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SUGGESTED TIME ALLOTMENT: 6 Hours
LEARNING OBJECTIVES
Chapter 3 | Market Globalism and Integration
At the end of this lesson, you should be able to:
1. define the concept of market globalism and global
corporations;
2. explain the five core claims of market globalism; and
3. recognize the challenges of market globalism and integration.
“The role of globalization is to homogenize all cultures, and to turn them into commodified
markets, and therefore, to make them easier for global corporations to control. Global
corporations are even now trying to commodify all remaining aspects of national cultures,
not to mention indigenous cultures.” – Jerry Mander
LEARNING ACTIVITY 1
Identify the following brand of products or companies you recognize in
various media outlets. Write your answer legibly inside the box.
Manfred Steger (2009) as cited in Fernandez et al. (2018) has stressed that
globalization could be summarized into five core claims:
1. Globalization is about the liberalization and global integration of
markets.
The first core claim of globalization’s essence is that it simply
espouses the idea of the inevitability of the spread of the ideals
of free trade and free enterprise to as many states and nations
across the globe (Fernandez et al., 2018).
However, one of its sad effects is that it paved the way to many
governments’ “hands off” attitude towards the interest of large
transnational and multi-national corporation (Steger, Battersby,
& Siracusa, 2014).
During the late Gina Lopez’ stint as DENR secretary, she made
a stir by requiring mining companies – many of them
transnational corporations– to strictly follow Philippine laws with
regards the environment (Fernandez et al., 2018).
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 furters
the spread of
democracy in the
world.
B. THE FIVE CORE CLAIMS OF MARKET GLOBALISM
Five Core Claims of Market Globalism
This got her the ire of the mining companies, which later, as
many have suspected, lobbied for the non-confirmation of her
appointment as the environment secretary of the Philippines
(Fernandez et al., 2018).
2. Globalization is inevitable and irreversible.
For the market-globalist perspective, the coming of globalization
would be an absolute certainty. In fact, once it happens, there is
no turning back since globalization is inevitable and irreversible
(Fernandez et al., 2018).
As a process, globalization did not happen overnight. It is a
product of the ever increasing innovativeness of human spirit.
The advancement of science and technology facilitated
globalization’s encroachment to many aspects of people’s lives
whether collectively or individually since the products of
globalization are, more often than not, employed as means to
address problems that have confronted humanity as a whole
(Steger, 2009).
3. Nobody is in charge of globalization.
The claim is based on the classical concept of “self-regulating”
market (Steger, Battersby, & Siracusa, 2014). Globalists would
just accomplish the oughts and the aspect of what must be done
as dictated by the waves of the process of globalization
(Fernandez et al., 2018).
“This is the only country in the world that
gives tax holidays to large mining
companies for seven years. Our
government allows them to exploit our
water for free. When we drink, we pay for
our water. But those mining companies are
freely using our water.” Regina Paz “Gina” Lopez
Former DENR Secretary (ad interim) A tax holiday is a government incentive program that offers a tax reduction or elimination to businesses. Tax holidays are often used to reduce sales taxes by local governments, but they are also commonly used by governments in developing countries to help stimulate foreign investment (Kagan, 2020).
In the 1990’s, the social power elites of industrialized countries use the soft
language, “market globalization” to define their imperial activities. After the
September 11th^ attacks , the power elites saw a legitimate challenge to
globalization – terrorism (Fernandez et al., 2018).
C. CHALLENGES OF MARKET GLOBALISM AND INTEGRATION
September 11 attacks ,
also called 9/11 attacks ,
were a series of airline
hijackings and suicide
attacks committed in 2001
by 19 militants associated
with the Islamic extremist
group al-Qaeda against
targets in the United States,
the deadliest terrorist
attacks on American soil in
U.S. history (Bergen, 2020).
Hijacked airliner approaching the south tower of the World Trade Center (Bergen, 2020). Fire and smoke billowing from Pentagon after American Airlines Flight 77 crashed into the building (Bergen, 2020). Osama bin Laden Al-Qaeda Founder
Al-Qaeda , meaning “the base” , is a broad-based
militant Islamist organization founded by Osama bin
Laden in the late 1980s. Al- Qaeda began as a
logistical network to support Muslims fighting against
the Soviet Union during the Afghan War; members
were recruited through the Islamic world. When the
Soviets withdrew from Afghanistan in 1989, the
organization dispersed but continued to oppose
what its leaders considered corrupt Islamic regimes
and foreign (i.e., U.S.) presence in Islamic lands (“Al-
Qaeda”, 2019).
Market globalism morphed into imperial globalism. Claims 1 and 4 which are
the backbone of market globalism remained largely intact but the determinist
language of Claim 2, however, came under sustained criticism by
commentators who read the al-Qaeda attacks as exposing the dark side of
globalization (Fernandez et al., 2018).
Some proclaimed the imminent ‘collapse of globalism’ , worrying that the
terrorist attacks would usher in a new age of cultural particularism and
economic protectionism (Steger, Battersby, & Siracusa, 2014). This paves the
way for the Claim 6 of globalization: you need a war on terror to market
globalization’s discursive arsenal (Fernandez et al., 2018).
Lastly, it also worth noting that one observation by many scholars of
globalization is that globalization is Americanization or McDonaldization of
the world (Fernandez et al., 2018).
In early historical periods as both cities and countries extended their reach
beyond their own borders, this view holds a form of globalization was initiated,
which then followed complex patterns of interactive engagements organized
through trade and directly influenced by the emergent and subsequently
dominant technologies (Fernandez et al., 2018).
The contemporary global corporation is simultaneously and commonly referred
to either as a multinational corporation (MNC), a transnational corporation
(TNC), an international company, or a global company. Those offered by Iwan
(2012) are practically useful (Steger, Battersby, & Siracusa, 2014).
D. GLOBAL CORPORATION
McDonaldization is a global phenomenon,
driven by Western corporations, the economic power
and cultural dominance of the West, and as such it
leads to a global homogenization of economic and
social life (Crossman, 2020).
George Ritzer American Sociologist
For George Ritzer, McDonaldization is when
a society adopts the characteristics of a fast-
food restaurant. The process of McDonaldization
can be summarized as the way in which "the
principles of the fast-food restaurant are coming to
dominate more and more sectors of recent idea
about the worldwide homogenization of cultures
due to globalization” (Pieterse, 2009).
machinery. Manufacturing plants would operate in economies of
scale not only confined in their home countries but to different
parts of the world in which comparative advantage warrants
(Gereffi, 1999).
3. The increasing role performed through the global system by financial
elements and emergence of the global financial firm (Neubauer, 2014).
Transactions done within and abroad are
facilitated with ease and assured securely
due to the coordination of international
banking system. Transfer of funds is smooth
sailing regardless of the volume of amount
(Fernandez et al., 2018).
The following are the 25 major American corporations whose 2010 revenues
surpass the 2010 Gross Domestic Product (GDP) of entire countries, often with
a few billion to spare (Trivett, 2011):
E. 25 U.S. MEGACORPORATIONS
1. Yahoo! is an American web services provider headquartered in Sunnyvale, California, and owned by Verizon Media. Yahoo was one of the pioneers of the early Internet era in the 1990s (“Yahoo”, n.d.). Yahoo is bigger than Mongolia Mongolia's GDP : $6.13 billion Yahoo's Revenue : $6.32 billion Yahoo would rank as the world's 138th^ biggest country. 2. Visa Inc. is an American multinational financial services corporation headquartered in Foster City, California, United States. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, gift cards, and debit cards (“Visa Inc.”, n.d.). Visa is bigger than Zimbabwe Zimbabwe's GDP : $7.47 billion Visa's Revenue : $8.07 billion Zimbabwe would rank as the world's 133rd^ biggest country.
3. eBay Inc. is an American multinational e-commerce corporation based in San Jose, California that facilitates consumer-to-consumer and business-to-consumer sales through its website (“eBay”, n.d.). eBay is bigger than Madagascar Madagascar's GDP : $8.35 billion eBay's Revenue : $9.16 billion eBay would rank as the world's 129th^ biggest country. 6. McDonald's is an American fast food company, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States (“McDonald’s”, 2020). McDonald’s is bigger than Latvia Latvia's GDP : $24.05 billion McDonald's Revenue : $24.07 billion McDonald's would rank as the world's 92nd^ biggest country. 5. Consolidated Edison Inc., commonly known as Con Edison or Con Ed, is one of the largest investor-owned energy companies in the United States, with approximately $12 billion in annual revenues as of 2017, and over $ billion in assets (“Consolidated Edison”, n.d.). ConEdison is bigger than the Democratic Republic of Congo Democratic Republic of Congo's GDP : $13.13 billion ConEdison's Revenue : $13.33 billion ConEdison would rank as the world's 112th^ biggest country. 4. Nike, Inc. is an American multinational corporation that is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services (“Nike”, n.d.). Nike is bigger than Paraguay Paraguay's GDP : $18.48 billion Nike's Revenue : $19.16 billion Nike would rank as the world's 102nd^ biggest country.
11. Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services (“Apple Inc.”, n.d.). Apple is bigger than Ecuador Ecuador's GDP : $58.91 billion Apple’s Revenue : $65.23 billion Apple would rank as the world's 68th^ biggest country. 12. Microsoft Corporation is an American multinational technology company with headquarters in Redmond, Washington. It develops, manufactures, licenses, supports and sells computer software, consumer electronics, personal computers, and related services (“Microsoft”, n.d.). Microsoft is bigger than Croatia Croatia's GDP : $60.59 billion Microsoft's Revenue : $62.48 billion Microsoft would rank as the world's 66th^ biggest country. 13. Costco Wholesale Corporation , doing business as Costco, is an American multinational corporation which operates a chain of membership-only warehouse clubs (“Costco”, n.d.). Costco is bigger than Sudan Sudan’s GDP : $68.44 billion Costco's Revenue : $77.94 billion Costco would rank as the world's 65th^ biggest country. 14. General Motors Company is an American multinational corporation headquartered in Detroit that designs, manufactures, markets, and distributes vehicles and vehicle parts, and sells financial services, with global headquarters in Detroit's Renaissance Center (“General Motors”, n.d.). General Motors is bigger than Bangladesh Bangladesh's GDP : $104.92 billion General Motors’ Revenue : $135.59 billion General Motors would rank as the world's 58th^ biggest country.
15. Berkshire Hathaway Inc. is an American multinational conglomerate holding company headquartered in Omaha, Nebraska, United States. It is a holding company for a multitude of businesses. It's run by Chairman and CEO Warren Buffett (Hargrave, 2020). Berkshire Hathaway is bigger than Hungary Hungary's GDP : $128.96 billion Berkshire Hathaway’s Revenue : $136.19 billion Berkshire Hathaway would rank as the world's 57th^ biggest country. 16. The Federal National Mortgage Association , commonly known as Fannie Mae, is a United States government- sponsored enterprise and, since 1968, a publicly traded company. Fannie Mae does not originate or provide mortgages to borrowers. It purchases and guarantees them via the secondary mortgage market (“Fannie Mae”, n.d.). 9. Fannie Mae is bigger than Peru Peru's GDP : $152.83 billion Fannie Mae's Revenue : $153.83 billion Fannie Mae would rank as the world's 51st^ biggest country. 17. ConocoPhillips is an American multinational energy corporation. It is the world's largest independent exploration and production (E&P) company based on proved reserves and production of liquids and natural gas (“ConocoPhillips, n.d.). ConocoPhillips is bigger than Pakistan Pakistan’s GDP : $174.87 billion ConocoPhillips’ Revenue : $184.97 billion ConocoPhillips would rank as the world's 48th^ biggest country. 18. Chevron Corporation is an American multinational energy corporation. One of the successor companies of Standard Oil, it is headquartered in San Ramon, California, and active in more than 180 countries (“Chevron Corporation”, n.d.). Chevron is bigger than Czech Republic Czech Republic's GDP : $192.15 billion Chevron's Revenue : $196.34 billion Chevron would rank as the world's 46th^ biggest country.
The following is an infographic adopted from the “International Business
Degree Guide” (n.d.) which illustrates the other mega-corporations that control
the world. The infographic is grouped into four categories (i.e. Banking, Media,
Food and Beverage Companies, and Oil). Each category has its own classified
corporations.
F. OTHER MEGACORPORATIONS IN THE WORLD
23. General Electric Company is an American multinational conglomerate where its products and services range from aircraft engines, power generation, and oil and gas production equipment to medical imaging, financing and industrial products (“General Electric Company”, n.d.). General Electric is bigger than New Zealand New Zealand's GDP : $140.43 billion General Electric’s Revenue : $151.63 billion General Electric would rank as the world's 52nd^ biggest country. 24. Wells Fargo & Company is an American multinational financial services company headquartered in San Francisco, California, with central offices throughout the United States. It is the world's fourth-largest bank by market capitalization and the third largest bank in the US by total assets (“Wells Fargo”, n.d.). Wells Fargo is bigger than Angola Angola's GDP : $86.26 billion Wells Fargo's Revenue : $93.24 billion Wells Fargo would rank as the world's 62nd^ biggest country. 25. Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores (“Walmart”, n.d.). Walmart is bigger than Norway Norway’s GDP : $414.46 billion Walmart's Revenue : $421.89 billion Walmart would rank as the world's 25th^ biggest country.
Source: https://internationalbusinessguide.org/corporations/
Source: https://internationalbusinessguide.org/corporations/
Source: https://internationalbusinessguide.org/corporations/
