The Structures of Globalization
other black-market goods which by any
SOCIAL
A measure of how Easily information
and ideas pass between people in their
own country and between different
countries (includes access to internet
and social media networks).
POLITICAL
The amount of political cooperation
between countries.
ECONOMIC
Countries that trade with many others
and few trade barriers are economically
globalized.
ECONOMIC GLOBALIZATION
- It refers to the increasing
interdependence of world economies as
a result of the growing scale of cross-
border trade of commodities and
services, flow of international capital and
wide and rapid spread of technologies.
- The free movement of goods, capital
services, technology, and information.
GLOBAL ECONOMY
• Referred to as world economy.
• This term refers to the international
exchange of goods and services that is
expressed in monetary units of money.
• It may also mean as the free
movement of goods, capital, services,
technology, and information.
WORLD ECONOMY
• Exclusively limited to human economic
activity and is typically judged in
monetary terms.
• Typical examples are illegal drugs and
standard are a part of the world
economy.
ECONOMIC INTEGRATION
The process of arrangement between
regions to reduce or eliminate trade
barriers, and to coordinate monetary or
fiscal policies with common purpose of
increasing the trade to those countries
involved.
Thoughts:
1. Improve the allocation of natural
resources
2. Promote technology transfer
3. Enhance living standards
MARKET INTEGRATION
• When groups of prices often move
proportionally to each other and when
this relation is very clear among different
markets it is said that the markets are
integrated.
• Hence, it could be concluded that
market integration is an indicator that
explains how much different markets are
related to each other.
INTERNATIONAL FINANCIAL
INSTITUTION (IFIS)
• An international financial institution
chartered by more than one country and
therefore are subjects to international
law.
• Its owners or shareholders are
generally national governments,
although other international institutions
and other organizations occasionally
figure as shareholders.
INTERNATIONAL FINANCIAL
INSTITUTIONS:
1. International Monetary Fund (IMF)
2. Multilateral Development Banks
(MDBs)
which can include:
a. World Bank Group
b. African Development Bank
c. Asian Development Bank
d. Inter-American Development Bank
e. European Bank for Reconstruction
and Development
MEMBERSHIP COMPOSITION OF
IFIS:
1. Only sovereign countries are admitted
as member-owner
2. Broad country membership to include
borrowing developing countries and
developed donor countries
3. Membership in regional development
banks include countries around the
world as members (not limited to
countries from the region)
4. Has its own independent legal and
operational states.
OBJECTIVES OF INTERNATIONAL
MONETARY FUND
- To provide temporary financial
assistance to member countries to help
ease balance of payments adjustments.
OBJECTIVES OF MULTILATERAL
DEVELOPMENT BANKS (MDB)
To provide financing for development to
developing countries through:
a. long term loans (with maturities of up
to 20 years) at interest rates way below
market rates.
b. Very long term loans (sometimes
called credits with maturities of 30 to 40
years) at interest rates below market
rates.
c. Grant financing by some MDBs for
technical assistance advisory service or
project preparation.
GLOBAL CORPORATION
• It is one that operates in more than
one country.
• It is one that maintains a strong
headquarters in one country, but has
investments in multiple foreign locations.
• In the world of finance and investment,
a global corporation is one that has
significant investments and facilities in
multiple countries but lacks a dominant
headquarters.
• Global corporations are governed by
the laws of the country where they are
incorporated.
The United Nations (UN)
Main Functions:
To maintain peace and security for all of
its member-states. The UN does not
have its own military but it has
peacekeeping force which are supplied
by the member states.
Other Functions:
To protect human rights and provide
humanitarian assistance when needed.
Other functions of UN:
• To investigate any dispute or situation
which might lead to international friction;
• To recommend methods of adjusting
such disputes or the terms of
settlement;
• To formulate plans for the
establishment of a system to regulate
armaments;
• To determine the existence of a threat
to the peace or act of aggression and to
recommend what action should be
taken;
• To call on members to apply economic
sanctions and other measures not
involving the use of force or stoop
aggression;
• To take military action against an
aggressor;
• To recommend the admission of new
members; and etc.

INDUSTRIAL REVOLUTION
• The Industrial Revolution, now also
known as the First Industrial Revolution,
was the transition to new manufacturing
processes in Europe and the United
States, in the period from about 1760 to
sometime between 1820 and 1840.
• This transition included going from
hand production methods to machines,
new chemical
manufacturing and iron production
processes, the increasing use of steam
power and water power, the
development of machine tools and the
rise of the mechanized factory system.