Name: Allyana Marie F.

Santos Date: September 24, 2022

Year/Course/Section: AB Political Science – 2A Professor: Mr. Nilo S. Quintana

THE CONTEMPORARY WORLD

ꟷ Activity No. 2: The Global Economy ꟷ

Explain the following:

1. How do you think that the multi-international companies lift up the Global
Economy?
● Multinational corporations lift up the Global Economy because they are
responsible for the huge slice of global employment, investment, and research.
To some, they are malevolent monopolizers that exploit labor and avoid taxes.
To others, they are engines of innovation and efficiency, contributing to global
prosperity as they allow exchange of goods and services that is integrated into a
huge single global market. Aside from that, it also allows companies to find lower
cost ways to produce their products which increases the global competition that
drives the prices down that creates a large variety of choices for the consumers.
In simple words, multinational companies help bring or create employment and
investment especially in developing countries like ours.

2. Give some effects that the Global Economy brought to the world.
● Global Economy through globalization provides businesses with a competitive
advantage by allowing them to source raw materials where they are inexpensive.
It also gives organizations the opportunity to take advantage of lower labor costs
in developing countries, while leveraging the technical expertise and experience
of more developed economies. Consumers benefit from it too because in
general, globalization decreases the cost of manufacturing which means that
companies can offer goods at a lower price to consumers that contributes to
increases in their standard of living and also allows them to have access to a
wider variety of goods. However, not everything about Global Economy is
beneficial. Any change has its winners and losers, and the people living in
communities that had been dependent on jobs outsourced elsewhere often
suffer. Effectively, this means that workers in the developed world must compete
with lower-cost markets for jobs. Unions and workers may be unable to defend
against the threat of corporations that offer the alternative between lower pay or
losing jobs to a supplier in a less expensive labor market. To some Global
Economy is a blessing but to others they are just some malevolent monopolizers
that aims to exploit labor and avoid taxes.
3. Do you find Global Economy beneficial to the society? Why or why not?
● Yes, as a consumer I do find Global Economy beneficial to the society because
it allows us to have a greater and wider variety of goods that is available for
consuming with a lower price. I get to have some products that are usually
produced from another country to ours by the means of importing. Also, for the
fact that we are a developing country it also helps our economy by the means of
getting employment from the companies that invested in our country.

4. How do you define the Global Economy?

● Global economy can be defined as the sum of activities that take place both
within a country and between different countries. Each country is a separate unit,
with its own industrial production, labor market, financial market, resources and
environment.

5. Give some issues that the Global Economy is facing today.

● Over the past few years, the Covid-19 pandemic has played a major role in
shaping the global economy. Many sectors have found themselves in difficulty
and are still struggling, and the countries that are dependent on those sectors are
now quietly trying to get back up again. Some of the issues that the Global
Economy is facing today were economic slowdown, increasing debt burden,
inflation and etc.