Module 2 Section 1 The Global Economy

MODULE 2
THE STRUCTURES OF
GLOBALIZATION
BY: VANESSA MAE T. MARIANO, MSPSY
SECTION 1
THE GLOBAL ECONOMY

LEARNING OBJECTIVES
• At the end of this section, you are expected to

1. Define economic globalization
2. Analyze the actors that facilitate economic globalization
3. Articulate a stance on global economic integration
• This module exposes learners to economic and political
arenas as structures of globalization.
• Section 1 The Global Economy
• Section 2 Market Integration
• Section 3 The Global Interstate System
• Section 4 Contemporary Global Governance
The Global Economy
Focuses on the process of making the world economy
an integral element of a whole.
MARKET INTEGRATION
Covers the position of international financial

institution in global market integration
THE GLOBAL INTERSTATE SYSTEM
• Having a global interstate system establishes International Laws

that each nation-state should abide by, resulting into a harmonious,
peaceful and orderly world.
• -It allows a smoother resolve of disputes among countries that are
under the same system.
CONTEMPORARY GLOBAL
GOVERNANCE
Presents the United nations’ role, function,

and the challenges of global governance
• Steger’s (2014) definition of Globalization as the
expansion and intensification of social relations and
consciousness around the world time and space implies
that there are various forms of connectivity.
• Globalization is a multidimensional phenomena creating
economic, political, cultural and even technological
forms of connectivity.
SHANGQUAN (2000)
• Stated that attributes this to the growing scale of cross border trade,
commodities and services, flow on international capital, and wide and rapid
spread of technology.
• Example in the Philippines cross border trading can be illustrated by countries
trading partners with China, USA, and Australia.
FDI
• Foreign Direct investment
• A type of investment in which a company establishes a
business in another country for production of goods or
services and still takes part in management of that business.
EXAMPLE OF FDI
• Toyota Motor Philippines
• A corporation which is subsidiary of Toyota
Motor Corporation based in Toyota, Japan.
IMF- INTERNATIONAL MONETARY FUND
• In 2008 , defined economic globalization as a historical

process, the result of human innovation and technological
progress.
• It refers to the increasing integration of economies around the
world.
BENCZES 2014
• Identified 4 interconnected dimensions of economy.
1. Globalization of trade of goods and services
2. Globalization of Financial and Capital Markets
3. Globalization of Technology and Communication
4. Globalization of Production
1ST DIMENSION ( GLOBALIZATION OF TRADES OF
GOODS AND SERVICES)
• The first dimension of economic interconnectedness is

demonstrated in the establishment of WTO or World
Trade Organization
WORLD TRADE ORGANIZATION
• Ease trade among Country

• Established in 1995
• Ensures the trade flow smoothly, predictably
and freely possible
CHINA
• As major supplier and exporter of manufactured goods

that has affected the economy.
BPO
• Business Process Outsourcing ( BPO)

• A good example of economic
globalization
• Business process outsourcing (BPO) is a
method of subcontracting various
business-related operations to third-party
vendors.
2ND DIMENSION (GLOBALIZATION OF FINANCIAL AND CAPITAL
MARKETS)
• Is evident in the liberalization of financial

and capital markets.
3RD DIMENSION GLOBALIZATION OF TECHNOLOGY AND
COMMUNICATION
• Emphasizes that various transaction and inter activities

that transpire instantly due to the internet and
communication technology
4TH DIMENSION GLOBALIZATION OF PRODUCTION
• Is best illustrated by the existence of MNCs

Multinational Corporations and TNCs
transnational Corporation. Example is Coca cola
company
SZENTES 2003
• Define economic globalization as the process of making

the world economy an organic system by extending
transnational economic processes and relations to more
and more countries.
ACTORS THAT FACILITATE ECONOMIC
GLOBALIZATION
• NATION-STATE – Boyer and Drache ( 1996) state that the role of nation states as
a manager of national economy is being redefined by globalization
• GLOBAL CORPORATIONS – Ohmae (1995) argues that the nation state has
ceased to exist as the primary economic organization unit in the global market.
• Reich (1999) – posits that national products, technologies corporations and
insudtries become obsolete.
IMS – INTERNATIONAL MONETARY SYSTEM
• Is one of the actors that facilitate economic relations in the

modern day.
• Refers to internationally agreed rules , conventions and
institutions for facilitating international trade, investmrents
and flow of capital among nations-states.
3 GLOBAL IMS
1. Gold Standard
2. Bretton Wood System
3. EMS- European Monetary System
IN CONCLUSION
• Economic Globalization affects all nations

and citizens through the increasing
integration of economies around the
borderless world.
THE END

Module 2 Section 1 The Global Economy

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MODULE 2

THE GLOBAL ECONOMY

• At the end of this section, you are expected to

Covers the position of international financial

• Having a global interstate system establishes International Laws

Presents the United nations’ role, function,

• In 2008 , defined economic globalization as a historical

• The first dimension of economic interconnectedness is

• Ease trade among Country

• As major supplier and exporter of manufactured goods

• Business Process Outsourcing ( BPO)

• Is evident in the liberalization of financial

• Emphasizes that various transaction and inter activities

• Is best illustrated by the existence of MNCs

• Define economic globalization as the process of making

• Is one of the actors that facilitate economic relations in the

• Economic Globalization affects all nations

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