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Structures of Globalization

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Structures of Globalization

Uploaded by

lorrainejoygeronimoperalta25
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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The Structures of

Globalization
Erica P. Tepait
Instructor
Department of Management Studies
Learning Objectives:
After reading this unit, you will be able to:
1. Define economic globalization;
2. Identify the actors that facilitate economic globalization;
3. Define the modern world system;
4. Identify the roles and functions of the United Nations.
What is Global Economy?
Refers to the interconnected worldwide economic activities that take
place between multiple countries.
The global economy comprises several characteristics, such as:
1. Globalization – process by which national and regional economies,
societies, and cultures have become integrated through global network
of trade, communication, immigration, and transportation.
2. International Trade – considered to be an impact of globalization. It
refers to the exchange of goods and services between different
countries, and it has also helped countries to specialize in products
which they have comparative advantage.
3. International Finance – Money can be transferred at a faster rate
between countries compared to goods, services, and people
What is Global Economy?
The global economy comprises several characteristics, such as:
4. Global Investment – refers to an investment strategy that is not
constrained by geographical boundaries.
Who controls the global economy?
Its is the big banks and large corporations that controls and
essentially fund these government. This means that global economy is
dominated by large financial institutions.
BENEFITS OF GLOBAL ECONOMY

BENEFITS COSTS
Economies of scale / lower prices Environmental costs

Increased of global investments Tax competition and avoidance

Free movement of labor Brain drain from some countries

May reduced global inequality Less cultural diversity


Factors affecting the global economy?
According to the latest economic news, here are some of the key factors
that influence and affect how well the global economy works:
1. Natural resources;
2. Infrastructure;
3. Population;
4. Labor;
5. Human capital;
6. Technology;
7. Law.
Market Integration
✓ Market integration occurs when prices among different
locations or related goods follow similar patterns over a long
period of time. Group of goods often move proportionally to each
other and when this relation is very clear among different
markets it is said that the markets are integrated.

✓ What is the impact of market integration on the global economy?


Economic integration can reduce the costs of trade, improve the
availability of goods and services, and increases consumer
purchasing power in member nations. Employment opportunities tend
to improve because trade liberalization leads to market expansion,
technology sharing, and cross-border investment.
Reasons for Market Integration
✓ To remove transaction costs
✓ Foster competitions
✓ Provide better signals for optimal generation and consumption decisions
✓ Improve security of supply
The Global Interstate System
It is the whole system oof human interactions. The modern world-
system is structured politically as an interstate system – a system competing
and allying states. Commonly calls this the international system, and it is the
main focus of the field of International Relations.
United Nations International Financial Institutions

1. Each government pledges itself to employ its 1. World bank


full resources, military or economic, against 2. International Monetary Fund
those members of the tripartite pact and its 3. Asian Development Bank
adherents with which such government it at 4. African Development bank
war.
2. Each government pledges itself to cooperate
with the government signatory hereto and not
to make a separate armistice or peace with
the enemies
Trade Agreement
It is when the two or more nations agree on the terms of trade
between them. They determine the tariffs and duties that countries impose
on imports or exports. All trade agreements affect internation trade.

PROS CONS

Increased Economic Growth Increased job outsourcing

Lower Government spending Poor working conditions

Technology transfer Degradation of national


resources
What is Global Governance?
✓ Encompasses activities that transcend national boundaries at the
international, transnational, and regional levels and is based on rights and
rules that are enforced through a combination of economic and moral
incentives.
WHY WE NEED GLOBAL GOVERNANCE?
a. National policies has a direct effect on a country. (Good or bad)
b. Its global governance stresses on cooperative forms of conflict
management
c. Global governance stresses on cooperative forms of conflict
management
d. It helps nations to develop their capacity to deal with the challenges of
globalization
Takeaways

Making global governance works is a defining challenge of our


time, given that too often international leaders fail to agree on, let
alone pursue, concerted action to address pressing transnational
problems at the intersection of peace, security and justice.

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