The Globalization

of World Economics
 Economic
Globalization
- Spread of.. 2 types:
• Trade
• Transportation Protectionism – protecting one’s economy from
• Communication foreign competition by creating trade barriers
On a global scale for the
interest of promoting Trade Liberalization – reducing trade barriers to
international commerce. make international trade easier between countries

2
To make things easier:

- Free trade - trading of goods or services between

countries without tariff of taxes

- Trade bloc – agreement made between governments to

reduce or eliminate trade barriers
World Bank International World Trade
Group Monetary Fund Organization
-increases - Provides short
- Deals with
term loans to
growth, insurances when rules of trade
reduces emergency occurs
within nations
poverty
Global Economic Integration – efforts
to reduce trade and investment
barriers around the world

5
6
 International Trading Systems
Silk Road – oldest known international trade route
– most profitable
– international, it was not truly “global”

When did full Economic Globalization begin?

– According to Dennis O. Flynn and Arturo
Giraldez, age of globalization began when all
important populated continents began to exchange
products continuously.
GALLEON
TRADE
 Global market integration
means that price differences
between countries are eliminated as
all markets become one. One way to the
progress of globalization is to look at
trends how prices converge or become
similar across countries.
What is the effect of market
integration to the economy?
Economic integration aims to reduce
costs for both consumers and producers and
to increase trade between the countries
involved in the agreement. Economic
integration is sometimes referred to as
regional integration as it often occurs among
neighboring nations.
11
12
13