race to the bottom

● A race to the bottom refers to heightened competition between nations, states, or

companies, where product quality or rational economic decisions are sacrificed in order
to gain a competitive advantage or reduction in product manufacturing costs

twilight of sovereignty

-example: uncontrollable increase of oil price

-"twilight of sovereignty" refers to a situation where the traditional powers and authority of a
nation-state are diminishing or facing challenges. In a simplified explanation, it signifies a
weakening of a country's control over its own affairs, often influenced by factors such as
globalization, international cooperation, or the transfer of authority to supranational entities. It
suggests that, in certain aspects, countries may be sharing or relinquishing some of their
sovereign powers in an increasingly interconnected world.

production, consumption, & distribution

production is about creating goods and services, consumption involves using those goods and
services to satisfy needs, and distribution is the process of getting these goods and services
from producers to consumers. Together, these three elements form the fundamental
components of economic activities in societies.

Claims of Globalization

1. Globalization Is About the Liberalization and Global Integration of Markets

● The triumph of markets over governments remains at the center of globalization

(Steger, 2005)
● Markets are the driving factor behind global order.
● As an effect, globalization power is overly controlled (taxation, crime prevention,
anti-competition policies, social services, etc.)

Example:

There's great participation of private entities

- Liberalization (P= G-R) meaning Government minus Restrictions and Regulations equals
Participation of private entities
It can allow those people who want to open a business in the free market

2. Globalization is Inevitable and Irreversible

● Globality is the endpoint. It cannot be stopped.

Example:

● Market will help us reach the end point.

● Due to the growing demand on all aspects of the globalized market of developed and
developing countries.

3. Nobody is in Charge of Globalization

● If market forces decide our history's path, no social class or group can dominate the
globalization agenda.(Steger, 2005) Globalization should not include the goal of any
particular class or group.

Examples:

● Globalist are not dictating their on agenda to the people

● Reason why there's nobody in charge: most countries are possessive of their own
economy

4. Globalization Benefits Everyone

● Globalization brings "Economic Growth", Many people are lifted out of poverty and the
middle class has been expanded
● Rapid dissemination of information, technological innovation, growth of skilled
jobs.(Steger, 2005)
● Examples:
● Businessmans: Steve Jobs (Apple) gained wealth by trading. Trade to other countries
like Libya, South Korea, Bhutan, and etc.

5. Globalization Furthers the Spread of Democracy in The World

● Democracy, free market, freedom, and free trade are similar, according to the globalists'
belief

Examples:

● Act of voting- We have the freedom to pick our leaders for our country.
● Human rights- A basic right that everyone needs to respect and follow

4 Elements of State

1. Government
2. People
3. Territory
4. Sovereignty
Actors of globalization

1. nation state
- Nation-states are groups of people with a common heritage and culture who are also
united under a common government.

2. international organization

-if business people involved are within a particular region

3. multinational corporation

-is a company that has business operations in at least one country other than its home country

-amazon, apple,

4. transnational corporation

- A transnational corporation is an enterprise that is involved with the international

production of goods or services, foreign investments, or income and asset management
in more than one country.

5. global corporation

- A global company is generally referred to as a multinational corporation (MNC). An MNC

is a company that operates in two or more countries, leveraging the global environment
to approach varying markets in attaining revenue generation.

6. non government corporation

- A non-governmental organization (NGO) is an organization independent of the

government whose primary mission is not commercial and that focuses on social,
cultural, environmental, educational, and other issues.

What is common among these actors?

artificial personality

-can be sued

-constituted by laws

-membership

-taxes - blood and life of political structures

————————————————————————————-
Feb 1

nation - group of people living in a territorial ; with common culture, tradition, etc. that influence
behavior

state - community of people living a particular jurisdiction under one government and free of
external control

4 elements of state:
1. people
2. territory
3. government
4. sovereignty - supreme power free of external control

supreme power of the state - there is no other power; without this, chaos might happen

Actors of globalization;
1. multinational corporations - actors of globalization; operating in different countries but
have headquarters
ex: nestle, cocacola
2. transnational corp - china and india are advocates of transnational corp
3. international government org
4. international non government org

————————————————————————————-

Feb 19

UN Agreement

Geneva convention (???) - a country that has better economy is obliged to let other countries
borrow money; rules applicable for armed conflicts that protect people who are not or are no
longer taking part in hostilities

ex: america let’s ph borrow money

it is encouraged to deposit money in banks rather than piggy banks. banks use this as capital to
circulate money.

1963 - new york suffered-bankrupt

 ● neighboring states tried to help but to no avail
● pina utang kaya na secure

the world bank - was created to finance and reconstruct countries torn by war

● bound to finance…
● Manila - 2nd devastated city

IMF - inuutangan to enhance economy

- made a condition to grant the Philippines loan for establishing Senior High School. thus,
removing it is deemed not feasible.

tariffs - charges on imported and exported commodities

neoliberalism - minimizing of government intervention; economic political ideology; government

should not interfere; but they have SRP or suggested retail price

● you are allowed to have maximization of profit limit

International Monetary Fund (IMF) - “economic globalization" is a historical process representing

the result of human innovation of technological progress

- increasing integration of economies around the world through the movement of goods
,services, & capital across the world.

International Trading Systems

- oldest known international Trade Route was the "Silk Road"
- it spanned from China to the Middle East to Europe.
- it was used by Traders when the Dynasty opened trade to the West (today’s Europe), until the
Ottoman Empire dared it (130 BCE- 1453 BCE)
- It was international but it global since there were no ocean routes
“Peninsulares"-> Filipinos born in Spain
"Insulares" -> Filipinos born in the Philippines (2nd class Spaniards)

Peninsulares - people who were born in Spain (the Iberian Peninsula) and moved to the
Philippines. They held higher positions in the colonial administration and society.

Insulares - people of Spanish descent but born in the Philippines. They were considered lower
in social status compared to the Peninsulares but still held privileges over the majority of the
local population.

* Article XIV, Section 3(1) of the 1987 Constitution of the Republic of the Philippines: all
educational institutions shall include the study of the Constitution as part of the curricula

- division of the world

Galleon trade was part of the age of mercantilism.
- global trade with multiple restrictions.
- economic power depends on colonies

Gold - Exchange rate system

OLD BASIS: gold standard (1970s) but never returned during the early 20th century
CURRENT: fiat currencies, currencies not backed by precious metals & whose value is
determined by their cost relative to other currencies.
-It allows government to freely and actively manage their economies by increasing/ decreasing
the amount of money in circulation as they see fit.

Stocked markets crashed (1913-1974) stopping the US from linking dollar to gold ending
Bretton Woods system.
- Resulted in STAGFLATION
- a decline in economic growth & employment (stagnation) alongside a sharp increase in
prices (inflation).

NEOLIBERALISM
- became the codified strategy of the US Treasury Dept, world Bank, IMF, & the World Trade
Organization (WTO)
- to continue the tariff reduction under the GATT (The General Agreement of Tariffs and Trades
1947)
-privatization of gov't controlled services like water, power, comes, & transport (free market).

What is the Keynesian theory of economics?

Keynes argued that inadequate overall demand could lead to prolonged periods of high
unemployment. An economy's output of goods and services is the sum of four components:
consumption, investment, government purchases, and net exports (the difference between what
a country sells to and buys from foreign countries).

———————————————————————
Feb 26

Neoliberalism - linked to twilight of sovereignty

global corporation - prime actor of globalization

elements
theoretical
physical

——————————————————————-
Feb 29

transportation - factor why products become more expensive

international economic integration - central tenet of globalization. It is so crucial to the

process that many writers and commentators confuse this integration for the entirety of
globalization.

lenses and scapes of globalization include economic and finance

international - balance of power and balance of terror

- talking about countries that can influence that can influence decision of state heads

Chapter 3

league of nations - ?
asean -

Scholars look at trade deals between states. They also study political, military, and other
diplomatic engagements between two or more countries. These scholars are studying
international relations. Moreover, when they explore the deepening of interactions between
states, they refer to the phenomenon of internationalization (does not equal globalization)

international sovereignty - ????… without any interference

states are one of the actors of globalization

economics and politics are inseparable

World politics today has four key attributes:

- First, there are countries or states that are independent and govern themselves.
- Second, these countries interact with each other through diplomacy.
- Third, there are international organizations, like the United Nations (UN), that facilitate
these interactions.
- Fourth, beyond simply facilitating meetings between states, international organizations
also take on lives of their own.

centralized government - most important legacy of spain to philippines

———————————————————————

state - political
nation - racial

state necessitate the existence of a nation while the existence of a nation does not necessitate
the existence of a state

a nation may occupy 2 or more states

ex: korea - the people of north and south korea are the same people but they are separated by
different ideology

The nation-state is composed of two non-interchangeable terms: Not all states are nations
and not all nations are states.

- The nation of Scotland, for example, has its own flag and national culture, but still
belongs to a state called the United Kingdom.
- Closer to home, many commentators believe that the Bangsamoro is a separate nation
existing within the Philippines but, through their elites, recognizes the authority of the
Philippine state.
- Meanwhile, if there are states with multiple nations, there are also single nations with
multiple states. The nation of Korea is divided into North and South Korea, whereas the
"Chinese nation" may refer to both the People's Republic of China (the mainland) and
Taiwan.

What then is the difference between nation and state?

 - state refers to a country and its government, i.e., the government of the Philippines.

A state has 4 attributes:

- First, it exercises authority over a specific population, called its citizens.

- Second, it governs a specific territory.
- Third, a state has a structure of government that crafts various rules that people (society)
follow.
- Fourth and the most crucial, the state has sovereignty over its territory. Sovereignty here
refers to internal and external authority.

The Interstate System

- The origins of the present-day concept of sovereignty can be traced back to the Treaty of
Westphalia, which was a set of agreements signed in 1648 to end the Thirty Years' War
between the major continental powers of Europe.

The Westphalian system - provided stability for the nations of Europe, until it faced its first
major challenge by Napoleon Bonaparte.

Bonaparte believed in spreading the principles of the French Revolution--liberty, equality, and
fraternity--to the rest of Europe and thus challenged the power of kings, nobility, and religion in
Europe.

Absolute veto power - no rule of majority. kung ano decision ng may absolute veto power yon
ang masusunod.
- 5 permanent members of security council (the United States, China, France, Russia, and
the United Kingdom)

Others imagine a system of heightened interaction between various sovereign states,

particularly the desire for greater cooperation and unity among states and peoples. This desire
is called internationalism.

Internationalism comes in different forms, but the principle may be divided into two broad
categories: liberal internationalism and socialist internationalism.

————————————————————————
 Reviewer
Unit 1:

Gio and Latif's story is fictional but very plausible since it is, in fact, based on the real-life
experience of one of the authors. It was through such friendships that one was able to
appreciate the meaning and impact of globalization.

When a newspaper reports that nationalists are resisting "globalization," it usually refers to
the integration of the national markets to a wider global market signified by the increased free
trade.

When activists refer to the "anti-globalization" movement of the 1990s, they mean resisting
the trade deals among countries facilitated and promoted by global organizations like the World
Trade Organization.

Academics differ from journalists and political activists, however, because they see globalization
in much broader terms. Academics call this an interdisciplinary approach, and it is this
approach used by the general education (GE) courses that you will be taking alongside this one.

Expansion refers to "both the creation of new social networks and the multiplication of existing
connections that cut across traditional political, economic, cultural, and geographic boundaries."

Intensification refers to the expansion, stretching, and acceleration of these networks.'

example: there has always been a strong financial market connecting London and New York.
With the advent of electronic trading, however, the volume of that trade increases exponentially,
since traders can now trade more at higher speeds. The connection is thus accelerating.

Steger notes that "globalization processes do not occur merely at an objective, material level
but they also involve the subjective plane of human consciousness." - this means people begin
to feel that the world has become a smaller place and distance has collapsed from thousands of
miles to just a mouse-click away.

According to Steger, Globalism is a widespread belief among powerful people that the global
integration of economic markets is beneficial for everyone, since it spreads freedom and
democracy across the world.

For anthropologist Arjun Appadurai, different kinds of globalization occur on multiple and
intersecting dimensions of integration that he calls "scapes."
1. "ethnoscape," for example, refers to the global movement of people, while
2. "mediascape" is about the flow of culture.
3. A "technoscape" refers to the circulation of mechanical goods and software; a
4. "financescape" denotes the global circulation of money;
5. and an "ideoscape" is the realm where political ideas move around.
 Unit 2:

The International Monetary Fund (IMP) regards "economic globalization" as a historical

process representing the result of human innovation and technological progress. It is
characterized by the increasing integration of economies around the world through the
movement of goods, services, and capital across borders.

According to the IMF, the value of trade (goods and services) as a percentage of world GDP
increased from 42.1 percent in 1980 to 62.1 percent in 2007

International trading systems are not new. The oldest known international trade route was
the Silk Road--a network of pathways in the ancient world that spanned from China to what is
now the Middle East and to Europe. It was called as such because one of the most profitable
products traded through this network was silk, which was highly prized especially in the area
that is now the Middle East as well as in the West (today's Europe).

Traders used the Silk Road regularly from 130 BCE when the Chinese Han dynasty opened
trade to the West until 1453 BCE when the Ottoman Empire closed it.

According to historians Dennis O. Flynn and Arturo Giraldez, the age of globalization began
when "all important populated continents began to exchange products continuously-both with
each other directly and indirectly via other continents-and in values sufficient to generate crucial
impacts on all trading partners."

Flynn and Giraldez trace this back to 1571 with the establishment of the galleon trade that
connected Manila in the Philippines and Acapulco in Mexico."
-This was the first time that the Americas were directly connected to Asian trading routes.

The galleon trade was part of the age of mercantilism. From the 16th century to the 18th
century, countries, primarily in Europe, competed with one another to sell more goods as a
means to boost their country's income (called monetary reserves later on).

a more open trade system emerged in 1867 when, following the lead of the United Kingdom, the
United States and other European nations adopted the gold standard at an international
monetary conference in Paris. The countries thus established a common basis for currency
prices and a fixed exchange rate system--all based on the value of gold.

During World War I, many were forced to abandon the gold standard. Since European
countries had low gold reserves, they adopted floating currencies that were no longer
redeemable in gold.
Great Depression - became more difficult as the global economic crisis started during the
1920s and extended up to the 1930s, further emptying government coffers. This depression was
the worst and longest recession ever experienced by the Western world. Some economists
argued that it was largely caused by the gold standard, since it limited the amount of
circulating money and, therefore, reduced demand and consumption. If governments could
only spend money that was equivalent to gold, its capacity to print money and increase the
money supply was severely curtailed.

Economic historian Barry Eichengreen argues that the recovery of the United States really
began when, having abandoned the gold standard, the US government was able to free up
money to spend on reviving the economy.

Today, the world economy operates based on what are called fiat currencies--currencies that
are not backed by precious metals and whose value is determined by their cost relative to other
currencies. This system allows governments to freely and actively manage their economies by
increasing or decreasing the amount of money in circulation as they see fit.

stock markets crashed in 1973-1974 after the United States stopped linking the dollar to
gold, effectively ending the Bretton Woods system." The result was a phenomenon that
Keynesian economics could not have predicted--a phenomenon called stagflation, in which a
decline in economic growth and employment (stagnation) takes place alongside a sharp
increase in prices (inflation).

Economists such as Friedrich Hayek and Milton Friedman argued that the government's
practice of pouring money into their economies had caused inflation by increasing demand for
goods without necessarily increasing supply. More profoundly, they argued that government
intervention in economies distorts the proper functioning of the market.

Economists like Friedman used the economic turmoil to challenge the consensus around
Keynes's ideas. What emerged was a new form of economic thinking that critics labeled
neoliberalism.

From the 1980s onward, neoliberalism became the codified strategy of the United States
Treasury Department.

World Trade Organization (WTO)-a new organization founded in 1995 to continue the tariff
reduction under the GATT. The policies they forwarded came to be called the Washington
Consensus.

The Washington Consensus dominated global economic policies from the 1980s until the
early 2000s. Its advocates pushed for minimal government spending to reduce
government debt.
The appeal of neoliberalism was in its simplicity. Its advocates like US President Ronald
Reagan and British Prime Minister Margaret Thatcher justified their reduction in government
spending by comparing national economies to households.

Despite the initial success of neoliberal politicians like

Thatcher and Reagan, the defects of the Washington Consensus became immediately
palpable. A good early example is that of post-communist Russia. After Communism had
collapsed in the 1990s, the IMF called for the immediate privatization of all government
industries. This practice has entrenched an oligarchy that still dominates the Russian economy
to this very day.

Russia's case was just one example of how the "shock therapy" of neoliberalism did not
lead to the ideal outcomes predicted by economists who believed in perfectly free markets.

Until now, countries like Spain and Greece are heavily indebted (almost like Third World
countries), and debt relief has come at a high price.

The United States recovered relatively quickly thanks to a large Keynesian-style stimulus
package that President Barack Obama pushed for in his first months in office.

Economic Globalization Today:

According to the IMF, the global per capita GDP rose over five-fold in the second half of the
20th century. It was this growth that created the large Asian economies like Japan, China,
Korea, Hong Kong, and Singapore.

The beneficiaries of global commerce have been mainly transnational corporations (TNCs)
and not governments.

The term "race to the bottom" refers to countries' lowering their labor standards, including the
protection of workers' interests, to lure in foreign investors seeking high profit margins at the
lowest cost possible. Governments weaken environmental laws to attract investors,
creating fatal consequences on their ecological balance and depleting them of their finite
resources (like oil, coal, and minerals).

Conclusion: International economic integration is a central tenet of globalization. In fact, it is

so crucial to the process that many writers and commentators confuse this integration for the
entirety of globalization.
 Unit 3

World politics today has four key attributes:

- First, there are countries or states that are independent and govern themselves.
- Second, these countries interact with each other through diplomacy.
- Third, there are international organizations, like the United Nations (UN), that facilitate
these interactions.
- Fourth, beyond simply facilitating meetings between states, international organizations
also take on lives of their own.

"country," or what academics also call the nation-state.