NEW GLOBAL GIANTS

Reforms Rejuvenate Motivation

Use of Reforms
Strength of Local Firms
Globalization of Local Firms

Presented by:
■ Perry Peejay P. Garcia
■ Michelle F. Go
■ Sarah Jane Balmes

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GLOBALIZATION:
ECONOMIC
REFORMS

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GLOBALIZATION

■ In simple terms, globalization is the process by which people and

goods move easily across borders.
■ It's an economic concept – the integration of markets, trade and
investments with few barriers to slow the flow of products and
services between nations.
■ There is also a cultural element, as ideas and traditions are
traded and assimilated.

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Objectives

■ New and flexible methods of production

■ Increase in flow of foreign capital

■ Accelerate human development

■ Global integration

■ Improve trade among nations

■ Improve quality of products manufactures within the economy

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Disadvantages of Globalization

■ The general complaint about globalization is that it has made the rich richer while making the non-
rich poorer.
■ Globalization is supposed to be about free trade where all barriers are eliminated but there are still
many barriers.
■ Workers in developed countries face pay-cut demands from employers who threaten to export jobs.
■ Multinational corporations are accused of social injustice, unfair working conditions (including
slave labor wages, living and working conditions), as well as lack of concern for environment,
mismanagement of natural resources, and ecological damage.
■ Multinational corporations, which were previously restricted to commercial activities, are
increasingly influencing political decisions.
■ Globalization has led to exploitation of labor. Prisoners and child workers are used to work in
inhumane conditions. Safety standards are ignored to produce cheap goods. There is also an
increase in human trafficking.

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Steps taken by Philippine Government
(2012-2017)
■ Key reforms implemented during this period includes:

1. The Customs and Tariff Modernization Act (RA 10863)

- It aims to modernize customs laws, rules and procedures to take in to consideration for faster trade, reduce opportunities for corruption,

improve Customs service delivery and improve supply chain.

2.The Philippine Competition Act (RA 10667)

- Improve consumer protection and help accelerate investment and job creation in the country, consistent with national government’s goal of creating

more inclusive economic growth.

3. Republic Act (RA) No. 10641 that liberalizes the banking sector

- It allows foreigners to own up to 100% of domestic banks and facilitate the entry of established, reputable and financially sound foreign banks the

same banking privileges as domestic bank of the same category.

4. RA 10668 that allows foreign vessels to transport and co-load foreign cargoes for domestic transshipment

-which are defined under the said law as “a citizen of the Philippines, or a commercial partner wholly owned by Filipinos or a corporation at least 60

percent of the capital of which is owned by Filipinos, which is duly authorized by MARINA to engage in the business or domestic shipping.

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Steps taken by Philippine Government
(2012-2017)
■ Ratification of international trade agreements during this period includes:

1. The Trade Facilitation Agreement in 2016

■ - The TFA contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It also
sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation and
customs compliance issues. It further contains provisions for technical assistance and capacity building in this area.

2. The Philippines-European Free Trade Association Free Trade Agreement

- Under the FTA, the PH may qualify for zero tariffs for preparations of meat/fish, even if the meat or fish is imported. In

addition, the PH also gained significant concessions on our agricultural exports, particularly those that are currently being

exported to the EFTA Members States, or those with high potential export interest, including those that are being sold to its

neighboring European countries, which can be alternately be exported to the EFTA countries.

The Philippines-European Union Partnership and Cooperation Agreement

-which will serve as a general framework of the two parties’ relations, will also allow better cooperation on political, economic

and development issues.

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Inclusive Globalization by Duterte
Administration
■ Inclusive Globalization by Duterte Administration focuses on:

– Requiring more developing economies to provide greater market access to the Philippines;

– Promotion of competition, complementation, and cooperation among businesses;

– Strong internet infrastructure;

– Access of MSMEs to the internet to be able to maximize getting information, data, e-commerce and financial

technology in terms of e-payments;

– Provide a lot of training, re-training, education for the MSMEs and the population in general so that we really

have a high quality workforce and technology-oriented Filipinos.

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References

■ Alex Gray, “What is globalization anyway?”, January 2017,

https://www.weforum.org/agenda/2017/01/what-is-globalization-explainer/
■ Kris Crismundo, “PH reforms consistent with APEC’s goal of inclusive globalization”,
April 2018, http://www.pna.gov.ph/articles/1032375
■ Mike Collins, “The Pros And Cons Of Globalization”, May 2015,
https://www.forbes.com/sites/mikecollins/2015/05/06/the-pros-and-cons-of-
globalization/#1df34d7fccce
■ Alexis Romero, “Duterte calls for ‘inclusive globalization’ ”, November 2018,
https://www.philstar.com/headlines/2018/11/19/1869820/duterte-calls-
inclusive-globalization

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GLOBALIZATION OF
LOCAL FIRMS
REFORMS AND STRENGTHS

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GLOCALIZATION

■ This “glocalization” denotes a merging of global opportunities and local interests,

aiming to create a more socio-economically balanced world, which calls for the
accommodation of global perspectives to local conditions, as well as for a more
pronounced role of local actors addressing global challenges.
■ Glocalization, for its part, refers to the balancing of global and local with worldwide
network of cities which aims at strengthening economic, social, and cultural sectors
through peace building and development projects.(Glocal Forum, n.d.).
■ It may be seen as “a reformed globalization of a very strategic nature that relies on
cities as the core socio-political anchor…a reform placing a strong emphasis on
social equity as the basis for international stability (Savir, n.d.).

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OBJECTIVES

■ For urban actors (e.g., cities) to accord greater roles in activities traditionally carried
out on the national level.
■ To make cities key players in decentralized foreign policy, diplomacy, trade and inter-
city projects forwarding social and economic development.
■ Create coalitions where local governments serve as a balancing force to
international private and public sector organizations in the framework of joint
projects (Glocal Forum, n.d.).

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 Savir (n.d.) notes that: “If unified and networked, major cities can be essential
players in reforming globalization, cities can harness local civil society for capacity
building, more effectively direct peace-building activities, and take into account local
labor, cultural expressions, languages, businesses, and communities at all levels of
decision making. …City-to-city cooperation can be developed with local government
playing an operational role in 6 development and post-conflict situations and together
with civil society contribute technical know-how to projects. Wealthy cities can support
disadvantaged cities in the realm of governance, infrastructure development, rural-
urban integration, youth and education, information technology, cultural heritage,
tourism, and peace-building…”

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■ Glocalization suggests a more dynamic and two-way relationship between the
realms of the “global” (multinational corporations, international terrorism, the
entertainment industry, CNN, the Web) and the “local” (the sense of place,
neighborhood, town, locale, ethnicity and other traditional sources of identity),
especially as they are brought into contact on the Web and in other media (Stroupe,
2000).
■ Among those who take part in this “alternative” process are social entrepreneurs –
local community leaders, nonprofit organizations, business groups, among others –
who employ the same spirit of enterprise in helping solve social problems, building
social capital and social profit to improve the quality of life in excluded communities
through partnerships with central and local government, and other local and
national institutions (Community Action Network, 2003).

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Sample Framework (Roldan, 2010)

The diagram illustrates the framework used in the study.

Globalization produces effects on and responses from localities.
These are felt in a socioeconomic and political sense and by
different sectors (e.g., government and the private sector). The
developments brought about by globalization in the domestic
environment could lead to a process of glocalization in which the
role of local players are emphasized, linkaging internally and
externally is intensified and, responses are translocal and
decentralized shown in the bullet points under glocalization.
These manifest glocalization as indicated in the study.

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■ The framework supports the argument that that globalization has encouraged the
privatization of governance – that is, increased regulatory activity through
nonofficial channels, the use of nonofficial agencies to implement public policies,
the expanded involvement of civic associations in official policy formulation, and the
considerable construction of regulations by nonofficial bodies (Scholte, p.157).
■ Such conditions can also be related to the concept of glocalization in which local
players take on a greater role in the decision-making process given increased global-
local interaction. Through information and communications technology (ICT),
glocalized networks emerge, operating more independently of their surrounding
environment.
■ Wellman (n.d.) posits that “glocalized connectivity affords fluid systems for using
ramified networks to access resources at work and in the community: material,
cognitive, and influential…the very fact of their ties to other networks will be
resources, creating the possibility of linkage, trade and cooperation.”

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Strengths of Local Firms

■ The homegrown champions possess a deep understanding of the consumers in

their countries. They know people’s preferences by region or even city, by income
level, by age group, and by gender.
■ These companies also grasp the structures of the raw-materials, components, and
finished-goods markets in which they operate. They are therefore able to provide
consumers with a low level of customization inexpensively.
■ Smart local companies are adept at identifying the key challenges that their markets
pose and, from the get-go, at designing strategies to overcome or sidestep those
obstacles.
■ Many local champions have at their core a business model that taps a pool of low-
cost labor instead of relying on automation.

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References

■ Community Action Network. (n.d.). Definition- What are Social Entrepreneurs? Available:
http://www.can-online.org.uk/entrepreneurship/definition.htm (07/17/03).
■ Glocal Forum. (n.d.). Agenda- Glocalization. Available:
http://www.glocalforum.org/en/abouts/a_agenda/index.asp (1/17/00).
■ Roldan, Ma. Divina Gracia. Globalization and Glocalization: Experiences in the Local Philippine
Context. Available: https://dirp3.pids.gov.ph/ris/dps/pidsdps1021.pdf
■ Savir, Uri. (n.d.) Glocalization: A New Balance of Power. Available:
http://www.worldbank.org/devoutreach/article.asp?id+226. (1/27/04).
■ Stroupe, Craig. (n.d.). Glocalization. Available: http://www.d.umn.edu/- cstroupe/ideas/scape.html
(1/17/00).
■ Wellman, Barry. (n.d.). Little Boxes, Glocalization, and Networked Individualism. Available:
http://www.developmentgateway.org//glocalization/dg-
contribute/itemdetail?item_id=330540&version_id=197360&from=alert.

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