Cherry Anne D.

Nievera GED105-C2 12032021

“Global Economics and Political Integration of Centuries”

1625-word count

Introduction

For centuries, individuals everywhere have been more connected than ever.

Money and information are traveling at a quicker rate than ever before. Goods and

services manufactured in one part of the globe are becoming more widely available in

other countries worldwide. International Traveling is getting increasingly prevalent. This

development has been labeled as globalization. Globalization is an idea that will

continue to impact practically every individual in the globalized world, both economically

and effectively. Mendoza R. (2021) stated that before the pandemic, the Philippines was

also recognized as one of the fastest-growing economies. However, the country's

economic progress began a decade before the outbreak. Still, in 2020, Philippine

economic growth slowed to a halt, hitting negative territory for the first time since 1999.

Improvements in manufacturing output, external trade, public infrastructure

expenditure, employment, and mobility all indicate critical sector development, which

might reference the rise of the global economy. Economic integration means

globalization from an economic point of view. It is a form of international cooperation

that often comprises the removal or reduction of trade barriers, monetary coordination,

and fiscal policies. Its objective is to lower consumer and production costs while

increasing commerce between the nations included in the agreement (Kenton, 2021).

The study conducted by Brou and Ruta (2017) shows that when economic integration is

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not complemented by political integration, corporations may respond to increasing

rivalry in the economy by focusing more on rent-seeking operations, resulting in less

innovation and slower development. Globalization has brought people from all around

the world closer together than they have ever been before. The flow of information from

one person to another has become efficient and considerably faster. Compared to

previous periods, engaging with individuals from diverse nations has become

progressively accessible.

Reason 1

Globalization improves global society by reducing economic inequality and more

equally distributing foreign investment. As a result, the goal of globalization creates

jobs, the gap between the rich and the poor is narrowing. Innovation and growth will be

more substantial, and welfare will be higher if economic integration is supported by

political integration. Then, we can illustrate how combining economic and political

integration boosts economic performance by increasing competitiveness in both

markets. Improvements in job creation and labor force participation have been

tempered by a rise in the share of part-time workers and underemployment. A fall in

earnings, business income, and remittances, along with new community quarantines in

April 2021, will likely contribute to elevated levels of poverty despite the government's

mitigation efforts. Fortunately, according to the National Statistics Office of the

Philippines, in the third quarter of 2021, the Philippines' employment rate improved to

93.13 percent, slightly higher than 91.27 percent in the second quarter, which caused

the Philippine economy to increase by 7.1 percent. Masterclass (2020) released an

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article stating that globalization promotes economic progress in all countries that

engage in the global economy by enhancing the global exchange of goods,

technological breakthroughs, and information. An increase in economic growth equates

to more significant living standards, higher wages, more wealth in a community, and, in

many situations, less poverty—in other words, a country's general well-being.

Counterargument 1

Although globalization benefits some customers by increasing the number of

things offered at lower prices, it also has far-reaching negative implications for the

global society by increasing economic inequality. Supporters of the anti-globalization

movement argue that “globalization has dramatically increased inequality between and

within nations” (Mazur, 2000) and, more specifically, that it has marginalized the poor in

emerging nations while leaving the poorest countries behind. Globalization benefits the

affluent economically. Its wealth is created at the cost of developing countries. The

danger of globalization results in the loss of high-paying employment, rising income

disparity, and a uniform global culture that impedes national sovereignty by making a

market more competitive. Integration has a favorable impact on innovation and growth

due to outsourcing, high-paying positions are being lost, and smaller companies are

finding it exceedingly difficult to compete (Masterclass, 2020). Integration in one market

reduces the number of enterprises in the other market, reducing innovation and growth.

In addition, when economic integration is not complemented by political integration,

corporations may respond to rising economic rivalry by focusing more on rent-seeking

operations, resulting in less innovation and stagnant growth. Brou and Ruta (2007) also

stated that if economic integration, like political integration, cannot ensure advances in

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development or welfare on its own, then it shows how combining economic and political

integration boosts economic performance by increasing competitiveness in both

markets. Economic globalization has intensified the competition in the international

market among enterprises from different countries. Domestic and foreign firms have

been turning to mergers and acquisitions one after the other in order to better their

positions and competitiveness in the worldwide market, resulting in waves of industrial

restructuring.

Reason 2

Economic integration may foster an atmosphere in which current enterprises can

expand, become more productive, or depart the market, as well as new firms can

develop and succeed or fail quickly and inexpensively. In addition, an individual can

purchase products for less cost, meet other people from all over the world, and work in

any country. Significantly, globalization has broadened people's understanding of one

another by bridging cultural differences to our attention. Through globalization, different

nationalities become interconnected and reliant on one another for particular

commodities when they join forces to trade and engage in a global financial market

which creates a mutual understanding and allows people to connect across the globe.

Only a shared global culture can bring nations together and prevent military wars. It

acknowledges each nation on a global scale, and it shows how nations may work

together to achieve economic development and political unity. Furthermore, by allowing

us to engage in this beneficial exchange, the expansion of the market has resulted in a

massive burst of wealth creation.

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Counterargument 2

National sovereignty and independence will fade away as national cultures are

encroached upon, and everyone will be forced to conform to a new way of life.

Globalization imposes western attitudes, beliefs, and standards on the rest of the globe,

eroding national sovereignty. Globalization weakens both direct rule and country's

official sovereignty.

Reason 3

Globalization allows political ideas such as human rights and liberal democracy

between the countries to be discussed and the participation of developing countries in

the process that can enable them to better utilize their comparative advantages,

introduce advanced technologies, foreign capital, and management experience. It is

also beneficial for decreasing monopolistic conduct and increasing market competition.

The unrestricted movement of goods and services, as well as physical and financial

capital, is referred to as openness in terms of trade and financial flows. Furthermore,

positive externalities such as the acquisition of innovative technologies, knowledge, and

managerial skills, the establishment of institutions, contributing to total factor

productivity, and augmenting the developmental financial mean are expected to occur

as a result of the economic reform process. Political cooperation among countries also

can improve because of stronger economic ties, which provide an incentive to resolve

conflicts peacefully and lead to greater stability.

Counterargument 3

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Although this legal nexus between globalization and human rights may be

examined from the perspectives of economic regulation and humanitarian law, the

extent to which human rights law takes globalization and economic interests into

account is debatable. Human rights legislation has evolved in reaction to globalization,

and nothing fundamental in the international system would preclude future safeguards.

Efforts to minimize competitive distortions and improve worker protection of

fundamental rights compelled the adoption of international labor standards. Moreover,

globalization had a significant negative impact on human rights, particularly during

World War II. However, there has been significant improvement and change in today's

era, to the point where globalization has improved roads and public transit, livelihoods,

health care, and even education for the young.

Reason 4

Political integration increases the likelihood of getting funding and support from

partner countries and organizations. It has a favorable impact on economic growth since

it expands the market. Traveling via the ASEAN area makes sense regarding the added

benefit of improved job possibilities and more accessible and cheaper travel

alternatives, goods, and services. Filipinos would have more opportunities for better

occupations if they were better prepared for these growing responsibilities. With the

Filipinos' quality of life gradually improving, the country is more equipped for

globalization, and it will no longer surprise if the economy continues to do well. Because

of strong relations with other ASEAN countries, the Philippines is moving closer to

realizing its enormous potential.

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Counterargument 4

Moreover, the nation endured one of the most severe contractions in the

Association of Southeast Asian Nations region (ASEAN) due to the sudden slowdown in

businesses and prolonged stay of people in their homes. In 2020-2021, the number of

people who lost their jobs increased. Fortunately, a statistic shown by the National

Economic and Development Authority stated that in the third quarter of 2021, the

Philippine economy increased by 7.1 percent. t.

Conclusion

Therefore, economic integration is an opening of markets and trades among

nations, while for others, it is an institution that has been created to manage this new

world. However, it is not much of whether an individual likes or dislikes globalization. In

my opinion, it is all about figuring out what you are doing and how you are going to do it.

Given its enormous potential for economic benefits, it would be a waste to completely

turn our backs on it, whether for political, social, or cultural reasons. Instead, we need to

enhance our grasp of its ramifications and the economics of its interactions with other

concerns.

Furthermore, we must develop rules that maximize the program's benefits for as

many people as possible. Integration with the global economy should be recognized as

a means to an end rather than an end itself. As a result, the local economy's authorities

should optimize.

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