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MODULE 10: MARKET INTEGRATION

“When the American economy sneezes, the rest of the world catches a cold.”
-when there are problems or downturns in the American economy, it tends to have a widespread
impact on the economies of other countries around the world.
FINANCIAL INSTITUTIONS & ECONOMIC ORGANIZATIONS
● Bretton Woods System
○ The major economies in the world had endured because of World War I, the Great
Depression in the 1930s, and World War II.
○ Due to the fear of the repetition of lack of cooperation among nation-states, political
instability, and economic turmoil
○ 5 Key elements of BW
■ The expression of currency in terms of gold or gold value to establish a par value
(Boughton, 2007)
■ The official monetary authority in each country would agree to exchange its own
currency for those of other countries at the established exchange rates, plus or minus
one-percent margin (Broughton, 2007, pp106-107)
■ The establishment of the overseer for the exchange rates; thus the International
Monetary Fund (IMF) was founded.
■ The elimination of restrictions on the currencies of member states in the
international trade.
■ The U.S. dollar became the global currency.
● The General Agreement on Tariffs and Trade (GATT) (1947)
○ an assembly for the meeting of representatives from 23 member countries. It concentrated
on trade goods through multinational trade agreements administered in many “rounds of
negotiation.
● World Trade Organization (WTO)
○ “it was through the Uruguay Round (1986-1993) that an agreement was made to create the
World Trade organization (WTO)”
○ Geneva, Switzerland
○ 164 members representing 98 per cent of world trade at present
○ independent multilateral organization that became in charge of trade in services,
non-tariff-related barriers to trade, and other wider areas of trade liberalization.
○ general idea it is based was that of neoliberalism.
● The International Monetary Fund (IMF) & World Bank
○ were established after the World War II.
○ Their establishment was mainly because of peace and advocacy after the war.
○ IMF MAIN GOAL - to help countries which were in trouble at that time and who could not
obtain by any means.
○ aims revolved around the extermination of poverty and it financed specific projects that
helped them reach their goals
○ Both reputations are dwindling due to corruption
● The Organization for Economic Cooperation and Development (OECD)
○ most fringing club of the most affluent countries in the world.
○ 35 member states s of 2016, with Latvia as its latest members.
○ highly prominent, despite the group having little formal power
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● Organization Petroleum Exporting Countries (OPEC)

○ 1960, is originally comprised of Saudi Arabia, Iraq, Kuwait, Iran, and Venezuela. They are
still a portion of the major exporters of oil in the world these days.
○ established because member countries wanted to rise the price of oil
○ Today, the United Arab Emirated, Algeria, Libya, Qatar, Nigeria, and Indonesia are also
taken in as members.
● European Union (EU)
○ 28 member states
○ Most members in the Eurozone took on the euro as basic currency but some Western
European nations like the Great Britain, Sweden, and Denmark did not
○ Critics insist that the euro increased the price in Eurozones and ended in depressed
economic growth rates, like in Greece, Spain, and Portugal.
○ The policies of the European central Bank are considered to be a remarkable contributor in
these situation.
● North American Free Trade Agreement (NAFTA)
○ trade pact between the United States, Mexico, and Canada, created on January 1, 1994 when
Mexico joined the two other nations. It was first created in 1989 with only Canada and the
U.S. as trading partners.
○ helps in growing and stretching world trade by broadening international cooperation
○ seeks to escalate cooperation for improving working conditions in North America by
bringing down barriers to trade as it expands the markets of the three countries
○ creation of NAFTA caused manufacturing jobs from developed nations (Canada or the U.S)
to transfer to less developed nation (Mexico) in order to reduce the cost of their products
○ NAFTA is blamed for job losses and wage stagnation in the United States.
○ POSITIVE CONSEQUENCES
■ lowered prices by removing tariffs
■ opened up new opportunities for small and medium sized businesses to establish a
name for itself
■ quadrupled trade between the three countries
■ created five million U.S. jobs.
○ NEGATIVE CONSEQUENCES
■ excessive pollution
■ loss of more than 682,000 manufacturing jobs
■ exploitation of workers in Mexico
■ moving Mexican farmers out of business.

MODULE 11: HISTORY OF GLOBAL MARKET INTEGRATION

The Agricultural Revolution
- the first big economic change (Pomeranz)
- When people learned how to domesticate plants and animals
- led to major developments like permanent settlements, trade networks, and population growth.
The Industrial Revolution
- second major economic revolution of the 1800s
- People began working as wage laborers and then becoming more specialized in their skills
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- Overall, productivity went up, standards of living rose, and people had access to a wider variety of
goods due to mass production.
- Negative effects (economic casualties)
- poor women and children worked dangerously for low wages in the factories.
- nineteenth century industrialist were known as robber barons – with more productivity came
greater wealth, but also greater economic inequality.
- late nineteenth century - labor unions was launched
Capitalism
- all natural resources and process of production are privately owned
- points out profit maximization and competition as the prime drivers of efficiency (the need to
surpass competitors
- Capitalist - incentivized to be more efficient by improving the quality of one’s product and reducing
its prices. (Adam Smith named it the “invisible hand” of the market)
Socialism
- government plays and ever larger role
- mode of production are under collective ownership in a socialist system. It refuses capitalism’s
private property and indifferent approaches.
- Property is owned by the government and allocated to all citizens
- emphasizes collective goals, expecting everyone’s basic needs than on individual profit
- a stepping stone toward communism (Karl Marx)
- downside to capitalism is greater income inequality
The Information Revolution
- Current
- Technology has reduced the role of human labor and shifted it from a manufacturing-based
economy to one that is based on service work and production of ideas rather than goods
- Computers and other technologies are starting to substitute many jobs because of automation or
outsourcing jobs offshore.
- Primary Labor market
- jobs that provide many benefits to workers, like high incomes, job security, health insurance,
and retirement packages. (White collar professions)
- Secondary
- provides fewer benefits and include lower skilled jobs and lower-level service sector jobs.
- end to pay less, have more unpredictable schedules, and typically do not offer benefits like
health insurance. (less job security)
Corporations
- Next economic revolution
- organizations that exist as legal entities and have liabilities that are separate from members.
Global Corporations
- No country is completely independent. All are depending on some degree on international trade for
their own success.
- The trade regulatory groups and agreement regulate the flow of goods and services between
countries. They reduce tariffs, which are taxes on imports, and make customs procedures easier.
- often locate their factories in countries which can provide the cheapest labor in order to save up for
expenses in the making of product.
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Multinational or transnational corporations (MNC’s or TNC’s)

- companies that expand across the borders of one country.
Positive Effects of globalization from Transnational Corporations
● Better designation of resources ● Additional employment worldwide
● Underprices products ● Higher-rise of product output
Negative Effects of globalization from Transnational Corporations
● Foster the self-seeking agendas of corporations and give them autonomy
● Control politics and permit workers to be exploited
Diffusion
- Cultural practices and expression are passed between nations, spreading from group to group.
- Ideas and practices extend from where they are familiar and frequently visible to places where they
are new and not often observed.
- Nowadays, mass media and the internet allow the transfer of ideas almost instantaneously.

MODULE 13: THE GLOBAL INTERSTATE SYSTEM

Global Governance in the 21st Century
Specific Factors behind the Emergence of Global Governance
1. The declining power of nation-states.
2. The vast flows of all sorts of things that run into and often right through the borders if
nation-states.
3. Mass migration of people and their entry, often, illegally, into various nation-states.
4. Horrendous events within the nation-states that the states themselves either foment and carry out,
or unable to control. (Nordstrom, 2004)
Effects of Globalization to Gevernments
- One of the key aspects of state sovereignty is the government.
- Sovereignty - or the right to govern one’s own territorial boundaries.
- Civil society - involves the private economy, educational institutions, churches, hospitals, fraternal
organizations, and other non-profit organizations.
Challenges to the Government
● Traditional Challenges
○ External intervention which can generally be described as invasion by other countries.
○ Internal political challenges
○ Regional organizations challenging state autonomy
● National/Identity Movement
○ succeeding challenges
○ It is relevant to perceive that a nation has cultural identity that people adhered to, while a
state is a direct system required to its specific boundaries.
○ Global movements are another example of national or identity movements.
Global Economics - is the third major source of challenge.
Global Economy - demands the state to conform to the rules of free-market capitalism.
Neo Liberal economics/Neo liberal capitalism
- focuses on free trade and dismantling trade barriers. It is a guarantee that governments did not
force prohibitive regulations on corporate presence, as well as on the free movement of capital and
jobs.
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- demands a nation to cooperate in the global market through the free flow of capital, the
privatization of services, and fiscal austerity or constraint.
- seen as a threat, in general, because a state is cannot protect own economic interest as a sovereign
state.
Global Social Movements
- are not seen as a threat but they definitely challenge state sovereignty. Social movements are the
voluntary movements of people or that appear through immeasurab
- Social movements - voluntary movements of people or that appear through immeasurable grassroots
organization.
Different Global Social Movements

- Human rights movements that create a public sentiment, value, and agenda.
- There are specific rights that states cannot abandon or generally, what we call human rights. If a
country determines that they are going to have a certain policy and if that policy break the
international standard of human rights, there is a challenge to the ability of states to fully
implement it.
- The environmental movement which is related to public policy. Blockadia is a specific case or the
state where social flows surfacing in local areas retaliate as a reply to the controlling efforts by the
apparatus of government to protect the interest of neoliberal capitalists.
- Consensus on women’s rights is another example in many countries. Arguably, the biggest conflict
between the West and the fundamentalist Islam is over the role of women in society, as well s
women’s autonomy.
- Rights of personal autonomy, which includes issues on homosexuality, same-sex marriage, and
gender equality.
- There is an increased role in international organization like the United Nations and the
International Criminal Court
- The role of non-governmental organizations like Doctors Without Borders or Amnesty International
- The role of global media

Elements of The State

1. People / Permanent Population - They are permanently present in one location which is
strengthened by a defined territory
2. Territory /Defined Territory – It has clear boundaries and it’s effectively controlled by the
government.
3. Government – It regulates relations among its own people and with other states
4. Sovereignty – This means that the state is a formally constituted sovereign political structure
encompassing people, territory, and its institutions on the one hand, and maintaining its autonomy
from other states on the other hand.
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Principle of national self determination:

- This allow the states to have certain people with their own collective identity. In turn, they should
be allowed to form their own political state.
Concept of the nation-state:
- It is a territorial bounded sovereign institution that governs individuals sharing a collective history,
identity, and culture.
Arguments on nation-state:
● Nation-states continue to be major players on the global stage (Gulpin)
● They retain at least some power in the face of globalization (Conley)
● They vary greatly in “their efficacy in the face of globalization (Mann)
● The rumors of the demise of the nation-state are greatly exaggerated.
● The role of the state is enduring – and even increasing – in advance and industrial societies (Beland)
Major Sources of Collective Insecurity (Beland)
1. Terrorism
2. Economic globalization leading to problems such as outsourcing and pressures toward downsizing,
as well as current economic crisis
3. Threats to national identity due to immigration
4. The spread of global diseases such as AIDS, CoronaVirus

MODULE 13: INSTITUTIONS THAT GOVERN INTERNATIONAL REGULATIONS

Peace Treaties & Military Alliances: The UN and NATO
- The United Nations (UN) is one of the leading organization in the world where nation-states meet
and deliberate
- It stands as an independent actor in global politics.
- basis for its foundation was the restructuring of the world ruined after the Second World
War.
- “United Nations” was coined by the late U.S President Franklin D. Roosevelt in 1942.
- began on October 24, 1945
- Started with 50 representative
- 4 AREAS
- Military issues - Environmental issues
- Economic issues - Human protection
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- made up of close to 200 countries from around the world, 193 member states to be exact
- The central mission of the UN after the war is to maintain international peace and security
- PERMANENT MEMBERS OF UN SECURITY COUNCIL
- US - Russia
- Britain - China
- France
- United Nations Children’s Emergency Fund (UNICEF) -help children around the world.
- The main focus of the UN in terms of economic issues is the reduction of global inequality
- Sustainable Development Growth (SDG)

- Millennium Development Goals (MDG’s) - failed, did not end poverty

- United nations Environment Program (UNEP) - environmental issues
- International Court of Justice (ICJ) - formerly called Hague; in Netherlands;The disputes of the
member countries are settled this court of law
- International Criminal Court (ICC)
- International Tribunal for the Law of the Sea (ITLOS)
- UN High Commissioner for Human RIghts (OHCHR)
- UN Development Groups Human RIghts Mainstreaming Mechanism (UNDG-HRM) EWAN
TINATAMAD NAKO DITO
- Non-Governmental Organizations (NGO’s)
- NGOs are not tied to any country, they can operate freely throughout the world.
- NGO’s Examples
- Red Cross (Red Crescent in Muslim countries)
- Doctors Without Borders - provided three emergency healthcare
- Oxfam - fights famine and disease
- Amnesty International speaks out for human rights and political prisoners, and save
the children helps kid get health care and education.
- World Trade Organization (WTO)
- economic association made up of 162 countries around the world and was created with the
goal of increasing free trade.
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- countries can buy and sell goods from one another without taxes on imports or tariffs.
- North American Free Trade Agreement (NAFTA)
- economic treaty between the United States, Canada, and Mexico in which the three
countries trade freely without tax.
Globalization and Globalism
Globalism - “increase or decline in the degree if globalism” (Nye,2002, p.1)
- the network of connections that surpass distances of different countries in the world.
- Globalism and globalization are different in terms of “thickness” (Nye, 2002). Globalism is thin. As it
becomes thicker, globalization happens.
Globalization - being able to tie up with countries in the world through a more powerful and faster way.
SIlk Road - served as the trade routes among countries in Europe and in Asia, a good example global trade
Military Globalism - immeasurable speed of potential conflict and threat of nuclear war
Social and cultural globalism - entail developments of ideas, information, images, and of people who convey
ideas and information with them (Nye, 2002, p.2).
Informationalism - networks comprise the rudimentary pattern of life, of all kinds of life. (Castells)
- This technological paradigm, associated with computer science and modern telecommunications,
that replaces industrialism
- 3 of the most cutting edge aspect of social world: Technology, Media and Internet
Media Spectacle - sophistication and ubiquity of spectacular visual in televisions.
Barriers that restrict internet and technology
● Lack of electricity ● Weak financial systems
● Illiteracy ● Gov reg
Global citizenship
- Citizenship is associated with rights and obligations, for instance, the right to vote and the
obligation to pay taxes.
- Rights and obligations connect everyone to the state. It is also has to do with our attitudes.
- “as a moral and ethical disposition that can guide the understanding of individuals or groups of
local and global contexts, and it recalls them of their corresponding responsibilities within different
communities.” (Caecilia Johanna van Peski
3 Approaches of Global Economic Resistance
1. Trade Protectionism - systematic government interference in foreign trade by way of tariffs and
non-tariff barriers in order to invigorate domestic producers and warn their foreign competitors’
(McAleese, 2007).
2. Fair Trade - different procedure to economic globalization, which surfaced as a counter to
neoliberal “free trade” principles (Nicholls and Opal, 2005).
- intends to be more moral and unbiased global economic system in which, as a matter of fact,
price is not set by the market; rather, it is negotiated obviously by both producers and
consumers.
3. helping the bottom billion -The decrease of trade barriers would also lessen the economic
marginalization of these people and their nations.
World Social Forum (WSF) - focused on addressing the insufficiency of democracy in economic and
political affairs (Fisher and Ponniah)