ECONOMIC

GLOBALIZATION
JOHN CARLO S. GABRIEL
Faculty, CSSP
Basic Economics
 Economics is a social science or branch of
study that concerns the limited resources
to reach the maximum satisfaction of every
individuals needs and wants
 Economics is the study of scarcity; and the
study of choices

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 Scarcity is an event or phenomenon on
which the limited resources are
continually being utilized for every
individuals unlimited needs and wants
 Macroeceonomics is the branch of
economics that deals with the economy
as a whole
 Microeconomics is the branch of
economics that deals with individual or
small economic entities
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● 5 Key Economic Assumptions
 Scarcity – the limited resources are being
utilized;
 Choices;
 Trade-off – situational decision that involves
diminishing or losing one quality, quantity, or
property of a set or design in return for gains
in other aspects;
 Marginal Analysis – additional value of
benefits and costs;
 Life situations can be easily analyzed through
simple graphs. 4
● 4 Factors of Production
 Land – natural resources;
 Capital – equipment, tools, etc.;
 Labor – human resource/
activity;
 Entrepreneur – business ideas
and operations
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● 3 Economic System
 Centrally Planned (Communism) – an economic system
where the government solely owns and controls the
distribution and production of the natural resources in its
jurisdiction

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● 3 Economic System
 Free Market (Capitalism) – an economic system where the
private or business entities owns and controls the
distribution and production of the natural resources;
- the government can not interfere with the resources
owned by the private or business entities

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● 3 Economic System
 Mixed – an economic system where the government owns
the resources within its jurisdiction and the private or
business entities can also acquire these resources through
compensation

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● The North and The South
 The North are the superpowered countries (Western countries)
while the South are powerless/developing countries (Eastern
countries);

 Economic globalization is the modern method of colonization

which does not require engaging wars, but by using their cultural
influence;

 The Northern countries are considered the advance countries

through their pertinent technological advancements, which
results to them being more enriched.

 On the other hand, the powerless/developing countries which are

being overpowered because the rich countries acquires their
resources which results to the powerless countries being more
scarce. 9