UTILS

THE CONTEMPORARY WORLD

1ST YEAR / 1ST SEMESTER
PEAK OF SATISFACTION
LESSON 1: Globalization
MARGINAL
Contemporary World UTILITY
- Ideas that we had before that still exists today

GLOBALIZATION
- The ideas of the past and present being connected
- Diverse or mixed culture cue to colonialization QUANTITY
- The citizen’s obligation is to pay taxes (Fiscal Policy) MARKET
- 1900 was known as the Industrial Period - Demands of good and services supplied to meet
- During 1980 – 1984, people had gained more demands
knowledge about technology - A place where buyers and sellers transact together
- affected the growth (Intermarriage) - Exchange between a buyer’s money and a seller’s
- Global Exchange of language, culture, beliefs, etc.. product/service
Goods and Services are demanded in the market as
Factors Affecting Globalization consumers continue to satisfy their needs
- Culture - Beliefs - Place Money is medium used for exchange of goods and
- People - Ideas - Economics services
Transaction happens when there is an exchange of
Technology is a tool for globalization goods and services with the use of money
Innovation is equal to change World Market is where import and export happens
Convergence To Taste Circular Flow of Economic Activity
- Change in lifestyle (Basic)
- Speed up the process
- Gender equality MONEY PAYMENT

Media and Internet

- Window to take a glimpse to the other side RESOURCES
- To compare other societies with the experience ( L2CE )
outside the world HOUSEHOLD FIRM
- It is important to study the world

ECONOMICS GOODS AND SERVICES

- means scarcity (insufficient/lacking)
- is a form of science
CONSUMPTION EXPENSES
Trade War
- is a war between China against America and Europe INPUT - TRANSFORMATION - OUTPUT
Resources - Process - Product
Economical Terms
- Utility = Satisfaction L2CE Money Payment
- Scarcity = You need to “allocate things” - Land Rent -
- Utils = Measure of Satisfaction - Labor Wages/Salary -
- Marginal Utility = Measure of Dissatisfaction - Capital Profit -
- Peak of Satisfaction = Highest Level of Satisfaction - Entrepreneur Interest -
 Role of the Government in the Economic Model
(Extension of the Basic Model)
Types of Economy
- Traditional Economy (You eat what you plant)
- Command Economy
- Market Economy
Market Economy
- What to produce
- How to produce
- When to produce
Economic Strategies
- Bank = Monetary Policy
- Government = Fiscal Policy
- Foreign Countries = International Policy
LESSON 2: Dimensions of Globaliztion
The Globalization of Trade of Goods and Services
- A dimension of globalization that focuses on the trade
or exchange of products from one place to another. For
example, import and export.
The Globalization of Financial and Capital Markets
- A dimension of globalization that focuses on money,
taxes, interests, etc. Mainly concerned with banks and
financial factors
The Globalization of Technology and Communications
- A dimension of globalization that focuses on
technology, or inventions that helps the lives of humans,
communications and factors under the technological
factors and communication factors.
The Globalization of Production
- A dimension of globalization that focuses on the
production of goods and services. Under this maybe
machineries used in production, shipment from
warehouse to shops and labor works. Any factors that is
connected to the production and only the production
maybe under this dimension.
LESSON 3: Globalization And It’s Directions
THE GLOBAL ECONOMY
Economic Globalization
- is a historical process
- the result of human innovation and technological
processes.
- increasing integration of economies around the world
- refers to the movement of goods, services, capitals ,
people (labor) and knowledge (technology)across
international borders.
Six Core Claims of Globalization
1. Globalization is about the Liberalization and Global
Integration of Markets
2. Globalization is Inevitable and Irreversible
3. Nobody is in Charge of Globalization
4. Globalization Benefits Everyone
5. Globalization Furthers the Spread of Democracy in
the World
6. Globalization Requires War on Terror
The Bretton Woods System
After two world wars, the world leaders sought to
create a global economic system that can prolong
global peace. During the United Nations Monetary and
Financial Conference back in 1944, the Bretton Woods
System was inaugurated. They believed that building a
network of global financial institutions that would
promote economic interdependence would sustain a
global peace.
The system was largely influenced by John Maynard Neoliberalism is a policy model bridging politics, social
Keynes, a British economist who believed that an studies and economics that seeks to transfer control of
economic crisis occur, not when they don’t have money, economic factors to private sector from the public
but when they have money but isn’t being spent. sector.

The system created two financial institutions, the Sovereignty is the authority in the decision making
International Bank for Reconstruction and process of the state and in the maintenance of order.
Development (IBRD or World Bank), a financial
institution for postwar reconstruction projects and the Interstate System refers to a system for international
International Monetary Funds (IMF), which is the last relations
resort of a country to prevent from spiraling in to credit Internationalism is the principle or practice of nations
crises. acting and working together, or a belief in this principle
Political Structure Regionalism is a political ideology that favors a specific
The first wave of globalization (1830-1914) witnessed a region over the greater area
decline in the number of countries from 126 to 54.
The second wave of globalization (1950-Present) has State refers to patch of land with a sovereign
led to an increase in the numbers of countries that are government.
more than 190.
Nation refers to a group of people who feel bound into
Political fragmentation has been accompanied by the
a single body by shared culture, values, folkways,
creation of peaceful structures of supranational
religion and/or language.
governance.
Political structures adapt to steadily expand trade
opportunities in a non-monotonic way. Back then the
political response to globalization was war to remove
borders by increasing the country size but was then
replaced by creating international economic unions.

International Relations are the political, military and

diplomatic engagement between two or more
countries.

The Four Key Attributes of Today’s Global System

1. There are countries or states that are independent
and govern themselves.
2. These countries interact with each other through
democracy.
3. There are international organizations.
4. Beyond simply facilitating meetings between states,
international organizations also take on lives of their
own.