Contemporary World

John Ercel Lozada

Lesson – Week 3

Global Economy
Global economy refers to the interconnected network of economic activities,
transactions, and interdependence of various countries worldwide. It encompasses
exchanging goods and services, financial flows, and production processes spanning
multiple countries and continents. The global economy is influenced by various
factors such as trade agreements, currency exchange rates, and countries'
economic policies.
Market Integration
Market integration refers to the degree to which different markets are linked, allowing
for the free flow of goods, services, capital, and labor between them. Market
integration can occur at the regional, national, or global level and can result from the
removal of trade barriers, such as tariffs and quotas, and the harmonization of
policies, regulations, and institutions.
The benefits of market integration include increased competition, efficiency, and
economic growth, as well as greater choice and lower prices for consumers. Market
integration can also help to promote stability and reduce economic imbalances by
allowing resources to flow to where they are most needed.
However, market integration can also have negative consequences, such as
increased competition for some firms and workers, and the displacement of certain
industries and jobs. Market integration is therefore a complex and ongoing process
that requires careful consideration of the trade-offs and potential impacts on different
actors and regions.
Examples of Market Integration
The process of linking different markets through the removal of barriers to trade and
investment, allowing the free flow of goods, services, capital, and labor.
The degree to which different markets are connected and interdependent, allowing
for the exchange of goods, services, and financial assets.
A phenomenon in which regional or global economic systems become increasingly
interconnected, leading to greater trade and investment flows between countries.
The integration of national markets into a larger, regional or global market,
characterized by the free movement of goods, services, capital, and people.
The harmonization of policies, regulations, and institutions in different markets,
aimed at reducing barriers to trade and investment and increasing economic
integration.
The Global Interstate System
The Global Interstate System refers to the network of formal and informal
relationships, institutions, and agreements between countries that facilitate the flow
of goods, services, capital, and people across national borders. This system

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Contemporary World
John Ercel Lozada
Lesson – Week 3

encompasses various trade agreements, international organizations, and financial

institutions that play a role in shaping the global economy.

The Global Interstate System also includes the transportation infrastructure, such as
ports, airports, roads, and shipping lanes, that connect countries and enable the
movement of goods and people. The system operates through a complex set of rules
and institutions that regulate trade, investment, and financial flows, and provide a
framework for international economic cooperation.
Examples of The Global Interstate System
World Trade Organization (WTO): The WTO is an international organization that sets
the rules for global trade, resolves disputes between countries, and provides a forum
for negotiating trade agreements.
International Monetary Fund (IMF): The IMF is an international organization that
provides financial assistance to countries and promotes international economic
cooperation.
World Bank Group: This group of international financial institutions provides loans,
technical assistance, and policy advice to developing countries to promote economic
growth and reduce poverty.
North American Free Trade Agreement (NAFTA): NAFTA is a trade agreement
between the US, Canada, and Mexico that has reduced trade barriers and increased
economic integration between the three countries.
European Union (EU): The EU is a political and economic union of 27 European
countries that operates as a single market, with the free movement of goods,
services, capital, and people among its member states
African Continental Free Trade Area (AfCFTA): The AfCFTA aims to create a single
market for goods and services across the African continent, with the goal of
increasing trade and economic integration among African countries.
Contemporary Global Governance
Contemporary Global Governance refers to the system of rules, institutions, and
processes that regulate the interactions and relationships between states and other
actors in the international system. It encompasses a wide range of issues, including
economic, social, environmental, and security matters, and is aimed at promoting
cooperation and addressing global challenges.
Contemporary Global Governance is characterized by a complex web of formal and
informal institutions, including international organizations, treaties, and agreements,
as well as non-state actors, such as civil society organizations and corporations. The
governance system operates through a mix of top-down approaches, such as
intergovernmental agreements, and bottom-up approaches, such as civil society
activism and social movements.

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Contemporary World
John Ercel Lozada
Lesson – Week 3

The goal of contemporary global governance is to promote peace, stability, and

prosperity in the world, and to address transnational issues that require collective
action, such as climate change, poverty, and the spread of disease. The system is
constantly evolving, as new challenges arise and existing institutions are adapted or
replaced to better meet the needs of the global community.
Examples of Contemporary Global Governance
United Nations (UN): The UN is an intergovernmental organization that aims to
promote peace, security, and cooperation among nations, and to address global
challenges such as poverty, climate change, and human rights.
World Trade Organization (WTO): The WTO sets the rules for global trade, resolves
disputes between countries, and provides a forum for negotiating trade agreements.
International Monetary Fund (IMF): The IMF provides financial assistance to
countries, promotes economic stability and growth, and helps to prevent and resolve
financial crises.
World Bank Group: This group of international financial institutions provides loans,
technical assistance, and policy advice to developing countries to promote economic
growth and reduce poverty.
Paris Agreement on Climate Change: This international agreement aims to limit
global temperature rise and address the impacts of climate change, through the
reduction of greenhouse gas emissions and the mobilization of financial resources.
Global Health Initiatives: There are a number of global health initiatives, such as the
World Health Organization (WHO) and the Global Fund to Fight AIDS, Tuberculosis
and Malaria, that aim to address public health challenges and improve health
outcomes in developing countries.
International Criminal Court (ICC): The ICC is an international tribunal that
investigates and prosecutes individuals for the most serious crimes of international
concern, such as genocide, war crimes, and crimes against humanity.
References:
Council, SBE. “Strong Support for Free Trade Among Economists ... And the
American Public - Small Business and Entrepreneurship Council.” Small Business &
Entrepreneurship Council, 28 Aug. 2019.
https://legal.un.org/icc/statute/iccq%26a.htm. legal.un.org/icc/statute/iccq%26a.htm.
Accessed 29 Jan. 2023.
Pharmaceutical Companies Intellectual Property and the Global Aids Epidemic.
Pharmaceutical Companies.
Taff, Steven, et al. “The Accountability-Well-Being-Ethics Framework: A New
Philosophical Foundation for Occupational Therapy Le Cadre Accountability-Well-
Being-Ethics : Un Nouveau Fondement Philosophique Pour l’ergothérapie.” The

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John Ercel Lozada
Lesson – Week 3

Canadian Journal of Occupational Therapy, vol. 81, no. 5, SAGE PUBLICATIONS,

INC., Dec. 2014, p. 320.

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