THE CONTEMPORARY WORLD

ROOM 4

MEMBERS
Robles, Patricia
Romero, Nathale
Sanvictores, Stefani
Sayana, Rosalie
Silmar, Jasmine
Soriano, John
Trinidad, Emman
Valdez, Aaron
What is economic globalization?

Economic globalization is a historical event that has resulted from human

creativity and technical progress. It refers to the growing globalization of economies,
particularly through the cross-border movement of goods, services, and capital. The
phrase also relates to the merge flows of people (labor) and knowledge (technology).
This is a process that occurs during expansion and results in significant changes on the
global scale. It is focused on trade, investment, financial capital, labor division, and
specialization. Individuals, society, and the state are all affected by the idea, which is not
restricted to economic elements. Developing countries experience slowdown as a result
of their failure to deal with globalization, which is compounded by bad financial market
management, resulting in a growing of the income gap. With some changes to authority,
economic globalization brings the mobilization of products and capital, minimizes the
space between boundaries, and empowers global trade.

-Robles, Patricia

Is economic globalization a new phenomenon?

Globalization is generally seen as a new phenomenon, but contact between

different individuals is not new. The pre-modern period saw technological advances that
allowed trade and communication to flourish. The modern period has seen
industrialization deliver major advances in technology at the expense of the
environment.

-Trinidad, Emman

What are the differences and similarities between convergence and divergence?

The difference between convergence and divergence is that convergence is the

act of two or more different entities merging or combining into one and the divergence
is when a part singular entity separates. The similarities between either one is that
converging and diverging happens because they desire to prosper, an example for the
convergence is the coming together of the brands Adidas and Reebok, Adidas owns
Reebok making their production, distribution and gathering of raw materials easier and
Adidas prospers from this because they gets less competitors and gains from the sales of
Reebok as well. An example for divergence is that of Jordan and Nike, Jordan brand
started from Nike but prospered into a brand which can stand on its own so it diverged
 from Nike, both brands gains from these because Jordan shoes doesn’t have to give Nike
a cut on sales anymore and Nike gains from this because Jordan gets their material s
from Nike and they’re synonymous to each other so when one of these shoe brands
surges the other is taken with it.

-Valdez, Aaron

What does International Monetary Systems do?

-Silmar, Jasmine

What is The Gold Standard?

Gold Standard was believed to guarantee a non-inflationary, stable economic

environment, a means for accelerating international trade. In simplest terms, the gold
standard is a monetary system that ties a currency’s value directly with gold. Therefore,
the currency can be exchanged for a set amount of gold and is guaranteed by the
government.

-Sanvictores, Steffani

What are the roles of The Bretton Woods System and Its Dissolution?

The Bretton Woods System started in Bretton Woods, Hampshire (US) in July
1994. Forty-four delegates in different countries are involved in this peg system. The peg
system is about beggar-thy-neighbor on the post-war era, and wished to return the
peace and prosperity. This system has allied nations that negotiate about monetary and
finance. The peg system is also about the gold-exchange system, where US is being
responsible of selling and purchasing of gold’s worth 35 US dollars per ounce, without
restrictions. US dollars are the only available currency to convert. Some unconvertible
currencies showed as a fixed amount to change into US dollars too.

There are two international institutions have made by the Bretton Woods
system. First, a British economist John Maynard Reyness thought an ambitious way like
a Global Bank, which is the International Banks for Reconstruction and Development
(IBRD), and also having accounts called ''bancor''. Second, US have its own plan,
 International Monetary Fund (IMF); and British having a Global Bank that serves as a
serious blow to national sovereignty. These two have approved by delegants. IMF have
a purpose to support financial assistance, in the gold-exchange system.

The Bretton Woods System needs to have dissolution as it had an effect.

Persistent deficit or surpluses because Bretton Woods system didn't prevent the large
amounts of deficits in some industrialized countries. There is also inflation happened,
destablishing speculation, and devaluation that forced US to abandon the exchange-gold
system. There is also a disaster appreciation on Japan's Yen as a partial consequence in
their economy. There are also liberalized capital transactions, unregulated and free flow
of capital, and also failed development performance that made economize highly
vulnerable. Its peg system need to be dissolve, to prevent the resulted financial crisis.

-Soriano, John Mardy

What does European Monetary Integration do?

After World War II as a way to counteract USSR’s push for communism the
United States implemented its post-war reconstruction program and established
Organization for Economic Cooperation and Development (OECD). Alongside the growth
of Europe the signing of Rome Treaty in 1957, the European Economic Community (EEC)
was established with its six founding members Germany, France, Italy, Netherlands,
Belgium and Luxembourg. They aimed to a common market where goods, capital,
service and labor can move freely, other than the common market they did not plan for
any direct cooperation but the collapse of Bretton Woods System made the states
decide to implement a regional monetary regime, the European Monetary System (EMS)
it’s a unique system in which US dollars and gold could not shift its exchange rate.

-Valdez, Aaron

What are International Trade and Trade Policies?

International trade is the exchange of capital, products, and services worldwide

or in territories where there is a need or want for goods and services that can be
provided. Global trade exposes consumers and countries to goods and services that are
not attainable and are much more expensive in their homelands. The market is more
competitive as a result of international commerce. As a result, pricing is becoming more
 and more competitive, and consumers receive a lower-cost product. Trade policy
describes the standards, purposes, rules, and regulations governing international
commercial relations. Their goal is to increase the country's foreign trade. Import and
export taxes, inspection restrictions, and tariffs and quotas are all part of a country's
trade policy. International trade may cause conflict within and between nations. Profits
from intra-country trade influence the relative well-being of its inhabitants, particularly
producers and consumers, who either favor or oppose trade.  - if the global economy
favors core nations at the expense of the periphery, these should adopt protection
measures in its most severe form of de-linking. There will be a complete severing of
connections between subservient emerging economies and their core markets.
According to Amin (1993) The Samuelson theory states that international trade enriches
the locally plentiful element of production (land, labor, or capital) while weakening the
scarcity factor. Rogowski (1990) shows how the owners of locally plentiful factors of
production enhance their political power and influence.

- Romero, Nathale

What is Unilateral Trade Order?

A unilateral trade agreement is a commerce treaty that a nation imposes without

regard to others. It benefits that one country only. It is unilateral because other
nations have no choice in the matter. It is not open to negotiation. The World Trade
Organization defines a unilateral trade preference similarly.1  It occurs when one nation
adopts a trade policy that isn't reciprocated. For example, it happens when a country
imposes a trade restriction, such as a tariff, on all imports. It also applies to a state that
lifts a tariff on its partner's imports even that's not reciprocated. A large country might
do that to help out a small one. 

A unilateral agreement is one type of free trade agreement. Another type is

a bilateral agreement between two countries. It is the most common because it's easy
to negotiate. The third type is a multilateral agreement. It's the most powerful but takes
a long time to negotiate.

Some conservatives define unilateral trade policies as the absence of any trade

agreement whatsoever.2  In that definition, the United States would lift all tariffs,
regulations, and other restrictions on trade. It's unilateral because it doesn't require
other nations to do the same. The argument is that the government should not restrict
the rights of its citizens to trade anywhere in the world.

In that scenario, other countries would keep their tariffs on U.S. exports. That
would give them a unilateral advantage. They could ship cheap goods into the United
States, but U.S. exports would be priced higher in their countries. Emerging
market nations are afraid of any trade agreements with developed nations. They worry
that the imbalance of power would create a unilateral benefit to the developed

-Sayana, Rosalie