ASSESSMENT

1. What financial institutions did you learn from these modules, explain in
your

own words, the role of international financial institutions in the creation of a

global economy.

Answer:

From these modules, I learned about key international financial institutions

like the International Monetary Fund (IMF), the World Bank, and the World
Trade Organization (WTO). These institutions play a crucial role in the global
economy by promoting financial stability, supporting economic development,
and facilitating international trade. The IMF helps stabilize economies during
crises, the World Bank provides funding for development projects, and the
WTO ensures smooth and fair trade between countries. Together, they help
create a more interconnected and stable global economy.

2. What do you understand about global economy? How does it differ

from international and national economies?

Answer:

The global economy is a system of interconnected economic activities

across the world, involving trade, investment, and labor. It differs from the
international economy, which focuses on interactions between countries,
and the national economy, which is limited to a single country’s economic
activities. The global economy integrates all these economies, making
them interdependent.

3. Trace the history of global market integration in the twentient centry.

Answer:

In the 20th century, global market integration progressed through several

key phases. Early in the century, trade was disrupted by World War I, but
post-war agreements like the Gold Standard and the League of Nations
aimed to restore stability. After World War II, institutions like the IMF and
World Bank were established to foster global economic cooperation. The
Bretton Woods System in 1944 set fixed exchange rates and promoted
trade. In the latter half of the century, advancements in technology,
transportation, and communication, along with the collapse of the Soviet
Union and the rise of global corporations, accelerated the integration of
markets, leading to the modern era of globalization.

4. Identify the attributes of global corporations.

Answer:

Global Reach: They operate in multiple countries, with subsidiaries,

branches, or partnerships worldwide.

Cross-border Trade and Investment: They engage in international trade,

invest in foreign markets, and manage global supply chains.

Economies of Scale: They benefit from large-scale production, reducing

costs and increasing efficiency.

Advanced Technology: They leverage cutting-edge technology for

production, communication, and management across borders.

Brand Recognition: Global corporations often have strong, recognizable

brands that appeal to international markets.

Standardization and Adaptation: While they may standardize products for

global markets, they also adapt their offerings to meet local needs and
preferences.

Influence and Power: These corporations wield significant economic,

political, and cultural influence due to their size and reach.

5. Explain the effects of globalization on governments.

Answer:

Globalization affects governments by influencing their economic policies,

trade relations, and regulatory frameworks. It can lead to increased
competition, requiring governments to adapt by liberalizing markets,
improving infrastructure, and fostering innovation. Additionally,
globalization may reduce national sovereignty as governments must align
with international standards and agreements, while also facing challenges
like income inequality and environmental concerns.
6. Identify the institutions that govern international relations.

Answer:

United Nations (UN): Promotes peace, security, human rights, and

international cooperation.

World Trade Organization (WTO): Regulates international trade, ensuring

fair practices and resolving disputes.

International Monetary Fund (IMF): Provides financial stability, loans, and

economic advice to member countries.

World Bank: Supports global development through financial assistance

and projects.

European Union (EU): A political and economic union that fosters

cooperation and integration among European countries.

North Atlantic Treaty Organization (NATO): A military alliance focused on

collective security and defense.

7. Differentiate informationalism from globalism.

Answer: Informationalism focuses on the central role of information and

communication technologies in shaping economies, societies, and
cultures. Globalism, on the other hand, refers to the increasing
interconnectedness and interdependence of countries through trade,
politics, and cultural exchange. While informationalism is driven by
technology, globalism is about the broader integration of global networks
and systems.
TO DO
Write an essay of not less 500 words about the impact of globalization in
the Philippine Government, economy and business relations. Identify the
key financial players which have directly affected the rise and fall of the
country’s economic stability, and what economic reform where instituted
by the Philippine government to counter the looming world’s economic
recession?

Answer:

Globalization has significantly influenced various aspects of countries

around the world, including the Philippines. This phenomenon, which
refers to the increasing interconnectedness and interdependence of
economies, cultures, and political systems, has brought both challenges
and opportunities to the Philippine government, economy, and business
relations. Over the past few decades, the Philippines has witnessed
profound changes, with the country becoming more integrated into the
global economy. However, while globalization has fostered growth in some
sectors, it has also exposed the country to vulnerabilities, particularly in
times of global economic instability.

Globalization has played a crucial role in reshaping the Philippine

government’s policies, especially in terms of economic governance, trade
policies, and international relations. As the world became more
interconnected, the Philippine government was compelled to adjust its
policies to attract foreign investment and align with global economic
trends. The liberalization of trade, deregulation of key industries, and the
privatization of state-owned enterprises have been key features of the
government’s economic strategy in response to the globalized world.

One of the most significant impacts of globalization on the Philippine

government has been its relationship with international financial
institutions, such as the International Monetary Fund (IMF) and the World
Bank. These institutions often provide loans and financial aid to the
country in exchange for certain economic reforms. While these financial
relationships have been beneficial in terms of funding infrastructure
projects and economic programs, they have also required the Philippine
government to adopt certain market-driven reforms, sometimes at the
expense of domestic industries and local welfare.
The Philippine economy has experienced significant growth in recent
decades, thanks in part to the country’s integration into the global
economy. The export-oriented nature of the economy, particularly in
industries like electronics, textiles, and agricultural products, has made
the Philippines an important player in international trade. The global
demand for these goods has fueled economic growth, created jobs, and
attracted foreign investment.

However, globalization has also introduced challenges the Philippine

economy. The country’s reliance on foreign investments and exports has
made it vulnerable to global economic fluctuations. For instance, during
the 1997 Asian financial crisis and the 2008 global recession, the
Philippines experienced economic setbacks, with decreased foreign
investments, slower export growth, and rising unemployment. These
global economic crises underscored the risks of an economy overly
dependent on external factors.

In addition, globalization has intensified income inequality in the country.

While certain sectors, such as business process outsourcing (BPO) and
export industries, have thrived, many traditional sectors, including
agriculture, have faced stagnation or decline. The influx of cheaper
foreign goods has also negatively impacted local businesses and
industries, which have struggled to compete.

Globalization has transformed business relations in the Philippines by

fostering stronger ties with multinational corporations, foreign investors,
and international markets. The rise of the BPO industry is a prime
example of how globalization has reshaped business dynamics in the
country. The Philippines has become one of the world’s largest
outsourcing destinations, attracting multinational companies seeking
cost-effective labor for customer service, finance, and IT services. This
has provided a significant boost to the economy and created millions of
jobs.

However, globalization has also led to increased competition, both from

foreign and local businesses. While larger companies have benefitted
from international expansion and investment, small and medium-sized
enterprises (SMEs) have often struggled to survive against global
competition. The influx of foreign products has also placed pressure on
local businesses, particularly those in the manufacturing and retail
sectors, which find it difficult to compete with cheaper imports.
Several key financial players have directly influenced the rise and fall of
the Philippine economy. The government itself, through its fiscal and
monetary policies, plays a central role in shaping economic outcomes.
The Philippine Central Bank (Bangko Sentral ng Pilipinas) is another
critical institution, responsible for managing inflation and ensuring
financial stability.

International financial institutions such as the IMF, World Bank, and Asian
Development Bank (ADB) have had a direct impact on the country’s
economic policies, particularly during times of financial crisis. Additionally,
foreign direct investment (FDI) from countries such as Japan, the United
States, and China has played a significant role in driving growth in key
industries, such as manufacturing, real estate, and infrastructure.

In response to the challenges posed by globalization and the potential for

global economic recessions, the Philippine government has implemented
several economic reforms aimed at stabilizing the economy and reducing
vulnerability to external shocks. One of the most important reforms was
the enactment of the Tax Reform for Acceleration and Inclusion (TRAIN)
Law, which aimed to increase government revenue and improve tax
collection efficiency. These reforms were designed to ensure the
sustainability of public spending, especially in infrastructure and social
services, during times of global economic uncertainty.

The government also focused on diversifying the economy, moving

beyond traditional industries to include sectors such as renewable energy,
tourism, and information technology. This diversification strategy aims to
reduce dependence on volatile sectors and create more resilient economic
growth.

Moreover, the government implemented various social safety nets, such

as cash transfers and subsidies, to help vulnerable populations weather
economic downturns. These efforts aimed to alleviate poverty and reduce
the social impact of economic crises.

In conclusion, globalization has had a profound impact on the Philippines,

shaping its government policies, economy, and business relations. While it
has brought growth and prosperity to some sectors, it has also exposed
the country to external economic shocks. The government has responded
by enacting reforms to stabilize the economy, attract investment, and
reduce vulnerability to global recessions. Moving forward, the challenge
for the Philippine government will be to balance the opportunities of
globalization with the need to protect domestic industries, reduce
inequality, and ensure long-term economic stability.