Julian, Mary Joy M.

BSTM-703 November 18,2021

03 Generalization 1
The Contemporary World

Instructions
Answer at least one (1) question in the form of a short essay:
• What are the similarities and differences of the global south from the
developing nations?

➢ The Global South is an emerging term, used by the World Bank and
other organizations, identifying countries with one side of the
underlying global North–South divide, the other side being the
countries of the Global North. As such the term does not inherently
refer to a geographical south, for example most of the Global
South is within the Northern Hemisphere. The term was first
introduced as a more open and value free alternative to "third
world" and similar potentially "valuing" terms like developing
countries. Countries of the Global South have been described as
newly industrialized or in the process of industrializing, are largely
considered by freedom indices to have lower-quality democracies,
and frequently have a history of colonialism by Northern, often
European states. The countries Brazil, India, Mexico, Indonesia, and
China have the largest populations and economies among Southern
states. The overwhelming majority of these countries are located
in or near the tropics. Nation where the average income is much
lower than in industrial nations, where the economy relies on a
few exports crop, and where farming is conducted by primitive
methods. A nation where the average income is much lower than in
industrial nations, where the economy relies on a few exports
crop, and where farming is conducted by primitive methods. In
many developing nations, rapid population growth threatens the
supply of food. Developing nations have also been called
underdeveloped nations. Most of them are in Africa, Asia, and Latin
America. Developing Nations refers to the sovereign state, whose
economy has highly progressed and possesses great technological
infrastructure, as compared to other nations.

• What are the commonalities and differences between regionalization and

globalization?
➢ Both global and regional economic linkages have strengthened
substantially over the past quarter century. We employ a
dynamic factor model to analyze the implications of these
linkages for the evolution of global and regional business cycles.
 Our model allows us to assess the roles played by the global,
regional, and country-specific factors in explaining business
cycles in a large sample of countries and regions over the
period 1960–2010. We find that, since the mid-1980s, the
importance of regional factors has increased markedly in
explaining business cycles especially in regions that experienced
a sharp growth in intra-regional trade and financial flows. By
contrast, the relative importance of the global factor has declined
over the same period. In short, the recent era of globalization
has witnessed the emergence of regional business cycles.

• What are the factors that lead the Asian region to greater integration?

➢ Arguably, international trade plays an important role in shaping the

growth of the Asian region. Trade is also a main vehicle that
links up the Asian economies and integrates them into the global
economy. After the 1997 financial crisis, the Asian economies
devoted considerable effort to promote regional trade. Indeed, soon
after the crisis, the intra-Asia trade activity resumed its strength
and intensified noticeably. In the last two decades, the growth of
trade between Asia and the rest of the world was quite phenomenal.
At the same time, the intra-regional trade increased at a rapid
pace. According to the Asian ,intra-regional trade in developing
Asia was about 40 percent of total exports in 2004, up from just 22
percent in 1980. The significant rise in intra-regional trade attests
the increasing degree of integration among Asian economies. There
are a few factors contributing to the growth of the Asian intra-
regional trade. They include the rise in regional income, the
removal of trade barriers, and advances in production and
transportation technologies. Compared with other regions, such as
the European Union, intra-regional trade in Asia is characterized by a
high proportion of trade in parts, components, and intermediate
products. The People’s Republic of China (hereinafter China) is
conceived to hold a significant position in the intra-regional
component trade. While its return to the world stage is often
described in terms laden with hyperbole, it is difficult to overstate
China’s role in the regional production chain. Being the last leg
of the production chain, China assembles final products and
exports them to the rest of the world. Thus, the intra-regional
trade in Asia is trade creating instead of trade diverting. It is not
expanded at the expense of its trade with the rest of the world, and
both regional integration and its integration with the world are
strengthened at the same time