UNIT 2 - The Structures

of Globalization

HANNAH JIREH O. NANGITOY

Reporter
 • Eradication of extreme proverty and
hunger
• Achieving universal primary
8 Millennium education
• Promoting gender equality and
Development women empowerment
Goals of UN • Reducing child mortality
• Improving maternal health
• Combating diseases like HIV/AIDS and
malaria
• Ensuring environmental sustainability
• Having global partnership for
development
 Economic Globalization

• -refers to the increasing interdependence of

world economies as a result of the growing scale
of cross-border trade of commodities and
services,flow of international capital, and wide
raprd spread of technologies.
• -it reflects the continuing expansion and mutual
integration of market frontiers, and is an
irreversible trend for the economic development
in the whole world at the turn of the millennium.
 Two types of economy

a. Protectionism b. Trade liberalization/free trade

• - means a policy of systematic • -Goods and services move
government intervention in around the world more
foreign trade with the objective
of encouraging domestic
easily than ever.
production. • -removal or reduction of
• - this encouragement involves restrictions or barriers on
giving preferential treatment to the free exchange of goods
domestic producers and between nations.
discriminating against foreign
competitors.
• -it usually comes in the form of
tariff and quotas
 Fair Trade- it is the concern for the social economic and
environmental well-being of marginalized small producers
• Economic globalization and sustainable
development
Sustainable development
-the development of our world today by using
the earth’s resources and the preservation of
such resources for the future.
• Environmental Degradation
-This is the period of human history that made
possible the cycle of efficiency.
-Effeciency means finding the quikest possible
way of producing large amounts of a particular
product. This process made buying of good
easier for the people.
Example
Destruction of ecosystems, habitat
detruction,extinction of wildlife, pollution.
•Food security
-Delivering sufficient food to entire world population. The
security of food also means the sustainablity of society
such as population growth, climate chane, water scarcity,
and agriculture.
•Economic globalization, poverty and inequality
Multiplier effect
-means increase in one economic activity can lead to an
increase in other economic activities.
Inequality is concerned with the full disribution of well-
being. Poverty is focused on the lower end of the
distribution only.
•Global income inequality
-globalization and inequality are closely related. Income
inequality is the gap between rich and poor. It is the state
of an economy in which the shares of total income earned
by the rich and poor are highly unequal.
 
 The Modern • Core
World System - Described high-income nations of the
world economy.
Immanuel
• Periphery
Wallenstein
-Low income countries, whose natural
Was an American
resources and labor support the
sociologist and wealthier countries, first as colonies and
economic historian. He now by working for multinational
is perhaps best known corporations under neo-colonialism.
for his development of
ways, which tend to reinforce each other.
the general approach
• Semi-periphery
in sociology which led
to the emergence of -middle income countries such as India
his world-systems or Brazil due to their closer ties to the
approach. global economic core.
 
LESSON 2 - Market Integration
 Three Sector of Economic System
• Primary sector-extract raw materials from natural environment
Example
• Mining, forestry, agriculture, hunting, fishing, farming
• Secondary sector- gains the raw materials and transforms them into manufactured
good.
Example:
Manufacturing, construction
• Tertiary sector- involves service rather than goods. Includes activities which
renders services to the other two sectors. These activities dont produce a good but
a support for the production process.
Example:
Professionals, entertainment, transporatation.
• International Financial Instittions
World economies have been brought closer together by globalization. It is
reflected in the phrase “when the American economy sneezes, the rest of the
world catches cold.”
 The Bretton Woods System

• Five key elements

- Expression of currency in terms of gold or gold value to
establish a par value
- The official monetary authority in each country would agree to
exchange its own currency for those of other countries at the
established exchange rates, plus or minus a one-percent
margin.
- Establishment of an overseer for these exchange rates.
- Eliminating restrictions on the currencies of member statesin
the international trade.
- The U.S dollar became the global curency.
• International Monetary Fund • Word Trade Oragnaization
- promote global monetary (WTO)
cooperation and international financial
stability. - headquartes is located in
- its main goal was to help countries Geneva, Switzerland with 152
which were in trouble at that time and member staes as of 2008.
who could not obtain money by any • Global Corporations
means.
• World Bank
Multinational or transnational
corporation (MNCs or TNCs)
- grant long-term loans for the
economic development of less developed - companies that extend
countires and the reconstruction of war- beyond the boarders of one
torn countries in Europe. country.
• General Agreement on Traiffs and
Trade (GATT)
-was established in 1947 and it was a
forum for the meeting of representatives
from 23 member countries.
• The Organization for Economic
Cooperation and Development
(OECD)
- the most encompassing club of
the richest countries in the world
with 35 member states as of 2016,
with Latvia as its latest member.
• The Organization of Petroleum
Exporting Countries (OPEC)
-originally comprised of Saudi
Arabia, Iraq, Kuwait, Iran, Venezuela.
Thay are still part of the major
exportes of oil in the world today.
 
• European Union (EU)
-aim to ensure the free
movement of people, goods,
services, and capital within
the internal market.
• North American free
Trade Agreement (NAFTA)
-is a trade pact between the
United States, Mexico, and
Canada created on January
1, 1994
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