Economic Globalization?

concentrates the use of its resources

on
producing a limited variety of goods
Economic globalization is a historical
to gain a
process
greater degree of efficiency.
demonstrating the result of technological
progress
and human innovation. It is distinguished by
the
increasing integration of economies around
the world
- “Organic system”
- economic globalization is the
increasing economic integration and
interdependence on movement of
goods, service and technologies.

Elements of Economic
Globalization.

◦ International Trade – it is the economic

transactions made between countries
including exchange of goods and services.

Comparative Advantage
-it is an economic
theory brought by David Ricardo
which states
that countries should only export the
goods
that they are able to produce more
efficiently
and import the goods that other ● Foreign Direct Investment
countries are (FDI)
able to produce more efficiently than
them. - According to Organization
for Economic
( KAILANGAN BALANCE EXPORT Cooperation and Development
AND IMPORT DIN, HINDI (OECD), FDI is
PWEDENG EXPORT LANG KASI a category of cross-border
HINDI MAGIGING EFFICIENT ANG investment in
RESULT) which an investor resident in one
Specialization - it is when a nation economy
 establishes a lasting interest in and
a
significant degree of influence over Migration (movement of
an
enterprise resident in another
labor)
economy.
- Labor is increasingly mobile.
- Moving abroad
● Capital market flows - Remittances are funds that
emigrants earn abroad and
- refers to the send back to their home
movement of capital (money for countries,(mga ofw,ocw)
investment) from one country to
another as
a consequence of investment flows.
- referring to the
● Diffusion of technology
money flowing into and out across
- Technology plays a vital role in
the the world such as stock and
expediting
bond,
the process of globalization.
- Technological improvement has
● Migration (movement of
allowed
labor)
companies to rapidly globalize their
- Migration is the movement
products.
of people from one
- process by which new technologies
country to another. In
are adopted for use across
economics, it is in
individual firms or households in a given
consonant to the
market, and across different markets.
movement of labor.
- ‘internet economies’
- Internet growth is a key factor for
Emigration - movement of
developing interpersonal
people from a country.( mga tao na
relationship across the globe. It is
umaalis sa bansa papunta sa
one of the necessary components
magandang bansa)
for social globalization, and it
Immigration - movement of
would not be complete without
people to a country.( pagpunta ng
the invention of internet.
ibang tao/pagpasok o paglilipat
- Innovations in
ng matitirhan ng permanente sa
telecommunications, information
ibang bansa)
technology, and computing
have lowered communication costs
Push- reason for emigration
and facilitated the cross-border flow.
( dahilan upang umalis)
Pull- reason for immigration
(dahilan upang lumipat mga
oportunidad)
What is Market Integration?

The very word "integration" derives from

"integer",
meaning one, complete, or whole.
Integration is the
act of combining into one whole.
- The global economic integration
logically implies
national economic disintegration. global supply chain?
Supply chains are
networks—consisting of
● Market integration individual producers,
is a companies,
term used to identify a transportation,
phenomenon in which information, and
markets of goods and more—that
services that are related extract raw materials,
to one another being to transform them into
experience similar finished products, and
patterns of increase or deliver those
decrease in terms of the products to consumers.
prices of those products. ( dumadaan sa process)

Transnational Corporations are result of

outsourcing activity

Outsourcing Is the practice of obtaining

goods and services from foreign
suppliers.