Chapter 2 - Structures of Globalization

THE STRUCTURES OF
GLOBALIZATION
PREPARED BY:
BENJIE T. ANDRADA, LPT
SOCIAL SCIENCE INSTRUCTOR
COMPONENTS OF GLOBALIZATION
 Academic literature commonly subdivides globalization into

three major areas:
1. ECONOMIC GLOBALIZATION
2. CULTURAL / SOCIAL GLOBALIZATION
3. POLITICAL GLOBALIZATION
ECONOMIC GLOBALIZATION
ECONOMIC GLOBALIZATION
 It refers to the widespread of international movements of goods, capital, services, technology and
information.
 Economic globalization primarily comprises the globalization of:
1. Production 6. Corporations
2. Finance 7. Labor
3. Markets 8. Technology
4. Organizational 9. Institutions
5. Regimes
INSTITUTION OF GLOBALIZATION
 WORLD BANK
 INTERNATIONAL MONETARY FUND (IMF)
 WORLD TRADE ORGANIZATION (WTO)
THE WORLD BANK
THE WORLD BANK
 It is also called International Bank for Reconstruction and Development (IBRD)
 Increases in economic growth and decreases poverty in developing countries

Example:
Increases in education since 1962 like Bangladesh, Chad and Afghanistan
THE WORLD BANK
Why WORLD BANK came into
existence?
OBJECTIVES
FUNCTIONS
WORLD BANK’S TOP BORROWERS
© 2017 The World Bank Group
1. PERU – $2,850,000,000.00 11. MOROCCO - $1,050,000,000.00

2. INDIA – $2,820,000,000.00 12. ARGENTINA - $1,000,000,000.00
3. CHINA – $1,982,000,000.00 13. PHILIPPINES - $950,000,000.00
4. INDONESIA – $1,700,000,000.00 14. PAKISTAN - $820,000,000.00
5. UKRAINE – $1,560,000,000.00 15. TUNISIA - $770,000,000.00
6. UAE – $1,550,000,000.00
7. IRAQ – $1,550,000,000.00
8. POLAND – $1,504,040,000.00
9. COLOMBIA – $1,400,000,000.00
10. KAZAKHSTAN - $1,080,000,000.00
WORLD TRADE ORGANIZATION
WORLD TRADE ORGANIZATION
 Formerly known as General Agreement on Tariffs and Trade (GATT)
 Deals with the rules of trade between nations, settles trades disputes and conduct straight negotiations
 WTO is essentially an alternative dispute or mediation entity that upholds the international rules
of trade among nations
EXAMPLE:
 (May 2013) Japan and European Union bought a case to WTO regarding unfair energy serves offered
in Ontario
 WTO has lowered trade barriers and increased trade among member countries.
Objectives And Operation
 The WTO has six key objectives:

1. to set and enforce rules for international trade,
2. to provide a forum for negotiating and monitoring further trade liberalization,
3. to resolve trade disputes,
4. to increase the transparency of decision-making processes,
5. to cooperate with other major international economic institutions involved in global economic
management, and
6. to help developing countries benefit fully from the global trading system.
INTERNATIONAL MONETARY FUND
(IMF)
INTERNATIONAL MONETARY
FUND
(IMF)
 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.
 Provides short term loans to countries when an emergency occurs
 The IMF's main goal is to ensure the stability of the international monetary and financial system.
It helps resolve crises, and works with its member countries to promote growth and alleviate
poverty.
CULTURAL GLOBALIZATION
CULTURAL GLOBALIZATION
 Cultural Globalization refers to the transmission of ideas, meanings, and values and cultural
products across around the world in such a way to extend and intensify social relations
 This process is marked by the common consumption of mono-cultures that have been diffused by
the internet, popular culture media, and international travel, entertainment transnational
marketing of particular brands and international tourism – that transcends local cultural
traditions and lifestyles, and that shapes the perceptions, aspirations, tastes and everyday
activities of people wherever they may live in the world.
ASPECTS OF CULTURAL GLOBALIZATION
1. MIGRATION
 This is an important aspect of cultural globalization
 This process has been going on for several centuries, with languages, religious beliefs, and values
being spread by military conquest, missionary work, and trade.
2. THE GLOBALIZATION OF FOOD
 It is one of the most obvious examples of cultural globalization. Food consumption is an important
aspect of culture and most societies around the world have diets that are unique to them, however
the cultural globalization of food has been promoted by fast food giants such as McDonalds, Coca
Cola and Starbucks.
ASPECTS OF CULTURAL
GLOBALIZATION
 The spread of these global food corporations has arguably led to the decline of local diets and
eating traditions
3. THE GLOBALIZATION OF SPORT

 Is another fairly obvious example of cultural globalization. Think of all the international sporting
events that take place- most notably the World Cup and The Olympics, which bind millions
together in a shared, truly global, leisure experience.
POLITICAL GLOBALIZATION
POLITICAL GLOBALIZATION
 It refers to the growth of the worldwide political system, both in size and complexity
it includes:
1. National governments
2. Their governments
3. Intergovernmental organizations
4. Government-independent of elements of global civil society such as :
International and non-governmental movement organizations
 The creation and existence of the United Nations (UN) has been called one of the classic examples
of political globalization
UNITED NATIONS AND ITS ROLE
IN GLOBALIZATION
 It is an international organization created on 24th October of 1945 when

the UN charter was signed.
 Main Objectives are:
1. To maintain international peace and security and
2. Promoting human right and global development
 The UN member states are the 193 sovereign states that are members of
the UN and have equal representation in the UN General Assembly and
51 founding countries
 The UN is the world’s largest intergovernmental organization which is
based in New York (Headquarter)
GLOBAL ECONOMY
GLOBAL ECONOMY
 The world economy or global economy is the economy of the humans of the world, considered as
the international exchange of goods and services that is expressed in monetary units of account.
 It may also mean as 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, institutions, corporations, and labor.
ECONOMIC SYSTEM IN THE
PHILIPPINES
 The Philippines has a mixed economic system which includes a variety of private freedom,
combined with centralized economic planning and government regulation.
 Philippines is also a member of the Asia-Pacific Economic Cooperation (APEC) and the Association
of Southeast Asian Nations (ASEAN)
 The economy of the Philippines is the world’s 34th largest economy by nominal GDP according to
the 2017 estimate of the International Monetary Fund’s statistics, it is the 13 th largest economy in
Asia, and the 3rd largest economy in the ASEAN after Indonesia and Thailand.
 The Philippines is one of the emerging markets and is the 6th richest in Southeast Asia by GDP per
capita values, after the regional countries of Singapore, Brunei, Malaysia, Thailand and Indonesia
PHILIPPINES: NEW INDUSTRIALIZED
COUNTRY
 The Philippines is primarily considered a newly

industrialized country, which has an economy in transition
from one based on agriculture to one based more on services
and manufacturing.
 As of 2017, GDP by purchasing power parity was estimated

to be at S1.980 trillion dollars.
GLOBAL MARKET INTEGRATION
 Global Market Integration means that price differences between countries are eliminated as all
markets become one
 One way to the progress of globalization is to look at trends how prices converge or become similar
across countries
 When groups of prices often move proportionally to each other and when this relation is very clear
among different markets it said that the markets are integrated. Hence, it could be concluded that
market integration is an indicator that explains how much different markets are related to each
other.
THE LAW OF ONE PRICE
 states that the prices of identical security, commodities or asset traded anywhere that are exchanged
in two or more markets must be the same regardless of location and currency
 Identical goods must have identical prices
Example:
an ounce of gold must have the same price expressed in terms of dollars in London as it does in
Tokyo
 This theory postulates that the difference in prices for identical commodities in two countries is due
to foreign exchange (ForEx) rate between the two countries.
MARKET INTEGRATION in 21ST CENTURY
 Globalization is the integration of people with world markets is perhaps the most significant and
pervasive economic development of the late 20th and early 21st centuries.
 In economics research, globalization ,means trade integration.
 as economic integration unfolds, producers become inserted directly into global markets on the
output side, through production of exports, and/or on the inputs, technologies, or factors.

Chapter 2 - Structures of Globalization

Uploaded by

Copyright:

Available Formats

Chapter 2 - Structures of Globalization

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chapter 2 - Structures of Globalization

Uploaded by

Copyright:

Available Formats

THE STRUCTURES OF

 Academic literature commonly subdivides globalization into

 Economic globalization primarily comprises the globalization of:

 It is also called International Bank for Reconstruction and Development (IBRD)

 Increases in economic growth and decreases poverty in developing countries

1. PERU – $2,850,000,000.00 11. MOROCCO - $1,050,000,000.00

 Formerly known as General Agreement on Tariffs and Trade (GATT)

 The WTO has six key objectives:

 is an organization of 189 countries, working to foster global monetary cooperation, secure

3. THE GLOBALIZATION OF SPORT

 It is an international organization created on 24th October of 1945 when

 Global economy or economic Globalization is concerned on the globalization of production,

 The Philippines is primarily considered a newly

 As of 2017, GDP by purchasing power parity was estimated

 Identical goods must have identical prices

 In economics research, globalization ,means trade integration.

You might also like