▪ Definition of

Globalization
▪ Diff. Approaches
and Perspectives
▪ Brief History of
Globalization
▪ The Concept Map
of Globalization
 ECOLOGICAL CONCEPT MAP OF
GLOBALIZATION
GLOBALIZATION
ECONOMIC
GLOBALIZATION COMMUNICATION
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TECHNOLOGICAL GLOBALIZATION
GLOBALIZATION

•Financial
SOCIOLOGICAL
GLOBALIZATION GEOGRAPHIC
GLOBALIZATION

Technology Today POLITICAL

GLOBALIZATION

• How financial technology progressed through the years CULTURAL

INDUSTRIAL
GLOBALIZATION GLOBALIZATION
 CO NO. 2:
Describe the emergence of global, economic,
political, social, and cultural systems.

LO No. 2.1:
Week 2 Differentiate economic globalization from
2 Global
Thess.
Chapter 2 global trade.
Economy
It refers to the global mobility
of people, capital, technology,
goods and ser vices.

Development of trade systems with

transnational actors; establishment of
common global market to perpetuate
exchange; transfer of goods and capital.
It is the increasing
interdependence of world
economies as a result of the
growing scale of cross-border
trade of goods and services, flow
of international capital and wide
and rapid spread of technologies.
 “It refers to how
interdependent we
have all become,
specifically,
countries, regions,
and trading blocks.”
 Countries today depend
on each other. We
depend on each other for
raw materials, vehicle
parts, food, and
thousands of other items.
Economic globalization has two
dimensions: actual economic flows
and restrictions to trade and capital.

1. ACTUAL ECONOMIC FLOWS

▪ Data on trade
▪ FDI (Foreign Direct Investment)
▪ Portfolio investment.
https://www.youtube.com/watch?v=iPeB1koThD0
1. ACTUAL ECONOMIC FLOWS

2. RESTRICTIONS TO TRADE AND CAPITAL

▪ Hidden import barriers
▪ Mean tariff rates
▪ Taxes on international trade
(current revenue share)
▪ Index of capital controls
GLOBAL ECONOMIC OUTLOOK FOR 2022

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 Economies
Associated to
Economic
Globalization

Trade Liberalization and

Trade Protectionism are
economies associated to
economic globalization.
Trade Liberalization is the removal or reduction of restrictions or
barriers on the free exchange of goods between nations and easing
or eradication of these restrictions as steps to promote free trade.
 Trade Protectionism is an economic policy of protecting
domestic industries against foreign competition by means of
tariffs, subsidies, import quotas, or other restrictions or
handicaps placed on the imports of foreign competitors.
International trade involves
economic transactions that are
made between countries. Among
the items commonly traded are
consumer goods, capital goods, and
raw materials and food. Other
transactions involve services.
INTERNATIONAL TRADE

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 NEs believe that it is more
To trade or advantageous to trade with other
not to trade? members of one’s nation or ethnic
group than with outsiders.
Export vs. NEs believe that exports are better
Import than imports for the economy.
NEs believe that a country’s
Balance of
balance of trade is governed by the
Trade (BOT)
“competitiveness” of its wage
rates, tariffs, and other factors.
Es see all forms of trade as equally
advantageous
Es believe that all trade is good for
the economy.
Es believe that the balance of trade is
governed by many factors, including
the above, but also including
differences in national saving and
investment.
*Balance of trade (BOT) is the difference
between the value of a country's exports and
the value of a country's imports for a given
period. Balance of trade is the largest
component of a country's balance of payments
(BOP).
Balance of Trade formula:
Country's Exports – Country's Imports.
▪ USA imported $1.8 trillion in 2016 but
exported $1.2 trillion
▪ the USA had a trade balance of -$600
billion, or a $600 billion trade deficit.
International
International finance
(international macroeconomics)
is the study of monetary
interactions between two or
more countries, focusing on
areas such as foreign direct
investment and currency
exchange rates.
An important tool to find the exchange
rates, compare inflation rates, get an
idea about investing in international
debt securities, ascertain the
economic status of other countries
and judge the foreign markets.

✓ Capital ▪ Asian Development Bank

✓ Currency ▪ World Bank
✓ Financial Policy ▪ African Development Bank
▪ Inter-American Development Bank
✓ Global Financial
▪ International Financial
Institutions Institutions
GLOBAL Global investing enables the access to
investment opportunities that are not
present domestically.

Can generate the following:

▪ Capital and revenue

▪ Jobs
▪ Knowledge
▪ Innovation
▪ Technology
▪ Sustainable growth
International investment is
a strategy of selecting the
global-based investment options
for your portfolio crucial to
realizing the intertwined goals of
sustainable development and
corporate growth.
 OF A GLOBAL ECONOMY

FREE TRADE

MOVEMENT OF LABOR

INCREASED ECONOMIES
OF SCALE

INCREASED INVESTMENT
Other ➢ Increases economic growth,
innovation and technology.
➢ Makes production more affordable
or lower cost price.
➢ Promotes working together or
interdependence.
➢ Brings opportunities to poorer
countries by accessing to foreign
markets.
 LO No. 2.1: Differentiate economic
globalization from global trade.

Economic
Globalization Global Trade
I t r e f e r s t o t h e g l o b a l m o b i l i t y o f p e o p l e , c a p i t a l , t e c h n o l o g y, g o o d s a n d s e r v i c e s .
▪ It refers to the global ▪ International trade
mobility of people, involves economic
capital, technology, transactions that are
Week 2 goods and services. made between
2 Global
Thess. ▪ Development of trade countries, i.e., the
Chapter
Economy 2 systems with exports and imports.
transnational actors.
Capitalism is an economic
system based on the market
forces of supply and demand,
private ownership and
minimal state intervention.
Capitalism An economic
system characterized by
private ownership in which
the free market alone
controls the production of
goods and services.
Socialism is an economic system
based upon public ownership and
a planned economy.
Socialism entails common ownership ensures that the needs of the
many overrides those of the few - the public sector can allocate
scarce resources on a much more equitable manner than that of
the marketplace.
The distinction between private property and public
ownership is relatively straight-forward.

▪ Private property simply entails

ownership of property by
individuals and companies.
This is the fundamental basis of
capitalism.
▪ Public ownership however occurs
when an organization is run by
the government for the benefit of
all members of society.
 Communism is a
political and
economic ideology
that positions itself in
opposition to liberal
democracy and
capitalism,
advocating instead
for a classless
system in which the
means of production
are owned
communally and
private property is
nonexistent or
severely curtailed.
REFERENCES
Aldama, P.K.R. (2018). The Contemporary World. Manila: Rex Book Store

Kling, A. (2004). Learning Economics. Econlib. https://www.econlib.org/library

Lisandro, C. and Abinales, P.(2018). The Contemporary World. Quezon City: C & E Publishing, Inc.

OECD (2021). Focus on the global economy. https://www.oecd.org

Petchko, K. (2018). How to Write About Economics and Public Policy. Science Direct, pp 181-206.
https://doi.org/10.1016/B978-0-12-813010-0.00010-7

The Global Economy (2021). Business and economic data for 200 countries.
https://www.theglobaleconomy.com/rankings/Economic_growth/

Tucker, I. (2019). Macroeconomics for Today. Boston: Cengage Learning, Inc.

https://www.weforum.org/agenda/2022/01/global-economic-outlook-5-charts-world-bank/
God Bless