THE STRUCTURE OF GLOBALIZATION

BY: BENJIE T. ANDRADA, LPT

THE STRUCTURE OF GLOBALIZATION
• The Global Intended Learning Outcomes:

Economy • Define the following concepts such as economic

globalization; market integration; modern world system;
• Market Integration
and contemporary global governance
• The Global
• Explain the effects of globalization on governments and
Interstate System differentiate internationalism and globalism
• Contemporary • Explain the roles and functions of the United Nations;
Global challenges of global governance in the twenty-first
Governance century; and the relevance of the state amid globalization
• Global economy or economic
globalization refers to 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 (Shangquan, 2000).
• Global economy or World economy refers
to the international exchange of goods and
services through the use of monetary units of
money
• Global economy means the free movement of
goods, capital, services, technology, and
information
• Global economy or economic globalization is
concerned on the globalization of production,
finance, markets, technology, organizational
regimes, institutions, corporations, and labor
 Globalization of Organizational Regimes

Globalization of Production Globalization of Finance

Globalization of Corporation Globalization of Markets

Globalization of Labor
Globalization of Technology
 • Globalization of Production refers to
the sourcing of goods and services
from location around the globe to take
advantage of national differences in
the cost and quality of factors of
production like land, labor and capita
Globalization • Outsource - obtain (goods or a
of Labor
service) from an outside or foreign
supplier, especially in place of an
internal source
• Business Process Outsourcings or
BPOs (Call Center Agencies)
 Increase job
opportunities

Pressure firms to Upgrade education

correct labor Effect of system and leads
abuses to more training
Globalization
on Labor
Conditions

Increase labor Increase labor

productivity standard
 • Globalization of Technology refers to the
global exploitation of technologies through
the patents (a government authority or license conferring
a right or title for a set period, especially the sole right to exclude others
and licenses
from making, using, or selling an invention)

• The global sourcing of research and

development (R&D) through alliances and
joint ventures with foreign companies or
universities through the implication of
technologies
• The global production of research and development through
overseas subsidiaries.
Digital World
• Financial Globalization refers to:
• The liberation of trade in financial
assets
• It is the flow of capital and
corporate investments between
various countries
• World allocation of money leading
to exchange of services and goods
• International Monetary Funds (IMF)
• World Bank
• Globalization of Corporation refers to a company or group of people
authorized to act as a single entity and recognized as such law that
operates globally or internationally
• Global corporation refers to a company or corporation that operates
in more than one country which has significant investments and
facilities in multiple countries but lack dominant headquarters
• Global business (as mentioned by Michael Porter) refers to
business that maintains a strong headquarters in one country, but
has investments in multiple foreign location.
• International company is one that has headquarters likewise it does
business overseas and might have a large presence in multiple
areas.
• Multinational company/ corporation (Coca Cola/ Pepsi/ Samsung/ Apple/ Nestle/ Lacoste/
Penguins/ Guess/ Nike/ Gap)
 Globalization of Markets

• Globalization of markets refers to

the process of integrating and
merging of the distinct markets into
a single market
• This involves the identification of
some common norms, value, taste,
preference and convenience and
slowly enables the cultural shift
towards the use of common
product or service.
Globalization
of
Markets
 Broader access to wider variety of
products and services than
neighborhood offers

Greater vendor diversity leads to

better buying opportunities lower
Impact of prices; eg. Comparison shopping
via internet
Globalization
on Lost allegiance to domestic
producers
Consumers
More volatile labor market with
stronger competition from global
labor supply
 They are chartered by more than one country and they are subjects to
international law
International Financial
Institutions (IFIs)
The owners or shareholders are generally national governments

The first IFIs are established after the WWII to assist in the reconstruction
of Europe and to provide mechanism for international cooperation in
managing the global financial system

European Investment Bank

 Global in Scope World Bank Group

African Development
Bank

Multilateral
Asian Development
Development Bank Regional
INTERNATIONAL Banks (MDBs) Development Banks
FINANCIAL
INSTITUTIONS (IFIs)
Inter-American
International Development Bank
Monetary Bank
(IMF) European Bank for
Reconstruction and
Development
Market Integration refers to:
• Prices among different location or related goods
follow the same patterns over a long period of
time
• Group of prices that often moves proportionally
to each other and relation is very clear among
different markets
• Thus, it can be concluded that market integration
is an indicator that explains how much different
markets are related to each others

 A situation in which separate markets for the

same product become one single market.
Brief Historical
Background of • Between 1882 and 1936 – labor market
Global Market integration occurred in the area of Asia
Integration in extending from South India to Southeastern
the 20th
China and encompassing the three
Century
Southeast Asian countries of Burma, Malaya,
and Thailand
• Late 19th century – mass migration of Indians
and Chinese to Southeast Asia gave rise to
both integrated Asian labor market and
period of real wages convergence (divergent
trends in unskilled real wages)
Brief Historical
Background of • 1880s – steamships had largely replaced sailing
Global Market vessels for transport within Asia as well as to
Integration in Western markets (shipping fares had begun to fall)
the 20th
Century
• 1880s – mass migration of Indian (Mandras, India),
and Chinese workers (provinces of Guandong, Fukien,
and Southeast Asia)
• Burma, Malaya, and Thailand are the chief
immigrant-receiving countries in Southeast Asia
• Late 19th century (early 20th century) – global
migration movement/ European immigration.
 STATE
• Body of people politically organized under a
government within a definite territory.
• A nation or territory considered as an organized
political community under one government
• Organization of political positions and
the structure of political relation in
Global Interstate • society.
System• World
• A community of persons, more or less
numerous, permanently occupying a definite
portion of territory, independent of external
control, and possessing an organized
government to which the great body of
inhabitants render habitual obedience.
 WORLD-SYSTEM

World System • It refers to existence of the division of labor

• It deals with inter-regional and transnational division of labor, which divides
the world into:
• World System Theory (World Systems Analysis/ World
 Core countries Systems Perspectives – is a multidisciplinary, macro-
scale approach to the world history and social change
 Semi-periphery countries which emphasizes the world-system as the primary unit
 Periphery countries of social analysis

• Modern world-system has a multi-state political

structure (interstate system). Thus, the division of labor
are considered international/ global division of labor

• GLOBAL INTERSTATE SYSTEM – means:

 Multi-state political structure and
 the international or global division of labor of the core, semi-periphery, and periphery countries
 Global Interstate
System
World System Periphery Countries
• SEMI-PERIPHERY/ PERIPHERY Semi-Periphery
COUNTRIES
Countries
 Low Skills
 Labor Intensive Production Core
 Extraction of Raw Materials Countries
Core Countries
• CORE COUNTRIES
 Higher Skills
 Capital Intensive Production
Contemporary Global
• World Governance
Governance Movement towards political
cooperation among
transnational actors, aimed at
negotiating responses to
problems that affect more than
one state or region

• Institution of Global Governance

 These have limited
or demarcated United Nations
power to enforce International Criminal Court
compliance
World Bank
 • Functions of United Nations
The main function of UN is to
maintain peace and security for all of
Institution of Global Governance its member-states.
The UN does not have its own
military but it has peacekeeping force
United Nations which are supplied by the member
states
The UN aims to protect human rights
and provide humanitarian assistance
when needed
 • Functions of United Nations
The UN plays an Integral part in social
and economic development through its
United Nations UN Development Program
The UN likewise annually publishes the
Human Development Index to rank
countries in terms of poverty, literacy,
education, and life expectancy
UN General Assembly – occupies the
Institution of Global Governance central position as the chief deliberative,
policymaking, and representative
organs of the United Nations.
 • Functions of United Nations
The UN plays an Integral part in social
and economic development through its
UN Development Program
The UN likewise annually publishes the
Human Development Index to rank
countries in terms of poverty, literacy,
education, and life expectancy
UN General Assembly – occupies the
Institution of Global Governance central position as the chief deliberative,
policymaking, and representative
organs of the United Nations.
 • Climate Change, Poverty, Violent
Conflict, Intolerance, and
Extremism present direct threats
Challenges of Global to the unity and well-being of the
Government in the 21st International or Global Community
Century • Attacks on cultural rights and
cultural heritage, particularly in
Syria, Iraq, and Mali threaten the
Inter-Cultural Tolerance
(Irina Bokova, Director General of UNESCO, 2016)
 • First, openness of mind and out-of-box thinking is crucial.
3 Points to Address the New ideas must be transformed into norms (Efforts to
Challenges of Global teach people about the history of the Holocaust/ program
Government in the 21st Century promoting internet literacy/ help to instill common values
(Irina Bokova, Director General to the youth/ create environments that are conducive to
of UNESCO, 2016) respectful dialogue)
• Second, the international community must build resilient
societies (Fighting exclusion and fostering inclusion/
Participation of women in all sectors)
• Third, new thinking about peacebuilding. (The world
urgently needs legitimate and effective peace efforts,
before, during, and after conflicts. Preventive measures
are key and must involve the soft power embodied by
UNESCO’s educational and inter-cultural program)
Globalization
VS
Internalization
 Globalization refers to global  Internalization refers to the
economic integration of increasing importance of
many and formerly national international trade,
economies into one global international relations,
economy – mainly by free treaties, alliances and others
trade and free capital  International means between
mobility. or among nation
 Globalization refers to the
VS  Globalism refers to the
interconnectedness of operation or planning of
people and business across economic and foreign policy
the world that eventually lead on a global basis
to global, cultural, political,
and economic integration
 Global means worldwide
START HERE… BE SUCCESSFUL EVERYWHERE…