REVIEWER IN opportunities economic the use for

CONTEMPORARY WORLD processes the future

(PRELIM) Growth for Reorganizing ii. Financial – a
countries social processes financial
Globalization – came from the root Development Failure to focus asset that is
word “globalize” which is the of the nations on one’s country used to be
interaction and integration of sold for
companies, people, and government Narrow and Exclusive higher cost
- Internationalization is a new d. Workforce – number
DEFINITIONS OF competitive way to being of people who are
GLOBALIZATION: globalized (Robert Cox) employed and who
Manfred Steger – expansion and - Limited point of view are looking for work
intensification - This usually starts trade wars i. Labor Force
Bauman – time immemorial - Protectionist stand is the age
Thomas Larsson – world shrinkage who are
Martin Khor – colonization ADVANTAGE DISADVANTA working and
S GES are willing to
TYPES OF GLOBALIZATION Focuses on one Trade wars work
ECONOMIC GLOBALIZATION country 4. Liberalization of Import and
- Trade and exchange of Enhancement Limited point of Export System – liberating
resources of policies view import and export system
- Movement of technology, Supported by Failure to 5. Privatization – equalization of
information, services, and people establish distribution by minimizing
capital connections ownership of production and
- Product, finance, markets, Gives distribution
corporations, and labor importance to 6. Increased collaborations –
the people and entrepreneurs collaborate
SOCIAL GLOBALIZATION the cultures 7. Economic Reforms – fiscal
- Human interaction and w/in the and financial reforms
cultural communities country
- Family, religion, work, and MERITS AND DEMERITS OF
education NATURE OF GLOBALIZATION GLOBALIZATION
- Information (meaning this is 1. Liberalization – freedom of MERITS
the fast flow of information entrepreneurs to venture local 1. Peaceful Relations
due to social media and or abroad “removing of 2. Employment
internet) controls” 3. Education
2. Free Trade – free flow trade 4. Product Quality
POLITICAL GLOBALIZATION relations 5. Cheaper price
- Political cooperation where 3. Globalization of Economic 6. Communication
countries unite in trade blocs Activity: 7. Transportation
- TRADE BLOCS – groups of a. International Trades – 8. GDP Increase
countries that provide rules refers to the trade a. Gross Domestic
for trade to all participating between at least two Product are products
countries countries produced within the
i. Import – country
*ENVIRONMENTAL from other b. Gross National
GLOBALIZATION* countries Product products that
- Internationally coordinated ii. Export – to are made outside of
rules and regulations other the country
regarding environmental countries c. Tariff -
protection b. Production – refers to 9. Free Trade – policy where
transforming countries levy taxes, quota,
The purpose of studying globalization intangible and and subsidies
is to understand the differences and tangible materials to 10. Tavel & Tourism
similarities of cultures and how we goods and services 11. External Borrowing
are connected in a separate world. i. Tangible
Inputs – DEMERITS
DEFINING GLOBALIZATION labor, capital, 1. Health Issues
raw a. Chronic Illnesses
Broad and Inclusive materials, b. Environmental
- Borderless World (Ohmae) land Illnesses
- This perspective sees how we ii. Intangible 2. Loss of Culture
can become connected with Inputs – 3. Uneven Wealth Distribution
each other ideas, 4. Environmental Degradation
- Defines the opportunities information, 5. Disparity – bigger companies
- May have political neglect knowledge move to areas where there is
ADVANTAGE DISADVANTA c. Investment – asset or lower cost labor while those
S GES item accrued w/ the who are starting are just
Equal Reshaping of goal of generating getting it for higher rates
opportunities government income and 6. Conflicts
institutions to recognition 7. Cut Throat Competition –
cater everyone i. Economic – the bigger the authority a
Secured Reorganizing purchase for
 country has, the louder their c. Difficult to stop other becomes
way of advertising d. Continuous communal
a. Technological fluctuations 3. Ideology
Synergism a. Global Imaginary –
Liquidity and Solidity are two people’s growing
ASPECTS OF GLOBALIZATION interacting forces. Yet, one prevails consciousness that
Cultural Globalization that globalization is liquidity. they are not settled in
- Transmission of ideas, the parameters that
meanings and values FLOWS OF GLOBALIZATION they were placed on
- Common consumption 1. Culture Flows – different b. 6 core domains
relating to the use of social beliefs, music, food, etc. i. Nobody
media and international travel 2. Information Flows – refers to controls
- Spread of language, arts, the exchanges of knowledge globalization
information, food, ideas and and information from ii. Liberalizatio
technology anywhere n and
Economic Globalization integration of
- Economic mixing and CONCEPTS OF markets
interdependence that has flow GLOBALIZATION iii. Inevitable
of goods, services, and 1. Process and
technology a. Globalization – a set irreversible
Industrial Globalization of social processes iv. Benefits
- Specialization – countries that appear to everyone
producing that gives them the transform currently v. Democracy
benefit where they have weakening nationality vi. Requires war
competitive advantage to globality. on terror
- Eg. US specializes in military b. It is a process that is
equipment and Singapore driven by THEORETICAL PARADIGMS
specializes in pharmaceutical international trade WORLD SYSTEMS – views
Financial Globalization that is aided by globalization as a virtual rebirth and
- Emergence of worldwide information spread of world capitalism
financial markets and better technology
access to external financing c. Movement from one The Capitalist World
for corporate, national, and point to another 1. Core – powerful and
sub-national borrowers (Steger) developed
- IMF and the world bank i. Dynamism- 2. Periphery – subordinate to
- Foreign investors fund the Transformati core where they are colonized
projects within the country on- 3. Semi-periphery – either
Informational Globalization movement- moved down or moved up
- Information flows to many desctruction-
geographical areas in the creation THE GLOBAL ECONOMY
world d. Believed to have Economy – interrelated production,
Ecological Globalization existing through the distribution, and consumption;
- Ecological effects beginning of man determines scarcity
Globalization in Politics e. At the end of the 19th o Economic System –
- Resolving the rights and the century production, distribution and
law i. Gregorian consumption
Globalization in Technology Calendar Global Economy – sum of activities
- Communication despite the ii. Prime that take place in between both
distance Meridian countries
Geographical Globalization iii. International Economics – study of how humans
- Exploring different countries Date Line make decisions in the face of scarcity
through migration iv. World Time o Societal, Business, Family,
- MIGRATION zones Individual
2. Condition Scarcity – wants exceeds what is
METAPHORS OF a. Globality – social available
GLOBALIZATION condition with tight o Ultimate scarcity is TIME
1. SOLID economic and
a. Barriers that hinder political TWO TYPES OF ECONOMICS
globalization which interconnection and 1. Microeconomics
can be manmade or flow that makes the - Behavior of individual
natural current economic consumers and producers
b. Natural – mountains, boundaries 2. Macroeconomics
natural calamities irrelevant ; future - Overall economies that is
c. Manmade – nine dash social condition ; regional, national,
line, great wall of determines the international
China, berlin wall endpoint that
2. LIQUID precludes any INTERNATIONAL TRADE
a. Ease in flow of development - Exchange of goods across
movement of people, b. This is where borders
things, information globalization has its - Competition and pricing
b. Space and Time are limits that people also - Supports that no country can
crucial elements of be individualistic and supply on its own
globalization competitive while the
ADVANTAGES OF
INTERNATIONAL TRADES
Michael P. Todaro and Stephen C.
Smith; Lieberman, Marc, & Robert
Hall
Benefits to both importers and
exporters
(a) Gains where products are
available in regions that lack
(b) Short specialization gains
where production increases
purchasing power
(c) Result of dynamic gains is
being facilitated with
technology
(d) Political Spin Offs prevent
hostilities and conflicts
(e) Debt relief
THEORIES OF INTERNATIONAL
TRADES
1. Mercantilism
- Gold and silver accumulation
is the power and prestige
- Reduce import and increase
export so that there is increase
employment
- Trade Surplus – basis of
strength where a country
gains from exports than
spending imports
2. Comparative Advantage
Theory
- Competitive is products are
efficiently produced
- EFFICIENT – lower price,
finest product quality,
responsiveness of the product
availability
- What you do best giving up
the least
3. Absolute Advantage Theory
- A country producing products
that is not available in other
countries is a total advantage
4. Purchasing Power Parity
Theory
- Gustav Cassel states that in
order to prevail equilibrium
level between to countries,
there should be one currency
REGULATION PLACED ON
TRADES (as protectionist)
1. Tariff
- tax imposed by the
government on foreign goods
produced abroad and sent
domestically
- tax imposed only to goods
traded internationally
2. Quota
- Limit on quantity that is
produced and sold at a certain
time
- It is non-tariff that refers to
limits that good consumes to
reduce consumption
3. Subsidy
- Government gives funds to
domestic producers to limit
dependence on imports and
makes local producers to
become competitive to lessen
reliance on imports
4. Export Subsidy
- Financial assistance that is
provided by a country to give
priority attention to porters
COMPONENTS OF
INTERNATIONAL TRADE
1. Import
2. Exports
FACTORS AFFECTING
ECONOMIC DEVELOPMENT
1. Human Resources
2. Natural Resources
3. Technological Development
4. Social and Political Factors
a. DIVISION OF
LABOR – letting a
worker focus on
specific tasks
b. Social Factors –
customs, tradition,
and beliefs
c. Political factors –
participation of
government
d. GEOCULTURE
CAPITALISM – private ownership
for private profit (gain)
Adam Smith – father of modern
capitalism and influenced by Francois
Quesnay
Francois Quesnay – founder of
physiocratic school and based his
doctrines in natural laws, law and
orders
- Claimed that natural
resources are vital
economic growth
- Argued that commerce and
industry is ineffective and
that only agriculture can raise
wealth
Laissez Faire – governmental non
interference
CHARACTERISTICS OF
CAPITALISM
1. Right to own property
2. Freedom of competition
3. Freedom of Enterprise
4. Freedom of Cooperation
Economic Recession – downturn in
GNP and a significant decline in
economic activity for more than two
quarters
Economic Depression – is a
prolonged unemployment, low output
and investment. A severe recession for
more than three years and decline in
GDP of at least 10%
GNP or Gross National Product –
products and services turned out for a
certain period of time where these are
products made by citizen abroad and
domestically
GDP or Gross Domestic Product –
goods within the country
WORLD’S FREE TRADE AREAS
1. NAFTA
- North American free trade
agreement
- Canada is the best exporter
- January 1, 1994
- Three Nations: Canada,
Mexico, US
2. AFTA
- Association of Southeast
Asian Nations Free Trade
Area
- ORIGINAL MEMBERS:
Brunei, Thailand, Singapore,
Philippines, Malaysia
- RECENT: Myanmar, Laos,
Vietnam, Cambodia
3. European Union
- Single market
- No tariffs, quota or taxes
FREE TRADE ISSUES
1. Protectionism – shielding
country’s products from
competition
2. Economic Nationalism and
Economic Patriotism –
emphasized country’s
intervention with tariffs and
restriction
a. Nationalism
b. Patriotism
INTERNATIONAL
FINANCIAL INSTITUTION
- International nonprofit
in agencies are major financers
World Bank
- Multi national financing
company est. during WWII
for long term capital
- Planning and financing
economic development
Purpose:
1. Assist in reconstruction and
development
2. Promote private foreign
investment w/ loans
3. Long range balanced growth
and equilibrium in balance
4. Conduct operations with due
regards to international
investment
5. Wartime to peacetime
economy
International Monetary Fund
- Joined by 182 countries
- Buying and selling their
currencies
- Condition where they do
economic reforms