Contemporary World
these aspects between nation, regions,
Contemporary
- Means today’s event
World
- Means where people live
Contemporary World
- Introduces students by examining
multifaceted phenom of globalization.
- Examines the economic, social, political,
and technological.
- Provides an overview debates:
A. Global Governance
B. Development
C. Sustainability
- Circumstances & ideas of the present
age. In modern times like these.
- Using the various disciplines of the
social sciences, it examines the
economic, social, political, technological,
and other transformations that have
created an increasing awareness of the
interconnectedness of peoples and
places around the globe.
- 195 countries and 7.6 billion people and
counting.
Structures of Globalizations
1. Economic Globalization\
- Increasing economic interdependence of
national economies across the world.
- Rapid increase in cross-border
movement.
2. Political Globalization
- On how to establish relationship to other
country.
- Refers to increasing trend toward
multilaterism.
3. Cultural Globalization
- “Way of Life/Living”
- Can be diverse/sity
- Interaction of cultures around the world
that are becoming more and more
similar.
Globalization
- According to sociologists, an on-going
process involves interconnected
changes in economic, cultural, social,
and political spheres of the society.
- Involves even-increasing integration of
communities, and isolated places.
Global Interdependence
- Human interactions and relationship
transcend national boarders & in which
social problems within any one country &
such as unemployment, drug addiction,
water shortages, etc. are shaped by
Special Forces & events taking place
outside the country.
Advantages of Globalization
1. Greater Understanding and Knowledge
of many countries culture.
2. Investment into developing country’s
economy.
3. Greater range and access to diff.
products.
4. Increased production of company due to
great demands.
5. Larger market Range
6. Job Creation
7. Greater innovation &development
products & technology
8. Cheaper products
Disadvantages of Globalization
1. Outsourcing of Services to other
countries.
2. Possible increase in unemployment.
3. Closure of small businesses. 4.
Degradation of Environment.
5. Conflict between & among countries.
GLOBAL ECONOMY
-The world economy or global economy is
the economy of the world, considered as the
international exchange of goods and
services that is expressed in monetary units
of account.
Economy
- The wealth and resources of a country
or region, esp. in terms of the production
and consumption of good and services.
Economies
- ACCORDING TO Wallenius Wilhelmsen
ASA. US ECONOMY ACCELERATE
FURTHER.
-
 - US economy accelerated strongly and The World’s top 10 Economies
posted GDP growth of 2.3 percent in
2017, well above the 1.5% a year prior. 1. U.S.A
Barring major additional policy changes, - $19.42 trillion
the World Bank sees momentum - - 25% of the gross world product
carrying into this year and lifting the US 2. China
another 2.5 percent in 2018 - Economic growth with 10% annual
increase
- AND US HAS BEEN THE WORLDS 3. Japan
BIGGEST ECONOMY SINCE 1871. - $4.8 trillion
4. Germany
- Exports of machineries
Philippine Economy
5. United Kingdom
- ACCORING TO THE STUDY OF - $2.5 Trillion 6. India
FOCUSECONOMICS - $2.45 trillion
- 7. France
- PH. The economy is expected to grow at - $2.42 trillion
a brisk pace this year and next on the 8. Brazil
back of elevated public spending and - $2.14 Trillion
fixed investment. Fiscal stimulus, 9. Italy
however, is causing economic - $1.81 Trillion
imbalances to build up and stoking fears 10. Canada
that the economy might overheat. Focus - $1.6 Trillion
Economics panelists see GDP growth of
6.7% in 2018, unchanged from last Advantages of Global Economy
month’s forecast, and 6.6% in 2019.
- International trade
- Capital flow
- Foreign direct investment
Import Disadvantages of Global Economy
- Bring (goods or services) into a country - Human Costs
from abroad for sale - Insecurity
Export - Violence

- Send (goods or services) to another ASEAN Economic Community (AEC)

country for sale - Consists of 10 countries
Crude Oil - Founded on Aug 8, 1967
- With 5 official members:
- Most imported product - $87.5 billion a Indonesia, Malaysia, Philippines,
year. Singapore, Thailand -
Next is:
Electrical Machinery Cambodia, Lao, Myanmar, Vietnam,
- Most imported product in PH. Brunei Darussalam.

Mangoes

- Most exported product in Japan, Korea,

Singapore, and USA. ASEAN Single Window
GDP - Allows trades to submit trade related
documents in one place through
- Gross Domestic Product is the monetary electronic exchange among ASEAN
value of all the finished goods and countries.
services produced within a country’s
borders in a specific time period.
- It’s significance is it measures a
country’s income
ASEAN Self Certification System by food retailers and the setting up of
another plant by a milk or processor.
- Allows exports to declare and self-certify
the ASEAN product content in their Types of Market Integration
products.
1. Horizontal Integration
Benefits - Where marketing agencies combine to
form a union to reduce their effective
- Better investments number and the extent of actual
- Implementation of trade, services, competition in the market.
investments - Improving country’s
location - Advantages
- Make ASEAN region more competitive
• Lower Costs
AEC Agreements • Higher Efficiency
• Increased Market Power
- ASEAN Trade In Goods agreements • Reduced Competition
(ATIGA) • Access to New Markets
- Common Effective Preferential tariff
(Cept) - Disadvantages:
- ASEAN Framework Agreement on • Destroyed Value
Services (AFAS) • Reduced Flexibility
- ASEAN Comprehensive Investment
Agreement (ACIA) 2. Vertical Integration
Agreement aims to - Occurs when a firms performs more
than one activity in the sequence of the
1. Facilitate the movements of good, marketing process.
services, investments, capital, skills
2. Increase trade and investments among
member states.
3. Promote and expand regional production
sharing and networking.
4. Promote higher level of transparency
and predictability

World Trade Organization (WTO)

- 3 common goals
- Achieving higher living standards, full
employment, and sustainable
development.
- Open economies tend to grow faster and
more steadily
- Jobs that are tied to trend tend to pay
better. - Advantages:
• Allows you to invest in assets
that are highly specialized
MARKET INTEGRATION
• Gives you more control of your
- Occurs when prices among diff locations Business
or related goods follow similar patterns • Requires lower cost of
over a long period of time. transactions
- Groups of prices often move • Provides more competitive
proportionally to each other and when is advantages
very clear among different markets. • Ensures a high level of certainty
- Refers to the expansion of firms by when it comes to equality.
consolidating additional marketing
functions and activities under single
management. -Disadvantages:
- Examples of these are the • It can bring more difficulties
establishments of wholesaling facilities
 • Requires huge amount of
money
• Creates barriers to market entry
• Decrease in flexibility
2 types of Vertical Integration
1. Forward Integration
- This happens when a firm assumes
another function of marketing which is
closer to the consumption function.
- Developing into activities concerned with
the inputs in the company’s current
business
2. Backward Integration
- Involves ownership or combination of
sources of supply.
- Development into activities concerned
with the outputs in the company’s
current business.
Conglomeration
- Combination of agencies or activities not
directly related to each other may
operate under a unified management. -
Eg. Ayala Buildings.
-Advantages:
• Can reduce investment risk
• Increases customer base of the
company
-Disadvantages:
• Management costs increases due to
size of the group.
• Taxation of group structure reduces
the taxation benefits.
Degree of Integration
1. Ownership Integration
- Decision and assets are assured by
another firm.
2. Contract Integration
- Agreement on both firms on certain
decisions while having separate identity.
GLOBAL INTERESTATE SYSTEM
Global
- Pertaining to the entire globe rather than
a specific region or country. Often used
interchangeably with the term
international, with one exception being in
regards to mutual funds among the
countries.
Interstate
- It is between the two or more states;
between places or persons among the
different states. Concerning or affecting
two or more states politically or
territorially.
System
- A regularly interacting group or
interdependent group of items forming a
unified whole.
The Modern World System
• Followed the crisis of the feudal
system in Europe and helps explain
the rise of Western Europe to world
supremacy between 1450 to 1670
• World economic system emerged
• Now a global economy with a global
political system (the modern
interstate system)
• Structured politically as interstate
system – a system of competing
and allying states
• A single global economy composed
of international trade and capital
flows, transnational corporations
that produce products on several
continents, as well as all the
economic transactions that occur
within countries and at local levels.
• Rise and fall of hegemonic powers
 the globalization namely: institutions that
govern international relations, World
Bank group, specialized agencies, and
specialized international institutions.

World Bank Group

1. International Bank Reconstruction &

Development (IBRD) : offer loans to
middles class countries and improve
their economy.

2. International Development
Association (IDA): provide loans and
grant programs that boost economic
growth.

Global Interstate System 3. International Finance Corporation

- It is a network wherein they have the
control in high speed highways which
has the authority in the national
highways in USA. It was opened for the
public to cross and deliver goods easily
to other people as well to different
nations.
- It is also a structure of globalization
wherein there are many organizations
involve, they are the ones that complete
(IFC): provide loans for private sectors in
developing countries.
4. Multilateral Investment Guarantee
Agency (MIGA): to promote foreign
direct investment in developing
countries.
5. International Centre for Settlement of
Investments Disputes (ICSID): forum
for investors in most of international
investments.

State
- Community of persons more or less
numerous, occupying a definite portion
of a territory, independent form external
control and possessing a government
to
which the great body of inhabitants
render habitual obedience

Elements of State

1. People
2. Territory
3. Sovereignty
4. Government

Global Economy
- Refers to the increasing integration of
economies around the world particularly
the movement of goods, services, and
capital across borders.
Macroeconomics
6. International Monetary Fund (IMF):
ensure the stability of international
monetary system.
WHO – World Health Org.
ILO - International Labor Org.
FAO – Food and Agriculture Org.
UNESCO – United Nations Educational,
Scientific, and Cultural Org.
- The study of the behavior and decisions
of entire economies.
Globalization
- A modern term used to describe the
changes in societies and the world
economy that result from dramatically
increased international trade and cultural
exchange.
The Phenomenon can Thus Several
Interconnected Dimension
A. The Globalization of Trade of Goods and
Services
B. The Globalization of Finance and Capital
Market
C. The Globalization of Technology and
Communication
D. The Globalization of Industry
Why do Nations Trade?
- They are diff. from each other.
- To achieve economies of scale in
production.
Drivers of Globalization
- The declined in barriers to the free flow
of goods services and capital that has
since the end of the WW2.
- The technological chance, particularly
the dramatic development in recent
years in communication, information
processing and transpo technologies.
The Globalization Market
- Merging of historically distinct and
separate national markets into one huge
global market place.
Trade Barriers
- Preventing a foreign product from freely
entering into a nation’s territory.
Types of Trade barriers
1. Import Quota
2. Voluntary Export Restraint
3. Tariff
4. Informal Barriers
5. Government Licensing Restrictions
6. Government Health and Safety
 Requirements - Est. 1944 in Washington, D.C - 3 Pillars
of World Bank:  Results
Protectionism • Reform
- The use of trade barriers to protect • Resources
industries from foreign competition. International Monetary Fund
- Started in 1944 in Bretton Woods
International Agreements Conference
1. World Trade Org. (1995) - Foster global monetary cooperation, etc.
- Dealing with global rules of trade - Creates structural adjustment programs
between nations. in less developing countries.
- Ensures trade flows as smoothly, World Trade Org.
predictability, and freely as possible. - Dealing with rules of trade bet. nations
2. European Union (1951/1999) - Est. Jan 1, 1995 Geneva, Switzerland -
- Regional Economic agreement among 153 countries - Functions:
27 countries across the European • Administering WTO Trade
continent. agreements
3. NAFTA (1994) • Forum for trade Negotiations
- Removed most barriers to trade and • Handling trade disputes
investment among the U.S.A, Canada, • Monitoring national trade
and Mexico. policies
- All the non-tariff were eliminated. • Technical assistance and
training for developing countries
Development • Cooperation with other
- A nation improves the economic, international org
political, and social wellbeing of its
people.
WORLD OF REGIONS: GLOBAL DIVIDES –
THE NORTH AND SOUTH
Indicator of Development
1. Per Capita GDP Global North
2. Energy Consumption - Include the U.S.A, Canada, Europe,,
3. Labor Force developed parts of Asia, as well as
4. Literacy Australia and New Zealand.
5. Infant Morality - Defined as the richer, more developed
6. Life Expectancy region.
7. Consumer Goods - 95% of the North has enough food and
Issues in Development shelter
1. Rapid population growth Global South
2. Resource distribution - Is made up of Africa, Latin America, and
3. Lack of Physical Capital developing Asia including the Middle
4. Lack of Human Capital East.
• Health/Nutrition - South largely corresponds with the 3rd
• Education/Training World.
• “Brain Drain”
5. Political Factors GLOBAL INTERSTATE SYSTEM
• Shifting from Colonial
Dependency What is GLOBALIZATION?
• Government Corruption - An ongoing process of integration
• Political Instability (civil wars, between different nations to encourage
social unrest, lack of the flow of goods, services, capital and
government infrastructures) 6. labor.
Debt
World Bank Global Interstate System
- Vital source of financial and technical - Refers to a controlled access for national
assistance to developing countries - relations. It is the study of
Made up of 186 member countries interconnected of social, politics,
- Provide low interest loans economics, and low on a global level.
The Union of International Associations (UIA)
- A research institute and documentation
centre, based in Brussels, was founded
over 100 years ago, in 1907 by Henri La
Fontaine and Paul Ollet, a founding
father of what is now called Information
Science.
- Non-profit, apolitical, independent, and
non-governmental in nature, the UIA has
been a pioneer in the research,
monitoring, and provisions of info. On
International Org., International
associations, and their global challenges
since 1907.
- The UIA has consultative status with
ECOSOC and associate status with
UNESCO.
UNESCO
- Intergovernmental org. tasked to
promote international co-operation and
create and maintain international order.
- Objectives include maintain international
peace and security, promoting human
rights, fostering social and economic
development, protecting the
environment, and providing humanitarian
aid in cases of famine, natural disaster,
and armed conflict.
- The UN is the largest, most familiar,
most internationally represented and
most powerful intergovernmental org. in
the world.
6 Main Organs of UN
1. General Assembly
- Main deliberative organ of the UN
comprised of all member states, each of
which has one vote.
- Its resolutions are only
recommendations to the Member States,
but as they represent the majority of the
world’s view they carry heavy moral
weight and often lead countries to join
international agreements called treaties.
2. Security Council
- Has primary responsibility under the UN
Charter to maintain international peace
and security. Unlike the Gen. Assembly,
the Security Council does not hold
regular meetings. It can be conveyed
anytime, whenever international peace is
threatened.
- Per Lasson Khrog (Jun 18 1889-Mar 3
1965) was a Norwegian artist. He is
most frequently associated with the
mural he created for the United Nations
Security Council Chamber, located in the
United Nations building in New York
City.
3. United Nations Economic and Social
Council (ECOSOC)
- ECOSOC brings people and issues
together to promote collective action for
a sustainable world
- At the centre of the UN development
system, we conduct cutting-edge
analysis, agree on global norms and
advocate for progress.
- Central body for coordinating the
economic and social work of the United
Nations and the UN System.
4. The Trusteeship Council
- The system was created at the end of
the
World War II to promote the
advancement of the inhabitants of those
dependent Territories and their
progressive development towards
selfgovernance or independence.
- Council is comprised of the permanent
members of the Security Council—
China, France, the Russian Federation,
the United Kingdom and the United
States.
- 11 trust territories Western Samoa
Tanganyika
Rwanda-Urundi
Cameroons under British administration
Cameroons under French administration
Togoland under British administration
Togoland under French administration
New Guinea
Nauru
Strategic Trust Territory/ Trust Territory
of the Pacific Islands Italian Somaliland
5. The International Court of Justice
- Is the UN’s main judicial organ, located
in The Hague, Netherlands. Established
in 1945, the ICJ, or “World Court”
assumed its functions in 1946. The
Court settles legal disputes only
between nations and not between
 individuals, in accordance with
international law.
6. The Secretariat
- The Secretariat is made up of an
international staff working at UN
Headquarters in New York, as well as
UN offices in Geneva, Vienna, Nairobi
and other locations.
Regional Commissions
- The Secretariat is made up of an
international staff working at UN
Headquarters in New York, as well as
UN offices in Geneva, Vienna, Nairobi
and other locations.
Regional Commissions
 ECA - Economic Commission for
Africa
 ECE - Economic Commission for
Europe
 ECLAC – Economic Commission
for Latin America and Caribbean
 ECSCAP - Economic and Social
Commission for Asia and the
Pacific
 ESCWA - Economic and Social
Commission for Western Asia
The Role of Regional Commission
- UN Implementation of the 2030 Agenda
for the Sustainable Development Goals
that have been made on September 27,
2015.
1. Integrating SDGs into national
development planning and fiscal
frameworks
2. Promoting policy coherence,
consistency and coordination
3. Enhancement of data and statistical
capacities of member states for
implementation of the 2030 Agenda
4. Identify and promote alternative and
innovative sources of financing for
development
5. Leverage science, technology and
innovation in support of Agenda
2030
6. Tapping South – South and regional
partnerships
7. Translating regional models into
public goods
Institutions Related to World Trade
1. World Bank - the international
financial institution that provides
loans to countries for capital projects
2. International Bank Reconstruction
and Development (IBRD) - offers
loans to middle-income countries to
develop and improve their economy
3. International Finance Corporation
(IFC)- providing loans for private
sectors in developing countries to
create markets that open up
opportunities for all.
4. Multilateral Investment Guarantee
Agency (MIGA) - to promote foreign
direct investment (FDI) into
developing countries to help support
economic growth, reduce poverty,
and improve people's live.
5. International Centre for
Settlement of Investment Disputes
(ICSID) - administered the majority
of all international investment cases.
It is the forum for investor in most of
international investment treaties and
in numerous investment laws and
contracts.
6. International Monetary Fund
(IMF) - ensure the stability of the
international monetary system. It does so in
three ways: keeping track of the global
economy and the economies of member
countries; lending to countries with balance
of payments difficulties; and giving practical
help to members.
7. World Trade Organization (WTO) -
regulates international trades, deals
with the rule of trade between nations,
 ensures the trade will flows smoothly, and Make researches in medicines and
predictably and freely as possible. vaccines to eliminate diseases, and
development of nutritious foods
8. Organization for Economic Responsible for World Health Report and
Cooperation and Development Survey
(OECD) - Providing a platform to
compare policy experiences,
seeking answers to common
problems, identify good practices
and coordinate domestic and
international policies of its members.

SPECIALIZED AGENCIES

1. International Labor Organization - a

United Nations agency dealing with labor
problems, particularly international labor
standards, social protection, and work
opportunities for all.

2. Food and Agriculture Organization of

the United Nations (FAO) –

- a specialized agency of the United

Nations that leads international efforts to
defeat hunger.

- Help eliminate hunger, food insecurity

and malnutrition, Reduce Rural Poverty,
Make agriculture, forestry and fisheries
more productive and sustainable

- Enable inclusive and efficient agricultural

and food systems increase the resilience
of livelihoods to threats and crises

3. United Nations Educational,

Scientific and Cultural Organization
- To contribute to peace and security by
promoting international collaboration through
educational, scientific, and cultural reforms
in order to increase universal respect for
justice, the rule of law, and human rights
along with fundamental freedom. Contribute
to build peace.

4. World Health Organization

Building a better, healthier future for people
all over the world, Concern about public
health , Prime concern is to eradicate and
combat dangerous diseases like AIDS/HIVS