Prelim Exam (70 pts.

) 

1. What is globalization? (3 pts.) 

is the process through which an increasingly free flow of ideas, people, goods, services, technology and
capital leads to the integration of economies and societies.

2. Identify at least 5 advantages and disadvantages of globalization to a country? (10 pts.)

Advantages Disadvantages
1. Transfer of Technology 1. Unequal economic growth
2. Better Services 2. Lack of local businesses
3. Standardization of Living 3. Increases potential global recessions
4. Development of Infrastructure 4. Exploits cheaper labor market
5. Foreign Exchange Reserves 5. Causes job displacement

3. Give at least three countries each of the 4 category systems of per capita income GNP. (12 pts.)

Low Income Countries Low-Middle Income Countries

1. Sahara 
1. Belarus
2. Burundi
2. Indonesia
3. Rwanda
3. Turkey

Upper-Middle Income Countries High Income Countries

1. United State of America
1. Malaysia
2. Japan
2. Brazil
3. Germany
3. Philippines

4. Differentiate the following by giving illustrations:

a. State from a Nation - The terms “nation” and “state” are often used interchangeably, even
though they are two distinct concepts. Whereas a nation is a group of people who share common
characteristics, a state is a sovereign territory with defined borders, a permanent population, and a
functioning government. It is, of course, possible for a state to be the embodiment of a nation. In
other words, a state in which the overwhelming majority of people belong to the same nation. This
is commonly known as a nation-state.

b. Internal from external sovereignty - The main difference between internal and external
sovereignty in sociology is that internal sovereignty refers to absolute authority within one’s own
territory, whereas external sovereignty refers to the ability of the state to act independently and
autonomously in the face of external forces. Sovereignty refers to absolute authority or supreme
power within a bounded territorial space. Moreover, there are two types of sovereignty as internal
sovereignty and external sovereignty.

c. Capitalism from socialism - The capitalist economic model relies on free market conditions for
the creation of wealth. The production of goods and services is based on supply and demand in the
general market. This economic structure is referred to as a market economy.
 In a socialist economic model, the production of goods and services is either partially or fully
regulated by the government. This is referred to as central planning, and the economic structure
that is created is known as a planned economy or a command economy.

d. Globalization from internationalization - Globalization means connecting the economies of the

world for free trade and economic policies to integrate the world into the global village.
Globalization is at the core in any of the policy planning by the International Monetary Fund (IMF) or
United Nations. It is the process of opening the economies of the nation for the other nations and to
sync the rules and regulations with other nations. Internationalization means to produce goods or
deliver services that have the capability of entering into the international markets and have the
standards that are globally accepted. Internationalization means to expand the business and enter
into the market of different countries. It is the process in which a business, firm or individual
expands and becomes part of the other countries, it may be for goods supply, customer base or such
other demand fulfilment.

5. Is the Philippines a State or a Nation? Justify your answer. (5 pts.)

The Philippines are a nation that is made up of a large number of islands located off the mainland of Asia.
A number of different languages are spoken in the Philippines, which are located in southeast Asia, south
of Taiwan and east of Vietnam. However, the primary languages of government and education are
English and Filipino. Filipino is the standardized dialect of Tagalog.

6. Is there a full exercise of an external sovereignty of a state? Justify your answer. (5 pts.)
- Yes, the state should be able to exercise this authority free from any external influence and in a
position of equality. A sovereign state is a political association with effective internal and external
sovereignty over a geographic area and population which is not dependent on, or subject to any
other power or state.

7. Should the Philippines continue its membership to some of the international economic organizations
like ASEAN, APEC or WTO? Justify your answer. (5 pts.)
-Yes, it’s still continue for membership to some of the international economic organizations like
ASEAN, APEC or WTO. Because they have a trade provide growth to the economy because when
trade started in any country it brings new opportunities to people. Which also brings money in public.
So, trade is the most important pillar for growth of any economy. When a country started trading in
the domestic and International market.

8. What should the Philippine government do despite its membership in the United Nations
Organization? (5 pts.)
-It builds on decades of close cooperation between the Philippines and the United Nations for the
achievement of national and global development objectives, focusing on areas where the capacities
of the UN, when working across mandates, will have the greatest impact to leave no one behind. As
an initial investment in the longer-term UN support to 2030 Agenda, it recognizes the strengths and
capacities of the Philippine government and focuses on historically challenging areas that are
foundational to SDGs to complement Philippines-led efforts towards acceleration.