“The social institution with one of the biggest

impacts on society is the economy.”

“The social institution with one of the biggest
impacts on society is the economy.”
“The social institution with one of the biggest
impacts on society is the economy.”

• Family
• Religion
• Education
• Economy
• Government
Economic systems vary from one society to
another.
Three sectors of economy
• PRIMARY SECTOR
extracts raw materials from natural
environments
Three sectors of economy
• SECONDARY SECTOR
gains the raw materials and transforms them
into manufactured goods
Economic systems vary from one society to
another.
Three sectors of economy
• TERTIARY SECTOR
involves services rather than goods
International Financial Institutions

"When the American economy sneezes, the rest

of the world catches a cold.”
International Financial Institutions

"When the American economy sneezes, the rest

of the world catches a cold.”

In many parts of the world, international financial institutions (IFIs) play a major
role in the social and economic development programs of nations with developing
or transitional economies. This role includes advising on development projects,
funding them and assisting in their implementation.
Examples of International Financial
Institutions
 The Bretton Woods System
FIVE KEY ELEMENTS
• the currency expressed in terms of gold or gold value
to establish a par value
• "the official monetary authority in each country (a
central bank or its equivalent) would agree to
exchange its own currency for those of other countries
at the established exchange rates, plus or minus a
one-percent margin"
• the establishment of an overseer for these exchange
rates
The General Agreement on Tariffs and Trade (GATT) and the World
Trade Organization (WTO)
 General Agreement on Tariffs and
Trade (GATT)

• forum for the meeting of representatives from

23 member countries
 World Trade Organization (WTO)

• an independent multilateral organization that became

responsible for trade in services, non- tarriff-related
barriers to trade, and other broader areas of trade
liberalization
• The general idea where the WTO is based was that of
neoliberalism
The International Monetary Fund (IMF) and the World Bank

These institutions aimed to help the economic stability of the world.

 International Monetary Fund (IMF)

• main goal was to help countries in trouble at

that time and who could not obtain money by
any means
• lender or a last resort for countries that
needed financial assistance
 World Bank
• main goals revolve around the eradication of
poverty, and it funded specific projects that
helped them reach its goals, especially in
developing countries.
The Organization for Economic Cooperation and Development
(OECD), the Organization of Petroleum Exporting Countries
(OPEC), and the European Union (EU)
 Organization for Economic Cooperation and Development (OECD),

• most encompassing club of the wealthiest

and highly influencial countries in the world
 Organization of Petroleum Exporting
Countries (OPEC),
• was formed because member countries
wanted to increase the price of oil, which in
the past had a relatively low price and had
failed in keeping up with inflation.
Algeria, Angola,
Equatorial Guinea,
Gabon, Iran, Iraq, Kuwait,
Libya, Nigeria, the
Republic of the Congo,
Saudi Arabia, the United
Arab Emirates and
Venezuela.
 European Union (EU)

• made up of 28 member states. Most members

in the Eurozone adopted the euro as the
primary currency, but some Western
European nations like Great Britain, Sweden,
and Denmark did not
 North American Free Trade Agreement (NA

• a trade pact between the United States,

Mexico, and Canada created on January 1, 1994
• helps in developing and expanding world trade
by broadening international cooperation
• aims to increase cooperation for improving
working conditions in North America by
reducing barriers to trade as it expands the
markets of the three countries.
 History of Global Market Integration

Agricultural Revolution
Industrial Revolution
 Agricultural Revolution

domesticate plants and animals

 Industrial Revolution

• rise of industry

• Mass production

• Factories
 Capitalism and Socialism
• Capitalism is a system in which all natural
resources and means of production are
privately owned.

• socialist system, the means of production are

under collective ownership, property is owned
by the government and allocated to all citizens,
not only those with the money to afford it.