Sir Ralphy TCW notes 2022 Complete!!

GLOBALIZATION The development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets Manfred Steger Who defined globalization as "The expansion and intensification of social relations and consciousness across world-time and across world-space" ECONOMIC IMPERIALISM One nation assuming economic power or influence over others 1. Ethnoscapes 2. Technoscapes 3. Mediascapes 4. Financescapes 5. Ideoscapes Dimensions of Global Flows (Appadurai) Expansion means the creation of new social networks and the multiplication of these connections Intensification means the expansion, stretching, and acceleration of these networks Social Relations The economic activities that we undergo with different countries Social Consciousness Is being self-aware of your own culture and practices in the environment that we are living in; you are aware of your beliefs, culture, and practices Globalization as a Process Range of processes under unwieldy epithet (another way of calling) Globalization as a Condition Future social condition with thick economic, political, and cultural interconnectedness ; Similar with globality (Steger) The five claims about globalization are that it (a) is about "the liberalization and global integration of markets" (b) can't be stopped; (c) is spontaneous and natural; (d) is good for everyone; and (e) "furthers the spread of democracy in the world" Globalization as a Ideology What are the 5 Core claims of globalization? Globalization as an Economic Process Basic or primary form of globalization The increasing linkage of national economies through trade, financial flows, and foreign direct investment...by multinational firms (Gilpin) The removal of barriers to free trade and the closer integration of national economies (Stiglitz) Expanding economic activity is identified as both the primary aspect of globalization and the engine behind its rapid developmen Globalization as an Political Process The reduced control of national governments over economic policy ◆ Example: The Philippines is part of a certain global organization and if you are a member then you have no choice but to follow the policies. That is why, the more globalized a country is, the less control the national government has over the country. Globalization as an Cultural Process A densely growing network of complex cultural interconnections and interdependencies that characterize modern social life (Tomlinson) Culture no longer remains tied to fixed localities such as town and nation, but acquires new meanings that reflect dominant themes emerging in a global country. Example: K-Drama or K-Pop is not only shown in Korea but all over the world. 1. Rejectionists → Globalization is within the concept of vague words employed in academic discourse. Linda Weiss (1998) objects to the term as 'a big idea resting on slim foundations.' 2. Skeptics → The world economy is not a truly global phenomenon, but one centered on Europe, Eastern Asia, and North America. The majority of economic activity around the world still remains primarily national in origin and scope (Hirst and Thompson). 3. Modifiers Cross-regional transfers of resources, technology, and culture did not start only in the last few decades. The concepts of globalization are historically imprecise. According to modifiers, the problem in globalization is not the word/term nor the scope/place but the historical imprecision or time. It is not something new, it is something that started in the past Globalization Critics POLITICAL SCIENTIST Globalization is a challenge to nation-states-strengthening regional blocks and emergence of global political norms ECONOMIST Globalization is the increase of free trade, global econ organization, and trade blocks Globalization is both the concepts of global village and cultural imperialism CULTURE AND COMMUNICATIONS EXPERT 1. Has various forms of connectivity-economic, political, and cultural 2. Allows for expansion and stretching of social relations 3. Intensifies social exchanges and activities 4. Occurs worldwide Four Attributes of Globalization ECONOMIC GLOBALIZATION Steger's definition of globalization (as the expansion and intensification of social relations and consciousness across world-time and across world-space) implies the many dimensions of globalization. The process of making the world economy an organic by extending transnational economic processes and relations to more and more countries (Szentes) 1. Growing scale of cross-border trade 2. Flow of international capital 3. Wide and rapid spread of technology Main Causes of Economic Globalization (Shangquan, 2000) THE SILK ROAD It is the oldest known international trade route. It is a network of pathways that connect China, Middle East, and Europe. Silk was highly traded. Silk went westward; and wool, gold, and silver went east. Although international, it was not truly global. The age of globalization truly began when populated continents started to exchange products continuously (Flynn and Giraldez). MERCANTILISM Countries started economic policies that maximize the exports and minimize the imports. Galleon trade was the first time America (Mexico) traded with Asia (Philippines). also had a lot of restrictions. Monarchies imposed high tariffs and restricted colonies to trade with competitors. THE GOLD STANDARD A more open trade system initiated by the US and Europe to prevent isolationist mercantilism Currency prices and foreign exchange were based on the value of gold. With the gold standard, countries agreed to convert paper money into a fixed amount of gold. If the value of gold is $100 per ounce, the dollar value is 1/100th of an ounce of gold. Many countries abandoned the gold standard when their gold reserves were depleted during World War II. FIAT CURRENCIES Legal tender whose value is backed by the government that issued it It is not backed by precious metals and its value is determined by their cost relative to other currencies. The Philippine peso is the fiat currency of the Philippines. The system allows the government to regulate production of money in circulation as they see fit. One danger of fiat money is that governments will print too much of it, resulting in hyperinflation. 1. Globalization of Trade of Goods and Services 2. Globalization of Financial and Capital Markets 3. Globalization of Technology and Communication 4. Globalization of Production Four Interconnected Dimensions of Economy (according to Benzces) Globalization of Trade of Goods and Services Examples: -The establishment of the World Trade Organization, -the emergence of China as a major exporter of manufactured goods, ---BPOs Globalization of Financial and Capital Markets Examples: -The cross-listing of company shares of foreign stock exchanges, --the 24-hour trading, -cross-hedging Globalization of Technology and Communication Examples: The online transactions, interactivities happening due to the advancement of communication technology Globalization of Production Examples: The presence of multinational corporations (MNCs) and transnational corporations (TNCs) THE NATION STATE GLOBAL CORPORATIONS INTERNATIONAL MONETARY SYSTEM (IMS) Actors of Economic Globalization THE NATION STATE The manager of global economy The "midwives" of globalization (Brodie) GLOBAL CORPORATIONS National products, technologies, and industries are obsolete (Reich, 1999) TNCs are the main driving force of globalization INTERNATIONAL MONETARY SYSTEM (IMS) Internationally agreed rules, conventions, and institutions for trade, investments, etc Gold Standard Fixed exchange rate with gold as the international reserve The Bretton Woods System The US dollar was the only convertible currency ◆ established the International Bank for Reconstruction and Development (now World Bank) for post-war reconstruction; and the International Monetary Fund for international trade. European Monetary System (later European Economic and Monetary Union) Arrangement between European countries to link their currencies ... Effects of Economic Globalization 1. Allows worldwide distribution of income 2. Reduces poverty (World Bank) 3. Creates mutual dependence between developing and developed economies (Arrighi, 2005) 4. Exploits the sources of goods and services 5. Does not benefit all nations (World Bank) 6. Leads to inequality according to experience, expertise, and skills (Wallerstein) ... Foreign Direct Investment A category of cross-border investment in which an investor resident in one economy establishes a lasting interest in and a significant degree of influence over an enterprise resident in another economy A kind of investment starting from another country and establishes into another country It is a good thing because money is coming in Provides workers (e.g. nurses) and products only grown in the Philippines In what way is the world dependent on the Philippines? There is a surplus of goods. Increases competition Importing means we are giving money or buying, so we will not benefit from it. It is better to export (sell) because we can earn money and benefit from it. What is the benefit of maximizing exports and minimizing imports? The more cash a government prints, the less value each cash is. The more money you print, the more "buying power" people have. Because of inflation, the value of your money lessens. Why do governments not print more cash as they wantto have? They support us to improve our economy by producing, exporting, and importing products. They facilitate the process, amount, and kind of globalization happening in a certain country. Why did Brodie describe the Nation State as the "midwives" of globalization? PRO: It offers a wide variety of goods (e.g. McDonald's, Apple) so we are able to enjoy the products of other countries. CON: It affects our local businesses. It is easy to exploit cheaper labor markets, that is why we have lesser wages in the Philippines compared to other countries. It will increase the economic growth (PRO) but there is unequal growth in the production and processes among countries (CON). PRO: Can provide opportunities to poor countries Is economic globalization a good or bad thing? MARKET INTEGRATION A situation in which the prices of related goods and services sold in a defined geographical location begin to move in some sort of similar pattern to one another The result of the establishment of the global economy involving homogenization of trade and commerce Intentional; sometimes it happens because a government implements certain strategies to control the direction of the economy. The integration of markets may be due to shifts of supply and demand. 1. INTERNATIONAL COMPANIES 2. MULTINATIONAL COMPANIES (MNCs) 3. GLOBAL COMPANIES 4 TRANSNATIONAL COMPANIES (TNCs) Types of Global Corporations INTERNATIONAL COMPANIES Importers and exporters with no investment in another country Their sole investments can only be found in the country they originate from MULTINATIONAL COMPANIES (MNCs) With investment in other countries but no coordinated product offering Focused on adapting their products and services to each individual local market GLOBAL COMPANIES With investments and are present in many countries where they market their products and services They do not change or modify their products TRANSNATIONAL COMPANIES (TNCs) With investment, corporate facility in another country that independently make, research, and market the products More complex organizations in foreign corporations MNCs. Collectively, they were described to be a particular corporate form to dominate global corporations, production, and exchange. This was termed "The Emergence of International, Multinational, Global, and Transnational Companies" in the US, European Union, and Japan. These countries, according to Caroll (2003), form the triad—the major economies of the world. It was acknowledged in 1974 that the major economic actor was ________ 1. Agent of desire economic development 2. Economic prominence 3. An entity that may create a crisis Common Attributes of Global Corporations INTERGOVERNMENTAL PRIVATE Types of International Financial Institutions INTERGOVERNMENTAL ex: IMF works to foster global monetary corporations, secure financial stability, facilitate international trade, and even more. Asian Development Bank (ADB) was established in 1960. Its African counterpart, African Development Bank (AfDB) was established 4 years laters. ◆ These two were created to spur social progress and economic growth in specific regions of the world. However, they can also be private Managed by governments in the world Its (World Bank) aim is to end extreme poverty and promote shared prosperity in a sustainable way. PRIVATE examples: CitiGroup is an American multinational investment banking and financial corporation. It is the first largest bank in the US. Merill Lynch is wealth management division of the bank of America. Both institutions, regardless, provide investments around the world. Investments can be in the form of foreign direct investments, stocks, or loans. 1. There are countries and states that are independent and govern themselves. 2. Countries interact through diplomacy 3. Interactions are facilitated by international organizations. 4. Aside from facilitating interactions between states, they also take on lives of their own. Four (4) Attributes of World Politics One of the principles of modern state politics The complete and exclusive control of all the people and property within their territory without any outside interference SOVEREIGNTY ◆ Internal Sovereignty → The absolute sovereignty over the population of the Philippines ◆ External Sovereignty → Freedom and autonomy from outside interference Two (2) types of sovereignty: THE GLOBAL INTERSTATE SYSTEM A politically structured interstate system of allied and competing states seeking to form collaboration via Intergovernmental Organizations (IO) such as United Nations (UN), EU, ASEAN, NATO etc. THE NATION-STATE A political community emanating from civic society to legitimately execute peacemaking, the civic society, the basis of the people's oneness STATE STATE A country and its government A political organization with centralized government maintaining legitimate use of force within a territory (Weber) Characteristics: ◆ Exercises authority over the population ◆ Governs a territory ◆ Has a government structure that crafts rules for people to follow ◆ Has internal and external sovereignty NATION An organic and imagined community with an official boundary People share a common language, territory, history, ethnicity, or psychological makeup. Allows a person to feel a sense of community Most nations strive to become states so national ideals can assume organizational forms. INTERNATIONALISM Desire for greater cooperation and unity among states and people LIBERAL INTERNATIONALISM SOCIALIST INTERNATIONALISM Types of Internationalism LIBERAL INTERNATIONALISM Popularized by Immanuel Kant Nations must give up their freedom and submit to a larger system of laws. Seeks to promote democracy across the globe in order to maintain stability and peace States should intervene in other sovereign states in order to pursue liberal objectives. SOCIALIST INTERNATIONALISM Based on the concept of working-class solidarity, "an injury to one is an injury to all," applied at an international level Working-class must unite as a global class versus capitalism. Intergovernmental Organizations (IO) foster strong economic, political, cultural intergovernmental relationships ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN) Ten (10) member states 1. Accelerate growth, social progress, and cultural development. 2. Promote regional progressions. 3. Advance peace and sustainability. 4. Promote active and beneficial cooperation on matters of mutual interest. 5. Provides assistance in training and researchinstallations. 6. Work hand in hand for greater use of agriculture and industries. 7. Preserve close collaborations with current and regional institutions. EUROPEAN UNION (EU) 28 member states 1. Promote peace, values, and well-being of citizens. 2. Offer freedom, security, and justice without internal borders. 3. Uphold sustainable development. 4. Combat social exclusion and discrimination. 5. Promote scientific and technological progress. 6. Enhance economic, social, and territorial cohesion. 7. Respect cultural and linguistic diversity. 8. Establish economic and monetary union. WORLD TRADE ORGANIZATION (WTO) 164 member states 1. The sole IGO catering to global rules of trade 2. Ensures trade run smoothly and freely 3. Encourages trade by lowering trade barriers 1. Globalization imposes a forced choice among nation states. 2. Globalization is the establishment of economic and political integrations. 3. Globalization has resulted in the establishment of international laws and principles. 4. Globalization has contributed to the rise of transnational activism (TNA's) 5. Globalization leads to creation of new communications networks. Globalization and the Changes on the Roles of the States 1. Globalization imposes a forced choice among nation states. Vertical effect The nation states are in danger of losing important elements because of neoliberalism. Nation states are forced to align policies congruent to principles of free trade. Example: ASEAN encouraging member states to commit to ASEAN Free Trade Area 2. Globalization is the establishment of economic and political integrations. Vertical effect Example: The establishment of the European Union ◆ Has a single monetary system ◆ Has a parliament with legislative powers ◆ Has intercontinental jurisprudence (European Court of Justice) ◆ Statehood is not changed (but the economic and political functions) 3. Globalization has resulted in the establishment of international laws and principles. Vertical effect Example: The establishment of the United Nations ◆ UN Security Council (peacekeeping, international sanctions, permit for military operations) ◆ International Criminal Court (prosecution of those with crimes against humanity) ◆ Universal Declaration of Human Rights (individual's rights) ◆ UN Convention of the Law of the Sea (rights of nation states on world oceans) 4. Globalization has contributed to the rise of transnational activism (TNA's) Horizontal effect Example: The human rights group in the Philippines getting support from counterparts. 5. Globalization leads to creation of new communications networks. Horizontal effect Example: Network society forcing states to reshape themselves to become parts of global network-finance, education, science, etc. It is the art and science of maintaining peaceful relationships between nations, groups, or individuals. What is diplomacy? Internal sovereignty refers to absolute authority within one's own territory, whereas external sovereignty refers to the ability of the state to act independently and autonomously in the face of external forces. What is the difference between internal and external sovereignty? It is natural because people feel that they belong to the community. They have the same culture, ethics, and etc. A person feels a sense of community even if no one is dictating them. Why is a nation called an organic and imagined community? The Philippines can be considered both a nation and a state because it has its own citizens, government, and territory. Is the Philippines considered a nation or a state? No state or group of states has the right to intervene, directly or indirectly, for any reason whatsoever, in the internal or external affairs of any other state. Does the US have the right to intervene in the affairs of Afghanistan? Crimes against humanity refer to specific crimes committed in the context of a large-scale attack targeting civilians, regardless of their nationality. These crimes include murder, torture, sexual violence, enslavement, persecution, enforced disappearance, etc. What do you mean by crimes against humanity? The EU has the right to impose sanctions on the Philippines since it is an independent organization and it pressures the Philippine government to make a plan of action in addressing the crimes of humanity committed during the war on drugs. The Philippines, unfortunately deserve such treatment due to the crimes of humanity committed by the war on drugs which attracted the international community, and the sanctions put a very huge disadvantage to the farmers and the producers in the country. Do you feel that the EU as an independent organization has the right to impose sanctions? Do you think the Philippines deserves such treatment?