STRUCTURES OF G-WPS reporting Office.pptx

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1. S T R U C TURES OF GLOBALIZATION

2. L E S S ON OBJECT IVES : At the end of this lesson, you should be able to: 1. define economic globalization: 2. identify the actors that facilitate economic globalization; 3. define the modern world system; and 4. articulate a stance on global economic integration.

3. D E F I NITION OF T E R M S E c o nomic Globalization - i s t h e e x p a nsion o f n a tional economies , t h e Global m a r k e t d r i v e n b y t h e m o d e r n t e c h n o l ogies a n d i n s t i t u t i o n al s e t u p s t h a t p r o m o te f a s t e r a n d e asier f l o w o f g o o d s a n d c a p i t a l ( S u g d e n a n d W i l s o n , 2 5 ) . E x a m p l e : Overseas workers send about 10.7 billion dollars back home to their families. Which in return helps the Philippine's economy.

4. Global Economy - denotes that the economies of various countries are more interconnected from extraction, production, distribution, consumption, to disposal of goods and services ( C a r f i a nd S c h i l i r ó , 2 1 8 )

5. E x a mple : The U.S. economy is an example of a global economy since it plays an important role in globalization. As the largest economy in the world, its output impacts the development of other economies. If it suffers from a natural disaster or other events, the economic downturn will affect all the other economies.

6. International Financial Institutions - are global financial institutions that support a country's economic growth through support to governments and now other private sectors ( W o o d , 2 1 9 ) .

7. E x a m p l e s : ✓ World Bank. ✓ World Trade Organization (WTO) ✓ Asian Development Bank (ADB) ✓ Asia-Pacific Economic Cooperation (APEC) ✓ Asia-Pacific Trade Agreement (APTA) ✓ B R I C S

8. International Monetary Fund - is an international organization cooperation and exchange stability to foster economic growth and high employment and to provide short-term financial assistance to countries to help ease balance of payments adjustments (IMF, 2019).

9. Global Civil Society - is a system of nongovernment institutions that operate across geographical borders and organize and mobilize for a common issue or cause ( K e a n e , 2 3 : 8 ) .

10. E x a m p l e s : ✓ A d v o cating for p r o g r e ssive c h a n g e ✓ T h e G l o b a l C a l l t o A c t i o n ✓ T h e I n t e r n a tional C a m p a ign t o B a n L a n d m i nes .

11. Global Corporation - is an " enterprise that engages in activities add value (manufacturing, extraction, services, marketing, etc.,) in more than one country " ( U C T C , 1 9 9 1 ) .

12. E x a mples : ✓ C o c a - C o l a ✓ U n i l e v e r ✓ S a m s u n g ✓ A m a z o n

13. Worl d Sy stem - is base d on the the ory of W alle rste in ( 1 9 7 4 ) t h a t r e c o g n i z e s t h a t s o c i a l a n d economic c h a n g e i s n o t o n l y e n d o g e n ous t o a country , b u t i s a f f e c t e d b y i t s i n t e r a c ion t o e x o g e n ous i n s t i tutions , t h u s t h e f o c u s o n w o r l d - s y s t e m ( C h a s e - D u n n , 2 1 8 ) .

14. The device you are using was probably designed by a business in the Core (i.e., headquartered in the US, Japan, or South Korea) but was likely assembled using labor and resources from the Semi-Periphery or Periphery (like China, Vietnam, Indonesia, or India). E x a m p l e :

15. Economic Integration - is a process of combining or increasing the interconnectivity of national economies to the regional or global economies. ( C l a r k e t Al. , 2 1 8 ) .

16. I N T R ODUC TION

17. As discussed in the earlier section, central to the discussion about globalization is its economic dimension. The phenomenon of economic globalization includes greater integration of economic activities, products, and systems across the world. It is important to note that economic globalization goes beyond internalization. Economic globalization involves the integrations of functions and processes of economic activities. T h i s m e a n s t h a t e c o nomic i n tegration r e q u i r e s n o t j u s t h a v i n g i n t e r n a tional c o n s u m er o r e x p o r t ing g o o d s f r o m o n e country t o a n o ther , b u t a l s o i n v o l ves c r e a t i ng i n s t i tutions f o r m a r k e t i n t e g r ation a n d g l o b a lization .

18. S p e c i f i cally , t h i s l e s s on a i m s t o a n s wer , " W h o a r e t h e a c t o r s t h a t d r i v e e c onomic globalization ? " a n d d " W h a t i s t h e m o d e r n w o r l d - s y s t e m ? " . A t t h e e n d o f t h i s l e s s o n t h e s t u ents s h o u l d a l s o e x p r e ss t h e i r stance o n t h e o n g o i n g g l o b a l economic integration .

19. D E F INITION O F ECONOMIC GLOBALIZATION

20. Most of the definition of globalization centers on it economic dimension. Economic globalization is driven by the "growing scale of cross-border trade of commodities and services".(Shangquan,2000:1) . C r i t ical to economic globalization is global economic integration . E c o nomic Integration m e a n s t h a t s e p a rate p r o duction o p e r a t i o n a r e f u n c t i o n a l l y r e l a t e d t o e a c h o t h e r a n d e c o nomic o p e r a t ions f r o m d i f f erent a r e a s i n t h e w orld . T h e v a r i o us d e f i n i t i o n s of economic g l o balization f o c u s o n i n c r e a s ing e c onomic t r a d e i n t e r r e l a t i o n a m o n g c o u n t r ies ( S t e g e r , 2 1 ; A l - R o d h a n , e t a l . , S h a n g quan , 2 ) . T h i s i s g o v e r ned b y n e o l i b e r a l p r i n c i p l es w i t h the r o l e o f t h e m a r k e t a s a c e n t r al d r i v e r o f e c onomic activities , w i t h l e s s g o v e r n ment i n t e r vention ( M a r t i n , S c h u m m a n a n d C a m i l l e r , 1 9 9 7 ) .

21. H o w e ver , t h e p r o cess o f g l o b a l e c onomic i n tegration i s n o t a m o d e r n p h e n o menon . T h e v o y a g e s o f e a r l i er e x p l o r e r s i n c l u ding t h e f o r m a t i o n o f e m p i r e ( i . e . , R o m a n e m p ire ) w e r e c r i t i cal i n i n t e r c o n t i n ental t r a d e a n d we're a l s o a p r e c u rsor o f m o d e r n e c o n o mic g l o b a lization . C h i n e s e , a n d e v e n e a r l i er , t r a d e s i n A s i a a l s o s e r v e a s f i r s t - f o r m s o f e c o nomic e x p a n s i o n a n d l a t e r i n t e g ration .

22. W h o a r e t h e A c t o r s t h a t F a c i l i tate E c o nomic G l obalization ?

23. G l o b a lization h a s o p e ned t h e d o o r s f o r o t h e r n o n - s t a t e a u t h o rity a n d a c t o r s i n d r i v i n g e c o nomic globalization ( Mad s e n & C h r i s t e n s e n , 2 1 6 ; S a s s e n , 2 6 ) . N o n - s t a t e a c t o r s i n c l u de i n t e r n a t ional economic o r g a nization s , p r i v a t e s e c t o r l e d b y m u l t i n a t ional c o m p a n ies , c e n t r a l b a n k s , a n d c i v i l s o c i ety . L e t us d i s c u s s h o w e a c h a c t o r c o n t r i b u t e s t o e c o n omic globalization .

24. First, are the international economic organization such as the International Monetary Fund (IMF), World Bank, and Organization for Economic Cooperation and Development (OECD). These are critical in developing and pushing for neoliberal policies among different countries. They also help facilitate trade and development discussions among various states.

25. Another example are regional organizations such as the Association of Southeast Asian Nations (ASEAN) and North American Free Trade Agreement (NAFTA). These organizations promote regional agreements and standards that facilitate better trade and exchange of knowledge, human resources, and regional cooperation.

26. S e c o n d a r e m u l t i n a tional companies ( M N C s ) , w h i c h a r e c o n s i dered t o b e t h e m a i n c a r r i e rs o f t h e e c o n o m i c globalization ( S h a n g quan , 2 : 2 ) . I n 1 9 9 6 , t h e r e w e r e 4 4 , M N C s i n t h e world w i t h 2 8 , o v e r s e a s s u b s i diaries a n d b r a c h o f f i ce s ( i b i d ) . In 2 6 , t h e r e w e r e ( M N C s ) i dentified ( U N C T A D , 2 7 ) .

27. L a s t l y i s t h e g l o b a l Civil s o c i ety a s a m a j o r d r i v e r o f e c o nomic g l obalization . T h e g l o b a l Civil society h a s m a d e i t s m a r k i n g l o b a l d e v e l opment a r e n a p a r t i c u larly d u ring t h e U N C o n f e rence o n E n vironment a n d D e velopment i n 1 9 9 2 ( K e a n e , 2 3 ) . G l o b a l c i v i l s o ciety s e e n a s either c o m p o s e d o f i n d i v i duals o r g r o up o f i n dividuals d i s a d v antage d b y t h e e f f e cts o f t h e g l o b a l i zation o f t h e w o r l d e c onomy , t h e y p r o t e s t a n d s e e k a l t e r native s w h i l e o n t h e o t h e r h a n d , g l o b a l s o c i al m o v e ment c o n s t i t u t i n g a b a s i s f o r a l t e r native t o a n e w world o l d e r ( G h e r g h e l , n d . ) .

28. I n t e r n a tional M o n etary Fund ( I M F ) T h e I M F i s a n i n t ernational organization o f 1 8 3 m e m b e r c o u n t r ies t o p r o m ote i n t e r n a tional m o n etary c o o p e r ation a n d exchange s t a b ility ; t o f o s t e r e c onomic growth a n d h i g h employment ; a n d t o provide short-term financial assistance to countries to h e l p e ase balance o f p ayments adjustments ( I M F , 2 1 8 ) .

29. I n t e r national F i n a n cial Institutions ( I F I s ) T h e g e n e r i c n a m e g i v e n t o a l l f i n a n cial i n stitutions o p e r a t i n g o n a n i n t e r n a tional l e v e l , r a n g i n g from d e v e l opment b a n k s , s u c h a s t h e . W o r l d B a n k a n d t h e E u r opean B a n k f o r R e c o n s truction and D e v e lopment ( E D B ) , a n d m o n e t ary a u t h o r i t i e s , s u c h a s t h e I n t ernational Monetary Fun d .

30. ENTER TITLE T r a n s n ational C o r p o ration s " E n t e r p r i s e t h a t e n g a g e s i n a c t ivities w h i c h a d d v a l u e ( m a n u f a cturing , e x t r a c t i o n , s e r v i c e s , m a r k e t i n g , e t c ) i n m o r e t h a n o n e country ( U C T C , 1 9 9 1 . "

31. G 8 a n d G 2 G r o u p o f n a t i o n s t h a t s e r v e a s a n a d v i sory o r g a n i zation t h a t d i s c u ss c u r r e n t e c o nomic a n d p o l i t i c a l p r o b l ems a n d t r a n sfer t h e i d e a s f r o m t h e f o r u m i n n a t i o n a l l e g i s lative r e g u l a t ions ( W e i s s , 2 1 8 ) .

32. W h a t i s t h e Modern W o r ld S y s tem ? T h e s e m i n a l w o r k o f I m m a n uel W a l l e r s t e i n i n t h e w o r l d - s y s t e m t h e o r y ( 1 9 7 4 ) i s a c r i t i c a l r e f erence i n t h e t h e o r i z a t i o n o f g l o balization . I n t h i s work h e e x p o u n ded o n t h e t h e o r y o n h o w t h e c o r e c a m e t o d o m i n ate p e r i p hery a r e a s p a r t i c u larly i n t h e e c o nomic w o l r s y s t e m a s a b a s i s o f h i s a n a l y sis . F o r W a l l e r stein , a w o r l d s y s t e m c o n s t i t u t e s a s o c i a l s y s t e m c o m p o s e d o f b o u n d a r ies , s t r u c ture s , member g r o u p s , r u l e s o f l e g i t i m a t i o n , a n d c o h e r e n c e ( W a l l e r s tein , 2 1 1 ) . World e c onomy , a c c o r ding t o W a l l e r s tein ( 2 1 1 ) , d i v i d e d i n t o c o r e s t a t e s a n d p e r i p h e r a l a r e a s i n c l u d i n g s e m i - p e r i p h e r a l s .

33. A c c o r ding t o t h e w o rld - s y s t e m t h e o ry , t h e p e r i p heral s m o s t l y w h e r e p r o d u c t ion o r r a w m a t e r ials a r e s o u r c e d o u t , w h i l e t h e s e m i - p eripherals p r o c e s s e d o n d i s t r i but e d t h e p r o d u c t s t o t h e core - s i t r s o f m a j o r d e m a n d s f o r g o o d s a n d s e rvices ( W a l l e r s tein , 2 1 1 ) . T h e r e a r e s i g n i f i cant a n d m e a n i n g ful m o v e m e n ts o f r e s o u rces , p r o d u c ts , p e ople i n d i fferent e c o nomies f a c i l i tate d b y m o d e r n t r a n s p o rt a n d c o m m unication ( C h a s e - D u n n , 2 1 8 ) .

34. S U M M A RY T h i s l e s s o n s e t s o u t t o a n s wer t h e f o l l owing questions ; " w h a t i s e c o nomic globalization ? " , " w h o a r e t h e a c tors t h a t d r i v e economic globalization ? " , a n d " w h a t i s t h e m o d e r n w o r l d system ? " .

35. 1. Economic globalization is the expansion of national economies, the global market driven by modern technologies and institutional set ups that promote faster and easier flow of goods and capital (Sugden & W i l s o n ,200 5 ) . The global economy is a product of this economic globalization where each countries economies are more interconnected and affected by each other. 2 . T h e r e a r e d i fferent a c t o rs a n d i n s t i t u t i o ns t h a t d r i v e economic globalization ; m o s t o f w h i ch a r e n o n - s t a te actors . T h e s e i n c l u de international economic organizations l i k e I M F , W B , A D B ; c e n t r a l b a nks ; p r i v a t e sectors l e d b y M N C s ; a n d civil society .

36. 3 . T h e m o d e r n world system i s b a s e d o n t h e t h e ory o f W a l l e r stein ( 1 9 7 4 ) , w h i c h p o s i t e d t h a t t h e g l o bal economy i s d i v i d e d i n t o t h e c o r e , s e m i - p e r i p h e r y , a n d p e r i p hery . T h e core i s t h e c e n t e r o f economic activities w h e r e most o f t h e p o p ulation l i v e s a n d e c o nomic i n s t i tutions a n d s e r v e s a r e b a s e d . h o w e ver , m a j o rity o f t h e r a w m aterials a n d p r o d u c t i o n s a n d d o n e o r s o u r c e d o u t i n t h e p e r i p hery . T h e s e m i - periphery a r e a s s e r v e a s d i s t r i bution s o r a d d v a l u e t o t h e r a w materials b y t h e p r o c e s sing t h e m f o r t h e c o r e a r e a s .