ECONOMIC

GLOBALIZATION
Economic Globalization- refers to the
spread of TRADE, TRANSPORTATION, and
COMMUNICATION systems on global scale
in the interest of promoting international
commerce.

Globalization- is the word uses to describe

the growing interdependence of the
world’s economies. Cultures, and
populations. Brought about by cross-
border trade in goods and services,
technology, and flow of investment,
people, and information.
 TWO TYPES OF ECONOMIES

1.PROTECTIONISM
-Protecting one’s economy from foreign
competition by creating trade barriers.

2.TRADE LIBERALIZATION
-Reducing trade barriers to make international trade
easier between countries.
TRADE BARRIERS
-Required fees on import/export of goods.

For example:
Importation of candy from Country A to Country B

Tariff of 5
CANDY pesos on CANDY
P1.00 imported P6.00
candy
VARIOUS WAYS TO MAKE TRADE EASIER

FREE TRADE
-Trading of goods and services between two or more countries without tariffs or
taxes.

TRADE BLOC
-Agreement made between government to reduce or eliminate trade barriers.

OUTSOURCING
-Manufacturing jobs transfer from developed nations to developing nation reduce the
cost of products.
OTHER SIGNIFICANT GLOBAL ACTORS
-WORLD BANK
-INTERNATIONAL MONETARY FUND
-WORLD TRADE ORGANIZATION

-All three support the expansion of international trade,

discouraged protectionism and prevent conflicts that
may lead to another world war.