Lesson 2: THE GLOBALIZATION OF WORLD ECONOMIC

Let’s Check!
Activity 1
1. MERCANTILISM
2. DESCRIPTIVE THEORY
3. GLOBAL ECONOMY
4. MILTON FRIEDMAN
5. PRESCRIPTIVE THEORY
6. MODERN WORL SYSTEM
7. RACE TO THE BOTTOM
8. ECONOMIC GLOBALIZATION TODAY
9. STRUCTURALIST
10. ECONOMIC GLOBALIZATION

Let’s Analyze!
Activity 2
1. How do economic forces facilitate the depending of globalization?
-Deepening economic globalization can result to over-closer economic coordination among
countries. Globalization has increased global economic growth by improving the flow of
products capital, advance technological and civilizational development, and encourage people
to people exchanges.

2. How is the Philippines central to the history of economic globalization?

- The Philippine economy has become more aligned with the global economy. This is reflected
in the increase in commodities trade and labor migration. Finance is likewise becoming
increasingly interconnected, but at a slower pace.

3. Compare and contrast the assumption of the original Bretton Woods System with those of
the Washington consensus.
- Through with a system of strict exchange regulations, the Bretton Woods system sought to
ensure international financial stability. For the most of its life, this allowed western countries to
operate economies with low and stable inflation and full employment, but if you traveled
internationally, you could only carry a limited amount of spending money with you while the
 Washington Consensus describes the broad principles of international finance since, along with
the absence of exchange controls and a policy balance of unemployment against inflation, as
well as a few other general rules for operating such a system. The remarkable thing about the
Washington Consensus system is that it survived being blown out of the water, in 2007–2008,
perhaps merely due to inertia, with no other system commanding enough respect to replace it.

One thing they have in common is austerity: the belief that starving is the remedy for most illnesses.

Brush Up!
Activity 1

Economic globalization is a
historical process which refers to
the strengthening cooperation of Things I have
economies throughout the world,
particularly through the flow of learned
products, services, and capital
across borders. It is the outcome of
human invention and technical
advancement.

 Brings opportunities to
poor country
 Promotes working Things I have
together realized and
 Makes production more appreciate
affordable
 Things I have
discovered
Maybe through this economic
globalization most specially here our
country through this help of trading we
promote our local goods/products to the
other country because we all know
exporting goods is much profitable than
selling here in our country.