 Economic union- single market integrates economic
UNIT II and political policy.
Global Economy- it involves money, labor, migration, and
everything linked to products and services.
Shangquan, (2000)- flow of international capital and
wide and rapid spread of technologies
Interconnected Dimensions of Economic
Globalization
1. Goods and Services- tangible objects that satisfy
people's wants
2. Capital- total assets a company needs to stay
solvent
3. Communication and Technology- Increased trade,
investment, and technology transfer allow global
integration.
4. Market Exchange- Price, supply, and demand
determine how commodities and services are
created, distributed, and exchanged.
Protectionism- tariffs, quotas, product standards, and
subsidies restrict international trade.
 Primary policy tools
a. Tariffs- importing nations pay money or goods for
the right to sell their products locally.
b. Import Quotas- It boosts local market production,
which may increase the amount of local items.
c. Product Standards- the restriction increases the
volume of local products.
d. Government Subsidies- is a benefit given by the
government to groups or individuals.
Trade Liberalization- removing or reducing the barriers
or restrictions in the exchange for goods between and
among nations.
* Consumer * Worker
* Companies * Countries
World System Theory- focuses on the importance of the
world as a unit, rather than looking at individual
countries.
Main Actors of Economic Globalization:
Multinational Companies, Consumer, States, Laborers
And Regulatory Institution
Economic Integration- aims to reduce consumer and
production costs while increasing cross-national trade
 Levels of Economic Integration
 Preferential trading area- allow member countries
to have access to some of their products
 Free trade- is a pact between two or more nations
to reduce barriers to imports and exports among
them.
 Custom union- a trade agreement removes trade
barriers and lowers or eliminates tariffs.
 Common market- member countries are able to
move their capital and services within their
organization
 Political union- integration in which member states'
sovereignty is limited by a common government's
norms.
UNIT III
 History of Global Market Integration
 Roman Period and Early Voyages
o Early 15th century
o Roman Empire
o voyages of: Vasco Da Gama, Columbus, Magellan
o Spain, Portugal, Britain, and Italy were global
powers at the time.
 Napoleonic Wars in 1815 and the Beginning of
World War 1
• The Suez Canal has reduced travel between
Europe and Asia.
o The core countries were the trading centers, while
the peripheral countries provided raw
commodities and labor.
o As trade monopolies were replaced by severe
competition, prices for spices, wheat, cotton, pig
iron, and jute converged globally.
o Technological advancement in this year
 Two world wars (I & II) and the Great Depression;
Post World Wars and Post Great depression
o Two world wars and the great depression
destroyed the early 19th century.
o The US, Western Europe, and Japan rebuilt the
economic system, including infrastructure,
international trade, and monetary policy.
 The Bretton Wood System
o The US, which held two-thirds of the world's gold
at the time, led the 1944 Bretton Woods
conference with 44 countries.
o Gold was $35 per ounce at the time.
 The International Monetary Fund (IMF) and the
World Bank
o established as part of the Bretton woods
agreement in 1945
o compromised of 189 member countries
o two institutions were founded to handle the
global economic crisis.
 World Bank
o two main goals of the world bank: (1) to end
extreme poverty. (2)increase overall prosperity.
o World bank has 4 other branches:
o International Bank for reconstruction and
development that provides debt financing to
government that is considered middle income.
 o International Development Association (IDA)
which gives interest-free loans to the government
of low-income countries.
o International Finance Corporations focuses on
private sectors and developing countries with
investment financing and financial advisory
services.
o Multilateral Investment Guarantee Agency that
promotes investment in developing countries
o International Centre for Settlement of
Investment disputes is an institution that
provides arbitration on international investment
disputes
 The General Agreement on Tariffs and Trade
(GATT)
o agreement was signed into law on January 1, 1948
o 23 member countries
o agreement was replaced by the world trade
organization in 1995.
 World Trade Organization
o 164 member countries
o It was born out of the General Agreement on
Tariffs and Trade (GATT), which was established
in 1947
 Market integration- when prices of linked
commodities or places follow similar trends across
time.
 2 Types of Market Integration
1. Negative integration- government plays a minor role
in policymaking regarding manufacturing,
distribution, and flow of goods.
2. Positive Integration- government may adjust
domestic policies and institutions through the
creation of supranational arrangements
 Degree of Economic Integration (Levels of
Economic integration)
a. Preferential Agreement- first stage, it lessens
tariffs and quotas among member countries
b. Free Trade Area- second stage of economic
integration, reducing trade barriers to zero.
c. Custom Union- a trade agreement removes trade
barriers and lowers or eliminates tariffs.
d. Common market- second to the highest degree
of integration
e. Economic Union- is considered to be the final
step in complete integration.
 International Financial Institution
o founded by groups of countries to promote public
and private investment.
o These Institution are the World Bank,
International Monetary Fund, World Trade
Organization
International/Regional Organization and Alliances
 Organization for Economic Co-operation and
Development (OECD)
o to build better policies for better lives.
o their goal is to shape policies that foster
prosperity, equality, opportunity and well-being for
all.
 The Organization of Petroleum Exporting Countries
(OPEC)
o created at the Baghdad Conference on
September 10–14, 1960.
o by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.
o established to monitor and stabilize the price of
OIL.
 Association of South East Nations (ASEAN)
o was formed in 1967 by Indonesia, Malaysia,
Philippines, Singapore, and Thailand
o the (3) three pillars; The Economic, Political-
Security, and Socio-Cultural Community.
 Asia Pacific Economic Cooperation (APEC):
o was established in 1989
o 21 member over the 4 continents
 European Union
o was able to deliver peace, prosperity, and stability
for more than fifty years
o the largest trade block in the world
o one of the leading exporters of products and
services and the biggest import market for 100
countries.
 North American Free Trade Agreement (NAFTA)
o was formed in 1994 by the Canada, Mexico and
America
o Mexico and Canada would decrease import/export
red tape.
Global Corporations- a large company that operates
in many different countries
 Types of Global Corporations:
o International Companies- operates primarily in a
single country but has some exposure to foreign
markets
o Multinational Companies- operate in more than
one country and earn significant revenue
elsewhere.
o Transnational Companies- largest multinational
companies with various sections that operate
independently in their markets.
o Global Companies- operate on a worldwide scale,
but it would not be tied legally to any nation.
Unit IV
Traditional Challenges
 External Intervention by other countries- wherein
Powerful Nations intervene with the issues and
affairs of other nations.
 Internal Political challenges- come from the
state’s own internal nonconformists.
 Regional Organization challenging state autonomy-
challenges coming from different International
Organizations
 Global Economics
o Worldwide economy's- it demands the states to
conform to the rules of free-market capitalism
o Journalist Thomas Friedman as "Golden
StraightJacket,"
o Economic Crises can force the government to
subscribe to the terms of the global financial
market in order to recover economic stability
 Global Social Movements
o movements of people that are spontaneous or that
emerge through large grassroots organizations.
o operate across the world and can be seen in
different nations.
o ex: Human Rights movement, Environmental
Movement, Women rights movement ect…
 International relations- political activities and other
kinds and aspects of interactions among states,
inter-governmental organization, non-government
organizations, and Multinational corporations.
Peace Treaties and Military Alliances
 United Nations (UN)
o was founded in 1995
o 193 member states with the republic of South
Sudan as its newest member
o has four (4) functions, which include military,
economic, environmental issues, and human
protection.
o ultimate goal is to maintain peace and order.
Social and Economic Growth
 Red Cross (Red Crescent in Muslim Countries)-
organized in 1863 to help those wounded by wars
 Doctors without Borders- Since 1971, they have
provided medical help worldwide.
 Oxford Committee for famine relief (Oxfam)-
fighting inequality to end poverty is a worldwide
movement. Independent non-governmental
organizations formed it in 1942.
 Save the Children- It was founded in 1919 by
Eglantyne Jebb and her sister Dorothy Buxton.
Alleviate hunger and starvation of children in
Germany during World War 1. Organization that
helps children across the world
 Amnesty International- was founded in 1961 by Peter
Benenson. Global movement that campaigns for the
human rights of everyone
 Global Economy
 North American Free Trade Agreement (NAFTA)-
was formed in 1994 by the Canada, Mexico and
America, Mexico and Canada would decrease
import/export red tape.
 World Trade Organization- 164 member countries
It was born out of the General Agreement on Tariffs
and Trade (GATT), which was established in 1947
 How Can We Contribute to the International
Relations?
o Awareness of Current Events
o Practicing our rights to suffrage
o Supporting Humanitarian Causes
o Being a responsible citizen who knows their duties
and responsibilities in society
Internationalism- part of a larger community that
helps to build each other economy and maintain
peace and order.
3 concepts of Internationalism
 Hegemonic internationalism
-based on unequal terms with the dominance of one
nation or nation-state over others.
-This case can be seen through the colonization of
-Britain over the other 70 nation-states for 200 years.
Revolutionary Internationalism- conflicts within
societies ascend due to international factors and
alliances.
Liberal Internationalism- the belief that certain goals
such as peace and prosperity can be attained through
cooperation and collaboration between and among
countries
 Globalism- defined as a state of the world involving
networks of interdependence at multicontinental
distances.
4 dimensions of Globalism by: Joseph Nye
Economic Globalism- it involves long-distance flows of
goods, services and capital and the information and
perceptions that accompany market exchange
Environmental globalism- long-distance transport of
materials that affect human health and well-being.
Military Globalism- it refers to long-distance networks
that use violence or the threat of force.
Social and Cultural globalism- ideas, information, images,
and people—who carry information and ideas.
Unit V
Global Governance- continuous process of balancing
different interests and initiating cooperative action
between different countries.
 Factors behind the Emergence of Global
Governance
o Permeability of nation-states to vast flows of
things- digital fraudulent activities are the results
of easy, fast, and difficult-to-control flow of digital
information through social media.
o Mass migration of people and the flow of criminal
elements- migration of people may result in some
forms of unlawful activities such as sex trafficking
and the pushing of illegal drugs
o Internal events or problems which nation-states
either instigate or are unable to control on their
own- One great example of this is the extrajudicial
killings in the Philippines. The drug policy of the
Philippine government or also known as the “war on
drugs”
o Global problems that a single nation-state is unable
to tackle on their own- global financial crisis is an
example of a problem wherein states do not have
the capacity to solve on their own.
 United Nation
o founded in 1945 after World War II
o 193 Member States
o It fosters cooperation among nation-states
o to address global problems
 Security Council
o responsibility for the maintenance of international
peace and security
o composed of 15 members
o the United States of America, Britain, Russia,
China, and France as permanent members and ten
other non-permanent members on a two-year
term.
 Economic and Social Council
o united Nations’ central platform for reflection,
debate, and innovative thinking on sustainable
development.
o principal body for coordination, policy review,
policy dialogue and recommendations on
economic, social, environmental such as IMF,
UNESCO, WHO
 Trusteeship Council
o suspended its operations after the last of the
trust territories attained independence in 1994.
o international supervision for eleven Trust
Territories to ensure that adequate steps were
taken to prepare the Territories for self-
government and interdependence
 International Court of Justice
o referred to as the World Court
o the principal judicial body of the United Nations
 Secretariat:
o It assists the other bodies and committees while
performing varied tasks
o Secretary-General is chief administrative officer
of the Organization, appointed by the General
Assembly on the recommendation of the Security
Council
Roles and Functions of the United Nations
1. Maintain International Peace and Security- working
to prevent conflict; helping parties in conflict make
peace; peacekeeping..
2. Protection of Human Rights- promotion and
protection of human rights is a key purpose and
guiding principle of the Organization.
3. Deliver Humanitarian Aid- to achieve international
co-operation in solving international problems of an
economic, social, cultural, or humanitarian character
4. Promote Sustainable Development- development
promotes prosperity and economic opportunity,
greater social well-being, and protection of the
environment.
5. Uphold International Law- Ever since, the
development of, and respect for international law
has been a key part of the work of the Organization
Nation- is a large group of people who inhabit a specific
territory and are connected by history, culture, or
another commonality.
Nation-State is a sovereign institution that governs
individuals sharing a collective history and culture within
a bounded territory.
UNIT VI
 What is Global North?
- First world countries
-comprised of countries which have developed
economies -account for over 90% of all manufacturing
industries in the world
 What is Global South?
-Third World Countries
-comprised of countries with developing economies
which were initially referred to as Third World countries
during the Cold War
Global Divides During The Cold War
 First World- capitalist and industrialized Western
countries.
 Second World- communist countries and their allies.
 Third World- least developed countries that were
formerly colonized. Third World which means
“underprivileged people”