operating in international scale

CONTEMPORARY - The worldwide movement toward

economic, financial, trade and

WORLD
communications.
- a multidimensional set of social
processes that create, multiply,
CW Reviewer LESSON 1- 5 stretch, and intensify worldwide
(Mr. Joseph Rivas) social interdependence and
exchanges while at the same time

LESSON 1: INTRODUCTION TO THE

fostering in people a growing
awareness of deepening
STUDY OF GLOBALIZATION connections between the local
and the distant.

Samuel Huntington, Francis Fukuyama, and

Liberalization
Thomas Friedman
process removing state – imposed
They describe the current world events,
restrictions on movements between
that is, the continuous evolution and
countries in order to create an “open”,
unstable global order.
“borderless” world economy.

Justine Rosenberg
Forces and Drivers of Globalization
A phenomenon gave rise to the
- Environment
interconnectedness of human society
- Politics
that replaced the sovereign state system
- Economics
with a multilateral system of global
- Technology
governance.
- Individuals and Institutions
- Culture
Dr. Cairo
Qualities and Characteristics of Globalization
A complex web of social processes that
intensify and expand worldwide
1. Creation and Multiplication
economic, cultural, political, and
technological exchanges and The current of modernization involves
connections.
creation and multiplication of social
networks and cultural activities thus,
Globalization breaking the traditional norms and
practices in the political, economic, and
- The process by which business or cultural realms of most communities
other organizations develop
international influence or start

1

2. Expansion and Stretching
Reflected on how the financial markets
and trading around the globe. The
formation of economic organizations
like the World Trade Organization,
ASEAN Economic Community, World
Economic Forum, and European Union
brought light to the expansion of local
economies through opening their
economies to the other parts of the
world.
3. Intensification and Acceleration
Describes how the process of world and
individual connection works. The digital
age as part of its structure. Consumer
markets and consumerism continue to
rule in this postmodern era where the
farthest have the access to reach the
central portion of global events
4. Consciousness and Awareness
Human consciousness is critical on how
they impact the growing outcomes and
markers of globalization.
Globalization or Westernization?
For westerner’s conception of the term
globalization, scholars attributed it as
part of the growing imperialist
mechanism of America and Western
powers, which they considered as the
building blocks of technological and
2
economic o=innovations. This concept
refers the western value system and it
influences countries outside its territory
and sovereignty. The political, economic,
and technological prowess of United
States and European countries are best
described in the idea of Westernization.
Nationalism
- Kearney 1995
- Stresses his personal analysis the
string of events worldwide is part
of the global tone
‘transnationalism’. Nationalism
refers only to territorial, social
and cultural aspects of the nation.
It occurs when people, groups, or
organization transcend from one
nation to the next which usually
involve only two or more nations.
QUESTIONS:
Based on our definitions, what do you
think is the goal of GLOBALIZATION?
What is the impact of globalization in
our life?

LESSON 2: BRETTON WOODS
INSTITUTION
Introduction to the Bretton woods Agreement
- The Bretton Woods agreement is
the landmark system for
monetary and exchange rate
management.
- -
- The Bretton Woods System of
monetary management
established the rules for
commercial and financial
relations among the United States,
Canada, Western Europe,
Australia and Japan in the
mid-20th century
- declared a par value for their
- World leaders sought to create a
global economic system that
would ensure a longer lasting
global peace.
- reverse.
- They believed that one of the
ways to achieve this goal was to
set up network of global financial
institutions that would promote
economic interdependence and
prosperity.
- Inaugurated 1944 during the
United nations monetary and
financial conference to prevent th
catastrophe of the early decades
of the century from reoccurring
and affecting international ties.
Bretton Wood System
In 1944 representatives form 44
countries met at Bretton Woods. New
3
Hampshire, to design the new
international monetary system that
would facilitate postwar economic
growth.
- A fix exchange rate system was
established
- All currencies were fixed to gold,
but only the U.S. dollar was
directly convertible to gold.
- Devaluation could not be used as
a competitive purposes.
A country could not devalue its
currency by more than 10%
without permission to IMF
approval.
Design of the System
- Members were obliged to
national money.
- If the exchange rate were not
float freely, there will be
adequate supply of monetary
- It was necessary to avoid
recurrence of the kind of
economic warfare that has
characterized of decade of 1930’s.
- The negotiators agreed that there
was a need for an institutional
forum for international
corporation on monetary
matters.
The World Bank
- International financial institution
that provides loans and grants to
the governments of low- and
middle-income countries for the
 purpose of pursuing capital
projects.
- The World Bank's experts produce
a range of reports and toolkits for
practitioners hoping to improve
their countries' logistics
performance and border
management.
International Monetary Fund (IMF)
It is an organization of 190 countries,
working to foster global monetary
cooperation, secure financial stability,
facilitate international trade, promote
high employment and sustainable
economic growth, and reduce poverty
around the world.
World Bank Purpose and Function
- Overcome poverty by spurring
growth, especially in Africa.
- Help reconstruct countries
emerging from war, the biggest
cause of extreme poverty.
- Provide a customized solution to
help middle-income countries
remain out of poverty.
- Spur governments to prevent
climate change.
The country founded IMF
"Original members" (Article II, Section
1), which signed the Articles of
Agreement by December 31, 1945. Costa
4
Rica, Poland, Brazil, Uruguay, and Cuba
signed the Articles by that date but their
membership became effective upon
deposit of their respective instruments
of acceptance.climate change.
International Monetary Fund purpose
The International Monetary Fund(IMF)
promotes international financial
stability and monetary cooperation. It
also facilitates international trade,
promotes employment and sustainable
economic growth, and helps to reduce
global poverty.
The goal of word bank
The World Bank Group has two
ambitious goals: End extreme poverty
within a generation and boost shared
prosperity.
Is the world bank important to our country?
The World Bank promotes long-term
economic development and poverty
reduction by providing technical and
financial support to help countries
reform certain sectors or implement
specific projects—such as building
schools and health centers, providing
water and electricity, fighting disease,
and protecting the environment
The General Agreement on Tariffs and Trade
 seeking to join the WTO.
- Legal agreement between many
countries, whose overall purpose
was to promote international Accessions
trade by reducing or eliminating
To join the WTO, a government has to
trade barriers such as tariffs or
bring its economic and trade policies in
quotas.
line with WTO rules and negotiate its
- signed on October 30, 1947, by 23
terms of entry with the WTO
countries, was a legal agreement
membership.
minimizing barriers to
international trade by eliminating
or reducing quotas, tariffs, and The 10 Most Economically Stable Countries,
subsidies while preserving Ranked by Perception
significant regulations.

Objectives of GATT

(a) to help raise standards of living;

(b) to achieve full employment

(c) to develop the world's resources;

(d) to expand production and exchange
of goods;

(e) to promote economic development.

World Trade Organization(WTO)

- Intergovernmental organization
that regulates and facilitates
international trade between
nations. Governments use the
organization to establish, revise,
and enforce the rules that govern
international trade
- The WTO has over 160 members
representing 98 percent of world
trade. Over 20 countries are

5
LESSON 3:
ECONOMIC GLOBALIZATION
- Broadly refers to the increasing
integration of national economies
around the world, particularly
through trade and financial flows.
Economic globalization involves
trade in goods and services,
capital flows and trade in assets
(e.g., currency, stocks), the
transfer of technology and ideas,
and international flows of labor
or migration.
- Refers to increasing
interdependence of world
economies as a result of the
growing scale of cross-border
trade of commodities and
services, flow of international
capital and wide and rapid spread
of technologies.
- Globalization decreases the cost
of manufacturing. This means
that companies can offer goods at
a lower price to consumers. The
average cost of goods is a key
aspect that contributes to
increases in the standard of
living. Consumers also have
access to a wider variety of goods
6
Advantages of globalization
1. Transfer of Technology
Refers to the process of conveying
results stemming from scientific and
technological research to the
marketplace and to wider society.
TWO TYPES OF TRANSFER:
a.) Vertical Transfer
Basic research to applied research to
development and then to production
b.) Horizontal Transfer
Movement and use of technology used in
one place, organization, or context to
another place, organization or context
2. Better Services
Showing the customer how important he
or she is to you and the business by
interacting with he or she in a
friendly-helpful and positive way. The
idea is to leave a lasting impression on
customers by working with them and
assisting them in the best way possible.
3. Standardization of Living
Wealth, comfort, material goods, and
necessities of certain classes in certain
areas or more objective characteristics
whereas quality of life is more subjective
and intangible, such as personal liberty
or environmental quality.
4. Economic Growth
an increase in the amount of goods and
services produced per head of the
population over a period of time.
5. Affordable Products
It means its price is low enough that you
(or most people) have enough money to
buy it.
6. Development of Infrastructure
Is the construction of basic foundational
services in order to stimulate economic
growth and quality of life improvement.
7. Foreign Exchange Reserve
Assets such as foreign currencies; Gold
reserves treasury bills, etc retained by a
central bank or other monetary
authority that checks the balance
payments and influences the foreign
exchange rate of its currency and
maintains.
7
8. Contribution to world GDP
GDP can be calculated as the sum of its
different component.
9. Growth Rate
- is the percentage change in the
value of all of the goods and
services produced in a nation
during a specific period of time
- Growth rates refer to the
percentage change of a specific
variable within a specific time
period. Growth rates can be
positive or negative, depending
on whether the size of the
variable is increasing or
decreasing over time.
QUESTIONS:
How does globalization help the
economy?
Disadvantages of Globalization
What is the difference between
positive growth rate and negative
growth rate?
LESSON 4:
Non-governmental Organization
ACTORS OF GLOBALIZATION
- Profit, Voluntary Citizens group, which
is organized on a local, national or
ACTORS OF GLOBALIZATION
international level.
The globalization movement is
composed of a multiplicity of actors who
perform their initiatives through Inter governmental Organization
networks of relationships
- An organization composed primarily of
sovereign states, or of other
6 FACTORS OF GLOBALIZATION intergovernmental organizations.

● Multi-businesses Companies
● State
Government
● Non-governmental Organization
● Inter governmental Organization The political direction and control
● Government exercise over the actions of the citizens
● Activists Groups and state.

Multi-businesses Companies Activists Groups

- That operates in more than one Groups who campaign to bring about
country, usually a large corporation, political or social change:
incorporated in one country which
produces or sells goods or services in ● IFAT

various countries. ● PETA

● NOW
● SSCS

State/Nations
3 INTERACTING FORCES ACTORS OF
- Rule over a defined or “sovereign”
territory.
GLOBALIZATION

- A large body of people, associated with ● Network

a particular territory. ● Elite

8
 ● Institutions
Network
- collection of computers, servers,
mainframes, network devices,
peripherals, or other devices connected
to allow data sharing.
THE CORPORATE ELITE:
It was corporate leaders working with
prominent military officers who
dominated the development of policies.
These two groups tended to be mutually
supportive.

Elite

- In political and sociological theory, the

elite are a small group of powerful
people who hold a disproportionate
amount of wealth, privilege, political
power, or skill in a society.

ELITIST PRIVILEGE

THE POLITICAL LEADERSHIP:

SOCIAL INSTITUTION
corporate leaders had become more
prominent in the political process, with a ● Family
decline in central decision-making for ● Education
professional politicians ● Religion
● Economics
● Government
THE MILITARY CIRCLE:

making top military leaders and such

issues as defense funding and personnel
recruitment very important. Most
prominent corporate leaders and
politicians were strong proponents of
military spending.
FINANCIAL INSTITUTION
- A company engaged in the business of
dealing with financial and monetary
transactions such as deposits, loans,
investments, and currency exchange.

9
Role of Financial Institution Prudential

1.) Regulation of Monetary Supply
2.) Banking Services
3.) Insurance Services
When opting for a medical plan, it is best
suited to go for an option that provides
comprehensive coverage for all your
medical needs.

4.) Capital Formation

SAVING & LOAN COMMERCIAL
5.) Act as A Government Agent for
COMPANIES BANKS
Economic Growth
Provide many of the Focuses more on
6.) Financing the small and medium same services as working w/ large
Scale Enterprises banks but focus more businesses and
on residential unsecured credit
7.) Investment Advice mortgages services

8.) Pension Fund Services Originally created to Owned and operated

provide more by a board of
9.) Trust Fund Services economic directors selected by
opportunities to the stockholders
10.) Investment Advice middle-class

Private entities, Many services are

mutually owned by conducted online
customers while exclusively

DEPOSITORY INSTITUTION others are

publicly-traded
companies
Globe Loans since 1914

Credit Cards

Bank

GOVERNMENT INSTITUTIONS

● DAR (Department of Agrarian

NON-DEPOSITORY INSTITUTION
Reform)
mutual funds ● Department of Energy
● Department of Finance
insurance
● Department of Justice
Sun life ● Department of Agriculture (1898)

10
 ● Department of Science and
Technology
● Department of Budget and
Management
● Department of Environment and
Natural Resources
● Department of Transformation
and Communications (1899)
● Deped
● DICT
● DILG
● DTI

COMMUNITY INSTITUTIONS

Public Institutions Building

Community Wealth:

● Expanding
● Employing
● Investing

11
LESSON 5: TYPES OF ECONOMIC SYSTEMS
CAPITALIST WORLD ECONOMY a.) Capitalist

CAPITALISM
b.) Fascism
- Capitalism is often referred to as a free
market economy in its purest form, It is a nationalistic type of economic
where the means of production are system where the government forces
owned by private interests business to place the interest of the
nation above their company’s
- An economic and a mode of production
in which trade, industries and the means
of production are largely or entirely
c.) Communism
privately owned and operated for profit
Communist economic system is one step
- Money is invested to generate more
further than socialism where the
money
government owns the entire means of
production (i.e., all businesses are
ECONOMICS BASED ON 3 THINGS: state-owned) and the government
provides all citizens with a fixed
● Private ownership
standard of living.
● profit for exchange and profit
● Wage Labour

d.) Socialism
TWO CLASS SYSTEM
It provides a system where both
Working Class individuals and governments own the
means of production, and they may
who sell their labor to the capitalist class
compete.
in exchange for wages

FEATURES OF CAPITALISM
Capitalist Class
1.) Private property
owns the means for producing and
- Individuals own property and
distributing goods
resources

12
 develop their business
2.) Large Scale production

- capitalism arose as a result of the

industrial revolution which made large
scale production possible. More
production means wider use of capital
and lead more profit
8.) Laissez - Fair competition
- This means no taxes, regulations, or
tariffs. Instead, the market should be
completely free to be led by the natural
laws of supply and demand.

3.) Profit as key motive

- Money left over can be spent in any 9.) Responsible Capitalism

way the manufacturer wants.
- free market economy, but with a degree
of government regulation to avoid the
excesses and inequalities of capitalism
4.) Competition

- extreme competition between

capitalists. demand is artificially
increased and supply is decreased.
5.) Price Mechanism
10.) Turbo Capitalism
- unregulated form of capitalism with
financial deregulation,privatization and
lower tax on high earner.

- price of a acommodity is determined

not by the cost of production but by the
law of demand and supply
6.) Wage Institution
- pay as less wages as possible and to
take as much work as possible out of him
11.) Crony Capitalism
- the situation where business success is
related to strategic influences with civil
servants, politicians and those in
authority.
12.) State Capitalism

- It occurs when state owned industries

7.) Money and Credit
play a key role within the market
- capitalist get money on loan and economy.

13
PROS AND CONS
PROS
● People can accumulate and grow
their wealth
There is no restriction on how much
wealth an individual can earn in
capitalism. It is the individual's
responsibility to secure his finances to
meet his needs, wants, and prepare in
case of emergencies.
● People have a reason to work hard
because it is the means to earn money to
sustain their living through a standard
job or operating a business.
● Rewards are based on your
performance
A capitalist society gives rewards based
on how you perform. The more
outstanding the contribution and value
you give to a company or organization,
the higher the amount of money you can
gain.
● Competition is encouraged
Businesses and people are encouraged to
compete with themselves to see who can
earn more profit.
14
● Better products and Innovation
a characteristic of capitalism, which can
lead to the creation of new and better
products, especially technological
advances.
● Freedom
Companies are free to do what they want
in terms of money generation.
CONS
● Consumerism
Profit generation is a goal for capitalist
societies, and for that to happen, people
are encouraged to spend their money
and buy things.
● Exploitation
It's common for companies to treat
workers as expendable resources in
countries that use capitalist systems
● Wealth Gap
Due to the values inherent in a capitalist
economy, it's common to see a significant
wealth gap among people. As a result,
the wealthy become even wealthier, and
the poor become even poorer.
 ● The creation of Monopolies

When individuals and organizations can

create private firms for business, it's
possible to create a monopoly within a
capitalist economy.

● Social unrest

The increasing divide between the rich

and poor can result in more significant
tensions between people of opposing
financial standings.

● Life feels unfair

The norm is for everyone to get ahead of

each other to get better in life.

15