CHAPTER 1 -GLOBALIZATION

Prepared by: LOVELY ROSE A. MASAGLANG

 Learning Objectives:
At the end of the lesson, the students should be able to:
define and discuss globalization and its underlying
philosophies;
appreciate the importance of globalization in all
aspect of life
participate in class and group discussion.
 Have you tried
listen to songs in
Spotify or
YouTube
Music?
Do you
crave
for this?
Do you have an
account
on this?
Do you have
things from
foreign
brands?
 The
The Modern
Contemporary
World
World
ACTIVITY

Directions:

Complete the concept map by

GLOBALIZATION
providing words/ sentences which
will define globalization
 GLOBALIZATION
Definition of Globalization.
Globalization is the increasing interaction of people, states, or , or
countries through the growth of the international flow of money,
ideas, and culture. Thus, globalization is primarily focus on
economic process of integration that has social and cultural
aspects.
It is the interconnectedness of people and business across the
world that eventually lead to global, cultural, political, and
economic integration.
 GLOBALIZATION
Definition of Globalization.

It is the ability to move and communicate easily with others all

over the world in order to conduct business internationally.

It is the free movement of goods, services, and people across

the world in a seamless and integration manner.
 GLOBALIZATION
Definition of Globalization.

It is the liberation of countries of their impact protocols and

welcome foreign investment into sectors that are the mainstays
of its economy.

It refers to countries acting like magnets attracting global capital

by opening up their economies to multinational corporations
GLOBALIZATION as defined by other Authors

“Globalization as process by which the people of the world are

incorporated into single world society” – Martin Albrow and
Elizabeth King

“Globalization as the intensification of worldwide social relations

which link distant localities in such a way that local happening
are shaped by events occurring many miles away and vice
versa.” – Anthony Giddens (The Consequence of Modernity)
GLOBALIZATION as defined by other Authors

“Globalization as the compression of the world and the

intensification of the consciousness of the world as a whole.” –
Prof. Roland Robertson (Sociology), 1992, University of Aberdeen
 Characteristics of Globalization
1. There is social mobility of movement of people regardless
of reason
2. There is an intensification of interactions
3. It’s an active process
4. Borderless interaction
5. Spread of ideas, knowledge, technology, culture, religion,
etc.
Historical Foundation of the term “Globalization”

BEFORE THE
AGE OF 1900’S 20th
AGE OF 1820’s
DISCOVERY
DISCOVERY CENTURY

1897, CHARLES TAZE RUSSEL (Watch tower bible and tract society) coined
the term CORPORATE GIANTS, referring to a large national trust and other
large enterprises of the time.
1930, The word “Globalize” as a noun appeared in a
publication entitled” Towards new education” where it
denoted a holistic view of human experience in education
Historical Foundation of the term “Globalization”

Late 1970’s – Globalization was coined

Early 1981 – Globalization was used as an economic sense
Late 1980’s – Globalization was popularized by Theodore Levitt
Late 2000’s – The IMF identified four basic aspect of globalization
2013, the globalization was used to define “borderless society”
2017, Globalization was often used in the Academe
2018, Globalization was now used in all disciplines
Indicators of Globalization
Interdependence of countries in different social aspects
Advancement of science, technology etc
Environmental issues across borders
Sub-Categories of Globalization:
Economic globalization, cultural globalization, and
political globalization
 Nature of Globalization
1. A conglomerate of various multiple units located in
different parts of the globe which are linked by
common ownership.

2. Multiple units draw a common pool of resources such as

money, credit, information, patents, trade names and
control system.
 Nature of Globalization

3. The units respond to some common strategy.

• Product presence is in different markets of the world.
• Human resources are highly diverse.
• Transactions involving intellectual properties such as
copyright, patents, trademarks, and process
technologies are across the globe.
Reason for Globalization

Rapid shrinking of time and distance across the globe.

One can easily cross the bridge going to the other side
of the market place due to advance tools of
technology than before

Domestic markets are no longer rich as a consequence

of many interlocking factors.
Reason for Globalization
Companies and institutions go global to find political
and economic stability which is relatively good in the
countries than the country of origin.
To get technological and managerial know-how of
other countries due to their advancement in science,
technology, education, health, and other fields of
discipline.
Reason for Globalization
To reduce high transportation cost if one goes globally
using the advance tools of communication and
information.

To be close to raw materials and to markets for their

finished products which are not available in the country
of origin.
Reason for Globalization
The creation of the World Trade Organization (WTO) had
made it possible in stimulating increased cross border
trade. There are other world bodies like the UN and
several arbitration bodies where countries agree.
 Stages of Globalization
▪ Stage 1. The first stage is the arm’s length service activity
of an essentially domestic company/institution which
moves into new market overseas by linking up with local
dealers and distributors.

▪ Stage 2. In this stage, the company/institution takes over

these activities on its own.
 Stages of Globalization
▪ Stage 3. In this stage, the domestic-based company
institution begins to carry out its own manufacturing
marketing and sales in key foreign markets.
▪ Stage 4. In this stage, the company /institution moves to
a full insider position in these markets supported by a
complete business system including Research and
Development (R&<D) and engineering. However, the
headquarters mentality continues to dominate.
 Stages of Globalization
▪ Stage 5. In this stage, the company/institution moves
towards a genuinely global mode of operation. In this
stage, global localization happens, that is, the
company institution serves local customers in market
around the globe responding to their needs. This
requires an organizational transition i.e.; the company
must denationalize its operations and create a system
of values shared by global managers.
Dimensions of Globalization
Manfred Steger, professor of Global Studies at the
University of Hawaii at Manoa argues that globalization
has four main dimensions: economic, political, cultural,
ecological, with ideological aspects of each category.
 Merits of Globalization

An open economy spur

fast innovation with fresh Exports jobs often pay Productivity grows
ideas from abroad more than other jobs more quickly when
countries produce
goods and services in
which they are of
comparative
advantageous
Demerits of Globalization

Exploitation of Harmful Effects on Small

Widening of
Underdeveloped Industries and Small
Countries Rich-poor Gap Business
CMCian.