2 The Structures of

on
s s Globalization
Le
Intended Learning Outcomes:

At the end of this lesson, the students are expected

to:
1. . write their own definition of economic
globalization;
2. discuss the effects of economic globalization to the
world; and
3. articulate a stance on global economic integration.
Economic Globalization

 This refers to the expanding

interdependence of world
economies.

 It is a historical process, the result of

human innovation and technological
progress (IMF,2008).
Economic Globalization

It refers to the increasing integration

of economies around the world,
particularly through the movement
of goods, services, and capital across
borders (IMF, 2008).
Economic Globalization

The process of making the world

economy an organic system by
extending transnational economic
processes and relations to more and
more countries and by deepening the
economic interdependencies among
them (Szentes’ 2003).
 What is Silk Road?

Silk Road, also called Silk Route,

ancient trade route, linking China with
the West, that carried goods and ideas
between the two great civilizations of 
Rome and China. Silk went westward,
and wools, gold, and silver went east.
4 Interconnected Dimensions of
Economy according 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.
Multinational
Corporations

VS

Transnational
Corporations
Multinational Corporations

This defines that the companies which

handle their business in more than one
country at the same time are known as
multinational companies. Multinational
companies usually have a working which has
full liberty to carry its business having no
barriers to entry or exit in the market.
Transnational
Corporations/Companies

 an enterprise that is involved with the

international production of goods or
services, foreign investments, or
income and asset management in
more than one country.
Agents or Actors that
facilitate Economic
Globalization:

1.Nation-state– acts as a buffer

to negative effects of
globalization.

Government policies and

regulations either permit or
deny the smooth connection
among the world economies.
 2. Global Corporations

A global corporation, also known as

a global company, is coined from
the base term ‘global’, which means
all around the world.
A global company is any company
that operates in at least a country
other than the country where it
originated.
3. International Monetary
System

Refers to internationally agreed

rules, conventions and
institutions for facilitating
international trade, investments,
and flow of capital among
nation-states.
The three (3) Global IMS:

1. The Gold Standard- functions

as a fixed exchange rate regime,
with gold as the only
international reserve and
participating countries determine
the gold content of national
currencies (Benczes,2014).
2. Bretton Woods System- the US dollar
was the only convertible currency.

International Bank for Reconstruction

and Development (IBRD)

International Monetary Fund

(IMF)
3. European Monetary System

(EMS) refers to an
arrangement established in 1979,
whereby members of the
European Economic Community
(now the European Union) agreed
to link their currencies to
encourage monetary stability in
Europe.
 
The EMS's primary objective was to
stabilize inflation and stop large
exchange rate fluctuations between
European countries. This was part of
a wider, overall goal of fostering
economic and political unity in
Europe, which ultimately paved the
way for a common currency, the
euro.
 n o m ic
o es e c o te s o r
D i o n u n i
a li za t
glob e w o rl d ?
s th
divide
 !!!
D
EN
ありがとうございました
Arigatō gozaimas