Module 4 - Theories of Global Stratification

Learning Objectives
1. Understand the various Theories of Global Stratification to analyze and interpret the
hierarchical social structures existing in the global context.
2. Discuss the concepts of Social and Economic Inequality in the Global context,
examining the factors contributing to disparities in wealth, opportunities, and access to
resources on a global scale.
3. Analyze the intersection of Global Stratification Theories with business practices,
emphasizing the importance of recognizing and addressing social and economic
disparities in a globalized business environment to foster ethical decision-making and
sustainable business development.
4. Evaluate the Implication of Global Stratification for Business Administration Students,
recognizing how social and economic inequality impacts business strategies, market
dynamics, and organizational practices in an increasingly interconnected world.

Reminder to Students: Utilizing Outcome-Based Modules Effectively

Dear Students,

As you engage with our outcome-based modules, it is essential to keep in mind a few
key points to maximize your learning experience and success. Here are some important
reminders:
1. Understand the Learning Outcomes:
- Take the time to thoroughly review and understand the learning outcomes of each
module. These outcomes serve as a roadmap for your learning journey and outline the
specific knowledge and skills you are expected to acquire.
2. Align Your Efforts with the Outcomes:
- Ensure that your study efforts and activities are aligned with the stated learning
outcomes. Focus on activities that directly contribute to achieving these outcomes to
make the most of your learning experience.
3. Engage Actively in Learning Activities:
- Participate actively in all learning activities, discussions, and assignments provided in
the module. These activities are designed to help you apply your knowledge and skills
in real-world scenarios.

4. Seek Clarification When Needed:

- Do not hesitate to seek clarification from instructors or peers if you encounter any
challenges or have questions regarding the content or learning objectives. Clearing up
any confusion early on can enhance your understanding.
5. Reflect on Your Progress:
- Regularly reflect on your progress towards the learning outcomes. Evaluate your
strengths and areas for improvement to adjust your study strategies accordingly.
6. Utilize Feedback Effectively:
- Pay close attention to feedback provided on assessments and assignments. Use this
feedback as a learning opportunity to enhance your skills and address any areas that
need improvement.
7. Stay Organized and Manage Your Time
- Stay organized by setting goals, creating a study schedule, and managing your time
effectively. Prioritize tasks based on their alignment with the learning outcomes to stay
on track.
8. Collaborate with Peers:
- Engage in collaborative learning with your peers to exchange ideas, discuss concepts,
and enhance your understanding of the module content. Peer interactions can provide
valuable insights and perspectives.
By following these reminders and actively engaging with the outcome-based modules,
you can make the most of your learning experience and achieve the desired learning
outcomes effectively. Remember that your dedication and commitment to your studies
play a crucial role in your academic success.

Best wishes for a successful learning journey!

 Module 4 - Theories of Global Stratification
DISCUSSION

In Module 4 of The Contemporary World, we will delve into the complex theories of
stratification that shape social and economic hierarchies on a global scale. By
examining the dynamics of global stratification, understanding social and economic
inequality, and exploring the implications for Business Administration students, we gain
insights into the interconnected nature of global structures and their impact on
businesses and societies worldwide.

Overview of Global Stratification Theories:

Global stratification theories provide frameworks for understanding the hierarchical
divisions that exist within and between countries on a global level. From traditional
views of economic class divisions to modern perspectives on global wealth distribution,
these theories help us analyze the distribution of resources, power, and opportunities
within diverse populations worldwide. Key theories include the World Systems Theory,
Dependency Theory, and Modernization Theory, each offering unique insights into the
mechanisms of global stratification and the interconnectedness of societies in the
modern world.

Global Stratification Theories are key frameworks that provide insights into the
hierarchical divisions and economic disparities that exist on a global scale.
1. World Systems Theory:
Proponent: Immanuel Wallerstein
Overview: The World Systems Theory categorizes countries into core, semi-periphery,
and periphery based on their economic development levels and global integration.
Real-Life Example: The system of core, semi-periphery, and periphery countries
mirrors the global economic structure, with countries like the United States, China, and
Germany in the core, India and Brazil in the semi-periphery, and countries in Africa and
Southeast Asia in the periphery.

2. Dependency Theory:
Proponent: Raul Prebisch and Hans Singer
Overview: The Dependency Theory asserts that global inequality is perpetuated by the
unequal exchange of resources between developed and developing countries.
Real-Life Example: The relationship between former colonial powers and their colonies
exemplifies dependency, with historical exploitation and unequal trade relations
continuing to impact countries in Africa, Asia, and Latin America.

3. Modernization Theory:
Proponent: Walt Rostow
Overview: The Modernization Theory posits that societies evolve through stages of
economic development, with industrialization and modernization leading to increased
wealth and progress.
Real-Life Example: The transformation of South Korea from an agricultural economy to
a technological hub showcases the principles of modernization theory, highlighting how
industrialization and innovation can drive economic growth and societal advancement.
By examining these Global Stratification Theories alongside their proponents and real-
life applications, we gain a deeper understanding of the complex dynamics of global
inequality, economic development, and social progress in an interconnected world.

Social and Economic Inequality in the Global Context:

Social and economic inequality is a pervasive issue that affects individuals,
communities, and nations across the globe. Disparities in income, wealth, education,
and healthcare contribute to systemic inequalities that perpetuate social stratification on
a global scale. The Global Gini Index, Human Development Index, and Poverty Rate
are essential indicators of social and economic inequality, providing valuable insights
into the distribution of resources and opportunities among different populations.
Understanding these indicators helps us analyze the root causes of inequality and
identify strategies to promote social equity, reduce poverty, and enhance human
development outcomes worldwide.

Implication of Global Stratification for Business Administration Students:

The implications of global stratification for Business Administration students are
profound, as they navigate a competitive and dynamic business environment shaped by
social and economic disparities. Understanding the impact of global stratification on
business practices is crucial for developing ethical decision-making skills, fostering
diversity and inclusion in the workplace, and addressing social responsibility in
corporate governance. By recognizing the implications of global stratification, Business
Administration students can leverage their knowledge to promote sustainable business
practices, advocate for ethical standards, and drive social impact initiatives that
contribute to a more equitable and inclusive global economy.
The Implications of Global Stratification for Business Administration Students are
significant, as understanding social and economic inequalities on a global scale can
inform ethical decision-making, diversity initiatives, and sustainable business practices.
Let's delve into the implications for Business Administration students, along with real-life
examples and references.

Implications of Global Stratification for Business Administration Students:

1. Ethical Decision-Making:
Business Administration students must consider the ethical implications of operating in a
global economy characterized by social and economic disparities. Understanding global
stratification can aid in making ethically sound decisions regarding supply chain
practices, labor conditions, and sustainability initiatives.
2. Diversity and Inclusion:
Recognizing the impact of global stratification enables students to appreciate diversity
and inclusion in the business environment. Addressing social and economic inequalities
promotes a diverse workforce, inclusive policies, and equitable opportunities for
employees from different backgrounds.
3. Sustainable Business Practices:
Global stratification highlights the disparities in resource distribution and environmental
impact around the world. Business Administration students can leverage this
understanding to promote sustainable practices, reduce environmental footprint, and
contribute to social responsibility initiatives within organizations.
Examples:
1. Ethical Decision-Making:
Apple Inc.'s ethical sourcing practices in its supply chain, ensuring fair labor conditions
and responsible sourcing of raw materials, reflect a commitment to ethical decision-
making in a globally stratified environment.
2. Diversity and Inclusion:
Unilever's diversity initiatives promoting gender equality and cultural diversity in its
workforce showcase the importance of inclusive practices in a globalized business
setting.
3. Sustainable Business Practices:
Patagonia's sustainable business model, focusing on environmentally friendly
production methods and conservation efforts, demonstrates how companies can
integrate sustainability into their core business strategies.

References:

1. Andersen, M. L., & Taylor, H. F. (2007). Sociology: The essentials. Cengage

Learning.
2. Inglehart, R., & Norris, P. (2019). Cultural Backlash: Trump, Brexit, and Authoritarian
Populism. Cambridge University Press.
3. Lauffer, A. (2017). What is social stratification? Definition, theories & examples.
Study.com.
4. Ravelli, B., & Webber, M. (2016). Exploring sociology: A Canadian perspective.
Pearson Canada.
5. Wallerstein, I. (1974). The Modern World-System I: Capitalist Agriculture and the
Origins of the European World-Economy in the Sixteenth Century. University of
California Press.
6. Prebisch, R., & Singer, H. W. (1950). The Economic Development of Latin America
and Its Principal Problems. United Nations Economic Commission for Latin America.
7. Rostow, W. W. (1960). The Stages of Economic Growth: A Non-Communist
Manifesto. Cambridge University Press.
8. Lynch, R., & O'Sullivan, D. (2012). Strategic management. Pearson Education.
9. Porter, M. E., & Kramer, M. R. (2011). Creating shared value. Harvard Business
Review.
10. Goffee, R., & Scase, R. (2015). Eileen Fisher: Repositioning the Brand. Harvard
Business School.
11. Ross, B. H., & Hartl, T. R. (2019). Garment Industry Responses To Economic
Globalization: Extending The Postcolonial Exchange Theory. Journal of
International Studies.
Summative Evaluation Activity: Case Study on Theories of Global Stratification

Title: Bridging Global Divides: Navigating Economic Disparities in Modern Society

Scenario:
You and your team of four Business Administration students are tasked with analyzing
and addressing the implications of global stratification on business practices. Over the
course of seven days, you will work collaboratively to develop solutions to mitigate
social and economic inequalities and promote ethical decision-making in a globalized
business environment.

Day 1: Research and Analysis

Each team member conducts research on one of the Global Stratification Theories
(World Systems, Dependency, Modernization) and their implications on business.
Summarize key points and identify real-life examples illustrating each theory's impact on
global business practices.

Day 2: Problem Identification

a. Collaborate to identify specific challenges arising from global stratification in
business operations.
b. Assign each team member a particular aspect of the identified problems to
analyze:

Team Member 1: Social inequality within supply chains

Team Member 2: Economic disparities in market access
Team Member 3: Cultural barriers affecting international business relations
Team Member 4: Environmental sustainability challenges

Day 3-5: Solution Development

a. Work individually to brainstorm innovative solutions to address the assigned

problems.
b. Consider the ethical, social, and economic implications of each proposed
solution.
c. Collaborate to integrate individual solutions into a comprehensive strategy to
address the overarching challenges of global stratification in business.
Day 6: Implementation Plan
a. Allocate tasks among team members to create an implementation plan for the
proposed solutions.
b. Outline specific steps, timelines, and responsibilities for executing the strategies
developed to address the identified challenges.

Day 7: Presentation and Reflection

a. Prepare a final presentation outlining the research, problem analysis, solutions, and
implementation plan.
b. Each team member presents their findings and recommendations to the group,
emphasizing the collaborative effort and innovative solutions proposed.
c. Reflect on the learning outcomes, insights gained, and the importance of
understanding theories of global stratification in driving ethical decision-making and
sustainable business practices in a diverse world.

Evaluation Criteria:
Research and Analysis (20%): Depth of understanding of the Global Stratification
Theories and their implications.
Problem Identification (20%): Identification of specific challenges related to global
stratification in business.
Solution Development (30%): Creativity and feasibility of proposed solutions for
addressing the identified problems.
Implementation Plan (20%): Clarity and effectiveness of the outlined steps for
executing the proposed strategies.
Presentation Skills (10%): Communication, teamwork, and professionalism
demonstrated during the final presentation.

This Summative Evaluation Activity aims to test your problem-solving skills, critical
thinking abilities, and collaborative teamwork in developing solutions to address the
complex challenges of global stratification in a business context. Good luck!l