Republic of the Philippines

City of Olongapo
GORDON COLLEGE
COLLEGE OF EDUCATION, ARTS AND SCIENCES
Olongapo City Sports Complex, Donor St., East Tapinac, Olongapo City 2200
Telefax No.: (047) 602-7175 loc 322

GEC03 (TCWPS) – MIDTERM REVIEWER

TERMS & DEFINITIONS Association of people

characterized by formal institution
Exchange of goods, services, STATE of government, laws, territory, and
GLOBALIZATION
culture, technology, etc. sovereignty.

ABSOLUTE Goods and services are better Group of people with same
ADVANTAGE than other countries. language, history, culture, and
NATION geographic territory.
COMPARATIVE Goods and services cost are lower
ADVANTAGE than other countries. GNI/GNP PER Value of a country’s final income in
CAPITA a year, divided by its population.
TRADE DEFICIT More imports than exports
Acquisition of territory by public,
TRADE More exports than imports peaceful, and continuous control or
SURPLUS PRESCRIPTION exercise of sovereignty and
territory (length of time is not
TARIFF Tax on import and export definite).

EXPORT Government’s payment to private The assignment, transfer, or

SUBSIDIES firms in order to increase export. CESSION yielding up of territory by one state
or government to another.
QUOTA Limitation
Mode of acquiring a territory
ECONOMIC Process of economic and trade belonging to a state by occupation
SUBJUGATION
GLOBALIZATION activities globally. and conquest made by another
AND state in the course of war and by
ANNEXATION
SOCIAL Impact on the life and work of annexation at the end of the
GLOBALIZATION people, their families, and war (involuntary cession).
societies.
Geographical process by which
POLITICAL Expansion of political interrelations new land is formed mainly through
ACCRETION
GLOBALIZATION across the globe. natural causes and becomes
attached to existing land.
Process of promoting and selling
MARKET The way power is gained and
goods and services in global
GLOBALISM used; closely related to the legal
economy.
POLITICAL system since governments, and
ENVIRONMENT the courts they appoint, determine
Economy is controlled by private
CAPITALISM the laws and the eventual
organization.
application of those laws and
regulations.
Economy is controlled by the
SOCIALISM
whole community.
Risk of change in political
environment or government policy
MIXED Capitalism + Socialism
POLITICAL RISK that would adversely affect a
ECONOMY
company’s ability to operate
effectively and profitably.

Rules and principles those nation-

INTERNATIONAL
states consider binding upon
LAW
Owned by: Rica-Anne L. Evangelista
 Republic of the Philippines
City of Olongapo
GORDON COLLEGE
COLLEGE OF EDUCATION, ARTS AND SCIENCES
Olongapo City Sports Complex, Donor St., East Tapinac, Olongapo City 2200
Telefax No.: (047) 602-7175 loc 322

themselves. FTA Free Trade Areas

Body of law that applies to CU Customs Union

disputes arising from commercial
COMMON LAW transactions between companies CM Common Market
of different nations.
Association of Southeast Asian
Deals with people's relationships, ASEAN
Nation
CIVIL LAW property, and business
agreements. EU The European Union

Legal system in many Middle South African Development

ISLAMIC LAW Eastern countries is identified with SADC
Community
the law of Islam.
Organization of the Petroleum
2 or more neighboring countries OPEC
Exporting Countries
CUSTOMS that use one common system of
UNION procedures, rules, and tariffs for GCC Gulf Cooperation Council
their imports, exports, and
transiting goods. MERCOSUR Common Market of the South
North American Free Trade
Countries with common external NAFTA
Agreement
tariff and may allow mobility and
COMMON common economic policies; factors Economic Community of West
MARKET of production (labor, capital, ECWAS
African States
technology) are mobile among
members.
ANDEAN
Comunidad Andina
COMMUNITY
REVENUE Applied to a product that is not
TARIFF being produced domestically.
NAMES, EVENTS, & DATES
Implemented to shield domestic
PROTECTIVE
producers from foreign WORLD WAR II Change of world economy;
TARIFF
competition. institutionalized the sharp decline
in the standard of living caused by
Occurs when society, its the Great Depression.
MCDONALDIZATI institutions, and its organizations SIMON & There have been several
ON OF SOCIETY are adapted to have the same SCHUSTER, 1997 remarkable changes in the
characteristics that are found in world economy
fast-food chains (efficiency,
calculability, predictability and 1947 GATT was established
standardization, and control).
JANUARY 1, 1994 NAFTA agreement came into
force.
Cartagena Agreement was signed
ACRONYMS 1969
1996 ANDEAN was called Andean Pact
WTO World Trade Organization
Ñemby( Ñemuha) is a South
GNI Gross Nation Income
1991 American trade bloc established
GATT General Agreement on Tariff and by the Treaty of Asunción.
Trade
Owned by: Rica-Anne L. Evangelista
 Republic of the Philippines
City of Olongapo
GORDON COLLEGE
COLLEGE OF EDUCATION, ARTS AND SCIENCES
Olongapo City Sports Complex, Donor St., East Tapinac, Olongapo City 2200
Telefax No.: (047) 602-7175 loc 322

1. Globalization: Liberalization and Global

1994 Ñemby (Ñemuha) is a South Integration of Markets
American trade bloc established 2. Globalization: Inevitable and Irreversible
by the Protocol of Ouro Preto. 3. Nobody is in Charge of Globalization
DECEMBER 1, Venezuela has been 4. Globalization Benefits Everyone
2016 suspended as member of 5. Globalization Furthers the Spread of
Mercosur. Democracy in the World
6. Globalization Requires War on Terror
AUGUST 8, 1967 ASEAN was formed by Indonesia.
JANUARY 28, THERE ARE TWO KINDS OF SOVEREIGNTY:
AFTA was signed in Singapore. • Internal Sovereignty
1992
• External Sovereignty
JANUARY 1, 2008 Gulf Cooperation Council was
launched. INTERCONNECTED DIMENSIONS OF ECONOMIC
Economic Community of West GLOBALIZATION
MAY 28, 1975
African States was established.
The Globalization of Trade Goods and Services
AUGUST 2008 The SADC Free Trade Area - When a country exports more than imports, it
was runs a?
2000 Implementation of the SADC - When a country imports more than it exports, it
Protocol on Trade runs a?

1–22 JULY 1944 Bretton Woods’s agreement was The Globalization of Financial and Capital Markets
signed. Trade Barriers:
 Tariff
President Osmeña appointed  Export subsidies
DECEMBER 5,
Resident Commissioner Carlos P.  Quotas
1945
Romulo as his representative to
accept Philippine membership in The Globalization of Technology and
the International Monetary Fund Communication
and in the International Bank for - Capital is not the only factor of production
Reconstruction and Development. required to produce output, labor is equally
important.
DECEMBER 27, Romulo signed the membership - To be productive, the workforce must be healthy.
1945 on behalf of the Philippines.
Globalization of Production
CAUSES OF POLITICAL RISK Internationalization
 Tension - Firms extend products and services overseas
 Taxes markets, usually from their home country.
 Seizure of assets (expropriation and - Internationalization is the first stage in the
nationalization) globalization process.

NEW WORLD BANK CLASSIFICATION, 2022-2023 BASIC ORGANIZATIONAL PRINCIPLES

1. LOW-INCOME COUNTRIES - Less than P64, • Efficiency
069.25 • Calculability
2. LOWER-MIDDLE-INCOME COUNTRIES - P64, • Uniformity and predictability
069.25 – P251,257.75 • Control through automation
3. UPPER-MIDDLE-INCOME COUNTRIES -
P251,257.75 – P779,755.25
GREAT DEPRESSION
4. HIGH-INCOME COUNTRIES - Greater than
P779,755.25 - Worst economic downturn in the history of the
industrialized world, lasting from the stock market
THE SIX CORE CLAIMS OF MARKET GLOBALISM crash of 1929 to 1939.

Owned by: Rica-Anne L. Evangelista

 Republic of the Philippines
City of Olongapo
GORDON COLLEGE
COLLEGE OF EDUCATION, ARTS AND SCIENCES
Olongapo City Sports Complex, Donor St., East Tapinac, Olongapo City 2200
Telefax No.: (047) 602-7175 loc 322

Owned by: Rica-Anne L. Evangelista