Global ECONOMY

Group Actvity
• Are societies in the world becoming more

similar (homogenous) or more different
(heterogenous)
• What do you think are the advantages and
disadvantages of homogenization of
culture? How about heterogenization?
Assignment
• Define the following
▫ Cultural differentialism
▫ Cultural hybridization
▫ Cultural convergence
▫ Deterritorialization Culture
Lesson 3: The Globalization of
World Economics
Dynamics of Local and Global Culture
Three perspectives on global cultural flows;
Cultural
Differentialism
Cultural
Hybridization
Cultural
Convergence
Cultural Differentialism –
emphasize the fact that cultures are
essentially different and are superficially
affected by global flows
The interaction of cultures is deemed to contain the

potential for “catastropic collission”
Accdg. to Samuel Huntington’s theory

“increasing interaction among the different
“civilizations” would lead to intense clashes
especially the economic conflict between the
Western & Sinic civilizations.
Critique: Potrayal of Muslims as being “prone to violence”

Glocalization or the interpenetration
of the global or local resulting in
unique outcomes in different
geographic areas.
Globalization is considered to be a
creative process which gives rise to
hybrid entities that are not reducible
to either the global or local
Cultural
Hybridization –
emphasizes the
integration of local and
global cultures.
Cultural Convergence – It
stresses homogeneity introduced
by globalization.
Cultures are deemed to be radically

altered by strong flows, while
Cultural Imperialism happens when
one culture imposes itself on and
tends to destroy at least parts of
another culture
Critique: Deterritorialization of culture

which difficult to tie culture to specific
geographic point of origin.
GLOBAL OF WORLD ECONOMY
Eight Millennium Development Goals(UN
1990 /Target: 2015)
Eradication of Extreme
Improving Maternal Health
Poverty and Hunger
Achieving Universal primary Combating diseases like

Education HIV/AIDS and Malaria
Promoting Gender Equality Ensuring Environment

and Women Empowerment Sustainability
Global Partnership for

Reducing Child Mortality
development
Defining “Extreme Poverty”
“is a condition characterized by severe

deprivation of basic human needs
including food, safe drinking water,
sanitations facilities, health, shelter,
education and information” –
(UN,2015)
RESULTS OF 2015 UN PROGRAM
• 836 M still live in extreme poverty but it is down
from 1.9B.
• World Bank predicted that by 2030 the number
of people living in extreme poverty could drop to
less than 400 million.
• People lifted out from extreme poverty are still
poor and being poor comes with serious
problems, from diseases to lack of water.
• Inequality is rampant.
•Why extreme poverty
falling?
• Better access to Education
• Humanitarian Aid
• Policies of international organization
• ECONOMIC GLOBALIZATION
ECONOMIC GLOBALIZATION
-“historical process representing the result
of human innovation and technological
progress” – International Monetary Fund (IMF)
• Characterized by the increasing integration of economies

around the world through the movement of goods,
services and capital across borders.
ECONOMIC GLOBALIZATION
-Refers to the increasing interdependence of
world economies as a result of the growing scale
of cross-border trade of commodities and
services, flow of international capital, and wide
and rapid spread of technologies - UN
• It reflects the continuing expansion and mutual

integration of market frontiers, and is an irreversible
trend for the economic development in the whole world
at the turn of the millennium
Gross Domestic Product-IMF
GDP in 1980 GDP in 2007
42.1% 62.1%
Increased in trade also means that investments
are moving all over the world at faster speeds.
Foreign Direct Investments -
UNCTAD
1982 2015
US$ 57B US$ 1.76T
It represent a dramatic increase in global trade

in the span of few decades.
Factors of rapid Increase in Investments
• Increase speed and frequency of trading.
• Supercomputers can execute millions of stock

purchases and sales between different cities in a
matter of seconds through the porcess called
HIGH –SPEED TRADING.
Two Types of Economies
1. PROTECTIONISM TRADE
2. LIBERALIZATION
PROTECTIONISM
• “A policy of systematic government
intervention in foreign trade with the
objective of encouraging domestic
production”.
• The encouragement involves giving preferential
treatment to domestic producers and
discriminating against foreign competitors.
• Protectionism usually comes in the form of
quotas and tariffs.
Example of Protectionism
• A pen that costs $1 in Country A and

in Country B, it would be given five-
dollar tariff.
• The pen would become $6 in
Country B
Background of Protectionism
• It was practiced during the Mercantalist Era
(16th-17th Century ).
• The Great Depression of 1929 marked the peak
of Protectionism
• USA, China and Japan accused of practicing this
type of economy
LIBERALIZATION(free trade)
• Free trade agreements and technological
advances in transportation and communication
mean goods and services move around the world
more easily than ever.
Example of Liberalization
• Mobile phones
“single most transformative
technology”-Jeffrey Sachs (Economist)
*It gives an access to banking & payment systems and
better access to education and information
*Economists call this LEAPFROGGING –the idea that
countries can skip straight to more efficient and cost-
effective technologies that were not available in the past.
Fair Trade
• As defined by International Fair Trade
Association , is the “concern for the social,
economic and environmental and
environmental well-being of
marginalized small producers.
• It aims for a more moral and equitable global economic

system.
• It is also concerned with protection of workers and
producers, establishment of more just prices, engagement
in environmentally sound practice and sustainable
production and promotion of safe working environment.
Group Activity 1: Follow the Product

Global ECONOMY

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Group Actvity

• Are societies in the world becoming more

The interaction of cultures is deemed to contain the

Accdg. to Samuel Huntington’s theory

Critique: Potrayal of Muslims as being “prone to violence”

Cultures are deemed to be radically

Critique: Deterritorialization of culture

Achieving Universal primary Combating diseases like

Promoting Gender Equality Ensuring Environment

Global Partnership for

“is a condition characterized by severe

• Characterized by the increasing integration of economies

• It reflects the continuing expansion and mutual

US$ 57B US$ 1.76T

It represent a dramatic increase in global trade

• Supercomputers can execute millions of stock

• A pen that costs $1 in Country A and

• It aims for a more moral and equitable global economic

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