THE GLOBAL ECONOMY

LESSON 3
MARKETS
A “Market” can be defined as a total number of buyers and sellers in the region or area covered by the
attention. The reason or area may include earth, states, country or cities.

It is also any organization whereby buyers and sellers of a good kept in close touch with each other,
and has for commodities

(i) consumers

(ii) sellers

(iii) a commodity

(iv) a price
 TYPES OF MARKET
TYPES OF MARKET STRUCTURES
STRUCTURES
erfect Competition
When we talk about the perfect competition market it means that there is a massive number of buyers
and sellers. When it comes to competition all the sellers in the market are smaller in competition with
each other because all the product in this market are completely identical.

“PALENGKE”
Monopolistic Competition
In a monopolistic competition, a large number of buyers and sellers exist but they do not sell the same
product. Actually, all the products in this market are a similar but slightly different type of product
where customer can go for one over the other product. But the seller can charge an extra amount for
the product because they have market power. Now at some point, the seller becomes the price setter
Oligopoly
In this type of market, there are only a few numbers of firm or seller but the customer is much larger
than those firm. The seller has the market influence as they set the price of the product. In which case
the customer becomes the price taker. Also, the firm collaborates with each other to compete with
others. While the seller sets the price of the product, they maximize their profit. In this kind of market,
it is more difficult to enter because the new firm finds itself quite difficult to establish.
Monopoly
In this type of market, there is only one seller/firm, so the single seller controls the whole market and
sets the price according to their need because it has the power market. In this case, buyers do not have
any other choice so they have to pay the price set by the seller. So, in this competitive market
customers do not have power and the market forces become irrelevant

“ONE SELLER, MANY BUYERS”

Monopsony
As compared other types of market, this market does not have a large number of buyers and sellers. In
this market, there is the only buyer to particular products and services. So, the customer has all the
power to set the price of those particular products and services making the consumer the price setter
and the firm becomes the price taker.
TYPES OF MARKETS
Economic Markets
Some of the famous types of markets included in these areas – Financial Market, Media market,
Foreign exchange market, Stock market, Real estate marketing, agriculture marketing, Niche market,
Energy market, etc.
Physical Markets
Example of this kind of market can include these – Bazaar, Fish market, Grocery market, Market town,
Street market, Supermarket, Public market, Farmer’s market, etc.
Foreign Exchange Market
it is a global market that trades the currency value in a different mode where things like buying, selling
and exchanging of different currencies at the current valuation or price. This enables people to
exchange their money with ease of exchange facility.
Stock Markets
It is also known as the share market or equity market. It is the types of markets where people buy and
sell the share and stock which let them claim on business as a shareholder. Stock markets may include
securities funds and some private funds too. Stock exchange market list shares of common equity and
other securities too.
Financial Markets
Financial markets are the types of the market where people trade financial securities as well as
commodity, and at low value or prices which depends on supply and demand chain. This types of the
market include physical location and an electronics system as well. The term financial markets often
used to refer raise in finance.
Media Markets
The media market is also known as the newscast market, media field, labeled market area and TV
marketing area. Here people are being offered similar television or radio station. It also includes
different types of offers like newspapers and online content.
Agriculture Marketing
It generally covers the services used to transport or moving the agriculture products from farm to
consumer. It is also a wellorganized system to manage harvesting, grading, packing, storage, transport,
food processing, distribution, and sale.
 MARKET
INTEGRATION
Market Integration or global market integration does not only pertain
to fusion of markets into one but also includes the elimination of
barriers that cause price differences among states. The rise of global
corporations coupled with the forging of corporate global networks
imbued with neo-liberal policies facilitates the process of global
market integration
GLOBAL TRADE
In the 19th century, global trade was highly integrated with the transport
revolution accompanied by technological change and the opening of Suez Canal.
However, the Great Depression in the 1930s witnessed the promulgation and
implementation of reverse economic policies. States began to adopt protective
measures during the Great Depression in the 1930s. Locals started to patronize
domestically produced commodities and consumption of foreign-produced goods
declined dramatically. And in the 20th century, transportation cost started to fall
and some trade barriers are reduced hence, more and more corporations extend
their reach by investing their home countries.
GLOBAL CORPORATION
International Companies
are the importers and exporters and exporters, typically without
investment outside of their home country.
Multinational Companies
have investment in other countries, but do not have coordinated product offerings
in each country. They are more focused on adapting their products and services
to each individual local market.
Global Companies
have invested in and are present in many countries. They typically market their
products and services to each individual local market.
Transnational Companies
are more complex organizations which have invested in foreign operations, have a central corporate
facility but give decision making, research and development and marketing powers to each individual
foreign market.
NATION AND STATE

LESSON 4
WHAT IS A STATE?
“State, as a political entity, has been viewed as a group of
people, more or less numerous, permanently occupying a
fixed territory, having an organized government, and
enjoying independence and sovereignty from external
control”.
Max Weber (1997)

defined state as ‘a compulsory political

organization with continuous operation which
will be called “a state” if and in so far as its
administrative staff successfully upholds a claim
to the monopoly of the legitimate use of physical
force in the enforcement of its order’.
HEDLEY BULL (1995)

defined state as ‘an independent political

communities each of which possesses a
government and asserts sovereignty in relation to a
particular portion of the earth’s surface and
particular segment of the human population’.

T
WHAT IS A NATION?
“Nation defined as an aggregation of people, existing in the form of
organized society, usually inhabiting a distinct portion of the earth,
speaking the same language, using the same customs, possessing
historic continuity, and disguised from other like groups by their
racial origin and characteristics, and generally but not necessarily,
living under the dame government and sovereignty”.
 NATION VS. STATE
NATION
Nation is a large body of people united
by common origin, history, culture,
ethnicity, or language.
A nation is a group of people with
common characteristics, such as a
common language, ethnicity, or religion.
STATE
A state is an independent political entity
with clear geographic boundaries.
A state is a territorial entity, with a
permanent population, defined borders,
and a government that effectively
controls the territory.
ELEMENTS OF THE STATE
People
This refers to the entire body of
those citizens of a state who are
invested with political power for
political purposes. The number
should be large enough to be
self sufficient and small enough
to be well governed
Territory

It refers to the geographical

area under the jurisdiction of
another country or sovereign
power or state. A state must
have a territory sufficient in
extent to provide for its
maintenance and growth
Government

It is the totality of authorities which

rule a society by prescribing and
carrying out fundamental rules which
regulate the freedom of its members.
It is composed of the executive,
legislative, judiciary and
administrators with corresponding
roles in administering the affairs of
the state.
Sovereignty

It is the supreme, absolute and

uncontrollable power by
which an independent state is
governed. It is the paramount
control of the constitution and
the frame of government and
its administration
RISE OF INTERNATIONAL LAW
AND UNIVERSAL PRINCIPLES
The end of the Second World War in 1945 led to a significant turn away from the model of state
sovereignty dating back to the Peace of Westphalia in 1648 that championed absolute state autonomy
and foreclosed humanitarian intervention. The failure of the League of Nations before the war only
strengthened the collective will among world leaders to start another international organization that
would facilitate global dialogue and promote human rights and fundamental freedoms. Leaders of the
Allies began framing themselves collectively as the………
UNITED NATIONS (UN)
UN FUNCTIONS
To preserve international peace and security
To develop friendly relations among nations based on respect for the principle of equal rights
and self-determination of peoples, and to take other appropriate measures to strengthen
universal peace
To achieve international co-operation in solving international problems of an economic,
social, cultural, or humanitarian character, and in promoting and encouraging respect for
human rights and for fundamental freedoms for all without distinction as to race, sex,
language, or religion
To be a center for harmonizing the actions of nations in the attainment of these common ends
 THE DOCTRINE OF “RESPONSIBILITY
TO PROTECT” (R2P)
The United Nations and its many interlocking institutions also work with countries around the world to
advance human rights and humanitarian values, and the Security Council itself found consensus to
follow the doctrine of ‘responsibility to protect’ (R2P) when it authorized in early 2011 a ‘no-fly zone’

The Responsibility to Protect – known as R2P – is an international norm that seeks to ensure
that the international community never again fails to halt the mass atrocity crimes of
genocide, war crimes, ethnic cleansing and crimes against humanity.
STATES AS TARGETS: THE RISE
OF TRANSNATIONAL ACTIVISM
 TRANSNATIONAL ACTIVISM
- is a heterogeneous field of social contention and comprises of a
range of different individuals. A form of response to globalization is
the structuring of transnational actions, networks and organizations; a
tendency aiming at struggling for more social justice and
transformation.
 THE DECLINE OF POWER OF THE STATE
The concept of the state that it “enjoys freedom from external control”, has considerably diminished
due to globalization. Globalization plays a vital role in reconfiguring the state. The process of
globalization undoubtedly contributes to the change and reduction of the state sovereign powers.
FACTORS CONTRIBUTING TO
THE DECLINE OF THE STATE
Accelerating pace of technological
change
Escalation of capital cost of
technological innovations
Humanitarian factor: human rights, citizens’ rights,
rights of individual ethnic groups and nations as a
whole, and migration of population
Rise of international terrorism
Global warming and climate change
Threat of nuclear war
 ACTIVITY
ESSAY
1. In not more than 5 sentences, distinguish nation from
state.
2. Is there a decline of the power of State due to
globalization? Expound your answer.
CONTEMPORARY GLOBAL
GOVERNANCE

LESSON 5
BACKGROUND OF THE STUDY
On any given day, mail is delivered across borders; People travel
from one country to another via a variety of transport modes; Goods
and services are freighted across land, air, sea and cyberspace; and a
whole range of other cross-border activities take place in reasonable
expectation of reliable, safe and secure service for the people, groups,
firms and governments involved.
Global Governance
can be defined as the sum of laws, norms, policies and institutions that define, constitute and mediate
trans-border relations between states, cultures, citizens, intergovernmental and non-governmental
organizations and the market–the wielders and the objects of the exercise of international public power.
A concrete cooperative problem-solving arrangements or refers to the way in which global affairs are
managed. It may also refer to the process of designating standards, laws, rules, or regulations intended
for a global scale. It may a concrete cooperative problem-solving arrangements or refers to the way in
which global affairs are managed. It may also refer to the process of designating standards, laws, rules,
or regulations intended for a global scale

“a means to manage issues that cut across national borders”

COVID-19 PANDEMIC
CLIMATE CHANGE
WHO SHOULD GOVERN?
In terms of “authority”, there is no identifiable ‘center’, but the United Nations (UN) system with

universal state membership and mechanisms for involving non-state actors comes as close as we

have to a central clearing house for information and action.

SOME ISSUES RESOLVED
THROUGH GLOBAL GOVERNANCE
1. Human Rights

2. The Protection of Individuals During Wars and Armed Conflict

3. The Fight Against Terrorism and Other Serious Crimes

4. Environment

5. Trade and Development

6. Telecommunications

7. Transport
HUMAN RIGHTS
 The Protection of Individuals
During Wars and Armed Conflict
The Fight Against Terrorism and
Other Serious Crimes
Environment
Trade and Development
Telecommunications
Transport
UN in the World of Politics
The UN has supporting roles in preventing and managing conflicts;

regulating armaments;

championing human rights and international humanitarian law;

liberating the colonized; o providing economic and technical aid in newly liberated countries;

organizing elections;

empowering women;

educating children;

feeding the hungry;

sheltering the dispossessed and displaced;

housing the refugees; and

attending to the sick and coordinating disaster relief and assistance.

THE IDEA OF GLOBAL GOVERNANCE
One way to think of “governance” is as purposeful systems of rules or norms that ensure order beyond
what o

In the domestic context, governance is usually more than government, implying shared social purpose
and goal orientation as well as formal authority or police powers. Global governance is a rule-based
order without government.ccurs “naturally”.

In international politics, what little organizational structure exists is unstructured– and even morally
suspect for those fearing a global leviathan.

For the planet, however, governance is the entire story because there is no central authority. Moreover,
the network of institutions and rules provides appearances of effective governance but without the
desired effects.
ROLE OF PUBLIC INTERNATIONAL
LAW IN GLOBAL GOVERNANCE
International Law (IL) or the Law of Nations

International Law (IL) or the Law of Nations

◦ is a set or body of legal rules which apply between sovereign states and such
other entities as have been granted international personality. Nevertheless,
international law is consentbased governance. This means that a state member
may choose to not abide by the international law, and even to break its treaty.
The main role of international law is to promote global peace and prosperity
GLOBAL GOVERNANCE AS A NEW PARADIGM
Globalization
Globalization, in this manner, is considered by some as a form of capitalist extension which necessitates the
integration of local and national economies into a global, tolerant market economy.
Environmental Action
An amplification of environmental concerns is one of the central themes of today’s global governance.
International Trade
The emergence of conflicts over standards: trade and the environment, trade and property rights, trade
and public health which continued the traditional debate over the social effects of macroeconomic
stabilization policies.