GLOBAL ECONOMY

PREPARED BY ISABELLA LAZARO LLAMADO

Activity
Hatiin ang klase at mag sagawa ng informal debate.

“Ang pandaigdigan malayang kalakalan ay

mas nakasasama kaysa nakabubuti.”
 ECONOMIC

GLOBALLIZATION

The increasing integration of

economics around the world,
particularly through the movement of
goods, services and capital across the
border. Also refers to the movement
of people and knowledge across
international borders (Benczes, 2014).

source: bookring.edu
TRANSNATIONAL

CORPORATIONS (TNC)

Major players of present day global

economy. For some contemporary
globalization is equated primarily with
TNCs. the main driving forces of economic
globalization of the last 100 years.

For realist ( an IR approach/theory), TNC's

represents national interest. For
Dependency, the means through which the
rich can exploit the poor.
INTERNATIONAL MONETORY SYSTEM
International monetary system refers to the system and rules that govern the
use and exchange of money around the world and between countries. Each
country has its own currency as money and the international monetary system
governs the rules for valuing and exchanging these currencies.
The World Bank Group works with developing countries to reduce
poverty and increase shared prosperity, while the International
Monetary Fund serves to stabilize the international monetary system
and acts as a monitor of the world’s currencies. The World Bank Group
provides financing, policy advice, and technical assistance to
governments, and also focuses on strengthening the private sector in
developing countries. The IMF keeps track of the economy globally and
in member countries, lends to countries with balance of payments
difficulties, and gives practical help to members. Countries must first
join the IMF to be eligible to join the World Bank Group; today, each
institution has 189 member countries.
THE EFFECTS OF ECONOMIC GLOBALIZATION ON DEVELOPING
COUNTRIES

01 Increased
Access to new
Widening disparity

02 03
standard o
markets in incomes

fliving.

Gives governments
Allow companies to to While it creates reduction
of developing
develop new in overall unemployment
nations access to
technologies and and poverty, It can also
foreign lending,
produce new products increase the wage gap
however not all
and services. between those who are
citizens will
educated and those who
participate in the
are not.
benefits.
 04 Decreased Automation in the manufacturing and agricultural
Employement sectors lessen the need for unskilled labor and
unemployment rises in this sectors.

Market Integration
A phenomenon in which markets of goods and services are somehow
related to one another being to experience similar patterns of increase or
decrease in terms of the prices of those products. Can also refer to a
situation in which the prices of related goods and services sold in defined
geographical location also begin to move in some sort of similar pattern to
one another. The European Union is a prominent example.
THE EUROPEAN INTEGRATION
An economic and political uniion between 27 European countries
(formerly 28 ) . It was created in the aftermath of the second world war.
The idea being that countries that trade with one another become
economically interdependent and so more likely to acoid conflict.

Every action taken by the EU is founded on treaties that have been

approved by all EU member countries.

 Enables most goods, services,

money and people to move freely.

Benefits of Euro:

1. People no longer need to change

money when traveling or doing

business within the euro area,

saving time and transaction

costs.

THE EUROPEAN

UNION FLAG
2. It costs much less or nothing at all to make cross border payments.
3. Consumers and businesses can compare prices more easily, which
encourages businesses charging higher prices to bring them down.

ASEAN INTEGRATION
on August 8 1967, Foreign minister of Indonesia, Malaysia, the

Philippines, Singapore and Thailand signed a document, The

Association of Southeast Asian Nations (ASEAN) in Bangkok,

Thailand. Today there are 10 member states : Brunei Darussalam,

Vietnam, Lao PDR, Myanmar, and, Cambodia.

ASEAN Economic Community (AEC)
AEC Blueprint 2025 aimed towards achieving the vision of having
1. A highly integrated and cohesive economy
2. A competitive, innovative and dynamic ASEAN
3. An enhanced connectivity and sectoral cooperation
4. A resilient, inclusive, and people oriented, people centered ASEAN
5. A global ASEAN.

originally built as a political alliance to limit the spread of

communism in Southeast Asia. Gradually became a diplomatic
organization to manage regional issues and expand trade.
References:

saylordotorg.github.io
www.worldbank.org