INTERNATIONAL ECONOMICS 2020/21 | TEACHER: LUÍS FERREIRA

INTERNATIONAL ECONOMICS
YEAR 2020/21

LUÍS FERREIRA
luis.ferreira@isag.pt
https://www.youtube.com/watch?v=E9xYiqiM80U&feature=emb_title
ECONOMIA INTERNACIONAL 2019/20 | DOCENTE: LUÍS FERREIRA
INTERNATIONAL ECONOMICS:
WORK PLAN
1. THE INTERNATIONAL 3. INTERNATIONALIZATION
ECONOMY AND THE 2. INTERNATIONAL TRADE PROCESS: THE COMPANY IN
GLOBALIZATION PROCESS THE GLOBAL MARKET

3.1 International business

development
2.1 Main theoretical
The globalization process 3.2 The international
approaches
expansion process

3.3 Access to markets

2.2 Trade policy: 3.4 The company in the

The international global market
protectionism vs free
economy
trade 3.5 Internationalization
strategies: case studies

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INTERNATIONAL
ECONOMICS:
ASSESSMENT

Written Test (70%)

•June, 25th

Country
Competitiveness
Report (30%)
•April, 23rd

INTERNATIONAL ECONOMICS 2020/21 | TEACHER: LUÍS FERREIRA 5

INTERNATIONAL ECONOMICS:
COUNTRY REPORT
Rules Challenge
Screening for
Market Profile Doing Business
§Delivery until April 23rd § Prepare a report on opportunities
the competitiveness of
§On ISAG's e-learning your country
platform
Key indicators Main sectors and
§10/15 slides industries How to develop
business
§Warning: only original Political, social,
content! economic and
legal context
Rising sectors
Development and
competitiveness
stage
Business culture
Commercial Opportunities
relations Portugal/
country

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 THE INTERNATIONAL ECONOMY
AND THE GLOBALIZATION 1.
PROCESS
7
THE INTERNATIONAL ECONOMY AND
THE GLOBALIZATION PROCESS

What

is globalization

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THE
GLOBALIZATION
PROCESS
Ian Goldin, Navigating our
global future
Fonte: TEDGlobal 2009

https://www.ted.com/talks/ian_goldin_navigating_our_global_future?utm_source=
tedcomshare&utm_medium=email&utm_campaign=tedspread--b#t-45902

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THE INTERNATIONAL ECONOMY AND
THE GLOBALIZATION PROCESS
3 key Ideas:

Globalization is Change is faster The future is more

more complex and faster unpredictable
> Increasing > Technology (IT/ > How are we going
inequalities - many bio/ nano) evolved to implement an
are forgotten and without precedents. ongoing technological
abandoned. > Integration and change? Threat or
> Growth in fragility homogenization is opportunity?
and instability. dominant. > How to be more
> Increased systemic > Open great inclusive?
risk: interconnection opportunities for > How to give a more
and interdependence innovation and ecological sense to
can be fatal. development. development?
> How to guarantee
sustainability?
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WHAT IS CHANGING?
EVERYTHING.
A revolution in progress - the digital age

Paradigm change Interaction and the immediate are

kings
• A clash between the age of industry vs the age of
knowledge. • Now, but not forever ...

Increased virtual interaction and

Nothing is evergreen
mobility.
• Change is the only constant.
• We co-create solutions
• We want to participate in creating the solution;
Speeding? • We want new production models (crowdsourcing).
• Increasing rates of transformation on a large scale
A new space: on-live
We live in a hyperconnected world
• The time when online and offline merge into a
• Nothing exists outside the network ... single space.

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 “We are on board a technological
revolution that will fundamentally
transform the way we live, work and
relate.
In its scale, scope and complexity, the
transformation will be unlike anything
that humanity has experienced before.”
- Fourth Industrial Revolution, Klaus Schwab, World Economic Forum founder

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 VIDEO: THE
FOURTH
INDUSTRIAL
REVOLUTION |
FULL VERSION

FONTE: WEF

https://youtu.be/khjY5LWF3tg?t=68

INTERNATIONAL ECONOMICS 2020/21 | TEACHER: LUÍS FERREIRA 13

THE INTERNATIONAL ECONOMY AND
THE GLOBALIZATION PROCESS
Factors of
Globalization
§ Greater mobility: ease and speed of travel by air, land and sea;
§ Drop in communication and transportation costs;
§ Expansion of social media (TV, radio, press, films, internet, music, etc.);
§ Relative equality in access to new technologies and equipment;
§ Elimination/ reduction of barriers to the expansion of international trade
and FDI;
§ Economies of scale, effects of synergies;
§ Explosion of computer networks of companies, individuals and states (eg
Facebook, Linkedin, etc.);
§ Deepening the connection of the capital and commodities markets;
§ Emergence of government policies, competitive pressures and increased
competitiveness.

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THE INTERNATIONAL ECONOMY AND
THE GLOBALIZATION PROCESS
3 Main Dimensions
Economical
• Financial market sphere;
• International trade flows;
• Multinational power;
• Domain of trade;
• Foreign direct investments;
• Worldwide indebtedness;
• Unequal distribution of natural
resources.
15
Political
• The emergence of new states;
• Conflicts of the unipolar world;
• Weakening of the Nation-State;
• Role of international organizations;
• Political democratization.
INTERNATIONAL ECONOMICS 2020/21 | TEACHER: LUÍS FERREIRA
Socio-cultural
• Nationality and traditions;
• Environment: the ecological
challenge;
• Communication media and new
technologies: massification of
information flows and the rapid
effect of contamination;
• Tourism and leisure;
• Religion and fundamentalism;
• Refocusing to the immediate.
THE INTERNATIONAL ECONOMY AND
THE GLOBALIZATION PROCESS
Economic Globalization Profitability
(primacy of
economic
interests)
It is an expansion process
supported by the development of
ICT, which is organized on the
basis of asymmetric relationships: Market
(free
movement
of goods and
services,
capital and
some globalize, defining market people)
orientations and rhythms,
Based on neo-
liberal principles

and others are globalized, with

negative effects on large sectors
of the population.

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THE INTERNATIONAL
ECONOMY AND THE
GLOBALIZATION
PROCESS
Video: Globalization 4.0
| The Geopolitical
Challenges

Fonte: WEF

https://www.youtube.com/watch?v=78AgbgdJ7NA&t=4s
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THE INTERNATIONAL ECONOMY AND
THE GLOBALIZATION PROCESS
Characteristics of Economic Globalization – Advantages
Intensifying Increased
Quality Stimulating
Cost Reduction Consumer Competitive
Improvement Economic Growth
Preferences Capacity
• Achieving • Standardization of • Global product • Integration of the • The increase in
economies of products, recognition, along company's consumer income
scale, • Concentration of with similar competitive favours the
• Transfer of activities, marketing actions in the creation of jobs.
production to • Standardization of messages in global market. • Creation and
regions with marketing actions, different countries, expansion of
cheaper production etc. reinforce consumer middle classes
factors, confidence and with greater
• Exploitation of buyer momentum. expression and,
flexibility resulting above all, more
from presence in purchasing power.
several markets,
• Increased
negotiating
capacity, etc.

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THE INTERNATIONAL ECONOMY AND
THE GLOBALIZATION PROCESS
Characteristics of Economic Globalization – Disadvantages
Integrated
Product Concentration of Marketing
Competitive Job Destruction
Homogenization Activities Standardization
Actions

• Placement of • Resistance to ideas • Decreased ability • Availability of • Relocation of

standard or processes from to adapt to the many resources productive
household product other locations, client and and efforts to activities from
that does not fully causing a drop in regional/ local weaken global developed
meet the needs of enthusiasm for markets. market threats, countries to other
any customer. both employees • Loss of identity especially countries with
and customers. and cultural and/ competition. lower wage costs.
or regional affinity. • Domain of large • Inability to
transnational generate enough
financial new jobs for the
conglomerates. created workforce.

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INTERNATIONAL TRADE AND
FINANCE
INTERNATIONAL ECONOMICS
Analyses the flow of goods, services and payments between a
nation and the rest of the world, regulatory policies and its
effect on the nation's well-being (Salvatore, 1999).

Economic approach Financial approach

(buying and selling) (payments and receipts)

INTERNATIONAL TRADE INTERNATIONAL FINANCE

Exchange of goods and It focuses on the payment,
services between economic receipt and financing of
agents from different commercial transactions and
countries. international investments, that
is, financial transactions
(monetary side).

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