ALFORQUE Activity3

ALFORQUE, Manfred Von Richtoffen N.
Activity 3: Structures of Globalization - Market Integration
For this activity, provide answers to the following questions:
1. Enumerate and explain the role of International Financial Institutions in the

creation of a Global Economy.
IFIs are vital in building a worldwide economy through encouraging global

collaboration, ensuring financial security, and advancing economic growth. Groups such as
the IMF, World Bank, and WTO are leading the way in these endeavors.
The International Monetary Fund (IMF) provides both financial aid and guidance on
policies for nations facing economic turbulence, aiming to stabilize economies and contain
any crisis from escalating globally. The IMF supports structural reforms that enhance
economic resilience and sustainability through its conditional programs. On the contrary, the
World Bank offers extended financial support for development initiatives in developing
nations, with an emphasis on reducing poverty, building infrastructure, and improving
education. These initiatives aid in the economic development and incorporation of poorer
nations into the worldwide economy. The main recommendation from the IMF has
consistently been to maintain the equilibrium of balance of payments (BOP) stable, maintain
low inflation, and ensure fiscal accounts are in equilibrium—in other words, to actively seek
sensible economic policies. Although the advice's tone was never pleasant, it changed in the
end.
The World Trade Organization (WTO) enables international trade by creating

regulations, settling trade conflicts, and promoting trade liberalization. Its goal is to establish
fairness in global trade by lowering obstacles and increasing openness. Collectively, these
IFIs play a role in shaping the worldwide economy by promoting monetary stability,
stimulating commerce and investments, and aiding the growth of developing nations. By
working together, they establish a global economy that is more interconnected and
interdependent.
2. Narrate a short history of Global Market Integration in the 20th Century.
Significant advancements occurred in global market integration during the 20th
century. After World War II, the Bretton Woods Conference in 1944 set the foundation for
a connected global economy through the creation of the International Monetary Fund
(IMF) and the World Bank, entities aimed at stabilizing economies and fostering
international trade. The establishment of the General Agreement on Tariffs and Trade
(GATT) in 1947 played a significant role in enhancing international trade by lowering
barriers and encouraging multi-country agreements.
In the 1950s and 1960s, the economic upturn after World War II resulted in increased
global trade and the rise of multinational companies. Established in 1957, the formation
of the European Economic Community (EEC) marked a major advancement towards
regional integration within Europe. The global market integration was disrupted in the
1970s due to challenges like oil crises and economic downturns.
During the 1980s, there was a rise in neoliberal strategies that focused on
deregulation, privatization, and free-market ideas, resulting in greater international trade
and market unity. The fall of the Berlin Wall and the end of the Cold War in the 1990s led
to a major change, encouraging the expansion of capitalism and globalization. The
establishment of the World Trade Organization (WTO) in 1995 strengthened worldwide
market connection, offering a forum for settling trade conflicts and boosting global trade.
The events of the 20th century had a significant impact on the global market integration
trajectory.
3. List and describe the attributes of Global Corporations.

Global corporations, also referred to as multinational or transnational corporations,
possess various distinctive characteristics.
 Global Presence- These companies have a presence in various countries, with
offices, factories, and distribution networks spanning the globe. This enables them
to access a variety of markets and resources.
 Varied Workforce- Due to their global presence, multinational companies
frequently hire employees from different cultures and locations. This variety
encourages creativity and offers perspectives on domestic markets.
 Supply chains- Global corporations commonly have intricate supply chains that
go across several countries. This framework allows them to procure raw materials,
components, and services from the most efficient locations in terms of cost.
 Global brands- Many multinational companies have globally recognized brands
with a uniform identity across different regions. They modify their products or
marketing tactics to fit in with local cultures while still upholding a consistent
brand image.
 Economic Impact- Global corporations, given their scale and extent, are able to
greatly affect international trade, investment, and even local economies.
Frequently, they play a crucial part in influencing trends in globalization and
practices in international business.
 Technological Advancements- Major international companies are frequently
leading in adopting cutting-edge technology to oversee their activities and engage
with a global customer base.
References:
Attributes of Global Corporation. (2023).

https://www.scribd.com/document/689618917/Attributes-of-global-corporation
Bernanke, B. S. (2006). Global Economic Integration: What's New and What's Not?
https://www.federalreserve.gov/newsevents/speech/bernanke20060825a.htm
Leipziger, D. (n.d). The Role and Influence of International Financial Institutions. https://idl-bnc-
idrc.dspacedirect.org/server/api/core/bitstreams/fdf06b07-589a-4aa5-9006-
5ca855ab26c4/content

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ALFORQUE, Manfred Von Richtoffen N.

Activity 3: Structures of Globalization - Market Integration

For this activity, provide answers to the following questions:

1. Enumerate and explain the role of International Financial Institutions in the

IFIs are vital in building a worldwide economy through encouraging global

The World Trade Organization (WTO) enables international trade by creating

3. List and describe the attributes of Global Corporations.

Attributes of Global Corporation. (2023).

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