URDANETA CITY UNIVERSITY

Ms. JOANNA CARMEL D. ROSARIO

Social Science Instructor
 CHAPTER 2
THE STRUCTURES
OF
GLOBALIZATION
WHAT IS GLOBAL ECONOMY?

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. It is also mean as the
free movement of goods, capital,
services, technology and information.
 Changing Structure of Global Economy
1. Advances in Transportation and
communication technology.
2. Management innovation in
multinational companies.
3. A process of learning about doing
business in multiple and diverse
environments.
4. The shape of global supply chains
is constantly shifting.
5. Countries enter and engage with
the global economy at different
times and expand at different
rates.
•HORIZONTAL INTEGRATION

•VERTICAL INTEGRATION

•CONGLOMERATE
• Vertical integration is a strategy that allows a company to streamline
its operations by taking direct ownership of various stages of its
production process rather than relying on external contractors or

Vertical integration is a strategy that allows

a company to streamline its operations by
taking direct ownership of various stages of
its production process rather than relying
on external contractors or suppliers.
CONGLOMERATE
 GLOBAL CORPORATION – In the world of finance and investment, a
global corporation is one that has significant investments and facilities in
multiple countries but lacks a dominant headquarters. Global
corporations are governed by the laws of the country where they are
incorporated.
 GLOBAL INTERSTATE SYSTEM – World systems are defined by the
existence of a division of labor. The modern world system has a multi-
state political structure (the interstate system) and therefore its division
of labor.
 GLOBAL GOVERNANCE – this term global governance is sometimes
referred to as world governance. Global is a movement towards political
cooperation among transnational actors, negotiating responses to
problems that affect more than state or region.
 EFFECTS OF GLOBALIZATION GOVERNANCE – According to the
disciplining hypothesis, globalization restrains governments by inducing
increased budgetary pressure.
 WORLD SYSTEM – World system deals with inter-regional and
transnational division of labor, which divides the world into core
countries, semi-periphery countries, and the periphery countries.
 INTERNATIONALISM versus GLOBALIZATION – Globalization,
considered by many to be the inevitable wave of the future, is
frequently confused with internationalization, but is in fact something
totaly different. International relations, treaties, alliances, etc.
 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.