THE GLOBAL ECONOMY

How “globalized” are you?

• Make a quick inventory of things in your

room, including those that you are wearing
• Classify and quantify your possessions as to
where these were made
• INTO: “Philippine-made” or Foreign-made
products/brands
• Quantify these in percentage
How “globalized” are you?
PERCENTAGE OF ITEMS BASED ON THE TOTAL
NUMBER OF ITEMS AS TO:
COUNTRY WHERE
ITEM THE PRODUCT WAS NO. OF
MADE COUNTRY PERCENTAGE
ITEMS

bag france France 2 40

shoes france Finland 1 20
cellphone finland China 1 20
Tripod China Phil 1 20
wallet philippines
100%
How “globalized” are you?

1. Which country has the largest product that has been

produced in your possession?
2. Why is the country cited leading in the mass production of
products?
3. Give the advantages and disadvantages of mass production
that is controlled by one country?
How “globalized” are you?

1. Which country has the largest product that has been

produced in your possession?
2. Why is the country cited leading in the mass production of
products?
3. Give the advantages and disadvantages of mass production
that is controlled by one country?
GLOBAL ECONOMY

Countries trade due to:

• Lack of resources
• Cannot satisfy their own needs and wants

As countries developed their resources, they

trade it for the resources they need
 Economic Globalization
The increasing interdependence of world
economies as a result of:
• Growing scale of cross-border trade
• Flow of international capital
• Wide and rapid spread of technologies
 Globe trade emerged when:
1. All heavily populated continents began to
exchange products continuously
2. Did so in values sufficient to generate
lasting impacts on all trading partners
In economic globalization…

Companies seek the greatest possibility of efficient

and maximized profits involving many regions and
localities to global production

Free trade will be necessary condition for the

development of production networks.
The global actors
• International Economic and Financial Organisations.
• International Governmental Organisations (IGOs)
• Media.
• Multilateral Development Banks.
• Nation-States.
• Non-Governmental Organisations (NGOs)
• Trans-National Corporations (TNCs)
• United Nations (UN) System
The global actors
Multinational Corporation
- also called transnational corporation, any
corporation that is registered and operates in
more than one country at a time
The global actors
International Monetary Fund

The IMF believes that globalization has great

potential to contribute to the growth that is
essential to achieve a sustained reduction of
global poverty https://www.imf.org/external/np/exr/ib/2002/031502.
htm#:~:text=The%20IMF%20seeks%20to
%20mitigate,capital%20markets%2C%20while%20reducing
%20their
The global actors
North Atlantic Treaty Organization (NATO)

NATO promotes democratic values and enables

members to consult and cooperate on defense
and security-related issues to solve problems,
build trust and, in the long run, prevent conflict.
The global actors
World Trade Organization (WTO)
The World Trade Organization (WTO) is the only global
international organization dealing with the rules of
trade between nations. At its heart are the WTO
agreements, negotiated and signed by the bulk of the
world’s trading nations and ratified in their
parliaments. The goal is to ensure that trade flows as
smoothly, predictably and freely as possible.
Global Economic Stability Could Be Difficult To Recover In
The Wake Of COVID-19 Pandemic, Finds Study

Analysis from the University of

Surrey suggests that the economies of
countries such as America, the United
Kingdom and Germany should
prepare for a long slow recovery with
prolonged periods of instability.
https://covid19.tabipacademy.com/2020/07/01/global-
economic-stability-could-be-difficult-to-recover-in-the-
wake-of-covid-19-pandemic-finds-study/