TCW Part 1 Midterm 2nd - Sem.2021!22!2

Republic of the Philippines

NUEVA VIZCAYA STATE UNIVERSITY

Bambang, Nueva Vizcaya
INSTRUCTIONAL MODULE
IM No.: IM-GEWRLD-2nd SEM-2021-2022

College: ARTS AND SCIENCES

Campus :Bambang
DEGREE BSINTE 1A, 1B, 1C and BSIT COURSE NO. GEWRLD

PROGRAM 1A
SPECIALIZATION InfoTech., MTE COURSE TITLE THE CONTEMPORARY WORLD
YEAR LEVEL 1st YEAR TIME FRAME 6 hours WK NO. 1-2 IM NO. 1
I. INTRODUCTION AND THEORETICAL APPROACHES TO GLOBALIZATION
II.LESSON TITLE: INTRODUCTION TO GLOBALIZATION
1.1 Definition of Globalization

1.2 Historical Foundations of the term Globalization
1.3 Nature of Globalization
1.4 Dimensions of Globalization
1.5 Importance of Studying Globalization
1.6 Different Competing Concepts of Globalization
1.7 Characteristics and Qualities of Globalization as a Phenomenon
III.LESSON OVERVIEW
The lesson provides the students an overview on the concept of Globalization. In this module,
students will learn the different concepts of globalization that they are now experiencing in real-life situation
as a 21st century learner.
IV.DESIRED LEARNING OUTCOMES
At the end of the discussions, the students are expected to:
1. share a personal definition of globalization;
2. describe the natures of globalization;
3. differentiate competing conception of globalizations;
4. discuss the characteristics and qualities of globalization as a phenomenon; and
5. Identify the underlying philosophies of the varying definitions of globalization; and
6. synthesize and agree on a working definition of globalization for the course
V.LESSON CONTENT
Introduction
The birth of information technology

contributed to the big shift in the way we make
things; in the field of business, economics,
education, politics, government and others. Who
was behind the formation of international
organization such as WTO, APEC, ASEAN, UN
and others? What are the impacts of this to the
different member-countries and vice-versa? Who
are gainers and losers because of globalization?
Globalization is relatively a novel idea in
the social sciences, although people who work in
and write about the mass media, transnational
corporations and international businesses have
been using it for some time. Jacques
Image source: https://www.pinterest.ph/pin/514395588664533285/ Maisonrouge, the French-born former President
of IBM World Trade, mentioned his view that: the future lies with global corporations who operate as if
the world had no real borders rather than organizations tied to a particular country.
NVSU-FR-ICD-05-00 (081220) Page 1 of 71
“In accordance with Section 185, fair use of a Copyright Work of Republic Act 8293; the copyrighted worked included in this material
may be reproduced for educational purposes and not for commercial distribution.”
1.1. DEFINITION OF GLOBALIZATION

Globalization is a term used to describe the changes in societies and the world economy that are
the result of dramatically increased trade and cultural exchange. In specifically economic contexts, it
refers almost exclusively to the effects of trade, particularly trade liberalization or "free trade".
It is a common belief that globalization plays a role just at international levels of trade and
commerce, but the fact is that it has played an important role in making our lives much more comfortable
too. The phones, apparels, gadgets or accessories that we use in our day-to-day life are be available to
us through globalization. Knowingly or unknowingly, we are all under the impact of globalization, and
more importantly it has helped in bringing international peace and justice to mankind.
1.2. HISTORICAL FOUNDATIONS OF THE TERM GLOBALIZATION
 Historians traced its usage long before the European Age of Discovery and voyages to the New
World, some even in the third millenium BC.
 Large-scale globalization began in the 1820’s.
 In the late 19th century and early 20th century, the connectivity of the world economies and cultures
grew very quickly.
 1897, Charles Taze Russel of the Watchtower and Bible Tract Society of the Jehovah’s Witnesses
in Brooklyn, New York, coined a related term, corporate giants. This term was largely national
trust and other large enterprises of the time.
 Late 1970’s, the world globalization was coined.
 In 2013, this term globalization was used to mean borderless society referring to international
migration.
 Early part of 1981, the term globalization had been used in its economic sense.
 Late half of 1980’s, Theodore Levit popularized the term globalization by bringing it into the
mainstream business audience.
 Late in 2000’s, the International Monetary Fund (IMF) identified four basic aspect of globalization:
1)trade and transaction; 2)capital and investment movement; 3)migration of knowledge; and 4)
dissemination.
 In 2017, the word globalization was oftenly used in teaching, in discussion, in meetings and
conferences, in lectures, etc.
1.3. NATURE OF GLOBALIZATION
Liberalization: It stands for the freedom of the entrepreneurs to establish any industry or trade or
business venture, within their own countries or abroad.
Free trade: It stands for free flow of trade relations among all the nations. Each state grants MFN (most
favored nation) status to other states and keeps its business and trade away from excessive and hard
regulatory and protective regimes.
Globalization of Economic Activity: Economic activities are be governed both by the domestic
market and also the world market. It stands for the process of integrating the domestic economy with
world economies.
Liberalization of Import-Export System: It stands for liberating the import- export activity and
securing a free flow of goods and services across borders.
Privatization: Keeping the state away from ownership of means of production and distribution and
letting the free flow of industrial, trade and economic activity across borders.
Increased Collaborations: Encouraging the process of collaborations among the entrepreneurs with
a view to secure rapid modernization, development and technological advancement.
Economic Reforms: Encouraging fiscal and financial reforms with a view to give strength to free world
trade, free enterprise, and market forces.
Globalization accepts and advocates the value of free world trade, freedom of access to world markets
and a free flow of investments across borders. It stands for integration and democratization of the
world’s culture, economy and infrastructure through global investments.
See also: explainitychannel. (July 11, 2013). Globalization explained (explainity® explainer video). Retrieved August 11,2020
from https://youtu.be/JJ0nFD19eT8
1.4. DIMENSIONS OF GLOBALIZATION

Economic – global scope of finance and economy, multinationals, networking, international trade and
business, new labor markets and new development cooperation.
Political – human rights, international tourism, war and new security problems.
Democracy – good governance by people’s participation around the world - human rights.
Ecological – sustainable globalization; use of common resources and legislation (biosphere: water,
forest, air, earth and atmosphere).
Cultural – multicultural society of different identities: local, political, gender, family, religious, national,
individual and social groups.
1.5. IMPORTANCE OF STUDYING GLOBALIZATION
a. There is a greater demand in business and industry, health, engineering and technology to have
people, who can work with other nations with varied culture.
b. There is a greater demand of promoting the local business and industry to other countries.
c. The contemporary world faces global challenges that will take interdisciplinary groups to solve these
challenges on how to provide access to clean water, clean environment, clean renewable energy that
is affordable to everyone.
d. Creating a meaningful, harmonious and workable relationship that link globally.
e. Knowledge of merits and demerits and reasons of globalization will enable the students to work as a
model of collaborative international team in the near future in the are of business, education, health,
science, arts, engineering, hotel industries and others.
1.6. DIFFERENT CONCEPTS AND COMPETING CONCEPTS OF GLOBALIZATION

Different Concepts
Cultural globalization refers to the transmission of ideas, meanings, and values around the world in
such a way as to extend and intensify social relations. This process is marked by the common
consumption of cultures that have been diffused by the Internet, popular culture media, and
international travel.
Economic globalization refers to the increasing interdependence of world economies as a result of

growing scale of cross-border trade of commodities and services, flow of international capital and wide
and rapid spread of technologies (Shangquan, 2000).
Industrial Globalization. Every country in the world is moving towards specialization. Specialization may
be referred to as the phenomenon of producing only that product in which the country has competitive
advantage in terms of cost. For example, Singapore specializes in pharmaceutical while the US
specializes in military equipment.
Therefore, the countries exchange their industrial products, which is known as trade, and fulfill the
requirements of their people. Every country of the world today is involved in trade and is depended on
some other country one way or the other. The US is the biggest economy in the world and even that is
depended on other countries for many of its needs. Hence the industries of the world today are
considered to be working not for their native countries but for the world as a whole.
Financial Globalization. It may be defined as the emergence of worldwide financial markets and better
access to external financing for corporate, national and sub-national borrowers. Some projects in the
Philippines were sponsored by foreign investors. They may be in the form of international organizations
or independent investors.
The IMF and the World Bank today give funds to various countries for developmental projects. We
may say, that today the financial markets of the world have untied in such a way that finances are easily
available throughout the world.
Informational Globalization. This aspect of Globalization has perhaps had the greatest impact on the
world today. Sitting at one end of the world, you can have access to the information available in any other
part of the world with just the push of a button. Internet, television, telephone, fax, etc. are some of the
inventions that may be considered as a part of the informational Globalization process where the
information flow has dramatically increased between geographically remote areas of the world.
Social globalization refers to the sharing of ideas and information between and through different
countries. In today’s world, the Internet and social media is at the heart of this. Good examples of social
globalization could include internationally popular films, books and TV series. The Harry Potter/ Twilight
films and books have been successful all over the world, making the characters featured globally
recognizable. However, this cultural flow tends to flow from the center (i.e. from developed countries such
as the USA to less developed countries). Social globalization is often criticized for eroding cultural
differences.
Ecological globalization. The effects of globalization in the ecology are still not completely identified,
though some studies suggest that the process of globalization has many consequences in our ecology.
Globalization and the Politics. Through globalization, political issues such as the rights of women and
children are now currently discussed, many laws are now already implemented regarding the issues on
the rights of women and children.
Globalization with technology. Technology really plays a huge part in the life of every individual. Also,
through the advancement of technology we can now already communicate with others despite the
distance that separate us. And through our technology today, the process of globalization is now taking
place much faster.
Geographical. Globalization is moving towards the trend of a borderless world. We can now explore
different countries without having any dangers.
Globalization or Westernization? For westerners’ conception on the term globalization, scholars
attributed it as part of the growing imperialist mechanism of American and Western powers, which they
considered as the building blocks of technological and economic innovations. Such phases of
developments were interpreted as “westernization” in which they strongly linked the global events to the
American imperialism.
The idea of Westernization is deeply rooted in the Western World where often associated with the
Western culture and values. The World Wide Web (www) for example, is the hallmark for the integration
of western and eastern culture.
Competing Concepts of Globalization
 The formation of a global village - closer contact between different parts of the world, with
increasing possibilities of personal exchange, mutual understanding and friendship between
"world citizens".
 Economic globalization - "free trade" and increasing relations among members of an industry
in different parts of the world (globalization of an industry), with a corresponding erosion of
National Sovereignty in the economic sphere.
 Anti-Globalization - Many anti-globalism activists see globalization as the promotion of a
Corporatist agenda, which is intent on constricting the freedoms of individuals in the name of
profit. They even claim that increasing autonomy and strength of corporate entities increasingly
shape the political policy of nation-states. Globalization imposes credit-based economics,
resulting in unsustainable growth of debt and debt crises.
1. Peaceful Relations - Most of the countries have resorted to trade relations with each other
in order to boost their economy, leaving behind any bitter past experiences if any.
2. Employment - Considered as one of the most crucial advantages, globalization has led to
the generation of numerous employment opportunities. Companies are moving towards the
developing countries to acquire labor force.
3. Education - A very critical advantage that has aided the population is the spread of education.
With numerous educational institutions around the globe, one can move out from the home
country for better opportunities elsewhere.
4. Product Quality - The product quality has been enhanced so as to retain the customers.
Today the customers may compromise with the price range but not with the quality of the
product. Low or poor quality can adversely affect consumer satisfaction.
5. Cheaper Prices - Globalization has brought in fierce competition in the markets.
6. Communication - Every single information is easily accessible from almost every corner of
the world Circulation of information is no longer a tedious task, and can happen in seconds.
The Internet has significantly affected the global economy, thereby providing direct access to
information and products.
7. Transportation - Considered as the wheel of every business organization, connectivity to
various parts of the world is no more a serious problem. Today with various modes of
transportation available, one can conveniently deliver the products to a customer located at
any part of the world.
8. GDP Increase - Gross Domestic Product, commonly known as GDP, is the money value of
the final goods and services produced within the domestic territory of the country during an
accounting year.
9. Free Trade - Free trade is a policy in which a country does not levy taxes, duties, subsidies
or quota on the import/export of goods or services from other countries. There are countries
which have resolved to free trade in specific regions. This allows consumers to buy goods and
services, comparatively at a lower cost.
10. Travel and Tourism - Globalization has promoted tourism to great heights. International trade
among different countries also helps in increasing the number of tourists that visit different
places around the world.
11. External Borrowing - With the help of globalization, there is opportunity for corporate,
national, and sub-national borrowers to have better access to external finance, with facilities
such as external commercial borrowing and syndicated loans.
 Pro-Globalization - Supporters of free trade point out that economic theories such as
comparative advantage suggests that free trade leads to a more efficient allocation of resources,
with all those involved in the trade befitting. In general, they claim that this leads to lower prices,
more employment and better allocation of resources.
1. Health Issues. Globalization has given rise to more health risks and presents new threats
and challenges for epidemics. The dawn of HIV/AIDS. Having its origin in the wilderness of
Africa, the virus has spread like wildfire throughout the globe in no time. Food items are also
transported to various countries, and this is a matter of concern, especially in case of
perishable items.
2. Loss of Culture. With large number of people moving into and out of a country, the culture
takes a backseat. People may adapt to the culture of the resident country. They tend to follow
the foreign culture more, forgetting their own roots. This can give rise to cultural conflicts.
3. Uneven Wealth Distribution. It is said that the rich are getting richer while the poor are
getting poorer. In the real sense, globalization has not been able to reduce poverty.
4. Environment Degradation. The industrial revolution has changed the outlook of the
economy. Industries are using natural resources by means of mining, drilling, etc. which puts
a burden on the environment.
5. Disparity. Though globalization has opened new avenues like wider markets and
employment, there still exists a disparity in the development of the economies. Structural
unemployment owes to the disparity created. Developed countries are moving their factories
to foreign countries where labor is cheaply available.
6. Conflicts. It has given rise to terrorism and other forms of violence. Such acts not only cause
loss of human life but also huge economic losses.
7. Cut-throat Competition. Opening the doors of international trade has given birth to intense
competition. This has affected the local markets dramatically. The local players thereby suffer
huge losses as they lack the potential to advertise or export their products on a large scale.
Therefore, the domestic markets shrink.
Are These Signs of Globalization?
a. Increase in international trade at a faster rate than the growth in the world economy.
b. Increase in international flow of capital including foreign direct investment.
c. Greater trans-border data flow, using such technologies such as the Internet,
d. communication satellites and telephones
e. Greater international cultural exchange, for example through the export of

f. Hollywood and Bollywood movies.
g. Some argue that even terrorism has undergone globalization. Terrorists now
h. have attacked places all over the world.
i. Spreading of multiculturalism and better individual access to cultural diversity, with on the other
hand, some reduction in diversity through assimilation, hybridization, Westernization,
Americanization or Sinosization of cultures.
j. Erosion of national sovereignty and national borders through international agreements leading to
organizations like the WTO and OPEC.
k. Greater international travel and tourism.
l. Greater immigration, including illegal immigration.
m. Development of global telecommunications infrastructure.
n. Development of a global financial systems.
o. Increase in the share of the world economy controlled by multinational corporations.
p. Increased role of international organizations such as WTO, WIPO, IMF that deal with
international transactions.
q. Increase in the number of standards applied globally; e.g. copyright laws.
Globalization in The Philippines?

The country is taking part in the process of globalization ever since and until the country signed
agreements with World Trade Organization in 1995. Now, globalization is very effective in the
Philippines, it has allowed major changes in the nation like more labor, and more Filipino and foreign
companies has emerged in the nation in order to help the country’s developing economy.
Globalization can make the Philippines into a better nation if the Philippine leaders to make their
economy more advance through global trading and allowing more foreign investors to the help boost
the economy. And by accomplishing those goals, the Philippines should be able to reduce the poverty
level as well as increase labor force for job opportunities for those that are in need for a living.
However, since the poverty level is still increasing, most Filipinos has managed to find work overseas
and they have managed to seek better living than in the Philippines. The most effective factor in the
Philippines is education. The society’s mentality is to be educated and it’s with education that people
in the nation see their opportunity for a better life in the future.
1.7. CHARACTERISTICS AND QUALITIES OF GLOBALIZATION
Creation and Multiplication - involves creation of new and multiplication of existing social networks
and cultural activities thus, breaking the traditional norms and practices in the political, economic, and
cultural realms of most communities.
Expansion and Stretching - globalization is evident in the expansion and stretching of social operations
and connections, on how the financial markets and trading operate around the globe like the (WTO)
World Trade Organization, ASEAN Economic Community, World Economic Forum and European Union
brought to the expansion of local economies through opening their economies to the other parts of the
world.
Consciousness and Awareness - globalization involves the human consciousness and awareness.
People, as the primary actors of globalization are the front liners as reflected in their experiences. The
human consciousness is critical on how they impact the growing outcomes and markers of globalization.
Their daily actions such as global interdependence provide large-scale implications to the norms and
practices of the borderless world.
CONCLUSION
Globalization helps us in innumerable ways such as it increases competitions between the
markets having them to improve the quality of products that they are selling. it also provides new jobs
and it increases the employment rate. Moreover, it also spreads the knowledge of new inventions and it
helps in the spread of education too. without globalization we will not be able to be in our current states
nowadays. However, despite these positive effects, we still cannot deny the fact that there will always be
a negative impact of globalization.
One of the undesirable impacts of globalization is the environmental degradation where in the
environment is being ruined because the amount of raw materials needed to run industries and factories
is taking toll on the natural reserves of the planet earth.
Likewise, there is a growing gap between the rich and the poor because the rich are getting richer
while the poor are struggling for a square meal and they are getting poorer and poorer every day.
furthermore, it is also the reason why there is a rise in health risks because globalization bought people
from various countries together which makes it easier to transport viruses from one country to the other.
It is indeed that a globalization is a blessing and a curse at some point.
Globalization will always be there and it will never stop. It is only up to us how we will handle and
take it. Let us be flexible and open minded to the things that are coming to us but let us not forget to be
watchful because not everything we think are good is always good, because at the end of the day there
will always be an effect that we will never forget. always think of that globalization is full of opportunities
and threats.
Globalization is here to stay with us and it is better to embrace the concept and live with it, in this
contemporary world.
VI.LEARNING ACTIVITIES
Activity 1. Reflective Writing
My Globalization Story (21 Points)
 Use the illustration below to conceptualize your globalization story.
fashion
e-mail phones
GLOBALIZATION
travel shopping
education internet
Activity 2.
NVSU Vision: “A premier university in a global community.” Is NVSU as a university, a global school?
Why? (10pts)
Description: This rubric will help you know exactly what I am expecting to find in your essay.
4/ Needs
10/ Excellent 8/ Very Good 6/ Average
Improvement
The content is clear This content is mostly The writer defines Topic is not well-
and focused, that focused, and has the topic through defined and/or
holds the reader's some good details basic presentation. there are too many
attention through and quotes. topics.
relevant details.
Activity 3. List down events in the past that have captured the ideas of the public worldwide. Provide at
least three events for each region/continent in the world from 2010-2020. (12 Points)
Activity 4. Reflection Figure (9 Points)

Direction: Reflection figure that looks like a human figure. Determine what you have learned (the
knowledge that serves as your foundation to stand and keep); the things that you have realized and
appreciated (attitude towards learning) and the things you discovered (skills that you will cherish in life).
VII. EVALUATION
Short Quiz (True or False) – (10 Points)
Direction: Read and analyze each statement. Write the word TRUE if the statement is correct and FALSE
otherwise.
1. _____________ Today, the world has become a global village due to the IT revolution.
2. _____________ The Philippines entered globalization only when it became a member of the WTO.
3. _____________In general, globalization makes our life easy and comfortable.
4. _____________The influx of agricultural products like rice from Thailand, Myanmar and Vietnam is a
result of the free-trade.
5. _____________The phenomenal growth of Korean culture and popular culture Hallyu encompassing
everything from music, movies, drama to online games and Korean cuisine is a product of globalization.
6. _____________Globalization is a social process reshaping and remaking the world order.
7. _____________Globalization involves human consciousness and awareness.
8. _____________People and institutions/organizations are forces, that form part globalization.
9. _____________The global economy is a manifestation of globalization compared to politics.
10. _____________The World Wide Web (www) stands as the hallmark for integration of western and
eastern culture.
VIII. ASSIGNMENT
Make a research on the different international institutions/organizations that significantly extending
help to the Philippines; as a member, at least five (5). (15pts)
IX. REFERENCES
Abinales, Patricio N. et. al (2018) The Contemporary World. Quezon City: C & E Publishing.
Dacles D. & Maslang K. (2018) The Contemporary World. Nueva Vizcaya: Saint Mary’s University Digital and Publishing
House.
De Ocampo F. et al. (2019) Introduction to the Contemporary World. Bulacan: St. Andrew Publishing House
Sklair, Leslie. (1999). Competing Concepts of Globalization. Retrieved August 9,2020 from
https://www.researchgate.net/publication/41097877_Competing_Conceptions_of_Globalization.pdf
ANSWER SHEET FOR MODULE # 1
NAME: ____________________________________ SCORE: 77

COURSE/YR/SECTION: ______________________
Activity # 1 (21pts.) My Globalization Story

1. Fashion
2. Phones
3. Shopping
4. Internet/e-mail
5. Health
6. Travel
7. Education
Activity #2 (10pts.)
NVSU Vision: “A premier university in a global community.” Is NVSU as a university, a global school?
Why?
Activity # 3 (12pts.)
List down events in the past that have captured the ideas of the public worldwide. Provide at least (2) two
events for each region/continent in the world from 2010-2020.
Region/Continents Events in the past that have captured the ideas of the public worldwide
1.North America A.
B.
2.South America A.
B.
3.Australia A.
B.
4.Asia A.
B.
5.Africa A.
B.
6.Europe A.
B.
Activity No.4 Reflective Figure (9pts.)
Direction: Below is a reflection figure that looks like a human figure. Determine what you have learned
(the knowledge that serves as your foundation to stand and keep); the things that you have realized and
appreciated (attitude towards learning) and the things you discovered (skills that you will cherish in life)
Things I have learned
(KNOWLEDGE)
Things I have realized

and discovered
(VALUES)
Things I have
discovered and
wanted more
(SKILLS)
EVALUATION
Short Quiz (True or False) – (10 Points)
Direction: Read and analyze each statement. Write the word TRUE if the statement is correct and FALSE
otherwise.
1. _____________ Today, the world has become a global village due to the IT revolution.
2. _____________ The Philippines entered globalization only when it became a member of the WTO.
3. _____________In general, globalization makes our life easy and comfortable.
4. _____________The influx of agricultural products like rice from Thailand, Myanmar and Vietnam is a
result of the free-trade.
5. _____________The phenomenal growth of Korean culture and popular culture Hallyu encompassing
everything from music, movies, drama to online games and Korean cuisine is a product of globalization .
6. _____________Globalization is a social process reshaping and remaking the world order.
7. _____________Globalization involves human consciousness and awareness.
8. _____________People and institutions/organizations are forces that form part globalization.
9. _____________The global economy is a manifestation of globalization compared to politics.
10. _____________The World Wide Web (www) stands as the hallmark for integration of western and
eastern culture.
Assignment: (15pts.)
Make a research on the different international organizations that significantly extending help to the
Philippines as a member.
International Institutions/Organizations Assistance to the Philippines

1. 1.
2.
2. 1.
2.
3. 1.
2.
4. 1.
2.
5. 1.
2.

Bambang Campus

PROGRAM 1A
YEAR LEVEL 1st YEAR TIME FRAME 3 WK NO. 3 IM NO. 2
hours
I. COMPETING THEORETICAL APPROACHES ON GLOBALIZATION
II.LESSON TITLE
1. Leading Theoretical Explanations
1.1. Realism
1.2. Liberalism
1.3. Idealism/ Perfectionism
2. Roles of Ideas and Technology in Globalization
2.1. Spread of Democracy
2.2. Global Economic Ties
2.3. International Institutions/Organizations
3. Institutions and Globalization
III.LESSON OVERVIEW
The lesson provides the students an overview on the origin, leading theories, standpoints on the
current political, economic, and technological situations of the world.
1. discuss the definition of the three leading theories explaining globalization;
2. familiarize the known leading theorists and their standpoint on globalization;
3. discuss the origin of the three theories and its relevance to the study of globalization;
4. apply the three theories on the current political, economic and technological situations of the world,
and
5. interpret the competing theoretical approaches of Globalization through Collage and/ or data
retrieval chart and/ or concept mapping.
V.LESSON CONTENT
Introduction
As a student, what are the parameters to consider in understanding the simplest definition and
concept of globalization as a phenomenon? Do you think technological development and scientific
innovations enough to make a concrete conclusion on the definition of globalization?
In the field of decision making and problem solving, one must understand the factors affecting
decisions and the forces that affect one another. Economic, political, technological, environmental factors
are difficult to analyze if one would miss out in examining its parts and components.
This stage composed of three components. First, the immediate cause of the problem. For an
instance, if an individual will identify the major causes of economic development China, his response
might center the effects of globalization in Asia. Second, precipitating cause, this level of decision-making
will answer the question, ‘Why China’s economy is developing?’ It will answer the growing market
demand and high availability of resources in mainland China. This answer is becoming closer and more
acceptable. The third is the root cause, again if we are going to answer the question on China’s using
the third level of identifying solution to the problem, the massive domestic structural reforms would be
emphasized as the major cause of development. Analyzing events, decision-making and globalization
have complexities
1.LEADING THEORETICAL EXPLANATIONS
1.1. Realism
Realist perspective explaining globalization focuses on the shifting distribution of power among
states. (Walt, 1998 and Snyder, 2004). They explained that the core idea of dominating the world is
through the employment of power.
Example: Power that overrule the:
 Economic (the market & resources like financial & manpower)
 Political (military and territory)
 Technology (Logistics and systems)
However, realist warn that countries may suffer and struggle to maintain its power if it will be
overreached and used wrongly. Countries with the power to dominate and control the world are those
whose economies have the “powers” to affect and influence the operation worldwide.
Globalization is sometimes associated with Westernization and Americanization because of the
Western’s intensification of its economy, like the US economy.
Realist Countries open their economies because:
 Financial returns of expanding market
1. proliferation of MNCs
2. (McDonalds, Chevron, Ford, Coca-Cola)
 Continued centrality of political power & military strength
 e.g. Bush announcement to fight terrorism by spreading liberal democracy to Middle East countries
signaled the American expression of promoting freedom of security.
Founders of Globalization
1. Hans Morgenthau - a German-born American political scientist and historian noted as a leading
analyst of the role of power in international politics.
The mentioned that international leadership is depended on the qualities of political
leadership, namely, that international leadership requires political leaders to display intellectual,
moral, and practical virtues. These include wisdom, foresight, judgment, prudence, willingness,
determination, courage, restraint, skill, leadership, governance, and persuasion.
2. Kenneth Waltz (An American political scientist and educator)
According to him, international politics is best understood by examining the structure of the
international system as reflected in alliances and other cooperative arrangements between state. He
likewise added that the key factor in international relations is the polarity of the system—that is,
whether it is dominated by one, two, or many superpowers (unipolarity, bipolarity, and multipolarity,
respectively). He considered the unipolar system that prevailed in world politics after the fall of the
Soviet Union to be the most unstable and dangerous configuration, because it left one superpower
(the United States) free to engage in foreign adventures.
3. John Mearsheimer – was a Realist-thinker

According to Mearsheimer, occasionally, a liberal democracy encounters such a favorable
balance of power that it is able to embrace liberal hegemony. That situation is most likely to arise in
a unipolar world, where the single great power does not have to worry about being attacked by
another great power since there is none.
4. Henry Kissinger – was a Realist-doer
Henry Kissinger was the single most controversial diplomat of the 20th century. This article
explores Kissinger's approach to the philosophy of realism in international affairs, his role in Vietnam
policy making, and his most recent engagement in the debate over the Iraq War. It argues that
Kissinger's realism, although philosophically consistent and having roots within his own life's
experience, was always tempered by his desire to exercise influence within the American political
system
1.2. Liberalism
It is a perspective in international relations where actors and institutions emphasize relationships
and negotiations. Liberalists observe the importance of interaction and communication and focus on
solving problems and conflicts affecting them. This is evident in countries where democratic governance
and institutions plays major roles in maintaining national cohesiveness in managing domestic and
international affairs.
Example: When the Chinese government asserted its rights over the contested West Philippine Sea
(WPS) or South China Sea (SCS), the Philippine government diplomatically responded to avoid conflict.
Realist China has shown its military strength to its neighbors through giving signal of its advantageous
capability, while the Liberalist Philippine government, utilized soft approaches through protesting in the
International Criminal Court.
Liberalists believe that to avoid international conflict and problems, negotiations and dialogues are
potential mechanism in confronting issues among parties.
 It describes the transformation of political-economic structures and the development of global
interconnectedness
1.1.2.a. Spread of Democracy and institution
Liberals see that democracy is mean of not using threat to intimidate and harm other nations, they
believe in the vital function played by rule of law as a safeguard of self-respect and social stability.
Transparency is also identified as a measurement in sustaining international cooperation and global
understanding.
A country with weak political institutions is more likely to experience social and civil unrest. They
are prone to domestic and international conflict. The strong participatory presence of citizens in key
issues affecting their interest could be used as reference in balancing interest of the stakeholder.
1.1.2. b. Global Economic Ties
Market integration and economic alliances are fitting fixtures of globalization, like the promotions of
free trade markets by (WTO) World Trade Organization and European Union (Eurozone), two of the
world’s largest economic bodies. It is also associated with the presence of technology, like banking and
finance, airline and travel, and outsourcing.
1.1.1.c. International Organization
Continue the stability of the global order, states are expected to adhere and show allegiance in
its willingness and commitment to follow international norms set by international bodies. Formation of
leading regional and international organizations like global commerce and governance are main
instruments in the maintenance of peace and solidarity.
Example:
1. Organization of Petroleum Exporting Countries (OPEC) has a global commitment for the
sustainability of oil supply to countries that are dependent with the organization’s member
economies.
2. North Atlantic Treaty Organization (NATO), is expected to continuously provide security umbrella
to all countries under its watch.
1.3. Idealism/Perfectionism
This theory emphasizes on the functions of ideologies, frameworks, systems, and identifies in
understanding globalization and international order. Its core beliefs centers on the centrality of ideas,
beliefs, emotions and collective values that shape the political and economic landscapes of the world.
Two Most Prominent founders of Idealism

 Alexander Wendt and Hugh Ruggie
Idealists and constructivists value the importance of appropriateness and transparency in
reshaping and framing rules affecting the general welfare of its members. It emphasizes polices and
decisions during state conflicts.
What is behind “globalization”?
a. Realism
Power (United States hegemony) drives technological change.
b. Liberal Institutionalism (institutions/organizations)

Technological change drives cooperation; creates ‘complex interdependence’
c. Idealism/ Identity (ideas)

Ideas drive technological change and power (Keynesian, ‘Washington consensus’, etc.)
2. ROLES OF IDEAS AND TECHNOLOGY IN GLOBALIZATION

Ideas are non-material entities of culture; it embodies one’s perception of his social world or
environment. It defines on how values, norms, & beliefs are used by governments & institutions in
hold & exercising power.
When ideas are used well based on their intended application, development takes place. It could
be utilized for linking and transfer of knowledge in a transnational community of nations, scientific, and
social innovation, and increase in the understanding of people in their day-to-day life.
Realism, Liberalism, and Idealism are the three most important technological trends in the last 25
years that made significant changes in the interaction of nations and people:
a. Knowledge and technology are significant determinants of wealth and power. They are the significant
determinant of wealth and power. Resources like ideas and technology is the basis of the economy
of a country.
b. The fast pace of technological change. From industrialization to modernization, technology became
significant in business, governments and individuals.
c. Dispersed knowledge and technology. There is an increase trends in communication revolutions
making the fast transfer of data from people to people, country to country in a more convenient way.
3.INSTITUTIONS AND GLOBALIZATION
Global governance is directed by two important institutions:(1) Political (2) Economic Institutions.
The operation of the political and economic life of globalization depends on how plans are implemented
and how accountable these institutions are in their actions.
Peters (20120 cited the works of Scott (1995) that institutions consist norms, set of activities, &
regulative structures that provide meaning & stability to the social behavior of a group.
Norms, like the rules, guidelines, programs, & the types of activities constitute the operation of an
institution.
Meyer and Rowan (1977) describe the formation of institutions as a symbolic manifestation on
the needs of society. The actions and behavior of the group members can change and alter the
movement of community and its people.
Giddens (1979) explained that institutions will not be recognized as institutions if they do not
shape the behavior of individuals. Institutions convey individuals on how to behave and conform to the
practices of the group as a way of accepting the legitimacy of the norms and values of the organization.
International institutions – it refers to all kinds of mergers that operate at international level, which do not
have commercial purpose, concern more than one state, but do not have any state characteristics. These
are all inter-governmental organizations that are formed by national governments, that set rules and with
the purpose of regulating the flow of communication and movement of resources. Such as the World
Trade Organization, the International Monetary Fund, the United Nations, the Organization for Economic
Cooperation and Development, the North Atlantic Pact and the World Bank
Activity No.1. (18 Points)
Direction: List down three powerful countries as realist, liberalist and idealist. Provide a brief
description of their identity.
Activity No. 2. (10 Points)
Direction: You are tasked to investigate (1) one economic law in the Philippines (example Oil
Deregulation Law, Anti Mining Law).
1. Identify the principal proponent (lawmaker) and the dynamics of passing the bill and its
implementation.
2. Describe the behavior (action, ideas) of the proponent and lawmakers who supported the passage of
the law.
3. The timeframe or the period the bill was proposed, debated, and signed by the president.
4. The national significance of the law (weighed the positive and negative features found in the law).
5. Examine and describe if lawmaker is liberalist, realists, or idealists? What are your basis?
Activity No.3 (9 Points)
Reflective Figure
VII. EVALUATION
TRUE OR FALSE (10 Points)
Direction: Read and analyze each statement. Write TRUE if the statement is correct, otherwise FALSE.
1._____________Countries with weak political institution will not likely to experience social and civil unrest.
2._____________Innovation as a product of technological development has rendered national borders to be
more powerful in international system.
3._____________Liberalism is described when actors and institutions emphasize relationships and
negotiations, rule of law.
4._____________Realist are known in using power as a tool in intimidating other countries like what China is
doing to the Philippines.
5._____________Negotiations and diplomatic talks are examples of power used by realist.
6._____________Powerful China continues to strengthen its military installation over the West Philippine Sea
as a Liberalists.
7._____________Knowledge and technology are significant determinants of wealth and power.
8._____________The Philippines as a democratic country doesn’t need to be a member of international
institutions or organizations like the United Nations.
9._____________ When ideas are used well, based on their intended application, development takes place
like in the different mobile/smart phone makers around the world.
10.____________ Transparency is always identified as a measurement in sustaining international cooperation
and global understanding.
VIII. ASSIGNMENT
Make a table on the categories of the Three Worlds and World Order. At least (5) five countries each
(15pts)
IX. REFERENCES
Biao, Zhiang (September 13, 2017). Hans Morgenthau, Realist Theory of International Leadership, and the
Future of Global Order. Retrieved August 8,2020 from https://link.springer.com/article/10.1007/s41111-017-0080-0
De Ocampo F. et al. (2019) Introduction to the Contemporary World. Bulacan: St. Andrew Publishing House.
Lind, Michael (December 15, 2018) John Mearsheimer on International Relations, Great Power Politics,
and the Age of Trump. Retrieved August 8, 2020 from https://nationalinterest.org/feature/john-
mearsheimer-international-relations-great-power-politics-and-age-trump-38772
Munro, Andrei.André. Kenneth N. Waltz: American political scientist and educator. Retrieved August 8,202 0
from https://www.britannica.com/biography/Kenneth-N-Waltz
Schwartz, Thomas A. (March 2011). Henry Kissinger: Realism, Domestic Politics, and the Struggle Against
Exceptionalism in American Foreign Policy. Retrieved August 18,2020 from https://www.researchgate. net/
publication/ 262946122_Henry_Kissinger_Realism_Domestic_Politics_and_the_ Struggle_Against_
Exceptionalism _in_American_Foreign_Policy
NAME: ____________________________________ SCORE: 62

COURSE/YR/SECTION: _______________________
Activity No.1. (18 pts.)

Direction: List down three powerful countries as realist, liberalist and idealist. Provide a brief description
of their identity.
Realist Countries Description

1.
2.
3.
Liberalist Countries
1.
2.
3.
Idealist Countries
1.
2.
3.
Activity No. 2. (10pts.)

Direction: You are tasked to investigate (1) one economic law in the Philippines (example Oil Deregulation Law,
Anti Mining Law).
1. Identify the principal proponent (lawmaker) and the dynamics of passing the bill and its
implementation.
2. Describe the behavior (action, ideas) of the proponent and lawmakers who supported the passage of
the law.
3. The timeframe or the period the bill was proposed, debated, and signed by the president.
4. The national significance of the law (weighed the positive and negative features found in the law).
5. Examine and describe if lawmaker is liberalist, realists, or idealists? What are your basis?

(KNOWLEDGE)

and discovered
(VALUES)
Things I have
discovered and
wanted more
(SKILLS)
Evaluation
TRUE OR FALSE (10 Points)
Direction: Read and analyze each statement. Write TRUE if the statement is correct, otherwise FALSE.
1._____________Countries with weak political institution will not likely to experience social and civil unrest.
2._____________Innovation as a product of technological development has rendered national borders to be
more powerful in international system.
3._____________Liberalism is described when actors and institutions emphasize relationships and
negotiations, rule of law.
4._____________Realist are known in using power as a tool in intimidating other countries like what China is
doing to the Philippines.
5._____________Negotiations and diplomatic talks are examples of power used by realist.
6._____________Powerful China continues to strengthen its military installation over the West Philippine Sea
as a Liberalists.
7._____________Knowledge and technology are significant determinants of wealth and power.
8._____________The Philippines as a democratic country doesn’t need to be a member of international
institutions or organizations like the United Nations.
9._____________ When ideas are used well, based on their intended application, development takes place
like in the different mobile/smart phone makers around the world.
10.____________ Transparency is always identified as a measurement in sustaining international cooperation
and global understanding.
Assignment:
Make a table on the categories of the Three Worlds and World Order. At least (5) five countries each.
(15pts.)
Categories Countries
First World 1.
2.
3.
4.
5.
Second World 1.
2.
3.
4.
5.
Third World 1.
2.
3.
4.
5.

Bambang Campus

PROGRAM 1A
YEAR LEVEL 1st YEAR TIME FRAME 3 WK NO. 4 IM NO. 3
hours
I.THE PRACTICE OF GLOBALIZATION
II.LESSON TITLE:
1. Globalization in Historical Perspectives
1.1. First Phase of Globalization 1.0 (1492-1800)
1.2. Second Phase of Globalization 2.0 (1800-1950)
1.3. Third Phase of Globalization 3.0 (1950-2000)
2. Three Dimensions Globalization
3. Globalization as Competition
4. Three Worlds and Worlds
4.1. First World
4.2. Second World
4.3. Third World
III.LESSON OVERVIEW
The lesson provides the students the important topics on the historical development of globalization
as well as the dimensions of this phenomenon.
1. identify the waves of globalization and its historical backdrop;
2. discuss the developments of globalization from its earliest period up to the present;
3. be familiar with the historical origin & development of globalization;
4. develop appreciation on how the process of globalization is affecting countries and institutions
around the world
5. interpret the practice of globalization through data retrieval chart.
V.LESSON CONTENT
Introduction
Today, the world economy, people and institutions/ organizations are transforming into a continuous
development from traditional mode making it irrelevant in our daily living. The advancement in technology,
transportation, finance, and communication resulted to increase of uniform, standard, and homogenous
practices of nations. Indeed, the world is totally an integrated environment composed of different forms
of interrelated drivers of changes and social development.
Globalization as a new social formation, adds color to the endless debates and criticisms of the
current mode of state interactions. There are identified losers and winners, some will be pushed as part
of growth while others might be pulled due to absence of “core ingredients” of the transformation process.
1. Globalization in Historical Perspective

There are key events and developments in the history of globalization since from the start it
was initially observed and described as a phenomenon up to the current era of advancement and
modernization.
Thomas Friedman, Holton (1998), Sholte (2001), and Lawson (2012) described the phases
of globalization into three periods.
1.1. First Phase of Globalization 1.0 (1492-1800)
a. This was the period of mercantilism and immediate rise of British economy during the age of
industrialization.
b. The inventions of steam engine, printing press, railway system were common symbols of this era.
Such growth of town in Europe was coupled by the development of some social systems and
institutions like government, education, and exchange of goods and commodities within the
regions.
It also involved the following:

 The development of international networks and regimes like the 1840 Anti-Slavery Convention
 The beginning of international fairs such as the London World Fair of 1851 (The Great
Exhibition of the Works of Industry of All Nations).
 The establishment of the International Committee of the Red Cross in 1863 (ICRC) - ensuring
humanitarian protection and assistance for victims of war and other situations of violence.
 The increasing formalization of international relations through agreements and treaties of
some countries in Europe and the birth and formation of new states.
 The significant development in communication and transportation such as telegraph,
telephone, and radio, and airplane.
 The development of international competitions like Olympic Games.
1.2. Second Phase of Globalization 2.0 (1800-1950)
This period was marked by the Conclusion of World War II as this was also identified by some
scholars of the Age of Pax Brittanica. Formation of market integrations and institutionalizations of
major economic activities in the global market as key contributor.
On this phase, it covered the following:
 The establishment of the League of Nations.

 The global effect of Cold War and the rise of the 3rd World in international arena.
 The increased attention to humanitarian works and development aid.
 The introduction of global icons and American consumerism
1.3. Third Phase of Globalization 3.0 (1950-2000)
 The period was marked by immense influence of technology and internet

 Information age is the major driving force in this age collaborated by:
multi-national corporations.
 New players and actors like China, ASEAN, European Union coupled with competitiveness of
economic ties among nations were on the limelight.
These are the following events took place in this phase:
 The establishment of global communication as manifested in the invention of first

communication satellite.
 The increasing power and influences of international financial institutions like World
Bank (WB) and International Monetary Fund (IMF).
 The rapid rise of the US and the expansion of investments and multinational firms from
the western world.
 The end of cold war and the formation of a new world system and global order.
 The relative increase of social movements and global civil society as well as
transnational non-governmental organizations.
 The introduction of World Wide Web and the continuous influence of
telecommunications.
 The increasing incidence of transnational crimes and the growing role of migration in
globalization.
 The rise of global attention given to environmental concerns such as the effect of
global warming and the more aggressive movement of anti-globalization campaign.
 The increasing formalization of international relations through agreements and treaties
of some countries in Europe and the birth and formation of new states.
2. Three Dimensions of Globalization
2.1. World capitalist economy (as the primary force of globalization)

Capitalists states are the main engines of global production and distribution of goods and services.
They engaged in multinational operations maintaining pool of resources such as labor and capital.
1.2. Nation-state system. The sovereignty of states in the period of modernization has been
emphasized as a primary part of independence and autonomy. As sovereign entities, nation-states
have the right to make their own collective objectives
Nation – (people). The nation is created by a shared belief that the people inside a country are connected
to each other.
State – part of the government

It is what makes a country run from a political, practical standpoint.
Nation-State -is a system of organization in which people with a common identity live inside a country
with firm borders and a single government.
2.3. World military. Most states in the world have shifted their focus in strengthening the military
capability like China.
Image Source: https://www.nextbigfuture.com/2018/08/india-will-be-number-three-in-world-military-

spending.html
3. Globalization as Competition
Global economic competitions and interdependencies began to dominate in early 1990s

where three critical stages came to light: Kukreja (2008).
a. Chinese government initiated a system of economic liberalization through opening its market to
the world. In 2017, its economy was ranked number two in powerful economies in the world. It
has surpassed giant economies in Europe and Japan.
b. The collapse of the communist governments of USSR and the departure of eastern European
nations marked the increasing players of emerging markets.
c. The series of government-initiated reforms in India and some parts of Asia turned its strategy in
developing its heavy sources and engines of economic development which compete against giant
markets in the West. Business Process Outsourcing (BPO) and telecommunication are key
drivers of India’s economy.
4. Three Worlds and Worlds Order
The concept of 1st world, 2nd world, and 3rd world was a construct of the Cold War era. This
period of bloodless conflict between the US and Soviet Union for 45 years.
Origin of Cold War:
 First, the conflict was caused by the aggressive behavior and domestic polies of Soviet Union
prompting other countries especially US to react. (HENRY KISSINGER, a known realist
described it as “Russia on the march”.)
 Second, cold war was a result of the US economic system of expansionist-capitalism.
 Third, the war was a consequence of security response from the two countries on the power
vacuum and threat of central Europe.
4.1. First World
Describe powerful economies having stable governments, robust financial markets, advanced
and modern infrastructures, low poverty, and high standard of living like US, Canada,
Australia, Japan, Singapore and some other countries in Europe.
4.2. Second World
It composes Soviet Union, China, Vietnam, North Korea and Cuba was perceived as 2nd
world. Producing nuclear armed ballistic missiles and transporting it to Cuba leading to missile
crisis in the US.
4.3. Third World
Have poor economies, have challenges in the political spectrum of institutional-building which
includes human rights, freedom and democracy, dictatorship, and repressive regimes.
Problems like poor health care, high poverty incidence and mortality rate, environmental
pollution and substandard facilitates are known social constraints.
Brazil, India, China, and South Africa are classified as 3rd world countries but are actually
parts of the developing economies with the inclusion of Russia forming BRICS group. (Brazil,
Russia, India, and South Africa), these countries are the newly industrialized economies and
are predicted to become superpowers in the next 20-25 years.
VI. LEARNING ACTIVITIES
Activity No. 1.
Direction: In a matrix form, write down (5) micro and macro effects of globalization to an individual
and community? (20pts.)
Activity No. 2 (10 Points) Use the rubric on page 7 as your guide in your essay.
Globalization a THREAT or OPPORTUNITY? Explain
Activity No. 3. (9 Points)
Reflective Figure
knowledge that serves as your foundation to stand and keep); the things that you have realized and appreciated
(attitude towards learning) and the things you discovered (skills that you will cherish in life)
VII.EVALUATION
TEST YOUR UNDERSTANDING (10 Points)

Direction: Read and analyze each statement. Write the world TRUE if it correct and FALSE otherwise.
1. The United Nations establishment was part of the first phase of Globalization.
2. One of the influences of the third period of globalization in telecommunications is the

introduction of the world wide web.
3. Business Process Outsourcing (BPO) and telecommunications are the key drivers of
Philippines’ economy with an increasing demand in the market in the coming years.
4. Pax Brittanica (British Peace) signaled a period of development and the end of development
and the end of world war.
5. Second World is characterized by development of multinational corporations and active
consumerism.
6. The collapse of the Soviet Union and the departure of eastern European nations marked
increasing players of emerging markets.
7. First World fits to describe powerful economies having stable governments, robust financial
markets, advanced and modern infrastructures.
8. Soviet Union was part of the Third World during the Cold War.
9. South and Latin America, including south Asia are example are classified as First World.
10. Throughout the Cold War, communist and capitalist nations tried to out-do each other,
competing to develop the best technologies and weapons.
VIII. ASSIGNMENT
What is the role of international trade in global economy? Submit it through taking a photo of it or
screenshot. (25 Points)
VIII. REFERENCES
Abinales, Patricio N.et.al. (2018). The Contemporary World. Quezon City: C & E Publishing
Incorporated.
Ariola, Mariano A. (2018). The Contemporary World. Manila: Unlimited Books Library Services &
Publishing Incorporated.
Dacles D., Maslang K. (2018) The Contemporary World. Nueva Vizcaya: Saint Mary’s University Digital
and Publishing House.
De Ocampo F. et al. (2019) Introduction to the Contemporary World. Bulacan: St. Andrew Publishing
House.
NAME: ____________________________________ SCORE: 74

Activity #1 (20 Points)

Direction: In a matrix form, write down (5) micro and macro effects of globalization to an individual
and community? (20pts.)
Effects of Globalization Micro Macro
Individual 1.
2.
3.
4.
5.
Community 1.
2.
3.
4.
5.
Activity # 2. Essay: (10pts.)

Globalization a THREAT or OPPORTUNITY? Explain

(KNOWLEDGE)

and discovered
(VALUES)
Things I have
discovered and
wanted more
(SKILLS)
EVALUATION
TEST YOUR UNDERSTANDING (10 Points)
Direction: Read and analyze each statement. Write the world TRUE if it correct and FALSE otherwise.
1. The United Nations establishment was part of the first phase of Globalization.
2. One of the influences of the third period of globalization in telecommunications is the

introduction of the world wide web.
3. Business Process Outsourcing (BPO) and telecommunications are the key drivers of
Philippines’ economy with an increasing demand in the market in the coming years.
4. Pax Brittanica (British Peace) signaled a period of development and the end of development
and the end of world war.
5. Second World is characterized by development of multinational corporations and active
consumerism.
6. The collapse of the Soviet Union and the departure of eastern European nations marked
increasing players of emerging markets.
7. First World fits to describe powerful economies having stable governments, robust financial
markets, advanced and modern infrastructures.
8. Soviet Union was part of the Third World during the Cold War.
9. South and Latin America, including south Asia are example are classified as First World.
10. Throughout the Cold War, communist and capitalist nations tried to out-do each other,
competing to develop the best technologies and weapons.
ASSIGNMENT
What is the role of international trade in global economy? Submit it through taking a photo shoot or
screen shot. (25pts.)
Photos/Screen Shots Role of International Trade in Global Economy
1.
2.
3.
4.
5.

Bambang Campus

PROGRAM 1A
YEAR LEVEL 1st YEAR TIME FRAME 6 WK NO. 5-6 IM NO. 4
hours
I. THE STRUCTURES: GLOBAL ECONOMY
II. LESSON TITLE:
1.1 Economic Systems

1.2 International Trade
1.3 Trade Theories
1.4 Three Perspectives on International Trade
1.5 Modern World Systems
1.6 Why Countries Engaged in International Trade?
1.7 Domestic and Foreign Economic Policies
1.8 Multinational Corporations and Transnational Corporations
1.9 The Power of Transnational Corporations
1.10 International Economic Institutions and Market Integration
III.LESSON OVERVIEW
The lesson provides the students the reasons why countries engaged in international trade, various
theories and perspectives explaining the practice of international trade, the roles and functions of different
international economic organizations and the formation of economic integration and cooperation.
1) define international trade and identify the reasons why countries engage in international trade;
2) examine the various theories and perspectives explaining the practice of international trade;
3) evaluate the roles and functions of different international economic organizations;
4) discuss the factors leading the formation of economic integration and cooperation
5) develop critical thinking on global governance through debate.
V.LESSON CONTENT
Introduction
The global economy refers to the interconnected worldwide economic activities that take place
between multiple countries. These economic activities can have either a positive or negative impact on
the countries involved.
1.1. ECONOMIC SYSTEMS
An economic system is a means by which societies or governments organize and distribute available
resources, services, and goods across a geographic region or country. Economic systems regulate
factors of production, including capital, labor, physical resources, and entrepreneurs. An economic
system encompasses many institutions, agencies, and other entities.
1.1.1. Market Economy
Market economic systems are based on the concept of free market. A system where the laws
of supply and those of demand direct the production of goods and services. Supply includes natural
resources, capital, and labor. Demand includes purchases by consumers, businesses, and the
government.
A market economy’s greatest downside is that it allows private entities to amass a lot of
economic power, particularly those who own resources of great value. The distribution of resources
is not equitable because those who succeed economically control most of them.
Businesses sell their wares at the highest price and consumers will pay. At the same time,
shoppers look for the lowest prices for the goods and services they want. Workers bid their services
at the highest possible wages that their skills allow. Employers seek to get the best employees at the
lowest possible price.
Market economy promotes competition among businesses and firms.
Image Source: https://www.chegg.com/

Six characteristics define a market economy.
Private Property. Most goods and services are privately-owned. The owners can make legally
binding contracts to buy, sell, or lease their property. Their assets give them the right to profit from
ownership. There are some assets U.S. law excludes. Since 1865, for example, you cannot legally
buy and sell human beings.
Freedom of Choice. Owners are free to produce, sell, and purchase goods and services in a
competitive market. They only have two constraints. First is the price at which they are willing to buy
or sell. Second is the amount of capital they have.
Motive of Self-Interest. Everyone sells their wares to the highest bidder while negotiating the lowest
price for their purchases. Although the reason is selfish, it benefits the economy over the long run.
This auction system sets prices for goods and services that reflect their market value. It gives an
accurate picture of supply and demand at any given moment.
Competition.
The force of competitive pressure keeps prices low. It also ensures that society provides goods and
services most efficiently. As soon as demand increases for a particular item, prices rise thanks to the
law of demand. Competitors see they can enhance their profit by producing it, adding to supply. That
lowers prices to a level where only the best competitors remain. This competitive pressure also
applies to workers and consumers. Employees vie with each other for the highest-paying jobs. Buyers
compete for the best product at the lowest price.
System of Markets and Prices. A market economy relies on an efficient market in which to sell
goods and services. That's where all buyers and sellers have equal access to the same information.
Price changes are pure reflections of the laws of supply and demand. There are five determinants of
demand: product price, buyer's income, prices of related goods, consumer taste, buyer's
expectations.
Limited Government. The role of government is to ensure that the markets are open and working.
For example, it is in charge of national defense to protect the markets. It also makes sure that
everyone has equal access to the markets. The government penalizes monopolies that restrict
competition. It makes sure no one is manipulating the markets and that everyone has equal access
to information.
1.1.2. Command Economy
The quantity of goods and services produce in the market is based on the decision of the
government. A command economy is where a central government makes all economic
decisions. Either the government or a collective owns the land and the means of production.
Source: https://www.thebalance.com/command-economy-characteristics-pros-cons-and-
examples-3305585
Five Characteristics of Command Economy
a. The government creates a central economic plan. The five-year plan sets economic and societal
goals for every sector and region of the country. Shorter-term plans convert the goals into
actionable objectives.
b. The government allocates all resources according to the central plan. It tries to use the nation's
capital, labor, and natural resources in the most efficient way possible. It promises to use each
person's skills and abilities to their highest capacity. It seeks to eliminate unemployment.
c. The central plan sets the priorities for the production of all goods and services. That includes
quotas and price controls. Its goal is to supply enough food, housing, and other basics to meet
the needs of everyone in the country. It also sets national priorities. These include mobilizing for
war or generating robust economic growth.
d. The government owns monopoly businesses. These are in industries deemed essential to the
goals of the economy. That includes finance, utilities, and automotive. There is no domestic
competition in these sectors.
e. The government creates laws, regulations, and directives to enforce the central plan. Businesses
follow the plan's production and hiring targets. They can't respond on their own to free-market
forces.
Here are examples of the most well-known countries with command economies:
 Belarus: This former Soviet satellite is still a command economy. The government owns
80% of the country's businesses and 75% of its banks.
 China: After World War II, Mao Tse Tung created a society ruled by Communism. He
enforced a strictly planned economy. The current leaders are moving toward a market-
based system. They continue to create five-year plans to outline economic goals and
objectives.
 Cuba: Fidel Castro's 1959 revolution installed Communism and a planned economy. The
Soviet Union subsidized Cuba’s economy until 1990. The government is slowly
incorporating market reforms to spur growth.
 Iran: The government controls 60% of the economy through state-owned businesses. It
uses price controls and subsidies to regulate the market. This control created recessions,
which it has ignored. Instead, it devoted its resources to expanding its nuclear capability.
The United Nations imposed sanctions, worsening its recessions. The economy improved
once the nuclear trade deal ended sanctions in 2015.
 Libya: In 1969, Muammar Gaddafi created a command economy reliant upon oil revenues.
Most Libyans work for the government. Gaddafi had been instituting reforms to create a
market-based economy. But his 2011 assassination halted these plans.
 North Korea: After World War II, President Kim Il-sung created the world's most centrally-
planned economy.5 It created food shortages, malnutrition, and several bouts of mass
starvation. Most state resources go into building up the military.
 Russia: In 1917, Vladimir Lenin created the first Communist command economy. The
Russian people were ready for a radical change, having suffered starvation during World
War I. Joseph Stalin built up military might and quickly rebuilt the economy after World
War II. The Soviet State Planning Committee, or “Gosplan,” has been the most-studied
command economy entity. The USSR was also the longest-running command economy,
lasting from the 1930s until the late 1980s. Then, the state transferred ownership of the
largest companies to oligarchs.
1.1.3. Mixed Economy
Mixed economy is a system that combines characteristics of market, command and traditional
economies. It benefits from the advantages of all three while suffering from few of the
disadvantages.
Image Source: https://www.thebalance.com/mixed-economy-definition-pros-cons-examples-3305594
Three of the following characteristics of a mixed economy.
 First, it protects private property.

 Second, it allows the free market and the laws of supply and demand to determine prices.
 Third, it is driven by the motivation of the self-interest of individuals.
1.2. INTERNATIONAL TRADE
International trade is the exchange of goods and services among countries. International trade
allows countries to expand their markets for both goods and services that otherwise may not have
been available domestically. As a result of international trade, the market is more competitive which
results in more competitive pricing which brings a cheaper product home to the consumer.
Global trade allows wealthy countries to use their resources—whether labor, technology or
capital—more efficiently. Since countries are endowed with different assets and natural resources
(land, labor, capital, and technology), some countries may produce the same good more efficiently
and therefore sell it more cheaply than other countries. If a country cannot efficiently produce an item,
it can obtain the it by trading with another country that can. This is known as specialization in
international trade.
Total trade equals exports plus imports. In 2018, total world trade was $39.7 trillion. That's
$20.8 trillion in exports and $18.9 trillion in imports. Trade drives 46% of the $86 trillion global
economy. More than one-fourth of the goods traded are machinery and electronics, like computers,
boilers, and scientific instruments. Almost 12% are automobiles and other forms of transportation.
Next comes oil and other fuels contributing 11%. Chemicals, including pharmaceuticals, add another
10%.
Advantages of International Trade

Exports create jobs and boost economic growth, as well as give domestic companies more
experience in producing for foreign markets. Over time, companies gain a competitive advantage in
global trade. Research shows that exporters are more productive than companies that focus on
domestic trade.
Disadvantages of International Trade

The only way to boost exports is to make trade easier overall. Governments do this by reducing tariffs
and other blocks to imports. That reduces jobs in domestic industries that can't compete on a global
scale. That also leads to job outsourcing, which is when companies relocate call centers, technology
offices, and manufacturing to countries with a lower cost of living. Countries with traditional economies
could lose their local farming base as developed economies subsidize their agribusiness. Both the
United States and European Union do this, which undercuts the prices of the local farmers.
1.3. TRADE THEORIES
Two general types of trade theories pertain to international business.

Descriptive theories it describes the natural movement and order of trade; they examine and explain
patterns of trade under laissez-faire conditions. Individual are the best agent to solve the problem
through invisible hands rather than the government policies.
Prescriptive theories it describes whether government should interfere movement of goods and
services.
1.4. THREE PERSPECTIVES ON INTERNATIONAL TRADE
1.4.1. Economic Liberals
a. Adam Smith - identified as the father of modern capitalism. While accurate to some extent,
this description is both overly simplistic and dangerously misleading. On his book, An Inquiry
into the Nature and Causes of the Wealth of Nations that discusses division of labor and free
trade, self-interest in exchange, the limits on government intervention, price, and the general
structure of the market, all signify the moment when economics transitions to the “modern.”
b. David Ricardo was known for his Law of Comparative Advantage stating the principle of
specialization and division of labor (Nau, 2009). Countries have different resources and
talents; they are better in performing in that economic activity than other economic activities.
It explains the importance of free-trade and the role of individual’s performance in choosing
economic activity.
1.4.2. Mercantilists
Mercantilism was an economic system of trade that spanned from the 16th century to the 18th
century. Mercantilism is based on the principle that the world's wealth was static, and
consequently, many European nations attempted to accumulate the largest possible share of that
wealth by maximizing their exports and by limiting their imports via tariffs.
Reasons on how Mercantilism flourish

 Higher export than import.
 Export less high valued product and import less high valued product
 The benefit of colonial powers.
1.4.3. Structuralists
The earliest wave of mercantilism was described as classical imperialism. The drive of European
countries to explore and colonized underdeveloped countries originated from the aggressive
mercantilist behavior of European economies.
1.5. MODERN WORLD SYSTEM
A theory developed by Emmanuel Wallerstein explains the contact of economies between the core,
semi-peripheral and peripheral countries in the world.
 Peripheral. Countries that are dependent on core countries for capital and have underdeveloped
industry. Peripheral countries (e.g., most African and low-income countries in South America) are
dependent on core countries for capital and are less industrialized and urbanized. Peripheral
countries are usually agrarian, have low literacy rates and lack consistent Internet access.
 Core. Are dominant capitalist countries which exploit the peripheral countries for labor and raw
materials. Core countries own most of the world’s capital and technology and have great control
over world trade and economic agreements. They are also the cultural centers which attract artists
and intellectuals. Core countries (e.g., U.S., Japan, Germany) are dominant, capitalist countries
characterized by high levels of industrialization and urbanization. Core countries are capital
intensive, have high wages and high technology production patterns and lower amounts of labor
exploitation and coercion. Core countries extract raw materials with little cost.
 Semi-peripheral. Countries that share characteristics of both core and periphery countries. Semi-
peripheral countries (e.g., South Korea, Taiwan, Mexico, Brazil, India, Nigeria, South Africa) are
less developed than core nations but more developed than peripheral nations. They are the buffer
between core and peripheral countries. Semi-peripheral countries exploit peripheral countries,
just as core countries exploit both semi-peripheral and peripheral countries. See the illustration
map on the next page.
Modern World System Illustration Map
https://hesperusisbosphorus.wordpress.com/2014/12/22/center-periphery-philosophy/
1.6. WHY COUNTRIES ENGAGED IN INTERNATIONAL TRADE?
Countries trade with each other when, on their own, they do not have the resources, or
capacity to satisfy their own needs and wants. By developing and exploiting their domestic scarce
resources, countries can produce a surplus, and trade this for the resources they need.
 Use of Excess Capacity in Demand. The inadequate domestic demand pushes business,
organizations to expand their market base outside their national territory. These are
companies which have resources and capital to operate in a transnational market; these may
include Nestlē, McDonalds, Toyota and Starbucks. They expanding outside their territory
 Cost Reduction and Increase of Profit. A practice in which firms increase its profit while
reducing its operational cost.
 Cheaper Supplies. A country imports goods from other countries because of inexpensive raw
materials and supplies use for production.
 Addition to Product Line. Economies aim for a variety of products and services available in
the market.
 Reduction of Risk. Importing of products is an alternative to countries that are vulnerable to
supply shortage.
 Foreign Policy. Countries are becoming a country to regional market integration and economic
relationship is part of its foreign policy. A very important move in sustaining its international
status in global environment.
1.7. DOMESTIC AND FOREIGN ECONOMIC POLICIES
We must understand first the factors affecting the business operation; like international marketing
which organization and enterprise engage in a foreign market. Likewise, political, economic, cultural
and technological environment are also be taken into consideration to ensure the success in the
international market. Henry Nau (2008), suggested the seven government policies that have direct
effect to a country’s relationship with global economy.
1.7.1. Macroeconomic policies

It includes monetary and fiscal policies that directly affects the economy. Monetary policy is a
decision of central bank in changing supply of money supply to influence factors affecting the
economy like interest rates with the goal of managing price stability and full employment. While
fiscal policy focusses on the government’s revenue and expenditures. This policy represents the
various national economic activities where government concentrates on cutting its expenses to
avoid budget deficit and attain budgetary balance.
1.7.2. Microeconomic Policies

These governmental policies provide precautionary measures in price control, monitoring
consumer behavior and private firm operation.
1.7.3. Governance Policies

Stability of the economy is always associated with the ways the economy performs. Cultural
influences, strengthening networks and systems of governance are indicators of competitive
economy. International market looks for policies that are viable and support the working operation
of the global economy.
1.7.4. Exchange Rate Policies

The exchange rate of an economy affects aggregate demand through its effect on export and
import prices, and policy makers may exploit this connection.
Because changes in exchange rates have macroeconomic effects on a nation’s economy,

nations need to think about what exchange rate policy they should adopt. Exchange rate policies
come in a range of different forms below: let the foreign exchange market determine the exchange
rate; let the market set the value of the exchange rate most of the time, but have the central bank
sometimes intervene to prevent fluctuations that seem too large; have the central bank guarantee
a specific exchange rate; or share a currency with other countries. Let’s discuss each type of
exchange rate policy and its tradeoffs.
1.7.5. Trade Policies
Policies on balance of payments, customs tax, its quota and tariffs. Balance of Payments
(BOP) is the record of all foreign transactions by an economy each year, an ideal criterion in
identifying the international economic status of a country.
1.7.6. Foreign Investment policy

Part of this policy is the influx of investment in the economy. A competitive economy attracts
foreign investors with the intention of establishing and expanding the business from its home
country to the host or target economy.
1.7.7. Migration Policies

This is significant in determining the labor ability in the market. There are economies or
countries that restrict the movement of people due to some economic and political reasons.
Migration as a contemporary practice in globalization is defined as the spatial movement of people
or group from one place to another.
1.8. MULTINATIONAL CORPORATIONS AND TRANSNATIONAL CORPORATIONS
The role of Multinational Corporations (MNCs) in the twenty first century is distinct and
interesting to investigate. The movement of loans, capital, investment and technology and people are
affected by the operations. MNCs continue to offer innovations, products and services. A firm
operating in different countries around the world.
MNCs TNCs
Multinational companies own a home Transnational companies do not have but
company and its subsidiaries. just many companies
Multinational companies have a centralized Transnational companies do not have a
management system. centralized management system.
Multinational companies will face a barrier in Transnational companies are able to gain
decision making due to its centralized more interest in the local markets since
management system. they maintain their own systems.
Main Difference – Multinational vs. Transnational
Multinational, as the term suggests, operates in many countries. The main difference
between multinational and transnational enterprises is that multinational enterprises have a
centralized management system which cannot be seen in transnational enterprise. However,
both multinational and transnational companies have foreign affiliates and operate around the world.
What is Multinational Corporations?
Many states mean that these types of

companies operate in more than one country at the
same time in a centralized management system. Multi
means many and national means the state. Multinational
enterprise is strongly supported by the emergence of free
liberalism and free market concepts. A company may
start in one country, and may spread to other foreign
countries, expanding their investments.
Image Source: “Microsoft CES 2009” by Ben
Franske – Own work. (GFDL) via Commons
Thus, a national industry becomes a multinational
company. The significance of this type of companies is that though it spreads to many other countries,
there will be a centralized management system, and the main decisions will always be taken by the
home company. The other foreign corporations will be subsidiaries of the home company. When we
think of the business environment of a multinational company, it may engage in exporting and
importing goods and services, buying and selling license in foreign markets, contract manufacturing,
etc. Example: Microsoft Corporation (Image Courtesy): “Microsoft CES 2009″ by Ben Franske – Own
work. (GFDL) via Commons
What is Transnational Corporations?

Transnational corporations are something similar to
multinational companies, but there is a small difference. TNCs
are business organizations and firms that compete in regional or
global markets. It operates in countries and makes investments
in research, technology, facilities, distributions and
production.Transnational corporations also operate in many
countries, and there isn’t a centralized management system.
These companies might start in one country, and later on they
might expand to other nations as well.
Image Source: “Kopenhagen Mai 2009 PD 486” by
Dornum72 – Own work. (CC BY-SA 3.0) via
Commons
However, they do not have a home company to manage them and will start as a new company.
So, a transnational company does not have subsidiaries. Since there isn’t a centralized management
system, a transnational company may take decisions suitable to the operating context. They also may
not be loyal to the operating country’s value system but only will look into their expansion of
businesses, since they may have no connection with the particular country. They control and
monopolize the global market, especially if it has a huge pool of resources making it one of the most
powerful economic actors in the world. Transnational companies are there all around the world, and
they operate truly at the global level. Example: Nestlẽ, S.A
Operations
 Multinational companies own a home company and its subsidiaries.
 Transnational companies do not have subsidiaries but just many companies.
1.9. THE POWER OF TRANSNATIONAL CORPORATIONS
TNCs are very powerful economic institutions because of their global influence in investment
and network distribution. In a World BANK Development Report in 2000, sales of General Motors
Corporation is almost the same as the GDP of Denmark and Sony’s sales recorded on that year
recorded at 60,052 million dollars, higher than Pakistan’s GDP at 59, 880 million dollars. American
TNCs are remains as the primary top producers of foreign-direct investments in the world.
1.10. INTERNATIONAL ECONOMIC INSTITUTIONS AND GLOBAL MARKET INTEGRATION
The formation of economic integration is designed to address and enhance the level of
competitiveness of member economies in trade. Free Trade Area (FTA) is a trading bloc which
involves the reduction of internal tariffs to zero of member economies but retaining its different
external tariffs. But from FTA, it created unfair trade, which is a conduct of trade by a business firm
or government that violates and discriminatory.
1.10.1. World Trade Organization

WTO is one of the three biggest international organizations that formulate and coordinate
world economic policies. According to Gaia Education (2013), the rationale in creating this
organization was in order to broaden the mandate of GATT in promoting global economic
liberalization. It was established in 1995.
The most significant role in promoting free international trade (LabSpace, 2012). The only
international organization dealing with the global rules of trade between nations. Its main function is
to ensure that trade flows as smoothly, predictably and freely as possible.
Where countries have faced trade barriers and wanted them lowered, the negotiations have helped
to open markets for trade. But the WTO is not just about opening markets but also to protect
consumers or prevent the spread of disease.
WTO has five (5) main functions, which are the following (WTO, 2013):
a. Trade negotiations. This function covers agreements on goods, as well as services and even
intellectual property. Specifically, WTO, through this mandate, deals with ensuring the commitment
of every member states to lower their customs tariffs and even other barriers of trade. Of course,
these are in sync with the agreements of the members, which are being reviewed regularly.
b. Implementation and monitoring. According to the WTO agreements, its members are required
to make their trade policies transparent. This is being done by notifying the WTO on the laws or
measures that the members adopt. All of the members of the WTO are required to undergo regular
scrutiny of their policies and practices related to trade.
c. Dispute settlement. Even though that WTO has some established procedures and guidelines,
there might still come a time when trade quarrels may arise. It is in this light that the members are
covered by the Dispute Settlement Understanding, which provide for rules in settling disputes. This
usually happens, most especially when a member thinks that their rights under their specific
agreements are being violated. The judgments will be made by the appointed independent experts.
d. Building trade capacity

The WTO agreements also have some special provisions concerning developing countries
in order to increase opportunities for their trading and supporting them boost their trading capacity.
e. The Organization is also assisting these countries in handling disputes, as well as

implementing technical standards. These are being through annual courses offering that aim to
develop the countries’ skills and infrastructure requirements.
1.10.2. World Bank
The World Bank (WB), along with IMF, is the creator of the WTO. WB is part of the Bretton
Woods institutions. It is primarily an international financial institution providing loans to developing
countries (WB, 2012a). However, it has several branches and functions that make it touch the field
of trade as well. The WB group has specific trade programs (WB, 2012b), which include the following:
a. Promotion of multilateral trading system that is supportive of economic development;

b. Making the trade competitiveness the centerpiece of the development strategies of countries;
and
c. Supporting trade and the facilitation of related reforms by way of the Bank’s “Aid for Trade”
programs.
In order to complement these programs, the Bank launched its new trade strategy in 2011
after having consultations with the stakeholders. This new strategy is about “Leveraging Trade for
Development and Inclusive Growth”. Leverage is an investment strategy of using borrowed money.
According to the World Bank (2011), this strategy has four (4) main priority themes, which
include the following:
a. Trade competitive and diversification;
b. Trade facilitation, as well as transport logistics and trade finance;
c. Supporting market access and the international trade cooperation; and
d. Managing the shocks while promoting greater inclusion.
The Bretton Woods agreement was established as a new global monetary system in 1944. It
replaced the gold standard with the U.S. dollar as the global currency. By so doing, it established
America as the dominant power in the world economy. After the agreement was signed, America was
the only country with the ability to print dollars.
The agreement created the World Bank and the International Monetary Fund (IMF), U.S.-
backed organizations that would monitor the new system. The Bretton Woods agreement was created
in a 1944 conference of all of the World War II Allied nations. It took place in Bretton Woods, New
Hampshire.
Under the agreement, countries promised that their central banks would maintain fixed
exchange rates between their currencies and the dollar. If a country's currency value became too
weak relative to the dollar, the bank would buy up its currency in foreign exchange markets.
1.10.3. International Monetary Fund
It was created in 1944, while World War II was still raging, as part of the Bretton Woods
Agreement. of the currency devaluations that contributed to the economic challenges of that period.
The IMF’s broad, self-defined mandate encompasses “all macroeconomic and financial sector
issues that bear on global stability,” including trade promotion, economic growth and poverty
reduction.
According to Manish (2012), the following the roles of the IMF, which are explicitly stated in
the Article I of its Constitution (or their Articles of Agreement), to wit:
a. Promotion of international monetary cooperation;
b. Facilitation of the expansion and balanced growth of international trade;
c. Promotion of exchange stability
d. Assisting to the establishment of a multilateral payments system;
e. Giving confidence to its members by way of making general resources of the IMF temporarily
available to the members under adequate safeguards; and
f. Shortening of the duration and lessening the level of disequilibrium in the aspect of the international
balances of payments among its member countries.
1.10.4. European Union
European Union (EU), international organization comprising 27 European countries and

governing common economic, social, and security policies. Originally confined to western Europe,
the EU undertook a robust expansion into central and eastern Europe in the early 21st century. The
EU’s members are Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark,
Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg,
Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden. The
United Kingdom, which had been a founding member of the EU, left the organization in 2020.
The EU was created by the Maastricht Treaty, which entered into force on November 1, 1993.
The treaty was designed to enhance European political and economic integration by creating a single
currency (the euro), a unified foreign and security policy, and common citizenship rights and by
advancing cooperation in the areas of immigration, asylum, and judicial affairs. The EU was awarded
the Nobel Prize for Peace in 2012, in recognition of the organization’s efforts to promote peace and
democracy in Europe.
1.10.5. Association of Southeast Asian Nations
ASEAN, Association of Southeast Asian Nations, international organization established by the

governments of Indonesia, Malaysia, the Philippines, Singapore, and Thailand in 1967 to accelerate
economic growth, social progress, and cultural development and to promote peace and security in
Southeast Asia. Brunei joined in 1984, followed by Vietnam in 1995, Laos and Myanmar in 1997, and
Cambodia in 1999. The ASEAN region has a population of more than 600 million and covers a total
area of 1.7 million square miles (4.5 million square km). ASEAN replaced the Association of South
East Asia (ASA), which had been formed by the Philippines, Thailand, and the Federation of Malaya
(now part of Malaysia) in 1961. Under the banner of cooperative peace and shared prosperity,
ASEAN’s chief projects center on economic cooperation, the promotion of trade among ASEAN
countries and between ASEAN members and the rest of the world, and programs for joint research
and technical cooperation among member governments.
Activity 1. (10 Points)

Cite atleast (5) five Transnational Corporations HARMFUL or NOT? Why?
Activity 2. (20 Points)

Direction: Create an image of the following aspects (Global Corporation, Global Citizen, Global
Governance and Global Economy) and describe your image.
Activity 3 (12pts.)
List down atleast (2) two Roles/Functions of Economic Institutions.
VII.EVALUATION
PART I. TEST YOUR UNDERSTANDING (15 Points)

Direction: Put a (✓) mark on the space provided if the statement is correct and cross (X) mark if the
statement is wrong.
____1. Euro is the official currency of United Kingdom.

____2. Command economy promotes competition among businesses and firms.
____3. The WB was formed to finance the reconstruction of war-torn countries brough by the
devastation of World War II.
____4. IMF is a dispute settlement body responsible for resolving trade problem.
____5. WTO main function is to supervise exchange rate system, and providing loan programs to
economics.
____6. Transnational companies own a home company and its subsidiaries.
____7. Multinational companies do not have subsidiaries but just many companies.
____8. Peripheral. Countries that are dependent on core countries for capital and have
underdeveloped industry.
____9. Core. Are dominant capitalist countries which exploit the peripheral countries for labor and
raw materials.
___10. UN is an international organization comprising 27 European countries and governing
common economic, social, and security policies.
___11. APEC was the second multipurpose international organization established in the 20th
century that was worldwide in scope and membership.
___12. The EU is a regional economic forum established in 1989 to leverage the growing
interdependence of the Asia-Pacific.
___13. ASEAN was formed to accelerate economic growth, social progress, and cultural
development and to promote peace and security in Southeast Asia.
___14. WTO is one of the three biggest international organizations that formulate and coordinate
world economic policies.
___15. The US dollar is the universal currency of the world.
PART II. ESSAY (Explain briefly your answer in one-two paragraphs). 30 Points
1. What is the significance of the United Nations across the world, especially the Philippines as a
developing country?
2. Do poor countries gain much from global corporations? Defend your answer.
3. What do you think is the importance or significance of international financial institutions to poor or
developing economies or countries?
VIII.ASSIGNMENT
Direction: React on the following: (10 pts. each) Use the rubric on page 7 as your guide in your essay.
1. Education must also be a priority where refugees are concerned in order to avoid a “lost generation”
of youth.
2. Globalization is the effective erasure of boundaries for economic purposes.
IX. REFERENCES
Abinales, Patricio N. et. al. (2018). The Contemporary World. Quezon City: C & E Publishing
Incorporated.
Adam Smith. Retrieved September 1, 2020 from https://iep.utm.edu/smith/
Ariola, Mariano M. (2018). The Contemporary World. Manila: Unlimited Books Library Services &
ASEAN. Retrieved September 3, 2020 from https://asean.org/#
Brock, Thomas J. (September 3,2020). The Bretton wood system. Retrieved September 4,2020 from
https://www.thebalance.com/bretton-woods-system-and-1944-agreement-3306133
Characteristics of Command Economy. Retrieved September 2, 2020 from

https://www.thebalance.com /command-economy-characteristics-pros-cons-and-examples-3305585
House.
Gabel, Matthew J. European Union. Retrieved September 3,2020 from

https://www.britannica.com/topic/ European-Union
Pros and Cons of international trade. Retrieved September 2,2020 from https://www.thebalance.com/i
nternational-trade-pros-cons-effect-on-economy-3305579
The United Nation. Retrieved September 3, 2020 from https://www.un.org/en/about-un/
What is Global Economy. Retrieved September 2,2020 from https://www.edology.com/blog/accounting-

finance/how-does-global-economy-work/
Why Do countries trade. (August 17,2020). Retrieved September 2,2020 from

https://www.economicsonline.co.uk/Global_economics/Why_do_countries_ trade.html #:~:text=
Countries %20trade%20with%20each%20other,for%20the%20resources%20they%20need
World system Theory. Retrieved September 2, 2020 from https://socialsci.libretexts.org/Bookshelves/

Sociology/Book%3A_Sociology_(Boundless)/08%3A_Global_Stratification_and_Inequality/8.06%3A_
Sociological_Theories_and_Global_Inequality/8.6I%3A_World-Systems_Theory#:~:text=peripheral
%3A%20Peripheral%20countries%20are%20dependent,both%20core%20and%20periphery%20countr
iesThe United Nation. Retrieved September 3, 2020 from https://www.un.org/en/about-un/
NAME: ____________________________________ SCORE: 107

Activity No.1. (10pts.)

Cite atleast (5) five Transnational Corporations HARMFUL or NOT? Why?
Transnational Corporations HARMFUL or NOT? Why?
1.
2.
3.
4.
5.
Activity 2. (20pts.)
Direction: Create an image of the following aspects and describe your image
1. 2.
Global Corporation Global Citizen

____________________________________________ ___________________________________________
____________________________________________ ____________________________________________
____________________________________________ ____________________________________________
3. 4.
Global Governance Global Economy

___________________________________________ ____________________________________________
___________________________________________ ____________________________________________
___________________________________________ ____________________________________________
Activity # 3 (12pts.)
List down atleast (2) two Roles/Functions of the following Economic Institutions
Economic Institutions/Organizations Roles/Functions of Economic Institutions
1.WTO- World Trade Organization 1.
2.
2. WB- World Bank 1.
2.
3. IMF- International Monetary Fund 1.
2.
4. EEC- European Economic Community 1.
2.
5. UN-United Nations 1.
2.
6. ASEAN-Association of Southeast Asian Nation 1.
2.
EVALUATION
statement is wrong.
____1. Euro is the official currency of United Kingdom.

____2. Command economy promotes competition among businesses and firms.
____3. The WB was formed to finance the reconstruction of war-torn countries brough by the
devastation of World War II.
____4. IMF is a dispute settlement body responsible for resolving trade problem.
____5. WTO main function is to supervise exchange rate system, and providing loan programs to
economics.
____6. Transnational companies own a home company and its subsidiaries.
____7. Multinational companies do not have subsidiaries but just many companies.
____8. Peripheral. Countries that are dependent on core countries for capital and have
underdeveloped industry.
____9. Core. Are dominant capitalist countries which exploit the peripheral countries for labor and
raw materials.
___10. UN is an international organization comprising 27 European countries and governing
common economic, social, and security policies.
___11. APEC was the second multipurpose international organization established in the 20th
century that was worldwide in scope and membership.
___12. The EU is a regional economic forum established in 1989 to leverage the growing
interdependence of the Asia-Pacific.
___13. ASEAN was formed to accelerate economic growth, social progress, and cultural
development and to promote peace and security in Southeast Asia.
___14. WTO is one of the three biggest international organizations that formulate and coordinate
world economic policies.
___15. The US dollar is the universal currency of the world.
PART II. ESSAY (Explain briefly your answer in one-two paragraphs). 30 Points
1. What is the significance of the United Nations across the world, especially the Philippines as a
developing country? (10pts.)
2. Do poor countries gain much from global corporations? Defend your answer. (10pts.)
3. What do you think is the importance or significance of international financial institutions to poor or
developing economies or countries? (10pts.)
ASSIGNMENT
Direction: React on the following: (10 pts. each)
1. Education must also be a priority where refugees are concerned in order to avoid a “lost generation” of
youth.
2. Globalization is the effective erasure of boundaries for economic purposes.

Bambang Campus

PROGRAM 1A
YEAR LEVEL 1st YEAR TIME FRAME 6 hours WK NO. 7-8 IM NO. 5
I. CONTEMPORARY GLOBAL GOVERNANCE
II.LESSON TITLE:
1. Global Governments and Governance

2. Problems in Global Governance
3 Political Systems
4. Collectivism and Individualism
4.1. Individualism
4.2. Collectivism
5. Totalitarianism and Democracy
6. Political Layers and Geopolitics
6.1. Unilateralism
6.2. Multilateralism
6.3. Isolationalism
7. Global Political Institutions
7.1. United Nations
7.1.1. Organs of the United Nations
7.2. North Atlantic Treaty Organization
III.LESSON OVERVIEW
The lesson provides the students a grasp about the functions of governments in globalization,
problems and issues in affecting global governance and relationship of countries, various political
systems and institutions in global order and governance and as well as to examine the nature of
geopolitics under contemporary world.
1. define global governments and governance and discuss their functions in globalization;
2. describe problems and issues in affecting global governance and relationship of countries;
3. discuss the various political systems and institutions in global order and governance; and
4. examine the nature of geopolitics under contemporary world by making data retrieval
chart/reflection.
V.LESSON CONTENT
Introduction
Global governance or brings together diverse actors to coordinate collective action at the level
of the planet. The goal of global governance, roughly defined, is to provide global public goods,
particularly peace and security, justice and mediation systems for conflict, functioning markets and
unified standards for trade and industry. One crucial global public good is catastrophic risk
management – putting appropriate mechanisms in place to maximally reduce the likelihood and
impact of any event that could cause the death of 1 billion people across the planet, or damage of
equivalent magnitude.
The world faces different challenges like civil wars, hunger and poverty, sexual abuse, climate
change and poor infrastructures are most common problems where collective efforts are needed.
1. Global Governments and Governance
The term “global government” is response on the actions of various stakeholders on finding
out pressing global problems like climate change and issues and peace and security. The world has
no global government and global authority. There are political and economic bodies operating
worldwide but no single organization possesses a global authority in enforcing and compelling others
to follow.
Global governance or world governance is a movement towards political cooperation among

transnational actors, aimed at negotiating responses to problems that affect more than one state or
region. It also refers to domestic institutions and governments on how large-scale problems and
public-policy issue are being solved at a global level; a movement towards political cooperation
among transnational actors, aimed at negotiating responses to problems that affect more than one
state or region.
The fact that states in an international order continue to observe to certain global norms
means that there is a semblance of world order despite the lack of a single world government. These
various intersecting processes that create this order signs treaties and form organization in the
process legislating public international law (international rules that govern interactions between states
as opposed to, mention are private companies.
It involves management, authority, cooperation and mechanism that are aimed to attain
certain goals. These various intersecting processes are bounded by consensus and agreements
where numbers are expected to perform based on the guidelines and policies. Institutions of global
governance may include the United Nations, the International Criminal Court, the World Bank, World
Trade Organization, World Health Organization, etc. operate globally– but have limited or demarcated
power to enforce compliance. They exist because of its identifiable role and function in responding
problems at a global scale.
The downside of a global governance is establishing its sovereignty and accountability to all
decisions framed and actions implemented. States may not conform and deviate by the norms set by
international institutions.
Example: The act of China for not abiding and recognizing to the decisions made by the International
Criminal Court on the diplomatic protest filed by the Philippine government regarding the West
Philippine Sea issue is an example that international bodies with good governance system have
insufficient power to neither comply nor punish its members.
2. Problems in Global Governance
a. Jurisdiction Gap. The lack of governance in taking actions to problems affecting key sectors
arises from the absence of authority. There should be the creation of power and jurisdiction to
governments and international organizations which is committed in confronting issues like
unemployment, human rights, peace and crimes
b. Incentive Gap. This is an issue between rich and poor countries of the world because of uneven
distribution of authority and control over decisions and policies. Poor countries usually received
minimal attention and support from coalition of body due to its contributory constraints. Usually
poor countries that do not provide higher material contribution usually receive lesser amount of
incentives.
c. Participation Gap. In terms of decision-making, member-states sometimes disagree on issues

that are harmful to their interests, they don’t involve themselves in decisions that are critical to the
economic and political welfare of their sovereignty. Example: The WTO member economies do
not agree on very controversial issues like policies affecting the sector of agriculture. With these,
countries being affected with the implementation of the policy will no longer express their
opposition and unwillingness to cooperate.
3. Political Systems
Political system really has an implication to the success of its economy and the overall
governance. Undayansakar (2012) identified two dimensions of political system: First, a country
emphasizes the importance of individualism as opposed to collectivism. Second, a system in which
a country either democratic or totalitarian in its form of government.
4. Collectivism and Individualism
4.1. Individualism
Individualism is a political system that values the significance of individuals over collective goals.
Freedom of the people is the primary consideration in an individual society; government values
choices and preferences of its people at very personal level. Aristotle mentioned that the
interests and individual diversity as well as private ownership should prevail over the interests
of the state.
Elements of Individualism
a. Individual freedom and expression are important in a sense that individuals just like state
have sovereignty. The state must have preferential attention to the sanctity and social worth
of freedom and expression among its people.
b. The pursuit of economic interests among individuals. If people will be given enjoyment on
what to do and how to do things, the best interests will be achieved not just only within the
personal or individual level but even the interests of the nation.
 The success of the economy and other aspects of society is based on the personal
interest and pursuit of man
4.2. Collectivism
A philosophy that stresses the importance of collective goals over individual freedom and
interests. The state, as the primary economic manager views collective actions as the best
strategy in establishing the welfare and interests of the nation. As a way of attaining goal, it is
more ideal that individualism where the interest of the many is a majority.
Plato believed that social stratification must be built in order for the society and the entire
economy and government be managed properly and orderly.
Example: Socialist nationalism in which their Central government focusses on the idea of social
and economic equality of individuals. Institutions must restrict the economic freedom and
distributive wealth to the working class.
5. Totalitarianism and Democracy
Question: What is the difference between a democracy and totalitarianism?
Democracy is a political system in which government is by the people, exercised either directly or
through elected representatives. The direct participation in modern societies involves representation,
where individual periodically elect someone who has the ability to represent them in government.
 Representative Democracy. Competitive elections occur where candidates freely compete for
votes through the conduct of fair and honest election. Elected officials that represents the citizen
are accountable for their actions and the management and operation of the state.
 Democratic States have provided constitutional laws to safeguard the welfare and the
interest of the people.
Wenson (1990) enumerate the nine (9) common practices and description of an ideal representative
democracy.
 Freedom of expression, opinion and organization
 Freedom of the media and the press
 The conduct of regular elections
 Universal adult suffrage
 Specific and limited terms for elected officials
 Independent judiciary and court system
 Nonpolitical and nonpartisan police force
 Public access to information
Totalitarianism is a form of government in which one person or political party exercises absolute
control over all spheres of human life, and opposing political parties are prohibited.
There are four major forms of totalitarianism today:

 Communist totalitarianism: advocates achieving socialism through totalitarian dictatorship.
Example: China, Cuba, and North Korea.
 Theocratic totalitarianism: political power is monopolized by a party, group, or individual that
governs according to religious principles. Example: Iran and Saudi Arabia
 Tribal totalitarianism: a political party that represents the interests of a particular tribe
monopolizes power. Example: African States
 Right wing totalitarianism: individual economic freedom is allowed but individual political
freedom is restricted in the belief that it could lead to communism. Example: South Korea and
Taiwan
6. Political Layers and Geopolitics
Some states across the contemporary world are hungry of power. Some realists define power
as the capability of each country or state like population, resource, territory, economic and as well as
military strength (Chomsky, 2006; Nau, 2008). Atypical definition of power is the ability of an individual
or group of people or institution to affect behavior of others even against their will. Today, the power
of each state or country is associate with their political or economic capability; such as the country of
US, China and Japan for having advanced and expensive military force and big economies.
The way they control and influence global politics marks them as manipulator of world politics.
In the arena of international relations, we have geopolitics as a focus and concentration of a
country’s location, environment and geography as the basis of its national interests. Nau,2008). A
good example of these, are the US and China as they possessed vast land and territory
6.1. Unilateralism
One country like the US is in position of dominance, with other countries following each lead. Us
able to maintain each economic dominance and its valuable role in sustaining the world economy.
Though China and other emerging economies nowadays, their economic growth are dependent on
the American Market. In addition to these, American military power is considered the highly valued
military force in the world with billions of dollars spent by their government. Evidently, their military
presence in the Asia-Pacific, Middle East and Africa, Europa and South America is a remarkable
manifestation of its control in global defense operation. However, global stability and power being
enjoyed by the Americans can only be sustained if they employ liberal values of freedom, democracy
and human rights, (Balaam and Vesseth, 2008). The US must exercise caution, caution and restraint
and civility to poor countries like Haiti, Sierra Leone and Balkan Strait.
6.2. Multilateralism
For the US to maintain hegemony and global, it has to form alliances and coalitions into a
multipolar configuration of power. The idea of multilateralism includes three power.
 Bipolar – This happens if there are only two great powers dominating the distribution of
power. The Cold War between the USSR and the USA is an example of bipolarity, global
power was contested between them.
 Tripolar – The existence of three states dominating the distribution of global order. United
States, Japan and Europe were considered as potential powers during the Second World
War. They controlled areas under their respective military instruments and interests. In
the area of global economic power, Japan, China and the United States are the most
favored nations as identified the three leading economic giants of the modern time.
 Multipolar or multipolarity – This situation takes place when there are more states
involved in the distribution of global power. This is the alignment of the powerful and
emerging powers in the world. This may include China, Japan, Europe, Russia and the
United States and major alliances as key players in the distribution of power.
Question: Which style of balance of power will provide sustainable global order?
 Wiliam Wohlforth of Georgetown University explained the distribution of power is unstable and
conflict-prone based on the following reasons:
1. The World System is unambiguously unipolar which is predominantly enjoyed by

superpower United States and the next powerful sates- it has all the power in the following
areas; economic, military and technology.
2. Unipolarity is prone to pace. The power of the US is a framework of global leadership such
as the international system in the future. Wohlforth added that unipolarity minimizes
competition among other great powers.
3. Unipolarity is not only peaceful, but durable too. An example of these, is the United States
has identified component such as military, economic, and technology. Countries that has
economic interest with US is an allies.
Multilateralism requires states to follow international norms and pay more respect to
international institutions; this is contrasted with unilateralism, where a single state can influence how
international relations can be conducted.
6.3. Isolationalism
The policy or doctrine of isolating one's country from the affairs of other nations by declining to
enter into alliances, foreign economic commitments, international agreements, etc., seeking to devote
the entire efforts of one's country to its own advancement and remain at peace by avoiding foreign
entanglements and responsibilities.
7. Global Political Institutions
7.1. United Nations
United Nations (UN), international organization established on October 24, 1945. The United
Nations (UN) was the second multipurpose international organization established in the 20th century
that was worldwide in scope and membership. Its predecessor, the League of Nations, was created
by the Treaty of Versailles in 1919 and disbanded in 1946. Headquartered in New York City, the UN
also has regional offices in Geneva, Vienna, and Nairobi. Its official languages are Arabic, Chinese,
English, French, Russian, and Spanish.
In addition to maintaining peace and security, other important objectives include developing
friendly relations among countries based on respect for the principles of equal rights and self-
determination of peoples; achieving worldwide cooperation to solve international economic, social,
cultural, and humanitarian problems; respecting and promoting human rights; and serving as a center
where countries can coordinate their actions and activities toward these various ends.
The UN formed a continuum with the League of Nations in general purpose, structure, and
functions; many of the UN’s principal organs and related agencies were adopted from similar
structures established earlier in the century. In some respects, however, the UN constituted a very
different organization, especially with regard to its objective of maintaining international peace and
security and its commitment to economic and social development.
At present, the United Nations has six principal organs: the General Assembly, the Security
Council, the Economic and Social Council, the Trusteeship Council, the International Court of Justice,
and the Secretariat.
The name "United Nations", coined by United States President Franklin D. Roosevelt was first
used in the Declaration by United Nations of 1 January 1942, during the Second World War, when
representatives of 26 nations pledged their Governments to continue fighting together against the
Axis Powers.
7.1.1. Organs of the United Nations
The main organs of the UN are the General Assembly, the Security Council, the Economic and
Social Council, the Trusteeship Council, the International Court of Justice, and the UN Secretariat.
General Assembly. The General Assembly is the main deliberative, policymaking and representative
organ of the UN. All 193 Member States of the UN are represented in the General Assembly, making
it the only UN body with universal representation. Each year, in September, the full UN membership
meets in the General Assembly Hall in New York for the annual General Assembly session, and
general debate, which many heads of state attend and address. Decisions on important questions,
such as those on peace and security, admission of new members and budgetary matters, require a
two-thirds majority of the General Assembly. Decisions on other questions are by simple majority.
The General Assembly, each year, elects a GA President to serve a one-year term of office.
Security Council. The main responsibility is the maintenance of international peace and security. It
has 15 Members (5 permanent and 10 non-permanent members). Each Member has one vote. Under
the Charter, all Member States are obligated to comply with Council decisions. It takes the lead in
determining the existence of a threat to the peace or act of aggression and calls upon the parties to
a dispute to settle it by peaceful means and recommends methods of adjustment or terms of
settlement. In some cases, the Security Council can resort to imposing sanctions or even authorize
the use of force to maintain or restore international peace and security. The Security Council has a
Presidency, which rotates, and changes, every month.
 Daily program of work of the Security Council

 Subsidiary organs of the Security Council
Economic and Social Council. The Economic and Social Council is the principal body for
coordination, policy review, policy dialogue and recommendations on economic, social and
environmental issues, as well as implementation of internationally agreed development goals. It
serves as the central mechanism for activities of the UN system and its specialized agencies in the
economic, social and environmental fields, supervising subsidiary and expert bodies. It has 54
Members, elected by the General Assembly for overlapping three-year terms.
Trusteeship Council. The Trusteeship Council was established in 1945 by the UN Charter, under
Chapter XIII, to provide international supervision for 11 Trust Territories that had been placed under
the administration of seven Member States, and ensure that adequate steps were taken to prepare
the Territories for self-government and independence. By 1994, all Trust Territories had attained self-
government or independence.
International Court of Justice. Serves as the principal judicial organ of the United Nations that seats
at Peace Palace in the Hague (Netherlands). The only one among the six principal organs of the
United Nations not located in New York (United States of America). Its role is to settle, in accordance
with international law, legal disputes submitted to it by States and to give advisory opinions on legal
questions referred to it by authorized United Nations organs and specialized agencies.
Secretariat. It comprises the Secretary-General and tens of thousands of international UN staff
members who carry out the day-to-day work of the UN as mandated by the General Assembly. The
Secretary-General is chief administrative officer of the Organization, appointed by the General

Assembly on the recommendation of the Security Council for a five-year, renewable term.
7.2. North Atlantic Treaty Organization
Founded in 1949 as a bulwark against Soviet aggression, the North Atlantic Treaty Organization
(NATO) remains the pillar of U.S.-European military cooperation. An expanding bloc of NATO allies
has taken on a broad range of missions since the close of the Cold War, many well beyond the Euro-
Atlantic region, in countries such as Afghanistan and Libya.
In 2019, as the alliance turns seventy, it faces a new set of challenges. Russia has reemerged
as a top geostrategic rival in recent years, underscored by its military incursions into Georgia and
Ukraine as well as its political meddling in NATO countries. Meanwhile, quarrels between members,
some initiated by the United States, have thrown the alliance’s unity into question.
After the demise of the Soviet Union in 1991, Western leaders intensely debated the direction of
the transatlantic alliance. President Bill Clinton’s administration favored expanding NATO to both
extend its security umbrella to the east and consolidate democratic gains in the former Soviet bloc,
while some U.S. officials wished to peel back the Pentagon’s commitments in Europe with the fading
of the Soviet threat.
The Strategic Concept is an official document that outlines NATO’s enduring purpose and
nature, and its fundamental security tasks. It also identifies the central features of the new security
environment, specifies the elements of the Alliance’s approach to security and provides guidelines
for the adaptation of its military forces.
 Strategic Concepts equip the Alliance for security challenges and guide its future political and
military development.
 They reiterate NATO’s enduring purpose and nature, and its fundamental security tasks.
 They are reviewed to take account of changes to the global security environment to ensure the
Alliance is properly prepared to execute its core tasks, making transformation in the broad sense
of the term, a permanent feature of the Organization.
 The current Strategic Concept “Active Engagement, Modern Defense” (2010) outlines three
essential core tasks – collective defense, crisis management and cooperative security.
 Over time, the Alliance and the wider world have developed in ways that NATO's founders could
not have envisaged, and these changes have been reflected in each and every strategic
document that NATO has ever produced.
Activity No.1. (30 Points)

Direction: Enumerate atleast (5) five global problems of countries/institutions. Provide information of their
struggles or problems and identify actions taken in solving the problems.
Activity No.2 Reflective Figure (9 Points)

VII. EVALUATION

statement is wrong.
1. The founding of NATO's is to protect the freedom of its members. Its focus includes
weapons of mass destruction, terrorism, and cyber-attacks.
2. Global governance brings countries altogether because of the presence of a single global
government.
3. Global governance is a movement geared towards political cooperation among
transnational actors; responding to problems that affects more than one state or region.
4. The WTO member economies do not agree on very controversial issues like policies
affecting the sector of agriculture.
5. There are two political system in the world: an emphasis on the importance of
individualism as opposed to collectivism and a system in a country is either democratic or
totalitarian in its form of government.
6. The Cold War between the USSR and the USA is an example of tripolar.
7. The People’s Democratic Republic of China is now in position of dominance, maintaining
economic and military power across the globe.
8. Communist totalitarianism: advocates achieving socialism through totalitarian dictatorship.
9. One of the many reasons why some countries seeking to devote their entire efforts for their
own advancement is to remains at peace by avoiding foreign entanglements and
responsibilities.
10. Under Representative democracy, selected officials represent their citizens in the
management and operation of the state.
11. The General Assembly is responsible in the maintenance of international peace and
security.
12. After World War II, one of the many important roles of the UN is to prevent conflict; helping
parties in conflict make peace; peacekeeping; and creating the conditions to allow peace to
hold and flourish.
13. The diplomatic protest of the Philippines against China over the West Philippine was filed
to the Security Council of the UN.
14. Japan, China and the United States are tripolar economy; the three most favored nations
as identified leading economic giants of the modern time.
15. The Philippines is a Third World Country with a developing economy, the government must
pursue modernizing its defense and/or military installations across the country.
VIII. ASSIGNMENT
1. Should the Philippines withdraw its membership to United Nations? Why? Explain. (10pts.)
2. Differentiate Economic Growth to Economic Development? (10pts.)
IX. REFERENCES
Abinales, Patricio N. et.al. (2018). The Contemporary World. Quezon City: C & E Publishing
Incorporated.
Ariola, Mariano M. (2018). The Contemporary World. Manila: Unlimited Books Library Services &
House.
Isolationalism. Retrieved September 7,2020 from https://www.dictionary.com/browse /isolationism
Strategic Concepts of the NATO. (June 12, 2018). Retrieved September 4, 2020 from
https://www.nato.int/cps/en/natohq/topics_56626.htm
Masters, Jonathan. (December 3, 2019). North Atlantic Treaty Organization. Retrieved September
7,2020 from https://www.cfr.org/backgrounder/north-atlantic-treaty-organization-nato
Orback, Jens. Retrieved September 9,2020 from https://globalchallenges.org/global-governance/
United Nations. Retrieved September 7, 2020 from https://www.un.org/en/sections /history/ history-

united-nations/index.html
NAME: ____________________________________ SCORE: 74


Direction: Enumerate atleast (5) five global problems of countries/institutions. Provide information of their
struggles or problems and identify actions taken in solving the problems.
Countries/Institutions Global Problems (2) Actions Taken (2)

1. 1. 1.
2. 2.
2. 1. 1.
2. 2.
3. 1. 1.
2. 2.
4. 1. 1.
2. 2.
5. 1. 1.
2. 2.
6. 1. 1.
2. 2.

(KNOWLEDGE)

and discovered
(VALUES)
Things I have
discovered and
wanted more
(SKILLS)
EVALUATION

statement is wrong.
1. The founding of NATO's is to protect the freedom of its members. Its focus includes
weapons of mass destruction, terrorism, and cyber-attacks.
2. Global governance brings countries altogether because of the presence of a single global
government.
3. Global governance is a movement geared towards political cooperation among
transnational actors; responding to problems that affects more than one state or region.
4. The WTO member economies do not agree on very controversial issues like policies
affecting the sector of agriculture.
5. There are two political system in the world: an emphasis on the importance of
individualism as opposed to collectivism and a system in a country is either democratic or
totalitarian in its form of government.
6. The Cold War between the USSR and the USA is an example of tripolar.
7. The People’s Democratic Republic of China is now in position of dominance, maintaining
economic and military power across the globe.
8. Communist totalitarianism: advocates achieving socialism through totalitarian dictatorship.
9. One of the many reasons why some countries seeking to devote their entire efforts for their
own advancement is to remains at peace by avoiding foreign entanglements and
responsibilities.
10. Under Representative democracy, selected officials represent their citizens in the
management and operation of the state.
11. The General Assembly is responsible in the maintenance of international peace and
security.
12. After World War II, one of the many important roles of the UN is to prevent conflict; helping
parties in conflict make peace; peacekeeping; and creating the conditions to allow peace to
hold and flourish.
13. The diplomatic protest of the Philippines against China over the West Philippine was filed
to the Security Council of the UN.
14. Japan, China and the United States are tripolar economy; the three most favored nations
as identified leading economic giants of the modern time.
15. The Philippines is a Third World Country with a developing economy, the government must
pursue modernizing its defense and/or military installations across the country.
ASSIGNMENT:
1. Should the Philippines withdraw its membership to United Nations? Why? Explain. (10pts.)
2. Differentiate Economic Growth to Economic Development? (10pts.)

Campus :Bambang

PROGRAM 1A
YEAR LEVEL 1st YEAR TIME FRAME 6 WK 9-10 IM NO. 6
hours NO.
I.GLOBAL ECONOMY AND GOVERNANCE
II.LESSON TITLE:
6. Global Civil Society and Non-Governmental Organizations

6.1. Global Civil Society
6.2. Characteristics of Non-Governmental Organizations
6.3. Roles of Civil Society Organizations
6.4. Transnational Non-Governmental Organizations
III.LESSON OVERVIEW
This chapter discusses the civil society and non-governmental organizations and examine the role of
civil society organizations in globalization. It also discourses the various global civil society organizations
and their interests.
At the end of the lesson, the students should be able to:
1. define civil society and non-governmental organizations;
2. examine the role of civil society organizations in globalization; and
3. discuss the various global civil society organizations and their interests
V.COURSE CONTENT
INTRODUCTION
Civil society and non-governmental organizations or NGOs are the third sector of the society aside
from the government and business. The UN recognizes the important role of partnering with civil society
groups and non-governmental organizations in advancing the welfare of its stakeholders. The participatory
mechanisms of NGOs and civil society groups like the Occupy movement provide avenue for all parties to
relook actions and norms that are considered potentially beneficial and potentially risky to all.
6. GLOBAL CIVIL SOCIETY AND NON-GOVERNMENTAL ORGANIZATIONS
Global Civil Society (GCS), is a global and international network of nongovernmental organizations with the
purpose of influencing governments and organizations in various issues and concerns.
World Bank defined Civil Society, as “the wide array of non-governmental and not-for-profit organizations that
have a presence in public life, expressing the interests and values of their members or others, based on ethical,
cultural, political, scientific, religious or philanthropic considerations.
Civil society organizations, therefore refer to a wide array of organizations: community groups, NGOs, labour
unions, indigenous groups, charitable organizations, faith-based organizations, professional associations, and
foundations.”
Civil society and non-governmental organizations or NGOs are the third sector of the society aside from the
government and business.
Characteristics of Non-Governmental Organizations

1. An NGO must be entirely independent from the control of any government.
2. NGOs are not considered as political party.
3. NGOs perform their tasks not because of generating income or profit.
Roles of Civil Society Organizations
1. Watchdog. CSOs monitor the behavior of institutions in the promotion of transparency and accountability.
It monitors how institutions behave in terms of its programs that have national and public interest and are
detrimental and beneficial to stakeholders.
2. Advocate. They initiate programs that could raise public awareness of issues and challenges and
advocating for change. CSOs are known in articulating and publicizing issues that need public involvement
especially matters requiring the initiative and strong participation of the public.
3. Service Provider. These organizations are active in delivering services to meet social needs including
food and security, health and education as well as preparedness and disaster management. Some
organizations provide services and projects that governments fail to deliver especially during critical period
like emergency relief and assistance.
4. Expert. They bring unique knowledge and experience to evaluate policy and strategy, and identify
solutions. CSOs are known as major primary provider of knowledge and expertise on various
engagements like institutional reforms, enhancement of basic social services and its delivery, and
economic empowerment.
5. Capacity builder. Civil society provides services providing relevant training, education and capacity
building to communities. Its direct involvement in grassroots community has resulted to the development
on the lives of the people where services on education, health, and training programs have implemented.
6. Incubator. CSOs act as an armory in developing solutions that requires long payback period. They have
systematic and enhanced knowledge infrastructures that provide sustainable and substantial solutions to
key problems.
7. Representative. They give power in emphasizing rights of the marginalized and voices of under-
represented. CSOs are described as major voices in linking the interest of the marginalized and
underprivileged sectors of society to governments and concerned agencies.
8. Citizenship champion. CSOs are known in encouraging citizen engagement and championing the rights
of the minority. Empowering communities is an institutional concept used by CSOs in most of its programs
which aim to uplift and accelerate community participation in advancing their rights.
9. Solidarity supporter. They promote the ethical, just and humane practices as part of promoting universal
values geared towards sustainability and balanced life of the many. CSOs encourage full support and
commitments of primary stakeholders like government, private, and public sectors in key issues.
10. Definer of standards. CSOs create and frame norms that will shape and make the activities of the people
and societies. Their practices and innovative programs are sometimes used as benchmark and global
standards in the implementation of projects.
Civil society helps government agencies and other non-governmental bodies in framing ideal policies and
strengthening networks for a more collaborative partnership of all stakeholders.
Transnational Nongovernmental Organizations are international not-for-profit organizations that are
interdependent and are not controlled by governments. TNGOs operate as an extension of the private life of the
state transcending from domestic to international affairs.
Multinational Corporations (MNCs) and Transnational Corporations, are the modern versions of global
commercial enterprises. Powerful organizations and firms like (Google, Toyota, Exxon Mobil, WalMart, and
Samsung) continuously generating profit at a large scale. MNCs are companies that have global approach to
markets and production with huge investment in production facilities located in different countries.
Environmental Nongovernmental Organizations are considered as vanguard against the abuses of capitalists
and organizations that negatively affect the environment.
Two of the most prominent environmental NGOs
1. Greenpeace is known for its fearless stand and expression on the neglect of key institutions in damaging
oceans, shipments of toxic products, and forest degradation in areas like Brazil.
2. World Wildlife Fund (WWF) the world’s largest multinational conservation organization.
Ways and Styles on how Environmental groups can participate in global governance:
1. Expert advice and analysis.

2. Intellectual competition to governments.
3. Mobilization of public opinion.
4. Representation of the voiceless.
5. Monitoring and assessments.
6. Legitimization of global scale decision-making.
Amnesty International or (AI) is one of the world’s most famous and active human rights NGOs operating in
different countries worldwide. It is known in focusing key advocacies and causes on judicial and justice system
reform, abolition of death penalty, protecting the rights of migrants and refugees as well as protection to human
rights defenders, and promoting the rights of marginalized communities and indigenous peoples.
Future Challenging Scenarios of Global Civil Society Organizations

1. Mad Max. This is an era characterized by national and international conflicts. NGOS will expect a limited if not
lack of funding coming from key donors and partners.
2. Transparency Blurred. Economic globalization will continue to prevail as the primary face of state relations.
The period 2020-2030 is deeply engaged in dealing global issues where governments and private sector will
actively partner combating these problems.
3. Turbulence and Trust Deficits. Trust within interest groups and citizens will be challenged brought by the lack
of volatile funding.
4. Privatized world. Neoliberalism norm and the emerging power of corporation is seen to be more influential,
blends liberal political views with an emphasis on economic growth.
Direction: Conduct a study on issues affecting your community or village through assessing the lives of the
people, the operation of the local government and the state of environment. Pick one pressing problem,
example enhanced facility for senior citizens and PWDs. Prepare a report on the current condition of the
sector or group being studied, and examine the assistance from the government and the progress made.
Suggested format:
1. Overview of the sector (place/address/no.of beneficiaries/members)
2. The current problems experienced; challenges and immediate risks.
3. Required funding and key partners for budget.
4. Timeline of the project from planning up to implementation (table presentation)
5. Expected outcomes and key results
6. Monitoring and Assessment of the project (impact evaluation)
VII.EVALUATION
Direction: Read and analyze each statement. Write the word TRUE or FALSE
1. ______Global Civil Society is a global and international network of nongovernmental organizations
with the purpose of influencing governments and organizations in various issues and concerns.
2. ______CSOs are considered political parties that have interest in political operation of the state.
3. ______CSOs bring unique knowledge and experience to evaluate policy and strategy, and identify
solutions.
4. ______TNGOs are international not-for-profit organizations that are independent and are not controlled
by governments.
5. ______TNGOs are organizations that have global approach to markets and production with huge
investment in production facilities located in different countries.
6. _______Environmental NGOs are considered as vanguard against the abuses of institutions and
groups on the rights of the people.
7. _______Incubator refers to CSOs encouragement to citizen engagement and in championing the rights
of the minority.
8. _______UN Universal Declaration of Human Rights of 1948 centers on the promotion of political
participation and freedom, entitlements, and basic needs under the obligation of the state to its citizens.
9. _______Mad Max is an era characterized by national and international conflicts and will pose
challenges to CSOs in the future.
10. ______Transparency blurred is a period that is deeply engaged in dealing global issues where
governments and private sector will actively partnered combating these problems.
VIII.ASSIGNMENT
Differentiate GOs from NGOs organization, cite examples and explain. (10pts.)
IX.REFERENCES
De Ocampo F. et al. (2019) Introduction to the Contemporary World. St. Andrew Publishing House Plaridel,
Bulacan.
Ariola, Mariano M. (2018) The Contemporary World. Unlimited Books Library Services & Publishing Inc.,
Intramuros
Manila.
Lobo, Joliver L. et al. (2019) The Contemporary World. Books Atbp. Pub. Corp., Mandaluyong City.
NAME: ____________________________________ SCORE: 70


Direction: Conduct a study on issues affecting your community or village through assessing the lives of the
people, the operation of the local government and the state of environment. Pick one pressing problem,
example enhanced facility for senior citizens and PWDs. Prepare a report on the current condition of the
sector or group being studied, and examine the assistance from the government and the progress made.
Suggested format:
1. Overview of the sector (place/address/no.of beneficiaries/members)
2. The current problems experienced; challenges and immediate risks.
3. Required funding and key partners for budget.
4. Timeline of the project from planning up to implementation (table presentation)
5. Expected outcomes and key results
6. Monitoring and Assessment of the project (impact evaluation)
EVALUATION
Direction: Read and analyze each statement. Write the word TRUE or FALSE
1. ______Global Civil Society is a global and international network of nongovernmental organizations
with the purpose of influencing governments and organizations in various issues and concerns.
2. ______CSOs are considered political parties that have interest in political operation of the state.
3. ______CSOs bring unique knowledge and experience to evaluate policy and strategy, and identify
solutions.
4. ______TNGOs are international not-for-profit organizations that are independent and are not controlled
by governments.
5. ______TNGOs are organizations that have global approach to markets and production with huge
investment in production facilities located in different countries.
6. _______Environmental NGOs are considered as vanguard against the abuses of institutions and
groups on the rights of the people.
7. _______Incubator refers to CSOs encouragement to citizen engagement and in championing the rights
of the minority.
8. _______UN Universal Declaration of Human Rights of 1948 centers on the promotion of political
participation and freedom, entitlements, and basic needs under the obligation of the state to its citizens.
9. _______Mad Max is an era characterized by national and international conflicts and will pose
challenges to CSOs in the future.
10. ______Transparency blurred is a period that is deeply engaged in dealing global issues where
governments and private sector will actively have partnered combating these problems.
ASSIGNMENT
Differentiate GOs from NGOs organization, cite examples and explain. (10pts.)
GOs
NGOs
umbering the IM No.: IM-CCCCCC-SSSSSS-NNNN-NNNN
School Year
Semester
Course Number
e.g.:
IM-COURSE NO-SEMESTER-SCHOOL YEAR
IM-MCB180-1STSEM-2020-2021

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Republic of the Philippines

NUEVA VIZCAYA STATE UNIVERSITY

College: ARTS AND SCIENCES

DEGREE BSINTE 1A, 1B, 1C and BSIT COURSE NO. GEWRLD

I. INTRODUCTION AND THEORETICAL APPROACHES TO GLOBALIZATION

II.LESSON TITLE: INTRODUCTION TO GLOBALIZATION

1.1 Definition of Globalization

The birth of information technology

NVSU-FR-ICD-05-00 (081220) Page 1 of 71

1.1. DEFINITION OF GLOBALIZATION

NVSU-FR-ICD-05-00 (081220) Page 2 of 71

1.4. DIMENSIONS OF GLOBALIZATION

1.6. DIFFERENT CONCEPTS AND COMPETING CONCEPTS OF GLOBALIZATION

Economic globalization refers to the increasing interdependence of world economies as a result of

NVSU-FR-ICD-05-00 (081220) Page 3 of 71

NVSU-FR-ICD-05-00 (081220) Page 4 of 71

e. Greater international cultural exchange, for example through the export of

Globalization in The Philippines?

NVSU-FR-ICD-05-00 (081220) Page 6 of 71

NVSU-FR-ICD-05-00 (081220) Page 7 of 71

Activity 4. Reflection Figure (9 Points)

NVSU-FR-ICD-05-00 (081220) Page 8 of 71

ANSWER SHEET FOR MODULE # 1

NAME: ____________________________________ SCORE: 77

Activity # 1 (21pts.) My Globalization Story

NVSU-FR-ICD-05-00 (081220) Page 9 of 71

NVSU-FR-ICD-05-00 (081220) Page 10 of 71

Activity No.4 Reflective Figure (9pts.)

Things I have learned

Things I have realized

NVSU-FR-ICD-05-00 (081220) Page 11 of 71

International Institutions/Organizations Assistance to the Philippines

NVSU-FR-ICD-05-00 (081220) Page 12 of 71

College: ARTS AND SCIENCES

DEGREE BSINTE 1A, 1B, 1C and BSIT COURSE NO. GEWRLD

I. COMPETING THEORETICAL APPROACHES ON GLOBALIZATION

NVSU-FR-ICD-05-00 (081220) Page 13 of 71

3. John Mearsheimer – was a Realist-thinker

Two Most Prominent founders of Idealism

b. Liberal Institutionalism (institutions/organizations)

c. Idealism/ Identity (ideas)

2. ROLES OF IDEAS AND TECHNOLOGY IN GLOBALIZATION

TRUE OR FALSE (10 Points)

NVSU-FR-ICD-05-00 (081220) Page 17 of 71

NVSU-FR-ICD-05-00 (081220) Page 18 of 71

ANSWER SHEET FOR MODULE # 2

NAME: ____________________________________ SCORE: 62

Activity No.1. (18 pts.)

Realist Countries Description

Activity No. 2. (10pts.)

NVSU-FR-ICD-05-00 (081220) Page 19 of 71

Activity No.3 Reflective Figure (9pts.)

Things I have learned

Things I have realized

NVSU-FR-ICD-05-00 (081220) Page 20 of 71

TRUE OR FALSE (10 Points)

NVSU-FR-ICD-05-00 (081220) Page 21 of 71

College: ARTS AND SCIENCES

DEGREE BSINTE 1A, 1B, 1C and BSIT COURSE NO. GEWRLD