ST.

VINCENT’S COLLEGE INCORPORATED

COLLEGE OF ARTS, SCIENCE & EDUCATION
MAIN CAMPUS, PADRE RAMON STREET, BARANGAY ESTAKA
DIPOLOG CITY, 7100, ZAMBOANGA DEL NORTE, PHILIPPINES
TELEPHONE NO. (065)212-6292, TELEFAX (065)908-1133
www.svc.edu.ph

THE CONTEMPORARY WORLD

Contemporary Global Interdependence

- Means today’s event - Human interactions and relationship

transcend national boarders & in which social
World problems within any one country & such as
unemployment, drug addiction, water
- Means where people live
shortages, etc. are shaped by Special Forces
Contemporary World & events taking place outside the country.

- Introduces students by examining

multifaceted phenom of globalization.
Advantages of Globalization
- Examines the economic, social, political, and
technological. 1. Greater Understanding and Knowledge of
- Provides an overview debates: many countries culture.
A. Global Governance 2. Investment into developing country’s
B. Development economy.
C. Sustainability 3. Greater range and access to diff. products.
- Circumstances & ideas of the present age. In 4. Increased production of company due to
modern times like these. great demands.
- Using the various disciplines of the social 5. Larger market Range
sciences, it examines the economic, social, 6. Job Creation
political, technological, and other 7. Greater innovation &development products &
transformations that have created an technology
increasing awareness of the 8. Cheaper products
interconnectedness of peoples and places
around the globe. Disadvantages of Globalization

1. Outsourcing of Services to other countries.

- 195 countries and 7.6 billion people and 2. Possible increase in unemployment.
counting. 3. Closure of small businesses.
4. Degradation of Environment.
Structures of Globalizations
5. Conflict between & among countries.
1. Economic Globalization\
GLOBAL ECONOMY
- Increasing economic interdependence of
national economies across the world. -The world economy or global economy is the
- Rapid increase in cross-border movement.
economy of the world, considered as the
2. Political Globalization
international exchange of goods and services
- On how to establish relationship to other
that is expressed in monetary units of account.
country.
- Refers to increasing trend toward
Economy
multilaterism.
3. Cultural Globalization - The wealth and resources of a country or
- “Way of Life/Living” region, esp. in terms of the production and
- Can be diverse/sity consumption of good and services.
- Interaction of cultures around the world that
are becoming more and more similar. Economies

Globalization - ACCORDING TO Wallenius Wilhelmsen

- According to sociologists, an on-going
process involves interconnected changes in
economic, cultural, social, and political
spheres of the society.
- Involves even-increasing integration of these
aspects between nation, regions,
communities, and isolated places.
ASA. US ECONOMY ACCELERATE
FURTHER.
-
- US economy accelerated strongly and
posted GDP growth of 2.3 percent in 2017,
well above the 1.5% a year prior. Barring
major additional policy changes, the World
Bank sees momentum carrying into this year
and lifting the US another 2.5 percent in 2018

- AND US HAS BEEN THE WORLDS

BIGGEST ECONOMY SINCE 1871.

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 10. Canada
- $1.6 Trillion
Philippine Economy
Advantages of Global Economy
- ACCORING TO THE STUDY OF
FOCUSECONOMICS - International trade
- - Capital flow
- PH. The economy is expected to grow at a - Foreign direct investment
brisk pace this year and next on the back of
elevated public spending and fixed Disadvantages of Global Economy
investment. Fiscal stimulus, however, is
causing economic imbalances to build up - Human Costs
and stoking fears that the economy might - Insecurity
overheat. Focus Economics panelists see - Violence
GDP growth of 6.7% in 2018, unchanged
from last month’s forecast, and 6.6% in 2019. ASEAN Economic Community (AEC)

- Consists of 10 countries
Import - Founded on Aug 8, 1967
- With 5 official members:
- Bring (goods or services) into a country from Indonesia, Malaysia, Philippines, Singapore,
abroad for sale Thailand
- Next is:
Export
Cambodia, Lao, Myanmar, Vietnam, Brunei
- Send (goods or services) to another country Darussalam.
for sale

Crude Oil ASEAN Single Window

- Most imported product - Allows trades to submit trade related

- $87.5 billion a year. documents in one place through electronic
exchange among ASEAN countries.
Electrical Machinery
ASEAN Self Certification System
- Most imported product in PH.
- Allows exports to declare and self-certify the
Mangoes ASEAN product content in their products.

- Most exported product in Japan, Korea, Benefits

Singapore, and USA.
- Better investments
GDP - Implementation of trade, services,
investments
- Gross Domestic Product is the monetary - Improving country’s location
value of all the finished goods and services - Make ASEAN region more competitive
produced within a country’s borders in a
specific time period. AEC Agreements
- It’s significance is it measures a country’s
income - ASEAN Trade In Goods agreements (ATIGA)
- Common Effective Preferential tariff (Cept)
The World’s top 10 Economies - ASEAN Framework Agreement on Services
(AFAS)
1. U.S.A - ASEAN Comprehensive Investment
- $19.42 trillion Agreement (ACIA)
- - 25% of the gross world product
2. China Agreement aims to
- Economic growth with 10% annual increase
3. Japan 1. Facilitate the movements of good, services,
- $4.8 trillion investments, capital, skills
4. Germany 2. Increase trade and investments among
- Exports of machineries member states.
5. United Kingdom 3. Promote and expand regional production
- $2.5 Trillion sharing and networking.
6. India 4. Promote higher level of transparency and
- $2.45 trillion predictability
7. France
World Trade Organization (WTO)
- $2.42 trillion
8. Brazil
- 3 common goals
- $2.14 Trillion
- Achieving higher living standards, full
9. Italy
employment, and sustainable development.
- $1.81 Trillion

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 - Open economies tend to grow faster and  Ensures a high level of certainty
more steadily when it comes to equality.
- Jobs that are tied to trend tend to pay better.

MARKET INTEGRATION
-Disadvantages:
- Occurs when prices among diff locations or  It can bring more difficulties
related goods follow similar patterns over a  Requires huge amount of money
long period of time.  Creates barriers to market entry
- Groups of prices often move proportionally to  Decrease in flexibility
each other and when is very clear among
different markets.
- Refers to the expansion of firms by
consolidating additional marketing functions
and activities under single management.
- Examples of these are the establishments of 2 types of Vertical Integration
wholesaling facilities by food retailers and the
setting up of another plant by a milk or 1. Forward Integration
processor. - This happens when a firm assumes another
function of marketing which is closer to the
Types of Market Integration consumption function.
- Developing into activities concerned with the
1. Horizontal Integration inputs in the company’s current business
- Where marketing agencies combine to form 2. Backward Integration
a union to reduce their effective number and - Involves ownership or combination of
the extent of actual competition in the sources of supply.
market. - Development into activities concerned with
the outputs in the company’s current
- Advantages business.
 Lower Costs
 Higher Efficiency Conglomeration
 Increased Market Power
- Combination of agencies or activities not
 Reduced Competition directly related to each other may operate
 Access to New Markets under a unified management.
- Eg. Ayala Buildings.
- Disadvantages:
 Destroyed Value -Advantages:
 Reduced Flexibility
 Can reduce investment risk
2. Vertical Integration  Increases customer base of the company
- Occurs when a firms performs more than one -Disadvantages:
activity in the sequence of the marketing
process.  Management costs increases due to size of
the group.
 Taxation of group structure reduces the
taxation benefits.

Degree of Integration

1. Ownership Integration
- Decision and assets are assured by another
firm.
2. Contract Integration
- Agreement on both firms on certain
decisions while having separate identity.

GLOBAL INTERESTATE SYSTEM

Global

- Advantages: - Pertaining to the entire globe rather than a

 Allows you to invest in assets that specific region or country. Often used
are highly specialized interchangeably with the term international,
 Gives you more control of your with one exception being in regards to mutual
Business funds among the countries.
 Requires lower cost of transactions
Interstate
 Provides more competitive - It is between the two or more states; between
advantages places or persons among the different states.

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 Concerning or affecting two or more states
politically or territorially.

System

- A regularly interacting group or

interdependent group of items forming a
unified whole.

The Modern World System World Bank Group

• Followed the crisis of the feudal system 1.
in Europe and helps explain the rise of
Western Europe to world supremacy
between 1450 to 1670
• World economic system emerged
• Now a global economy with a global 2.
political system (the modern interstate
system)
• Structured politically as interstate system
– a system of competing and allying
states 3.
• A single global economy composed of
international trade and capital flows,
transnational corporations that produce
products on several continents, as well 4.
as all the economic transactions that
occur within countries and at local
levels. 5.
• Rise and fall of hegemonic powers
International Bank Reconstruction &
Development (IBRD) : offer loans to middles
class countries and improve their economy.
International Development Association
(IDA): provide loans and grant programs that
boost economic growth.
International Finance Corporation (IFC):
provide loans for private sectors in
developing countries.
Multilateral Investment Guarantee Agency
(MIGA): to promote foreign direct investment
in developing countries.
International Centre for Settlement of
Investments Disputes (ICSID): forum for
investors in most of international
investments.

6. International Monetary Fund (IMF): ensure

the stability of international monetary system.

Global Interstate System

- It is a network wherein they have the control

in high speed highways which has the
authority in the national highways in USA. It
was opened for the public to cross and
deliver goods easily to other people as well
to different nations.
- It is also a structure of globalization wherein
there are many organizations involve, they
are the ones that complete the globalization
namely: institutions that govern international
relations, World Bank group, specialized
agencies, and specialized international
institutions.
WHO – World Health Org.
ILO - International Labor Org.
FAO – Food and Agriculture Org.
UNESCO – United Nations Educational,
Scientific, and Cultural Org.
State
- Community of persons more or less
numerous, occupying a definite portion of a
territory, independent form external control
and possessing a government to which the
great body of inhabitants render habitual
obedience

Elements of State

1. People
2. Territory
3. Sovereignty

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 4. Government 3. NAFTA (1994)
- Removed most barriers to trade and
investment among the U.S.A, Canada, and
Global Economy Mexico.
- Refers to the increasing integration of - All the non-tariff were eliminated.
economies around the world particularly the
movement of goods, services, and capital Development
across borders. - A nation improves the economic, political,
Macroeconomics and social wellbeing of its people.

- The study of the behavior and decisions of

entire economies. Indicator of Development
1. Per Capita GDP
Globalization 2. Energy Consumption
- A modern term used to describe the changes 3. Labor Force
in societies and the world economy that 4. Literacy
result from dramatically increased 5. Infant Morality
international trade and cultural exchange. 6. Life Expectancy
7. Consumer Goods
The Phenomenon can Thus Several Issues in Development
Interconnected Dimension 1. Rapid population growth
2. Resource distribution
A. The Globalization of Trade of Goods and 3. Lack of Physical Capital
Services 4. Lack of Human Capital
B. The Globalization of Finance and Capital  Health/Nutrition
Market  Education/Training
C. The Globalization of Technology and  “Brain Drain”
Communication 5. Political Factors
D. The Globalization of Industry  Shifting from Colonial Dependency
 Government Corruption
Why do Nations Trade?  Political Instability (civil wars, social
- They are diff. from each other. unrest, lack of government
- To achieve economies of scale in production. infrastructures)
Drivers of Globalization 6. Debt
- The declined in barriers to the free flow of World Bank
goods services and capital that has since the - Vital source of financial and technical
end of the WW2. assistance to developing countries
- The technological chance, particularly the - Made up of 186 member countries
dramatic development in recent years in - Provide low interest loans
communication, information processing and - Est. 1944 in Washington, D.C
transpo technologies. - 3 Pillars of World Bank:
 Results
The Globalization Market  Reform
- Merging of historically distinct and separate  Resources
national markets into one huge global market International Monetary Fund
place. - Started in 1944 in Bretton Woods
Conference
Trade Barriers - Foster global monetary cooperation, etc.
- Preventing a foreign product from freely - Creates structural adjustment programs in
entering into a nation’s territory. less developing countries.
World Trade Org.
Types of Trade barriers - Dealing with rules of trade bet. nations
1. Import Quota - Est. Jan 1, 1995 Geneva, Switzerland
2. Voluntary Export Restraint - 153 countries
3. Tariff - Functions:
4. Informal Barriers
 Administering WTO Trade
5. Government Licensing Restrictions
agreements
6. Government Health and Safety
 Forum for trade Negotiations
Requirements
 Handling trade disputes
Protectionism  Monitoring national trade policies
- The use of trade barriers to protect industries  Technical assistance and training for
from foreign competition. developing countries
 Cooperation with other international
International Agreements org
1. World Trade Org. (1995)
- Dealing with global rules of trade between
nations.
- Ensures trade flows as smoothly, WORLD OF REGIONS: GLOBAL DIVIDES – THE
predictability, and freely as possible. NORTH AND SOUTH
2. European Union (1951/1999)
- Regional Economic agreement among 27
countries across the European continent. Global North

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 - Include the U.S.A, Canada, Europe,,
developed parts of Asia, as well as Australia
and New Zealand.
- Defined as the richer, more developed
region.
- 95% of the North has enough food and
shelter
Global South
- Is made up of Africa, Latin America, and
developing Asia including the Middle East.
- South largely corresponds with the 3rd World.
GLOBAL INTERSTATE SYSTEM
What is GLOBALIZATION?
- An ongoing process of integration between
different nations to encourage the flow of
goods, services, capital and labor.
Global Interstate System
- Refers to a controlled access for national
relations. It is the study of interconnected of
social, politics, economics, and low on a
global level.
The Union of International Associations (UIA)
- A research institute and documentation
centre, based in Brussels, was founded over
100 years ago, in 1907 by Henri La Fontaine
and Paul Ollet, a founding father of what is
now called Information Science.
- Non-profit, apolitical, independent, and non-
governmental in nature, the UIA has been a
pioneer in the research, monitoring, and
provisions of info. On International Org.,
International associations, and their global
challenges since 1907.
- The UIA has consultative status with
ECOSOC and associate status with
UNESCO.
UNESCO
- Intergovernmental org. tasked to promote
international co-operation and create and
maintain international order.
- Objectives include maintain international
peace and security, promoting human rights,
fostering social and economic development,
protecting the environment, and providing
humanitarian aid in cases of famine, natural
disaster, and armed conflict.
- The UN is the largest, most familiar, most
internationally represented and most
powerful intergovernmental org. in the world.
6 Main Organs of UN
1. General Assembly
- Main deliberative organ of the UN comprised
of all member states, each of which has one
vote.
- Its resolutions are only recommendations to
the Member States, but as they represent the
majority of the world’s view they carry heavy
moral weight and often lead countries to join
international agreements called treaties.
2. Security Council
- Has primary responsibility under the UN
Charter to maintain international peace and
security. Unlike the Gen. Assembly, the
Security Council does not hold regular
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meetings. It can be conveyed anytime,
whenever international peace is threatened.
- Per Lasson Khrog (Jun 18 1889-Mar 3 1965)
was a Norwegian artist. He is most
frequently associated with the mural he
created for the United Nations Security
Council Chamber, located in the United
Nations building in New York City.
3. United Nations Economic and Social
Council (ECOSOC)
- ECOSOC brings people and issues together
to promote collective action for a sustainable
world
- At the centre of the UN development system,
we conduct cutting-edge analysis, agree on
global norms and advocate for progress.
- Central body for coordinating the economic
and social work of the United Nations and the
UN System.
4. The Trusteeship Council
- The system was created at the end of the
World War II to promote the advancement of
the inhabitants of those dependent Territories
and their progressive development towards
self-governance or independence.
- Council is comprised of the permanent
members of the Security Council—China,
France, the Russian Federation, the United
Kingdom and the United States.
- 11 trust territories
Western Samoa
Tanganyika
Rwanda-Urundi
Cameroons under British administration
Cameroons under French administration
Togoland under British administration
Togoland under French administration
New Guinea
Nauru
Strategic Trust Territory/ Trust Territory of
the Pacific Islands
Italian Somaliland
5. The International Court of Justice
- Is the UN’s main judicial organ, located in
The Hague, Netherlands. Established in
1945, the ICJ, or “World Court” assumed its
functions in 1946. The Court settles legal
disputes only between nations and not
between individuals, in accordance with
international law.
6. The Secretariat
- The Secretariat is made up of an
international staff working at UN
Headquarters in New York, as well as UN
offices in Geneva, Vienna, Nairobi and other
locations.
Regional Commissions
- The Secretariat is made up of an
international staff working at UN
Headquarters in New York, as well as UN
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 offices in Geneva, Vienna, Nairobi and other
locations.
- Regional Commissions
 ECA - Economic Commission for Africa
 ECE - Economic Commission for
Europe
 ECLAC – Economic Commission for
Latin America and Caribbean
 ECSCAP - Economic and Social
Commission for Asia and the Pacific
 ESCWA - Economic and Social
Commission for Western Asia
The Role of Regional Commission
- UN Implementation of the 2030 Agenda for
the Sustainable Development Goals that
have been made on September 27, 2015.
1. Integrating SDGs into national
development planning and fiscal
frameworks
2. Promoting policy coherence, consistency
and coordination
3. Enhancement of data and statistical
capacities of member states for
implementation of the 2030 Agenda
4. Identify and promote alternative and
innovative sources of financing for
development
5. Leverage science, technology and
innovation in support of Agenda 2030
6. Tapping South – South and regional
partnerships
7. Translating regional models into public
goods
Institutions Related to World Trade
1. World Bank - the international financial
institution that provides loans to countries
for capital projects
2. International Bank Reconstruction
and Development (IBRD) - offers loans
to middle-income countries to develop
and improve their economy
3. International Finance Corporation
(IFC)- providing loans for private sectors
in developing countries to create markets
that open up opportunities for all.
4. Multilateral Investment Guarantee
Agency (MIGA) - to promote foreign
direct investment (FDI) into developing
countries to help support economic
growth, reduce poverty, and improve
people's live.
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5. International Centre for Settlement of
Investment Disputes (ICSID) -
administered the majority of all
international investment cases. It is the
forum for investor in most of international
investment treaties and in numerous
investment laws and contracts.
6. International Monetary Fund (IMF) -
ensure the stability of the international
monetary system. It does so in three
ways: keeping track of the global
economy and the economies of
member countries; lending to countries
with balance of payments difficulties;
and giving practical help to members.
7. World Trade Organization (WTO) -
regulates international trades, deals with
the rule of trade between nations,
ensures the trade will flows smoothly,
predictably
and freely as possible.
8. Organization for Economic
Cooperation and Development (OECD)
- Providing a platform to compare policy
experiences, seeking answers to
common problems, identify good
practices and coordinate domestic and
international policies of its members.
SPECIALIZED AGENCIES
1. International Labor Organization - a United
Nations agency dealing with labor problems,
particularly international labor standards,
social protection, and work opportunities for
all.
2. Food and Agriculture Organization of the
United Nations (FAO) –
- a specialized agency of the United Nations
that leads international efforts to defeat
hunger.
- Help eliminate hunger, food insecurity and
malnutrition, Reduce Rural Poverty, Make
agriculture, forestry and fisheries more
productive and sustainable
- Enable inclusive and efficient agricultural and
food systems increase the resilience of
livelihoods to threats and crises.
3. United Nations Educational, Scientific and
Cultural Organization
- To contribute to peace and security by
promoting international collaboration through
educational, scientific, and cultural reforms in
order to increase universal respect for
justice, the rule of law, and human rights
along with fundamental freedom. Contribute
to build peace.
4. World Health Organization
Building a better, healthier future for people
all over the world, Concern about public
health , Prime concern is to eradicate and
combat dangerous diseases like AIDS/HIVS
and Make researches in medicines and
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 vaccines to eliminate diseases, and
development of nutritious foods
Responsible for World Health Report and
Survey.

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