Republic of the Philippines

BAC O LO D C I TY C O LLE G E
Teacher Education Department
First Semester /S.Y. 2021-2022
COURSE SYLLABUS
Module 2: Unit I
GLOBAL ECONOMY: International Trading System and Economic Globalization today
(Week 4)
I. Overview
Countries trade with each other due to the lack of resources and cannot satisfy their
own needs and wants. Global economy is the exchange of goods and services integrated into a huge
single Market. It is virtually a world without borders, inhabited by marketing individuals and or
companies who have joined the geographical world with the intent of conducting research and
development and making sales.

II. Objectives At the end of the lesson, the students will be able to:
1. Define economic globalization
2. Identify the actors that facilitate Economic Globalization
3. Define Modern World System
4. Articulate a stance on global economic integration.

III. What is the Global Economy?

The global economy refers to the interconnected worldwide economic activities that take place
between multiple countries. ... This is an economic theory that refers to an economy's ability to
produce goods and services at a lower opportunity cost than its trade partners.
Global economy is also referred to as world economy. This term refers to the international
exchange of goods and services that is expressed in monetary units of money. (Ariola, p. 17)
Global economy or economic globalization is concerned on the globalization of production,
finance, markets, technology, organizational regimes, institutions, corporations and labor. The
interconnections of various components of production, where the stages in production takes place in
different location depends on the favorable conditions such as cheap labor, raw material, skilled labor
and market consumer.

The global economy comprises several characteristics, such as:

 Globalisation: Globalisation describes a process by which national and regional economies,

societies, and cultures have become integrated through the global network of trade,
communication, immigration, and transportation. These developments led to the advent of the
global economy. Due to the global economy and globalisation, domestic economies have
become cohesive, leading to an improvement in their performances.
 International trade: International trade is considered to be an impact of globalisation. It refers
to the exchange of goods and services between different countries, and it has also helped
countries to specialise in products which they have a comparative advantage in. This is an
economic theory that refers to an economy's ability to produce goods and services at a lower
opportunity cost than its trade partners.
  International finance: Money can be transferred at a faster rate between countries compared
to goods, services, and people; making international finance one of the primary features of a
global economy. International finance consists of topics like currency exchange rates and
monetary policy.
 Global investment: This refers to an investment strategy that is not constrained by geographical
boundaries. Global investment mainly takes place via foreign direct investment (FDI).

IV. What are the Types of Global Economy?

 Traditional economic system

 Command economic system
 Market economic system
 Mixed system.
Traditional economic system
A traditional economy is an economic system in which traditions, customs, and beliefs help
shape the goods and services the economy produces, as well as the rule and manner of their
distribution. Countries that use this type of economic system are often rural and farm-based. (Wikipedia)
A traditional economy is a system that relies on customs, history, and time-honored beliefs. Tradition
guides economic decisions such as production and distribution. Societies with traditional economies
depend on agriculture, fishing, hunting, gathering, or some combination of them. They use barter
instead of money. 
Command economic system
It is where a central government makes all economic decisions. Either the government or a
collective owns the land and the means of production. It doesn't rely on the laws of supply and demand
that operate in a market economy. A command economy also ignores the customs that guide a
traditional economy. The command economy is a key feature of any communist society. Cuba, North
Korea, and the former Soviet Union are examples of countries that have command economies, while
China maintained a command economy for decades before transitioning to a mixed economy that
features both communistic and capitalistic elements. (Wikipedia)
Market economic system
A market economy is an economic system in which economic decisions and the pricing of goods
and services are guided by the interactions of a country's individual citizens and businesses. The activity
in a market economy is unplanned; it is not organized by any central authority but is determined by the
supply and demand of goods and services. The United States, England, and Japan are all examples of
market economies. ... China, North Korea, and the former Soviet Union are all examples of command
economies. While a market economy has many advantages, such as fostering innovation, variety, and
individual choice, it also has disadvantages, such as a tendency for an inequitable distribution of wealth,
poorer work conditions, and environmental degradation.
Mixed economic system
It is a system that combines aspects of both capitalism and socialism. A mixed economic system
protects private property and allows a level of economic freedom in the use of capital, but also allows
for governments to interfere in economic activities in order to achieve social aims. The advantages of a
mixed economy include efficient production and allocation of resources, as well as improvement of
social welfare. The disadvantages of mixed system; It can leave the less competitive members of society
without support, The mixed economy doesn't eliminate the possibility of monopolies, A mixed economy
often produces high taxation responsibilities, Organizations have restrictions in their overall size.
V. What is the importance of Global economy?
There are numerous benefits of a global economy, which include: Free trade: Free trade is
an excellent method for countries to exchange goods and services. It also allows countries to specialize
in the production of those goods in which they have a comparative advantage.

VI. Who are the global actors?

1. Multinational Corporation. The multinational corporation is a business organization whose

activities are located in more than two countries and is organizational form defines foreign
direct investment. This form consists of a country location where the firm is incorporated and of
the establishment of branches or subsidiaries in foreign countries.
2. The International Monetary Fund (IMF) - founded at Bretton Woods Conference in 1944, is the
official organization for securing international monetary cooperation.
3. North Atlantic Treaty (NATO) – its headquarter in Brussels, Belgium. The organization was
formed in 1949, out of fear that the Soviet Union would ally militarily with Eastern European
countries i.e., the Warsaw pact, and thus become a threat to Western Europe and the United
States.
4. World Trade Organization (WTO) (together with IMF and World Bank) – the three institutions
that underwrite the basic rules and regulations of economic, monetary, and trade relations
between countries.
5. International Financial Institutions (IFIS) together with World Bank and the European Bank for
Reconstruction and Development (EDB), and IMF. These organizations give loans to
governments for large-scale projects, restructuring and balance of payments on condition that
they make specific changes that IFIs believe will boost economic growth. (Shanquan, 2000)

What are the benefits of global economy?

 Free trade: Free trade is an excellent method for countries to exchange goods and services. It
also allows countries to specialise in the production of those goods in which they have a
comparative advantage.
 Movement of labour: Increased migration of the labour force is advantageous for the recipient
country as well as for the workers. If a country is going through a phase of high unemployment,
workers can look for jobs in other countries. This also helps in reducing geographical inequality.
 Increased economies of scale: The specialisation of goods production in most countries has led
to advantageous economic factors such as lower average costs and lower prices for customers.
 Increased investment: Due to the presence of global economy, it has become easier for
countries to attract short-term and long-term investment. Investments in developing countries
go a long way in improving their economies.

Factors affecting global economy

According to the latest economic news, here are some of the key factors that influence and affect how
well the global economy works:
 Natural resources;
 Infrastructure;
 Population;
 Labour;
  Human capital;
 Technology;
 Law.

V. How does the global economy work?

The functioning of the global economy can be explained through one word —transactions. International
transactions taking place between top economies in the world help in the continuance of the global
economy. These transactions mainly comprise trade taking place between different countries.
International trade includes the exchange of a variety of products between countries. It ranges all the
way from fruits and foods, to natural oil and weapons. Such transactions have a number of benefits
including:

 Providing a foundation for worldwide economic growth, with the international economy set to
grow by 4% in 2019 (source: World Trade Organisation);
 Encouraging competitiveness between countries in various markets;
 Raising productivity and efficiency across countries;
 Helping in the development of underdeveloped countries by allowing them to import capital
goods (machinery and industrial raw materials) and export primary goods (natural resources and
raw materials).

VI. Why is the global economy important?

a. Economic importance at a micro and macro level: The increase in the world’s population has led
to emerging markets growing economically, making them one of the primary engines of world
economic growth. The growth and resilience shown by emerging markets is a good sign for
the world economy. Microeconomics. It refers to the study of the behaviour of households,
individuals, and firms with respect to the allocation of resources and decision-making. In simpler
terms, this branch of economics studies how people make decisions, what factors affect their
decisions, and how these decisions affect the price, demand, and supply of goods in the market.
Therefore, from the perspective of microeconomics, some of the largest firms with high market
value and a few of the richest individuals in the world hail from these emerging markets, which has
helped in the higher distribution of income in these countries. However, many of these emerging
countries are still plagued by poverty, and work still needs to be done to work towards eradicating
it.
b. Long-term world economic outlook: According to financial and economic projections based on
demographic trends and capital productivity models, the GDP in emerging market economies in
2019 are likely to keep increasing at a positive rate. According to an emerging markets economic
forecast for 2019 conducted by Focus Economics, the economy is set to increase by 7.5% in India,
6.6% in Philippines, 6.3% in China, 5.3% in Indonesia, 5.1% in Egypt, 4.9% in Malaysia, 3.8% in Peru
and 3.7% in Morocco.
 Republic of the Philippines
BAC O LO D C I TY C O LLE G E
Teacher Education Department
First Semester /S.Y. 2021-2022
COURSE SYLLABUS
Module 2 : Unit II
The Market Integration
(Week 5)

I. What is Market Integration?

Integration shows the company’s market relationship. The extent of integration of integration
affects the company’s behavior and thus their marketing strategy. A highly integrated market behavior is
different from disintegrated market behavior. Markets differ in the degree of integration, and thus their
degree of efficiency varies. (Lobo,p.21)
Occurs when prices among different locations or related goods follow similar patterns over a
long period of time. Groups of prices often move proportionally to each other and when this relation is
very clear among different markets it is said that the markets are integrated.
It is the fusing of many markets into one. Global Market Integration means that price
differences between countries are eliminated as all markets become one.
The term “integration” refers to a process whereby the quality of relations among
autonomous social units (kinship groups, tribes, cities, trade unions, trade associations, political parties)
changes in such a way as to erode the autonomy of each and make it part of a larger aggregate.
(Encyclopedia.com)
A situation in which separate markets for the same product become one single market,
for example when an import tax in one of the markets is removed: It has long been recognized
that market integration is far more efficient than firm integration.

II. Objectives. At the end of this chapter, students would be able to:

1. Explain the role of international financial institutions in the creation of a global economy.
2. Appreciate the global market integration in the 20 th century.
3. Identify the attributes of global corporations.

III. History of Global Market Integration

Before the rise of today’s modern economy, people only produced for their family. Nowadays,
economy demands the different sectors to work together in order to produce, distribute, and exchange
products and services.

a. The Agricultural Revolution

The first economic change was the Agricultural Revolution, when people learned
how to domesticate plants and animals, they realized that it was much more productive than hunter-
gatherer societies. Farming helped societies build surpluses, meaning, not everyone had to spend their
time producing food. This, in turn, led to major developments like permanent settlements, trade
networks, and population growth. (Aldama, p. 49)

b. The Industrial Revolution (1800)

With the rise of the industry came new economic tools, like steam engines,
manufacturing, and mass production. Factories popped up and change how work functioned. Overall,
productivity went up, standards of living rose, and people had access to a wider variety of goods due to
mass production.
c. Capitalism and Socialism
These were two competing economic models that sprung up during the
Industrial Revolution. Capitalism is a system I which all natural resources and means of production are
privately owned. It emphasizes profit maximization and competition as the main drivers of efficiency. In
a Socialist system, the means of production are under collective ownership. It rejects capitalism’s private
property and hands-off approaches. Karl Marx was the father of Socialism. (Aldama, p. 50) These two
economic models are still in existent even today.

IV. Types of Market Integration

1. Horizontal Integration is a competitive strategy that can create economics of scale,

increase market power over distributors and suppliers, increase product differentiation, and help
businesses expands their market or enter new markets. By merging two companies, they may be able to
generate more revenue than they could have done independently. Horizontal integration is when a
business grows by acquiring a similar company in their industry at the same point of the supply chain.
(Lobo, p.22)
2. Vertical Integration is the merging together of two businesses that are at different
stages of production—for example, a food manufacturer and a chain of supermarkets. Merging in this
way with something further on in the production process (and thus closer to the final consumer) is
known as forward integration. Vertical integration is when a business expands by acquiring another
company that operates before or after them in the supply chain.
3. Backward vertical integration is when a company buys another company that supplies
the products or services needed for production.
4. Forward vertical integration is conducted by a company advancing along the supply
chain. A good example of forward integration would be a farmer who directly sells his crops at a local
grocery store rather than to a distribution center that controls the placement of foodstuffs to various
supermarkets.
5. Conglomerate integration is a fusion of companies involved in completely in completely
unrelated business activities. It is a merger of two firms that have completely unrelated business
activities. Examples of conglomerate integration is Samsung – the electronics giant also makes military
hardware, apartments, ships and Samsung also operates a Korean amusement park!

V. International Financial Institutions

World economies have been brought closer together by globalization. It is reflected in the
phrase “When the American economy sneezes, the rest of the world catches cold.” But it is important
to remember that it is not only the economy of the United States, but also other economies in the world
that have significant impact on the global market and finance. (Aldama, p. 44)
The most prominent IFIs are creations of multiple nations, although some bilateral financial
institutions (created by two countries) exist and are technically IFIs. The best known IFIs were
established after World War II to assist in the reconstruction of Europe and provide mechanisms for
international cooperation in managing the global financial system.
An International Financial Institutions (IFIS) is chartered by more than one country and
therefore are subjects to international law. Its owners or shareholders are generally national
governments, although other international institutions and other organizations occasionally figure as
shareholders. Today’s the world’s largest IFI is the European Investment Bank (1) with balance sheet
size of Euro573 Billion in 2016.
The International Financial Institutions (IFIS) are: 1. International Monetary Fund (IMF);
2. Multilateral Development Banks (MDBs) which include: a) World Bank; b) African Development
Bank; c) Asian Development Bank ; d) Inter-American Development Bank; e) European Bank for
Reconstruction and Development.

Multilateral development bank (MDB)

It is an institution, created by a group of countries, that provides financing and professional
advising for the purpose of development. MDBs have large memberships including
both developed donor countries and developing borrower countries. MDBs finance projects in the form
of long-term loans at market rates, very-long-term loans (also known as credits) below market rates, and
through grants.

VI. What is the objectives of International Financial Institutions?

To reduce global poverty and improve people's living conditions and standards; to support
sustainable economic, social and institutional development; and. to promote regional cooperation and
integration.
IMF provides temporary financial assistance to member countries to help ease balance of payments
adjustment.
MDBs provide financing for development to developing countries through:
 Long term loans (with maturities of up to 20 years)
 Very long-term loans (credits with maturities of 30 to 40 years)

Grant financing by some MDBs for technical assistance advisory service or project preparation.
 Republic of the Philippines
BAC O LO D C I TY C O LLE G E
Teacher Education Department
First Semester /S.Y. 2021-2022
COURSE SYLLABUS
Module 2: Unit III
The Global Interstate System
(Week 5)
I. Overview
With the growing globalization, the governance of global relations goes beyond nation-state
governments. Nation-state governments’ scale and scope are limited in addressing regional and
global issues like, climate change, cybercrime, and global financial crises. The countries need to
interact with one another in order to address these problems whether in politics, trade and even in
communications.

I. Objectives
At the end of the lesson, students will able to;
1. Explain the effects of globalization on governments
2. Identify institutions that govern international relations

III. Definition of terms

1. Global Interstate System is an institutional arrangement of governance that addresses

regional or globalized issues that go beyond the scope of a nation-state. (Chase-Dunn, 1981)
2. Internationalism – puts emphasis on diversity and celebrates multiculturalism, while
globalism focuses more on economic aspect of the exchanges among countries and
society.

It is the whole system of human interactions. The modern world-system is structured

politically as an interstate system – a system of competing and allying states. Political Scientists
commonly call this the international system, and it is the main focus of the field of International
Relations. It is a multi-state political structure and therefore its division of labor is international division
of labor.
Interstate relations are those authoritative actions, understandings, or commitments of
the governmental authorities--the leaders--of one state to or with the governmental authorities of
another state or its groups or citizens, either bilaterally or through international organizations.
It is an organized institution that governs international relations for mutual benefit.
Example the creation of United Nations.

IV. What is Global Interstate?

The modern world-system has a multi-state political structure (the interstate system) and
therefore its division of labor is international division of labor. The division of labor consists of three
zones according to the prevalence of profitable industries or activities: core, semi-periphery, and
periphery. Resources are distributed from the underdeveloped, typically raw materials-exporting, poor
part of the world (the periphery) to developed, industrialized core. (Lobo, p.74)
 Global interstate is also known as International Relations. International relations is
concerned with the relationships between political entities (polities) such as sovereign states, inter-
governmental organizations (IGOs), international non-governmental organizations (INGOs), other non-
governmental organizations (NGOs), and multinational corporations (MNCs), and the wider world-
systems produced by this interaction. International relations is an academic and a public policy field,
and so can be positive and normative, because it analyses and formulates the foreign policy of a given
state. (Wikipedia)

V. What is the purpose of Global interstate System?

To contribute to peace and security by promoting international collaboration through
educational, scientific, and cultural reforms in order to increase universal respect for justice, the rule of
law, and human rights along with fundamental freedom.

VI. What is the interstate system in international relations?

Interstate relations are those authoritative actions, understandings, or commitments of
the governmental authorities--the leaders--of one state to or with the governmental authorities of
another state or its groups or citizens, either bilaterally or through international organizations.

VII. What is Global Governance?

Global governance is about norms and power. It is constituted by ideas, culture and
material forces. It also helps generate norms, ideas and culture. Global governance involves states and
non-state actors, and it affects life from the local to the global levels

VIII. What is the role of Global Governance?

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.

IX. Benefits of the United Nations brought to Globalization

The one who coined the name of the United Nations was the former President of the United
States, President Franklin D. Roosevelt that is now being used in the Declaration of the United Nations.
There were only 26 nations representatives pledge their government to:
a. To use its full resources, military or economic, against those members of the Tripartite
Pact (Germany, Japan and Italy created September 27, 1940 after the beginning of World War 2)
b. To cooperate with the government signatory hereto and not to make a separate
armistice or peace with the enemies.

X. Selected Institutions Associated with World Trade

a. World bank
International Bank Reconstruction and Development (IBRD) is an international financial
institution that offers loan to middle-income countries willing to improve their economy.
b. World Trade Organization
It regulates international trade’s deals with the rule of trade between nations. Ensures
the trade will flow smoothly, predictably and freely as possible. Acts as a forum in negotiation trade
agreements.
XI. Specialized Agencies
a. International Labor Organization It is a United Nations agency dealing with labor
problems, particularly international labor standards, social protection, and work opportunities for all.
b. Food and Agriculture Organization of the United Nations (FAO)
Help eliminate hunger, food insecurity and malnutrition.
c. United Nations Educational, Scientific and Cultural Organization (UNESCO)
Contribute to peace and security by promoting international collaboration through
educational, scientific and cultural reforms to increase universal respect for justice, the rule of law, and
human right along fundamental freedom.
d. World Health Organization Building a better, healthier future for people all over the
world. Make researches in medicines and vaccines to eliminate diseases and development of nutritious
foods. Responsible for World Health Report and Survey.

XII. Weaknesses of Global Interstate System

> Imposed long-term costs on the country.
> Cut down on competition between shippers and passenger carriers.
> Rising consumption of fuel led to air pollution and a dependence on oil that affected
consumers and foreign policy for generations to come.

XIII. What is Trade Agreement?

Trade agreement are when two or more nations agree on terms of trade between them. They
determine the tariffs and duties that the countries impose on imports and exports. All trade agreement
affect international trade.

XIV. Free Trade Agreement Pro and Cons.

Pro Cons
 Increased economic growth > Increased job outsourcing
 Lower government spending > Poor working conditions
 Technology transfer > Degradation of natural resources

XV. Three types of Trade Agreement

a. Unilateral. It occurs when a country imposes trade restrictions and no other country
counters. A country can also unilaterally loosen trade restrictions, but that rarely
happened.
b. Bilateral. Agreement happened between two countries. Both countries agree to loosen
trade restrictions to expand business opportunities between them. They lower tariffs
and confer preferred trade status with each other.
c. Multilateral. It is the most difficult to negotiate. These are among three countries or
more. The greater the number of participants, the more difficult the negotiations are.
 They are also more complex than bilateral agreement. Each country has its own needs
and requests.

XVI. What is an Import and Export mean?

Imports are goods and services produced in a foreign country and bought by domestic
residents. That includes anything shipped into the country even if it’s by the foreign
subsidiary of a domestic firm.
Export are goods and services that are made in a country and sold outside it’s border. That
include anything shipped from a domestic company to its foreign affiliate.
 Republic of the Philippines
BAC O LO D C I TY C O LLE G E
Teacher Education Department
First Semester /S.Y. 2021-2022
COURSE SYLLABUS
Module 3: Unit I
Global Politics and Governance
The Role of United Nations
(Week 6)

I. Contemporary Global Governance

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. ... Global governance is not a singular system.
Global governance encompasses the totality of institutions, policies, norms,
procedures and initiatives through which States and their citizens try to bring more
predictability, stability and order to their responses to transnational challenges.
In a globalized world, the concept of governance is being used to describe the
regulation of interdependent relations in the absence of overarching political authority, such as
in the international system.
Global governance is the management of global processes in the absence of any
form of global movement. However, due to the creation of the United Nations and the World
Trade Organization issues concerning world problem, these two organizations can help in the
system to regulate the increasing problem that the nations in the world can be affected.

II. Objectives: After this lesson, the students should be able to:

1. Understand the concept of global governance.

2. Understand the role of the state amidst globalization.
3. Determine the challenges of global governance in the 21st century.
4. Identify the roles and functions of the United Nations.
III. What is the importance of global governance?
Effective global governance will allow us to end armed conflict, deal with new and
emerging problems such as technological risks and automation, and to achieve levels of
prosperity and progress never before seen. The most important challenge for humanity to
overcome is that of existential risks. It was founded in 1945, in the wake of the Second World
War, as a way to prevent future conflicts on that scale.
Institutions of Global Governance
a. The United Nations
b. The International Criminal Court
c. The World Bank

IV. What is the role of Global governance?

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.

V. What are the examples of Global governance?

Examples include financial market regulation through the Bank for International
Settlements and the guidelines for multinational enterprises set by the Organization for
Economic Cooperation and Development (OECD).

VI. What is the difference between Global governance and Global government?
Governance, broadly, refers to the various ways in which social life is co-ordinated, of
which government is merely one. Global governance refers to the various processes through
which decision-making and co-operation at a global level is facilitated, operating through
multilateral systems of regulation.
VII. The United Nations
The United Nations is an intergovernmental organization that aims to maintain
international peace and security, develop friendly relations among nations, achieve
international cooperation, and be a center for harmonizing the actions of nations. (Wikipedia)
The United Nations is an international organization founded in 1945 after the Second
World War by 51 countries committed to maintaining international peace and security,
developing friendly relations among nations and promoting social progress, better living
standards and human rights.

VIII. What is the main function of the United Nation?

The main function of the United Nations is to preserve international peace and
security. Chapter 6 of the Charter provides for the pacific settlement of disputes, through the
intervention of the Security Council, by means such as negotiation, mediation, arbitration, and
judicial decisions.

IX. How the United Nations started?

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. In 1945, representatives of 50 countries met in San Francisco
at the United Nations Conference on International Organization to draw up the United Nations
Charter. Those delegates deliberated on the basis of proposals worked out by the
representatives of China, the Soviet Union, the United Kingdom and the United States
at Dumbarton Oaks, United States in August-October 1944. The United Nations officially came
into existence on 24 October 1945, when the Charter had been ratified by China, France, the
Soviet Union, the United Kingdom, the United States and by a majority of other
signatories. United Nations Day is celebrated on 24 October each year.

X. Are there permanent Members in United Nations?

The Council is composed of 15 Members: Five permanent
members: China, France, Russian Federation, the United Kingdom, and the United States, and
ten non-permanent members elected for two-year terms by the General Assembly (with end of
term year).
XI. What is the United Nations General Assembly?
The UN General Assembly was established in 1945 under the UN Charter, The General
Assembly occupies a central position as the chief deliberative, policymaking and representative
organ of the United Nations it provides a unique forum for multilateral discussion of the full
spectrum of international issues covered by the Charter.

XII. What are the functions and powers of the UN General Assembly?

According to the Charter of the United Nations, the General Assembly may:
 Consider and make recommendations on the on the general principles of
cooperation for maintaining international peace and security, including
disarmament.
 Discuss any question relating to international peace and security and, except
where a dispute or situation is currently being discussed by the Security Council,
make recommendations on it.
 Discuss, with the same exception, and make recommendations on any question
within the scope of the Chapter or affecting the powers and functions of any
organ of the United nations
 Initiate, studies and make recommendations to promote international political
cooperation, the development and codification of international law, the
realization of human rights and fundamental freedoms, and international
collaboration in the economic, social, humanitarian, cultural, educational and
health field.
 Make recommendations for the peaceful settlement of any situation that might
impair friendly relations among nations.
 Receive and consider reports from the Security Council and other United Nations
organs.
 Consider and approve the United Nations budget and establish the financial
assessments of member states.
  Elect the non-permanent members of the Security Council and the members of
other United Nations councils and organs and, on the recommendation of the
Security Council, appoints the Secretary-General.
XIII. What is the role of the Secretary-General of the United Nations?
The Charter describes the Secretary-General as "chief administrative officer" of the
Organization, who shall act in that capacity and perform "such other functions as are entrusted"
to him or her by the Security Council, General Assembly, Economic and Social Council and
other United Nations organs.

XIV. How to become a member of the United Nations?

Today (2018) almost every fully recognized independent states are member states in
the UN. As outlined in the UN Charter, to become a member of the UN a state must accept
peace and all obligations outlined in the Charter and willing to carry out any action to satisfy
those obligations. The final decision on admission to the UN is carried out by the General
Assembly after recommendation by the Security Council. (Ariola,p. 28)
Assignment:
1. Who is the current Secretary General of the United Nations?
2. How many UN secretary generals have there been?
3. What is the meaning of the Official Emblem or Logo of the United Nations?

Republic of the Philippines

 BAC O LO D C I TY C O LLE G E
Teacher Education Department
First Semester /S.Y. 2021-2022
COURSE SYLLABUS
Module 4: Unit I
World of Regions
(Week 7)

A. Global Divides: North and South

I. Global Divides: The North and the South

The North-South divide is broadly considered a socio-economic and political divide.
Generally, definitions of the Global North include the United States, Canada, Western Europe
as well as Australia and the New Zealand.
The Global-South is made up of African states, Latin America and developing Asian
states including the Middle East. The North is the home to all the members of the G8 and
four of the five permanent members of the United Nations Security Council.
One reason for the division of the North and South is the difference of economic
growth that contributed to the rise of regional populations with opposing values and vision for
the futures of each side of the world. (Lobo, p.103)
The Global North represent the economically developed societies of
Europe, North America, Australia, Israel, South Africa, amongst others, the Global
South represents the economically backward countries of Africa, India, China, Brazil, Mexico
amongst others.

II. Why global divides North and South?

The concept of a gap between the Global North and the Global South in terms of

development and wealth. In the 1980s, the Brandt Line was developed as a way of showing the
how the world was geographically split into relatively richer and poorer nations.
The idea of categorizing countries by their economic and developmental status began
during the Cold War with the classifications of East and West. The Soviet Union and China
represented the East, and the United States and their allies represented the West. The term
'Third World' came into parlance in the second half of the twentieth century. It originated in a
1952 article by Alfred Sauvy entitled "Trois Mondes, Une Planète.

Following the end of the Cold War and the break-up of the Soviet Union, some Second
World countries joined the First World, and others joined the Third World. A new and simpler
classification was needed. Use of the terms "North" and "South" became more widespread.
(Wikipedia)
 III. What is the meaning of global south?
The Global South is an emerging term, used by the World Bank and other
organizations, identifying countries with one side of the underlying global North–South divide,
the other side being the countries of the Global North. ... The overwhelming majority of these
countries are located in or near the tropics.

IV. What issues divided the north and the south?

Cultural, economic, and constitutional differences between the North and the South
eventually resulted in the Civil War. While there were several differences between the North
and the South, the issues related to slavery increasingly divided the nation and led to the
Civil War.

V. How do development gaps become the reasons for global divide?

The gap is generally caused by rich countries being able to exploit the poorer countries as they
have the dominant political power to be able to do so. As a result, the poorer countries suffer from lack
of resources and spiral into poverty cycles which widen the development gap.
The North–South divide (or Global North and Global South) is a socio-
economic and political division of Earth popularized in the late 20th century and early 21st
century.
Generally, definitions of the Global North is not exclusively a geographical term, and it
includes Australia, Canada, most Western European countries, Israel, Japan, New
Zealand, Singapore, South Korea, Taiwan (ROC) and the United States.
The Global South is made up of Africa, Latin America and the Caribbean, Pacific
Islands, and the developing countries in Asia, including the Middle East. It is home to the BRIC
countries (excluding Russia): Brazil, India and China, which, along with Indonesia and Mexico,
are the largest Southern states in terms of land area and population.
The North is mostly correlated with the Western world (previously called "First
World"), plus much of the "Second World", while the South largely corresponds with the
developing countries (previously called "Third World") and Eastern world.
VI. What is the difference between global south and the third world?
Many times there is a clear distinction between First and Third Worlds. ... People refer
to the two as "Third World/South" and "First World/North" because the Global North is more
affluent and developed, whereas the Global South is less developed and often poorer.
What are the effects of globalization on the third world countries?
Due to increased trade and travel, many diseases like HIV/ADIS, Swine Flu, Bird Flu and
many plant diseases, are facilitated across borders, from developed nations to
the developing ones. This influences badly to the living standards and life expectancy
these countries.

VII. Global South versus Third World

 The “First World” encompassed all industrialized, democratic countries, which were
assumed to be allied with the United States in its struggle against Soviet Union. Finland and
Switzerland maintained strict neutrality. The “Second World” was anchored on the
industrialized, communist realm of the Soviet Union and its eastern European satellites. The
“Third World” was defined simultaneously as the non-aligned world and as the global realm of
poverty and under-developed, poor Soviet allies – Mongolia, Cuba, North Korea and North
Vietnam – were thus counted as Third World in economic terms and as Second World in
political terms.

Assignment:
1. Give at least 10 countries included in Global North.
2. Is China belongs to Global North or South?
3. How do you understand the Global-South?

B. Asian Regionalism and the ASEAN Integration

Regionalism is the process of dividing an area into smaller segments called regions.
Example, the division of nation into states or provinces. Globalization is the process of
international integration arising from the interchange of world views, products, ideas, and
other aspects, such as technology, etc.
I. What is regionalism in globalization?
In international relations, regionalism is the expression of a common sense of identity
and purpose combined with the creation and implementation of institutions that express a
particular identity and shape collective action within a geographical region. ... The European
Union can be classified as a result of regionalism.

II. Is regionalism a threat to globalization?

Regionalism hardly challenges Globalization and it really only builds on the effects
of Globalization. ... Thus in this way, Regionalism does not challenge Globalization, but rather
“regional cooperation is certainly a good preparation for an open international economy”.
(Wikipedia)

III. Regionalism versus Globalization

As to nature, globalization promotes the integration of economics across state borders all
around the world, but regionalization is precisely the opposite because it is dividing an area into
smaller segments.
As to market, globalization allows many companies to trade on international level so it
allows free market but in regionalized system, monopolies are likely develop.
As to cultural and societal relations, globalization accelerate to multiculturalism by free
and inexpensive movement of people but regionalization does not support this.
As to aid, globalized international community is also more willing to come to the aid of a
country stricken by a natural disaster but, a regionalized system does not get involved in the
affairs of other areas.
 As to technological advances, globalization has driven great advances in technology but
advanced technology is rarely available in one country or region. (Ariola, p. 44)

C. The Global Stratification

I. Global Stratification is the categories of a different hierarchical arrangement of individuals and groups
in the societies around the globe. There are two dimensions of stratification: gaps between nations
and gaps within the nation.
Global Stratification determined social inequality concerning the distribution of all available resources
among individuals and groups based on their position in the social hierarchy.
Global Social Stratification refers to people in countries around the world experience different access to
resources and opportunities and different standards of living, based on their position in the
worldwide hierarchy.
In the Philippines, three social classes can be seen in the community:
a. The Upper class has high income, inherited wealth and economic influence.
b. The Middle class are the small businessmen, teachers, merchants, traders with modest income.
c. The Lower class has earning low incomes with a little or no savings; some are unemployed.

II. Theories of Global Stratification

Stratification is an institutionalized pattern of inequality in which social category are ranked on
the basis of their access to scarce resources.
The hierarchical arrangement of individuals and groups in societies around the world.
Modernization Theory: Argues that poor nations remain poor because they hold onto traditional
attitudes, beliefs, technologies, and institutions.
a. Modernization Theory. This theory frames global stratification as a function of
technological and cultural differences between nations (Example Western Europe and some
African states). Modernization theory rests on the idea that wealth could be attained by
anyone.
b. Dependency Theory (Latin American experience). Dependency is the condition in which the
development of the nation-state of the south contributed to a decline in their independence
and to an increase in economic development of the countries of the north.

III. What is the primary cause of global stratification?

The view that global stratification results from a failure of poor nations to have the beliefs,
values, and practices necessary for industrialization and rapid economic growth. The view that global
stratification results from colonialization and exploitation of the poorest nations by the richest ones.

IV. What are the factors of global stratification?

Factors used to measure a country's development can include: per capita income, level
of industrialization, extent of infrastructure, life expectancy, literacy rate, and general standard of
living.
V. How is global stratification different from social stratification?
Global stratification: a comparison of wealth, economic stability, status and power of the
country as a whole. social stratification: a socioeconomic system that divides society's members into
categories ranking from high to low, based on things like wealth, power and prestige.
Social stratification is typically defined in terms of three social classes: the upper class,
the middle class, and the lower class; in turn, each class can be subdivided into the upper-stratum, the
middle-stratum, and the lower stratum. [4] Moreover, a social stratum can be formed upon the bases
of kinship, clan, tribe, or caste, or all four.