GED 104 REVIEWER
cultures, governments, and economies.
 International Trade is the regulations and
agreement of foreign countries. (FALSE)
 Trade policies refer to the exchange of goods,
services and capital across national borders.
(FALSE)
 Foreign Direct Investment is an investment
made by a country or individual in one company
in business interests in another company.
(FALSE)
 Foreign Direct Investment is in the form of
either establishing business operations or
acquiring business assets in the other country.
(TRUE)
 Foreign Direct Investment is made open to
economies; frequently involves more than just a
capital investment and includes provision of
management or technology as well. (TRUE)
 One of the methods in establishing foreign
direct investment is by means of a merger or
joint venture with a foreign company. (TRUE)
 South Africa is originally included in BRICS
economies together with Brazil, Russia, India,
and China. (FALSE)
 The General Agreement on Trade in Services
(GATS) is the first bilateral agreement covering
trade in services which was negotiated during
the last round, called Uruguay Round, and came
into force in 1995. (FALSE)
 Regionalism refers to the centralization of
political powers or competencies from a higher
towards a lower political level. (FALSE)
 It can either be bottom-up or top-down. (TRUE)
 The Asia and the Pacific was considered to
become a key driver of global politics. (TRUE)
 This area in the region is home to several key
allies and important emerging powers. (TRUE)
 The United States has implemented a policy
shift to commit more resources and attention to
the Asia Pacific Region. (TRUE)
 This foreign policy shift is called Pacific Pivot.
(TRUE)
 Middle class formation in Southeast Asia was
driven by developmental states and national
capitalism. (FALSE)
 On the other hand, middle class in Japan, South
Korea and Taiwan was created by global and
regional transnational capitalism. (FALSE)
 The middle class in East Asia was formed
through regional economic development in the
post-war era. (TRUE)
 Regional economic development took place
within the American informal empire in Free
Asia. (TRUE)
 Globalization- a process wherein goods and
services, people, and ideas create movements
throughout the world, resulting in an integrative
and interactive world between and among
 Features of prevailing wave of globalization on
the onset of World War I in 1914:
1. Increase in cross border-trade
2. Increase in investment
3. Increase in migration
 Features of World War II globalization:
1. Free market economy has been adapted
2. Governments negotiated dramatic
reductions in barriers to commerce
3. International agreements to promote
trade in goods, services, and investment
have been established
4. Corporations have built foreign factories
and established production and
marketing arrangements with foreign
partners.
 Globalization increases the economic
interdependence of countries worldwide.
 Shows that globalization is cultural:
1. Shopee is one of the Filipino shopping
options
2. Filipinos started to love biryani, kabsa,
and shawarma
3. Increase in the opening of samgyupsal
and shabu-shabu restaurants in the
Philippines
 Prehistoric- involves gatherers and hunters as
drivers of globalization
 Globalization is a social process of intensifying
global interdependence while globalism is an
ideology that gives the concept of neo-liberal
values and meanings.
 Social justice is achieved when:
1. basic equity in how both the burden
and the goods of society are distributed
2. the terms of contracts and other
promises on both personal and social
level are fulfilled
3. every person enjoys a basically equal
moral and legal standing apart from
differences in wealth, privilege, talents,
and achievements.
 Sovereignty, impact of various
intergovernmental organization, and future
shapes of regional and global governance are
issues of political dimension.
 International Monetary System- a system that
forms rules and standards for facilitating
international trade among the nations.
 Marketization- a restructuring process that
enables state enterprises to operate as market-
oriented firms by changing the legal
environment in which they operate.
 European Monetary System- originated in an
attempt to stabilized inflation and stop large
 exchange rate fluctuations between European
countries
 European Financial Stability Mechanism-
permanent fund created by the European Union
to provide emergency assistance to member
states within the Union.
 Financing- Function of finance in global
corporation that deals on borrowing in
countries with high tac rates and lending to
operations in countries with lower rates.
 Capital budgeting- functions of finance in global
corporation that deals on getting smarter on
valuing investment opportunities
 Financial Market Integration- open market
economy between countries facilitated by a
common currency and the elimination of
technical, regulatory and tax differences to
encourage free flow of capital and investment
across borders.
 Stock Market Integration- condition in which
stock markets in different countries trend
together and depict same expected risk
adjusted returns
 Market integration- It refers to how easily two
or more markets can trade with each other.
Movement of prices of related goods and
services sold in a defined geographical location
in similar patterns. It exists when there are
exerted effects that prompt similar changes or
shifts in other markets that focus on related
goods on events occurring within two or more
markets.
 GATS was formerly known as IMS.
 Bilateral Trade Policy- to regulate the trade and
business relations between two nations.
 Safety U2- ensures that imported products in
the country are of high quality.
 Trade barriers- state-imposed restrictions on
trading a particular product or with a specific
nation
 Free Trade Agreement is to Solving trade
disputes as Custom Union is to unified external
import-export taxes
 For Economic and Monetary Union (EMU) to
take place, single currencies should be used in
all the member countries.
 North Atlantic Free Trade Agreement is a
bilateral Free Trade Agreement (FTA). (False,
multilateral among USA, Canada, and Mexico)
 Creating common policy framework that
creates equal conditions for the functions of the
integrated parts of the economy is the aim of
policy integration
 Participating countries cannot control
economic policies characterized complete
economic integration.
 Social Movement Activism:
1. organizational structures and strategies
2. Empowers oppressed population
3. carry out, resist, or undo a social change
from bottom within nations
 Liberal intergovernmentalism- the bargaining
power of member states is important in the
pursuit of integration, and package deals and
side payments also occur in the process of
making deals.
 Spill over- refers to the concept of Neo-
functionalism about the extension of an
institution’s, country’s, or central authority’s
economic decision to other areas of policies.
 Global Justice Movement- Advocating fair trade
rules
 Domestic politics- creates tight constraints on
international cooperation and reduces the
scope for compromise.
 United Nations- tasked to promote
international co-operation and to create and
maintain international order
 Global governance- viewed as the sum of
governance processes operating in the absence
of world government.
 Law- critical ingredient for transforming real
assets into commodities and ultimately financial
assets, that is, the third path which is the
capitalization of assets
 Depoliticization- This can be observed in the
form of delegating decisions to independent
regulators and experts, central banks, or
judiciaries
 State- has the roles in operating the intricate
web of multi-lateral arrangements and inter-
governmental regimes. It remains as the key
actor in the domestic as well as international
arenas. Strongest vehicle for social
redistribution and the main mechanism for
social transfer
 Nation-states- challenged by multinational
corporations to address the issue of foreign
direct investments to force nation-states to
ascertain the allowable international influence
in their economies.
 “Developing world”- Africa, Latin America,
developing countries in Asia, less developed
countries
 Regionalism- decentralization of political
powers or competencies from a higher towards
a lower political level
 Third world- arose during the Cold War to
identify countries whose views did not align
with NATO and capitalism or the Soviet Union
and communism.
 Pacific pivot- was implemented by the United
States to commit more resources and attention
to the region
 Globalization- An external phenomenon being
pushed into the region by world powers
particularly the United States and Europe.
 New urban middle classes emerged during the
post 1986 Philippines.
 Southeast Asian middle classes- exemplifies the
diversity and complexity of class formation
 Laboratories of modernity- term for colonies in
the Asia pacific and South Asia which influenced
the West and vice versa.
 Socially coherent, less dependent on state,
culturally ascendant- Philippine middle classes
 Impacts on globalization in Asia Pacific and
South Asia:
1. India opened up and emphasized an
export-oriented strategy.
2. India and China have become the major
source of international migrant labor.
3. Asia Pacific and South Asia has become
the source of varied cultural
phenomena
 WTO U2 was formerly known as GATTS.
 Cultural diversity is a form of delegating
decisions to independent regulators and
experts, central banks, or judiciaries.