GE 3: Midterm Handout b.

Peripheral Process – scattered in a large

Globalization number of states and constitute the bulk of the
According to Dicken (1998) “We now live in the production activity in these states.
borderless world, in which the national c. Semi-periphery – mix or core-like and
boundaries is no longer relevant.” peripheral.
It is a process of interaction and integration 3. States - are related to the geographical
among people, companies and governments of division of labor. The geographical division of
different nations. labor was discussed in the World System Theory
of Wallerstein.
The Global Economy: 4. Household - According to Wallersteins (2006)
The global economy can be traced by to the households consist of three to 10 persons who,
expansion of long-distance trade during the over a long period of time, pool multiple source
period of 1450- 1640. of income in order to survive collectively.
5. Classes - classes have something to do with
Wallerstein labeled, “long sixteenth century” the placement of the household or individual in
trading companies emerged in Europe, such us the capitalist economic system.
East India Company and Hudson Bay Company
which created international trade empire. UNIVERSALISM:
Universalism is a theme prominently associated
According to Dicken, the development of the with the modern system. It means the priority to
world trading system over a period of several general rules applying equally to all persons and
centuries helped to create tripartite, Core, Semi rejection of particularistic preferences in the most
peripheral, and Peripheral economic areas. sphere.

Bretton woods agreement, New Hamshire, in ANTI -UNIVERSALISM:

1944 It is linked with racism and sexism. are norms,
Establishment of: but they are negative norms, in that most people
International Monetary Fund (IMF) deny their belief in them.
International bank for reconstruction and
development (Present day, World Bank) MARKET INTEGRATION
As defined by Koester (2000), is a state of affairs
General Agreement on Tariffs and Trade (GATT) - or a process involving attempts to combine
Elimination of protectionism separate national economies into larger economic
regions.
WTO – 199 superseded GATT, to reduce or
eliminate non-tariff barriers and uneven trading Two types of integration:
conditions between countries. Negative Integration reduces non-tariff and tariff
barriers to trade as a main tool for integrating
COMPARATIVE ADVANTAGE (David Ricardo) markets.

MODERNIZATION THEORY Positive Integration adjusts domestic policies and

According to the theory, Western European institutions through the creation of supranational
nations began to emerge several centuries ago as arrangements.
economic powers because their populations
adopted the kinds of values and practices just The integration come in five forms:
listed. 1. Preferential agreement involves lower trade
barriers between those countries, which have
DEPENDENCY THEORY signed the agreement
The poor nations never got the chance to pursue
economic growth because early on they were 2. The free trade area (FTA) reduces barriers to
conquered and colonized by European ones. trade among member countries to zero, but each
member country still has autonomy in deciding
THE MODERN WORLD SYSTEM on the external rate of tariff for its trade with
Five institutions in the modern world system non-member countries. European Free Trade
(wallerstein, 2006) Area.
1.Market – where individuals and firms can sell
products and buy goods. 3. Customs union represents a higher stage of
2. Firms – who produces goods and provide economic integration. In this form, countries
services in the market. agree to abolish tariff and non-tariff barriers to
a. Core-like Process – group themselves in a trade in goods flowing between them.
few states and constitute the bulk of the
production activity in this state. 4.The common market allows for free movement
of labor and capital within the member-countries.
5. The Economic Union is the highest form of The EU was not always as big as it is today. When
economic integration. in addition to the European countries started to cooperate
conditions of a common market, member economically in 1951, only Belgium, Germany,
countries also agree to integrate monetary, fiscal, France, Italy, Luxembourg and the Netherlands
and other policies. participated. Over time, more and more countries
decided to join. The Union reached its current
size of 28 EU countries. The goals of the
INTERNATIONAL FINANCIAL European Union are:
INSTITUTIONS: 1.Promote peace, its values and the Well-being of
World Trade Organization- Formerly known as its citizens;
General Agreement on Tariffs and Trade (GATT) 2.Offer freedom, security and justice Without
Only global international organization dealing internal borders;
with the rules of trade between nations. 3.Sustainable development based on Balanced
economic growth and price Stability;
INTERNATIONAL MONETARY FUND- Provide such 4. Highly competitive market economy With full
an institution as would exert control on employment and social Progress;
international exchange rates as well as act as 5. environmental protection;
reserve base bailing out BOP deficit countries. 6. combat social exclusion and Discrimination;
7. promote scientific and technological Progress;
WORLD BANK- International Bank for 8. enhance economic, social And Territorial
reconstruction and development. cohesion and solidarity Among EU countries;
Types of Global Corporation: 9. respect its rich cultural and linguistic Diversity;
International Companies and
Multinational Companies 10. establish an economic and monetary Union
Transnational Companies whose currency is the euro.
ROLE OF MULTINATIONAL COMPANIES:
1. MNC’s act as modernizer of the world’s NORTH AMERICAN FREE TRADE
economy In 1994) the North American Free Trade
2. Promote efficiency and growth of the world Agreement (NAFTA) came into effect, Creating
economy one of the world’s largest free trade zones and
3. Promote regional agreements and alliances laying the foundations for strong economic
4. Increase of money circulation in the economy growth and rising prosperity for Canada, the
United States, and Mexico.
THE ELECTRONIC HERD AND THE GOLDEN
STRAITJACKET ORGANIZATION OF THE PETROLEUM EXPORTING
The Electronic Herd COUNTRIES OPEC
Friedman (2000) referred to it as the electronic is a permanent intergovernmental Organization of
herd. He defined the electronic herd as a group 15 oil-exporting developing Nations that
made up of all the faceless stock, bond, and coordinates and unifies the Petroleum policies of
currency traders sitting behind a computer its Member Countries. It is created at the
screens all over the globe, moving their money Baghdad Conference on September 10-14, 1960,
around from mutual funds to pension funds to by Iran, Iraq, Kuwait, Saudi Arabia, and
emerging market funds, or trading on the Venezuela.
Internet from their basements.
TRANSNATIONAL ACTIVISM
REGIONAL AND ECONOMIC Transnational activism gained momen- tum on
PARTNERSHIPS/INSTITUTIONS: the the latter part of the 90's. Awareness,
ASSOCIATION OF SOUTHEAST ASIAN NATIONS responsibility, participation and cultural empathy
are usually the driving force of transnational
activists.

(ASEAN) The Association of Southeast Asian Caoutte (2006) defined transnational activism as
Nation, or ASEAN was established on 8 August social movements and other civil society
1967 in Bangkok, Thailand, with the signing of organizations and individuals_operating across
the ASEAN Declaration (Bangkok Declaration) by borders. Transnational collective action on the
the Founding Fathers of ASEAN, namely other hand is the coordinated international
Indonesia, Malaysia, Philippines, Singapore, and campaigns on the part of networks of activists
Thailand. Brunei Darussalam (1984), Vietnam against international actors, other states, or
(1995) Lao PDR and Myanmar on (1997), and international institutions. Included in the
Cambodia (1999) makes up what is today the 10 transnational activists are nonstate actors who
member-states of ASEAN (asean.org). may not have political influence but can gain
moral support from the public through persuasion
EUROPEAN UNION and information dissemination.
is a non-governmental organization that aims

determinan
towards having a greener, healthier environment.
It protects the forests and the seas. If for
example, the Philippines lack programs and
policies for environmental protection, the
Greenpeace as a transnational advocacy network

t and
may pressure the state to come up with rules and
regulations that will protect the environment.

GLOBAL GOVERNANCE

Global predomina
governanc nt role.
e can play Global
a governanc
facilitative e can play
and a
constrainin facilitative
g role, but and
it scarcely constrainin
plays a g role, but
it scarcely constrainin
plays a g role, but
determinan it scarcely
t and plays a
predomina determinan
nt role. t and
Global predomina
governanc nt role.
Global governance can play a facilitative and

e can play
constraining role, but it scarcely plays a
determinant and predominant role.

THE UNITED NATIONS

an international organization founded in 1945

a
made up of 193 Member States. The mission and
work of UN is guided by the purposes and
principles contained in its founding charter.

facilitative  he main
organs of
and
the UN Trusteeshi
are: the p Council,
General the
Assembly, Internation
the al Court of
Security Justice,
Council, and the
the UN
Economic Secretaria
and t.
Social  he main
Council, organs of
the the UN
are: the p Council,
General the
Assembly, Internation
the al Court of
Security Justice,
Council, and the
the UN
Economic Secretaria
and t.
Social  The main
Council, organs of
the the UN
Trusteeshi are: the
General the
Assembly, Internation
the al Court of
Security Justice,
Council, and the
the UN
Economic Secretaria
and t.
Social  The main
Council, organs of
the the UN
Trusteeshi are: the
p Council, General
Assembly, Internation
the al Court of
Security Justice,
Council, and the
the UN
Economic Secretaria
and t.
The main organs of the UN are: the General

Social
Assembly, the Security Council, the Economic and
Social Council, the Trusteeship Council, the
International Court of Justice, and the UN
Secretariat.

Council,
THE ROLE OF THE UNITED NATIONS:

1. Maintain International Peace and Order

The UN Security Council
The General Assembly

the
The Secretary-General

2. Protect Human Rights

Human Rights
Universal Declaration of Human Rights

Trusteeshi 3. Deliver Humanitarian Aid

Coordinate humanitarian relief operations.

4. Promote Sustainable Development

p Council,
Sustainable Development

5. Uphold International Law

UN Charter – an international treaty.

the