Contemporary

World
INTRODUCTION TO GLOBALIZATION
DEFINING GLOBALIZATION
Prepared by:
Danrive B. Archival
John Lloyd S. Aca-ac
 CONTENTS OF THIS LESSON
Identify what is Globalization.

The World-Economy Theory (Hyperglobalisationism).

The Regional Bloc Theory (Global Scepticism).

The Third Way Theory (Tranformationalism).

The process of globalization.

The third group of theoreceticians.

Learning Objectives
At the end of the course, the students
should be able to:

Differentiate the competing

conceptions of globalization;

Identify the underlying philosophies of

the varying definitions of globalizations;
and

Agree on a working definition of

globalization for the course.
 What is Globalization?
Globalization is the word used to describe the growing interdependence of the world’s
economies, cultures, and populations, brought about by cross-border trade in
goods and services, technology, and flows of investment, people, and information.
Countries have built economic partnerships to facilitate these movements over
many centuries. But the term gained popularity after the Cold War in the early
1990s, as these cooperative arrangements shaped modern everyday life. This
guide uses the term more narrowly to refer to international trade and some of the
investment flows among advanced economies, mostly focusing on the United
States.
The wide-ranging effects of globalization are complex and politically charged. As
with major technological advances, globalization benefits society as a whole,
while harming certain groups. Understanding the relative costs and benefits can
pave the way for alleviating problems while sustaining the wider payoffs.
Globalization, a word that evokes images of a world where goods, services, capital, and
information flow across seamless national borders and the newest buzzword in the popular.
In this world, choices about where to produce, shop, invest, and save are no longer confined
to national boundaries, but are oriented globally. Some analysis speculate that globalization
has blurred counties’ economic destinctions creating a “borderless world” in decision
making without reference to national boundaries. For example, in describing the sphere in
which the major industrial economies operate, Kenichi Ohmae claims that “national borders
have effectively disappeard and together with them, the economic logic that first made them
useful demarcation lines.”
What causes globalization?
Three ways to determine
globalization:

1. It can be described as factors of production intensification, facilitated

by modern means of transport and communication.
2. In a way that events in one part of the world have immediate effects
on distant locations, globalization can also be defined as a
compression of time and space.
3. To understand globalization as a material power historical structure.
 Globalization

Globalization is viewed by hyperglobalists as a legitmate and irrepressible historical process leading to a

market-based and supranational institutions-based world order. In the development of civilization,
globalization presents a new era, without precedent in the course of human history. This process is called
gradual and socially desirable. It is also pointed out that the intensity and dynamics of current economic
changes lead to the changes in the core social action framework(Held, McGraw, 2007).
Hyperglobalists conceive globalization as a process; in other words, a variety of various cultures withdraws in
the social pattern, cultural framework.
The process of globalization (Giddens, Scholte, Castells, Wallerstein) as an assessment of its effects progressivism.
But they do not accept globalization’s skeptical thesis either. For them, the certain fundamental changes
brought about by globalization in the organization of society are the growing overall integration and
acceleration of socio-economic dynamics through space and time “compression.” Their approach, however, is
multidimensional, economic. In this sense, Anthony Giddens, a modernist sociologist, sees globalization as a
phenomenom shaped by “modern” capitalist forces; politics, military power, and industrialism (Giddens,
1990). According to Giddens, spreading dimensions of modernity to all countries in the world is identified as
the globalization process. Globalization is in character, but subjects to cycles and probabilism; it represents a
capitalist development.
The third group of theoreticians who expressed skepticism about globalization’s ubiquity, characterized by criticism
of globalization. In that sense, they underline that there is no unprecedented level of integration and openness in
today’s economy. International trade and capital flows were more critical relative to GDP in the pre-1914 period
(wave of globalization) the contemporary economy (Hirst, Thompson, 2003). Also, instead of globalization
concerning the hierarchy and the nation-state, they emphasize the promotion of cross border activity. The creation of
regional blocks as the key feature of the world economy suggest that the world economy is less integrated that it was
in the late 19’th century (Held, McGraw, 2007). Within this direction of thought, of the world are also present,
resistance within individual cultures, which in the end can lead to a conflict of civilations (Huntington, 1999). It
consists of three theoretical guidelines (Miletic, 2007): A legitimate process inherent in the dynamics of socio-
economics. Globalization is an understandable result of socio-economics, led by technology logic and capital
accumulation. Determinism is evident in this type of approach.
Conjectural explanation of globalization considers the consequence of unification of techno-economic tendencies with specific historical
conditions and policies, which determine its character.
Social constructivist explanations are more interested in the origin of ideas about globalization, and how they became part of scientific and
everyday discourse. The process was constructed socially and ideologically by its classification under the concept of globalization. In this
way, by influencing actors’s awareness, the idea globalization itself becomes the initiator of the further process of global integration in a
certain sense (Miletic, 2007).
A borderless society… Globalization has made economically insignificant national borders. It has created a world where it is possible to
move financial capital, production activities and labor force to other territories promising better opportunities. Hyerglobalism includes
globalization as a unique, lawful and progressive process of global economy unification--- the outcome-based process of uncertainly, its
multidimensionality. Skeptics are challenging globalization’s effects, ubiquity, and sustainability by the world economy. The world economy,
through trade, investment, an financial flows. Also, characterized by a tendency towards unification, replacements of the existing
heterogenous cultural patterns of global markets. Support to neoclassical pictures of the atomistic economy, based on the principles of
individualism and maximizing behavior. Perfect mobility of factors of production and modern technology, as well as the growing influence of
individualistic ideology, create the impression of eligibility approach to the economy. However, such a conclusion is premature. Despite
obvious unification impacts of globalization, the modern economic system of hierarchy, at every level, such as. Various models of economic
policy. Among them, the most influential is the Anglo-American, German and Japanese model of organizing economic activity. Their
institutional versatility ensures that the process of globalization is homogenized as a crucial feature. It has a gradualist character to transform
existing successful models of capitalism in globalization conditions. Adjustment of successful models takes place through a combination of
different forms of institutional change, ensuring consistency of the existing institutional order.
10 Benefits of Globalization You Probably Didn’t
Know
•  Globalization Allows Access To New Cultures
• Globalization Is Needed For Spreading Technology and Information
Across Borders
• Globalization Helps With Economic Growth
• Globalization Ensures Better Job Opportunities For People
• Globalization Lowers The Costs of Commodities
• Globalization Allows People Stick To Their Roots
• Globalization Erases The Borders
• Globalization Brings Better Acceptance Of Self
• Globalization Makes Us More Productive
• Globalization Promotes Cultural Diversity
The World-Economy
Theory
Hyperglobalisationism
• The process by which capitalist world-system spreads across the entire globe
• The global marketplace has become so advanced and integrated that the nation-state is
becoming obsolete.
a. Good thing: the market is more rational than governments could ever be.
b. Bad thing: corporate power is less compassionate then governments (most of which are
accountable than the population through elections)
• Nearly reached geographical limit during the 1900s
• Completion of a process begun late in the 1400s and early 1500s by European explorers
• World-economy comprises of a single world market, and a single, mobile, labor force
• Core Countries: higher-skill, capital-intensive production, active armed forces, consume much
of the profits (e.g., U.S., Britain, France, Germany, Japan)
a. Peripheral Countries: low-skill, labor-intensive production, and extraction or raw materials,
weaker armed forces, weaker economy (e.g., Canada, China, Australia)
b. Semi-peripheral Countries: less dependent on the core than the peripheral areas, more
diversified economies and stronger military forces than the peripheral countries (e.g., poorer,
recently independent colonies)
 The Regional Bloc Theory
(Global Scepticism)
• Disagree strongly with hyperglobalists
• Single world market exists
• The growing internationalization of trade and investment is the growth of regional economic blocs (e.g.,
European Union)
• The growth of regional trading blocs: benefited some countries (mainly those within the blocs) and
disadvantaged others
• It is not a reality, but a strategy to extend capitalism: violent protest against globalization occur
• No single government or institution guiding the process
• Capitalism is a worthwhile framework of reference
• Unquestioning acceptance of capitalism: the root of the problem
• Capitalism emphasizes competition and financial efficiency over care for oppressed and disempowered
people
 The Third Way Theory (Transformationalism)
• Seeks to find a relationship between economic processes occurring at the global and
local scales
• Known as a transformationalism view because it looks for way of transforming the
powers of the nation-state to cope with pressures of globalization
• Does not simplify focusing on the global forces that reduce the powers of the nation-
state
• Challenge existing institutions to reform/restructure, or encourage greater local
autonomy
• Linked to political agenda (specially Europe)
• Think globally, act locally
• Maintain diversity in the face of economic forces that promote uniformity
For more information about globalization,
visit this website.

https://
www.piie.com/microsites/globaliza
tion/what-is-globalization
Do you have any questions?
 Activitiy
Match the items in Column A with those in Column B. Write the letter of the correct answer on
the blank before the number.
____1. The driving force of globalization speed up its effects and contributes
to the essential transformation of the functioning of economic systems. c. Globalization
____2. A mega-phenomenon that is shaping today’s trend.
____3. Defined globalization as reordering of the framework of human action. d. Transformationalists
____4. Believe that combined forces of modernity drive globalization.
____5. Sociologist of modernism who considers globalization as a phenomenon e. Malcolm Waters
shaped by forces of “modern” capitalism.
____6. Believe that single government or institution guiding the process and f. Anthony Giddens
that capitalism is a good framework of reference.
____7. Perceive globalization as a lawful process, inherent to a socioeconomic g. Skeptics
dynamics.
____8. Considers the consequences of unification of techno-economic h. Conjectural Explanation
tendencies with specific historical conditions and policies, which
determine its character. i. Structural Explanations
____9. They are more interested in the origin of ideas about globalization, and
how they became part of scientific everyday discourse. j. Social Contructivist
____10. He understood globalization as importance and where people are
becoming increasingly aware that they lose importance.

a. Hyperglobalist

b. Technology
 Answers:
1. B
2. C
3. A
4. D
5. F
6. G
7. C
8. H
9. I
10. E