Globalization of

Economic Relations
Reminder:

The Activity on Unit 1

HBL modules are already printed and
ready to be delivered
Introduction

 One of the most cited definitions of Economic

Globalization is that it is a historical process, the result of
human innovation and technological progress. It refers to
the increasing integration of economies around the world,
particularly though the movement of goods, services, and
capital across borders.
Learning Outcome

Describe the positive outlook of

Multilateralism in Global Trading
What is Economic Globalization
Factors that Affect Economic Globalization
What is Economic Globalization

 “it refers to the movement of people (labor) and knowledge

(technology) across international borders.” (International Monetary
Fund/ IMF)
 is part of man’s history resulting from innovation and technology
coupled with integration of different economies with freedom to
move goods, services, and capital across the borders of these
integrated economies.
Nature of Economic Globalization

The Nature of Economic Globalization promotes the

following:
1. the globalization of trade of goods and services;
2. the globalization of financial and capital markets;
3. the globalization of technology and communication; and
4. the globalization of production
 The
European
Union
Association of Southeast Asian
Nations(ASEAN)

This Photo by Unknown Author is licensed under CC BY

This Photo by Unknown Author is licensed under CC BY-SA
Factors that Affect Economic
Globalization
International Monetary Fund (IMF)
International Trade and Trade Policies
Multilateralism
International Monetary Fund

 The IMF was conceived in July 1944 at the United Nations Bretton
Woods Conference in New Hampshire, United States. The 44
countries in attendance sought to build a framework for international
economic cooperation and avoid repeating the competitive currency
devaluations that contributed to the Great Depression of the 1930s.
 The IMF's primary mission is to ensure the stability of the
international monetary system—the system of exchange rates and
international payments that enables countries and their citizens to
transact with each other.
International Trade and Trade Policies

 Is a policy related to trading across national boundaries. A

government establishes an international trade policy that
encompasses actions they will take to protect the best
interests of their citizens and companies. Some of the
major actions governments take are free trade policies or
tariffs.
What is Multilateralism

 Process of organizing relations between groups of three or more

states. It is generally considered to comprise certain qualitative
elements or principles that shape the character of the arrangement or
institution.
 Those principles are an indivisibility of interests among participants,
a commitment to diffuse reciprocity, and a system of dispute
settlement intended to enforce a particular mode of behaviour.
Factors on Multilateralism

 Multilateral trade agreements strengthen the global

economy by making developing countries
competitive.
 They standardize import and export procedures,
giving economic benefits to all member nations.
 Their complexity helps those that can take
advantage of globalization.
World Trade
Organizations
 The World Trade Organization (WTO) is
the only global international organization
dealing with the rules of trade between
nations.
 The goal is to ensure that trade flows as
smoothly, predictably and freely as
possible.
This Photo by Unknown Author is licensed under CC BY-SA
The most Important Factor in Economic
Globalization

M_ M B_ _ S_ I_