Contemporary World

Chapter 2 and 3
GLOBAL ECONOMY AND MARKET INTEGRATION
 Trade is the oldest and most important
economic nexus among nations. Indeed,
trade along with war has been central
to the evolution of international
relations.

Global Economy

- Robert Gilpin

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Global Economy

Globalization involves the "broadening and deepening of

interdependence among peoples and states" (Cohn, 2011:6).

Globalization is multidimensional phenomenon comprised of political,

economic and cultural features. To dismiss the multifaceted nature of
the globalization would be inappropriate; (Benczes, 2014).

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Global Economy

Szentes (2003) defines economic

globalization as "a process making the
Benczes (2014) follows this definition and
world economy an "organic system" by
emphasizes that interpretation of the
extending transnational economic
current trends in the world economy must
processes and economic relations to
be understood in the global context of an
more and more countries and by
integrated world economy
deepening the economic
interdependencies among them" (p. 69).

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NATURAL RESOURCES

FACTORS INFRASTRUCTURES

AFFECTING POPULATION
LABOUR
GLOBAL HUMAN CAPITAL
ECONOMY TECHNOLOGY
LAW

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The Post-World War II Economic System

International Monetary System

Bretton Woods Conference (July
The International Monetary System is defined as
1944) "a set of general rules, legal norms, instruments,
and institutions shaping payment conditions in
International Monetary Fund foreign trade (international scale)" (Mikita, 2015,
World Bank - International Bank for p. 505).
Reconstruction and the Development
GATT – General Agreement for Tariffs and Trade
World Trade Organization

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Delegates attending the Bretton
Woods conference in July 1944
at the Mt. Washington Hotel in
Bretton Woods, New Hampshire
Photo by Alfred Eisenstaedt as
cited in Stephey (2008)

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 Table 2.1 The World's Largest Economies
Based on data from the International Monetary Fund, 2018

COUNTRY VALUE (In Trillions)

1 United States 20.4

2 China 14

3 Japan 5.1

4 Germany 4.2

5 United Kingdom 2.94

6 France 2.93

7 India 2.83

8 Italy 2.18

9 Brazil 2.14

10 Canada 1.8

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 MULTILATERAL
UNILATERAL

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 Table 2.2 GATT Trade Rounds
YEAR PLACE / NAME SUBJECTS COVERED COUNTRIES
1947 Geneva Tariffs 23
1949 Annecy Tariffs 13
1951 Torquay Tariffs 38
1956 Geneva Tariffs 26
1960 - 1961 Geneva Dillon Round Tariffs 26

1964 - 1967 Geneva Kennedy Round Tariffs and anti-dumping measures 62

1973 - 1979 Geneva Tokyo Round Tariffs, non-tariff measures, "framework" agreements 102

1986 - 1994 Geneva Uruguay Round Tariffs, non-tariff measures, rules, services, intellectual 123
property, dispute settlement, textiles, agriculture, creation
of WTO, etc.

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A political cartoon presenting the "globalization machine" and the
adverse effects it emits

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The Economic thinker, John Maynard Keynes
(photo from richtopia.com)

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The IMF and World Bank also aligned their policies to neo-liberalism through the "Washington Consensus," a set of ten
economic policy prescriptions for the recovering and crisis-ridden countries implemented by Washington-based institutions:
the IMF, WB, and the US Treasury. The term was coined by John Williamson (2004) which constituted the following
principles:

1. Fiscal discipline

2. Reordering Public Expenditure Priorities

3. Tax Reform

4. Liberalizing Interest Rates

5. A Competitive Exchange Rate

6. Trade Liberalization

7. Liberalization of Inward Foreign Direct Investment

8. Privatization

9. Deregulation

10. Property Rights

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Thank you

Florence C. de Leon 09702319335

• florencedeleon6@gmail.com

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