, the Internet, and mobile technology, and has transformed the way people
communicate, access and share information, and do business. It has led to
increased connectivity and globalization, allowing for greater collaboration and the
creation of new economic and social opportunities. The Information Revolution has
also led to new challenges, including privacy concerns, cybersecurity risks, and the
potential for job displacement due to automation. Overall, the Information Revolution
has had a profound impact on all aspects of society and continues to shape the
world in new and profound ways.
White-collar jobs
White-collar jobs are professional and administrative positions that typically require a
higher level of education and do not involve manual labor. They are so-called
because they were originally associated with white-collar workers who typically wore
white dress shirts to work, as opposed to blue-collar workers who performed manual
labor and typically wore blue work shirts. White-collar jobs can be found in a variety
of industries, including finance, law, marketing, and management, and typically
involve tasks such as office work, customer service, or professional services. These
jobs often offer higher salaries, stable working hours, and a more professional work
environment compared to blue-collar jobs.
Blue-collar jobs
Blue-collar jobs are manual labor jobs that typically do not require a higher level of
education. They are so-called because they were originally associated with blue-
collar workers who typically wore blue work shirts to perform manual labor. Blue-
Contemporary World
John Ercel Lozada, RMT, LPT, R-EMT, MAEdc, MPAo, MM-PHA
Lecturer

collar jobs can be found in a variety of industries, including construction,

manufacturing, and transportation, and typically involve tasks such as operating
machinery, manual labor, or manual assembly. These jobs often offer lower salaries,
physically demanding work, and less stable working hours compared to white-collar
jobs.
International Trading System
The International Trading System refers to the framework of rules, institutions, and
agreements that govern international trade between countries. It includes
agreements such as the World Trade Organization (WTO), which sets rules for
global trade and provides a platform for negotiating and enforcing trade agreements
between countries. The International Trading System also includes regional trade
agreements, such as the North American Free Trade Agreement (NAFTA) and the
European Union (EU), which facilitate trade between countries within a specific
region. The goal of the International Trading System is to promote free and fair trade,
reduce trade barriers, and increase economic cooperation between countries,
leading to increased prosperity and growth. The International Trading System has
faced challenges in recent years, including rising protectionism and concerns about
the unequal distribution of benefits from trade, leading to calls for reforms to the
system.
Silk Road
The Silk Road was a network of trade routes that connected the East and the West,
stretching from China to the Mediterranean Sea. It operated from the 2nd century
BCE to the 15th century CE and played a key role in facilitating cultural, commercial,
and technological exchange between civilizations. The Silk Road allowed for the
exchange of goods such as silk, spices, gold, and silver, as well as ideas and
cultural practices. The name "Silk Road" was coined by the German geographer
Ferdinand von Richthofen in the 19th century.
Gold standard
The gold standard was a monetary system in which a country's currency was backed
by a fixed amount of gold, and gold was used as a medium of international
exchange. In this system, central banks would hold gold reserves and exchange
them for their currency, and citizens could exchange their currency for gold. The gold
standard was used in many countries in the late 19th and early 20th centuries and
was seen as a way to stabilize currency values and maintain monetary stability.
However, the gold standard had several drawbacks, including limited flexibility in the
money supply, and it was abandoned by many countries during World War I as they
needed to print money to finance the war effort. The gold standard was officially
abandoned by the United States in 1971 and is no longer used as a monetary
system.
Fiat system
The fiat system is a monetary system in which a country's currency is not backed by
a fixed amount of a commodity such as gold, but is instead declared legal tender by
Contemporary World
John Ercel Lozada, RMT, LPT, R-EMT, MAEdc, MPAo, MM-PHA
Lecturer

the government. In this system, the value of the currency is determined by supply
and demand in the market and is not directly linked to the value of a specific
commodity. The fiat system is used by most countries today and allows central
banks to manage the money supply and interest rates, to promote economic stability
and growth. Critics of the fiat system argue that it can lead to inflation and currency
devaluation, while proponents argue that it provides greater flexibility for monetary
policy and can help stabilize the economy. The use of the fiat system has become
increasingly controversial in recent years, with some proponents advocating for
alternative monetary systems, such as the use of digital currencies or a return to the
gold standard.
Bretton Woods system
The Bretton Woods system was a monetary system established in 1944, in which the
exchange rates between countries were fixed to the US dollar, and the US dollar was
pegged to gold at a rate of 35 dollars per ounce. This system helped to stabilize
international currencies and facilitate international trade, and it was in place until
1971, when the US suspended the convertibility of the dollar to gold due to rising
inflation.
Stagflation
Stagflation is an economic condition characterized by a combination of stagnant
economic growth, high unemployment, and high inflation. It is seen as a paradox
because, according to classical economic theory, inflation and unemployment should
move in opposite directions: when one is high, the other should be low. Stagflation
typically occurs when there are supply-side shocks to the economy, such as rising oil
prices or a decrease in the supply of goods and services. These shocks can lead to
both inflation and unemployment, making it difficult for policymakers to address the
situation with conventional macroeconomic tools.
Neoliberalism
Neoliberalism is an economic and political ideology that emphasizes the role of the
market in promoting individual freedom and economic growth. It advocates for limited
government intervention in the economy, deregulation, privatization, and free trade.
Neoliberal policies have been implemented by governments around the world since
the 1970s and 1980s, and they have been credited with boosting economic growth,
but also criticized for increasing income inequality and exacerbating environmental
problems. The term "neoliberalism" is sometimes used more broadly to refer to a
broader political and cultural movement that emphasizes individual freedom and
minimal government intervention in various spheres of life.
Example of Neoliberalism
An example of neoliberalism in practice is the implementation of structural
adjustment programs (SAPs) by international financial institutions like the
International Monetary Fund (IMF) and the World Bank in developing countries.
SAPs often require countries to adopt free market policies such as fiscal austerity,
trade liberalization, and deregulation as a condition of receiving loans. The idea
Contemporary World
John Ercel Lozada, RMT, LPT, R-EMT, MAEdc, MPAo, MM-PHA
Lecturer

behind these policies is to promote economic growth and reduce poverty, but they
have been criticized for leading to increased inequality, reduced public services, and
environmental degradation in many cases.

Transnational corporations
Transnational corporations (TNCs) are large companies that operate in multiple
countries, often with headquarters in one country and subsidiaries in others. TNCs
play a significant role in the global economy by producing and distributing goods and
services, investing in research and development, and creating jobs. They can have a
significant impact on the economies of host countries, both positive and negative,
through their trade, investment, and employment practices. TNCs are also often
criticized for their influence on national and international policy, their role in
exacerbating income inequality, and their environmental impact.
Examples of TNCs
Apple Inc., Walmart. Amazon, Exxon Mobil, Nestlé, Coca-Cola, McDonald's, Procter
& Gamble, Toyota and Pfizer