CONTEMP PRELIMS REVIEWER

UNDERSTANDING GLOBALIZATION
FRAMING GLOBALIZATION
- Beyond a problem-solving approach
- Perspective of “promoting international competitiveness”
- Process and discourse
- Understood and constituted in different ways (critical view)
- Frames of meaning used to describe the world are a part of a political process
- Words and meanings matter
- Implications for social change: geography, identity, production, governance, knowledge
- Impacts on human condition: security, equality, democracy
- Responses: Neoliberalism (markets), Rejectionism (localism/populism), Reformism (public
policies), Transformism (social revolution)
- Contending perspectives:
 LIBERAL/HYPERGLOBAL
1. “end of geography”; “end of the nation-state”; borderless world of flows
2. Privileges an economic and technological logic
3. Globalization as mutually beneficial, progressive, benign
4. New, inevitable, levels off
5. A new modernization theory?
6. The end of the cold war and the ‘end of history”; “there is no alternative”
7. There is however a “pessimist globalist” perspective that emphasize both
homogenization and its negative consequences
 CONSERVATIVE/SKEPTICAL
1. internalization/regionalization
2. Marxism/structuralism – adopt a strong state-centric perspective
3. Rise of anti-global authoritarian populism/nativism
 CRITICAL/TRANSFORMATIONAL
1. dissolution of old boundaries (states, economies, communities)
2. “the state as a space of flows”: power and politics are reconfigured; flow
through, across and around boundaries
3. Speed and magnitude of changes
4. Mobility, hybridity, complexity
5. Global-local nexus
6. Unevenness and new hierarchies: inclusion and exclusion; globalization of
superficiality; globalization of indifference

GLOBALIZATION
- Interconnectivity, interdependence, interrelationships, intercommunications,
internetworking
- Outsourcing, supply-chaining, political liberalization
- Process of interaction and integration of people, companies, businesses, and even
governments in different nations in the world
- Main aim: to connect various countries together by exporting and importing services and
goods
- Intensification of worldwide social relations – link distant localities in such a way that local
happenings are shaped by events occurring many miles away and vice versa
- Internalization & Multinationalization = Globalization
- As a concept: refers to compression of the world and the intensification of consciousness of
the world as a whole
- Process of interaction and integration among the people, companies, and governments of
different nations
 - Process driven by international trade and investment and aided by information technologies
- Expansion and intensification of social relations and consciousness across the world time
and across world space
o Expansion – creation of new social networks and the multiplication of existing
connections that cut across traditional political, economic, cultural and geographic
boundaries
o Intensification – expansion, stretching and acceleration of these networks
o Relates to the way people perceive time and space
o Must be differentiated by an ideology – GLOBALISM (belief)

 M. Steger:
1. Globality – social condition characterized by tight economic, political, cultural, and
environmental interconnections and flows, making currently existing borders and
boundaries irrelevant
2. Globalization – set of social processes that appear to transform our present social condition
of weakening nationality into one of globality; human lives played out in the world as a
single place; redefining landscape of sociopolitical processes and social sciences that study
these mechanisms
3. Global imaginary – concept referring to people’s growing consciousness of belonging to a
global community; destabilizes and unsettles the conventional parameters of understanding
within which people imagine their communal existence

 AS A PROCESS:
- Multidimensional set of social processes that generate and increase “worldwide social
interdependencies and exchanges while at the same time fostering in people a growing
awareness of deepening connections between the local and the distant”
- Start of globalization – depends
- removal of barriers between national economies
- lowering or removal of tariffs and quotas and open trade among nations has helped
globalize the world economy.
- The integration of national economies through trade, investment, capital flow, labor
migration, and technology. To boost development in poor countries and raise standards of
living for their people.
- The key to growing businesses in the 21st century. Businesses must recognize that their
success depends on efficiency and scalability – being able to quickly mobilize global
resources and reach world markets. As a result, it has led economic decision-making away
from local control.
 TYPES:
1. Sociological
- structure, functions in society
- involves interconnected changes in the spheres of society
2. Cultural
- traditions, practices, norms
- spread of ideas, values, and meanings across different countries. It
transcends in the realm of business, family, relations, food, language, or
metaphysical beliefs.
- Religion, language, cuisine, fashion, music and dance, and other
ramifications of pop culture are the elements in cultural globalization.
- Results to ‘Americanization’ of the young generation
3. Economic
- movement or interdependence of people, capital, technology, goods and
services on a global scale.
 -interplay of different countries and regions with one another to gain
beneficial partnerships and establish economic growth.
- increase of interdependence of world economies due to the growing scale
of trading commodities between countries, the flow of international capital,
and the spread of technologies.
4. Political
- policies, government
- Shared, conviction that all people should be governed by their own consent
and a rule of law.
5. Financial – interconnection of world’s finance
6. Technological – connection through technology
 SOCIO-CULTURAL PROCESS
- it covers the diffusion of beliefs, practices, and issues concerning population
growth, media, urbanization, tourism, education, and sports that also drive
nations, institutions, and governments to expand social relations.
- Negative side is that global health is at risk, due to international travel, it
contributed to the spread of communicable and fatal diseases such as HIV,
AIDS, SaRS, bird flu, etc.
- United Nations cooperates among countries to control and eradicate these
global health issues
 ECONOMIC PROCESS
- determined as the continuous restructuring and readjustment of the global
industry, because of the development of science and technology and the
increase of income level
 POLITICAL PROCESS

 AS A CONDITION:
- Globality
- Transplanetary connectivity (establishment of social links between people located at
different places of the planet – not geographic unit but as a space) and supra-territoriality
(social connections that transcend territorial geography – renders borders and barriers
irrelevant) (Scholte)
 EFFECTS:
- Global market
- Competition
- Culture
- Job insecurity
- Stable security
- Environmental change
- Fluctuation in prices
- Developed and developing countries are impacted by globalization (Bhasin)
 CURRENT SITUATION
- Its rise has led to many effects (positive/negative)
- Caused the world to become more connected with many countries (Pennisi)
- Still more room to improve
- Allows the creation of “clusters” – connection between businesses
- A global market allows more efficient production and easier access to
cheaper and higher-quality goods and services
- Some countries are still imposing protectionism (limiting the number of and
enforcing taxes on imports)
- “Regional Inequality” = a country that mass produces its goods will sell their
products at a low price
 BENEFITS:
- Increased free trade
- Diversity of goods
- More capital
- Potential growth of local companies
- More business negotiations across the globe
- Efficient communication and transport
- Cooperation among nations
- Less possibilities of warfare
- People from all parts of the world are easily connected through mass media
- Political ideas become widespread
- More environmental issues are being addressed
- Different cultures are greatly influenced by one another
 PROBLEMS
- Making the rich, richer, makes the non-rich poorer
- Big companies are able to expand their businesses and get a hold of more
power
- High demand must adhere to a higher supply – lack of concern for the
environment and the mismanagement of natural resources
- Greenhouse effect
- Water pollution
- Soil pollution
- Encroachment of land
- Uses up finite resources more quickly
- Increases world oil prices
- Too much dependence on imports
- More workers and laborers experience social injustice and unfair conditions
- Exploitation of workers
- Cost of labor
- Human trafficking
 - Tverberg: big companies have the power to transfer their taxes to the
individuals
- Barriers like imposing restrictive export and measures
- Virus and communicable diseases
- Losing borders = losing identity
- Large multinational companies promote their products globally
- Local companies are edged out of the market
- Western countries impose cultural values on others through media and
popular culture
- Language – key expression of cultural diversity
- Marginalizes some languages and may even cause some languages to die
out
- Territories are linked together, one of them should avoid collapsing.

 AS AN IDEOLOGY:
- Exist in the people’s consciousness – ideas and beliefs about the global order
- 6 Core Claims
1. Globalization is about the liberalization and global integration of markets.
2. Globalization is inevitable and irreversible.
3. Nobody is in charge of globalization.
4. Globalization benefits everyone in the long run
5. Globalization furthers the spread of democracy in the world.
6. Globalization requires a global war on terror.
 ANCIENT PHILOSOPHERS
- All have this common sense of wanting to draw closer to one
another and be open to different identities, cultures, views apart
from their own.
o Hierocles’ Concept of Oikeiosis
- Oikeiôsis – affiliation, affinity, appropriation, endearment,
familiarization, and orientation; to grow closer to the concentric
circles
- Concentric circles:
 innermost: oneself
 last/outermost: one’s family, society, humanity
- Stoic ethics we all belong to a “single and universal community.”
- Immanuel Kant (Concept of Cosmopolitanism)
- Cosmopolitanism
– Wide variety of views or perspectives (moral, economic,
cultural, and socio-political philosophy) that exists within a
community or in the contemporary world
– Aimed to connect people – “supreme objective”; wanting
to achieve perpetual peace or world order
– Helped the emergence of globalization (widening of
knowledge of more principles and the like)
- Explains the rights of both states and individuals (“citizens of the
earth”)
o Pericles (Democracy leads to Globalization)
- “openness” – exactly the same process
- Political democracy > globalization
- Not just free-trade but also the free movement of people
- “Globalization would not be stable without democracy”
- Enables countries and people from different places to connect
(cultural, social, economical, political)
 -
Karl Marx – Internationalism (1848)
- Practice of nations acting and working together and transcending
nationalism
- Believed in the power of communism.
- In coming together, it should be global rather than local in scope
- In fighting for phenomenon such as communism, the impact would
be greater if we will put down our borders and combat things as a
global nation
o Marshall McLuhan (Global Village)
- Media theorist – “global village”
- Predicted and observed – the world would be integrated because of
an electronic nervous system
- Changed the world’s views on technology (made the world shrink
into one small village by being able to disseminate information in
every part of the globe simultaneously)
- Globalization – developed socially, politically, culturally – rise of
technology and communication (connected the people rapidly)
 MODERN THINKERS
- One common definition of Globalization – process that helps a
nation to advance with the help of technology.
- Globalization – method used by businesses, politicians and other
powerful individuals to improve their country’s economy or income
and to raise their economic standing as it brings about influence and
opportunities to affiliate with other countries who can aid the
nation’s insufficiency in certain areas of resources or capital.
- Technology – huge part in speeding up the process of Globalization,
o Thomas Friedman
- Cold War system
– countries excluding one another in all aspects concerning
them, such as politics, culture, technology, economics, etc
– much more about integration than exclusion
- Globalization brought about a newer international system
- Globalization – challenge of achieving balance between prosperity
(the Lexus) and the traditional (the olive tree)
- Gobalization – outcome of a free-market economy
- Globalization: “farther, faster, cheaper, deeper” (Friedman)
- Ten factors (driving force) for such a phenomenon to happen:
 Greatly contributed to the fast growth of globalization (21st
century)
1. The Soviet empire disintegrating, fall of the Berlin Wall.
2. Netscape browser
3. Machine to machine communication
4. Open-source software
5. Outsourcing
6. Offshoring
7. Supply-chaining
8. Insourcing
9. Informing
10. Proliferation and personalization of of digital, mobile, and
virtual technology

o Gloria Macapagal Arroyo (2018)

 - Expressed her support on globalization and open-trade (but must be
aligned within the context of a country)
- Stressed that every country has a different economic set-up, social
customs, and political background
- ‘Creating a community with a shared future’ without sacrificing the
welfare of other countries for another country’s advancement
- Integration among countries would be of great help in the global
development since it does not only thrive on having diplomatic
relationships, but also paves the way for ‘international economic
and trade cooperation.’
- Globalization can be used as an asset to better a country’s economic
standing and improve the lives of its residents when properly
coordinated with the needs and strengths of the countries involved.
o Steve Jobs (2011)
- Globalization – millions of opportunities to change the world; the
main key for a widespread of new technology.
o Mark Zuckerberg (2017)
- Facebook – one of the primary contributors for speeding up the
process of globalization
- 2 main things:
 Supported the idea of globalization with regards to
connecting people by using online platforms
- Due to the advancement in technology, the world
was optimistic in exploring the uncharted waters of
a ‘borderless’ world
 Since the world was so focused on trying to make digital
globalization happen, the world failed to anticipate the
negative effects of this movement (testing the once
common goal of digital globalization – connecting the world
and its people)
- Finding the perfect balance between amplifying the good effects
globalization, and looking for ways to mitigate the negative effects
can help in avoiding the dissemination of incorrect information
o President Duterte
- The 21st century global economic agenda should help those who
have been left behind by globalization
- While APEC’s role as a driver for innovation and growth is
unquestioned, all its advocacy of free and open trade could come
across as insensitive and even unacceptable to those who watch
from the sidelines because they are unable to get a foot up the
trading ladder
- “Globalization is looked upon with suspicion by those who perceive
it to have failed them. If we are to stop fighting about this, we will
need a new paradigm for discourse in APEC, one which catapults
APEC’s inclusive agenda to the front row. ”
- Balance in economic relationships can help developing economies
scale up the value chain, ultimately helping to achieve quality
growth, by benefiting not only the entire economy by unleashing
the full potential of different sectors but individuals as they achieve
full employment.

 THEORETICAL PARADIGMS ASSOCIATED

1. World Systems Theory (Immanuel Wallerstein)
 - View globalization not as a recent phenomenon (synonymous with capitalism)
- Not at all new process but something that is just continuing and evolving.
- Capitalist world system is divided into three categories:
a. Core - powerful and developed centers (Western Europe, North America
and Japan)
o Periphery - those regions that have been forcibly subordinated to
the core through COLONIZATION (Latin America, Africa, Asia, Middle
East and Eastern Europe)
o Semi – periphery – states and regions that were in the core and are
moving down or those in the periphery and are moving up
2. Global Capitalism Paradigm
- Globalization – novel stage in the evolving system of world capitalism.
- Qualitatively new features that distinguish it from earlier epochs
- New global production and financial system
- Rise of processes that cannot be framed within the nation-state/interstate system
- Sklair: “theory of the global system” at the core of which are transnational practices
(TNPs)
o TCC (transnational capitalist class) – new class that brings together several social
groups – executives of transnational corporations; globalizing bureaucrats,
politicians, professionals and consumerist elites in the media and the
commercial sector.
- Robinson: theory of global capitalism involving three planks: transnational
production, transnational capitalists and transnational state: class relations
3. The Network Society
- Technology and technological change instead of capitalism
- Manuel Castells, The Rise of the Network Society
- New economy:
1. Informational, knowledge based
2. Global, production is organized on a global scale
3. Networked, productivity is generated through global network
- “the networked enterprise makes material the culture of the informational, global
economy: it transforms signals into commodities by processing knowledge”
4. Space, Time and Globalization
- Giddens “time-space distanciation”
- The intensification of worldwide relations which link distant localities in such a way
that local happenings are shaped by events occurring many miles away and vice
versa
- David Harvey – time-space compression (produced by the very dynamics of
capitalist development”
- Sassen’s “The Global City” – proposes a new spatial order is emerging such as
London, New York and Tokyo – sites of specialized services for transnationally
mobile capital that is so central to the global economy
- Robert Robertson “Glocalization” – ideas about home, locality and community have
been extensively spread around the world
- Time and space compression – compression of geographic space by means of faster
transport and communication
5. Transnationalism and Transnationalism
- Transnationalism – an umbrella concept encompassing a wide variety of
transformative processes, practices and developments that take place
simultaneously at a local and global level
- Transnational processes and practices – broadly as the multiple ties and interactions
– economic, political, social and cultural – that link people, communities and
institutions across the borders of nation-states.
 - Transnational links – more intense due to speed and relatively inexpensive character
of travel and communications and their impacts
6. Global Culture Paradigm
- Emphasize the rapid growth of mass media and resultant global cultural flows and
images in recent decades (global village – Marshall McLuhan)
- Focus: globalization and religion, nations and ethnicity, global consumerism, global
communications and the globalization of tourism
- Ritzer’s Mcdonaldization of society (homogenization, Weber’s process of
rationalization)
o Efficiency – optimum method for getting from one point to another
o Calculability – emphasis on the quantitative aspects of products sold
and services offered
o Predictability – assurance that products and services will be the same
over time and in all locales
o Control – nonhuman technology comes to exert control over human
workers and customers
- Efficient, predictable and standardized lines → alienation, waste, low nutritional
value and the risk of health problems

 MISCONCEPTIONS (Scholte)
 AS INTERNALIZATION
- Internationalization – increasing importance of international trade, international
relations, treaties, alliances, etc. Inter-national, of course, means between or among
nations.
- Includes activities by entities such as corporations, states, international
organizations, and even individuals with reference to national borders and national
governments
- Globalization – global economic integration of many formerly national economies
into one global economy, mainly by free trade and free capital mobility, but also by
easy or uncontrolled migration.
- Includes a gamut of human activities that do not require reference to a state’s
national border.
 AS LIBERALIZATION
- Liberalization – removal of barriers and restrictions imposed by national
governments (to create an open and borderless world economy)
- Globalization – realized when national governments “reduce or abolish regulatory
measures like trade barriers, foreign – exchange restrictions, capital controls and
visa requirements” (Scholte)
- Problem with this misconception:
o Confines the study within the debate concerning the neoliberal
macroeconomic policies: pro and anti
o Political implication – neo-liberalism is the only available policy framework
for a truly global world.
o Debate about the pros and cons of laissez faire has been happening for
centuries
 AS UNIVERSALIZATION/WESTERNIZATION
- Universalization – process of spreading various objects, practices and experiences to
the different parts of the planet
- Globalization is when things, values and practices spread to the different parts of
the planet.
- Implication: Homogenization of culture, politics, economy and laws. Destroys
indigenous practices and cultures.
- When Western modernity spreads and destroys – Westernization
 - Issues arising from this misconception:
o Universalization – not a new feature of world history.
o Westernization – not the only path that can be taken by globalization

 MULTIPLE GLOBALIZATION
- Scholars found it simpler to avoid talking about globalization as a whole
- Instead “multiple globalizations” instead of one process
- Arjun Appadurai: Different kinds of globalization occur on multiple and intersecting
dimensions of integration – “SCAPES”
o “ethnoscapes” – global movement of people
o “mediascapes” – flow of culture
o “technoscapes” – circulation of mechanical goods and software
o “financescapes” – global circulation of money
o “ideoscapes” – realm where political ideas move around
- Claudio: distinct windows into the broader phenomenon of globalization

 INTERNATIONAL ECONOMIC INTEGRATION

- New reality in the international business market
- Business and governments have created a range of institutions, treaties, and agreements
that help to:
- Overcome trade differences
- Boost the free movement of trade, investment, and services across national
boundaries
- Concerned with:
- The removal of trade barriers or impediments between at least two participating
nations
- The establishment of cooperation and coordination between them
- Integration creates high levels of globalization and regionalization.
- Free Trade Area - removes trade impediments among member nations. (NAFTA )
- Customs Union - adds common external economic initiatives to all member nations. (Central
American Common market)
- Common Market - allows free trade of products and services and also allows free mobility of
production factors like capital, labor and technology.
- Economic Union - is a common market with unification of all monetary and fiscal policies.
(European Union)
- Political Union - is where participating nations literally become one nation in an economic
and political sense, with common parliament and political institutions.
- The three fundamental institutions affecting global cooperation of nations:
 The World Trade Organization (WTO)
- Institutional foundation of the world trading system
- Multilateral trade organization aimed at int’l trade liberalization
- Relative of the original Int’l Trade Organization
- Successor organization to GATT
- Seeks to establish trade policy rules that help expand trade and improve world living
standards through:
o Administering Trade Agreements.
o Serving As The Forum For Trade Negotiations.
o Settling Trade Disputes.
o Reviewing National Trade Policies.
o Assisting Developing Nations On Trade Policy Issues.
o Cooperating With Other International Organizations
- FUNCTIONS:
o Reduce import duties.
 o Eliminate trade discrimination through most favored nation (treating
everyone equally) and national treatments (where all products are
considered “domestic” once they cross national borders).
o Combat protection and trade barriers
 Dumping – the sale of imported goods either at prices below what a
company charges in home market or below cost
o Provide forums for dealing with trade issues.
o Provide dispute resolution services for members.
- Bilateral and regional customs unions and common markets.
- Lowered tariffs to developing nations without violating antidiscrimination rules.
- Establishment of a Generalized System of Preferences for developing nations.
- Escape clauses, so that new members can protect infant industries.
 The World Bank
- Financial base for cooperation
- Formally known as the International Bank for Reconstruction and Development
- Owned by the governments of 160 nations.
- Capital – provided by subscription; finances its operations primarily through world
capital markets
- Financed by interest payments from borrower nations
- Loans – geared toward advanced developing nations; used for productive purposes
like financing infrastructure, telecommunications, ports and power.
- TIED WITH 3 AFFILIATES:
- Common objective: help raise standards of living in developing nations by
channeling financial resources to them from developed countries
o The International Development Association (IDA)
- Concentrates on productive project in the least developed nations
o The International Finance Corporation (IFC)
- Assists in economic development of maturing countries by investing in
private sector investments
o The Multilateral Investment Guarantee Agency (MIGA)
- Specializes in encouraging equity investment and foreign direct investment
to developing countries by mitigating trade barriers.
 The International Monetary Fund (IMF)
- Financial base for cooperation
- SEEKS TO:
o Promote int’l monetary cooperation and expansion of international trade
o Reduce inequity in member nations’ balances of payments.
o Establish sound monetary practices among member nations through:
 Promoting exchange stability
 Maintaining orderly exchange arrangements
 Helping members avoid serious exchange depreciations
 Placing reserves at the disposal of member nations who are in
financial crisis, subject to safeguards and repayment
- Key institution in the international monetary system
- Helps members defend their currencies against cyclical, seasonal, or random
currency fluctuations.
- Headed by a Board of Governors (composed of representatives of all member
nations)
- Requires all members to cooperate with the Fund (to promote a stable exchange
rate system)
- Largest members: United States, United Kingdom, Japan, Germany, France (and 155
others).
 - ALLOWS:
o Special Drawing Rights (SDRs) – unit of account and allow countries to peg their
currencies against the five largest IMF members.
- Members settle transactions with SDR for exchanges among themselves.
 Other Int’l Economic Organizations
o The Organization for Economic Cooperation and Development (OECD)
- Aids in the achievement of the highest and soundest possible growth in
economies of member countries
- Promotes economic development, employment expansion, living standards
improvement, financial stability, and extension of world trade on a
multilateral and nondiscriminatory basis.
o The United Nations Conference on Trade and Development (UNCTAD)
- A forum for examination of economic problems plaguing developing
countries
- Solves them through negotiations with developed nations that benefit from
trade with them
 Postwar Regional Integration
- FEATURES:
- Centered in western Europe
- Many developing countries renewed their interest in regional integration
since the Uruguay Round began
- The level of economic integration varies widely among agreements
 North America: The North American Free Trade Agreement (NAFTA)
- Created a tri-national (Canada, Mexico, and the United States) market area (more
than 360 million people)
- Combined annual purchasing power
- Dismantles trade barriers for industrial goods, and has agreements on services,
investments, intellectual property rights, and agriculture.
- Side agreements on labor adjustments, environmental protection, import surges,
child labor, minimum wages, productivity, and health and safety standards.
 Europe: The European Union (EU)
- European Economic Community (EEC) > European Community (EC) > EU
- Originally had 15 member states.
- The Maastricht Treaty created the European Common Market
- monetary union, establishment of common foreign and security policy,
common citizenship, and cooperation on justice and social affairs.
- Creates the common European Currency, the ECU, or Euro.
- Gives every citizen in member states a European Passport and free movement from
one country to another within the EU.
- Contains provisions of cooperation in justice and domestic affairs.
- Employs the EU to play a more active role in trans-European transportation and
environmental protection.
- Increases the power of a European Parliament to enact legislation.
- Removes all restrictions on capital movements among member states.
- Establishes a European Central Bank responsible for monetary policy
- Transforms the EU into the European Economic and Monetary Union under which
member currencies are tied to one another at a standard exchange rate.
- FIVE EU INSTITUTIONS:
o The European Parliament (people of member states)
o The Council of the Union (governments of member states)
o The European Commission (an executive body)
o The Court of Justice (interpretation of the Law)
o The Court of Auditors (manages the EU budget)
  Asia Pacific
- APEC (Asia Pacific Economic Cooperation Forum) consists of 18 member nations
- Enhances the progress made in the Uruguay round of GATT.
- Association of Southeast Asian Nations (ASEAN) – 1967; Malaysia, Indonesia,
Philippines, Singapore, and Thailand.
- PURPOSE: promote peace, stability, and economic growth in the region
- It has substantial trade liberalization.
- There are less formal agreements bilaterally and multilaterally in abundance
- Created numerous sub-regional economic trade zones (named transnational export
processing zones, natural economic territories, or growth triangles)
 Latin America
- Early attempts (failed economically & politically): Latin American Free Trade
Association (LAFTA); Central American Common Market (CACM)
- Superceded by the Latin American Integration Association (LAIA) – increase bilateral
trade among member nations
- MERCOSUR – organization to promote trade in South America
 Africa and the Middle East
- The Economic Community of West African States (ECOWAS) - Established in 1975 by
west African states
- Central African Economic and Customs Union (UDEAC) – established in 1966 in
former French Africa
- Preferential Trade Area (PTA) – established 1981 from former members of the East
African Economic Community (formed in British East Africa, dissolved in 1979)
- Gulf Cooperation Council (GCC) – Middle East free trade area established in 1981
 REGIONALIZATION
- Prominent feature in the world economy today
- Compatible with economic growth and globalization (insiders gain more than outsiders)
 Commodity-Level Cooperation Among Nations
- Commodity cartel – a group of producing countries that wish to protect themselves from
the fluctuations in prices of certain commodities traded internationally
- Crude oil, coffee, rubber, cocoa
- Can control prices through production quotas and limiting overall output
 Organization of Petroleum Exporting Countries (OPEC)
- Inter-governmental organization consisting of 13 members.
- Strongest collective force impacting prices in the oil market.
- Control more than 40% of the world’s oil production
 The Multifiber Arrangement (MFA)
- Agreement countries to control exports of textiles and apparel from developing countries to
developed countries
- Covers about two-thirds of textile and apparel traded internationally
 Strategic Responses of MNEs
- Defensive Export Substituting – firms defend market share previously achieved through
exports, by establishing operations within regions.
- Offensive Export Substituting – ensures market penetration through foreign direct
investment before markets are officially integrated.
- Rationalized Foreign Direct Investment – Multinational Enterprises heighten resource
commitment to operations to achieve new economies of scale in the wake of regionalization
ECONOMY
(1) Households
(2) Business firms
(3) Financial Institutions
(4) Government
(5) Foreign Countries
INSTRINSIC VALUES
INSTRINSIC = “no meaning”
Value – subjective; important reason for utility
Bitcoin
(1) Seized it
(2) Reverse it
(3) Censor it
(4) No border
(5) No one can stop it
(6) Commodity itself
Cosmopolitan – citizen of the world
“Polis” - city