NAME: AJ B.

JUATON
YEAR & COURSE: BEED-3

MODULE 2- TOPIC 2
MARKET INTEGRATION

INTRODUCTION (55 minutes total discussions and engagements time for all introductory topics)
(Outcome 2: Understand and explain the history of global market integration in the twentieth century)

Have you heard the phrase “When the American economy sneezes, the rest of the world catche a cold”?

This means that world economies have been brought together by globalization. But it is important to
remember that it is not just the economy of United States that has the significant impact and global market
and finance. This is clear, for example, in the global impact of financial that crisis that strike Asia and Russia
in the 1990’s. However it remains the case that the more powerful the economy, the greater the effect of its
crisis on the rest of the world. In the same manner, crises on weaker economies have less effect on other
countries. For example, Argentina’s serious financial crisis in the late 1990’s and 2000’s has a comparatively
small impact on the global economy.
This shows the contribution of difference financial and economic institutions and facilitated the growth of
the global economy. As we discuss the history of the creation, interaction, and characteristics of these
institutions, we will able to see their significance as well as the controversies in
which they became involved. We will also take a look at the multinational
that are emerging in today’s world economy.
Economic Development During and After World War II

Share your insights: (graded)

1. In your previous history subjects, what were the faces or marks of the World War II?
Answer:
In World War II, Adolf Hitler leading Nazi Germany, Franklin D. Roosevelt as the U.S. President, Winston
Churchill as the British Prime Minister, and figures like Hirohito in Japan the meaningful marks include the
invasion of Poland in 1939, the Battle of Stalingrad, D-Day in 1944, and the dropping of atomic bombs on
Hiroshima and Nagasaki in 1945. The war's result led to the establishment of the United Nations and the
beginning of the Cold War.
2. Who or which nations do you think became the most powerful or otherwise, the weakest during and after
the World War II?
Answer:
At the time, Germany was the most powerful nation at the time, followed by the United States.
The Soviet Union is the weakest among the states because it was the one that suffered the most, which were
the nearly 20 million victims.

3. Can you describe what you think was the way and quality of life during and after world war II? What real-
life experiences of your elders or grandparents can you share pertaining to this?' Answer:
During and after World War II, the United States and the Soviet Union arethe most powerful nations because of
their military strength and geopolitical influence. The weakened European powers like Britain and France.
Germany and Japan are Axis powers defeated in the war, were weakened but later experienced reconstruction
and economic recovery.

4. What do you think were the actions of the local and world governments in response to the effects of the
most devastating historical event of the 20th century? Answer:
In response to the most devastating historical event of the 20th century, which is generally considered World War
II, governments globally and locally took various actions the United Nations was established to promote peace and
cooperation among nations countries implemented reconstruction efforts to rebuild warm regions.
5. Do you still feel or sense the remnants of World War II? If yes, what are these and how?
Answer:
No. I can't feel it personally, but remnants of World War II are like echoes in history books, museums, and stories
told by people. The way countries relate to each other still carry of that time. The scars of war can be seen in
preserved structures, memorials, old buildings, memorials, and the narratives passed down through generations.

Criteria for grading:

•10 points max (per item)- factual, complete, accurate, concise, comprehensive, and efficient relay of ideas.
•5 points max (individual) - Efficient strategies or techniques used by the students in relaying or expressing
ideas

Activity 1: ROUND TABLE DISCUSSION(45 minutes)

(Outcomes 1-2: Explain the role of international financial institutions in the creation of a global economy;
and Understand and explain the history of global market integration in the twentieth century)

The main goal of the students is to explain and synthesize the best understanding explanations and insights
about each of the particular topics discussed: • Market Integration
Answer:
Market integration should theoretically increase economic and financial effectiveness and promote
more prosperous economic growth. However, market integration may make asset returns more
volatile, as well as cause financial instability and contagion.

•World Trade Organization (WTO)

Answer:
According to the ebook, the WTO is an international organization with its main offices in Geneva,
Switzerland, which as of 2008 has 152 member countries (Krueger 2000; Trachman
2007:1308-15). Due to its trade-centric approach, it is at the center of economic globalization and makes individuals
who are against trade liberalization in general and/or in a few particular WTO operations-related areas.
•International Monetary Fund (IMF) Answer:
The booklet states that the IMF promotes macroeconomic stability for both member countries.
Also considered is the global economy (Cardem de Cavalho 2007:658-63). In particular, the IMF focuses
on the balance of payments, foreign capital flows, currency rates, and the supervision of the
macroeconomic policies of the member states.

•Bretton Woods and the System

Answer:
According to the ebook, a major contributing factor to the depression was perceived to be a shortage of resources
for intergovernmental collaboration. Cooperation was lacking, and it was linked to high tariffs, other import
limitations, protectionist measures, and a tendency towards governments depreciating their currencies to
outcompete rivals in international trade. The latter also increased the likelihood of exchange rate battles
among the affected countries.
•World Bank (WB)
Answer:
The World Bank, often known as the International Bank for Reconstruction and Development, is the most
crucial component of the World Bank. IBRD, which stands for reconstruction and development (WBG),
(Gilbert and Vines
2000; Bradlow 2007:1262-7). The bank, or the IBRD, was founded in Bretton Woods in 1944, and it
started running in 1946.
•General Agreement on Tariffs and Trade (GATT)
Answer:
According to the ebook GATT focused on tariff reduction, the WTO has come to focus more on nontariff-
related barriers to trade. One example is the differences between nations in relation to
regulations on such items as
manufactured foods or food.

Criteria for grading:

•10 points max (per item)- factual, complete, accurate, concise, comprehensive, and efficient relay of ideas.
•5 points max (per item) – Creative and Efficient strategies or techniques used by the students in relaying or
expressing
ideas
GUIDE QUESTIONS: 1. What is MARKET INTEGRATION and what is its relevance to the present
local and international economies?
Answer:
Market integration should theoretically increase economic and financial effectiveness and promote more
prosperous economic growth. However, market integration may make asset returns more volatile, as well as
cause financial instability and contagion.
2. What is the relevance of Bretton Wood Institutions such as the IMF and the World Bank in today’s
globalized world?
Answer:
This organizations are the ones that are helping us if we are in need or help of money so statically they are the
one who basically helped us to become of what we are today.
3. What does the history of the Bretton Woods tell us? How far shall we trust its institution given the
criticism and blunders provided by the Stiglitz?
Answer:
The lack of collaboration was connected to higher import duties and other limitations, protectionist policies,
and government tendencies to surpass rival nations in international commerce. Some nations weaken their
currencies. The latter also increased the likelihood of exchange rate conflicts amongst the concerned countries.
Criteria:
•10 points max (per item) - factual, complete, accurate, concise, comprehensive, and efficient relay of ideas.
 •5 points max (per item) – Creative and Efficient strategies or techniques used by the students in relaying
ideas to the entire class
Activity 3: The MARK-et(45-minute pair activity)
(Outcome 3: Explain the attributes of global corporation through analysis of related
realistic scenarios) PART I:

1. The students will read one of the following scenarios in pairs and decide whether the most significant impact of
the scenario (for you, or the Philippines or the Filipinos) is positive or negative with corresponding explanations
and justifications. Explain your answers per scenario as an output then share it to the class for it to be processed
by the teacher. Groups may also include “ Depends” which may be supported with ideas.
Scenario A: In your local town, one of the main sources of employment for three generations has been agriculture.
The government has recently decided to develop the farmlands into real estate and exclusive subdivisions in order
to attract foreign investors to the country.

Your answer and justifications: Negative, despite the fact that it may help us attract international visitors. Investors
are unsure as of yet, but with farmlands, not only will people maintain their jobs, but because we too need the
food that they are cultivating, the nation may benefit from it.

Scenario B: The shoes that you really like are much cheaper via an online shop in America.

Your answer and justifications: Negative, although being less expensive, there is still a delivery price because
it's in a western nation, so the cost of ordering it will be higher than the initial cost.
Scenario C: The Philippine Government is being pressured by the current economic crisis to import rice from
Taiwan and other nearby countries in the region.
Your answer and justifications: Positive, Because if we help, "sharing is caring," as the phrase goes, they may
now be able to assist us as well in future occurrences that we are unable to understand.
Scenario D: The company that your father works for has recently been taken over by a transnational
corporation with job opportunities in many parts of the world if he is prepared to movie/ relocate.
Your answer and justifications: Negative,The family he will bring with him will need some time to adjust to the
country they will be visiting.
Scenario E: Your mother’s investment funds have been affected by the Global Financial Crisis and she is worried
that she won’t have enough money when she retires.
Your answer and justifications: Positive, She's right to worry, given where her money is at stake. The money
she will require when she retires is at stake in this situation. PART II:

2. How do you analyze the “global” nature of multinational corporations?

Answer:
A significant portion of employment worldwide is produced by multinational firms. Some view them as evil
monopolizers who take advantage of workers and evade taxes. Others see them as generators of efficiency and
invention that add to the wealth of the entire world.
3. Examine the role of regional coalitions in the global economic system.
Answer:
Regional alliances bring together groups from the financial services sector with the aim of helping the financial
services sector's recovery after a natural catastrophe or deliberate assault pertaining to the localities they
serve.
4. What do you think would be the role of the nation-state with respect to the changes in the world economic
system? Answer:
The state has an important role to play in establishing and maintaining an environment that promotes private
entrepreneurship, individual innovation, and social activity. As well as providing a platform for fair competition,
these are vital tasks for the government.
Criteria:
•10 points max (per item) - factual, complete, accurate, concise, comprehensive, and efficient relay of ideas.
•10 points max (per item) – Creative and Efficient strategies or techniques used by the students in relaying
ideas to the entire class

Synthesis: PROCESSING QUESTIONS

1. What is the relevance of Bretton Woods’ institutions such as the IMF and the World Bank in today’s
globalized world?
Answer:
The Bretton Woods Institutions and the IMF and World Bank have an important role to play in
making
globalization work better.
2. What does the history of the Bretton Woods tell us? How far shall we trust its institutions given the criticism
and blunders provided by Stiglitz?
Answer:
The Bretton Woods Agreement established a mechanism wherein gold could be used as the global
standard to establish a fixed currency exchange rate. Stiglitz argues that globalization has not
been pursued properly or with
sufficient caution.
3. How do you analyze the “global” nature of multinational corporations?
Answer: Global employment, investment, and research are heavily influenced by multinational firms.
Others view them as catalysts for innovation and efficiency that add to the wealth of the entire world.

4. Examine the role of regional coalitions in the global economic system.

Answer: Regional alliances bring together groups from the financial services sector with the aim of helping the
financial services sector's recovery after a natural catastrophe or deliberate assault pertaining to the localities
they serve.

5. What do you think would be the role of the nation-state with respect to the changes in the world economic
system?
Answer: The state has an important role to play in establishing and maintaining an environment that promotes
private entrepreneurship, individual innovation, and social activity. As well as providing a platform for fair
competition, these are vital tasks for the government.

Criteria:
•7 points max (per item) - factual, complete, accurate, concise, comprehensive, and efficient relay of ideas.
•3 points max (per item) – Creative and Efficient strategies or techniques used by the students in relaying ideas
to the entire class