The Global Economy  A Japanese fashion brand opens a retail location

in London.
Globalization Logistics
 A Czech furniture company opens a warehouse
 Worldwide interconnectedness in all aspects of in Rotterdam.
contemporary social aspects.
 Multidimensional phenomenon. Some Amendments on The
Foreign Investments Act (FIA) Of 1991
Economic Globalization
 One hundred percent (100%) foreign capital
 It is a historical process demonstrating the result investment in domestic enterprises is allowed
of technological progress and human innovation.  The amendment now allows foreign nationals to
(International Monetary Fund, 2008) invest a minimum paid-in capital of One
 Stiglitz (2008) - Economic globalization can Hundred Thousand US Dollars (US$100,000).
improve the living standards all over the word.
3. Migration
Elements Of Economic Globalization  Migration is the movement of people from one
country to another.
1. Diffusion of Technology  $750 billion- World Remittances
 Technology plays a vital role in expediting the  $540 billion- Remittances among developing
process of globalization. countries
 Technology is associated with the words
"progress and innovation".
✓ Digital Devices
✓ Health Facilities
✓ Financial Sector
✓ Online Shopping Sites
✓ Universal Barcode

Advantages of Technology
 creation of new services, industries, and
business innovation.
 Increases the efficiency of the factors of
production Migration (movement of labor)
 Increase GDP growth,  Unfortunately, migration can also hurt the
 reduction of poverty rate. economy in the process in which a country loses
its most educated and talented workers to other
Disadvantages of Technology countries. The flight of this human capital is
 Replacement of Workers by Machines essential for countries' economic growth.
 Rise of Fake News
 Forgetting our own culture and traditions 4. International Trade
 It is the economic transactions made between
2. Foreign Direct Investment countries.
 FDI takes place when an investor establishes  The fruits of free trade: A global fruit market
foreign business operations of acquires foreign
business assets in a foreign company.
 A foreign direct investment (FDI) is an
investment in the form of a controlling
ownership in a business in one country by an
entity based in another country.
 United Nations Conference on Trade and
Development (UNCTAD) reports concluded that
FDI have become an important engine of
economic growth because it grew faster than
gross domestic product (GDP) and international
trade and international corporate sales exceeded How Does This Make Sense? Why Can't
by far global exports (UNCTAD, 2006). Countries Just Make Their Own Tv, Shirt,
Or Food and Provide More Jobs And
Facilities Business Domestically?
 An American technology company builds and
operates a data center in Canada. This is a  Before the 19th century, most European
foreign direct investment from America to countries tried to do prioritize self-sufficiency in
Canada. a system called Mercantilism.
Manufacturing  In 1817, the so-called classical economists, led
 A Canadian sporting goods manufacturer builds by David Ricardo, introduced the Theory of
a factory in Thailand. Comparative Advantage
Sales Office
 A French software company opens a sales office
in Brazil to reach the Brazilian market with their
services.
Retail