THE

CONTEMPORARY
WORLD

Property of:
Cardeño, John Arthur V.
The Contemporary World - these landscapes includes technoscape
The Contemporary World (TCW) is an (technology), financescape (economics),
interdisciplinary outcome-based course that ethnoscape (culture and social life) and ideoscape
comprehensively discusses both globalization and the (ideas) (Appadurai, 1996)
globalized world through various discipline of the social
sciences. This course likewise deliberates the economic,
Globalization is evident in three forms:
social, political, technological advancements and other 1. Economic globalization
transformations that contributed to the interconnectedness - seen in arrangements for the production of goods
of people and places around the globe. and services (rise of transnational corporations,
With the foremost importance, this discipline aims to division of labor, increase of foreign direct
guide students to determine the challenges posed by investment, flexible forms of production and a
globalization and analyze its effects on traditional cultures global financial system)
and communities, nations and political institutions,
including local, national, and regional economics. 2. Political globalization
Specifically, it is through the combination of readings, class - seen in arrangements for the concentration and
discussion, writing activities, group presentations and application of power.
educational trip that will make the learners meet and later, - Example: growth of multi-state political economic
problematize the communities’ response to persistent groupings and consideration of local issues within
issues. global context

Globalization and Its Definitions 3. Cultural globalization

Globalization
- is a term used to describe a complex of related
processes that has served to increase the
interconnectedness of social life in the post modern
world
- it refers both to compressed of the world and the
intensification of consciousness of world as a whole
- it is a process of interaction and integration of every
landscape in the planet (Levin institute, 2015)
- seen in arrangements for the production , exchange
and expression of symbols that represent facts,
meanings, beliefs, preferences, tastes and values
- Example: global distribution of images and
information and emergent cosmopolitanism of
urban life
Three Views of Globalization
Views about globalization are explained through:
- Cultural theory
 - Economic theory
- Political theory
Cultural Theory
Cultural Differentiation
- those who adopt this paradigm argue that among
and between cultures there are lasting differences
that are largely unaffected by globalization or by
any other bi-, inter-, multi- and transcultural
processes
- this is not to say that culture is unaffected by any of
these processes, especially globalization. But, it is
to say that at their core cultures are largely
unaffected by them; they remain much as they
always have been
- In this perspective globalization occurs only on the
surface and the deep structure of culture is largely
if not totally unaffected by it. Cultures are largely
closed not only to globalization but also to the
influence of other cultures
- In one image, the world is envisioned as a mosaic
of largely separate culture
- One of the proponents cultural differentiation is
Samuel Huntington. He became well of his writing
Clash of Civilization and the Remaking of World
Order (1996)
- Huntington traces the beginnings of the current
world situation to the end of the Cold War and the
reconfiguring of the world from one differentiated on
a political-economic basis (democratic/capitalist
versus totalitarian/communist) to one based on
cultural differences
- Such cultural differences are nothing new, but they
were largely submerged by the overwhelming
political-economic difference of the Cold-war era.
- Huntington uses the term civilization to describe the
broadest level of these cultures and cultural
identities
- He differentiates the number of world civilizations
Civilizations:
1. Are among the most enduring of human association
(although they overtime)
2. Are the broadest level of cultural identity (short of
humanity in its entirety)
3. Are the broadest source of subjective self-
identification
4. Usually span more than one state (although they do
not perform state functions)
5. Are a totality
6. Are closely aligned with both religion and race.
Cultural Convergence
- is based on the idea of globalization leading to
increasing sameness throughout the world
- while thinkers like Huntington emphasize the
persistence of cultures and civilization in the face of
globalization, those who support the convergence
 perspective see those cultures changing,
sometimes radically, as a result of globalization
- those who operate from this perspective focus on
such things as cultural imperialism, global
capitalism, westernization, americanization,
McDonalization and world culture
McDonalization
- it is the process by which the principles of the fast-
food restaurants are coming to dominate more and
more sectors of American Society (Ritzer, 2004)
- the process of McDonalization is delineated in the
five basic assumptions:
1. Efficiency
- A McDonalizing society emphasizes efficiency, the
effort to discover the best possible means to
achieve whatever end is desired. Workers in the
fast-food restaurants clearly must work efficiently
2. Calculability
- A great importance is given to calculability to an
emphasis on quantity often to the detriment of
quality. Various aspects of the work of employees at
fast-food restaurants are timed
3. Predictability
- Because McDonalization involves an emphasis on
predictability, things are pretty much the same from
one geographic setting to another and from one
time to another
4. Control by Means of Technology
- technology currently dominates the employee, but
increasingly they will be replacing them
5. Irrationality of Rationality
- Both employees and the customers suffer from the
irrationality of rationality that seems inevitably to
accompany McDonalization
- Paradoxically, rationality seems often to lead to its
exact opposite-irrationality
- Example: the efficiency of the fast-food restaurants
is often replaced by the efficiencies associated with
long lines of people at the counters or long lines
Cultural Hybridization
- The concept that gets to the heart of globalization
as well as to what many contemporary theorists
interested in globalization think about the nature of
transnational processes is glocalization
Glocalization
- can be defined as the interpenetration of the global
and the local resulting in unique outcomes in
different geographical areas
-
Ideas or perspectives emphasized in glocalization:
1. The world is growing more pluralistic. Glocalization
theory is exceptionally alert to difference within and
between areas of the world
 2. Individuals and local groups have great power to
adapt, innovate and maneuver within a glocalized
world. Glocalization theory sees local individuals
and groups as important and creative agents
3. Social processes are relational and contingent.
Globalization provokes a variety of reactions-
ranging from nationalist entrenchment to
cosmopolitan embrace-that feed back on and
transform it, that produce glocalization
4. Commodities and the media are seen not as totally
coercive but rather as providing material to be used
in individual and group creation throughout the
glocalized areas of the world
Appadurai’s Landscapes
Aljun Appadurai discusses five global flows:
1. Ethnoscapes
- involve the mobile groups and individuals who play
such an important role in the ever changing world in
which we increasingly live
2. Technoscapes
- are the ever-fluid, global configuration of high and
low mechanical and informational technology and
the wide range of material that move so freely and
quickly around the world and across borders
3. Financescapes
- involve the processes by which huge sume of
money move through the nations around the world
at great speed through commodity speculations,
currency markets, national stock exchanges and
the like
4. Mediascapes
- involve both the electronic capability to produce and
transmit information around the world and image of
the world that these media create and disseminate
5. Ideoscapes
- are sets of images. They are largely restricted to
political images produced by states and in line with
their ideology or to images and counterideologies
produced by movements that seek to supplant
those in power or at least to gain a piece of that
power
Economic Theory
Transnational Capitalism
- Lelsie Sklair (2002) distinguishes between two
systems of globalization: the first is capitalist
system of globalization, is the one that is
predominant and the other, the socialist system is
not yet in existence but foreshadowed by current
anti-globalization movement, especially those
oriented toward greater human rights throughout
the world
- Sklair focuses on transnational practices that are
able to cut across boundaries including those
created by states with implication that territorial
boundaries are of declining importance in capitalist
globalization
 - As a Marxist, Sklair accords priority to economic
transnational practices and it is in this context that
transnational corporations, one of the central
aspects of his analysis, predominate
- The second transnational practice of great
importance is political and here the transnational
capitalist class predominates. However, it is not
made up of capitalists in the traditional Marxian
sense of the term that is, the transnational capitalist
does not necessarily own the means of production
- The third transnational practice is culture-ideology,
and here Sklair accords great importance to the
culture-ideology of consumerism in capitalist
globalization
Empire
Sklair differentiates the four fractions of transnational
capitalist class:
1. The corporate fraction made up of executives of
transnational corporations and their local affiliates
2. A state fraction composed of globalizing state and
interstate bureaucratic and politicians
3. A technological fraction made up of globalizing
professionals
4. The consumerist fraction encompassing merchants
and media executives
The transnational capitalist class may not be capitalist in a
traditional sense of the term, but it transnational in various
ways:
1. Its members tend to share global interests
2. They seek to exert various types of control across
nations. That is they exert economic control in the
workplace, political control in both domestic and
international politics and culture-ideological control
in everyday life across international borders
3. They tend to share a global rather than a local
perspective on a wide range of issues
4. Fourth, they come from many different countries,
but increasingly they see themselves as citizens of
the world and not just of their place of birth
5. Finally, wherever they may be at any given time,
they share similar lifestyles, especially in terms of
the goods and services they consume
- Written by Michael Hardt and Antonio Negri (2000)
- They analyze the post modernization of the global
economy
- They associate modernity with imperialism, the
defining characteristic of which is one or more
nations at the center that control and exploit,
especially economically, a number of areas
throughout the world
- Hardt and Negri “decenter” this imperialism,
thereby defining empire as a postmodern reality in
which such dominance exists but no single nation
is at its center
- Empire does not exist yet fully. It is in formation at
the moment, but we can get a sense of its
parameter. Empire governs the world with a single
 logic of rule, but there is no single power at the heart
of the empire. Instead of single source of command
empire power is dispersed throughout the society
and the globe
- Empire is lacking in geographic or territorial
boundaries. It can also be seen as lacking temporal
boundaries in the sense that is seeks to suspend
history and to exist for all eternity
- The key to the global power of empire lies in the fact
that it is a new juridical power. It is based on such
things as the constitution of order, norms, ethical
truths and a common notion of what is right. This
juridical formation is the source of power of empire
Empire is based on a triple imperative:
1. It seeks to incorporate all that it can. It appears to
be magnanimous and it operates with the liberal
façade. However, in the process of inclusion, it
creates a smooth world in which difference,
resistance, and conflict are eliminated
2. Empire differentiates and affirms differences. While
those who are different celebrated culturally, they
are set aside juridically
3. One the differences are in place, empire seeks to
hierarchize and to manage the hierarchy and the
differences embedded in it. It is hierarchization and
management that is the real power of empire
Political theory
Liberal theory
- It comes in various forms, but all are undergirded
by a belief in the importance of the free market and
the need to allow it to operate free from any
impediments, especially those imposed by the
nation-state and other political entities
- The belief is that the free operation of the market, in
particular the capitalist market, will in the long run
advantage just about everyone
- This a popular theory in international relations,
political science and business
Realist View
- It sees globalization as the outcome of power
relations among the nation-states
- States are seen as aggressively pursuing their own
interests on the global stage and using their power
to advance those interests
Distant Proximities
- James Rosenau (2003)
- It explains that the globe is increasingly
characterized by the feeling that what seems
remote is also close at hand
- Fragmegration- the idea that the world is both
fragmenting and integrating at same time. The
world is localizing, decentralizing, and fragmenting
 while it is simultaneously globalizing, centralizing
and integrating
Rosenau identifies the various sources of fragmegration in
the world today:
1. The development of new microelectronics
technologies
- cell phones, internet, and e-mail
2. The skill revolution
- ability of the people to relate their own situation to
larger, even global situations
3. The Organization Explosion
- massive proliferation of voluntary organization
(NGO)s
4. Bifurcation of Global Structure (the increasing
variety of organizations and states)
- Rosenau sees bifurcation between states on the
one hand and a wide array of subnational,
transnational and non-governmental organization
on the other (multi-centrism)
5. The mobility upheaval
- The increasingly vast movement of people through
out the world is having a fragmegrative effect
- Example: travel and tourism
6. Weakening of Territoriality in general and state
sovereignty in particular
- Ideas, jobs, production facilities, money, drugs,
pollution and in some cases even territories floe
freely across the borders
7. Authority crises brought on by increasing and
subgroupism and decentralization
- The disintegration of the state is paralleled by an
erosion of its authority. Traditional loyalties and
bases of authority are eroding and being replace by
the criterion of how well the state performs its
various tasks and responsibilities
8. The Globalization of National Economies
- The state can no longer control transnational
economic flows, but those flows are seen by many
as of far greater importance than anything else the
state does
Historical Trajectory of Globalization
Middle Age
Silk Trade
- Significant factor in the development of civilization
from China, Indian subcontinent , Persia, Europe
and Arabia, opening long-distance political and
economic interactions between them
- The movement of people such as refugees, artists,
craftsmen, missionaries, robbers and envoys,
resulted in the exchange of religions, art,
languages and new technologies

Industrial Revolution
- Innovations in transportation technology reduced
trade cost substantially
- New industrial military technologies increased the
power of European states and the United States,
and allowed these powers to forcibly open up
market across the world and extend their empires
- Gradual move towards greater liberalization in
European countries
- It allowed standardization of production of
household items using economies of scale
- Rapid population growth created sustained demand
for commodities
- The invention of shipping containers helped
advance the globalization of commerce
English Imperialism
Imperialism
- the extension of nation’s power over other lands
Motives of Imperialism
1. Capitalist states were looking for both markets and
raw materials such as rubber, oil, and tin for their
industries
2. Imperialism was tied to social darwinism and racism
Social Darwinism
- Believed that in the struggle between nations, the fit
are victorious
Racism
- It iis the belief that race determine traits and
capabilities. Racists erroneously believed that
particular races are superior or inferior
Great Britain
- In 1819 Great Britain sent Sir Thomas Stanford
Raffles to found a new colony on a small island at
the tip of the Malay Peninsula called Singapore
(Lion City) in the new age of steamship
 - It became the major stepping point for traffic going
to or from China
- During the next decade, the British advance into
Southeast Asia specifically in Burma. Britain
wanted to control Burma to protect its possession in
India
- This led to the decline or collapse of the Burmese
Monarchy
Imperial Powers 1898
The Attributes of Globalization
The Global Interstate System: The Making of the Modern
World
- There is high level of meetings of global
organization such as World Trade Organization
(WTO) and (International Monetary Fund (IMF)
- Globalization of culture can be seen either as
transnational expansion of common codes and
practices (homogeneity) or as a process in which
many global and local cultural inputs interact to
create a kind of pastiche, or a blend, leading to a
variety of cultural hybrids (heterogeneity)
- The trend toward homogeneity is often associated
with cultural imperialism, the influence of a
particular culture on a wide range of other culture
- Globalization is seen as spread of neoliberalism,
capitalism, and the market economy
- Heterogeneity in the economic realm involves the
commodification of local cultures and the existence
of flexible specialization that permits the tailoring of
many products to the needs of local specifications
- Those who emphasize heterogenization would
agree that the interaction of the global market with
local markets leads to the creation of unique glocal
markets that integrate the demands of the global
market with the realities of local market
- There is a worldwide spread of models of the
nation-state and the emergence of similar forms of
governance throughout the globe-in other words,
 the growth of more-or-less single model of
governance around the world
- Some see the growth of transnational institutions
and organizations as greatly diminishing the power
of both the nation-state and other more local, social
structures to make a difference in people’s lives
Attributes of Modern International Politics
The Origins Of Nation-State
Concept of State
State
- It refers to a legal-political entity, meaning an entity
that has a sovereign government, exercising
supreme authority over a relatively fixed population,
within well-defined territorial boundaries and
acknowledging no higher authority outside of those
boundaries. (Pearson and Rochester)
- A state is geographically bounded entity governed
by a central authority that has the ability to make
laws, rules and decisions and to enforce those laws,
rules and decisions within its boundaries
- A state is also a legal entity, recognized under
international law as the fundamental decision-
making unit of the international legal system
- A state is a legal geographical entity that has a
permanent population, defined territory and a
legitimate government
- A state is an organized political entity that exerts its
will upon those within its boundaries.
Three elements determine the existence of the state:
1. The state is composed of institutions which possess
means of violence and coercion, such as police
forces, or armies.
2. The state controls a specific geographical area
within which it exercises power
3. The state monopolizes rule-making within its
boundaries (Minix and Hawley)
Concept of Nation
Nation
- It refers to a cultural or social entity, meaning a
group of people having some sense of shared
historical experience as well as shared identity. The
shared historical experience is generally rooted in a
common language, ethnicity or other cultural
characteristic (Pearson and Rochester)
- A nation is a group of people who consider
themselves to be ethnically, culturally or
linguistically related. This group does not
necessarily need to be geographically bounded or
legally defined. Members of the group view
themselves as being linked to one another in some
manner (Papp)
Concept of Nation-State Characteristic of Internationalism
There are two kinds of nation-state: - Belief in constitutional government
- In one kind, the state created the nation. This took - Rule of law for international community
place during the 17th and 18th centuries, as well as
during the period following World War 2
- During the post-war period, many countries in Asia Bandung Conference
and Africa achieved independence from colonial
- The first Asian-African or Afro-Asian Conference
powers from 1945 such as the Philippines
- It was a meeting of Asian and African states most of
- Those countries became states whose borders did
which were newly independent
not correspond to any natural cultural groupings,
- It took place on April 18-24, 1955 in Bandung,
but were artificial products of imperialistic rivalries
Indonesia
and colonial making
- It was organized by Indonesia, Burma (Myanmar),
- Nation-state means a state whose inhabitants
Pakistan, Sri Lanka and India
consider themselves to be a nation
- A nation-state is a nations with a political construct,
i.e., territorially defined boundaries, legal Participants:
government, foreign recognition, etc. - Kingdom of Afghanistan
- India
- Burma
The Rise of Internationalism - Indonesia
Internationalism - Cambodia
- It states that people do not want war, but are - Iran
sometimes let into it by militarists or autocrats - Dominion of Ceylon (Sri Lanka)
- Sometimes people are led to into war because their - Iraq
- China
desire to become a state is blocked by
- Japan
undemocratic multinational imperial system
- Cyprus
- To prevent war, it is necessary to promote - Jordan
democratic political system and the principle of - Republic of Egypt
national self-determination. A democratic political - Laos
system is defined as a liberal-democratic and - Ethiopia
constitutional regime - Lebanon
 - Gold Coast Declarations
- Liberia - Respect for fundamental human rights and for the
- India purposes and principles of the charter of the United
- Libya Nations
- Nepal
- Respect for the sovereignty and territorial integrity
- Yemen
of all nations
- Pakistan
- Philippines - Recognition of the equality of all races and of the
- Saudi Arabia equality of all nations large and small
- Syria - Abstention from intervention or interference in the
- Sudan internal affairs of another country
- Thailand - Respect for the right of each nation to defend itself,
- Turkey singly or collectively, in conformity with the charter
- South Vietnam of the United Nations
- North Vietnam a) Abstention from the use of arrangements of
collective defence to serve any particular
29 Countries interests of the big powers
b) Abstention by any country from exerting
pressures on other countries
- Refraining from acts or threats of aggression or the
use of force against the territorial integrity or
political independence of any country
- Settlement of all international disputes by peaceful
means, such as negotiation, conciliation, arbitration
or judicial settlement as well as other peaceful
means of the parties own choice, in conformity with
the charter of the United Nations
- Promotion of mutual interests and cooperation
- Respect for justice and international obligations
The Global Governance
Global Governance can be explained in the following
based from the following theories:
a) Functionalism
- Meaning that all aspects of society serve a function
and are necessary for the survival of that society
b) Neo-functionalism
- Meaning a new kind of functionalism developed in
Europe, where states discover that cooperation in
one area naturally leads to cooperation in another
through a political process called spill over
c) Federalism
- Meaning an international system in which states of
the world form a unity but remain independent in
their internal affairs
d) Collective Security
- Meaning the cooperation of several states in an
alliance to strengthen the security of each state
International Actors in Global Governance
State
- It has four elements: people, territory, government
and sovereignty
International organization
- It refers to any group of individuals from at least two
different countries that have a formal institutional
apparatus that facilitates regular interactions
between members across national boundaries
Civil Society
- It can be understood as third sector of the society,
distinct from the government and business and
including the family and the private sphere
- This is the aggregate of non-governmental
organizations and institutions that manifest
interests and will of the citizens
- Individuals and organizations in society which are
independent of the government
Market
- It is of the many varieties of systems, institutions,
procedures, social relations and infrastructures
whereby parties engage in exchange
- Markets rely on sellers offering their goods or
service to the buyers in exchange for money from
buyers
- The process by which the prices of goods and
services are established
The United Nations
- It was a result of joint discussion by allied powers at
Dumbarton Oaks (an estate in Washington D.C.)
from August 21 to October 7, 1944
 - In April 1945, fifty nations assembled at San
Francisco for the UN Conference on International
Organization which reconsidered the Dumbarton
Oaks proposal, modified and amended it
- On June 26, 1945 the Charter of the United Nations
was signed, with the Philippines as one of the
signatory-nations
I. General Assembly
- It is composed of representatives of all the member
nations. Each nation is entitled to one vote. It meets
in a regular annual session, which begins on the
third Tuesday in September and in special sessions
when necessary, Special sessions are convoked by
the Secretary General at the request of the Security
Council or of a majority of the members of the UN.
II. Security Council
- It consists of 15 members, 5 with permanent seats.
The remaining 10 are elected for 2-year terms by
the General Assembly; they are not eligible for
immediate re-election
- On the basis of a General Assembly’s resolution the
allotment of the non-permanent members are as
follows: 5 for Africa and Asia, 2 for Latin America, 1
for Eastern Europe and 2 for Western Europe
- The permanent members of the Council are: China,
France, Russia, United Kingdom and the United
States. Presidency of the Council rotates mostly by
English alphabetical order of states
- The security council has the primary responsibility
within the UN for maintaining international peace
and security. It directs the various truce supervisory
forces deployed throughout the world
III. Economic and Social Council
- It consists of 54 members elected by the General
Assembly for 3 year term of office
- The council meets once a year
- It is responsible to the General Assembly for
carrying out the functions of the UN with regard to
international matters, social, cultural, educational,
health and related matters
- Its mission is to promote the welfare of all people
everywhere
IV. Trusteeship Council
- Its function was the administration of trust
territories, however, all the 11 trust territories have
attained their right to self-determination. The work
of the council has been suspended
V. Secretariat
- The UN Secretariat is a body of international civil
servants headed by the Secretary General
- It is constituted of full-time employees of the
organization, who must preserve their neutrality in
 the interests of serving the entire membership of
promoting the goals of the UN
- The secretary general is elected by the general
assembly thru a two-thirds vote, upon the
recommendations of the Security Council
- The first general assembly established the length of
term for the Secretary General as five years
- The functions of the Secretary General are: 1) to be
chief administrative officer of the UN, 2) to act as
secretary to all major delegate bodies of the UN, 3)
to perform functions assigned to him by the other
UN organs, 4) to make annual report to the General
Assembly on the work of the organization, 5) to
appoint the Secretariat staff and 6) he may also
bring to the attention of the Security Council any
matter threatens international peace
VI. International Court of Justice (World Court)
- The headquarters are in the Hague, Netherlands
- The 15 judges are elected for 9 years term by the
General Assembly and the Security Council and
every year the term of five judges expires
- The jurisdiction of the court comprises cases which
the parties submit to it and matters especially for in
the Charter or in treaties
- All questions are decided by the majority
- No state is required to submit any case for hearing
and decisions
- This lack of compulsory jurisdiction is a major
deficiency of the international court as contrasted
with national legal systems
- In addition to hearing cases, the ICJ or World Court
is authorized to give advisory opinions on legal
questions
Global Economy
The Spread of Modern Economic Growth
Economic Growth
- It is the expansion of the economy in volume of
production, trade, investment, income and
infrastructure
- It is the widening of the areas of activities with effect
on a higher level of employment
- It is the expansion of the domestic and foreign
market that is marked by the variety of goods
available to the people
- The search for markets and products drove the
Europeans beyond the edge of the Eurasian
continent to Africa and Asia
- European countries established empires mostly in
Asia and Africa: Spain, Portugal, Netherlands,
England, France, Germany, Italy and Belgium
- United States and Russia also subjugated their own
colonies
- The global empire proved profitable for the
European colonial powers
 - After World War 2, the Bretton Woods conference
established a new economic order based on the
International Bank for Reconstruction and
Development (World Bank), International Monetary
Fund (IMF) and General Agreement on Tariff and
Trade
The World as an Economic System
Traditional Economy
Characteristics:
- The communal land ownership
- The leader decides on the management of
agricultural production which is the basis of the
economy
- The production, distribution and use of economic
resources are based on traditional practices
- New technologies are not welcomed since they are
in contrast with the traditional practices of their
ancestors
- The economy is only its third priority while culture
and religion are its foremost priorities
- Mines are used to gather raw materials for
production
Command Economy
- The factors of production and distribution are
owned and managed by the state
Essential characteristics:
- Resource allocation is done by government
- Presence of central planning of all economic
activities
- There is no free competition
- Only the government plays the role in setting legal
framework for economic life production and
distribution of goods and services
- The products or need of the people are distributed
based on priorities set by the committee
Market Economy
- There is an interaction between consumers and
sellers in determining the price of the commodity
Essential characteristics:
- The private sector owns and manages the means
of production
- The price system in a market structure applies to
determine how much will be paid for a certain
commodity or service
- It is known as laissez-faire or free enterprise
- There is minimum government interference on
decisions pertaining to the management of the
economy
- Existence of competition often results to monopoly
- There is presence of economic power
Mixed Economy
Essential Characteristics:
- The means of production are owned and controlled
by the private sector as well as the government
- The people decide on economic activities within the
economy
- The combination of the best features of capitalist
and command economies are observable in the
market
- The problem of distribution of goods and services
and allocation of the economic resources are
determined through a combination of the market
system and governmental laws and policies
Capitalism
- An economic system in which most resources are
privately owned, people are free to choose their
occupation.
Three aspect:
- The institution of private ownership is generally
accepted
- Most are free to pursue their economic self-interest
- People compete with one another to get ahead and
make a better product
Communism
- It holds that the people themselves not the
government own the means of production. In a
communist state, everyone works at what she or he
can do best
- Everyone simply takes from what is produced
whatever she need to live comfortably
Socialism
- The government owns and operates the major
industries
The reason for existence of socialism:
- Unequal distribution of income and wealth
- Uneven course of economic growth with periods of
boom or bust
Attributes of Economic Globalization
Globalization of Trade and Finance (Scholte)
Crossing of Borders
- A movements between countries of people, goods,
money, investments, messages and ideas
Open Borders Transactions
- It is the progressive removal of border controls
- It refers to the end of international relations
 - It is facilitated by General Agreement on Tariffs and
Trade (GATT) which reduced customs, duties,
quotas and other inhibitory measures

Transcendence of Borders
- The process by whereby social relations relatively
distanceless and borderless qualities so that
human lives are increasingly played out in the world
as single space
- This is facilitated by travel, satellite links,
telecommunications, worldwide organizations and
global consciousness

Top MNC’s in the World

Transnational Corporations 1) Apple
Transnational Corporation (TNC) - Number of employees: 66,000
- It is any enterprise that undertakes foreign direct 2) Alphabet
investment, owns or controls income-gathering
assets in more than one country, produces goods - Subsidiary of google
or services outside its country of origin, or engages - Number of employees: 69,953
in international production (Biersteker 1978, p. xii)
3) Microsoft
Computer company
Multinational Corporation (MNC)
- Number of employees: 114,000
- Or sometimes called worldwide enterprise is
corporate organization that owns or controls 4) Berkshire Hathaway
production of goods or services in at least one - Company involved in technology
country other than its home country
- Number of employees: 360,000
 5) Exxon Mobil
- Oil and gas company
- Number of employees: 73,500
6) Amazon
- Online bookshop
- Number of employees: 222,400
7) Facebook
- Number of employees: 15,742
8) Johnson and Johnson
- Pharmaceutical goods
- Number of employees: 128,000
9) General Electric
- Digital industrial company
- Number of employees: 333,000
10) China Mobile
- Mobile and telecommunication services company
- Headquarter is located in China
- Number of employees: 438,645
Reasons for Spread of MNCs (Pearson and Rochester)
- Companies found it easier to gain access to foreign
markets, not by breaking down tariff and nontariff
barriers, but by building separate facilities inside
other countries
- Many countries offer cheap labor, special tax
treatment, lax pollution laws and other advantages
to foreign firms
- The expansion of MNCs was facilitated by new
technology, including faster communications and
travel charge containerization and development of
high-tech computers
- The economic primacy of the United States and the
special status of the dollar after World War 2 both
of which enabled US based corporations to expand
overseas
- Corporations found foreign investments to be
increasingly profitable
MNCs can be categorized as:
- Industrial corporation
- Financial corporation
- Service corporation
Financial Institutions
International Finance
- It is defined as monetary transactions across
political borders, usually involving exchange of
currencies
- The core of the international monetary system
consists of arrangements for the setting of currency
exchange rates
There are three kinds of exchange rates:
Fixed or pegged rates
- Market currencies were convertible into gold
resulting in fixed exchange rates
Floating exchange rates
- Which are determined each day in the marketplace,
according to the law of supply and demand
Managed floating rates
- under which monetary authorities intervene to
influence the long-term direction of rates
Functions of Financial Institutions
Financial Institutions
- It helps to provide opportunity for our economic
growth and improve our living standards. They do
this by assisting as a liaison for those who have
savings (dollars) and those who have a need for
capital. Institutions typically will raise dollars from
other institutions or individuals then loan those
dollars to other entities at a cost (interest rate). This
is how financial institutes help aid the flow of money
through our economy.
Examples of Financial Institutions:
- Banks
- Insurance Companies
- Credit Unions
- Brokerage Companies
Central Bank
- The function is to maintain the value of the state
currency by limiting the amount of money printed
and preventing high inflation
- Example: Bangko Sentral ng Pilipinas (BSP)
World Bank
- The foremost international development institution
and the single source of long-term lending for
development
- It has headquarters in Washington D.C.
- The bank equity consists of capital subscriptions
from its shareholders of 181 member countries.
They own the bank. Each member country is
required to pay 10 percent of its subscription.
- It also sells securities to private investors and
central banks
- It has outstanding borrowing of over 120 billion
dollars
- It has annual income of over 1.5 billion dollars at the
start of 21st century, most of it reinvested
 - It was the lender of last resort for North and South
countries
- It prescribes financial remedies to financially
economies, specially in the south

Diaspora
- It is a large group of people with a similar heritage
or homeland who have since moved out to places
all over the world. The term diaspora comes from
an ancient Greek word meaning "to scatter about."
- This is because of war, trade and globalization

International Monetary Fund

- It supervises the global rules governing money in
general
- It supervises adherence to orderly currency
relations among the north states in particular
Gender
- It refers to the socially constructed characteristics
of women and men – such as norms, roles and
relationships of and between groups of women and
men. It varies from society to society and can be
changed. While most people are born either male
or female, they are taught appropriate norms and
behaviours – including how they should interact
with others of the same or opposite sex within
households, communities and work places. When
individuals or groups do not “fit” established gender
norms they often face stigma, discriminatory
practices or social exclusion – all of which adversely
affect health. It is important to be sensitive to
different identities that do not necessarily fit into
binary male or female sex categories.
- The word gender describes the socially-
constructed roles and responsibilities that societies
consider appropriate for men and women
Gender Equality
- Providing women and girls with equal access to
education, health care, decent work, and
representation in political and economic decision-
making processes will fuel sustainable economies
and benefit societies and humanity at large.
Implementing new legal frameworks regarding
female equality in the workplace and the
eradication of harmful practices targeted at women
is crucial to ending the gender-based discrimination
prevalent in many countries around the world.
- Gender equality means that men and women have
equal power and equal opportunities for financial
independence, education, and personal
development
- Women's empowerment is a critical aspect of
achieving gender equality. It includes increasing a
woman's sense of self-worth, her decision-making
power, her access to opportunities and resources,
her power and control over her own life inside and
outside the home, and her ability to effect change
Global Divides: The North and The South
The North–South divide is broadly considered a socio-
economic and political divide.
Global North
- It includes United States, Canada, Europe, Israel,
Japan, Singapore, South Korea, Taiwan as well as
Australia and New Zealand
- The North is home to all the members of the G8 and
to four of the five permanent members of the United
Nations Security Council
- The North mostly covers the West and the First
World, along with much of the Second World
- The North may be defined as the richer, more
developed region
- 95% of the North has enough food and shelter
Global South
- It is made up of Africa, Latin America and
developing Asia including the Middle East
- The South largely corresponds with the Third World
- It is the poorer, less developed region
- The Global South lacks appropriate technology, it
has no political stability, the economies are
disarticulated, and their foreign exchange earnings
depend on primary product exports

North and South Divide