The Contemporary World

Module 2 Structure of Globalization

Topics
a. The Global Economy
b. Market Integration
c. The Global Interstate System
d. Contemporary Global Governance

Learning Outcomes
At the end of the lesson, the student should be able to:

1. Define economic globalization

2. Narrate a short history of global market integration
3. Identify the actors that facilitate the global interstate system
4. Articulate stance on global economic integration

ECONOMIC GLOBALIZATION
Economic globalization refers to the mobility of people, capital, technology, goods and
services internationally. It is also about how integrated countries are in the global economy. It
refers to how interdependent different countries and regions have become across the world.
In the eighteen hundred in the world economy generally, people and capital crossed
borders with ease, but not goods. In this century, people do not cross borders easily, but
technologies, capital and goods do.
Economic globalization is a worldwide phenomenon wherein countries’ economic
situations can depend significantly on other countries. Many allied countries would supply
resources to each other that the other countries do not have. These resources can cover imported
products, technology, and even human labor. Many people have observed that this phenomenon
may lead to a “one-world government,” which consists of a centralized government for all
nations.
One popular activity under globalization is international trade, in which products and
services are exchanged between or among nations. Many countries that have abundant natural
resources rely on this trading system to market their unique local products and, in turn, improve
their economic state. International trade has been practiced for centuries, as evidenced by the
Silk Road that connects Asia and Europe for trading purposes. One modern example of this type
of trade is the toy industry, wherein many American-sold toys have the phrase “Made in China”
embossed on their surface.

Depending on a person’s perspective, economic globalization has both advantages and

disadvantages. Advocates assert that the phenomenon increases a country’s productivity with
increased job opportunities and possible higher salaries. This can lead to economic growth and a
higher standard of living. The reliance of countries on each other has also led to better chances of

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international peace. It has also paved the way for cultural awareness and understanding, largely
through the help of technology.

On the other side, some people believe that globalization has more disadvantages than
benefits. One negative result is that natural resources are depleted at a faster rate, since the
demand for raw materials has increased among many countries. Another drawback is the
violation of human rights, as many countries can exploit human labor outsourced from
developing countries. Others say that it's a method for more powerful countries to colonize less
developed ones by taking control of the latter’s economic situation. Whether economic
globalization has positive or adverse effects, no one can doubt the phenomenon’s influence and
impact on today’s global development.

https://www.wisegeek.com/what-is-economic-globalization.htm

PROCESS QUESTIONS

1. How do you experience globalization?

We are all experiencing “globalization", feel in our day to day life how we evolved into a
fully integrated world, where we are all interdependent and as a result we have all
become irrevocably responsible for each other.
Since this new state natural evolution forces on is is completely opposite to our inherently
egocentric, subjective, individualistic viewpoint, behavior, we urgently need a new,
purposeful and highly practical “Integral Education" to help us adjust, adapt to our new
evolutionary conditions.

2. Why it is crucial to emphasize that globalization is uneven?

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It is most important to emphasize that globalization is uneven because its unevenness is
the source of most of the problems it has given rise to. When one speaks of uneven
globalization, one is actually saying that economic development and both its benefits and
disadvantages are distributed unevenly, usually contributing to disparities of wealth and
power that interfere with democratic institutions’ operations.

3. Do you think that the Philippines is harmed as other countries transfer their activities to
us through outsourcing?
My opinion: No. As long as the RP can handle the business and the business aligns with
where the RP wants to go in their economy. It certainly means an increase in employment
and economic growth, both of which the RP government wants. Even China should want
the RP to benefit. If it does, it also helps to stabilize the region. A strong South East Asia
is good for the region, The Philippines should share in that growth and peace.

4. In what ways do international organizations help our country economy?

In an increasingly globalized world, international organizations play an important role in
importing and exporting. Their functions include maintaining standards to ensure safety,
helping developing countries achieve economic security, and establishing norms
regarding how countries make trade agreements and resolve conflicts.

5. Does the position in rich countries giants in the economic chain treat the status of less
developed countries in the global market?
To your question of rich countries threatening poor countries the answer is absolulty not.
It’s actually the opposite. Poor countries in a region more likely to be pulled down by
other poor countries with evil leadership. A poor country can’t help another poor country
so there is nothing to gain there. A poor country has the best bet of receiving help from a
rich country with good intentions.

RUBRICS FOR ASSESSING STUDENTS ACTIVITY AND EVALUATION

Name: LOURDELIZA BAUTISTA Year & Section: BSTM 3A

Facilitator: PRECIOUS R. ESTEBAN, LPT Date Submitted: 10/17/21

INDICATORS
15 - 81 to 100% of the task required is correctly answered with supporting evidences &
explanations
12 - 61 to 81% of the task required is correctly answered with supporting evidences &
explanations

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9 - 41 to 60% of the task required is correctly answered with supporting evidences &
explanations
6 - 21 to 40% of the task required is correctly answered with supporting evidences &
explanations
3- 1 to 20% of the task required is correctly answered with supporting evidences & explanations
0 - No correct answer or not task was accomplished

REFERENCES
Economist (2006, January 12), Genghis the globalizer.
World Economic Forum. (2010). Realizing a new version of Agriculture: A roadmap for
stakeholder-Retrieved from http://www3. Org/docs/IP/2016
Shangquan, G (2000). Economic globalization as a mobility regime. Sociology theories

LEARNING ACTIVITY

Global Economic Institution

Name: LOURDELIZA BAUTISTA Year & Section: BSTM 3A
Facilitator: PRECIOUS R. ESTEBAN, LPT Date Submitted: 10/17/21

Directions:
Organize a trip to and familiarization tour of an international economic organization
(Asian Development Bank) or an international company (Honda, Jollibee, etc.). Gather as much
information as you can during the tour.

Accomplish these tasks

a. Research the origins and history of the institution you have chosen;
The first franchised outlet of Jollibee opened in Santa Cruz, Manila in 1979. Jollibee
experienced rapid growth. It was able to withstand the entry of McDonald's in the
Philippines in 1981 by focusing on the specific tastes of the Filipino market, which
differed from the American fast food company.
b. Map the international connections it has created;
At present, the Jollibee Group operates in 35 countries, with over 5,800 stores
globally with branches in the Philippines, United States, Canada, People’s Republic
of China (including Hong Kong and Macau), United Kingdom, Italy, Vietnam,
Brunei, Singapore, Saudi Arabia, United Arab Emirates, Qatar, Oman, Kuwait,
Bahrain, Indonesia, Costa Rica, Egypt, El Salvador, Panama, and Malaysia.

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c. Identify the major country-leaders of this institution;
Tony Tan Caktiong Chairman.
Ernesto Tanmantiong President, CEO & Executive Director.
Ysmael Villoso Baysa CFO, Compliance Officer & VP-Corporate Finance.
Susana K.
Fernando S.
William Tan Untiong Secretary & Executive Director.
Cho Sit Ang Non-Executive Director.
Poe Eng Chua Non-Executive Director.
d. Locate the Philippine in this map of interconnections.
For me, no need to map because the owner of Jollibee is also a Filipino.

Then answer this question: how does this institution influence global economic activity?
How does it affect economics in the Philippines?
Jollibee Foods Corporation (JFC) runs the largest chain of fast food restaurants in the
Philippines and is reliant on a steady supply of raw materials, such as vegetables, cereals and
animal produce, at significant quantities and stable prices. However, the agricultural sector in the
Philippines is particularly vulnerable to such extreme weather events as typhoons, and when
extreme weather reduces crop yields, the price of produce inevitably spikes – exacerbated by
middlemen who hike prices exorbitantly. By 2015, Jollibee had helped over 900 farming families
in 27 cooperatives with an increase in income of 200-500%. One-fourth of all vegetable produce
sourced by JFC is now purchased directly from the farmer cooperatives.

MARKET INTEGRATION

● Integration shows the relationship of the firm in a market. The extent of integration
influences the conduct of the firms and consequently their marketing efficiency.
● The behavior of a highly integrated market is different from that of a disintegrated
market.
● Markets differ in the extent of integration and therefore, there is a variation in their
degree of efficiency.

HISTORY OF MARKET INTEGRATION

The nineteenth century saw substantial advances in international market integration, and
the creation of a truly world economy. Technological advance was critical in this. The railroad
locomotive and the marine steam engine revolutionized world transport from the 1830s onwards.
Steamships connected the world's ports to each other, and from the ports the railroads ran inland,
creating a new and faster world transport network. Freight rates fell, and goods could be carried
across the world to ever more distant markets and still be cheaper in those faraway places than

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the same item produced locally. Linked closely to these changes was the electric telegraph,
whose lines often ran along the new railroad networks. Telegraph systems were established in
most countries, including the major market of British India, until 1854. Beginning with the first
transatlantic cable, which was laid by steamship in 1866, these existing domestic telegraph
systems were linked together by marine cables. The resulting international information network
was crucial in communicating details of prices and price movements, reducing the cost of
making deals and transactions. An infrastructural change of major significance came in 1869
with the opening of the Suez Canal, which linked the Mediterranean Sea by way of Egypt to the
Red Sea: now ships sailing from Europe to Asia could take the new shortcut rather than sail all
the way around Africa. Immediately Asia was some 4,000 miles closer to Europe in transport
terms, and freight costs fell. Yet the low efficiency of early steamships meant that many bulk
cargoes such as rice still were carried to Europe from Asia by sail around the Cape of Good
Hope. Technological change in the shape of steel hulls and steel masts made sailing ships larger
and more efficient, and they continued to be active until the more efficient triple-expansion
engine finally drove the sailing ships from the oceans during the last quarter of the nineteenth
century.

RISE OF FREE TRADE

Physical changes in lowering freight and transaction costs were not the only forces
stimulating market integration. It was normal for countries to impose import duties on foreign
goods, seeking to gain an inflow of gold in their foreign trade accounts by selling more to each
of their trading partners than they bought from them. But in 1846 the merchants of Manchester,
England, the center of the world's cotton textile industry, struck their famous victory for free
trade by forcing the British government to abandon tariffs on all imported goods apart from a
few luxury items. The tariffs on wheat were the first to go, opening up the Great Plains of the
United States for wheat production to supply Britain. With free trade, no longer did trade
relations with a foreign country have to balance or be in surplus; rather, a deficit in trade with
one country could be offset by a surplus in trade with another country, liberalizing world trade in
a way never previously seen. Britain moved heavily into deficit on trade account, but this was
sustained by considerable invisible inflows generated by her substantial overseas investments,
particularly in the railroad systems of the United States.

TYPES OF MARKET INTEGRATION

There are three basic kinds of market integration
1. Horizontal integration. This occurs when a firm or agency gains control of other firms or
agencies performing similar marketing functions at the same level in the marketing sequence
In this type of integration, some marketing agencies combine to form a union with a
view to reducing their effective number and the extent of actual competition in the market.
It is advantageous for the members who join the group.

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EFFECTS OF HORIZONTAL INTEGRATION

● Buying out a competitor in a time bound way to reduce competition.
● Gaining larger share of the market and higher profits.
● Attaining economies of scale.
● Specializing in the trade.

ADVANTAGES OF HORIZONTAL INTEGRATION

(1) Lower costs (2)Higher efficiency (3)Increased differentiation

(4) Increased market power (5)Reduced competition (6)Access to new markets
(7) Economics of scale (8)Economics of scope (9)International trade

DISADVANTAGES OF HORIZONTAL INTEGRATION

(1)Destroyed value (2)Legal repercussions. (3)Reduced flexibility

2. Vertical Integration. This occurs when a firm performs more than one activity in the
sequence of the marketing process.
● It is a linking together of two or more functions in the marketing process within a single firm
or under a single ownership.
● This type of integration makes it possible to exercise control over both quality and quantity of
the product from the beginning of the production process until the product is ready for the
consumer.
● It reduces the number of middle men in the marketing channel.
a.) Forward integration. If a firm assumes another function of marketing which is closer to the
consumption function, it is a case of forward integration. Example: wholesaler assuming the
function of retailing
b.) Backward integration. This involves ownership or a combination of sources of supply.
Example: when a processing firm assumes the function of assembling/purchasing the produce
from the villages.
c.) Balanced vertical integration. The third type of vertical integration is a combination of the
backward and the forward vertical integration.

ADVANTAGES OF VERTICAL INTEGRATION

1. It allows you to invest in assets that are highly specialized.
2. It gives you more control over your business.
3. It allows for positive differentiation.
4. It requires lower costs of transaction.
5. It offers more cost control.
6. It ensures a high level of certainty when it comes to quality.

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7. It provides more competitive advantage

DISADVANTAGES OF VERTICAL INTEGRATION

1. It can have capacity-balancing problems.
2. It can bring about more difficulties.
3. It can result in decreased flexibility.
4. It can create some barriers to market entry.
5. It can cause confusion within the business.
6. It requires a huge amount of money.
7. It makes things more difficult.

EFFECTS OF VERTICAL INTEGRATION

● More profits by taking up additional functions

● Risk reduction through improved market co- ordination
● Improvement in bargaining power and the prospects of influencing prices
● Lowering costs through achieving operational efficiency
3. Conglomeration. A combination of agencies or activities not directly related to each other
may, when it operates under a unified management, be termed a conglomeration.

EFFECTS OF CONGLOMERATION

● Risk reduction through diversification

● Acquisition of financial leverage
● Empire – building urge.

REASONS FOR MARKET INTEGRATION

● To remove transaction costs

● Foster competition
● Provide better signals for optimal generation and consumption decisions.
● Improve security of supply

DEGREE OF INTEGRATION
● Ownership integration -This occurs when all the decisions and assets of a firm are completely
assumed by another firm. Example: a processing firm which buys a wholesale firm.
● Contract integration -This involves an agreement between two firms on certain decisions,
while each firm retains its separate identity. Example: tie up of a dhal mill with pulse traders for
supply of pulse grains.

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● Measurement of market integration -The measurement or assessment of the extent of market
integration is helpful in the formation of appropriate policies for increasing the efficiency of
marketing process. The measurement or assessment of market integration may be attempted at
two levels.
1) Integration among firms of a market.
2) Integration among spatially separated markets.

INTEGRATION AMONG FIRMS OF A MARKET

● The extent of vertical integration in a market may be assessed by counting the number of
functions performed by each firm in the market.
● The extent of horizontal integration may be measured by studying the number of firms
performing the same marketing function but operating under one common management.
● The result of a study on the existence of vertical and horizontal integration in the marketing of
wheat in eight main wheat producing districts of Rajasthan revealed that about half of the
marketing firms (50.5%) were integrated vertically because they performed two or three
functions.

INTEGRATION AMONG SPATIALLY SEPARATED MARKETS

● The extent to which prices in spatially separated markets move together or are related to
transport costs reflects the degree of integration.
● A two-way analysis of prices in spatially separated markets may be used to assess the degree
of integration.
1) Price correlations.
2) Spatial price differential and Transportation costs.

PRICE CORRELATION

● The degree of correlation between two prices is taken as an index of the extent to which the
two markets are integrated.
● A higher degree of correlation coefficient indicates a greater degree of integration at least in
terms of the pricing of the product between market centers and vice versa
● The correlation in the price of commodity in any markets is unity under spatial price
integration.

SPATIAL PRICE DIFFERENTIAL AND TRANSPORTATION

● Correlation method.
● Ravalli on procedure.
● Co integration approach.
● Parity bound models (PBM).

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PROCESS QUESTIONS

1. What are the effects of the information revolution in today’s global market?
Because of information revolution advancements, information can now be transmitted in
real time, meaning that there are no delays in worldwide distribution. As events unfold
across the planet, people everywhere can have instant access to this information and thus
adapt in various ways.

2. What are the effects of Multinational Corporation in the Philippine economy?

Western businesses with Philippine offices may have a huge competitive advantage over
their non-remote office peers. The available tax cuts, rewards, and numerous other
benefits offered by the Philippine government make establishing an overseas office easier
than ever.
Create wealth and jobs around the world. Inward investment by multinationals creates
much needed foreign currency for developing economies. They also create jobs and help
raise expectations of what is possible.

3. Analyze socialism and capitalism in relation with the Philippine society which of these
economic systems would work in our country?
In my own opinion Philippines is a socialism kind of economic system because, the
primary concern of the socialist model of economics is an equitable distribution of wealth
An equitable distribution of wealth is meant to ensure that all members of a society have
an equal opportunity to attain certain economic outcomes. To achieve this, the state
intervenes in the labor market.

REFERENCES

Economist,(2006 January 12) Genghis the globalizer.

Chanda, N. (2007). Bound together: How trader, preacher, adventurer and warriors shaped
globalization. New Haven: Yale University.

LEARNING ACTIVITY

Name: LOURDELIZA BAUTISTA Year and Section : BSTM 3A

Facilitator: PRECIOUS R. ESTEBAN, LPT Date: 10/17/27

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The global market brought positive and negative effects through time. At this point,
market will be assessed through your own perspective provided that you already had a good
grasp of the different concepts in economic and financial globalization. This activity will help
you understand the benefits and harm of global economic process, structures, and technologies.
1. Listed below are the scenarios that have to do with economy. Discuss the major
impacts of these scenarios whether they are positive or negative (for you, for the
country, or for the Filipinos). The “case-by-case” column can be used. Justify your
answer.
Scenario Positive Negative Case by Case

A It is a negative for
me because it is
not right to
develop the
farmland into real
estate everyone of
us need food and
money for our
country, yes the
real estate can
give you money
but we should
think wisely we
should not be
selfish because of
the position that
we stand for,
think of the
people who have
economical needs.
Many Filipinos
are facing poverty
because of this
kind of
governance. We
should be
responsible
enough for the
people who need
some attentions to
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fullfil their needs
and give actions
to those who
suffer poverty.
B As a student I will
stand for what is
the best in my
own country we
should patronage
the products of
our nation. Make
sense to be able to
help our fellow
Filipino people.
C We should help
some of the
countries who
are suffering
from hunger.
Because helping
is the best way
to show what
kind of country
we are. So that
they can also
help us if we
need some help.
D No need to move
to another country
if you are
determined as a
person to be able
to find another
work. So will be
it. If you believe
in yourself that
our country can
sustain the need
of yours.
E It is case-by-case to me

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because it is the
government who should
be the one to explain
this. We do the things
they wanted for us to do
as an employee but that
company/gobernment
should be responsible
enough to make a
balance decision.

Scenario A: Agriculture is the main source of employment in your home province.

The government has recently decided to develop the farmland into real estate and
exclusive subdivisions in order to attract foreign investors to the country.
Scenario B. You decided to purchase a new shirt through an online shop based in
London.

Scenario C. The Philippine government is being pressured by current economic crisis

to import rice from Taiwan and other nearest countries in the region.
Scenario D. A multinational corporation decides to close. Unfortunately, your father
is one of its many employees whose work has been terminated. However, he could
still be employed if he were to accept the offer to move to another country.

Scenario E. the global financial crisis has affected the investment funds of your
mother that she can for her retirement.

2. How did you decide for each scenario? What are the pros and cons that you list down
before you came up with the final judgment?
Because some the scenarios that I have encountered I can relate them to what is
happening in worldwide you will see it in television/news.

THE GLOBAL INTERSTATE

The Global Interstate. The origin of the present-day concept of sovereignty can traced back to
the Treaty of Westphalia, which was asset of agreement signed in 1648 to end the Thirty Years’
War between the major continental power of Europe. After a brutal religious war between
Catholics and Protestants, the Holy Roman Empire, Spain, France, Sweden, and the Dutch
Republic designed a system that would avert wars in the future by recognizing that the treaty

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signer exercise complete control over their domestic affairs and swear not to meddle in each
other’s affair.
The Westphalia system provided stability for the nations of Europe, until it faced its first
major challenge by Napoleon Bonaparte. Bonaparte believed in spreading the principles of the
French Revolution-liberty, equality, and fraternity- to the rest of Europe and thus challenged the
power of kings, nobility, and religion in Europe. The Napoleonic Wars lasted from 1803-1815
with Napoleon and his armies marching all over much of Europe. In every country they
conquered, the French implemented the Napoleonic Code that forbade birth privileges,
encouraged freedom or religion, and promoted meritocracy in government service. This system
shocked the monarchies and the hereditary elites (dukes, duchesses, etc) of Europe, and they
mustered their armies to push back against the French emperor.
Anglo and Prussian armies finally defeated Napoleon in the Battle of Waterloo in 1815,
ending the latter’s mission to spread his liberal code across Europe. To prevent another war and
to keep their systems privilege, the royal powers created a new system that, in effect, restored the
Westphalia system. The Concert of Europe was an alliance of “great powers”- the United
Kingdom, Austria, Russia, and Prussia-that sought to restore the world of monarchical,
hereditary, and religious privileges of the time before the French Revolution and Napoleonic
Wars. More importantly, it was an alliance that sought to restore the sovereignty of states. Under
this Metternich, who was the system (named after the Austrian diplomat, Klemens von
Metternich, who was the system’s main architect), the Concert’s power and authority lasted from
1815 – 1914, at the dawn of World War I.
Despite the challenge of Napoleon to the Westphalian system and the eventual collapse
of the Concert of Europe after World War I. Present-day interstate system still have traces of this
history. Until now, states are considered sovereign, and Napoleonic attempts to violently impose
system of government in other countries are frowned upon. Moreover, like the Concert system,
“great powers” still hold significant influence grouping in the Un, the Security Council, has a
core of five permanent members, all having veto powers over the council’s decision-making
process.

GLOBAL GOVERNANCE IN THE TWENTY-FIRST

The term world governance is broadly used to designate all regulations intended for
organization and centralization of human societies on a global scale. The Forum for a new World
Governance defines world governance simply as "collective management of the planet".
Traditionally, government has been associated with "governing," or with political
authority, institutions, and, ultimately, control. Governance denotes a process through which
institutions coordinate and control independent social relations, and that have the ability to
enforce their decisions. However, authors like James Rosenau have also used "governance" to
denote the regulation of interdependent relations in the absence of an overarching political

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authority, such as in the international system. Some now speak of the development of "global
public policy".
Adil Najam, a scholar on the subject at the Pardee School of Global Studies, Boston
University has defined global governance simply as "the management of global processes in the
absence of global government." According to Thomas G. Weiss, director of the Ralph Bunche
Institute for International Studies at the Graduate Center (CUNY) and editor (2000–05) of the
journal Global Governance: A Review of Multilateralism and International Organizations,
"'Global governance'—which can be good, bad, or indifferent—refers to concrete cooperative
problem-solving arrangements, many of which increasingly involve not only the United Nations
of states but also 'other UNs,' namely international secretariats and other non-state actors." In
other words, global governance refers to the way in which global affairs are managed.
States are more likely to formally include civil society organizations (CSOs) in order to
avoid a potential legitimacy advantage of their counterparts and to enhance domestic legitimacy
if the following two conditions apply: first if they are more central to the global governance
network; and second, if other states formally include CSOs as well. Thus, while government
choices concerning whether to involve formally CSOs in global climate policy are obviously
driven to a considerable degree by domestic factors, the authors concentrate on international
network effects.
The definition is flexible in scope, applying to general subjects such as global security
and order or to specific documents and agreements such as the World Health Organization's
Code on the Marketing of Breast Milk Substitutes. The definition applies whether the
participation is bilateral (e.g. an agreement to regulate usage of a river flowing in two countries),
function-specific (e.g. a commodity agreement), regional (e.g. the Treaty of Tlatelolco), or global
(e.g. the Non-Proliferation Treaty). These "cooperative problem-solving arrangements" may be
formal, taking the shape of laws or formally constituted institutions for a variety of actors (such
as state authorities, intergovernmental organizations (IGOs), non-governmental organizations
(NGOs), private sector entities, other civil society actors, and individuals) to manage collective
affairs. They may also be informal (as in the case of practices or guidelines) or ad hoc entities (as
in the case of coalitions).
However, a single organization may take the nominal lead on an issue, for example the
World Trade Organization (WTO) in world trade affairs. Therefore, global governance is thought
to be an international process of consensus-forming which generates guidelines and agreements
that affect national governments and international corporations. Examples of such consensus
would include WTO policies on health issues.
The WTO is needed when establishing a regulatory guide in decision-making, the Global
Administrative Law is active in going hand-in-hand with WTO. They promote global principles
when involving accountability, transparency, and legitimacy when making decisions involving
more than one country or state. This is necessary to prevent future disputes between states.

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In short, global governance may be defined as "the complex of formal and informal
institutions, mechanisms, relationships, and processes between and among states, markets,
citizens and organizations, both inter- and non-governmental, through which collective interests
on the global plane are articulated, Duties, obligations and privileges are established, and
differences are mediated through educated professionals."
Titus Alexander, author of Unravelling Global Apartheid, an Overview of World Politics,
has described the current institutions of global governance as a system of global apartheid, with
numerous parallels with minority rule in the formal and informal structures of South Africa
before 1991.

THE EFFECTS OF GLOBALIZATION ON STATES AND GOVERNMENTS

State is commonly defined as a nation or territory considered as an organized political
community under one government. Government is the governing body of a state, nation, or
community. A government is thus the political administration of a state or country. A state is the
geographic unit that has a distinct constitution, fiscal system, and is sovereign (that is, self-
governing and independent from other states as recognized by them). It is in a state where a
government can exercise its powers.
One of the debatable issues relevant to the outcomes of globalization is the effect that it
has had on governments or state entities. What are the ways in which the government leaders,
and the state as a whole, have been fashioned by globalization economically and politically?
As of late, the question has been how globalization affects governments, as regards their
overall behavior, and more definitely, whether globalization limits state sovereignty. For
instance, with the upswing of globalization, some say that governments are far less able to
govern their own politics without considering the outside world. In the present day, it becomes
difficult to be economically isolated. As a result, some believe that today, “government matters
less and less in a global economy. Nation-states are simply other actors on the global stage rather
than its directors” (Osland, 2003: 142), and that “aggressive global production systems and
capital markets now occupy the ‘commanding heights’ of global development, forcing
governments on the defensive and pressuring them to deregulate, downsize, and privatize many
of the social management functions they assumed during the past century” (Yergin & Stanislaw,
2000).
Joyce S. Osland (PhD) of San Jose State University College of Global Leadership and
Innovation enumerates some of the pros and cons of globalization related to governments. The
positives include the following (2003):
1. Increased economic development benefits some governments.
2. Increased jobs and expanded infrastructure benefit some countries.
3. Transfer of modern management techniques into business sector
4. Greater interdependence among trading and investment partners may deter war.

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5. Proliferation of nongovernmental organizations (NGOs) to counter- balance decreased
governmental power
On the other hand, the negative effects of globalization on governments include these
(2003):
1. Power of multinational enterprises (MNEs) increased at the expense of government
power, sovereignty, and ability to regulate business.
2. MNEs externalize some of their costs to countries.
3. Competition for factories and foreign direct investment (FDI) result in too many
concessions to MNEs by some governments.
4. Some MNEs influence local government policy and threaten to leave if their demands
are not met.
5. MNEs pay fewer taxes to governments and incorporate where the tax rate is lowest,
depriving their own country of revenue.
6. Governments are pressured to reduce tax rates and decrease social benefits that may
affect stability.

INTERNATIONALISM
Internationalism in American foreign policy has had different meanings for nearly every
generation of citizens and diplomats. It has been associated with all forms of external contact
with the world, the relationships becoming more extensive and political with the passage of time.
As a foreign policy, it has usually been viewed as the antithesis of isolationism, and in that sense
it has involved political commitments or "entanglements" through multinational treaties as well
as membership in international organizations. In a broader context, it has also encompassed
official and unofficial non-political activities—economic, social, cultural, and scientific—usually
evidenced through affiliation with specialized international societies or agencies. Some
internationalists have thought in terms of a universal community, a broad brotherhood of people
with common concerns, needs, and aspirations that exists as a reality beyond the confines of
nation-states. In recent times, internationalism has taken on a new meaning under a doctrine of
responsibility, with the United States assuming the burden of "policeman of the world," both
unilaterally and multilaterally.

THE EARLY YEARS

Long before isolationism became an established policy in the nineteenth century, citizens
of the American colonies recognized that they could not live apart from the rest of the world.
They existed within an imperial system that involved them in numerous crises and four world
wars (Queen Anne's War, King William's War, King George's War, and the French and Indian
War), mostly related to trade and territories. Early Americans understood that international law
applied to them as they redefined their relationships toward their neighbors and their mother
country. William Penn reflected the cosmopolitan atmosphere when he drafted his Essay

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 The Contemporary World
Towards the Present and Future Peace of Europe (1693), in which he called for a congress of
states to promote stability. Evidence of a broad perspective also appeared in a colonial union, the
New England Confederation of 1643, and in the suggestion for joint action embodied in the
Albany Plan of 1754. Joseph Galloway's proposal for an Anglo-American council in 1774 also
expressed a cosmopolitan outlook. Such experiences, as well as an awareness of the Iroquois
League of the Five Nations, may explain why revolutionary leaders like Benjamin Franklin and
Thomas Paine spoke favorably of an international organization. Certainly, the Articles of
Confederation and the Constitution of 1789 revealed a general awareness that sovereign states
could combine to promote their interests.
Events during and after the Revolution related to the treaty of alliance with France, as
well as difficulties arising over the neutrality policy pursued during the French revolutionary
wars and the Napoleonic wars, encouraged another perspective. A desire for separateness and
unilateral freedom of action merged with national pride and a sense of continental safety to foster
the policy of isolation. Although the United States maintained diplomatic relations and economic
contacts abroad, it sought to restrict these as narrowly as possible in order to retain its
independence. The Department of State continually rejected proposals for joint cooperation, a
policy made explicit in the Monroe Doctrine's emphasis on unilateral action. Not until 1863 did
an American delegate attend an international conference. Even so, Secretary of State William H.
Seward reflected prevailing views by refusing to sign an 1864 multilateral treaty related to the
Red Cross. The United States did not subscribe to such a convention until 1882. Thereafter,
cooperation on economic and social matters seemed acceptable, but political issues, especially
those involving Europe, were generally avoided until the end of the century.

THE BEGINNINGS OF ORGANIZED INTERNATIONALISM

Although most citizens accepted the principle of isolationism, scattered voices
throughout the nineteenth century called for a more cooperative stance toward the world. As
early as the 1830s the American Peace Society, under the direction of William Ladd, sponsored
essay contests concerning international organization, and in 1840 Ladd utilized many of the ideas
in drafting his well-known Essay on a Congress of Nations. His proposal for both a political
body and a judicial agency gained considerable public notice through petition and educational
campaigns during the ensuing years. After Ladd's death in 1841, Elihu Burritt, a reformer known
as "The Learned Blacksmith," presented the congress of nations program to European pacifists
with such regularity that they referred to it as the "American idea."
The Civil War in America (1861–1865) and conflicts in Europe (1854–1856, 1870–1871)
undermined the peace movement, but a developing interest in the law of nations kept alive the
concept of global cooperation during the last third of the century. Several societies emerged to
promote the codification of international rules of behavior and to encourage the settlement of
disputes through arbitration by a third party. These were not new ideas, but leading citizens in

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 The Contemporary World
many nations around the turn of the twentieth century seized upon the arbitration concept to
guarantee a warless world.
This activity contributed substantially to the evolution of thought concerning an
international organization. As countries signed arbitration accords, men—and a few women—
began to think beyond such limited agreements. Agencies would be needed to implement the
treaties; laws would have to be codified. As John Westlake, an English law professor, observed,
"When we assert that there is such a thing as International Law, we assert that there is a society
of States; when we recognize that there is a society of States, we recognize that there is
International Law."
The arbitration settlement in 1871–1872 of the Alabama Claims, an Anglo-American
dispute over damages caused by Confederate cruisers, led to the signing of many other
arbitration agreements during the next four decades. Most were disputes involving monetary and
boundary claims and questions arising under treaty clauses; this discouraged pacifists, who
hoped to see accords calling for all controversies to be arbitrated. They rallied to promote their
goal, gaining public endorsement in the 1890s. The Lake Mohonk (New York) Conference on
International Arbitration, which began in 1895 and met annually through 1916, united American
civic, business, religious, and educational leaders in a quest to institutionalize arbitration.
Proponents recognized that the Senate would not subscribe to unlimited agreements, so they
agreed that matters involving national honor and vital interests be exempted. Their support
resulted in the Olney-Pauncefote Treaty with Great Britain in 1897, which called for the
arbitration of monetary and territorial differences. As expected, the Senate exempted disputes
affecting national interest and honor, and then insisted that the Senate have authority to exempt
from arbitration any dispute submitted for settlement. Even these safeguards did not satisfy the
extreme isolationists. After adding yet other reservations, the Senate refused to ratify the treaty.
These developments had a lasting impact upon American internationalist thought. First,
arbitration accords encouraged the exploration of cooperative methods of resolving disputes and
breached barriers that had kept statesmen from previously examining such subjects. Second,
these experiences warned internationalists that they must be cautious about proposals for a union
of nations. It was quite clear by the time that the United States fought Spain in 1898 that
Washington would not assume obligations that would weaken its sovereignty or jeopardize
interests deemed vital to its welfare. Finally, the advances in arbitration influenced discussions at
the first genuine international assembly of nations, The Hague Conference of 1899.

PROCESS QUESTIONS

Direction: Answer the following questions in a sheet of paper.

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 The Contemporary World
1. Examine the interaction between the nation-state and international organizations. Which
has the greatest impact on government?
It depends who has more power. If international interests drive the economy, the
international organization has more impact on the government. If citizens drive more the
economy then the nation-state.

2. Do civil society and INGO’s strengthen or undermine the role of the governments in
international relations? Why or why not?
They tend to hold governments to account - so it really depends on the policies of each
government. In some instances, they may add pressure to governments to adhere to some
progressive policies, for example, the environment, or consumer rights, or reducing
cruelty to animals, and in other cases do the opposite - for example in cases where two
counties have a border problem, civil society can actually make it more difficult for
politicians to compromise.

3. Are the civil society and other organizations truly separated from the government’s
actions and policies? In what ways can the state maintain its sovereignty amid
government?
Globalization literally means process of transparency in the world. It means every
country has opened the door of its economy and make it open to the world.
Once this Globalization process starts, it creates all kind of effects in individual nation
starting from basic things to large things , good impacts and bad impacts ,
homogenization at some extent and distortion at particular extent.

REFERENCES

Cox, R. (1994). Multilateralism and the democratization of world order.

In the globalization of world politics: an introduction to international
relations (1999). New York: Oxford University press.
Mann, M. (2007). Has globalization ended the rise and the rise of the nation-state?
Review of International Political Economy 4,(3),

20
 The Contemporary World

LEARNING ACTIVITY

Name: LOURDELIZA BAUTISTA Year and Section: BSTM 3A

Facilitator: PRECIOUS R. ESTEBAN, LPT Date: 10/17/21

Imaginary Interview
Further research/read on Giuseppe Mazzini, Woodrow Wilson, Karl Max, or Vladimir
Lenin. Conduct imaginary interview with one of them. In this interview, have your selected
figure answer the following questions:

1. What do you think of nationalism?

Nationalism is an ideology that emphasizes loyalty, devotion, or allegiance to a nation
or nation-state and holds that such obligations outweigh other individual or group
interests.
2. What is necessary for the development of an international order?
The project of international development involves the reordering of states (or at least
attempts to do so), it sits at the intersection between transnational forces and bounded
political entities and it is a manifestation of the will to order of powerful states. It
would seem then to be closely connected to practices of intervention. At times, the
practices of development agencies have taken on a more interventionist character, but
in recent years their relationship to many developing countries has taken on a more
intricate, subtle, and everyday form.
3. What do you think of the League of Nations?
The League of Nations was a international organization founded after the Paris Peace
Conference, 1919. The League's goals included disarmament, preventing war through
collective security, settling disputes between countries through negotiation diplomacy
and improving global welfare.
4. What is the role of revolution in internationalism?
Proletarian internationalism is closely linked to goals of world revolution, to be
achieved through successive or simultaneous communist revolutions in all nations.
According to Marxist theory, successful proletarian internationalism should lead to
world communism and eventually stateless communism.

THE CONTEMPORARY GLOBAL GOVERNANCE

GLOBAL GOVERNANCE

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 The Contemporary World
is understood as “…the way in which global affairs are
managed. As there is no global government, global governance typically involves a range of
actors including states, as well as regional and international organizations. However, a single
organization may nominally be given the lead role on an issue, for example the World Trade
Organization in world trade affairs. Thus global governance is thought to be an international
process of consensus-forming which generates guidelines and agreements that affect national
governments and international corporations. Examples of such consensus would include WHO
policies on health issues” (WHO, 2015).

GLOBAL INTERSTATE World politics today has four key attributes. First, there are
countries or states that are independent and govern themselves. Second, these countries interact
with each through diplomacy. Third, there are international organizations, like the United
Nations (UN), that facilitate these interactions, fourth, beyond simply facilitating meetings
between states, international organizations also take on lives of their own. The UN, for example,
apart from being a meeting ground for presidents and other heads of state, also has task-specific
like the world Health Organization (WHO) and the international Labor Organization (ILO).
What are the origins of this system? A good start is by unpacking what one means he/she
says a “country”, or what academics also call the nation-state. This concept is not as simple as it
seems. The nation-state is a relatively modern phenomenon in human history, and people did not
always organize themselves as countries. At different parts in the history of humanity, people in
various regions of the world have identified exclusively with units as small as their village or
their tribe, and at other times, they see themselves as members of larger political categories like
“Christendom” (the entire Christian world).
The nation –state is composed of two non-interchangeable terms. Not all states are
nations and not all nations are states. The nation of Scotland, for example, has its own flag and
national culture, but still belongs to a state called the United Kingdom. Closer to home, many
commentators believe that the Bangsamoro is a separate nation existing within the Philippines
nut, through their elites, recognizes the authority of the Philippine state. Meanwhile, if there are
states with multiple nations, there are also single nations with multiple states. The nation of Kore
is divided into North and South Korea, whereas the “Chinese nation” may refer to both the
People Republic of China) the mainland) and Taiwan.

INTERNATIONAL ORGANIZATION
An international organization (intergovernmental organization) is an organization
established by a treaty or other instrument governed by international law and possessing its own
international legal personality, such as the United Nations, the World Health Organization and
NATO. International organizations are composed of primarily Member states, but may also
include other entities, such as other international organizations. Additionally, entities (including
states) may hold observer status.

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 The Contemporary World
 The first and oldest intergovernmental organization - being established employing a
treaty, and creating a permanent secretariat - is the International Telecommunication
Union (founded in 1865). The first general international organization—addressing a
variety of issues—was the League of Nations. The United Nations followed this model
after World War II.
 The role of international organizations is helping to set the international agenda,
mediating political bargaining, providing a place for political initiatives and acting as
catalysts for the coalition- formation. They facilitate cooperation and coordination among
member nations.
 International organizations typically have member states from the whole world, however
in some cases organizations have geographic limitations, such as the European Union,
African Union and NATO. The United Nations also has regional organizations, such as
UNECE and UNECA.
 The oldest regional organization is the Central Commission for Navigation on the Rhine,
created in 1815 by the Congress of Vienna.
 The United Nations organizes its work into agencies, such as United Nations Relief
Works Agency, which are generally considered as international organizations in their
own right.
 Additionally, the United Nations has specialized agencies which are organizations within
the United Nations System, that have their member states (often nearly identical to the
UN Member States) and are governed independently by them, examples include
International Organizations that predate the UN, such the International
Telecommunication Union, and the Universal Postal Union, as well as organizations that
were created after the UN such as the World Health Organization (which was made up of
regional organizations such as PAHO that predated the UN).
 International Organizations are sometimes referred to as Intergovernmental Organizations
(IGOs), to clarify the distinction from International nongovernmental organizations
(INGOs), which are non-governmental organizations (NGOs) that operate internationally.
These include international a non-profit organization such as the World Organization of
the Scout Movement, International Committee of the Red Cross, Médecins Sans
Frontières, and the World Economic Forum.

UNITED NATIONS
The United Nations (UN) is an intergovernmental organization that aims to maintain
international peace and security, develop friendly relations among nations, achieve international
cooperation, and be a centre for harmonizing the actions of nations. It is the largest, most
familiar, most internationally represented and most powerful intergovernmental organization in
the world. The UN is headquartered on international territory in New York City, with its other
main offices in Geneva, Nairobi, Vienna and The Hague.

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 The Contemporary World
The UN was established after World War II with the aim of preventing future wars,
succeeding the ineffective League of Nations. On 25 April 1945, 50 governments met in San
Francisco for a conference and started drafting the UN Charter, which was adopted on 25 June
1945 and took effect on 24 October 1945, when the UN began operations. Pursuant to the
Charter, the organization's objectives include maintaining international peace and security,
protecting human rights, delivering humanitarian aid, promoting sustainable development, and
upholding international law. At its founding, the UN had 51 member states; this number grew to
193 in 2011, representing almost all of the world's sovereign states.
The organization's mission to preserve world peace was complicated in its early decades
by the Cold War between the United States and Soviet Union and their respective allies. Its
missions have consisted primarily of unarmed military observers and lightly armed troops with
primarily monitoring, reporting and confidence-building roles. UN membership grew
significantly following widespread decolonization beginning in the 1960s. Since then, 80 former
colonies have gained independence, including 11 trust territories that had been monitored by the
Trusteeship Council. By the 1970s, the UN's budget for economic and social development
programs far outstripped its spending on peacekeeping. After the end of the Cold War, the UN
shifted and expanded its field operations, undertaking a wide variety of complex tasks.
The UN has six principal organs: The General Assembly; the Security Council; the
Economic and Social Council (ECOSOC); the Trusteeship Council; the International Court of
Justice; and the UN Secretariat. The UN System includes a multitude of specialized agencies,
such as the World Bank Group, the World Health Organization, the World Food Programme,
UNESCO, and UNICEF. Additionally, non-governmental organizations may be granted
consultative status with ECOSOC and other agencies to participate in the UN's work. The UN's
chief administrative officer is the Secretary-General, currently Portuguese politician and
diplomat António Guterres, who began his five year-term on 1 January 2017. The organization is
financed by assessed and voluntary contributions from its member states.
The UN, its officers, and its agencies have won many Nobel Peace Prizes, though other
evaluations of its effectiveness have been mixed. Some commentators believe the organization to
be an important force for peace and human development, while others have called it ineffective,
biased, or corrupt.

PROCESS QUESTIONS

Direction: Answer the Questions briefly in a sheet of paper.

1. What of the Westphalian system can still be felt at this and age? In what sense has the
world gone beyond the Wesphalian system?

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 The Contemporary World
There are no remnants to be felt if the system never changed. Many answers so far do not
seem to grasp the significance of the Peace of Westphalia at all, unfortunately.
The Peace of Westphalia dislodged the papacy from power and ushered in the era of
secular states. At the time, it seemed like the best way to avoid war. Not only did it create
modern international relations as we know it but also what the states themselves were.

2. Do you think international erodes the sovereignty?

For me the answer is NO, because each states has its own governing bodies, policies and
rules. No other states can dictate or eve influence a particular states. Internationalization
is a set of standard which can be applied to a particular products or business.

3. Why the global governance multi-faced?

The system of global governance is multi-faceted because it encompasses several global
areas of governance including security, justice, human rights, development, trade, and
finance.

4. How do international organizations take on “lives of their own”?

When states establish an international organization (IO), they create an institution with a
life of its own. In doing so, states risk the institution becoming a monster and acting
contrary to their interests. In contrast to Frankenstein, however, states are aware of this
risk and are able to guard against it.

5. What challenges faced by the United Nations in maintaining global security?

threats from poverty, disease, and environmental breakdown (the threats to human
security identified in the Millennium Development Goals) threats from conflict between
states. threats from violence and massive human rights violations within states. threats
from terrorism.

REFERENCES
Cox, R. (1994). Multilateralism and the democratization of world order.
In the globalization of world politics: an introduction to international
relations (1999). New York: Oxford University press.
Mann, M. (2007). Has globalization ended the rise and the rise of the nation-state?
Review of International Political Economy 4, (3).

25
 The Contemporary World

LEARNING ACTIVITY

The United Nation Peacekeeper:

Re- enacting their Roles, Responsibilities and Challenges
Name: LOURDELIZA BAUTISTA Year and Section BSTM 3A
Facilitator: PRECIOUS R. ESTEBAN, LPT Date: 10/17/21

Research in Google what the United Nations peacekeeper are, the countries that send
these peacekeeper, where they have been involved in the last 50 years. After familiarizing
yourself with the UN’s peacekeeping function, you will be ready to deal with a crisis. Read the
scenario below.
Countries A and B have been at war against each other for 50 years over a big of land
that is located in their borders. The land consists of rainforest, suitable farmlands, and rich
mineral resources. It is also suspected to have oil reserves underground.
The community that lives in this area is composed of people who have never been clear
about their national loyalties, for the simple reason that they do not recognize these boarders.
They have been living in the area long before countries A and B had national territories. They,
therefore, would like to be left alone, to “go” back and forth” between the two boarders.
Countries A and B, however, want to exploit the resources of this borderland. They stated
supporting leaders in this community, secretly at first, but later on with open economic
assistance. This association created tensions within community that soon worsened into open
factional rivalries between its leader.
The factional rivalry started over how assistance was to be shared, and then moved to
competition over elected positions. The rivalry took a turn for the worse when countries A and B
Began supplying their allies with arms and military training, especially after both realized the
security problems this borderland can cause.
It did not take before conflict between the two factions came out in the open. This “mini-
war” spread and seriously affected the community, dividing families and pitting friends and
relatives against each other.
Eventually, exhausted by the war (countries A and B began to realize how much
resources they wasted in this war), the protagonists agreed to a temporary truce. They also asked
the help of the United Nation in terms of bringing in a peacekeeping force to stand between the
two sides, and negotiate how to turn the truce into a lasting peace

26
 The Contemporary World

TEST YOURSELF

Name: LOURDELIZA BAUTISTA Year and Section: BSTM 3A

Facilitator: PRECIOUS R. ESTEBAN, LPT Date: 10/17/21

Questions and Answers

1. Most trading on exchange rate markets is related to _______________ and ______________.
A. International exchange and management of the risks of possible future changes in
exchange rates.
B. International investments and management of the opportunities available with possible
future changes in exchange rates.
C. Domestic investments and management of the risks of possible future changes in
exchange rates.
D. International investments and management of the risks of possible future changes in
exchange rates.

2. The 3 Factors are New Global ___________, National ____________ to Globalization, and
Changes in _________.

3. A high inflation rate means that your currency buys less.

A. True B. False
4. There are two main ways to deal with floating exchange rate risks. What are they? (Select
two)
A. Limit the number of transactions you do that involve long term commitments that
would reduce the risks to some extent
B. Increase the number of transactions you do that involve long term commitments that
would reduce the risks to some extent
C. Use financial contracts that would hedge some of the risks with floating exchange
rates
D. Use fixed exchange rates that would hedge some of the risks with floating exchange
rates
5. The overwhelming majority of trades in 2007 were the exchange of Euro's.
A. True B. False
6. What is the main difference(s) between microeconomics and macroeconomics?
Macroeconomics seeks to find a general perspective, at a national level, while
microeconomics focuses on the individual's perspective, at a consumer level.
7. Please define 2 economic indicators.
The Consumer Price Index (CPI) Gross domestic product (GDP) Unemployment figures.
Price of crude oil.

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 The Contemporary World
8. GATT stands for ____________________.
A. General Agreement on Tariffs and Tencent
B. General Arithmetic on Tariffs and Trade
C. General Agreement on Tariffs and Trade
D. General Agreement on Terrible Trades
9. All of the following are skills sets economists predict will be most valuable in the future
global economy except?
A. Sales C. Bureaucratic
B. Investment D. Service E. Computer
10. Please give an example of the law of supply and demand.
These are examples of how the law of supply and demand works in the real world. A
company sets the price of its product at $10.00. No one wants the product, so the price is
lowered to $9.00. Demand for the product increases at the new lower price point and the
company begins to make money and a profit.
11. Scarcity is the problem of infinite human needs and wants, in a world of finite resources.
12. Many countries in the late 1940s realized that the reductions in world trade in wartime and
during the Depression had hurt their economies
A. True B. False
13. An example of a change that significantly reduced the cost of transportation of goods
is_______________.
A. Health Regulations C. Barriers to trade
B. Guns D. Containerization
14. The countries of the world could not and did not want to drop the trade barriers of the 1930’s
that pushed countries apart such as heavy tariffs.
A. True B. False
15. All of the following are examples of the effects of globalization except
A. A department store put's items on lay away
B. A McDonald's open up in India
C. An American fashion designer uses cultural ideas from Chinese pop to make clothes
D. It is less costly to ship goods from China than to make them in Europe
16. The US and other major currencies of the world use _______ exchange rates.
A. Fixed B. Soft-Pegged C. Self- Regulated D. Floating
17. A strong currency means you can __________________________________.
A. Buy less imports so imports decrease but the foreign currency that exporters earn is
worth more so exports tend to rise.
B. Buy more imports so imports rise but the foreign currency that exporters earn is
worthless so exports tend to fall.
C. Buy less imports so imports fall but the foreign currency that exporters earn is
worthless so exports tend to fall.

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 The Contemporary World
D. Buy more imports so imports rise but the foreign currency that exporters earn is worth
more so exports tend to rise.
18. A common issue with China in the first decade of the 21st century is that china has fixed its
exchange rate at a fairly low level which is helping its exports but also leading to humungous
and unsustainable large trade surpluses.
A. True B. False
19. You can always keep the foreign exchange value of your currency rising as long as you are
willing to keep accumulating foreign exchange reserves.
A. True B. False
20. What is an economy?
A. The factors of production, exchange, distribution, and consumption of goods and
services of a country or other area.
B. The factors of production, exchange, distribution, and consumption in a country or
other area.
C. The realized social system of production, exchange, distribution, and consumption of
goods and services of a country or other area.
D. The realized political system of production, exchange, distribution, and consumption
of goods and services of a country or other area.
21. GDP is defined as the total market value of all final goods and services produced within the
country in a given period of time (usually a calendar year).
A. True B. False
22. Economists typically use “purchasing power parity” (PPP) exchange rates, which seek to
measure the same economic productivity.
23. GDP =
A. GDP = corporate spending+ government investment + government spending +
(exports − imports)
B. GDP = consumption + gross investment + government spending
C. GDP = consumption + government investment + government spending +
D. GDP = consumption + gross investment + government spending + (exports − imports)
24. Why do nations trade?
Nations trade because they gain by doing so. The principle of comparative
advantage states that each country should specialize in the goods it can produce
most readily and cheaply and trade them for those that other countries can produce
most readily and cheaply.

25. What is the law of supply and demand?

The law of supply and demand is a theory that explains the interaction between the sellers
of a resource and the buyers for that resource.

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 The Contemporary World
26. Discuss the three key dimensions of neoliberal economic dimensions of globalization:
privatization, liberalization, and deregulation. What are they and what is one example of each of
them? Do these measures appeal to you? Why or why not?
Privatization occurs when a government-owned business, operation, or property becomes
owned by a private, non-government party. Note that privatization also describes the
transition of a company from being publicly traded to becoming privately held. This is
referred to as corporate privatization.
Example: Before 2012, the state of Washington controlled all sales of liquor within the
state, meaning that only the state could operate liquor stores. This policy allowed the state
to regulate how and when liquor was sold, and to collect all revenue from liquor sales
within the state. However, in 2012, the state moved to privatize liquor sales.
Trade liberalization is the removal or reduction of restrictions or barriers on the free
exchange of goods between nations. These barriers include tariffs, such as duties and
surcharges, and nontariff barriers, such as licensing rules and quotas.
Example: NAFTA) was signed on Dec. 17, 1992, by Canada, Mexico, and the United States.
It entered into force on Jan. 1, 1994.1 The agreement eliminated the tariffs on products
that were traded among the three countries. One of NAFTA's goals was to integrate
Mexico with the highly developed economies of the United States and Canada, in part
because Mexico was considered a lucrative new market for Canada and the United States.
The three governments also hoped that the trade deal would improve Mexico's economy.
Deregulation is the removal or reduction of government regulations in a specific industry.
The goals are to allow industries to operate businesses more freely, make decisions
efficiently, and remove corporate restrictions.
Example: In the U.S., banks became deregulated due to the repeal of the Glass-Steagall Act
in 1999. The law was initially introduced in 1933 as a way to prevent banks from using
funds and deposits from their clients to buy risky securities for fear of losing their clients’
money.
27. What forces combined first to create Europe’s rapid rise to global power in the 1500s and
then undermined European dominance in the twentieth century? What intellectual contradictions
existed within European imperialism that challenged it as a political force?

main power back in 1500 was the central american gold, which eventually led to the
formation of supra-national finance capital in the continent, then moved to london,
financing the european colonialism

main power in 20th century was supra-national finance capital, moved to new york,
financing the american century

main power in 21st century is still supra-national finance capital, which moved to shanghai,
financing the a.i., the industry 4.0, i.e. the belt and road.

Many civilizations in history grew into great empires through the policy of imperialism. ... In
the late 1800's, economic, political and religious motives prompted European nations to
expand their rule over other regions with the goal to make the empire bigger.
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 The Contemporary World

28. The UN has sent peace-keeping troops to nations in which they are not allowed to use force.
This is an example of both the power and the weakness of the United Nations. In what ways is
the United Nations a useful organization to resolve global issues? Identify three ways in which
its charter has limited its effectiveness.

All of the funds, programmes, specialized agencies, and other entities of the UN system
have their own budget, mandate, leadership, and headquarters. They have regional and
local offices in all the main geographic areas of the world, as does the UN.

They... Maintain International Peace and Security.Protect Human Rights.Deliver

Humanitarian Aid.Support Sustainable Development and Climate Action.Uphold
International Law.

29. Two trends of political globalization have been the evolution of human rights as a concept
and the spread of democratization. What has been the context in which these ideals have gained
power? Do you think that these ideologies will continue to expand into the future? Why or why
not?

Gender and diversity also play an important part in changing political attitudes, while
predicting voting behaviour is becoming ever harder to do accurately, as the methods and
technology used by younger generations to engage with politics differ hugely from more
traditional approaches. Significant human rights issues included: cases of cruel, inhuman,
and degrading treatment or punishment; arbitrary arrest and detention, including of activists
and journalists; infringements on citizens’ privacy rights; serious restrictions on free
expression and the press, including criminalization of libel, censorship, and internet site
blocking; substantial restrictions on freedom of association and freedom of peaceful
assembly; serious incidents of official corruption…. Impunity remained widespread, although
the government took some limited steps to investigate, prosecute, and punish officials who
committed abuses.

30. Which of the following can create ethical dilemmas between corporate managers and
stockholders?

a. Auditors b. Board of directors c. Agency relationship d. Venture Capitalist

RUBRICS FOR ASSESSING STUDENT ACTIVITY AND EVALUATION

Name: LOURDELIZA BAUTISTA Year and Section: BSTM 3A

Facilitator: PRECIOUS R. ESTEBAN, LPT Date of Submission: 10/17/21

Assessment
A. Clarity of Explanation
_____ 3. Explanation is tightly focused and contains accurate information.
_____2. Explanation is adequately focused on the topic.
_____1. Explanation lacks of relevance or focused
_____0. Explanation is not clear
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 The Contemporary World
Total ________
B. Level of Understanding
_____ 3. The students demonstrate deep understanding of the topic.
_____ 2. The students demonstrate understanding of the topic.
_____ 1. The students strive to demonstrate understanding of the topic.
_____ 0. The students do not understand the topic.
Total _________
C. Logical Sequence of the Processes/ Procedure
_______3. Ideas are presented in logical order with effective transitions between
major ideas.
______ 2. Ideas are in logical with adequate transition between most major ideas.
_______1. Some ideas are not presented in proper order.
_______0. Ideas are not presented in proper order transition.
Total ________

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