JAREN P.

FAJARDO POST-ASSESSMENT

BSEE-4A (GEC_CEA04) LM2LP1

Answer the following questions:

1. In your own understanding, what do you think is the rationale behind the concept of Global Economy?

The global economy has changed significantly over the past few decades, in the way that it is organized and
governed by collaborating nations. These changes have repercussions that not only affect the flow of goods and services
between countries, but also the movement of people. As we’ve seen on occasions over the last century, too great a
fluctuation in this international economic system can lead to a global economic crisis.

The global economy refers to the interconnected worldwide economic activities that take place between multiple
countries. These economic activities can have either a positive or negative impact on the countries involved.

The global economy comprises several characteristics, such as Globalization that describes a process by which
national and regional economies, societies, and cultures have become integrated through the global network of trade,
communication, immigration, and transportation. International trade is considered to be an impact of globalization. It
refers to the exchange of goods and services between different countries, and it has also helped countries to specialize
in products which they have a comparative advantage in. International finance, Money can be transferred at a faster
rate between countries compared to goods, services, and people; making international finance one of the primary
features of a global economy. Global investment, this refers to an investment strategy that is not constrained by
geographical boundaries.

The global economy provides linkages between the regions and nations of the world in a system of economic
relationships. These relationships involve the exchange of goods and services, financial flows across borders,
exchanging different nations' currencies, movement of people in search of better standards of living. If the global
economy is defined as the economic interactions of among the community of nations, then global economic issues deal
with issues and controversies surrounding these economic interactions.

2. What are the markets that are affected by Globalization?

A powerful force drives the world toward a converging commonality, and that force is technology. It has proletarianized
communication, transport, and travel. It has made isolated places and impoverished peoples eager for modernity’s
allurements. Almost everyone everywhere wants all the things they have heard about, seen, or experienced via the new
technologies.

The result is a new commercial reality. The emergence of global markets for standardized consumer products on a
previously unimagined scale of magnitude. Corporations geared to this new reality benefit from enormous economies
of scale in production, distribution, marketing, and management. By translating these benefits into reduced world prices,
they can decimate competitors that still live in the disabling grip of old assumptions about how the world works.

The globalization of markets is at hand. With that, the multinational commercial world nears its end, and so does the
multinational corporation.

Worldwide communications carry everywhere the constant drumbeat of modern possibilities to lighten and enhance
work, raise living standards, divert, and entertain. The same countries that ask the world to recognize and respect the
individuality of their cultures insist on the wholesale transfer to them of modern goods, services, and technologies.
Modernity is not just a wish but also a widespread practice among those who cling, with unyielding passion or religious
fervor, to ancient attitudes and heritages.

3. What are some global economic issues that we are aware of at present?

Explore economic issues facing the world economy, as well as regions and countries, including the pandemic, prospects
for growth, inflation, energy and the environment, inequality, labor issues, emerging markets, and the impact of new
technologies, with research by the world's leading experts at the Peterson Institute for International Economics.