The document discusses key concepts related to economic globalization. It defines economic globalization as the intensification and expansion of global economic interactions through increased trade, communication, transportation and financial flows. The main drivers of globalization are identified as international organizations like the WTO that reduce trade barriers, as well as growing foreign investment, technology advancement and multinational corporations. International governmental organizations, nation-states, and multilateral development banks are highlighted as important actors facilitating economic globalization.

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Economic Globalization
The Contemporary World (STI College)
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2. 1. Define economic globalization?
Economic globalization refers to the intensification and expansion of mutual
economic interactions on the world scale. It is the spread of trade, communication, and
transportation systems on a global scale in the interest of promoting international
commerce. It also refers to trans-country flow of capital/finance or money and
enhancement in world-wide economic relationships.
2.Who is driving globalization? Who are the actors that facilitate economic
globalization?
The drivers of globalization are the establishment of WTO, declining trade barriers,
declining investment barriers, growth in foreign direct investment, strides in
technology/technology advancement, and growth of MNCs.
The actors that facilitate economic globalization are the International Economic
and Financial Organizations, International Governmental Organizations (IGOs),
Media, Multilateral Development Banks, Nation-States, Non-Governmental
Organizations (NGOs), Trans-National Corporations (TNCs), and United Nations
(UN) System.
3. Define the modern world system.
Modern world system is a social system comprised of nations that are politically
and economically interdependent. Within this system, nations are hierarchically
structured according to a world-wide division of labor in the world economy.
4.Articulate a stance on global economic integration. Explain the role of
international financial institutions in the creation of a global economy.
Through economic integration, trade’s pace has increased dramatically: In 1960,
trade accounted for 24% of the world's GDP; today, it is more than double that. Almost
no human being alive today lives with stuff only manufactured in their home country. While
it is tempting to say that the types of goods being trade like pharmaceuticals, computers,
software, financial services represent something wholly new, you could just as easily see
this as part of the evolution of trade itself and not because if economic integration. As
tastes change and consumers become more affluent, the things that they want to buy
change. Well, some historians argue that an economically interdependent world is much
less likely to go to war. And that may be true, but increasing global, cultural, and economic
integration has not led to an end to violence and poverty. Since economic integration’s
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goal is to lower trade barriers (tariffs), this might affect local products and businesses as
dominant global brands enter the country. Even though the intention to lower the barriers
is a good idea, it is somehow bad because it ruins the country’s culture, and it risks state
security. Economic integration benefits more those who enter the country since there is
no tariffs. To conclude, I’m against economic integration even though it has its own
advantages, because I think it should be changed or improved.
Meanwhile, a financial institution is basically an institution that handles financial
transactions such as investments, loans and deposits. Financial institutions' primary
function is to provide the economy with liquidity and to enable a higher level of economic
activity than would otherwise be possible. People may not be able to take advantage of
rising and decreasing interest rates without financial institutions and there would be no
saving of money, other than the stacks you keep under your mattress,
5.Narrate a short history of global market integration in the twentieth century.
Identify the attributes of global corporations.
Global market integration is the result of establishing of global economy that
involved the homogenization of trade and commerce. The global market integration in
20th century started when big America corporations began to emerge after the Second
World War with the rise of new conglomerates such as Continental Bank, Sheraton Hotels
& Resorts, Toyota, and Nissan. International trade and exchange of goods and services
were already practiced in this century. Countries were able to extend their reach beyond
borders and patterns of trade and technology because of developments in shipping and
navigation.
The attributes of global corporations are: very high assets and turnover, network
of branches, control, continued growth, sophisticated technology, right skills, forceful
marketing and advertising, and good quality products.
6.Explain the effects of globalization on governments. Give the institutions that
govern international relations.
Globalization affects the size and composition of government expenditures. Also,
globalization will affect government’s ability to continue providing social protection.
Government expenditure refers to all government consumption, investment, and transfer
payments. This include education, national defense, healthcare, and welfare. Because of
the demand of globalization, the state needs to keep up with it and will result in more
government spending. Lastly, since one of the goals of globalization is to remove
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4. boundaries between nations, this can affect the national’s security and data privacy.
Government would not be able to control the large scope of migration and imports.
The General Agreement on Tariffs and Trade (GATT) and the World Trade
Organization (WTO) have been touted as premier examples of institutions in internal
relations
7.Differentiate internationalism from globalism. What are the roles and functions
of the United Nations in global governance?
Internationalism is a political principle which transcends nationalism. It advocates
a greater political or economic cooperation among nations and people. It looks at a world
ordered by systems that promote functionalism, embodied in transparency. Meanwhile,
globalism is a group of ideologies that advocate the concept of globalization. It tends to
advocate for such policies as increases in immigration, interventionism, and global
governance. It looks at the pursuit of interest through the process of pure capitalism on
the global level.
United Nations emerges as an actor with distinct advantages, including the equal
representation of its 192 Member States under the UN Charter. UN is the facilitator of
global governance since it brings together many countries. It means to serve as a central
forum within what issues can be addressed.
8.What are the challenges of global governance in the twenty-first century?
Explain the relevance of the state mind globalization.
We are witnessing rise in both new and old borderless challenges of global
governance such as climate change, cybercrime, financial crises, and international
terrorism. The challenge of climate change has been characterized as a 'super-wicked'
issue. It is complicatedly connected to everything else – energy, land use, food, water,
transportation, trade, advancement, housing, investment, security, and so forth.
Understanding it requires huge, remarkable collective action by countries with different
interests, needs and conditions, where powerful forces pushing for environmentally
dangerous advancement win. The sharing of responsibility in decreasing climate change
has thus been a central challenge in international negotiation.
Also, in a digital age, where online communication has become the norm, internet
users and governments face increased risks of becoming the targets of cyber-attacks.
As cyber criminals continue to develop and advance their techniques, they are also
shifting their targets — focusing less on theft of financial information and more on
business espionage and accessing government information. To fight fast-spreading
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cybercrime, governments must collaborate globally to develop an effective model that will
control the threat.
Furthermore, the financial crisis revealed the defects of global governance. Since
not every country has the same financial capability. Developing countries are ones who
are the most badly affected by globalization. Now, under the pressure of the international
financial crisis we must deal with new risks and threats that can change the security
environment for good. That is why the analysis of security governance as well as global
governance is crucial at this moment. Lastly, terrorism knows no borders and it is one of
the main threats to international peace and security. Terrorism is big threat where if the
actor of global governance imposed a policy that these terrorists didn’t like, they may
attack a specific country which may affect innocent citizens.
The relevance of the nation-state in a global world is largely a regulatory one as
the chief factor in global interdependence. The state’s role has changed from being an
authoritative figure to a dependent figure relying on others making decisions or making
decisions based on other’s beliefs. However, this could be seen as positive, as a strong
state relies on strong allies.
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