THE CONTEMPORARY WORLD WITH
PEACE EDUCATION
Prof. Roxan B. Sta Ana
INTRODUCTION TO THE COURSE Week 1
THE CONTEMPORARY WORLD
Course Title: The Contemporary World
No. of Units : 3 Units
Number of Hours: 3 hours every week for 18 weeks
or 54 hours in a semester
COURSE DESCRIPTION:
This course introduces students to the contemporary world by examining the
multifaceted phenomenon of globalization. Using the various disciplines of the
social sciences, it examines the economic, social, political, technological, and other
transformations that have created an increasing awareness of the
interconnectedness of peoples and places around the globe. To this end, the course
provides an overview of the various debates in global governance, development,
and sustainability. Beyond exposing the student to the world outside the Philippines,
it seeks to inculcate a sense of global citizenship and global ethical responsibility.
This course includes mandatory topics on population education in the context of
population and demography.
LEARNING OUTCOMES:
A.Competencies
1. Distinguish different interpretations of and approaches to globalization
2. Describe the emergence of global economic, political, social, and cultural
systems
3. Analyze the various contemporary drivers of globalization
4. Understand the issues confronting the nation-state
5. Assess the effects of globalization on different social units and their
responses
LEARNING OUTCOMES:
B. Skills
1. Analyze contemporary news events in the context of globalization
2. Analyze global issues in relation to Filipinos and the Philippines
3. Write a research paper with proper citations on a topic related to
globalization
C. Values
1. Articulate personal positions on various global issues
2. 2. Identify the ethical implications of global citizenship
ASSIGNMENT
Bring an article about globalization.
Read module 1 of your book pages 2 to 7
INTRODUCTION TO GLOBALIZATION Week 2
This module introduces the learners to the
concepts and various definitions of globalization
as a process, condition, and ideology. It also
exposes the learners to the academic and non -
biased definition of globalization based on
political scientists, economists and culture and
communication experts.
INTENDED LEARNING OUTCOMES
At the end of this section, you are expected to:
1.Examine the various conceptions of globalizations;
1.Distinguish the different definitions of globalization from experts;
and
2.Adopt a working definition of globalization
MOTIVATION
Create as many words as you can from the word
“GLOBALIZATION”
3 letters and above
Global ball gall tall ion nail
not
Bail nag bag tag zig log
goon
Boot lit nit bit lion
WHAT IS GLOBAL
ECONOMIC
IMPERIALISM?
GLOBAL ECONOMIC IMPERIALISM
• Filipinos have become alien to Filipino products.
• The internet mad the world smaller and commination faster
• Consumption of Western ideas and adoption of behavior have
become rapid and widespread
GLOBAL ECONOMIC IMPERIALISM
Economic imperialism
-is a situation in which one nation assumes economic power or
influence over the others
• Age of Westernization and/or Americanization of contemporary
Filipinos
- Filipinos adopt ideas and behavior that are characteristic of
West and of North America while relegating the ideas and
behavior traditional in their culture.
WHAT IS
GLOBALIZATION?
WHAT IS GLOBALIZATION?
 is a phenomenon.
 It is something that is difficult to understand
 It is a term whose meaning is obscure (Reich,1998).
 It stands for quite a large public spread across the world as
one of the defining terms of the 20th
century social
consciousness (Schottle, 1995).
 It is often distinguished more by what it is not, rather than by
what it is.
WHAT IS GLOBALIZATION?
 Globalization is not the same as global, which points our
aspirations for an end state of affairs wherein values are
shared by or pertinent to all the world’s five billion people,
their environment, their roles as citizens, consumers and
producers with an interest in collective action designed to
solve common problems. Nor it is universalism – values that
embrace all humanity (Rosenau, 1996).
WHAT IS GLOBALIZATION?
 It is described as something that is comprised of multiple
sameness and interconnectedness that go beyond the nation
– states. It is a process in which individuals and
organizations in one part of the world are affected by the
activities, affairs, and convictions on another part of the
globe ( McGrew, 1990).
WHAT IS GLOBALIZATION?
 It denotes a range of processes nesting under one rather
unwieldy epithet. In part, its conceptual difficulty to handle or
control arises from the fact that global flows occur in different
physical and mental dimensions (Freeden, 2003).
WHAT IS GLOBALIZATION?
 Five dimensions of global cultural flow (Appadurai, 1996)
a. Enthoscapes
b. Technoscapes
c. Mediascapes
d. Financescapes
e. Ideoscapes
 These landscapes are created due to movement of people,
technologies, information through media, money and
commodities and political ideas.
WHAT IS GLOBALIZATION?
 It should be limited to a set of intricate social processes that
modify prevailing social statuses based on the modern
regime of self - dependent nation – states (Steger, 2005 &
2014a).
 A multidimensional group of social procedures that build,
accelerate, elaborate, and intensify worldwide interactions
while at the same time, nurturing in people an increasing
consciousness of deepening linkages between the local and
far – off.
GLOBALITY – Globalization is a
condition
 Future social condition characterized by thick economic,
political and cultural interconnections and global flows that
make currently existing pollical borders and economic
barriers relevant.
 The condition that may are now experiencing is a result of
the existence of multinational and transnational companies,
international trading, economic blocks, the UN and EU and
the like.
GLOBALISM– Globalization is an
ideology
 Ideology
- Dogmatic
- Connotes political sophistication
- It may also refer to the dominant modes of thought (Gerring,
1997).
- It is a system of widely shared ideas, patterned beliefs,
guiding norms and values, and ideals accepted as truth by
some groups (Steger, 2014)
- It is defined by core claims. Globalization has core claims
that is why it is an ideology
GLOBALISM– Globalization is an
ideology
 Five core claims of Globalism
1. Globalization is about the liberalization and global
integration of markets.
2. Globalization is inevitable and irreversible
3. Nobody is in charge of globalization
4. Globalization benefits everyone
5. Globalization furthers the spread of democracy in the world.
Globalization for POLITICAL
SCIENTISTS
 It serves as a challenge for nation – states.
 The strengthening of regional blocks like EU, ASEAN and UN
is gaining a stable ground.
 The emergence of global political norms is evident – for
instance,
 The norm that each country is entitled to exploitation of
human natural resources for its own growth (Giensen & Pijl,
2006)
Globalization for POLITICAL
SCIENTISTS
 Emergence of global corporations
 Businessmen and investors can already demand what they
want from nation – state that would advance their interests
 Ex.
 Microsoft’s GDP is 62.48 million dollars(3rd
biggest corp.)
 Croatia’s GDP is 60.59 million dollars
Globalization for ECONOMIST
 Increase in free trade, speed of trade, global economic
organization and regional trade block.
 The expansion of free trade allows government not to restrict
importations nor impede the export of local products.
 Importing and exporting are done in millisecond.
 Establishment of economic organizations
 IMF, WB, WTO, ILO, EFTA, AFTA, Mercursor, a customs union
among Brazil, Argentina, Uruguay, Paraguay and Venezuela
and Trans- Pacific Partnership
Globalization for CULTURE AND
COMMUNICATION
 GLOBAL VILLAGE
- The word has become a borderless world.
- Communication technology makes the world shrink.
 Media has connected the world in ways that created a global
village (McLuhan, 1964).
Unbiased working definition
 Globalization refers to the expansion and intensification of
social relations and consciousness across world – time and
world – space (Steger, 2013).
Globalization for CULTURE AND
COMMUNICATION
 CULTURAL IMPERIALISM
- It is the conviction that there is a “better” culture.
- Some sees other cultures as superior to theirs, forming inferior
or nondominant cultures.
 Cultural globalization, the spread of popular culture flows
from dominant to nondominant cultures. (developed to
developing)
Four Attributes of Globalization
1. Globalization has various forms of connectivity such that it
can be economic, political or cultural.
Ex. Minimum wage earners vs. above the minimum
2. Globalization allows for the expansion and stretching of
social relations.
Ex. NGO’s
Philippine National Red Cross is an affiliate of International
Committee of Red Cross (Switzerland)
Sister – city relationships –
Cebu and Haarlemmermeer City (Netherlands)
Four Attributes of Globalization
3. Globalization intensifies and accelerates social exchanges
and activities.
-snail mail to email
-cable TV and internet live streaming
4. Globalization occurs worldwide
-global citizen
-#prayformarawi
-K-pop
ACITVITY 1
Bring out your assignments and answer page 9 and
11 of your book.
CONTINUOUS MONITORING
Answer page 13 of your book.
Read Globalization and Challenges: What are
globalizations' contemporary issues? By Irani, F. & Noruzi
M (2011).
THE STRUCTURES OF GLOBALIZATION Week 3
TOPICS
• The Global Economy
• Market Integration
• The Global Interstate
System
• Contemporary Global
Governance
THE GLOBAL ECONOMY
LEARNING OUTCOMES
1. define economic globalization
2. analyze the actors that facilitate economic
globalization; and
3. articulate a stance on global economic integration.
RECAP
Globalization
refers to the expansion and intensification of social
relations and consciousness across world – time and
world – space (Steger, 2013).
Globalization is a multidimensional phenomenon ,
creating economic, political, cultural, and even
technological forms of connectivity
This section focuses on the ECONOMIC DIMENSION
ECONOMIC GLOBALIZATION
-refers to the expanding interdependence of world economies.
- the growing scale of cross- border trade commodities and
services, flow of international capital, and wide and rapid
spread of technology ( Shangquan, 2000).
Ex.
Phils cross – border trading with China, US and Australia
The flow of international capital can be observed in FDI
(Foreign Direct Investment)
FDI is a type of investment in which a company establishes
a business in another country for production of goods ands
services and still takes part in the management of the
business.
Example
Toyota Motor Philippines is a subsidiary of Toyota Motor
Corporation in Japan
A historical process, the result of human innovation and
technological progress.
“It refers to the increasing integration of economies around
the world, particularly through the movement of goods,
services and capital across borders (IMF, 2008)
IMF – International Monetary Fund
HISTORY OF
THE INDUS VALLEY CIVILIZATION all the way to
MESOPOTAMIA
Early as 4000 BC
Mesopotamia - TOKEN SYSTEM as COMMODITY MONEY
HISTORY OF
Economic movement in
Asia, Africa and
Europe through the Silk
Road
-It led to the discovery
of the Philippines.
4 INTERCONNECTED DIMENSIONS OF
ECONOMY (BENCZES, 2014)
(1) the globalization of trade of goods and services;
(2) the globalization of financial and capital markets;
(3) the globalization of technology and communication;
and
(4) the globalization of production.
1. THE GLOBALIZATION OF TRADE OF GOODS
AND SERVICES is demonstrated in…
A. Establishment of WORLD TRADE ORGANIZATION (WTO)
eases trade among countries.
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. e.g. (May 2013)
Ensures that trade flows as smoothly, predictably and freely as
possible(WTO, 2012).
EXAMPLE: Japan and European Union bought a case to WTO regarding
unfair renewable energy serves offered in Ontario.
1. THE GLOBALIZATION OF TRADE OF GOODS
AND SERVICES is demonstrated in…
B. Emergence of China as a major supplier and exporter of
manufactured goods
C. Increasing number of business process outsourcing (BPO)
companies in the Phils.
Cheap labor cost, English proficiency and customer service
skills
2. THE GLOBALIZATION OF FINANCIAL AND
CAPITAL MARKETS is evident in…
A. Liberalization of financial and capital markets
Cross listing of shares on one or more foreign stock
exchange, cross hedging and diversification of portfolio
and round the clock trading world wide.
3. THE GLOBALIZATION OF TECHNOLOGY AND
COMMUNICATION emphasizes that….
Various transactions and interactivities that transpire
instantly due to the internet and communication technology
4. THE GLOBALIZATION OF PRODUCTION is
best illustrated…
-The existence of Multinational Corporations (MNCs) and
Transnational Corporations (TNCs)
-Example: Coca – Cola Company in Atlanta, Georgia, USA
THE MOST FITTING
DEFINITION OF
The process of making the world economy an “organic
system” by extending transnational economic processes
and relations to more and more countries and by
deepening the economic interdependencies among them.
( Szentes, 2003).
EXAMPLE Price movements of imported fuels in the Philippines
DIFFERENT AGENTS THAT BRING ABOUT THE
INTERDEPENDENCIES OF GLOBAL ECONOMIES
1. Nation – state ( a state ruling over a nation)
The role of nation-state as manager of the national economy
is redefined by globalization (Boyer and Drache, 1996).
Nation –states still acts as a buffer to negative effects of
globalization.
Midwives of globalization (Brodie, 1996)
- Trade war between US and China
DIFFERENT AGENTS THAT BRING ABOUT THE
INTERDEPENDENCIES OF GLOBAL ECONOMIES
2. Global corporations
Nation – state has ceased to exist as the primary economic
organization unit in the global market. Filipino consumers prefer
H&M, Uniqlo, Fedex etc. – transforming national economy to
global one
Ex.
San Miguel Corporation and Jollibee Foods Corporation
- (TNC’s are the main driving force of economic globalization
accounting for 2/3 of the world exports
DIFFERENT AGENTS THAT BRING ABOUT THE
INTERDEPENDENCIES OF GLOBAL ECONOMIES
3. International Monetary System
- refers to internationally agreed rules, conventions and
institutions for facilitating international trade, investments
and flow of capital among nation – states.
1. Gold Standard – fixed exchange rate regime with gold
as the only international reserve and participating
countries determine the gold content of national currencies
2. Bretton Woods System – US dollar was only the
convertible currency. Thus it was agreed by 44 countries to
adopt the gold exchange standard.
3 Global IMS
2.1 INTERNATIONAL BANK FOR RECONSTRUCTION
AND DEVELOPMENT (IBRD)
-now known as WORLD BANK
WB is responsible for post war reconstructions
Increases in economic growth and decreases poverty in
developing countries.
e.g. Increases in education since 1962 like Bangladesh,
Chad and Afghanistan
2.2 INTERNATIONAL MONETARY FUND (IMF)
-promote international financial corporation and
strengthen international trade
Provides short term loans to countries when an
emergency occurs.
e.g. Yemen receive 93 Million USD (2012) during
struggle to terrorism.
3. European Monetary System (EMS)
-established after the collapse of Bretton Woods
-successful in the stabilization process of exchange rates
-founded EMU (European Economic and Monetary Union)
- national currencies were abandoned and member states
delegated monetary policy onto a supranational level
administered by the European Central Bank (European
Commission, 2008)
-develop international trade and trade policy
UNITES? DIVIDES?
THE WORLD
/
UNITES?
Foster universal economic growth and
development (Benczes, 2014)
Allows worldwide distribution of
income
Ex. Australia
Reduces poverty (World Bank, 2002)
Ex. Nurses abroad
Creates mutual dependence between
developing and developed countries
(Arrighi, 2005)
Ex. Labor or Services vs. Raw
materials
Sources of goods and services are exploited
Ex. Compensate labor with cheap cost
Destroy nature and don’t rehabilitate it
Economic globalization does not benefit all
nations(World Bank, 2002)
Ex. Uneven experience among nations.
Workers in TNCs are paid less compared to
their counterpart in the companies’ home
countries. (Cheap labor in the Philippines)
Capitalism created the different levels of
wages in the economic arena of world systems
(Wallerstien, 2005)
Ex. Inequality of skills, experience and
DIVIDES?
CONCLUSION
Economic Globalization affects all nations and citizens
through the increasing integration of economies around the
borderless world.
MARKET INTEGRATION Week 4
LEARNING OUTCOMES
1. explain the role of international financial institutions in
the creation of a global economy;
2. narrate a short history of global market integration in
the 20th
century; and
3. infer the attributes of global corporations
MARKET INTEGRATION
is the fusing of many markets into one.
Example: In one market a commodity has a single price such as the price of
carrots would be the same in east Paris and west Paris if these areas were
part of the same market. If the price of carrots in west Paris was higher,
sellers of carrots would move from the east to the west and prices would
equalize. The price of carrots in Paris and in Lisbon might be different,
though, and high transport costs and other kinds of expenses might mean
that it would be uneconomical for Portuguese sellers to move their stocks to
France if prices were higher there.
 In distinct markets the price of the same good can be different for long
periods of time.
THE UNITED NATIONS
WHY DO WE HAVE THE UN?
After World War I, the League of Nations was created
to prevent another world war.
During World War II, the League of Nations was
eliminated because it failed to prevent another war.
In 1945, with the end of WWII nearing, the United
Nations was created to replace the failed League of
Nations.
HISTORY OF THE UNITED NATIONS
In 1945, San Francisco hosted the United Nations
Conference on International Organizations.
There were 50 countries represented at the United
Nations Conference including: United States, France,
United Kingdom, Soviet Union (now Russia), and China.
These five countries are known as the “Permanent Five”
members.
WHAT DOES THE UNITED NATIONS DO?
The UN was created to maintain international
peace and security.
It also works to maintain friendly relationships
between countries.
Lastly, it works to promote economic
development of member nations.
WHO AND WHERE?
Almost all countries in the world are members of the
UN.
There are currently 191 countries in the UN.
The headquarters is in New York City.
The International Court of Justice (ICJ) is located in
The Hague in the Netherlands.
UN WORLD HEADQUARTERS
NEW YORK
INTERNATIONAL COURT OF JUSTICE
THE HAGUE, NETHERLANDS
THE GENERAL ASSEMBLY
INSIDE UN HEADQUARTERS
THE UN SECURITY COUNCIL
INSIDE WORLD HEADQUARTERS
SECURITY COUNCIL SPEAKING ON A SOLUTION FOR HAITI’S
VIOLENCE
UN PEACEKEEPERS
THEY ALWAYS WEAR BLUE BERETS OR BLUE HELMETS TO
IDENTIFY THEMSELVES.
WORLD BANK (WB) AND INTERNATIONAL
MONETARY FUND (IMF)
First government – sponsored international financial
institutions
Earlier in 1944
Monetary and Financial Conference in Breton Woods,
New Hampshire (US)
2 TYPES OF INTERNATIONAL FINANCIAL
INSTITUITONS:
1. intergovernmental
2. private
WB
intergovernmental
To end extreme poverty and promote shared prosperity
in a sustainable way (worldbank.org)
5 ORGANIZATIONS UNDER
- Facilitate the granting of
loans and financial assistance to other countries
1. International Bank for Reconstruction and Development
(IBRD),
2. the International Development Association (IDA),
3. the International Finance Corporation (IFC),
4. the Multilateral Investment Guarantee Agency (MIGA)
5. the International Centre for Settlement of Investment
Disputes (ICSID).
IMF
intergovernmental
Works to foster monetary cooperation, secure
financial stability, facilitate international trade and
more (imf.org/en/About)
Grants financial assistance and loans to
developing countries
REGIONAL DEVELOPMENT BANKS
1960s
1964
Intergovernmental
Spur progress and economic growth in order to address
and reduce poverty
Foster sustainable development in their respective
member countries
PRIVATE INTERNATIONAL FINANCIAL INSTITUTIONS
1. Citigroup
 American multinational investment banking and financial
corporation
4th
largest bank in the US
2. Merill Lynch
Wealth management division of the Bank of America
Both provide investments around the world (foreign direct
investments, stocks or financial loans)
Both gov’t and private financial institutions help facilitate
the functionality of a global economy by lending money to
their member states and global corporations.
Example:
WB
Helps in project lending, establishes structural reforms,
provides support and technical assistance and helps design
modern and durable social safety nets foe the benefit of
both developed and developing nations (Stiglitz,1998)
Provides international capital like foreign direct
investments, short term and long-term investments
IMF
Helps establish institutional bodies to address and reduce
poverty like the Africa Regional Technical Assistance
Centers (AFRITACs) in 2001, and assists in creating the
conditons for mobilization of private, domestic and foreign
capital and job generation growth (Kohler, 2002).
Global Market Integration Video
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 the costs of trading
across borders fall, there is more potential for firms to take advantage
of price differences, for Portuguese carrot sellers to enter the French
market, for example.
Trading costs fall when new forms of transport are invented, or when
existing ones become faster and cheaper. Also, some costs are man-
made. For instance, states erect barriers to trade, such as tariffs and
quotas on imports. When these are reduced, the cost international
trading falls.
Integration of the global market started when big American
corporations began to emerge after the WWII followed by
Japan and Europe
International Telephone and Telegraph bought
Avis-Rent-a-Car
Continental Banking
Sheraton Hotels
Hartford Fire Insurance
Toyota, Nissan, Isuzu –Japanese global automobile corp.
Renault automobiles – French multinational automobile
manufacturer – (help in military postwar operations0
INTERNATIONAL COMPANIES
Are importers and exporters with no investments outside
their home countries
Example:
Apple, a company that produces consumer electronics such
as computers, tablets, mobile phones, etc. Apple sells its
products around the world, but the headquarters and all
product development are located within the U.S.
MULTINATIONAL COMPANIES (MNC)
Have investments in other countries, but do not have a coordinated
product offering in each country.
They are more focused on adapting their products and services to
each individual local market.
have fewer countries of interest than a global company might,
mainly because of the way they manage their local offerings.
localizing the products and the marketing to fit the culture
EXAMPLE OF MULTINATIONAL COMPANIES (MNC)
Starbucks, where most of the menu is the same, but offerings change based on
local tastes. Starbucks also customizes its locations to the local culture, providing
different seating and setup to make local customers more comfortable.
Honda, whose headquarters is in Japan, but
has established branches all over the world.
The product lineup varies
by country – for example, Honda trucks
were developed for the U.S. market.
GLOBAL COMPANIES
Have investments and are present in many countries.
They typically market their products and services to each individual local market
is one where the central headquarters of the business makes the decisions
for driving the business, and the same product(s) are offered in every
country, regardless of local culture and tastes.
the branches can personalize the marketing of their products to help
drive sales, but the product catalog remains the same. This allows the
company to manage its foreign sales and to keep one company culture
and one set of goods for efficiency purposes, but gives up the opportunity
to tailor offerings to these local markets.
EXAMPLES OF GLOBAL COMPANIES INCLUDE:
McDonald's restaurants are located across the globe, and
serve the same menu in all of their locations. There is, of
course, some menu customization depending on the location,
which leans more toward the multinational category, but at a
high level, McDonald's behaves like a global business.
Hyatt and Hilton hotels, where the draw to the customer is
that their rooms will be the same no matter what nation the
hotel is in.
TRANSNATIONAL COMPANIES (TNC)
Are more complex organizations that have investments in
foreign operations, they have a central corporate facility
but give decision- making, research and development, and
marketing powers to each individual in the foreign market
This type of worldwide operation offers the most
flexibility and versatility, but this comes at the cost of
streamlined management and product catalog.
EXAMPLES OF TRANSNATIONAL COMPANIES INCLUDE:
Nestle, which has a headquarters, but international
branches make their own decisions regarding operations
and product offering.
General Electric, which has branches across the globe,
many of which make their own decisions on policy and
business direction.
American corporations operating internationally were at
great advantage after the war – no competition
Return of Japanese and European Corporations to the
global market started the contemporary market integration
1974 – MNCs are the major global economic actors
The TRIAD – major economies of the world
1. US
2. EU
3. Japan
3 STRUCTURAL PERIODS OF GLOBAL
CORPORATION (AFTER THE WAR)
1. investment-based globalization (1950–70);
20000 new corporate alliances were formed
2. trade-based globalization (1970–95);
Controlled by producer –driven commodities
3. digital globalization (1995 onwards)
Integration of technology to reduce time and distance
Retailing of goods and services via internet
FOREIGN DIRECT INVESTMENTS
The development od global corporations can be
examined from the sources and the levels pf foreign direct
investment
FDI
FDI
Foreign direct investment is an investment in a business by an
investor from another country for which the foreign investor has
control over the company purchased.
 It is also defined as cross border investment made by a resident
in one economy in an enterprise in another company.
 FDI is direct investment into production in a country by a
company located in another country, either by buying a company
in the target country or by expanding operations of an existing
business in that country.
BY TARGET
HORIZONTAL FDI :-
Where the company carries out the same activities abroad as at home (for
example Toyota assembling cars in both Japan and UK)
VERTICAL FDI:-
When different storage of activities are added abroad .
Where the FDI takes the firm nearer to the market is called Forward vertical
FDI.
(for example toyota acquiring a car distributorship in america)
Where international integration moves back towards raw materials is called
Backward vertical FDI.(for example toyota acquiring a tyre manufacturers)
The ascent of global corporation is a reflection of
globalized market integration
Attribute of global corporations
1. An agent of desired economic development
2. An economic prominence
3. A very powerful entity that can create a crisis
Ex. Nestle hit their target economic development by making
their consumer products available in many parts of the
globe.
THE GLOBAL INTERSTATE SYSTEM Week 5
LEARNING OUTCOMES
1. Explain the effects of globalization on nation- states;
2. categorize the institutions that govern international
relations; and
3. differentiate internationalism from globalism.
STATE -
A compulsory political
organization with a
centralized government
that maintains the
legitimate use of force
within a certain
territory (Weber,
1997).
NATION -
Emphasizes the organic
ties that hold groups of
people together and
inspire a sense of
loyalty and belonging
– i.e., ethnicity,
labguage, religion and
others (Schattle, 2014)
NATION- STATE
A political community that emanates from civic society to
legitimately execute peace
Civic society is the basis of people’s oneness
IS IT TRUE?
Globalization has superseded the individual function and
jurisdiction of nation – states (Appadurai and Ohmae)
NO
Nation – states play vital roles in the way globalization
establishes a borderless world.
1. Nation – states can manipulate competitive advantages
with international and political issues, transnational civic
society organizations, and multinational companies.
2. They are accountable for a host of international norms
and standards, find themselves in subordinate position to
protect their economy and face new kinds of pressures of
supranational integration and focus on local fragmentation
(Schattle, 2014).
194 member states of the UN prove that globalization has
affected the dynamics of nation- states in the context of
their agency as legitimate holders of force in their
jurisdiction.
HOW?
1. Globalization is seen to impose a forced choice upon –
nation states.
- conform or left behind.
Nation – states are forced to realign their policies to be
congruent with the principles of free trade because of the
pressures from global corporations.
Ex. ASEAN established the ASEAN Free Trade Area (AFTA)
2. The establishment of economic and political integrations
Ex. European Union(EU) and the North America Free Trade
Agreement (NAFTA)
EU (supranational body ) – 28 members
- 17 states – single currency and monetary system etc.
The statehood of members in not dissolved, what has
changed is how the nation – states function in terms of
economy and politics
3. The establishment of international laws and principles.
Ex.
UN Security Council – creation of peacekeeping
operations and international sanctions and the
authorization of military action.
UN’s International Criminal Court (ICC) – prosecutes
individuals accused of crimes against humanity such as
genocide
Universal Declaration of Human Rights – individual rights
UN Convention of the Law of the Sea – use of world’s
oceans
4. The rise of transnational activism (TNA)
- activists groups of nation – states connect with their
counterparts in other states
Ex.
Advocacy based organization in the Philippines may connect
itself with and get support from the human rights group in
Europe to pressure the Phil Gov to uphold human right
5. Creation of new communications network
- through digital media
- network society
- online education
Social media – air sentiments and discuss issues
Government websites – avenue for concerns
Own funded TV networks – disseminate info
To facilitate connections among nation- states,
Intergovernmental Organizations (IGOs) were
established
Aim:
To foster strong economic, political, cultural,
educational and technical, intergovernmental
relationships.
ASEAN: ASSOCIATION OF SOUTH EAST
ASIAN NATIONS
10 MEMBER STATES
• Brunei Darussalam (7 January 1984)
• Cambodia (30 April 1999)
• Indonesia (8 August 1967)
• Lao PDR (23 July 1997)
• Malaysia (8 August 1967)
• Myanmar (23 July 1997)
• Philippines(8 August 1967)
• Singapore (8 August 1967)
• Thailand (8 August 1967)
• Vietnam (28 July 1995)
ASEAN EMBLEM
• The ASEAN Emblem represent a
stable, peaceful, united, and dynamic
ASEAN.
• The Colour of The ASEAN Emblem –
blue, white, red, and yellow– represent
the main colours of the state crests of
all the ASEAN Member States.
• Blue - Peace and Stability
• White - Purity
• Red - Brave and Dynamism
• Yellow - Prosperity
OVERVIEW
 8 August 1967 in Bangkok, Thailand, with the signing of
the ASEAN Declaration (Bangkok Declaration)
 Founding Fathers of ASEAN: 5 Foreign Ministers - Adam
Malik (Indonesia), Narciso R. Ramos ( Philippines), Tun
Abdul Razak (Malaysia), S. Rajaratnam (Singapore)
and Thanat Khoman (Thailand)
THE CONTEXT: 1960S
Conflict:
Indonesia-Malaysia (Konfrontasi 1962-66),
Philippines-Malaysia (over Sabah)
Singapore secession from Malaysia
Mindanao, Southern Thailand
Thailand was brokering reconciliation among Indonesia, the Philippines and
Malaysia
Poor
Communism
Cold War, arms race, proxy wars
Indochina War: Vietnam, Laos Cambodia
Burma: 1962
Club of dictators: Marcos, Suharto, Thanom, Lee Kwan Yew, Abdul Rahman
ASEAN Aims and Purposes
(Bangkok Declaration 1967)
To accelerate the economic growth, social progress
and cultural development in the region through joint
endeavours.
To promote regional peace and stability through
abiding respect for justice and the rule of law.
To advance peace and sustainability
To promote active and beneficial cooperation and
mutual assistance on matters of common interest in the
economic, technical, cultural, administrative and
scientific fields
ASEAN Aims and Purposes
(Bangkok Declaration 1967)
To provide assistance to each other in the framework
of training and research installations in the
educational, professional, technical and
administrative spheres.
To work hand in hand for more effective and greater
use of agriculture and industries.
To advance southeast Asian research
To preserve close and beneficial collaboration etuh
current international and regional institutions with
similar aims and purposes.
28
7
30
510
million
Member States
Combined
population of
EU Member
States
Percent of world’s
population
Percent of
global GDP
55
Percent of combined
worldwide Official
Development Assistance
1st
1st
economy
in the world
The European Union
The EU symbols
The motto:
United in diversity
The EU anthem: Ode to Joy
The euro The EU flag The EU day: 9
May
24 official languages
Български
Čeština
dansk
Deutsch
eesti keel
Ελληνικά
English
español
français
Gaeilge
hrvatski
Italiano
latviešu valoda
lietuvių kalba
magyar
Malti
Nederlands
polski
português
Română
slovenčina
slovenščina
suomi
svenska
THE EU CHARTER OF
FUNDAMENTAL RIGHTS
Binding for all the EU's activities
54 articles under 6 titles:
Dignity Equality
Freedom
Solidarity
Citizen's Rights
Justice
Common values
United in diversity by common values
The Union is founded on the values of respect for
human dignity, liberty, democracy, equality, the
rule of law and respect for human rights.
- Freedom of speech
- Freedom of the press
- Freedom of religion
- Freedom of association
- Gender equality
- Protection of minorities
- Against the death penalty
- Protection of the environment
The European Union in brief
Member States
• 28 sovereign and independent states that pooled some of their
sovereignty in order to gain strength and unity from their cooperation.
•The EU institutions take in charge the decision-making power the
Member States delegate.
•The EU is in between a fully federal system (ex. US) and an
intergovernmental cooperation system (ex. UN).
EU Achievements
•A single and unified market for goods and services around the EU.
•Freedom of movement for all EU citizens as part of the Schengen Area.
•The establishment of the euro zone - a single currency shared by 19
Member States of the EU.
•Largest supplier of development and humanitarian aid programmes in
the world.
Konrad
ADENAUER
Robert
SCHUMAN
Winston
CHURCHILL
Alcide
DE GASPERI
Jean
MONNET
The Founders
GOALS
•promote peace, its values and the well-being of its
citizens;
· offer freedom, security and justice without internal
borders;
· uphold sustainable development based on balanced
economic growth and price stability
· combat social exclusion and discrimination;
GOALS
· promote scientific and technological progress;
· enhance economic, social and territorial cohesion and
solidarity among member countries;
· respect its rich cultural and linguistic diversity;
· establish an economic and monetary union whose
currency is the euro.
WTO
The World Trade Organization (WTO) is the only global
international organization dealing with the rules of trade
between nations. At its heart are the WTO agreements,
negotiated and signed by the bulk of the world’s trading
nations and ratified in their parliaments. The goal is to
ensure that trade flows as smoothly, predictably and
freely as possible.
164 MEMBERS SINCE 29 JULY 2016
OTHER EXAMPLES OF IGO
1.NATO – National Atlantic Treaty Organization
2. ICC – International Criminal Court
3. OPEC – Organization of Petroleum Exporting Countries
THE INTENSIFICATION OF RELATIONS AMONG NATION –
STATES GAVE BIRTH TO THE IDEA OF…
A. Internationalism (theory and practice of interdependent
collaboration)
B. Globalism (attitude)
Internationalism is basically anchored on the opinion that
nationalism should be outrun because links that bind
people of different countries are more powerful that those
that disconnect them (Anora, 2014).
TO AVERT WARS…AGREEMENT AMONG NATIONS
MUST BE REACHED
Liberal internationalism (Immanuel Kant,1975)
Nations must give up their freedom and submit to a larger
system of laws that is embodied by common international
principles. A form of global government is needed to create
and enforce these laws.
Giuseppe Mazzini – nationalism and international
cooperation complemented each other
US Pres. Woodrow Wilson – nations were subject to the
universal laws of God
Socialist internationalism contradicts liberal internationalism.
It is based on the view that capitalism is a global system
and that the working class must unite as a global class to
forward the struggle against capitalism.
- goal of a world revolution to end class struggle globally
The Second International (1889-1916), the original
socialist international, was an organization of labor and
social parties established in Paris.
May 1 – International Worker’s Day
March 8 – International Women’s day
8 hr work day
GLOBALISM
An attitude that seeks to understand all the
interconnections of the modern world and to highlight
patters that underlie them.
It pursues to describe and explain a world that is
characterized by a network of connections that span
multicontinental distances.
OVERALL…
Global interstate system is a facet of contemporary
political globalization that seeks to form collaboration
among nation – states through the establishment of
intergovernmental organizations. It is rooted on the idea
of internationalism. Experts on interstate relations cannot
discount the numerous effects of neoliberalism on the rise
of new communication networks utilized by governments.
PRELIMINARY EXAMINATION Week 6
CONTEMPORARY GLOBAL
GOVERNANCE
Week 7
LEARNING OUTCOMES
1. Identify the roles and functions of the UN;
2. Describe the challenges of global governance in the
21st
century; and
3. Explain the relevance of the nation – state in the midst
of globalization.
Global governance makes world affairs
systematic, secured and formulaic
GLOBAL GOVERNANCE
The totality of norms, laws, policies, and bodies that
define, comprise, and facilitate transnational relations
between citizens, states, cultures, intergovernmental and
non – governmental organizations.
Rule – based
No central authority
There are systems for international relationships that bind
the states, people, and society together.
Ex. UN
6 ORGANS OF THE UNITED NATIONS
1. The General Assembly – the ‘town meeting’ of the world.
It is the central deliberative and the only organ where all
member – states have equal representation in discussion and
consideration, and policy making.
2. UN Security Council – maintains world peace (most powerful
branch)
3. Economic and Social Council - works with the UN’s economic,
cultural, health and educational activities.
It is the main organ for cooperation, policy review, policy
dialogue, and advice on social, economic and environmental
issues.
PARTS OF THE UNITED NATIONS
4. Trusteeship Council – administer international oversight for
11 trust territories and to make sure that adequate
procedures are taken for independence and self –
government.
5. ICJ – International Court of Justice- prime judicial organ
6. The Secretariat – administrative duties and can bring
any topic before the SC.
Execute the daily activities as assigned by the five organs.
UN SECURITY COUNCIL
Made up of 15 countries:
The “Permanent Five” countries
10 non-permanent countries (elected every two
years)
The strong-arm of the UN
Maintains international peace
How does it do this:
Recommends peaceful negotiations (peace talks)
Can use Economic Sanctions
Can use Military Sanctions
SANCTIONS
Sanctions are used to punish a country for violating
international law. They can be used to force a
country to follow a law.
In order for sanctions to be used by the UN
Security Council, ALL FIVE permanent members
must have a unanimous vote.
TYPES OF SANCTIONS
Diplomatic Sanctions – removal of all
political ties (like embassies)
Economic Sanctions – ban on all trade with
a country (except food)
Military Sanctions – using a military to force
compliance.
MILITARY SANCTIONS
UN Peacekeepers – a group of armed soldiers sent to
a hostile area to promote peace. They ARE NOT
COMBAT TROOPS.
These soldiers maintain peace.
They don’t go on combat missions.
They are not an ‘army’
UN Military Force – an army made up of soldiers from
more than one UN country that can serve as combat
troops.
They are not very effective and are not used very often.
MAJOR UN MISSIONS
East Timor (Asia) – the UN supervised the
independence of this country
Iraq (Middle East) – UN tried to cut all trade with Iraq
after it failed to comply with international law, but
some nations continued to trade with them.
Somalia (Africa) – UN humanitarian mission to get food
and supplies to people in need
Haiti (Caribbean) – UN helped strengthen government,
army, and hold elections
STRENGTHS OF THE UN
Provides a forum for almost all of the world’s
nations to discuss international issues
Humanitarian efforts
AIDS
Landmine removal
Food and supply organization
Peacekeeping forces
Will get involved with messes that no one else
will
WEAKNESSES OF THE UN
Sanctions are only effective if ALL countries follow
them (Iraq example)
Military force is rarely used and is usually ineffective
ALL permanent members of the security council have to
vote unanimously (one country can stop a sanction)
Inadequate funding by member nations
14 Countries Pay 85% of the subscriptions (membership fee)
Big gap between developing and industrialized
nations
THE GLOBAL DIVIDES: THE NORTH
AND SOUTH
Week 8
A World of
Regions
LEARNING OUTCOMES
1. Explain the term Global South
2. differentiate the Global South from the Third World.
GLOBAL SOUTH
- is a metaphor for interstate inequality and a product of
Western imagination ( (Claudio, 2014).
- the socio – economic and political divide primarily focused
on the southern hemisphere of the 1568 – designed
Mercatorian map.
Africa, Latin Americam Asia and Middle East
- Developing countries as opposed to rich, industrialized and
wealthy nations who adhere to fair labor practices, rights,
free trade, reduced tariffs and policies on sustainable
development.
Historically :
Countries that were colonized by the Spaniards in
the southern part of the American continent are
collectively called Latin America
Treaty of tordesillas (1494)
Newly discovered lands outside Europe were divided into
two:
a. WEST - Crown of Castile (now part of Spain)
b. EAST – Portuguese Empire
GLOBAL NORTH
- home of all the members of the Group of Eight (G8) –
Canada, France, Germany, Italy, Japan, United Kingdom, Russia and
US
- the abode of the four powerful permanent members of the United
Nations Security Council
- developed countries in Asia, Australia and New Zealand
- continues to be imagined and re – imagined by those who dominate it
even as movements from below reshape these constructions through
resistance
Global south is also found in developed countries
Ex. Economic poor families, underprivileged individuals…
Global North is also relatively experienced within the
geographical boundaries of the Global South
First World
Second World
Third World
WESTERN CAPITALISM
Sustains consumer choice,
private property and economic
freedom
Capitalist economies are the
First World
SOVIET UNION’S
SOCIALISM
Characterized by state of
control of the means of
production, distribution and
exchange
Socialist economies are the
Second World
THIRD WORLD
- Global south and Third World are conceptually the same.
- Third World is antecedent of Global South.
- the term Third World ceased to exist when the Cold War ended.-
- historically the world was once categorized based on the
economic ideology.
- former colonies of European countries (India – UK)
- countries that were neither capitalist nor socialist
- poor world
ASIAN REGIONALISM
LEARNING OUTCOMES
1. Differentiate between regionalization and globalization.
2. Identify the factors that lead to a greater integration of Asian
regions.
3. analyze how different Asian states confront the challenges of
globalization and regionalization through regionalism.
The contemporary world. GLOBALIZATION new.pptx

The contemporary world. GLOBALIZATION new.pptx

  • 1.
    THE CONTEMPORARY WORLDWITH PEACE EDUCATION Prof. Roxan B. Sta Ana
  • 2.
    INTRODUCTION TO THECOURSE Week 1 THE CONTEMPORARY WORLD Course Title: The Contemporary World No. of Units : 3 Units Number of Hours: 3 hours every week for 18 weeks or 54 hours in a semester
  • 3.
    COURSE DESCRIPTION: This courseintroduces students to the contemporary world by examining the multifaceted phenomenon of globalization. Using the various disciplines of the social sciences, it examines the economic, social, political, technological, and other transformations that have created an increasing awareness of the interconnectedness of peoples and places around the globe. To this end, the course provides an overview of the various debates in global governance, development, and sustainability. Beyond exposing the student to the world outside the Philippines, it seeks to inculcate a sense of global citizenship and global ethical responsibility. This course includes mandatory topics on population education in the context of population and demography.
  • 4.
    LEARNING OUTCOMES: A.Competencies 1. Distinguishdifferent interpretations of and approaches to globalization 2. Describe the emergence of global economic, political, social, and cultural systems 3. Analyze the various contemporary drivers of globalization 4. Understand the issues confronting the nation-state 5. Assess the effects of globalization on different social units and their responses
  • 5.
    LEARNING OUTCOMES: B. Skills 1.Analyze contemporary news events in the context of globalization 2. Analyze global issues in relation to Filipinos and the Philippines 3. Write a research paper with proper citations on a topic related to globalization C. Values 1. Articulate personal positions on various global issues 2. 2. Identify the ethical implications of global citizenship
  • 6.
    ASSIGNMENT Bring an articleabout globalization. Read module 1 of your book pages 2 to 7
  • 7.
    INTRODUCTION TO GLOBALIZATIONWeek 2 This module introduces the learners to the concepts and various definitions of globalization as a process, condition, and ideology. It also exposes the learners to the academic and non - biased definition of globalization based on political scientists, economists and culture and communication experts.
  • 8.
    INTENDED LEARNING OUTCOMES Atthe end of this section, you are expected to: 1.Examine the various conceptions of globalizations; 1.Distinguish the different definitions of globalization from experts; and 2.Adopt a working definition of globalization
  • 9.
    MOTIVATION Create as manywords as you can from the word “GLOBALIZATION” 3 letters and above Global ball gall tall ion nail not Bail nag bag tag zig log goon Boot lit nit bit lion
  • 10.
  • 11.
    GLOBAL ECONOMIC IMPERIALISM •Filipinos have become alien to Filipino products. • The internet mad the world smaller and commination faster • Consumption of Western ideas and adoption of behavior have become rapid and widespread
  • 12.
    GLOBAL ECONOMIC IMPERIALISM Economicimperialism -is a situation in which one nation assumes economic power or influence over the others • Age of Westernization and/or Americanization of contemporary Filipinos - Filipinos adopt ideas and behavior that are characteristic of West and of North America while relegating the ideas and behavior traditional in their culture.
  • 13.
  • 14.
    WHAT IS GLOBALIZATION? is a phenomenon.  It is something that is difficult to understand  It is a term whose meaning is obscure (Reich,1998).  It stands for quite a large public spread across the world as one of the defining terms of the 20th century social consciousness (Schottle, 1995).  It is often distinguished more by what it is not, rather than by what it is.
  • 15.
    WHAT IS GLOBALIZATION? Globalization is not the same as global, which points our aspirations for an end state of affairs wherein values are shared by or pertinent to all the world’s five billion people, their environment, their roles as citizens, consumers and producers with an interest in collective action designed to solve common problems. Nor it is universalism – values that embrace all humanity (Rosenau, 1996).
  • 16.
    WHAT IS GLOBALIZATION? It is described as something that is comprised of multiple sameness and interconnectedness that go beyond the nation – states. It is a process in which individuals and organizations in one part of the world are affected by the activities, affairs, and convictions on another part of the globe ( McGrew, 1990).
  • 17.
    WHAT IS GLOBALIZATION? It denotes a range of processes nesting under one rather unwieldy epithet. In part, its conceptual difficulty to handle or control arises from the fact that global flows occur in different physical and mental dimensions (Freeden, 2003).
  • 18.
    WHAT IS GLOBALIZATION? Five dimensions of global cultural flow (Appadurai, 1996) a. Enthoscapes b. Technoscapes c. Mediascapes d. Financescapes e. Ideoscapes  These landscapes are created due to movement of people, technologies, information through media, money and commodities and political ideas.
  • 19.
    WHAT IS GLOBALIZATION? It should be limited to a set of intricate social processes that modify prevailing social statuses based on the modern regime of self - dependent nation – states (Steger, 2005 & 2014a).  A multidimensional group of social procedures that build, accelerate, elaborate, and intensify worldwide interactions while at the same time, nurturing in people an increasing consciousness of deepening linkages between the local and far – off.
  • 20.
    GLOBALITY – Globalizationis a condition  Future social condition characterized by thick economic, political and cultural interconnections and global flows that make currently existing pollical borders and economic barriers relevant.  The condition that may are now experiencing is a result of the existence of multinational and transnational companies, international trading, economic blocks, the UN and EU and the like.
  • 21.
    GLOBALISM– Globalization isan ideology  Ideology - Dogmatic - Connotes political sophistication - It may also refer to the dominant modes of thought (Gerring, 1997). - It is a system of widely shared ideas, patterned beliefs, guiding norms and values, and ideals accepted as truth by some groups (Steger, 2014) - It is defined by core claims. Globalization has core claims that is why it is an ideology
  • 22.
    GLOBALISM– Globalization isan ideology  Five core claims of Globalism 1. Globalization is about the liberalization and global integration of markets. 2. Globalization is inevitable and irreversible 3. Nobody is in charge of globalization 4. Globalization benefits everyone 5. Globalization furthers the spread of democracy in the world.
  • 23.
    Globalization for POLITICAL SCIENTISTS It serves as a challenge for nation – states.  The strengthening of regional blocks like EU, ASEAN and UN is gaining a stable ground.  The emergence of global political norms is evident – for instance,  The norm that each country is entitled to exploitation of human natural resources for its own growth (Giensen & Pijl, 2006)
  • 24.
    Globalization for POLITICAL SCIENTISTS Emergence of global corporations  Businessmen and investors can already demand what they want from nation – state that would advance their interests  Ex.  Microsoft’s GDP is 62.48 million dollars(3rd biggest corp.)  Croatia’s GDP is 60.59 million dollars
  • 25.
    Globalization for ECONOMIST Increase in free trade, speed of trade, global economic organization and regional trade block.  The expansion of free trade allows government not to restrict importations nor impede the export of local products.  Importing and exporting are done in millisecond.  Establishment of economic organizations  IMF, WB, WTO, ILO, EFTA, AFTA, Mercursor, a customs union among Brazil, Argentina, Uruguay, Paraguay and Venezuela and Trans- Pacific Partnership
  • 26.
    Globalization for CULTUREAND COMMUNICATION  GLOBAL VILLAGE - The word has become a borderless world. - Communication technology makes the world shrink.  Media has connected the world in ways that created a global village (McLuhan, 1964).
  • 27.
    Unbiased working definition Globalization refers to the expansion and intensification of social relations and consciousness across world – time and world – space (Steger, 2013).
  • 28.
    Globalization for CULTUREAND COMMUNICATION  CULTURAL IMPERIALISM - It is the conviction that there is a “better” culture. - Some sees other cultures as superior to theirs, forming inferior or nondominant cultures.  Cultural globalization, the spread of popular culture flows from dominant to nondominant cultures. (developed to developing)
  • 29.
    Four Attributes ofGlobalization 1. Globalization has various forms of connectivity such that it can be economic, political or cultural. Ex. Minimum wage earners vs. above the minimum 2. Globalization allows for the expansion and stretching of social relations. Ex. NGO’s Philippine National Red Cross is an affiliate of International Committee of Red Cross (Switzerland) Sister – city relationships – Cebu and Haarlemmermeer City (Netherlands)
  • 30.
    Four Attributes ofGlobalization 3. Globalization intensifies and accelerates social exchanges and activities. -snail mail to email -cable TV and internet live streaming 4. Globalization occurs worldwide -global citizen -#prayformarawi -K-pop
  • 31.
    ACITVITY 1 Bring outyour assignments and answer page 9 and 11 of your book.
  • 32.
    CONTINUOUS MONITORING Answer page13 of your book. Read Globalization and Challenges: What are globalizations' contemporary issues? By Irani, F. & Noruzi M (2011).
  • 33.
    THE STRUCTURES OFGLOBALIZATION Week 3 TOPICS • The Global Economy • Market Integration • The Global Interstate System • Contemporary Global Governance
  • 34.
  • 35.
    LEARNING OUTCOMES 1. defineeconomic globalization 2. analyze the actors that facilitate economic globalization; and 3. articulate a stance on global economic integration.
  • 36.
    RECAP Globalization refers to theexpansion and intensification of social relations and consciousness across world – time and world – space (Steger, 2013). Globalization is a multidimensional phenomenon , creating economic, political, cultural, and even technological forms of connectivity
  • 37.
    This section focuseson the ECONOMIC DIMENSION
  • 38.
    ECONOMIC GLOBALIZATION -refers tothe expanding interdependence of world economies. - the growing scale of cross- border trade commodities and services, flow of international capital, and wide and rapid spread of technology ( Shangquan, 2000). Ex. Phils cross – border trading with China, US and Australia
  • 39.
    The flow ofinternational capital can be observed in FDI (Foreign Direct Investment) FDI is a type of investment in which a company establishes a business in another country for production of goods ands services and still takes part in the management of the business. Example Toyota Motor Philippines is a subsidiary of Toyota Motor Corporation in Japan
  • 40.
    A historical process,the result of human innovation and technological progress. “It refers to the increasing integration of economies around the world, particularly through the movement of goods, services and capital across borders (IMF, 2008) IMF – International Monetary Fund
  • 41.
    HISTORY OF THE INDUSVALLEY CIVILIZATION all the way to MESOPOTAMIA Early as 4000 BC Mesopotamia - TOKEN SYSTEM as COMMODITY MONEY
  • 42.
    HISTORY OF Economic movementin Asia, Africa and Europe through the Silk Road -It led to the discovery of the Philippines.
  • 43.
    4 INTERCONNECTED DIMENSIONSOF ECONOMY (BENCZES, 2014) (1) the globalization of trade of goods and services; (2) the globalization of financial and capital markets; (3) the globalization of technology and communication; and (4) the globalization of production.
  • 44.
    1. THE GLOBALIZATIONOF TRADE OF GOODS AND SERVICES is demonstrated in… A. Establishment of WORLD TRADE ORGANIZATION (WTO) eases trade among countries. 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. e.g. (May 2013) Ensures that trade flows as smoothly, predictably and freely as possible(WTO, 2012). EXAMPLE: Japan and European Union bought a case to WTO regarding unfair renewable energy serves offered in Ontario.
  • 45.
    1. THE GLOBALIZATIONOF TRADE OF GOODS AND SERVICES is demonstrated in… B. Emergence of China as a major supplier and exporter of manufactured goods C. Increasing number of business process outsourcing (BPO) companies in the Phils. Cheap labor cost, English proficiency and customer service skills
  • 46.
    2. THE GLOBALIZATIONOF FINANCIAL AND CAPITAL MARKETS is evident in… A. Liberalization of financial and capital markets Cross listing of shares on one or more foreign stock exchange, cross hedging and diversification of portfolio and round the clock trading world wide.
  • 47.
    3. THE GLOBALIZATIONOF TECHNOLOGY AND COMMUNICATION emphasizes that…. Various transactions and interactivities that transpire instantly due to the internet and communication technology 4. THE GLOBALIZATION OF PRODUCTION is best illustrated… -The existence of Multinational Corporations (MNCs) and Transnational Corporations (TNCs) -Example: Coca – Cola Company in Atlanta, Georgia, USA
  • 48.
    THE MOST FITTING DEFINITIONOF The process of making the world economy an “organic system” by extending transnational economic processes and relations to more and more countries and by deepening the economic interdependencies among them. ( Szentes, 2003).
  • 49.
    EXAMPLE Price movementsof imported fuels in the Philippines
  • 50.
    DIFFERENT AGENTS THATBRING ABOUT THE INTERDEPENDENCIES OF GLOBAL ECONOMIES 1. Nation – state ( a state ruling over a nation) The role of nation-state as manager of the national economy is redefined by globalization (Boyer and Drache, 1996). Nation –states still acts as a buffer to negative effects of globalization. Midwives of globalization (Brodie, 1996) - Trade war between US and China
  • 51.
    DIFFERENT AGENTS THATBRING ABOUT THE INTERDEPENDENCIES OF GLOBAL ECONOMIES 2. Global corporations Nation – state has ceased to exist as the primary economic organization unit in the global market. Filipino consumers prefer H&M, Uniqlo, Fedex etc. – transforming national economy to global one Ex. San Miguel Corporation and Jollibee Foods Corporation - (TNC’s are the main driving force of economic globalization accounting for 2/3 of the world exports
  • 52.
    DIFFERENT AGENTS THATBRING ABOUT THE INTERDEPENDENCIES OF GLOBAL ECONOMIES 3. International Monetary System - refers to internationally agreed rules, conventions and institutions for facilitating international trade, investments and flow of capital among nation – states.
  • 53.
    1. Gold Standard– fixed exchange rate regime with gold as the only international reserve and participating countries determine the gold content of national currencies 2. Bretton Woods System – US dollar was only the convertible currency. Thus it was agreed by 44 countries to adopt the gold exchange standard. 3 Global IMS
  • 54.
    2.1 INTERNATIONAL BANKFOR RECONSTRUCTION AND DEVELOPMENT (IBRD) -now known as WORLD BANK WB is responsible for post war reconstructions Increases in economic growth and decreases poverty in developing countries. e.g. Increases in education since 1962 like Bangladesh, Chad and Afghanistan
  • 55.
    2.2 INTERNATIONAL MONETARYFUND (IMF) -promote international financial corporation and strengthen international trade Provides short term loans to countries when an emergency occurs. e.g. Yemen receive 93 Million USD (2012) during struggle to terrorism.
  • 56.
    3. European MonetarySystem (EMS) -established after the collapse of Bretton Woods -successful in the stabilization process of exchange rates -founded EMU (European Economic and Monetary Union) - national currencies were abandoned and member states delegated monetary policy onto a supranational level administered by the European Central Bank (European Commission, 2008) -develop international trade and trade policy
  • 57.
  • 58.
    UNITES? Foster universal economicgrowth and development (Benczes, 2014) Allows worldwide distribution of income Ex. Australia Reduces poverty (World Bank, 2002) Ex. Nurses abroad Creates mutual dependence between developing and developed countries (Arrighi, 2005) Ex. Labor or Services vs. Raw materials Sources of goods and services are exploited Ex. Compensate labor with cheap cost Destroy nature and don’t rehabilitate it Economic globalization does not benefit all nations(World Bank, 2002) Ex. Uneven experience among nations. Workers in TNCs are paid less compared to their counterpart in the companies’ home countries. (Cheap labor in the Philippines) Capitalism created the different levels of wages in the economic arena of world systems (Wallerstien, 2005) Ex. Inequality of skills, experience and DIVIDES?
  • 59.
    CONCLUSION Economic Globalization affectsall nations and citizens through the increasing integration of economies around the borderless world.
  • 60.
  • 61.
    LEARNING OUTCOMES 1. explainthe role of international financial institutions in the creation of a global economy; 2. narrate a short history of global market integration in the 20th century; and 3. infer the attributes of global corporations
  • 62.
    MARKET INTEGRATION is thefusing of many markets into one. Example: In one market a commodity has a single price such as the price of carrots would be the same in east Paris and west Paris if these areas were part of the same market. If the price of carrots in west Paris was higher, sellers of carrots would move from the east to the west and prices would equalize. The price of carrots in Paris and in Lisbon might be different, though, and high transport costs and other kinds of expenses might mean that it would be uneconomical for Portuguese sellers to move their stocks to France if prices were higher there.  In distinct markets the price of the same good can be different for long periods of time.
  • 63.
  • 64.
    WHY DO WEHAVE THE UN? After World War I, the League of Nations was created to prevent another world war. During World War II, the League of Nations was eliminated because it failed to prevent another war. In 1945, with the end of WWII nearing, the United Nations was created to replace the failed League of Nations.
  • 65.
    HISTORY OF THEUNITED NATIONS In 1945, San Francisco hosted the United Nations Conference on International Organizations. There were 50 countries represented at the United Nations Conference including: United States, France, United Kingdom, Soviet Union (now Russia), and China. These five countries are known as the “Permanent Five” members.
  • 66.
    WHAT DOES THEUNITED NATIONS DO? The UN was created to maintain international peace and security. It also works to maintain friendly relationships between countries. Lastly, it works to promote economic development of member nations.
  • 67.
    WHO AND WHERE? Almostall countries in the world are members of the UN. There are currently 191 countries in the UN. The headquarters is in New York City. The International Court of Justice (ICJ) is located in The Hague in the Netherlands.
  • 68.
  • 69.
    INTERNATIONAL COURT OFJUSTICE THE HAGUE, NETHERLANDS
  • 70.
  • 71.
    THE UN SECURITYCOUNCIL INSIDE WORLD HEADQUARTERS
  • 72.
    SECURITY COUNCIL SPEAKINGON A SOLUTION FOR HAITI’S VIOLENCE
  • 73.
    UN PEACEKEEPERS THEY ALWAYSWEAR BLUE BERETS OR BLUE HELMETS TO IDENTIFY THEMSELVES.
  • 74.
    WORLD BANK (WB)AND INTERNATIONAL MONETARY FUND (IMF) First government – sponsored international financial institutions Earlier in 1944 Monetary and Financial Conference in Breton Woods, New Hampshire (US)
  • 75.
    2 TYPES OFINTERNATIONAL FINANCIAL INSTITUITONS: 1. intergovernmental 2. private
  • 76.
    WB intergovernmental To end extremepoverty and promote shared prosperity in a sustainable way (worldbank.org)
  • 77.
    5 ORGANIZATIONS UNDER -Facilitate the granting of loans and financial assistance to other countries 1. International Bank for Reconstruction and Development (IBRD), 2. the International Development Association (IDA), 3. the International Finance Corporation (IFC), 4. the Multilateral Investment Guarantee Agency (MIGA) 5. the International Centre for Settlement of Investment Disputes (ICSID).
  • 78.
    IMF intergovernmental Works to fostermonetary cooperation, secure financial stability, facilitate international trade and more (imf.org/en/About) Grants financial assistance and loans to developing countries
  • 79.
  • 80.
    Intergovernmental Spur progress andeconomic growth in order to address and reduce poverty Foster sustainable development in their respective member countries
  • 81.
    PRIVATE INTERNATIONAL FINANCIALINSTITUTIONS 1. Citigroup  American multinational investment banking and financial corporation 4th largest bank in the US
  • 82.
    2. Merill Lynch Wealthmanagement division of the Bank of America
  • 83.
    Both provide investmentsaround the world (foreign direct investments, stocks or financial loans) Both gov’t and private financial institutions help facilitate the functionality of a global economy by lending money to their member states and global corporations. Example:
  • 84.
    WB Helps in projectlending, establishes structural reforms, provides support and technical assistance and helps design modern and durable social safety nets foe the benefit of both developed and developing nations (Stiglitz,1998) Provides international capital like foreign direct investments, short term and long-term investments
  • 85.
    IMF Helps establish institutionalbodies to address and reduce poverty like the Africa Regional Technical Assistance Centers (AFRITACs) in 2001, and assists in creating the conditons for mobilization of private, domestic and foreign capital and job generation growth (Kohler, 2002).
  • 86.
  • 87.
    GLOBAL MARKET INTEGRATION meansthat 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 the costs of trading across borders fall, there is more potential for firms to take advantage of price differences, for Portuguese carrot sellers to enter the French market, for example. Trading costs fall when new forms of transport are invented, or when existing ones become faster and cheaper. Also, some costs are man- made. For instance, states erect barriers to trade, such as tariffs and quotas on imports. When these are reduced, the cost international trading falls.
  • 88.
    Integration of theglobal market started when big American corporations began to emerge after the WWII followed by Japan and Europe International Telephone and Telegraph bought Avis-Rent-a-Car Continental Banking Sheraton Hotels Hartford Fire Insurance Toyota, Nissan, Isuzu –Japanese global automobile corp. Renault automobiles – French multinational automobile manufacturer – (help in military postwar operations0
  • 89.
    INTERNATIONAL COMPANIES Are importersand exporters with no investments outside their home countries Example: Apple, a company that produces consumer electronics such as computers, tablets, mobile phones, etc. Apple sells its products around the world, but the headquarters and all product development are located within the U.S.
  • 90.
    MULTINATIONAL COMPANIES (MNC) Haveinvestments in other countries, but do not have a coordinated product offering in each country. They are more focused on adapting their products and services to each individual local market. have fewer countries of interest than a global company might, mainly because of the way they manage their local offerings. localizing the products and the marketing to fit the culture
  • 91.
    EXAMPLE OF MULTINATIONALCOMPANIES (MNC) Starbucks, where most of the menu is the same, but offerings change based on local tastes. Starbucks also customizes its locations to the local culture, providing different seating and setup to make local customers more comfortable. Honda, whose headquarters is in Japan, but has established branches all over the world. The product lineup varies by country – for example, Honda trucks were developed for the U.S. market.
  • 92.
    GLOBAL COMPANIES Have investmentsand are present in many countries. They typically market their products and services to each individual local market is one where the central headquarters of the business makes the decisions for driving the business, and the same product(s) are offered in every country, regardless of local culture and tastes. the branches can personalize the marketing of their products to help drive sales, but the product catalog remains the same. This allows the company to manage its foreign sales and to keep one company culture and one set of goods for efficiency purposes, but gives up the opportunity to tailor offerings to these local markets.
  • 93.
    EXAMPLES OF GLOBALCOMPANIES INCLUDE: McDonald's restaurants are located across the globe, and serve the same menu in all of their locations. There is, of course, some menu customization depending on the location, which leans more toward the multinational category, but at a high level, McDonald's behaves like a global business. Hyatt and Hilton hotels, where the draw to the customer is that their rooms will be the same no matter what nation the hotel is in.
  • 94.
    TRANSNATIONAL COMPANIES (TNC) Aremore complex organizations that have investments in foreign operations, they have a central corporate facility but give decision- making, research and development, and marketing powers to each individual in the foreign market This type of worldwide operation offers the most flexibility and versatility, but this comes at the cost of streamlined management and product catalog.
  • 95.
    EXAMPLES OF TRANSNATIONALCOMPANIES INCLUDE: Nestle, which has a headquarters, but international branches make their own decisions regarding operations and product offering. General Electric, which has branches across the globe, many of which make their own decisions on policy and business direction.
  • 96.
    American corporations operatinginternationally were at great advantage after the war – no competition Return of Japanese and European Corporations to the global market started the contemporary market integration 1974 – MNCs are the major global economic actors The TRIAD – major economies of the world 1. US 2. EU 3. Japan
  • 97.
    3 STRUCTURAL PERIODSOF GLOBAL CORPORATION (AFTER THE WAR) 1. investment-based globalization (1950–70); 20000 new corporate alliances were formed 2. trade-based globalization (1970–95); Controlled by producer –driven commodities 3. digital globalization (1995 onwards) Integration of technology to reduce time and distance Retailing of goods and services via internet
  • 98.
    FOREIGN DIRECT INVESTMENTS Thedevelopment od global corporations can be examined from the sources and the levels pf foreign direct investment FDI
  • 99.
    FDI Foreign direct investmentis an investment in a business by an investor from another country for which the foreign investor has control over the company purchased.  It is also defined as cross border investment made by a resident in one economy in an enterprise in another company.  FDI is direct investment into production in a country by a company located in another country, either by buying a company in the target country or by expanding operations of an existing business in that country.
  • 100.
    BY TARGET HORIZONTAL FDI:- Where the company carries out the same activities abroad as at home (for example Toyota assembling cars in both Japan and UK) VERTICAL FDI:- When different storage of activities are added abroad . Where the FDI takes the firm nearer to the market is called Forward vertical FDI. (for example toyota acquiring a car distributorship in america) Where international integration moves back towards raw materials is called Backward vertical FDI.(for example toyota acquiring a tyre manufacturers)
  • 101.
    The ascent ofglobal corporation is a reflection of globalized market integration Attribute of global corporations 1. An agent of desired economic development 2. An economic prominence 3. A very powerful entity that can create a crisis Ex. Nestle hit their target economic development by making their consumer products available in many parts of the globe.
  • 102.
    THE GLOBAL INTERSTATESYSTEM Week 5
  • 103.
    LEARNING OUTCOMES 1. Explainthe effects of globalization on nation- states; 2. categorize the institutions that govern international relations; and 3. differentiate internationalism from globalism.
  • 104.
    STATE - A compulsorypolitical organization with a centralized government that maintains the legitimate use of force within a certain territory (Weber, 1997). NATION - Emphasizes the organic ties that hold groups of people together and inspire a sense of loyalty and belonging – i.e., ethnicity, labguage, religion and others (Schattle, 2014)
  • 105.
    NATION- STATE A politicalcommunity that emanates from civic society to legitimately execute peace Civic society is the basis of people’s oneness
  • 106.
    IS IT TRUE? Globalizationhas superseded the individual function and jurisdiction of nation – states (Appadurai and Ohmae) NO Nation – states play vital roles in the way globalization establishes a borderless world.
  • 107.
    1. Nation –states can manipulate competitive advantages with international and political issues, transnational civic society organizations, and multinational companies. 2. They are accountable for a host of international norms and standards, find themselves in subordinate position to protect their economy and face new kinds of pressures of supranational integration and focus on local fragmentation (Schattle, 2014).
  • 108.
    194 member statesof the UN prove that globalization has affected the dynamics of nation- states in the context of their agency as legitimate holders of force in their jurisdiction.
  • 109.
    HOW? 1. Globalization isseen to impose a forced choice upon – nation states. - conform or left behind. Nation – states are forced to realign their policies to be congruent with the principles of free trade because of the pressures from global corporations. Ex. ASEAN established the ASEAN Free Trade Area (AFTA)
  • 110.
    2. The establishmentof economic and political integrations Ex. European Union(EU) and the North America Free Trade Agreement (NAFTA) EU (supranational body ) – 28 members - 17 states – single currency and monetary system etc. The statehood of members in not dissolved, what has changed is how the nation – states function in terms of economy and politics
  • 111.
    3. The establishmentof international laws and principles. Ex. UN Security Council – creation of peacekeeping operations and international sanctions and the authorization of military action. UN’s International Criminal Court (ICC) – prosecutes individuals accused of crimes against humanity such as genocide Universal Declaration of Human Rights – individual rights UN Convention of the Law of the Sea – use of world’s oceans
  • 112.
    4. The riseof transnational activism (TNA) - activists groups of nation – states connect with their counterparts in other states Ex. Advocacy based organization in the Philippines may connect itself with and get support from the human rights group in Europe to pressure the Phil Gov to uphold human right
  • 113.
    5. Creation ofnew communications network - through digital media - network society - online education Social media – air sentiments and discuss issues Government websites – avenue for concerns Own funded TV networks – disseminate info
  • 114.
    To facilitate connectionsamong nation- states, Intergovernmental Organizations (IGOs) were established Aim: To foster strong economic, political, cultural, educational and technical, intergovernmental relationships.
  • 115.
    ASEAN: ASSOCIATION OFSOUTH EAST ASIAN NATIONS
  • 117.
    10 MEMBER STATES •Brunei Darussalam (7 January 1984) • Cambodia (30 April 1999) • Indonesia (8 August 1967) • Lao PDR (23 July 1997) • Malaysia (8 August 1967) • Myanmar (23 July 1997) • Philippines(8 August 1967) • Singapore (8 August 1967) • Thailand (8 August 1967) • Vietnam (28 July 1995)
  • 118.
    ASEAN EMBLEM • TheASEAN Emblem represent a stable, peaceful, united, and dynamic ASEAN. • The Colour of The ASEAN Emblem – blue, white, red, and yellow– represent the main colours of the state crests of all the ASEAN Member States. • Blue - Peace and Stability • White - Purity • Red - Brave and Dynamism • Yellow - Prosperity
  • 119.
    OVERVIEW  8 August1967 in Bangkok, Thailand, with the signing of the ASEAN Declaration (Bangkok Declaration)  Founding Fathers of ASEAN: 5 Foreign Ministers - Adam Malik (Indonesia), Narciso R. Ramos ( Philippines), Tun Abdul Razak (Malaysia), S. Rajaratnam (Singapore) and Thanat Khoman (Thailand)
  • 120.
    THE CONTEXT: 1960S Conflict: Indonesia-Malaysia(Konfrontasi 1962-66), Philippines-Malaysia (over Sabah) Singapore secession from Malaysia Mindanao, Southern Thailand Thailand was brokering reconciliation among Indonesia, the Philippines and Malaysia Poor Communism Cold War, arms race, proxy wars Indochina War: Vietnam, Laos Cambodia Burma: 1962 Club of dictators: Marcos, Suharto, Thanom, Lee Kwan Yew, Abdul Rahman
  • 121.
    ASEAN Aims andPurposes (Bangkok Declaration 1967) To accelerate the economic growth, social progress and cultural development in the region through joint endeavours. To promote regional peace and stability through abiding respect for justice and the rule of law. To advance peace and sustainability To promote active and beneficial cooperation and mutual assistance on matters of common interest in the economic, technical, cultural, administrative and scientific fields
  • 122.
    ASEAN Aims andPurposes (Bangkok Declaration 1967) To provide assistance to each other in the framework of training and research installations in the educational, professional, technical and administrative spheres. To work hand in hand for more effective and greater use of agriculture and industries. To advance southeast Asian research To preserve close and beneficial collaboration etuh current international and regional institutions with similar aims and purposes.
  • 124.
    28 7 30 510 million Member States Combined population of EUMember States Percent of world’s population Percent of global GDP 55 Percent of combined worldwide Official Development Assistance 1st 1st economy in the world
  • 125.
  • 126.
    The EU symbols Themotto: United in diversity The EU anthem: Ode to Joy The euro The EU flag The EU day: 9 May
  • 127.
    24 official languages Български Čeština dansk Deutsch eestikeel Ελληνικά English español français Gaeilge hrvatski Italiano latviešu valoda lietuvių kalba magyar Malti Nederlands polski português Română slovenčina slovenščina suomi svenska
  • 128.
    THE EU CHARTEROF FUNDAMENTAL RIGHTS Binding for all the EU's activities 54 articles under 6 titles: Dignity Equality Freedom Solidarity Citizen's Rights Justice
  • 129.
    Common values United indiversity by common values The Union is founded on the values of respect for human dignity, liberty, democracy, equality, the rule of law and respect for human rights. - Freedom of speech - Freedom of the press - Freedom of religion - Freedom of association - Gender equality - Protection of minorities - Against the death penalty - Protection of the environment
  • 130.
    The European Unionin brief Member States • 28 sovereign and independent states that pooled some of their sovereignty in order to gain strength and unity from their cooperation. •The EU institutions take in charge the decision-making power the Member States delegate. •The EU is in between a fully federal system (ex. US) and an intergovernmental cooperation system (ex. UN). EU Achievements •A single and unified market for goods and services around the EU. •Freedom of movement for all EU citizens as part of the Schengen Area. •The establishment of the euro zone - a single currency shared by 19 Member States of the EU. •Largest supplier of development and humanitarian aid programmes in the world.
  • 131.
  • 132.
    GOALS •promote peace, itsvalues and the well-being of its citizens; · offer freedom, security and justice without internal borders; · uphold sustainable development based on balanced economic growth and price stability · combat social exclusion and discrimination;
  • 133.
    GOALS · promote scientificand technological progress; · enhance economic, social and territorial cohesion and solidarity among member countries; · respect its rich cultural and linguistic diversity; · establish an economic and monetary union whose currency is the euro.
  • 134.
    WTO The World TradeOrganization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to ensure that trade flows as smoothly, predictably and freely as possible.
  • 135.
    164 MEMBERS SINCE29 JULY 2016
  • 136.
    OTHER EXAMPLES OFIGO 1.NATO – National Atlantic Treaty Organization 2. ICC – International Criminal Court 3. OPEC – Organization of Petroleum Exporting Countries
  • 137.
    THE INTENSIFICATION OFRELATIONS AMONG NATION – STATES GAVE BIRTH TO THE IDEA OF… A. Internationalism (theory and practice of interdependent collaboration) B. Globalism (attitude)
  • 138.
    Internationalism is basicallyanchored on the opinion that nationalism should be outrun because links that bind people of different countries are more powerful that those that disconnect them (Anora, 2014).
  • 139.
    TO AVERT WARS…AGREEMENTAMONG NATIONS MUST BE REACHED Liberal internationalism (Immanuel Kant,1975) Nations must give up their freedom and submit to a larger system of laws that is embodied by common international principles. A form of global government is needed to create and enforce these laws. Giuseppe Mazzini – nationalism and international cooperation complemented each other US Pres. Woodrow Wilson – nations were subject to the universal laws of God
  • 140.
    Socialist internationalism contradictsliberal internationalism. It is based on the view that capitalism is a global system and that the working class must unite as a global class to forward the struggle against capitalism. - goal of a world revolution to end class struggle globally The Second International (1889-1916), the original socialist international, was an organization of labor and social parties established in Paris. May 1 – International Worker’s Day March 8 – International Women’s day 8 hr work day
  • 141.
    GLOBALISM An attitude thatseeks to understand all the interconnections of the modern world and to highlight patters that underlie them. It pursues to describe and explain a world that is characterized by a network of connections that span multicontinental distances.
  • 142.
    OVERALL… Global interstate systemis a facet of contemporary political globalization that seeks to form collaboration among nation – states through the establishment of intergovernmental organizations. It is rooted on the idea of internationalism. Experts on interstate relations cannot discount the numerous effects of neoliberalism on the rise of new communication networks utilized by governments.
  • 143.
  • 144.
  • 145.
    LEARNING OUTCOMES 1. Identifythe roles and functions of the UN; 2. Describe the challenges of global governance in the 21st century; and 3. Explain the relevance of the nation – state in the midst of globalization.
  • 146.
    Global governance makesworld affairs systematic, secured and formulaic
  • 147.
    GLOBAL GOVERNANCE The totalityof norms, laws, policies, and bodies that define, comprise, and facilitate transnational relations between citizens, states, cultures, intergovernmental and non – governmental organizations. Rule – based No central authority
  • 148.
    There are systemsfor international relationships that bind the states, people, and society together. Ex. UN
  • 149.
    6 ORGANS OFTHE UNITED NATIONS 1. The General Assembly – the ‘town meeting’ of the world. It is the central deliberative and the only organ where all member – states have equal representation in discussion and consideration, and policy making. 2. UN Security Council – maintains world peace (most powerful branch) 3. Economic and Social Council - works with the UN’s economic, cultural, health and educational activities. It is the main organ for cooperation, policy review, policy dialogue, and advice on social, economic and environmental issues.
  • 150.
    PARTS OF THEUNITED NATIONS 4. Trusteeship Council – administer international oversight for 11 trust territories and to make sure that adequate procedures are taken for independence and self – government. 5. ICJ – International Court of Justice- prime judicial organ 6. The Secretariat – administrative duties and can bring any topic before the SC. Execute the daily activities as assigned by the five organs.
  • 151.
    UN SECURITY COUNCIL Madeup of 15 countries: The “Permanent Five” countries 10 non-permanent countries (elected every two years) The strong-arm of the UN Maintains international peace How does it do this: Recommends peaceful negotiations (peace talks) Can use Economic Sanctions Can use Military Sanctions
  • 152.
    SANCTIONS Sanctions are usedto punish a country for violating international law. They can be used to force a country to follow a law. In order for sanctions to be used by the UN Security Council, ALL FIVE permanent members must have a unanimous vote.
  • 153.
    TYPES OF SANCTIONS DiplomaticSanctions – removal of all political ties (like embassies) Economic Sanctions – ban on all trade with a country (except food) Military Sanctions – using a military to force compliance.
  • 154.
    MILITARY SANCTIONS UN Peacekeepers– a group of armed soldiers sent to a hostile area to promote peace. They ARE NOT COMBAT TROOPS. These soldiers maintain peace. They don’t go on combat missions. They are not an ‘army’ UN Military Force – an army made up of soldiers from more than one UN country that can serve as combat troops. They are not very effective and are not used very often.
  • 155.
    MAJOR UN MISSIONS EastTimor (Asia) – the UN supervised the independence of this country Iraq (Middle East) – UN tried to cut all trade with Iraq after it failed to comply with international law, but some nations continued to trade with them. Somalia (Africa) – UN humanitarian mission to get food and supplies to people in need Haiti (Caribbean) – UN helped strengthen government, army, and hold elections
  • 156.
    STRENGTHS OF THEUN Provides a forum for almost all of the world’s nations to discuss international issues Humanitarian efforts AIDS Landmine removal Food and supply organization Peacekeeping forces Will get involved with messes that no one else will
  • 157.
    WEAKNESSES OF THEUN Sanctions are only effective if ALL countries follow them (Iraq example) Military force is rarely used and is usually ineffective ALL permanent members of the security council have to vote unanimously (one country can stop a sanction) Inadequate funding by member nations 14 Countries Pay 85% of the subscriptions (membership fee) Big gap between developing and industrialized nations
  • 158.
    THE GLOBAL DIVIDES:THE NORTH AND SOUTH Week 8 A World of Regions
  • 159.
    LEARNING OUTCOMES 1. Explainthe term Global South 2. differentiate the Global South from the Third World.
  • 160.
    GLOBAL SOUTH - isa metaphor for interstate inequality and a product of Western imagination ( (Claudio, 2014). - the socio – economic and political divide primarily focused on the southern hemisphere of the 1568 – designed Mercatorian map. Africa, Latin Americam Asia and Middle East - Developing countries as opposed to rich, industrialized and wealthy nations who adhere to fair labor practices, rights, free trade, reduced tariffs and policies on sustainable development.
  • 161.
    Historically : Countries thatwere colonized by the Spaniards in the southern part of the American continent are collectively called Latin America Treaty of tordesillas (1494) Newly discovered lands outside Europe were divided into two: a. WEST - Crown of Castile (now part of Spain) b. EAST – Portuguese Empire
  • 162.
    GLOBAL NORTH - homeof all the members of the Group of Eight (G8) – Canada, France, Germany, Italy, Japan, United Kingdom, Russia and US - the abode of the four powerful permanent members of the United Nations Security Council - developed countries in Asia, Australia and New Zealand - continues to be imagined and re – imagined by those who dominate it even as movements from below reshape these constructions through resistance
  • 163.
    Global south isalso found in developed countries Ex. Economic poor families, underprivileged individuals… Global North is also relatively experienced within the geographical boundaries of the Global South
  • 164.
  • 165.
    WESTERN CAPITALISM Sustains consumerchoice, private property and economic freedom Capitalist economies are the First World SOVIET UNION’S SOCIALISM Characterized by state of control of the means of production, distribution and exchange Socialist economies are the Second World
  • 166.
    THIRD WORLD - Globalsouth and Third World are conceptually the same. - Third World is antecedent of Global South. - the term Third World ceased to exist when the Cold War ended.- - historically the world was once categorized based on the economic ideology. - former colonies of European countries (India – UK) - countries that were neither capitalist nor socialist - poor world
  • 167.
  • 168.
    LEARNING OUTCOMES 1. Differentiatebetween regionalization and globalization. 2. Identify the factors that lead to a greater integration of Asian regions. 3. analyze how different Asian states confront the challenges of globalization and regionalization through regionalism.

Editor's Notes

  • #40 This flow of international capital can also be observed in foreign portfolio investments, trade flows, external assistance and external commercial borrowing, and private loan flows.
  • #43 The Silk Road was a network of trade routes which connected the East and West, and was central to the economic, cultural, political, and religious interactions between these regions from the 2nd century BCE to the 18th century.[1][2][3] The Silk Road primarily refers to the land routes connecting East Asia and Southeast Asia with South Asia, Persia, the Arabian Peninsula, East Africa and Southern Europe. The Silk Road derives its name from the lucrative trade in silk carried out along its length, beginning in the Han dynasty in China (207 BCE–220 CE). The Han dynasty expanded the Central Asian section of the trade routes around 114 BCE through the missions and explorations of the Chinese imperial envoy Zhang Qian, as well as several military conquests.[4] The Chinese took great interest in the security of their trade products, and extended the Great Wall of China to ensure the protection of the trade route.[5]
  • #47 What Is a Cross Hedge? The term "cross hedge" refers to the practice of hedging risk using two distinct assets with positively correlated price movements. The investor takes opposing positions in each investment in an attempt to reduce the risk of holding just one of the securities. Because cross hedging relies on assets that are not perfectly correlated, the investor assumes the risk that the assets will move in opposite directions, causing the position to become unhedged. Understanding Cross Hedges Cross hedging is made possible by derivative products, such as commodity futures. By using commodity futures markets, traders can buy and sell contracts for delivery of commodities at a specified future time. This market can be invaluable for companies that hold large amounts of commodities in inventory, or who rely on commodities for their operations. For these companies, one of the major risks facing their business is that the price of these commodities fluctuate rapidly in a way that erodes their profit margin. To mitigate this risk, companies adopt hedging strategies whereby they can lock in a price for their commodities that allows them to make a profit. For example, jet fuel is a major expense for airline companies. If the price of jet fuel rises sufficiently quickly, an airline company may be unable to operate profitably given the higher prices. To mitigate this risk, airline companies can buy futures contracts for jet fuel, effectively paying a price today for their future fuel needs. This allows them to ensure that their margins will be maintained, no matter what happens to fuel prices in the future. There are some cases, however, where the ideal type or quantity of futures contracts are not available. In that situation, companies are forced to implement a cross hedge whereby they use the closest alternative asset available. In keeping with our previous example, our airline might be forced to cross hedge its exposure to jet fuel by buying crude oil futures instead. Even though crude oil and jet fuel are two different commodities, they are highly correlated and will therefore likely function adequately as a hedge. However, the risk remains that if the price of these commodities diverges significantly during the term of the contract, the airline company’s fuel exposure will be left unhedged.
  • #49 Not controlled by nation – states but seen as a global context
  • #50 Excise tax on fuels Us –peos exhacge rate Global market and international economy’s interest rates
  • #51 Nation – states are still relevant despite assuming global perspectives and act as mediators between the effects of globalization and national economy Government policies and regualtions either permit or deny the smooth connection among world economies.
  • #52 SMC and JFC have expanded outside their home country as they are present in Europe, US and the rest of Asia.
  • #53 SMC and JFC have expanded outside their home country as they are present in Europe, US and the rest of Asia.
  • #114 All 3 are vertical effects. We have horizontal effect which can be seen in transgovernmental networks (Slaughter, 2004) Establish linkages that would benefit all parties
  • #127 Europe: Over 500 million people 28 countries 24 official languages
  • #128 Motto: ‘United in diversity’ – the EU countries are committed to peace and prosperity while respecting Europe's different cultures and languages Anthem: ‘Ode to Joy’ by Ludwig van Beethoven. The poem "Ode to Joy" expresses Schiller's idealistic vision of the human race becoming brothers - a vision Beethoven shared. In 1972, the Council of Europe adopted Beethoven's "Ode to Joy" theme as its anthem. In 1985, it was adopted by EU leaders as the official anthem of the European Union. There are no words to the anthem; it consists of music only. In the universal language of music, this anthem expresses the European ideals of freedom, peace and solidarity. Euro: The euro is the most tangible proof of European integration – the common currency in 19 out of 28 EU countries and used by some 338.6 million people every day. The euro was launched on 1 January 1999. Banknotes and coins were introduced on 1 January 2002. The benefits of the common currency are immediately obvious to anyone travelling abroad or shopping online on websites based in another EU country. Flag: The European flag symbolises both the European Union and, more broadly, the identity and unity of Europe. It features a circle of 12 gold stars on a blue background. They stand for the ideals of unity, solidarity and harmony among the peoples of Europe. The number of stars has nothing to do with the number of member countries, though the circle is a symbol of unity. 9 May: 9 May celebrates peace and unity in Europe. The date marks the anniversary of the historical 'Schuman declaration'. At a speech in Paris in 1950, Robert Schuman, the then French foreign minister, set out his idea for a new form of political cooperation in Europe, which would make war between Europe’s nations unthinkable.
  • #132 The European Union is a unique institution where Member States voluntarily cede national sovereignty in many areas to carry out common policies and governance in order to gain strength and the benefits from cooperation. Single market: The Single Market refers to the EU as one territory without any internal borders or other regulatory obstacles to the free movement of goods and services. A functioning Single Market stimulates competition and trade, improves efficiency, raises quality, and helps cut prices. The European Single Market is one of the EU’s greatest achievements. It has fuelled economic growth and made the everyday life of European businesses and consumers easier. (SM of goods, SM of services, Digital SM, etc.) Euro: The euro is the most tangible proof of European integration – the common currency in 19 out of 28 EU countries and used by some 338.6 million people every day. The euro was launched on 1 January 1999. Banknotes and coins were introduced on 1 January 2002. The benefits of the common currency are immediately obvious to anyone travelling abroad or shopping online on websites based in another EU country. 6 countries non-EU use the euro: Vatican, San Marino, Monaco, Andorra, Montenegro and Kosovo. Schengen area: 26 members (22 from the EU, 4 non-EU (Norway, Iceland, Switzerland and Lichtenstein). 3 microstates are de facto members because they do not have borders (Monaco, Vatican and San Marino). 2 EU MS are not in the Schengen area: UK and Ireland. 4 EU MS are working on implementing the Schengen area rules to be full members: Cyprus, Croatia, Bulgaria and Romania. The EU has exclusive competences in: -Customs Union -Competition rules -Monetary policy for the Eurozone -Conservation of marine biology -Concluding international agreements