THE CONTEMPORARY WORLD
1st Year, Term 1
PRIMER ON ECONOMICS: BASIC ○ Peripheral countries generally
ECONOMIC CONCEPTS provide labor and materials to core
countries.
○ Core countries extract raw materials
Economies
with little cost. They can also set the
prices for the agricultural products
GLOBALIZATION that peripheral countries export
regardless of market prices, forcing
● OECD (2021): “…an increasing small farmers to abandon their fields
internalization of markets, means of because they can’t afford to pay for
production…this gives rise to increased labor and fertilizer.
mobility of capital, faster propagation of ○ The wealthy in peripheral countries
technological innovations and an increasing benefit from the labor of poor
interdependency and uniformity of national workers and from their own
markets.” economic relations with core country
capitalists.
● Borderless and Interconnected World
● World-Systems (globalized world) > World-
IMMANUEL WALLERTEIN’S WORLD Economy
SYSTEM THEORY
● Capitalist/ Free Market
● World System Theory - posits that there is ○ An economy is capitalist if private
a world economic system in which some businesses own and control the
countries benefit while others are exploited. factors of production.
● According to Wallerstein, the world ○ A capitalist economy is a free market
economic system is divided into a hierarchy. capitalist economy if the law of
supply and demand regulates
● Core countries - describe dominant production, labor, and the
capitalist countries which exploit the marketplace with minimal or no
peripheral state for labor and raw materials. interference from government.
○ Core States are plunderers
How Globalized World affect the Philippines?
● Peripheral countries - are dependent on
core countries for capital and have ● The issue about Jeepney Modernation; the
underdeveloped industry. government want to modernize the jeepney
because it is Euro-4 compliant (diesel).
○ FYI: Core countries own most of the ● The ideal standard is Euro-5 to Euro-6
world’s capital and technology and (diesel).
have great control over world trade ● Our jeepney drivers are sold outdated auto
and economic agreements. parts.
, THE CONTEMPORARY WORLD
1st Year, Term 1
● Euro-5 and Euro-6 are sold to rich ● 4th Wave
countries. ○ Features of Globalization 4.0:
● Euro-4 are leftovers. 1. Economic Restructuring
● Globalization in theory is a good thing 2. Worsening Inequality
however in real life “Dog Eat Dog World”. 3. Threats to provision of Global
● If the world would be a food chain, if you are Goods
an apex predator you have an advantage 4. Weak Social Cohesion and
and the ones at the bottom would just get Trust
scraps. 1. Economic Restructing
● Servification of Production
● Wallerstein is not agreed in globalization ○ Machines are there, and people to
because it does not happen in real life. It operate these are what firms need
has a great divide.
● Global Value Chains
EXAMPLE ○ From conception to production(from
● The Brand Coach is an American brand. exports to imports)
America is a Core State. ○ Dependent on exports
● The Philippines is a peripheral state. It has ○ Example: The shortage of MCDO
cheap labor that America exploits. fries, there is a shortage in America,
● After manufacturing the Coach bags, the therefore there are no large fries in
Philippines sends these back to America. the Philippines.
● Coach sells the bags at an expensive price
even in the Philippines. ● Use of AI and Digital Technology
○ Quicker production for firms
THE RISE OF GLOBALIZATION: ○ e-commerce(transactions online)
HISTORICAL EVENTS THAT GAVE RISE
2. Worsening Inequality
TO GLOBALIZATION
● Labor Market Flexibility
○ In a free market, labor is deregulated
The FOUR Waves of Globalization (Vanham, ○ ENDO is still prevalent in the
2019) Philippines labor market.
■ It is an employment practice
● 1st Wave: 19th Cen to WW1 that consists in hiring
○ Creation of steamships and railways workers on fixed-term
○ Transportation-enabled trade contracts, usually short-term,
● 2nd Wave: Post War Recovery that end before six months
○ Cold War starts have elapsed, hence the
○ Focus on rebuilding efforts term “endo” or end of
● 3rd Wave: Post-Cold War contract.
○ World Trade Org (WTO) created
○ “The Great Escape”- inequality ● Rise of New Technologies
1st Year, Term 1
PRIMER ON ECONOMICS: BASIC ○ Peripheral countries generally
ECONOMIC CONCEPTS provide labor and materials to core
countries.
○ Core countries extract raw materials
Economies
with little cost. They can also set the
prices for the agricultural products
GLOBALIZATION that peripheral countries export
regardless of market prices, forcing
● OECD (2021): “…an increasing small farmers to abandon their fields
internalization of markets, means of because they can’t afford to pay for
production…this gives rise to increased labor and fertilizer.
mobility of capital, faster propagation of ○ The wealthy in peripheral countries
technological innovations and an increasing benefit from the labor of poor
interdependency and uniformity of national workers and from their own
markets.” economic relations with core country
capitalists.
● Borderless and Interconnected World
● World-Systems (globalized world) > World-
IMMANUEL WALLERTEIN’S WORLD Economy
SYSTEM THEORY
● Capitalist/ Free Market
● World System Theory - posits that there is ○ An economy is capitalist if private
a world economic system in which some businesses own and control the
countries benefit while others are exploited. factors of production.
● According to Wallerstein, the world ○ A capitalist economy is a free market
economic system is divided into a hierarchy. capitalist economy if the law of
supply and demand regulates
● Core countries - describe dominant production, labor, and the
capitalist countries which exploit the marketplace with minimal or no
peripheral state for labor and raw materials. interference from government.
○ Core States are plunderers
How Globalized World affect the Philippines?
● Peripheral countries - are dependent on
core countries for capital and have ● The issue about Jeepney Modernation; the
underdeveloped industry. government want to modernize the jeepney
because it is Euro-4 compliant (diesel).
○ FYI: Core countries own most of the ● The ideal standard is Euro-5 to Euro-6
world’s capital and technology and (diesel).
have great control over world trade ● Our jeepney drivers are sold outdated auto
and economic agreements. parts.
, THE CONTEMPORARY WORLD
1st Year, Term 1
● Euro-5 and Euro-6 are sold to rich ● 4th Wave
countries. ○ Features of Globalization 4.0:
● Euro-4 are leftovers. 1. Economic Restructuring
● Globalization in theory is a good thing 2. Worsening Inequality
however in real life “Dog Eat Dog World”. 3. Threats to provision of Global
● If the world would be a food chain, if you are Goods
an apex predator you have an advantage 4. Weak Social Cohesion and
and the ones at the bottom would just get Trust
scraps. 1. Economic Restructing
● Servification of Production
● Wallerstein is not agreed in globalization ○ Machines are there, and people to
because it does not happen in real life. It operate these are what firms need
has a great divide.
● Global Value Chains
EXAMPLE ○ From conception to production(from
● The Brand Coach is an American brand. exports to imports)
America is a Core State. ○ Dependent on exports
● The Philippines is a peripheral state. It has ○ Example: The shortage of MCDO
cheap labor that America exploits. fries, there is a shortage in America,
● After manufacturing the Coach bags, the therefore there are no large fries in
Philippines sends these back to America. the Philippines.
● Coach sells the bags at an expensive price
even in the Philippines. ● Use of AI and Digital Technology
○ Quicker production for firms
THE RISE OF GLOBALIZATION: ○ e-commerce(transactions online)
HISTORICAL EVENTS THAT GAVE RISE
2. Worsening Inequality
TO GLOBALIZATION
● Labor Market Flexibility
○ In a free market, labor is deregulated
The FOUR Waves of Globalization (Vanham, ○ ENDO is still prevalent in the
2019) Philippines labor market.
■ It is an employment practice
● 1st Wave: 19th Cen to WW1 that consists in hiring
○ Creation of steamships and railways workers on fixed-term
○ Transportation-enabled trade contracts, usually short-term,
● 2nd Wave: Post War Recovery that end before six months
○ Cold War starts have elapsed, hence the
○ Focus on rebuilding efforts term “endo” or end of
● 3rd Wave: Post-Cold War contract.
○ World Trade Org (WTO) created
○ “The Great Escape”- inequality ● Rise of New Technologies
