The document outlines the concept of economic globalization, describing it as the interconnectedness of national economies driven by trade and market integration, with significant actors including international organizations, multinational corporations, and global civil society. It also introduces Wallerstein's world-systems theory, categorizing countries into core, semi-periphery, and periphery, highlighting their varying levels of economic power and development. Additionally, it discusses the effects of globalization on governance, emphasizing the role of institutions like the United Nations and regional commissions in addressing global issues.

1. STRUCTURES OF
GLOBALIZATION
The Global Economy

2. Lesson Objectives
Define economic globalization
Identify the actors that facilitate economic globalization
Define the modern world system
Articulate a stance on global economic integration

3. What is Global Economy?
• It denotes that the economies of various countries are
more interconnected from extraction, production,
distribution, consumption, to disposal of goods and
services (Carf and Schiliro, 2008).

4. •Economic Globalization…
- economic globalization goes beyond
internalization as it involves the
integration of functions and processes
of economic activities. (Dicken, 2004)

5. What is Economic Globalization?
• It driven by the “growing scale of cross-border trade of
commodities and services” (Shangquan, 2000)
• Focus on increasing economic trade interrelations among
countries. (Steger, 2010; Al-Rodhan, et.al 2006; Shangquan, 2000)

6. What is Economic Globalization?
• Governed by neoliberal principles with the role of the market as
central driver of economic activities with less government
interventions (Martin Schumann & Camiller, 1997).
• Entails global restructuring and readjustments where developed
countries play a dominant role (Sungquan, 2000)

7. What is Economic Globalization?
• It is the expansion of national economies, the global market
driven by modern technologies and institutional set ups that
promote faster and easier flow of goods and capital (Sugden and
Wilsn, 2005).

8. What is Economic Integration?
• A process of combining or increasing the interconnectivity of national
economies to the regional or global economies (Clark et al., 2018)
• Requires efficient management of economic operations from different areas
in the world.
 innovations in transport logistics
 modernization of communication and transport system
Policies support integration of different process along the globe

9. Actors that Facilitates Economic
Globalization

10. Non-state Actors
1. International Economic Organizations
Help to facilitate trade and development discussions among
various states.

11. International Monetary Fund (IMF)
international organization composed of 183 countries. It aims to
promote international monetary cooperation and exchange stability,
foster economic growth and high employment, provide short-term
financial assistance to countries to help ease balance of payments
and adjustments. (IMF, 2019)

12. World Bank (WB)
Organization for Economic Cooperation and Development
(OECD)

13. • Regional Organizations
 Association of Southeast Asian Nations (ASEAN)
 North American Free Trade Agreement (NAFTA)
- promote regional agreement and standards that facilitate better trade
and exchange of knowledge, human resources, and regional cooperation.

14. • G8 and G20
an advisory organizations that discuss current economic and
political problems and transfer the ideas from the group’s forum to
national legislative regulations (Shangquan, 2000:280)

15. • G8
consists of eight countries with major industrial economies
of the world which brought together for consultation and policy
coordination at the highest level.
CANADA FRANCE GERMANY ITALY
JAPAN RUSSIA UNITED KINGDOM USA

16. • G20
has a broader mandate to address issues related to trade,
development, and political stability. It consists of the following countries
ARGENTINAAUSTRALIA BRAZIL CANADA CHINA
FRANCE GERMANY INDIA INDONESIA ITALY
JAPANMEXICO RUSSIA SAUDI ARABIA SOUTH AFRICA
SOUTH KOREA TURKEY UK USA

17. 2. Multinational Companies (MNCs)
- considered to be the main carrier of economic globalization
(Shangquan, 2000; 2).
- started to emerge during WWII when US industrial production
increased by 44% (Strange, 1996).
1996 – 44, 000 MNCs in the world with 280,000 overseas subsidiaries and
branch offices
2006 – 88,000 MNCs identified (UNCTAD 2007)

18. 3. Central Banks
other prime movers of economic globalization;
considered one of the most powerful institutions in the
world of economy as they can leas economic development.

19. 4. Global Civil Society
major driver of economic globalization.
is a system of nongovernment institutions that operate across
geographical borders and organize and mobilize for a common issue or
cause (Keane, 2003).

20. composed of either individuals or group of individuals
disadvantaged by the effects of the globalization of the world economy
as they protest and seek alternatives.
In 1992, global civil society has made its mark in global
development during UN Conference on Environment and
Development.

21. What is the Modern World System?
the seminal work of Immanuel Wallerstein on the world-system theory
in (1974) which recognizes that social and economic change is not only
endogenous to a county, but is affected by its interaction to exogenous
institutions, thus the focus on world-systems (Chase-Dunn, 2018).
Endogenous – variables inside or exist within the model of economic
model
Exogenous – variables exist outside the economic model or system of
analysis.

22. constitutes a social system composed of boundaries, structures,
member groups, rules of legitimation, and coherence.
The modern world system is based on the theory of Wallerstein which
posited that the global economy is divided into the core, semi-periphery,
and periphery. The core is the center of economic activities where most of the
population lives and economic institutions and services are based. However,
majority of the raw materials and productions are done or sourced out in the periphery.
The semi-periphery areas serve as distributors or add value to the raw materials by
processing them for the core areas.

23. CORE – this refers to the countries with the highest levels of economic power.
European North American Australian Countries
PERIPHERY - refers to the countries that have low levels of economic
development.
Africa Asia Central America
SEMI-PERIPHERY – refers to countries who are in a transition stage between
the core and periphery.
Newly Industrialized Countries (NICs) of Asia

24. Lesson3
The Global Interstate System

25. Lesson Objectives
• Explain the effects of globalization on governments;
• Identify the institutions that govern international
relations; and
• Differentiate internationalism from globalism

26. • Global Interstate System – is an institutional arrangement of
governance that addresses regional or globalized issues that go
beyond the scope of a nation-state.
• Internationalism – puts emphasis on diversity and celebrates
multiculturalism.
• Globalism – focuses more on the economic aspect of the
exchanges among countries and society

27. Interstate System
- System of unequally powerful and competing states in which no single
state is capable of imposing control on all others. These states are in
interaction with one another in a set of shifting alliance and wars and
changes in relative power of states upsets any temporary set of
alliances, leading to restructuring of the balance power.
- Is the form of governance for a globalization.

28. Effects of Globalization on Governments
• World becomes more interconnected through politics, trade,
communications, the role of nation-states and government.
• National and local policies are not only based on local context but
also on international and global realities.
E.g. Montreal Protocol

29. The Montreal Protocol
• signed on August 26, 1987 by 46 countries.
• an international treaty aimed at protecting the ozone layer.
• It addresses the production and consumption of substances that
deplete the ozone layer, such as chlorofluorocarbons (CFCs) and other
ozone-depleting chemicals.
• The protocol has been successful in phasing out the use of many
harmful substances, contributing to the recovery of the ozone layer
and mitigating environmental and health risks.

30. • Local governments would like to attract major global investors in
their community by setting up for instance their manufacturing
firm in the area.
 It entails converting tracks of agricultural land to an industrial zone.
Global corporation is also demand lower taxes and lower income wage in
order to finalize their investment in the area.

31. Institutions that Governs Globalization
1. UNITED NATIONS (UN) – the facilitator of global governance with 192
states members. (Meyer, 2011)
2. REGIONAL COMMISSIONS – group of officials from different
countries that instruct and debate, in charge of making certain law that
promulgate certain rights for economic and social development. (CEPAL et al.,
2015).

32. Example of Regional Commissions are as follows:
Economic Commission for Africa (ECA)
Economic Commission for Europe (ECE)
Economic Commission for Latin American and the Carribean
(ECLAC)
Economic and Social Commission for Asia and the Pacific (ESCAP)
Economic and Social Commission for Western Asia (ESCWA)

33. 3. WORLD BANK – an international financial institution that
provides loans to countries of the world for capital projects.
Established in 1944 during Bretton Woods Conference.
Other members:
International Bank for Reconstruction and Development (IRDB)
International Development Association (IDA)
International Finance Corporation (IFC)
Multilateral Investment Guarantee Agency (MIGA)