Name: Lara Jeane P.

Losbañes
Course & Section: BSCE 1C
The Contemporary World

Activity 1.
Read the referenced article and complete the statements that follow.
Witkowska,J. (2016). Integration process in the global economy: Current state and prospects:
The cases of the European Union, ASEAN economic community, and NAFTA.
Comprehensive Economic Research 19(4), 47-65

The three (3) things that I significantly learned from the readings are…

1. The European Union (EU) is one of the three regional integration groups that has the
highest level of amalgamation, like the economic or monetary union. It has 28 member states
and is one of the three groups. As far as an economic union is concerned, the two-speed
integration had significant defeatist repercussions for the socioeconomic cohesion. In
addition, the EU's share of total global gross capital inflows in goods and services trade
decreased dramatically from 65 percent in 2005 to 22 percent in 2012.

2. The ASEAN Economic Community (AEC) is the transformation of ASEAN into a region
where skilled workers, investments, services, and capital can move freely. Its issue appears to
be associated with political inconsistencies in favor of escalating member state integration
and real economic difficulties in achieving higher levels of integration in a group of countries
that have undergone significant economic transformation.

3. The North American Free Trade Agreement, or NAFTA, is made up of two highly
developed states and one developing nation. As a result of the establishment of a large
number of Free Trade Areas (FTAs), its difficulties also stem from the uneven progress that
occurs among member states and the diminishing significance that member states place on
group unity. As part of the globalization process, the increasing openness of all of the
analyzed businesses appears to be a future feature of integration processes in the modern
intercontinental economy.

The three (3) things that are still unclear to me…

The first of the three things that I am still unsure about is the current state of the
global economy's integration process, which raises the following question: In this particular
area, what kind of turnaround in this phenomenon can be anticipated in the coming years, or
will the global economy diverge from previous trends? Second, about why the European
Union is the most advanced grouping of regional amalgamations in the global economy can
no longer be considered a "fortress Europe." Last but not least, with regard to the ASEAN
organization as a whole and the reasons why it relies more on external relationships than on
intra-ASEAN ones.
Activity 3
Make a research on the following topics which are associated with economic globalization. In 100-
250 words, write and submit an e-copy/hard copy of your output in a short size bond paper.

1.The International Trading Systems

2. The Bretton Woods Systems
3. Neoliberalism and Its Challenges
4. Compare and Contrast the assumptions of the original Bretton Woods System with those of the
Washington Consensus.
5. Capitalism

1. The exchange of goods and services between nations is known as international trade. A
system of rules, regulations, and agreements between nations engaged in international trade is
known as an international trading system. International trade is now possible thanks to
globalization. Through trade and cultural exchange, it is the process by which the world
comes to be connected to each other. Marketing products to people all over the world is
known as international marketing. The World Trade Organization, or WTO, is the world's
largest system of global trade. According to Landau (2005), the World Trade Organization
(WTO) is unquestionably one of our primary instruments of globalization. However, the
controversy that this organization has stoked is arguably primarily brought about by the
mystery that surrounds it. By clearly describing and explaining the procedures, conventions,
and rules that govern global trade, the International Trade System aims to clear up the
confusion that surrounds the multilateral commercial system. This book makes it easier to
understand the most recent developments in the international trade system. Academics and
students who are interested in international economics, finance, and business will find this to
be an impressive read.

2. The Bretton Woods System is a set of common policies and rules that made it possible to set
fixed exchange rates for international currencies. The guidelines that govern commercial and
financial interactions between the world's major industrial states were established by the
international monetary management. The Bretton Woods system was the first example of a
fully negotiated monetary order that was meant to control how independent nation-states
exchange money. An international monetary system was the Bretton Woods system. The
value of allied currencies was compared to the value of the US dollar. The price of gold
determined the US dollar's value. The Bretton Woods Agreement's goals were to maintain the
stability of exchange rates and regulate global payment and settlement after World War II.
The United Nations Monetary and Financial Conference was held on July 1, 1944, and 730
participants came from 44 nations. It was held in New Hampshire's Bretton Woods. The
World Bank and the International Monetary Fund (IMF) were established as a result of the
Bretton Woods Agreement.

3. Politics and economics are both incorporated into the policy model known as neoliberalism. It
seeks to shift economic factors under the control of the private sector and favors private
 enterprise. The effective operation of free market capitalism is the primary focus of many
neoliberal policies, which also place restrictions on government spending, regulation, and
ownership. Neoliberal policies typically advocate privatization, fiscal austerity, deregulation,
free trade, and a reduction in government spending. The economic policies of Margaret
Thatcher in the United Kingdom and Ronald Reagan in the United States are frequently
linked to neoliberalism. Neoliberalism is the subject of numerous criticisms, one of which is
that it may pose a threat to democracy, the rights of workers, and the self-determination rights
of sovereign nations. It has also been criticized for escalating economic inequality and giving
corporations too much power. However, neoliberal initiatives like tax cuts for capital gains
and income, deregulation of industries, and free trade all received support from both parties.

4. Both the Bretton Woods system and the Washington Consensus system promote economic
interdependence and prosperity among nations. According to the Bretton Woods system, an
economic crisis occurs when money is not spent on improving the economy, not when funds
are insufficient. whereas the consensus in Washington is that cutting back on government
spending will prevent the economic crisis because it will reduce government debt. Through a
strict exchange control system, the Bretton Woods system sought to guarantee international
financial stability. This allowed western economies to operate with low inflation and full
employment for the majority of its existence; however, if you traveled abroad, you were only
permitted a limited amount of spending money. People who were alive at the time and had
relatives in more than one country remember trying to sneak banknotes into their underwear.
The oil crisis in the early 1970s tore it apart. Since then, the Washington Consensus has
outlined the fundamental principles of international finance, including the absence of
exchange controls, a policy balance between unemployment and inflation, and a few other
general guidelines for operating such a system. Since the 1970s, the world has become so
accustomed to these that they have taken on the mental status of almost natural laws, as was
the case with the Bretton Woods and Gold Standard principles previously. The remarkable
aspect of the Washington Consensus system is that, despite the fact that no other system
commands enough respect to replace it, it has survived being blown out of the water in 2007–
2008. This may have been due to inertia.

5. Most people think of capitalism as an economic system in which private actors own and
control property according to their own interests and demand and supply freely set market
prices in a way that can serve society's best interests. According to "Supply and Demand" in
the June 2010 issue of F&D, capital assets like factories, mines, and railroads can be privately
owned and controlled, labor is purchased for money wages, and prices divide capital and
labor among competing uses. Although capitalism is the foundation of nearly every economy
today, it was only one of two major economic organization strategies for much of the last
century. In the alternative, socialism, the state owns the means of production, and state-owned
businesses prioritize the public good over financial gain.
Activity 4 Familiarize yourself to an international economic organization or an
international company like Honda, McDonalds etc. and gather as much information as you
can and accomplish the following tasks:
a. research the origins of the institution you have chosen;
b. map the international connections it has created;
c. identify the major country-leaders of this institution; and
d. locate the Philippines in this map of interconnections.

Jollibee Foods Corporation

The Jollibee Foods Corporation, also known as JFC and the Jollibee Group a multinational
corporation based in Pasig, Philippines, also known as Jollibee after its primary fast food
brand. Jollibee, a fast food brand, is owned by JFC. JFC bought Chowking, Greenwich Pizza,
Red Ribbon, and Mang Inasal, some of its rivals in the fast food industry in the Philippines
and abroad, thanks to the success of its flagship brand. JFC will have more than 6,300
locations worldwide by September 2022, and its system-wide retail sales will total 210.9
billion. Jollibee experienced explosive expansion. By focusing on the distinct tastes of the
Filipino market, which were distinct from those of the American fast food chain, it was able
to withstand McDonald's entry into the Philippines in 1981. JFC went public on the
Philippine Stock Exchange on July 13, 1993. In 2011, JFC opened 260 new stores, with Mang
Inasal (86) and Jollibee (40) running 167 of them in the Philippines. By selling Délifrance to
CaféFrance, the company increased its total number of stores to 2,001 at the end of
December. Yonghe King led the opening of 70 Jollibee stores in China and Jollibee Vietnam
for Jollibee overseas. Jollibee Foods Corporation has stakes in restaurant chains based or
originating outside the Philippines such as in Mainland China, Taiwan, Canada and United States
as well as the holder of the master franchise of Burger King in the Philippines.

Answer the questions:

 1. How does this institution that you have chosen influence global economic activity?
As it continues its overseas expansion, JFC is optimistic about the global economy. Because
of this, it is now one of the largest restaurant franchises in the world, with over 4,000
locations in 23 nations, 37 of which are in the United States. In comparison, McDonald's has
over 37,000 locations worldwide and 14,000 in the United States. Jollibee has expanded its
global footprint through acquisitions and organic growth. Institutions have a significant
impact on countries' economic development and act in society at all levels by establishing the
frameworks within which economic exchange takes place. They decide how many
interactions are possible, how much money can be exchanged, and how they should look.

2. How does it affect economics in the Philippines?

Because the agricultural sector in the Philippines is extremely vulnerable and Jollibee Foods
Corporation is reliant on a consistent supply of raw materials, such as vegetables, cereals, and
animal produce, at significant quantities and stable prices, it also assisted farmers. Jollibee
serves great-tasting, high-quality, and affordable food products, including its superior-tasting
Chickenjoy, mouthwatering Yumburger, and deliciously satisfying Jolly Spaghetti, among
others, with a strict adherence to the highest standards of food quality, service, and
cleanliness. JFC gives the Foundation 1.5% of its net profits each year to support its
programs. Through programs in agriculture, education, and disaster response, JGF has been
assisting communities in the Philippines in gaining sustainable access to food.