GEC 8 - THE CONTEMPORARY WORLD

Finals Period

Global market
integration

Instructor: Ms. Ritchel S. Dillano, LPT

General Santos Doctors' Medical School Foundation, Inc.
 At the end of the lesson, the students shall be able to:

Learning Explain the role of international financial

institutions in the creation of global economy;
Outcomes narrate a short story of global market
integration in the 20th century; and
infer the attributes of global corporation
 Global Market Integration

a phenomenon in which markets for

goods and services that are in some
way related to one another experience
similar patterns of price increase or
decrease
Profile Company
a situation in which the prices of related
goods and services sold in a specific
geographical begin to move in a similar
pattern
roles of international financial
institutions in the creation of
global economy
world bank
aims to end extreme poverty and promote shared prosperity in a sustainable way; facilitate the
granting of loans and financial assistance to developing countries; responsible for post-war
reconstruction

international monetary fund

promote international financial cooperation and strengthen
international trade; works to foster global monetary cooperation,
secure financial stability, facilitating international trade, and more;
like World Bank, it also grants financial assitance and loans to
developing countries
Asian Development Bank (ADB) African Development Bank (AfDB)
1960 1964

In 1960s, regional development banks were establsihed to spur social

progress and economic growth in order to address and reduce poverty
 Citigroup Merril Lynch
an American multinational investment wealth management division of the
banking and financial corporation; Bank of America
fourth largest bank in the US
Global market
integration
global market
global market
integration
integration
A phenomenon in which markets of goods and
services that are in some way related to one
another experience similar patterns of price
increase or decrease
A situation in which the prices of related goods and
services sold in a specific geographical area also
begin to move in a similar pattern
Global market
integration
It was a result of the establishment of
a global economy that involved the
homogenization of trade and
commerce.
HIGH INTEGRATION
LOW INTEGRATION
 global market
integration
global market integration in the
20th century
Prior to the trends in the globalization of 20th
century, international trade and exchange of
goods and services were already practiced;

Observable in the development of maritime

transport

Colonialism and imperialism rose as the new

ways of putting order to the economic
interrelationships among countries; equity,
corporate ownership, management
subsidiaries, and central headquarters which
supply and distribute goods and services
were established through colonialism
 Integration of global market started when the
big American corporations began to emerge
after the World War II with the rise of new
conglomerates.

Literatures traced the start of the

contemporary market integration from the
return of Japanese and European
corporations to the global market.

triads--the major economies around of the

world: United States, European Union, and
Japan
international, multinational,
transnational, and global
companies
international companies
importers and exporters with no investments outside their home countries

Multinational companies
have investment in other countries, but do not have coordinated product offerings in each
country. More focused on adapting their products and service to each individual local market.

global companies
have invested and are present in many countries. They market their products through the use of
the same coordinated image/brand in all markets.

transnational companies
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.
three structural periods in the
existence of global
corporations after the war
investment-based
period
Investment-based period
 Foreign Direct Investment
funding made to acquire lasting interest in enterprise outside the
economy of he investor in which their purpose is to gain an
effective voice in the management of the enterprise (UNCTAD,
20211)

cited by UN as the major drivers of global corporate development

trade-based
period
trade-based period
 producer-driven value streams

have integrated their corporate structures to reduce the effects

of time and distance in the production and consumption
digital-based
period
digital-based period
 buyer-driven value streams

changed the behavior of corporations in retailing their goods and

services via internet
 3 attributes of global
corporations
1. an agent of desired economic development
2. economic prominence
3. a very powerful entity that can create crisis
 Conclusion conclusion
International financial institutions play an important role in the social
and economic development programs of developing and transitional
nations. They are instrumental in the functionality of the global
economy which is reliant on global corporations.
GEC 8 - THE CONTEMPORARY WORLD

economic
globalization

Instructor: Ms. Ritchel S. Dillano, LPT

General Santos Doctors' Medical School Foundation, Inc.
 At the end of the lesson, the students shall be able to:

Learning Define economic globalization;

Analyze the actors that facilitate economic
Outcomes globalization; and
Articulate a stance on global economic
integration
 Economic Globalization

"It refers to the increasing

integration of economies around the
world, particularly through the
movement of goods, services, and
capital across borders" (IMF, 2008)
 Economic Globalization

Expanding interdependence of world

economies.
 beginning
of globalization
Beginning of Globalization
 Road
Silk
 Flynn and Giraldez believes that age of
globalization began when "all important
populated continents began to exchange
products continuously--both with each
other direct and indirectly via other
continents--and in values sufficient to
generate crucial impacts on all trading
partners.
Galleon Trade Route
 Manila, Philippines

Acapulco, Mexico
Four interconnected dimensions
of economic globalization
according to Benczes (2014)

Globalization of Trade of Goods and Services

Globalization of Financial and Capital Markets

Globalization of Technology and Communication

Globalization of Production
Four interconnected dimensions
of economic globalization
according to Benczes (2014)

Globalization of Trade of Goods and Services

Globalization of Financial and Capital Markets

Globalization of Technology and Communication

Globalization of Production
"which ensures that trade flows as smoothly,
predictably, and freely as possible"
(WTO, 2012)
Four interconnected dimensions
of economic globalization
according to Benczes (2014)

Globalization of Trade of Goods and Services

Globalization of Financial and Capital Markets

Globalization of Technology and Communication

Globalization of Production
 Examples:
a. Cross-listing of shares on one or
more foreign stock exchange
b. cross-hedging and diversification
of portfolio
c. round-the-clock trading
worldwide
Four interconnected dimensions
of economic globalization
according to Benczes (2014)

Globalization of Trade of Goods and Services

Globalization of Financial and Capital Markets

Globalization of Technology and Communication

Globalization of Production
 Various transactions and
interactivities that transpire
instantly due to the internet and
communication technology.
Four interconnected dimensions
of economic globalization
according to Benczes (2014)

Globalization of Trade of Goods and Services

Globalization of Financial and Capital Markets

Globalization of Technology and Communication

Globalization of Production
 Foreign Direct Investment
Toyota Motor Philippines Corporation
is a type of investment in which a company is a subsidiary of
establishes a business in another country for
the production of goods and services and still
takes part in the management of that
business.

Toyota Motor Corporation

based in Toyota, Japan
 Other examples of Multinational
Corporations (MNCs) and
Transnational Corporations (TNCs)
 International
Monetary System
International monetary system
 International
monetary
system
refers to internationally agreed rules,
conventions, and institutions for
facilitating international trade,
investments, and flow of capital
among nation-states
 The era of
bimetallism
Where both gold and silver coins were
used as the international modes of
payment it os called Bimetallism. The
exchange rates among currencies
were determined by their gold or
silver contents. Some countries were
either on a gold or a silver standard.
Gold Standard
functions as a fixed exchange rate regime, with
gold as the only international reserve and
participating countries determine the gold
content of national currencies
Bretton woods
system
(Gold exchange standard)
the US dollar was the only convertible
currency; thus it was agreed by 44
countries to adopt the gold-exchange
standard
International Monetary Fund and World
Bank were established
European Monetary
system
succeeded in stabilizing exchange rates
prompted the foundation of European
Economic Monetary Union
National currencies were abandoned and
member states delegated monetary policy
onto a supranational level administered by
the European Central Bank
 Unites or
does economic globalization

Divides?
unites or divides the world?
how it unites the world how it divides the world
It allows a worldwide distribution of Sources of goods and services are
incomes. exploited.

Economic globalization does not benefit

It reduces poverty (World Bank, 2002).
all nations (World Bank, 2002).

Capitalism created the different levels of

It creates mutual dependence between
wages in the economic area of world
developing and developed countries
systems (Wallerstein, 2005)
 Conclusion conclusion
Economic globalization affects all nations and citizens through
increasing integration of economies around the borderless world. Its
important players are the nation-states, global corporations (such as
TNCs & MNCs), and international monetary systems. Though some
people believe that economic globalization brings unity of all economic
movements, others believe that globalization furthers the separation
among nation-states around the world.
 GLOBAL
DEMOGRAPHY.
FINALS PERIOD
MS. RITCHEL S. DILLANO, LPT
Learning Outcomes

At the end of the lesson, you should be able to:

• Identify the different international issues and trends in global population;

• Explain the Malthusian Theory and the Theory of Demographic Transition, and their
effects on global population;

• Synthesize the concept of globalization in relation to demography and population;

and

• Predict the future of Global Demography.

 What was the global population in 2019? 7.7 B
What was the global population in 2020? 7.8 B
What was the global population in 2021? 7.9 B
How do you feel about these numbers?
Demography_______________________
is a field in statistics that is concerned with births, deaths, income, or the
incident of disease, which later illustrates the changing structure of human
populations.
Global Demography_______________________
Is about the trends and practices in world politics. It is the study of the issues
and developments of the global population. Basically, it lays out the present
condition of the world and its population.
Global population growth is based on four fundamental factors:
 GLOBAL
MORTALITY
_______________________
the incidences of death in global
population
 INTERNATIONAL
MIGRATION
_______________________
the movement of people
into and out of a specified
territory.
What happens when more people
live in the same amount of space?
With less people?
Malthusian Theory
 Malthusian Theory

Thomas Robert Malthus

1766 - 1834
the first man to publicly predict the limits of the
human population and how population and
well-being are connected.
 Malthusian Theory
Malthus calculated that population would increase in what
mathematicians call a geometric progression, illustrated by the series of
numbers 2, 4, 8, 16, 32, and so on. At such a rate, Malthus concluded,
world population would soon soar out of control.

Food production would also increase, Malthus explained, but only in

arithmetic progression (as in the series 2, 3, 4, 5, 6, and so on) because
even with new agricultural technology, farmland is limited.
Malthusian Theory
 Fortunately, Malthus’s prediction was flawed.

1850 (Yemma, 2011)

European birth rate began to drop, partly Malthus underestimated human ingenuity:
because children were becoming an Modern drip-irrigation techniques, advanced
economic liability rather than an asset and fertilizers, and effective pesticides increased
partly because people began using farm production and saved vital resources far
artificial birth control. more than he could have imagined
Demographic Transition Theory
Demographic Transition Theory
Demographic Transition Theory

Preindustrial (Stage 1)
have high birth rates because of the economic value of children and
the absence of birth control. Death rates are also high because of low
living standards and limited medical technology. Deaths from
outbreaks of disease cancel out births, so population rises and falls
only slightly over time. This was the case for thousands of years in
Europe before the Industrial Revolution.
Demographic Transition Theory

Early Industrial (Stage 2)

death rates fall due to greater food supplies and scientific medicine.
But birth rates remain high, resulting in rapid population growth. It
was during Europe’s Stage 2 that Malthus formulated his ideas, which
accounts for his pessimistic view of the future. The world’s poorest
countries today are in this high growth stage.
Demographic Transition Theory
Mature Industrial (Stage 3)
Fertility falls because most children survive to adulthood and
because high living standards make raising children expensive.
In short, affluence transforms children from economic assets into
economic liabilities. Smaller families, made possible by
effective birth control, are also favored by women working
outside the home. As birth rates follow death rates downward,
population growth slows further.
Demographic Transition Theory

Post-industrial (Stage 4)
corresponds to a postindustrial economy in which the
demographic transition is complete. The birth rate keeps falling,
partly because dual-income couples gradually become the norm
and partly because the cost of raising children continues to
increase. This trend, linked to steady death rates, means that
population grows only very slowly or even decreases.
 In what ways do population
increase beneficial?

In what situations that population

decrease beneficial?
Conclusion
Conclusion
Since globalization has something to do with population demand of a country,
its effect on demography in terms of overpopulation must be noted. Aside
from the increasing birth rate, excessive movements of people from once
place to another are also a factor in overpopulation.

Population is part of human demography and since the world is shrinking, this
condition develops a concept of globalized world wherein a country’s
population transcends into global context.
Asynchronous Activity
Conclusion

With the ongoing global issues today, that may affect global population,
predict the next stage of Global Demographic Transition's level of technology,
its birth rate, and death rate. Discuss the underlying factors/reasons behind the
drop/increase speculated birth rate and death rate.