THE

GLOBAL ECONOMY
 Steger (2014)
Expansion and intensification of
social relations and consciousness
across world time and space implies
that there are various forms of
connectivity.
Globalization is a multidimensional
phenomenon, creating
• Economic
• Political
• Cultural
• Technological
 ECONOMIC
GLOBALIZATION
Refers to the expanding
interdependence of world
economies.
 Shangquin (2000)
In the Philippines
This attributes to the growing
The flow of international
scale of cross-border trade
capital can be observe
commodities and services, flow
in
foreign direct investments
of international capital, and
(FDI).spread of
wide and rapid
technology.
 Is a type of investment in which a
company establishes a business in
other country for production of goods
or services and still takes part in the
management of that business.
 International Monetary Fund

“It refers to the increasing integration of

economies around the world, particularly
through the movement of goods, services,
and capital across borders” (IMF, 2008).
• Network of trade routes that connected the East and the West

• These routes also let to the discovery of the Philippine Island

• In the contemporary period, foreign expatriates come to the

country to manage their company’s foreign subsidiaries
4 Interconnected Dimensions of Economy
Benczes (2014)

1. Globalization of Trade of Goods and Services

2. Globalization of Financial and Capital Markets
3. Globalization of Technology and Communication
4. Globalization of Production
 Globalization of Trade of
Goods and Services

World Trade Organization

(WTO)
“Ensures that trade flows
as smoothly, predictably,
and freely as possible”
 Globalization of Trade of
Goods and Services

Emergence of china as a
major supplier and
exporter of manufactured
goods
 Globalization of Trade of
Goods and Services

Increasing number of
Business Process Outsourcing
(BPO) companies in the
Philippines
 Globalization of Financial
and Capital Markets

This is seen in cross-listing of

shares on one or more foreign
stock exchange, cross-hedging and
diversification of portfolio, and
round-the-clock trading worldwide
(National Research Council, 1995)
 Globalization of Technology and
Communication

Emphasizes that various

transactions and
interactivities that transpire
instantly due to the internet
and communication
technology
 Globalization of Production

The fourth dimension is best

illustrated by the existence of
Multinational Corporations (MNCs)
and Transnational Corporations
(TNCs).
 Szentes (2003)

The process of "making the world economy

and 'organic system' by extending
transnational economic processes and
relations to more and more countries and by
deepening the economic interdependencies
among them."
 Boyer and Drache (1996)
The role of nation-states as manager of the
national economy is being redefined by
globalization.
Brodie (1996)
Call the government as the "midwives" of
globalization
 Ohmae (1995)
Argues that the nation-state has ceased to exist
as the primary economic organization until in the
global market.

Reich (1999)
Posits that national products, technologies,
corporations, and industries become obsolete.
 International Monetary System

Refers to internationally agreed rules,

conventions, and institutions for facilitating
international trade, investments, and flow of
capital among nation-states.
 3 Global IMS

1. Gold standard
2. Bretton Woods System
3. European Monetary System
 GLOBALIZATION UNITES THE WORLD

1. Allows a worldwide distribution of incomes

2. Economic globalization reduces poverty
3. Globalization creates mutual dependence
between developing and developed countries
 GLOBALIZATION DIVIDES THE WORLD

1. Sources of goods and services are exploited

2. Economic globalization does not benefit all
nations
3. It further divides the world for it leads to
inequality according to expertise, experience and
skills.
 Economic globalization do not only affect one
country but all nations and citizens through the
increasing integration of economies around the
borderless world. The important players are
nation-states, global corporations, and the
international monetary systems. Lastly, some
people believe that this brings unity while others
believe that it furthers the separation among
nation-states around the world