THE GLOBALIZATION

OF WORLD
ECONOMICS

LESSON 2
Learning Objectives
At the end of the lesson, you
should be able to:
define economic globalization;

identify the actors that facilitate economic globalization;

narrate short story of global market integration in the 20th centurty; and

articulate your stance on global economic integration

What is Economic Globalization?
It is regarded as a historical process
representing the result of human
innovation and technological progress.

It is characterized by the increasing integration of

economies around the world through movement
of people and kwoledge across boarders.
 How does one define
"increasing integration"?
When is it considered
that trade has
increased?
The impact of Global pandemic
in economy 2020 - 2021
youtube.com/watc
h?v=tqLwpRFUefI
Who are the actors that
facilitate economic
globalization?
1. International Monetary Fund
(IMF), World Bank,
Organization for Economic
Cooperation and Who are the actors that
Development (OECD), facilitate economic
Association of Southeast globalization?
Asian Nations (ASEAN), 2. Multinational Companies
North America Free Trade (MCs)
Agreement (NAFTA). - Dutch and British East India,
Muscovy Company, Royal African
Company, and Hudson Bay
 Who are the actors that
facilitate economic Who are the actors that
globalization? facilitate economic
globalization?
3. Central Banks
- Banko Sentral ng Pilipinas 4. Global civil society - seen as
either composed of individuals
or groups of individuals
disadvantaged by the effects of
the globalization of the global
social movement constituting a
basis for an alternatives to a
new world order.
What is the Modern World System?

Immanuel
Wallerstein's
theorization of globalization
For Wallerstein, a world constitutes a
social system composed of
boundaries, structures, member
groups, rules of legitimation and
coherence (Wallerstein, 2011).
What is the Modern World System?

Immanuel
Wallerstein's
theorization of globalization
World economy, according to
Wallerstein (2011), is divided into core
states and peripheral areas including
semi - periherals.
World-Systems Theory

Core Semi-peripheral Peripheral

Describes dominant capitalist Countries that share Peripheral countries are

countries which exploit the characteristics of both core and dependent on core countries for
peripheral countries for labor and periphery countries. capital and have underdeveloped
raw materials. industry.
 Global
Insterstate
System

 What is an Interstate System?

"System of unequally powerful

and competing states in which no
single state is capable of imposing
control on all others. These states
are in interaction with one another
in a set of shifting alliance and
wars and changes in relative
power of states upsets any
temporary set of alliance, leading
to a restructuring of the balance
of power"
Effects of Globalization on
Governments
As the world becomes more
interconnected through politics,
trade and communications, the role
of nation-states and goverment are
also shifting. Thus, national and local
policies are not only based on local
context but also international and
global realities.
 Institutions that
govern globalization
Introduction
With the growing globalization, the
governance of global relations goes
Example:
beyond nation-state governments.
Climate change, cybercrimes and global
Nation-state government's scale and
financial crises.
scope are limited in addressing regional
and global issues.
 "Glocalization"
Glocalization is the adaptation
of global and international
products, into the local
contexts they're used and sold
in. ... In regards to a particular
product or service, this means
the adaptation of globally
marketed products and
services into local markets
 What are Institutions the
govern globalization?
1. United Nations - is an
intergovernmental organization
2. Regional Commissions -
aiming to maintain international
Economic Commission for Africa (ECA),
peace and security, develop friendly
Economic Commission for Europe (ECE),
relations among nations, achieve
Economic Commission for Latin
international cooperation, and be a
American and the Carribean (ESCLAC)
center for harmonizing the actions
and etc.
of nations. It is the world's largest,
and most familiar, international
organization.