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I. SCHOOL : Colegio de San Juan de Letran-Calamba

II. NAME OF PARTICIPANT : Jonnel A. Bediones

III. SUBJECT : Social Studies

IV. YEAR LEVEL : Second Year

V. TOPIC/TITLE : Globalization



1. Explain the concepts, characteristics and ideas as well as its impact to the
economy of the sovereign states worldwide.

2. Listen critically and purposively on the important social issues, that has a direct link
to the economic context of globalizing trends.

3. Construct a concrete realization and awareness on the challenge of this evolving

economic system.


a. Reference book
b. Computer and its accessories for E-Learning


a. Canindin. et al, Buhay na Asya : 2007

b. Internet
c. Philippine Daily Inquirer (Nov. 21, 2005)


Globalizing trend are the emerging scenarios and situations, coupled and
accompanied by integration of economy, culture, and technology.

The subject matter are relevant and pertinent to tackle. Because economic turmoil that
beset to the entire economy worldwide are primarily associated with globalization.

In discussing the matter, utilized concept mapping and analysis by employing Socratic
method or dense questioning, to allows learner impart their ideas in the course of discussion
and inquiry.


Directions : Looked for the appropriate word that matches to the given hint. Choices are as

Globalization International Governmental Organization Cyber

Agriculture Free Trade Exports Competition Recession
HINT : The aim or objective in the globalizing trend.


HINT : It is an increasing global connectivity and integration of economy, culture and



HINT : Economic situations that led to cessation of economic activity and involved total

HINT : Backbone of the Philippine Economy that is primarily affected by the policy on global

HINT : Policy among nation states that allows free market economy in the domestic market


HINT : Industries that provide highest counterparts in the Gross Domestic Products.


HINT : Jobs generated in a Business Process Outsourcing.


HINT : Classification of an organization whose membership are limited to sovereign states.



A. Directions : Arrange the jumbled letters, based on its concepts and definition

1. G N O V E I S E R T Y :

Refer to the independence of a nation states that is at risks due to treaties.

2. T O A I U L B :

Financial assistance, given by the government to saved firm from possible bankruptcy.

3. N I N O L I F T A :

Is a rise in the general level of prices goods and services.

4. U S N E I S B S – C P S O R S E – G O T U R S C N I U O

Emerging industries that is technologically based.

5. A F T I R F :
Tax imposed on the imported products.
B. Comprehensions : Expound the following statements

1. “Globalization are not necessary to the impoverished countries”

2. “ Free Trade Agreement is an impediment to the development of Third World Countries”

C. Surveys

Directions : Allows the learner to conduct a survey in the form of checklist.

Question :

Is global financial crisis, can led to economic recession of all the economies worldwide?




INTRODUCTION : Historical Precedent

When we talked of a global trend. What is the first thing that came to your mind? What
are the historical precedent that give rise to this trend.

Global trend is not new in its etymology. These concepts were already developed and
applied even by our ancenstors, way back in the Neolithic Periodotherwise known as New
Stone Age ( 7000 – 3000 B.C.E). It started as a usual tribe relationships and aggreement
among themselves. So theres already a binding and a policy, which are primodial in present
trade undertakings.




As time goes by in the Mongolian Empire, they initiated great integration of trade.
During the 16th – 17th century, it expanded in Europe. These are evident through the
occupation and colonization of different European countries namely Spain, Portugal, France,
England, and Germany. Their main objective is to acquire territory but trade relation are
enforced to the different colony. The most concrete, is the very famous Galleon Trade of
Spain in its colony like the Philippines. At that time Philippine product are being transported
and exported to Spain through the Galleon Trade.

In the latter half of the 17th century, these trend became a business phenomena in The

In the 19th century, a period of Liberalization. That was considered as the First Era of
Globalization. As manifested by rapid growth of international trade and investments. However
such undertakings collapsed because of inequality among nation-states regarding trade,
capital, and labor.

At the end of World War II, series of trade negotiations, that led to crafting and
instituting of International Governmental Organization like General Agreement on Tariff and
Trade, which was later replaced by World Trade Organization , with objectives of mediations
of trade disputes and set up uniform platform of trade.

After the globalization was coined, in the latter half of 20th century, by Theodore Levitt,
who provided perspective in economic context. Today many states suffered on the effects of
globalization, which is a sector based in nature.

Globalization seems new policy to some economy in the world. Well in fact it’s not
because its more than a century in the making.

What is globalization? How theses scenario characterized as global relation? And what
are the prevailing circumstances that are evident to this relationship? Again how its affects
the worldwide economy.

Globalization is an increasing global connectivity and integration of economy, culture

and technology. Global connectivity means linking of economic principles and systems of
economy from nations states. Whereas integration it is a unification and fusion of economic
policies, trade relations and economic undertakings pertaining to economy per se. In other
words it is a collated principles and fundamentals form as system of commerce. For instance,
dollar is the international currency as used in determining exchange rate, exports, and
interest rate on the loan agreement of a sovereign states to the different financial institutions
like World Bank, and International Monetary Fund.

Going back to the details of the concepts of globalization, the International Monetary
Fund laid down another definition. Globalization meant as a growing economic
interdependence of countries worldwide through increasing trade of products and services,
free international capital flow and more rapid and widespread diffusion of technology. To
understand fully, note the important phrase on the definition. Economic interdependence it
means that economy of certain countries, relied to emerging economic principle and
phenomenon. In short each countries depend from among themselves, in relating trade of
products and services. On the other hand International capital flow, applies to foreign
investments, which says that any form of investments shall be freely and without restrictions.

The premise of the definitions are vague and broad, so to speak. But to help the
learner on quick understanding the concepts, it is indispensable to take the characteristics.

Tracing back globalization became highly organized at the end of World War II, which
was characterize by
a. Greater International movement of commodities, money, information and people
b. Development of technology, organization, legal system and infrastructure to allow this

The first characteristics, introduced the concepts of Free Trade, a policy which most
countries specifically the Third world countries, are being feared of.


Free trade is a trade relations between different states, free from restrictions or
burdens such as tariffs. It implies free market economy, where goods and products of a
particular states entered to another country free from all government taxes, that the receiving
states may enforced. These policy on trade, may kill the local industries of the states. Most
particularly the Small and Medium Enterprises (SME’s), a business enterprise whose capital
does not exceed Three Million Pesos (Php 3,000,000) in the Philippine business setting.

Like for instance countries who depend on the agriculture as a backbone of their
economy, such as Philippines are primarily affected, because domestic market cannot equally
compete on the imported products, which is cheaper compare to locally produced.

Local Filipino producers, especially farmers cannot go directly go further on the

competition in terms of productions. Like rice and vegetable for instance. Why is it ? Perhaps
on the underlying circumstances on the price of farm inputs and absence of sufficient
government subsidy and assistances.
Farm inputs include all chemicals like pesticides, insecticides, fungicides, herbicides
and synthetic fertilizers. Seed varieties are considered as farm inputs.

Nowadays rice and vegetable variety are highly dependent on synthetic chemicals.

Knowing the necessities for farm inputs . It is necessary for the government to promote
and extend agricultural subsidy.

Taking again Philippine agriculture, agencies of the government appropriate funds,

amounting to Php 728 Million for fertilizers and pesticides. However such fund are not
properly utilized for that purpose, instead it is allegedly used as campaign fund of President
Gloria Macapagal Arroyo during 2004 Presidential elections.

Rice productions of Vietnam, considered at the frontline in terms of productions, and

yields in the world. That is the reason of being self sufficient and can sustain exports.

In contrast the Philippines rice productions are too far from some Asian countries when
it comes to self sufficiency. Considering that the Philippines has a lot of areas for greater
productions, consisting of Province of Isabela, Bulacan and Nueva Ecija and other region
province within region 3 and vast hectares of idle land in some parts of the Philippines.

Policy on Free Trade are dictated by International Governmental Organization, refer to

as an association whose memberships are limited only to a recognized sovereign states by
international community.

The mandated organization that implement this policy, is the World Trade
Organization, designed to supervised and liberalized international trade. The WTO came into
being on January 01, 1995.

The World Trade Organization deals with the rules of trade between nations at a near-
global level; it is responsible for negotiating and implementing new trade agreements, and is
in charge of policing member countries' adherence to all the WTO agreements, signed by the
majority of the world's trading nations and ratified in their parliaments.

The WTO has 153 members, which represents more than 95% of total world trade.
The WTO is governed by a Ministerial Conference, which meets every two years; a General
Council, which implements the conference's policy decisions and is responsible for day-to-
day administration; and a director-general, who is appointed by the Ministerial Conference.
The WTO's headquarters is in Geneva, Switzerland

ICT : Information and Communication Technology

Present economic trends, are coupled with rapid and widespread diffusion of
technology. Such premise are necessary in carrying out the holistic application f globalization.
To enable hasten the undertakings in trade and commerce. This objectives purported the
requirements of second characteristics specially its aspects in technological breakthroughs.

Information and Communication Technology are the prevailing framework, that allows
movement of globalizing trends. It involve of promoting organization, like World Trade
Organization, Asia Pacific Economic Cooperation, Association of Southeast Asia Nations, and
other international governmental organization. And establishing legal system and
infrastructure, to fast track the undertakings in commerce.
Legal System lies in the observance of uniform interpretation and application of laws
with respect to trade, human rights, transnational crimes, and terrorism. Another through
executive agreement, and international treaties.

Infrastructures includes public works, and commercial centers consisting of shopping

malls, condominiums and other skyscrapers. These infra projects promote development of a
region and sovereign states.


ICT are manifested through Business Process Outsourcing or Call Center Industry as
others may call it. The labor force that are generated in this endeavors are commonly called
as Cyber Services. It is a workforce that deals through the used of wireless technology
otherwise known as Wireless Fidelity (WiFi), and employ using the broadband, internet, and

Cyber Services are the most emerging business undertakings in the world. At present
India is the number one in this industry. Recently Philippines.


Globalization has an integrated policy, that most countries particularly the

impoverished one are not given equal opportunity for competition.

Third World Countries, feared and threatened by Free Trade Agreement. Because of
its sector based impact on agriculture and trade relations.

The proliferation of Free Market Economy, a lot of industries and enterprises went on
bankruptcy and insolvency. This industries are part of the so called SME’s.

Now we are on Global Financial Crisis, which all economies worldwide are primarily
affected. It perhaps of bankruptcy and insolvency of major financial institution, namely
Lehman Brothers and American Investments Group. Both a US based firm with different
branches worldwide, went on recession because of fiscal challenges.

Recession is an economic situation that led to cessation of economic activities due to

the pressure and challenges of insolvency of any business firm and economy as a whole.

This instances in the Worldwide Economy, may led to the total collapsed of the
economy of all countries worldwide.

Today many International Governmental Organizations, address the issues on Global

Economic turmoil, to mitigate its impact on the economy of each states. Countries like United
States, appropriate a bailout package. It is a form of financial aid and assistance of the
government against bankrupt and insolvent firm that undergoes corporate rehabilitation.
Other call it as an standby fund available to all firm, who seeks support coming from the
government, to rescue a particular firm from possible collapsed and insolvency.


Free Market Economy, is a trade undertakings which domestic market of a sovereign

states are opened to all foreign investments, that may cause impartial and unfair trade
This form of market are manifested the different features, that are evident to this
relation to allow movements of liberalized trade.
1. Rapid international movement of capital including direct investments

Foreign capital or investments, entered into by a sovereign states, shall without any
restrictions and limitation. In short domestic market are open to all direct foreign investments.

2. Development of global telecommunications such as internet, communications satellites

and telephone.

These refer to any technological breakthroughs that aims to hasten any undertaking in
economy, information and communication.

3. Greater international cultural exchange.

In cultural exchange, there prevalent scenario of spreading multiculturalism and

cultural diversity. Like for instances, foreign film, motion pictures and telenovelas, are already
part of a daily habit for entertainment, leisure and pastime. It is the reason behind culture
nowadays are no longer unique in its context.

4. Greater immigration including illegal

Strengthening immigration laws are the major agenda of different countries worldwide.
However foreign nationals can enter to any country even without complete papers of
immigration. Perhaps on some reasons like on the case of Filipinos who are illegal immigrant
of Sabah Malaysia. It happened because of backdoor of Philippine channel, the province of
Tawi-Tawi, Philippines. Another nationals of India and Korea, settle to the Philippines and
conduct its business. Sometimes are over stay or illegal immigrant.

5. Greater international travel and tourism

The Philippine tourism, are being strengthened by way of creating a scheme that are
usually in package, to attract tourists both local and foreign. These scheme, promote medical
tourism and a campaign like WOW Philippines, 7,107 Islands Beyond the Usual, that features
different festivals and best sceneries of the Philippines.

On the other hand travel policy of the united Arab Emirates, known for its open city like
Dubai wherein nationals of different countries are free to roam and go on their pastime and
leisure habit.

6. Increase in number of role of international organization like WTO and IMF.

This International Governmental Organization, like WTO and IMF can dictate
economic policies and restrictions on trade, which not all nation are on the same footing.
A concrete concepts of Free Trade Agreement, is one of the objective of World Trade
Organization. Impoverished countries cannot compete fair and squarely.

Whereas International Monetary Fund, has a key role in providing financial assistance,
through loan agreement with compounded interest, against those war torned countries, and
suffer economic instability.

7. Increase in the number of standards applied globally such as copyright and patent.

Copyright is a form of intellectual property which gives the creator of an original work
exclusive rights for a certain time period in relation to that work, including its publication,
distribution and adaptation; after which time the work is said to enter the public domain.
Copyright applies to any expressible form of an idea or information that is substantive and
discrete. Some jurisdictions also recognize "moral rights" of the creator of a work, such as the
right to be credited for the work.
A patent is a set of exclusive rights granted by a state to an inventor or his assignee
for a fixed period of time in exchange for a disclosure of an invention.

Imposition of standards, as laid down by International Standard Organization,

Intellectual Property Organization, and other parallel organization like for instance in the
Philippines, the Department of Trade and Industry, Bureau of Product Standards.

These organization gives the assurances to the quality of products, services,

breakthroughs, advancements, facilities and any undertaking which require customer

8. Emergence of threats such as problem on energy, crime, terrorism and water and food.

International threats with the help of different international governmental organization

and as well as countries, address the issues on terrorism, security, global warming,
starvation, famine, health and sanitation.

9. Proliferation of transnational crime.

Transnational crime refers to crime that takes place across national borders. It is also
a crimes usually happened beyond the frontiers or boundaries and territorial limits of nation
states. For instance crimes committed in the high seas or above aerial space, piracy and
hijacking respectively.

10. Sovereignty of a nation states is at risks

Sovereignty is the exclusive right to control a government, a country, a people, or

oneself. In short it refers to our independence as a sovereign states. It usually at risks
because of many international treaties and executive agreement entered into by the

In the Philippines Visiting Forces Agreement considered controversial during RP-US

Counter Terrorism Exercise 2004. One of the contingent Lance Corporal Daniel Smith, a US
Navy who are prosecuted and eventually convicted for the crime of rape against Filipino
woman last November 01, 2005 at Subic Bay Freeport. Even convicted Philippine
government cannot take custody in serving and completing his sentence of reclusion
perpetua as Judge Benjamin Pozon of Makati Regional Trial Court handed the verdict last
December 04, 2004.

Instead US Embassy has the custody, which at present unknown the whereabouts of

11. Utilization of common currency in international market.

International currency is US Dollar, a common currency in undertaking trade, business

and commerce in international transactions.

Globalization aim for competition, by employing Free Trade otherwise known as Free
Market Economy, as core goal of World Trade Organization. In such framework the
impoverished countries are the most affected, which is a sector based in nature.

Sector based refers to one part of holistic aspects of economy and its foundations, and

The challenge to all states, both the rich and impoverished, as well as all International
governmental organization. To be responsible and be accountable to the policies they
initiated and latter applied as a norms or principles in economy, culture and technology, to at
least minimize the impacts to the very foundation of the society.