Chapter 2

PROCESS QUESTION (PAGE 24)

1. Do you think that the Philippines is harmed as other countries transfer their activities to us
through outsourcing?
No, In fact, they are giving Filipinos more jobs and more opportunities because of the business
ventures being brought by foreign investors.
2. In what way do international organizations help our country’s economy?
BPO’s, POGO’s and KPO’s are giving out jobs for both foreign and locals in our country.
International organizations are helping us thru the job opportunities they are offering and the
dollar that they are paying helps us with our international debt.
3. Does the position of rich countries as giants in the economic chains threaten the status of less
developed countries in the global market?
No, Poor countries in a region more likely to be pulled down by other poor countries with evil
leadership. A poor country can’t help another poor country so there is nothing to gain there. A
poor country has the best bet of receiving help from a rich country with good intentions

ACTIVITY: FOLLOW THE PRODUCT (PAGE25)

1. Coffee
2. The main constituents of coffee are caffeine, tannin, fixed oil, carbohydrates, and proteins. It
contains 2–3% caffeine, 3–5% tannins, 13% proteins, and 10–15% fixed oils. In the seeds,
caffeine is present as a salt of chlorogenic acid (CGA). Also it contains oil and wax [2].
3. Brazil is the number one source of caffeine, they makes 2,652,000 metric tons of caffeine per
year, followed Vietnam which makes 1,650,000 metric tons
4. Coffee is being sold in the whole world.
5. There are 10 steps to process the coffee, from seed to cup.
 Planting - This is where the seed is being planted
 Harvesting the Cherries- After few months of waiting, the seed grows to a cherry
 Processing the Cherries- Farmers process fermenting to create beans
 Drying the Beans- They place the beans under the sun to seal all the flavor that is fermented
 Milling the Beans- Before being exported, parchment coffee is processed
 Exporting the Beans- The milled beans, now referred to as green coffee, are loaded onto ships in
either jute or sisal bags loaded in shipping containers, or bulk-shipped inside plastic-lined
containers.
 Tasting the Coffee- Coffee is repeatedly tested for quality and taste.  This process is referred to
as cupping and usually takes place in a room specifically designed to facilitate the process. 
 Roasting the Coffee- Roasting transforms green coffee into the aromatic brown beans that we
purchase in our favorite stores or cafés. Most roasting machines maintain a temperature of
about 550 degrees Fahrenheit. The beans are kept moving throughout the entire process to
keep them from burning.
 Grinding Coffee- The objective of a proper grind is to get the most flavor in a cup of coffee. How
coarse or fine the coffee is ground depends on the brewing method.
 Brewing Coffee- with the use of powered beans, it is the process of making a cup of coffee
 6. All the processes a bean goes through is very interesting, from a bean to a cup of coffee by the
help of technology. The purpose of coffee processing is to remove the fruit to get to the seed
and to prepare the seed in such a way that it is ready for storage, shipping and roasting. It also
greatly effects flavor potential and quality. 

Processing Question (Page 35)

1. What is the impact of global flows on the global south?

The impressive economic growth of developing countries such as China, India, Brazil,
and South Africa has caused a fundamental transformation in the global economy over the last
two decades. The global economic center of gravity is inexorably shifting to the developing
South.

2. Examine the gap between rural and urban areas across the globe. How is that gap affected by
globalization?

The rural-urban divide is still the most well-documented development and welfare
disparity in the economies of the Middle East and North Africa (NENA). The rural-urban divide
can be seen in the lower productivity of economic activities, higher poverty levels, and lower
quality infrastructure and services.

3. What do you think is the impact of urbanization and the rise of global city on the agricultural
sector?
The urbanization process resulted in significant land conversion, which resulted in a
drastic decrease in crop production areas and altered the agricultural landscape of the
Metropolitan Manila area. It also put pressure on urban outskirts, making land use conversion in
cities unavoidable. Since urban area provides the advantage of higher productivity, the resource
shifting from rural to urban sector leads to higher economic growth of the country through
increasing rate of urbanization. In this phase of development, demand and supply side
economics play an important role.

ACTIVITY: THE GLOBAL FREE TRADE ON TRIAL

The rapid increase in global interdependence has compelled all countries, regardless of previous
policies or philosophies, to liberalize their trade regimes. Economic success in today's world necessitates
countries competing aggressively for free international investment, which has a significant impact on the
distribution of global production and thus jobs, profits, and technology. Most countries provide direct
incentives to foreign investors, but an open trade and investment regime is required. Mexico overcame
its historic aversions to trade liberalization and embracing its northern neighbor to propose NAFTA
when it became convinced that doing so was necessary to avoid falling behind in the global competition
for capital.
PROCESS QUESTION (PAGE 42)
1. In the case of the Philippines, how much do you think are we involved in the modern world-
system? What do you think are the advantages and disadvantages of being a part of such?

Technology has reached the Philippines but has not been totally implemented fully. In
fact government systems already adopted digital and online systems but unfortunately
procedures are still based on analog systems. For example, the Bureau of Internal Revenues is
already online nationwide. Theoretically, any tax payer can change information anywhere they
are. However, for a person to change or update their personal information, they need to go to
the tax district where they were last registered to affect changes. In my experience, I have to go
to Metro Manila just to transfer from one district to another when they could have just made it
on the current district I was transferring to. However, they are still implementing procedures as
if the bureau were still offline.

2. How can we “upgrade” our economy given the strength of the global economy, especially the
giant economies like the United States and Japan?
The economy of a country is dependent on the various sectors that exist in that country.
Agriculture, transportation, and information technology are all in demand in countries such as
India. Other sectors are not given as much weight. We need to develop technology in existing
prevalent sectors, such as including good machines in farming to increase crop production,
which will eventually increase GDP. More diverse job opportunities, rather than just one type,
should be provided. Many engineers, for example, are unfit for the profession because they
were coerced into it. As a result, other minor but important sectors remain unfilled. Giving
youth’s financial education is a critical step that can better prepare them to find ways to achieve
financial independence.

3. How do we examine economic globalization considering our colonial history?

Economic globalization takes colonial history into account by learning and

comprehending the paradigm shift between closed door mercantile systems. It is a case of
colonialism versus open door economics, in which anyone can trade and do business with
anyone else.