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    Lesson 2 - ECONOMIC GLOBALIZATION

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    Lyrehc Ablasi

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    Lesson 2 - ECONOMIC GLOBALIZATION

    Uploaded by

    Lyrehc Ablasi
    1 views16 pages

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    Download as pptx, pdf, or txt
    1 views16 pages

    Lesson 2 - ECONOMIC GLOBALIZATION

    Uploaded by

    Lyrehc Ablasi

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 16

    ECONOMIC

    GLOBALIZATION
    P R E PAR E D BY: C H E RY L AB L AS I
    ECONOMIC GLOBALIZATION
    It refers to the expanding interdependence of
    world economies. Shangquan (2000)
    attributes this to the growing scale of
    cross-border trade commodities and
    services, flow of international capital,
    and wide and rapid spread of technology.
    Economic Movement in Asia
    based on History
    1. Silk Road - a network of trade routes
    that connect the East particularly China
    and the West.
    2. Philippines send thousands of skilled
    workers to the Middle East.
    2 Types of Economic Globalization
    Four Interconnected Dimensions of
    Economy (Benczes, 2014)
    1. Globalization of trade of goods and services
    - establishment of the World Trade Organization that
    eases trade among countries.
    - emergence of China as a major supplier and exporter
    of manufactured goods
    - increasing number of business process outsourcing
    (BPO) companies in the Philippines
    Four Interconnected Dimensions of
    Economy (Benczes, 2014)
    2. Globalization of Financial and Capital markets
    - liberalization of financial and capital markets
    - cross-listing of shares on one or more foreign stock
    exchange
    - cross hedging and diversification of portfolio
    - round the clock trading worldwide
    Four Interconnected Dimensions of
    Economy (Benczes, 2014)
    3. Globalization of technology and
    communication
    - various transactions and inter-activities
    that transpire instantly due to the
    internet and communication technology.
    Four Interconnected Dimensions of
    Economy (Benczes, 2014)
    4. Globalization of production
    - existence of multinational corporations and
    transnational corporations
    ex. Coca Cola Company - it is based in Atlanta,
    Georgia, USA. The company only manufactures
    syrup concentrates and sell the to various bottlers
    in other territories like the Philippines.
    Different Agents that bring About the
    Inter-dependencies of Global Companies

    a. Nation-States/Government
    - midwives of globalization
    - acts as mediators between the effects of
    globalization and the national economy
    - make policies and regulations either permit or
    deny smooth connection with other countries
    Different Agents that bring About the
    Inter-dependencies of Global Companies
    b. Global corporations
    - Consumers prefer to consume and avail global
    product and services. Ex. Amazon, Uniqlo, Adidas,
    Nike etc.
    - San Miguel and Jollibee Foods Corporation are
    good illustration of this as they have expanded
    outside their home country.
    Different Agents that bring About the
    Inter-dependencies of Global Companies
    c. International Monetary System
    - refers to the internationally agreed rules, conventions,
    and institutions for facilitating international trade,
    investments and flow of capital among nation states.
    Examples:
    * Gold standard system
    * Bretton Woods System
    *European Monetary System
    WORLD SYSTEM THEORY
    The World Systems Theory was developed by
    sociologist Immanuel Wallerstein.
    It is an approach to world history and social
    change that suggests that there is a world
    economic system in which some countries
    benefit while others are exploited.
    WORLD SYSTEM THEORY
    This theory emphasizes the social structure of
    global inequality.
    According to the World Systems Theory, the
    world is divided into three types of countries
    or areas: core, periphery, and semi-periphery.
    WORLD SYSTEM THEORY
    Two Stands About Economic
    Globalization
    a. Unites the World
    - fosters universal economic growth and development
    - allows a worldwide distribution of incomes
    - reduces poverty
    - creates mutual dependence between developing
    and developed countries
    Two Stands About Economic
    Globalization
    b. Divides the World
    - sources of goods and services are exploited
    - economic globalization does not benefit all
    nations
    - capitalism created the different levels of wages
    in the economic arena of world system.

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