Hello everyone, welcome to the Contemporary World Subject. Today, I will introduce the concepts of globalization and explore on definitions given by different authors. But before we start, let's talk about your past experiences.
Let's talk about your past day or your recent week. I will be showing pictures and questions and try to answer them mentally. Okay?
But before that, let's see our learning objectives for today's lecture. At the end of the lesson, you should be able to differentiate the competing conceptions of globalizations. Next, you should be able to identify the underlying philosophies of the varying definitions of globalization.
And lastly, you should be able to agree on a working definition for the course. For the first question, have you tried listening to songs in Spotify or YouTube Music? Did you crave for this?
Next, do you have a count on this? Or do you have things from foreign brands? So how was it?
If you answered yes to one of these questions, then you are not alone. In fact, we can observe this trend among many young people of your age. This just means that you are living in the contemporary world.
But what is contemporary world? Perhaps you have heard this word before but what do we mean by the contemporary world? So the contemporary world is the modern world, the present world or the present world that you are living.
Okay, moving on. Let's see the definitions of globalization. Okay, so first one. Globalization is the increasing interaction of people, states, or countries through the growth of the international flow of money, ideas, and culture.
Thus, globalization is primarily focused on economic process of integration that has social and cultural aspects. So, your key term here is the interaction. Okay?
So, sa globalization, merong interaction of people. Merong ugnayan ng mga tao. There is socialization.
Okay? Socialization or interaction of people and countries. Okay?
Next one. It is the interconnectedness of people and business across the world that eventually lead to global, cultural, political, and economic integration. Okay, so when we say interconnectedness, there is connectivity, okay? Connected with each other. For example, yung mga fast food chain ngayon, such as McDonald's and Jollibee, yung mga yun hindi naman yun originally gawa dito sa Philippines.
But because of globalization, naging possible yung pagpunta ng mga fast food chain ng ibang bansa dito sa Philippines. Okay? that's one of the impact and effect of globalization okay there is interconnectedness of people and business okay so in the long people but the business another definition it is the ability to move and communicate easily with others all over the world in order to conduct business internationally so your key term here there is movement and communication Okay, actually, their definitions are synonymous.
There is interaction, there is interconnectedness, there is movement and communication. Other definitions, it is the free movement of goods, services, and people across the world in a seamless and integrated manner. Okay, so, it's repeated again, there is movement of people and also goods and services. That's why we have technologies today that... galing rin sa ibang bansa.
For example, yung mga Apple products such as iPhone, iPad, MacBook, lahat naman yun galing sa ibang bansa or gawa sa ibang bansa. And because of globalization, nakarating din sa Philippines. So another definition, it is the liberalization of countries, of their impact protocols, and welcome foreign investment into sectors that are the mainstays of its economy.
So there is liberalization. there is freedom of each countries to implement their own protocols, implement their own rules and regulations, and of course to welcome foreign investors. And lastly, globalization refers to countries acting like magnets, attracting global capital by opening up their economies to multinational corporations. Many have attempted to define globalization. According to Martin Albro and Elizabeth King, globalization as process by which the people of the world are incorporated into a single world society.
So basically, because of globalization, there is singularity of society. According to Anthony Giddens from his book, The Consequence of Modernity, globalization as the intensification of worldwide social relations, which link distant localities in such a way, that local happenings are shaped by events occurring many miles away and vice versa. So there is intensification of social relations.
There is extreme social relations. For example, do you think the issues and happenings in the Philippines are also known by other countries? Definitely yes, okay? Because of globalization and the same thing in the Philippines, we are aware of the issues and happenings that happen in other countries. Okay, there is extreme social relations.
Okay, next one. According to Professor Roland Robertson, a professor in sociology from University of Aberdeen, globalization as the compression of the world and the intensification of the consciousness of the world as a whole. But you have to take note, my dear students, that globalization is a phenomenon.
It's a condition. And it is happening now. That's why there is no universal definition of globalization. You will notice that there are many definitions given about globalization. Okay?
Some are almost the same or have similarities. Others are a bit different. Okay? But take note. Okay?
Take note that globalization is a phenomenon. Okay, moving on to the characteristics of globalization. What are the characteristics of globalization? First, there is social mobility of movement of people regardless of reason.
Sabi nga natin sa definition kanina, there is movement of people. Next one, there is an intensification of interactions. There is extreme interaction of people. Paano ba nagiging possible yung interaction?
Imagine, of course, dahil sa pagtatravel. Movement of people from one place to another. Next one, it is an active process. As I've mentioned to you a while ago, it is a phenomenon. It's a condition, okay?
So it's an active process. Hindi siya natatapos, okay? Next one, it is borderless interaction. So this is inevitable, okay? Hindi na siya may iwasan.
Walang boundary, walang limit ng interaction. And lastly, there is a spread of ideas, knowledge, technology, culture, religion, and so much more. So it's not just movement. and interaction of people, okay?
But there is also spread of ideas, knowledge, technology, culture, religion, and so much more. For example, sa culture, yung mga fan ng K-dramas or mga K-pop group, diba? Dati wala namang ganyan. But because of globalization, naidadala rin yung culture ng ibang countries sa isang place. We have here the historical foundation of the term globalization.
First, before the age of discovery, the age of discovery, 1820s, 1900s, and 20th century. 1897, Charles Stace Russell coined the term corporate giants, referring to a large national trust and other large enterprises of the time. So basically speaking, hindi pa na-coined yung term na globalization.
Okay, hindi pa siya dun nagmula or hindi pa nag-start sa term na globalization. It all started with the term corporate giants by Charles Taze Russell to refer to an enterprise. 1930, the word globalized was used in an article towards new education.
And that's where the term globalized came from. Late 1970s, globalization was coined. So from globalized, it became globalization.
and in early 1981 globalization was used as an economic sense so ginamit yung term na globalization in the field of economic okay late 1980s globalization was popularized by theodore levy so sya pala yung nagpasikat ng term na globalization late 2000s the international monetary fund identified four basic aspect of globalization so first we have the trade and transactions Second, the capital and investment movements. Third, migration and movement of people. And lastly, the dissemination of knowledge. In 2013, the globalization was used to define borderless society.
In 2017, globalization was often used in the academia. So, ginamit na yung term na globalization, yun nga lang, in educational institutions or in the world of academy. Sa mga schools lang siya nagagamit, sa mga educational institutions. 2018, globalization was now used in all disciplines.
So, that is the basic history of the term globalization. Moving on to the indicators of globalization. First, there is interdependence of countries in different social aspects.
So when we say interdependence, there is cooperation, there is collaboration, may pagkakaugnay ng bawat bansa. Okay, interdependence of countries. Next one, advancement of science, technology, and so much more.
Of course, there is advancement when it comes to science and technology. Okay, indicator yan ng globalization. Sabi ko nga kanina, yung mga ibang products sa ibang countries na idadala sa iba pang bansa. Okay, and kung mapapansin nyo rin, kung i-compare natin ang Philippines sa Japan. di hamak na mas advanced ang technology ng Japan.
Okay? Next one, meron ding environmental issues across borders. Of course, we have to admit that there are disadvantages of globalization as well.
Okay? Kahit na may positive effect ang globalization, meron ding negative. And ang isa dun ay yung mga environmental issues such as global warming, air pollution, water pollution, and so much more.
Okay? And then there are also... Categories, subcategories of globalization. We have the economic globalization, cultural globalization, and political globalization. Moving on to its nature, the nature of globalization.
First, a conglomerate of various multiple units located in different parts of the world which are linked by common ownership. So, yung conglomerate na tinutukoy niya dito, ibig sabihin nun, there is a mixture, there is singularity. Okay, a mixture. of various multiple units. Yung units dito, it refers to a person.
Okay? So, kung intindi natin, there is a mixture of various multiple people or person located in different parts of the world which are linked by common ownership. Of course, there is diversity. Imagine, ibat-ibang tao at ibat-ibang lahi nang gagaling sa ibat-ibang bansa.
Kasi nga, merong interaction of people. Okay? Next one.
Multiple units draw a common pool of resources such as money, credit, information, patents, trade names, and control system. Yung patent dito, it's a government license na tinutukoy. Okay? The units respond to some common strategy. So, yung bawat tao daw.
Okay? They have their own strategy. Okay? They have common strategy.
Product presence is in different markets of the world. Sabi ko kanina. Imagine may mga products ang ibang bansa na nasa bansa natin. So, nage-exist yung mga products nila sa mga market sa iba't-ibang countries.
Human resources are highly diverse. Correct naman. When it comes to raw materials, sa paggawa ng mga produkto, iba-iba rin ng ginamit na pyesa. For example, kung ikukumpir mo ang dalawang countries, maaaring yung isang bansa, iba yung ginamit niyang resources, raw materials, dun sa paggawa ng isang bagay. For example, they will make the same phone, same brand, but you can't say that they are the same product.
Transactions involving intellectual properties such as copyrights, patents, trademarks, and process technologies are across the globe. Reasons for globalization. Okay, mga rason, bakit may globalization? Okay, bakit nag-exist ito? First one, rapid shrinking of time and distance across the globe.
One can easily cross the bridge going to the other side of the marketplace due to advanced tools of technology than before. So basically speaking here, shortening of time and distance. Kaya there is globalization.
So imagine, dati hindi... di mo naman i-expect na kapag magta-travel ka, abutin ka lang ng ilang oras. Before, okay?
Dati. Kasi dati, pag magta-travel ka, going from one place to another, aabutin ka pa ng one week or di kaya one month. But because of the advance of technology, napapabilis na yung pagta-travel at saka yung oras, okay?
Yung oras ng pagbabiyahe, okay? Next one, domestic markets are no longer rich as a consequence of many interlocking factors. So, yung domestic markets na tinutukoy dito, it's our local market. Kung ang in-offer mo lang goods and services ay within your country, local market lang, meron kang mga kakompetensya, okay, from other parts of the world.
Mas broader yung kanilang target or yung kanilang market, diba? Next one, companies and institutions go global to find political and economic stability which is relatively good in other countries than the country of origin. So here, they have ideas and realizations that they try to compare the political and economic aspect of other countries to the origin or country that they were born in. Okay, why are they more stable as compared to us? Next reason, to get technological and managerial know-how of other countries due to their advancement in science, technology, education, health, and other fields of discipline.
So basically, to have ideas and knowledge on why Mas advanced yung technology ng isang bansa as compared sa isa pang bansa. Okay? Kaya nga ang Philippines, minsan nagpapadala sila mga students sa other countries para aralin, matutunan yung mga ginagawa nung ibang bansa.
At the same time, pag uwi nila ng Philippines, okay, magpoproduce sila. Kung ano yung natutunan nila dun sa ibang bansa, ipoproduce rin nila dito sa Philippines. Okay? Especially when it comes to technologies. Okay?
Next one, to reduce high transportation costs. if one goes globally using the advanced tools of communication and information. Okay? Another one, to be close to raw materials and to markets for their finished products which are not available in the country of origin. So, of course, there are some instances wherein kapag gagawa ka ng isang product, hindi naman lahat ng materyales or raw materials ay mahanap mo sa lugar mo lang din.
So, kailangan nilang mag-import. For example, you will make a product and the materials that you will use are not available in your country, then definitely you have to import other products from other countries. You will avail their other products so that you can make the product you will make.
Last one, the creation of the World Trade Organization had made it possible in stimulating and crisscross border trade. There are other world bodies like the UN or United Nations and several arbitration bodies where countries agree. So because of globalization, there are also organizations that are being built by other countries. World Trade Organization is the aim of World Trade Organization. It's trade, trading to help producers of goods and services protect and manage their businesses.
Next, we have the stages of globalization. So in stage 1, The first stage is the arm's-length service activity of an essentially domestic company or institution which moves into new market or versus by linking up with local dealers and distributors. So, sa stage 1, it's the partnership pa lang. Okay, it's the associate.
So, dito, nag-a-adjust pa lang si institution or si company at nakikipag-deal na siya sa mga dealers and distributors. Sa stage 2, in this stage, the company or institution takes over these activities. own its own so stage two it's the planning stage okay nagpa plano na si company and see institution so stage three in this stage the domestic based company institution begins to carry out its own manufacturing marketing and sales in key foreign markets so basically stage three it's the implementing stage na okay stage four in this stage the company or institution moves to a full insider position in these markets supported by a complete business system including research and development and engineering.
However, the headquarters mentality continues to dominate. So, in stage 4, it's more on the authorization stage and at the same time, there's a support system. Okay? And then finally, in stage 5, Stage 5, in this stage, the company or institution moves towards a genuinely global mode of operation.
In this stage, global localization happens. That is, the company or institution serves local customers in markets around the globe responding to their needs. This requires an organizational transition.
That is, the company must then nationalize its operations and create a system of values shared by global managers. So basically, in stage 5, It's the full operation of the company or institution. Next one, we have the merits of globalization or the advantages of globalization.
So first one, an open economy is perfast innovation with fresh ideas from abroad. So when we say innovation, there is revolution, there is improvement in everything. Next one, exports jobs often pay more than other jobs. So this is correct. Kung iisipin din natin, kaya prefer ng ibang Filipinos na magtrabaho sa ibang bansa because of their high compensation.
Okay, mataas ang sinasahod as compared sa Philippines na hindi ganun kataas. Next one, productivity grows more quickly when countries produce goods and services in which they are comparative advantageous. Etong comparative advantage, it's a theory of David Ricardo.
Comparative advantage occurs when a country can produce a good or service at a lower cost than another country. For example, US and Japan, they both make iPhones. Okay?
Now, if... The capital that the US will use is low as compared to Japan, then the comparative advantage is the US. Because the capital is low, the cost is low on the materials to produce iPhones. But they will do the same with iPhones. If Japan will use a big capital, then the comparative advantage of the two is the US.
So, compare at the same time advantage. So, the point here of David Ricardo, if your advantage is the goods and services that you can produce as compared to other countries, then focus on that. Okay? That's your advantage.
Moving on to the demerits of globalization or the disadvantages. Okay? I said earlier, it's not just about the advantages of globalization.
It's not just about the benefits that we gain from it. Okay? meron din siyang harmful effects.
Okay? May mga bad sides din. Number one, exploitation of underdeveloped countries.
So, dito, ang affected ay yung mga underdeveloped countries, yung hindi naman ganun kayaman ng mga bansa. And, sa underdeveloped countries, majority ng mga countries na belong dito ay yung countries sa Africa. Okay?
And then, next one, there is widening. of rich and poor gap. Okay, so yung mga mayaman, mas lalong yung mayaman.
Yung mga mayhirap, mas lalong nagihirap. Since there is exploitation, of course, mag-exist din yung gap between rich and poor. And then last one, there is harmful effects on small industries and small business. Since nga, nagkakaroon na ng competitions between domestic market and global market.
Okay, syempre sino ba naman gusto na magbenta lang within the local... market, of course, they also want to offer their goods and services to other countries. In other words, their market is expanding. And what will affect here are small industries and small businesses because there is competition. So that ends our lecture for Chapter 1, Globalization.
Thank you so much for listening. God bless and have a good day ahead.