The Global

Economy
Ms. MARIBETH M. CABREJAS, MAEd.
Learning Objectives:

1. Define World System

2. Define Economic Globalization
3. Identify the actors that facilitate economic
globalization and illustrate the value chain of
Mindanao products
4. Articulate a stance on global economic integration
Modern World System Theory

- attempts to explain why

modernization had such a wide-
ranging and different effects on
the world.
Modern World System Theory
Analysis of the history of the
capitalist world system shows
that it has brought about a
skewed development in which
economic and social disparities
between sections of the world
economy have increased
rather than provided prosperity
for all

Immanuel Maurice Wallerstein

Economic Globalization

- refers to the increasing

interdependence of the world
economies as a result of the
growing scale of cross-border
trade of commodities and
services
Economic Globalization

- flow of international capital and

wide and rapid spread of
technologies
Economic Globalization

- historical process, the result of

human innovation and
technological progress
Economic Globalization

- increasing integration of
economies around the world
particularly through the
movements of goods, services,
and capital across borders
Economic Globalization

- refers to movement of people

(labor) and knowledge
(technology) across
international borders
Economic Globalization
-has several
interconnected
dimensions

István Benczes
Economic Globalization

 World Trade Center ( WTO)

 Business Process Outsourcing (BPO)
World Trade Center ( WTO)

 ensure that the trade flows smoothly ,

predictably and freely as possible and that their
primary purpose is to open trade for the benefit
of all.
 Business Process Outsourcing
(BPO)

 due to the lower cost of producing specific

goods or services in our country, outsourcing has
become a common business strategy for many
multinational firms
Actors that Facilitate Economic
Globalization

1. nation-state
2. Global corporations
3. the creation of International Monetary System
Role of IMF

 restore and sustain the benefits of global

integration by promoting international
economic corporation
Market Integration

- Allows price signals to be transmitted from one

market to another
Well-integrated market

 Prices become more stable

 household security is likely to be improved as
poor households can obtain food at more
affordable prices
 help avoid localized fod shortages
International Financial
Institutions

 play a major role in the social and economic

development programs of nations with
developing or transitional economies
 advising on development projects, funding and
assisting in the implementation of the following
goals and objectives :
International Financial
Institutions

 to reduce global poverty and improve

people’s living conditions and standards
 to support sustainable economic,
social and institutional development
To promote regional cooperation and
integration