LESSON 1

THE STUDY OF GLOBALIZATION

COURSE LEARNING OUTCOMES: By the end of the lesson, the students should be
able to:
1. define globalization;
2. cite the importance of understanding globalization in today’s contemporary world;
and
3. cite the reasons, phases and the positive and negative effects of globalization;
MOTIVATION: 1-minute talk
The teacher calls a student who has an experience of any of the following and
relate their experience in the class.
a. use of social media
b. consuming/using imported goods
c. sipping coffee at star bucks
d. watching foreign movies
e. traveling abroad
INTRODUCTION

The contemporary world which is the world we are living in today is marked by
globalization. Today societies have become increasingly interdependent and have more
social, economic, political and cultural relationships. Such an increasing
interdependence can be attributed to globalization. Consequently, the problems and
issues that characterize the contemporary world are now interconnected and
multidimensional. Now, , the various actors—states, organizations, and citizens—are
exhorted to work together to find global solutions.

What is globalization?

Globalization is from the term “globalize” which means “emergence of an

international network of economic systems”. Globalization is a word used to denote the
increasing 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 life.
Globalization is the process by which ideas, knowledge, information, goods, and
services spread around the world. In business, the term is used in an economic context
to describe integrated economies marked by free trade, the free flow of capital among
countries, and easy access to foreign resources, including labor markets, to maximize
returns and benefit for the common good.
 Globalization describes how trade and technology enabled the countries to be
more connected and interdependent. Globalization also captures the social and
economic changes that have come about as a consequence. It can be illustrated as the
threads of an huge spider web formed over millennia, with the number and reach of
these threads increasing over time. People, ideas, material goods, money, and even
diseases have traveled at a greater speed than ever in the present age.
Globalization also generally refers to the narrowing of national differences and
cross-border barriers in economic, political, social, cultural, and other national
characteristics. Mc Grew (1992) describes globalization as something that is comprised
of multiple sameness and interconnectedness that go beyond the nation-states. It is a
process in which individuals and organizations in the one part of the world are affected
by the activities, affairs and convictions on another part of the globe. Cerny (1997)
defines it as a cluster of economic and political frameworks and procedures deriving
from the changing marks of the interests and assets that comprise the foundation of the
international political economy-specifically, the expanding structural differences of those
interests and assets.
Albrow and King (1992) expressed globalization as those processes wherein
people from different places are incorporated into a single world society. Robertson
(1992) as cited by Ariola (2018) described globalization as the compression of the world
and the intensification of the consciousness of the world as a whole. According to
Stregger, globalization is the expansion and intensification of social relations and
consciousness across world time and world space.
According to Brazalote et. al (2019), globalization is a phenomenon. It is
something that is difficult to understand. The term is often distinguished more by what is
not, rather than by what it is. Reich (1998) opines that it is a term whose meaning is
obscure. Rosenau (1996) underscores that globalization is not globalism neither
universalism.
Other definitions of globalization as cited by Ariola (2018) include the following:
1. Globalization is the increasing interaction of people, states, or countries
through the growth of the international flow of money, ideas, and culture.
Thus, globalization is primarily focused on economic process of integration
that has social and cultural aspects.
2. It is the free movement of goods, services, and people across the world a
manner that is integrated.
3. It is the liberalization of countries welcoming foreign investment that supports
their economy.
When did globalization begin?
The famous Silk Road, an ancient network of trade routes across China, Central
Asia, and the Mediterranean used between 50 B.C.E. and 250 C.E., is arguably the
most well-known early example of exchanging products, customs and ideas. The Silk
Road links China with the West. It was a major conduit for trade between the Roman
Empire and later between medieval European kingdoms and China. Chinese
merchants exported silk to western buyers. From Rome and later from Christian
Kingdoms, wools, gold, and silver traveled eastward. As with future globalizing booms,
new technologies played a key role in the Silk Road trade. Advances in metallurgy led
to the creation of coins; advances in transportation led to the building of roads
connecting the major empires of the day; and increased agricultural production meant
more food could be trafficked between locales. Along with Chinese silk, Roman glass,
and Arabian spices, ideas such as Buddhist beliefs and the secrets of paper-making
also spread via trade.
Undoubtedly, these types of exchanges were accelerated in the Age of
Exploration, when European explorers finding new sea routes to the spices and silks of
Asia bumped into the Americas instead. Technology, once more, has played a
significant role in the maritime trade routes that thrived between old and newly
discovered continents. Ships that used to carry plants, animals, and Spanish silver
between the Old World and the New now also carried Christian missionaries.
The thread of globalization continued to spin out through the Age of Revolution
when ideas about liberty, equality, and fraternity spread like fire from America to France
to Latin America and beyond. Powered by the inventions of factories, steamboats, cars,
railways, and planes, globalization rode the waves of industrialization, colonization, and
war through the eighteenth, nineteenth, and twentieth centuries.
With the Information Age, the advancement in computer and communications
technology launched a new global era and redefined what it meant to be “connected.”
Modern communications satellites made possible that the 1964 Summer Olympics in
Tokyo could be watched in the United States for the first time. The World Wide Web and
the Internet allowed someone in Germany to read about a breaking news in Bolivia in
real-time. Travelling from Boston, Massachusetts, to London, England, could be
possible in hours rather than the week or more it would have taken a hundred years
ago. This digital revolution massively affected economies across the world as well. They
became more information-based and more interdependent. In the modern era,
economic success or failure at one focal point of the global web can be felt in every
major world economy.
The Nature of Globalization
The following are the major threads for the nature of globalization:
1. Increasing connectivity of civilizations throughout the globe;
2. Almost an unimpeded global flows of financial money, news, and cultural
imagery;
3. Increased activity international corporations like the Multinational Corporations
(MNCs);
 4. Increasing economic development in many nations is accompanied by rising
inequality;
5. The emergence of a worldwide consumer culture, more travel and migrations;
faster modes of transportation and technological communications.
6. Increased awareness of what is happening all over the world and the probable
effect for their own nation.
7. The fast expansion of government and non-government supranational
organizations that complement, replace, and assist the nation-operations.
Reasons for Globalization
Ariola (2018) has identified several reasons why the contemporary world has to
accommodate globalization as follows:
1. Domestic markets are no longer rich as a consequence of many interlocking
factors.
2. Companies and institutions go global to find political and economic stability which
is relatively good in other countries than the country of origin.
3. Technological and managerial know-how can be acquired especially from
advanced countries in terms of science, technology, education, health and other
fields of discipline.
4. Reduction of high transportation costs if one goes globally using the advance
tools of communication and information.
5. Cross border trade is stimulated and accelerated through the creation of World
Trade Organization (WTO).
Importance of Studying Globalization
Studying globalization in today’s contemporary world offers several importance
as follows:
1. Studying globalization helps us comprehend the intricate webs of
interdependence and the complex relationships between nations, organizations,
and individuals which can provide insights into how decisions and events in one
part of the world can have far-reaching consequences globally.

2. Globalization has transformed the world economy, influencing trade, investment,

production, and consumption patterns; hence, by studying globalization, we can
gain a deeper understanding of the dynamics of global markets, the impacts of
international trade policies, and the distribution of wealth and resources. This
knowledge is valuable for businesses, policymakers, and individuals seeking to
navigate the global economy effectively.

3. Globalization has facilitated cultural exchange, the spread of ideas, and the
blending of diverse cultural practices. Studying globalization helps us appreciate
and understand the multicultural and interconnected nature of societies. It offers
insights into the influences of globalization on language, art, music, cuisine, and
popular culture, fostering a more inclusive and informed worldview.
 4. Globalization has led to the emergence of global governance structures and
interconnected political systems. Studying globalization provides insights into the
complexities of global politics, the role of international organizations, and the
challenges and opportunities associated with global cooperation. It helps us
analyze issues such as human rights, environmental sustainability, migration,
and peacekeeping efforts.

5. Globalization has significant implications for the environment and sustainability.

The study of globalization helps us understand the environmental impacts of
global economic activities, the challenges of climate change, and the need for
international cooperation to address environmental issues. It allows us to explore
solutions for sustainable development and responsible resource management on
a global scale.

6. Globalization has brought both opportunities and challenges that require

collective responses. Studying globalization equips us with knowledge and
perspectives to engage in discussions on global challenges such as poverty,
inequality, pandemics, technological advancements, and geopolitical tensions. It
encourages us to think critically, consider multiple viewpoints, and work towards
inclusive and sustainable solutions.

7. By studying globalization, we gain insights into the complexities,

interdependencies, and opportunities presented by an interconnected world. It
enables us to navigate the global landscape more effectively, make informed
decisions, and actively contribute to addressing global challenges and fostering a
more inclusive, equitable, and sustainable future.

Phases of Globalization
According to Baldwin (2016), there are four phases of globalization as follows:
Phase 1: Humanizing the globe (300,000 BCE–10,000 BCE)
Climate change propelled people to move out of Africa, in search for food.
Consumption and production were bundled, but not in fixed locales. The (Neolithic)
agricultural revolution transformed Phase 1 into Phase 2.

Phase 2: Localizing the global economy (10,000 BCE–1820 CE)

For the first time, agriculture brought the food to the people. Production was
coming to consumption instead of the other way around. This phase saw the rise of
seven ancient civilizations in what are known today as Iraq, Iran, Turkey, Egypt, China,
India/Pakistan, and Greece/Italy. For the first time production and consumption were
bundled in particular locations, so it could be called the 'first bundling’. The steam
revolution shifted Phase 2 to Phase 3.

Phase 3: Globalizing local economies (1820–1990)

 The steam revolution and Industrial Revolution meant that goods could be sent
efficiently over long distances by land and sea. Steam thus unleashed spectacular
transportation capabilities that made it economical to consume things that were made in
far-away places. This was the 'first unbundling' of production and consumption. It was
caused by a steep drop in the cost of moving goods. But, even as production dispersed
globally, it concentrated locally at the level of factories and industrial districts. The
Information and Communication Technology (ICT) Revolution shifted Phase 3 to Phase

Phase 4: Globalizing factories (1990–present)

In the fourth stage, the ICT Revolution radically lowered the cost of moving ideas
as well as goods over long distances. Therefore, it lowered the cost of coordinating
complex activities at distance, which changed – and continues to change – the nature of
globalization. In particular, for the first time, it became organizationally feasible to
separate stages of manufacturing production over long distances. Baldwin called this
the 'Second Unbundling. Once this production unbundling was feasible, the vast
divergence in wages that had appeared during the Phase 3 made the separation
profitable. Rich-nation firms offshored labor-intensive stages to nearby low-wage
nations.

Sectors of Globalization

The following are the 7 sectors of globalization.

1. Economic globalization

Economic globalization implies an 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. The Available resources of each country will not just be limited on
what their country can produce, but it will also be dependent on other countries.

2. Political globalization

Political issues such as rights of women and children can now be exposed
globally as a result many laws are already implemented to address these issues.
This aspect promotes globally certain common values such as equality, human
rights, justice, democracy and moral values.

3. Military Globalization

It refers to the process which embodies the growing extensity and intensity
of military relations among political units of the world system. It also reflects the
expanding network of worldwide military ties and relations as well as impact of
key military technological innovations (from steamships to satellites)
 4. Culture globalization

It conveys that the cultures of specific country can be shared or spread

with other countries. The downside of this is some culture that are exclusive on
certain country are slowly diminishing.

5. Ecological globalization.

The process of globalization has many consequences in the ecology like

the infiltration of invasive species which may be detrimental to a certain
ecosystem.

6. Technology globalization

Due to technological advancement, one can now already communicate to

the people of other countries and give feedback on many issues all around the
world.

7. Geographical

Globalization has seemingly created a borderless world where one can

now explore other countries safely.

Positive Effects of Globalization

The following are the positive effects of globalization.
1. The increased quality of goods as a result of global competition is one of the
most noticeable effects. Domestic companies improve the quality of their
products to compete with foreign competitors, thereby enhancing the level of
customer satisfaction.

2. Multinational Corporations (MNCs) can expand their business to developing

countries thereby increasing job opportunities and employment for the locals.

3. Foreign Direct Investment (FDI) enters emerging nations. Profitable companies

attract a lot of international investment, which augments the country's foreign
currency reserves.

4. World Trade Organization (WTO) and other international bodies created to

monitor and regulate international trade facilitate smooth flow of trade between
and among countries thus enabling them to gain more profit from an enhanced
trade relation.
 5. Breakthroughs and technological know-how from developed countries can be
shared specially to developing countries which they can use to develop their
resources.

6. Excellent cultural practices, habits, and ideas that originate from one country can
be shared to another country thus improving the quality of human life.

7. One can have more education opportunities to be enrolled in the finest

educational institutions the world has to offer.

8. Security agencies and police from many nations have come to an agreement as
a result of globalization to combat global terrorism. Criminals may now be
apprehended no matter where they go to avoid detection.
Negative Effects of Globalization
The following are the negative consequences of globalization.
1. As a result of globalization, child labor and slavery have increased. Companies
that use minors may be excused from wrongful labor practices by paying
authorities in nations with weak accountability.

2. Anti-globalization scholars argue that globalization has created a wider economic

disparity between the rich and the poor- the wealthy are growing wealthier, while
the poor are barely scraping by on a daily basis. If globalization had been
successful, it would have led to increased wealth and prosperity, but corporate
greed and incompetent governance have prevented this.

3. Environmental deterioration has spawned heated discussion in many

international conferences, and one of the main elements identified contributing to
the worsening of the situation is undoubtedly globalization. Industrial and factory
operations especially by large corporations are depleting the earth's natural
resources.

4. Globalization may have benefited terrorists and criminals unintentionally. It is

may now be easier for them to travel to another country to execute their plans or
to seek refuge.

5. Increased pollution in developing countries where giant companies have

established their business.

6. Spread of diseases can be attributed to globalization due to free movement of

people. People from all over the globe may converge in one place, which is why
a virus from the rainforest for instance may make its way to almost every nation
in the world. The Covid 19 virus has easily spread thus creating a pandemic due
to the movement of people from one country to another.
 ACTIVITY

Name: ________________ Date: _____________

Year and Section: _______ Score: ____________

Activity 1: Essay: Answer the question briefly but substantially. (10 points each)
1. As a student, why is it necessary to understand globalization?

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2. Anti- globalization scholars contend that globalization would only beneficial to the
progressive countries while such can be harmful especially to the economy of the
developing countries. Do you agree with this statement? Justify your answer. A mere
yes or no will not be given any point. (10 points).
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