THE CONTEMPORARY WORLD (REVIEWER)

Important Terms – Guide definition

Lesson 2 – Market Globalism • Upper-Middle Income Countries

Economic system – set of economic
institution that dominates a given economy.
Institution – set of rules of conduct,
established way of thinking or way of doing
things.
Types of Economic System (C. S. M.)
• Capitalism – private individuals own
the resources.
• Socialism – there is a shared
ownership of resource and central
planning offer a more equitable
distribution of goods and services.
• Mixed Economic System –
combination of free market and
some form of government
intervention.
• High Income Countries
Six Core Claims of Market Globalism
1. 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

Characteristics of Mixed Economy on Terror

➢ Co-existence of public and private

sector. Lesson 3 – Governments and Citizens in a
Globally Interconnected World of States
➢ Existence of economic planning
➢ Role of price system and
Nation - people or aggregation of men,
government directives existing in the form of an organized society.
➢ Reduction of economic inequalities
➢ Government protection of labour
- There is 7000+ islands in the
➢ Consumers sovereignty protected
Philippines.
Four Category System (by World Bank)
(L.L.U.H.)
- Some islands are used as tourist
• Low Income Countries spots
• Low-Middle Income Countries
 - Inhabited islands should be
protected as they are rich with
nature materials.
- Hidden islands are usually occupied
by traditional people or indigenous
groups.
- Philippines is a scattered island.
State – community of persons occupying a
definite territory, possessing an organized
government, and enjoying independence
from external control (sovereignty).
Territory - a geographical area under the
jurisdiction of another country or sovereign
power or state.
People - it is the entire body of those
citizens of a state who are invested with
political power for political purposes.
• they don't constitute people if they
are pirates or bandits.
Government - it is the totality of authorities
which rule a society.
Three elements of state (P. T. G.):
• People
• Territory
• Government
Readings:
Religious https://bit.ly/331bc7F
Migration https://bit.ly/3hQxgpZ
Module 4 – Economic Relations and The
Rise of the Global Corporation
• Globalization as a business initiative
based on the belief that the world is
becoming more homogenous.
• Economic globalization is a historical
process.
• Global company is referred as
multinational corporation (MNC).
• MNC operates in two or more
countries.
International operations’ causes:
➢ Higher level of revenue
➢ Lower cost structure
Four Factors or Challenges
(P.E.O.L./P.O.L.E):
1. Public Relations – public image and
branding.
2. Ethics – maintaining highest ethical
standards.
3. Organizational Structure –
efficiently and effectively
incorporate new regions
(international expansion)
4. Leadership – attaining effective
leaders with appropriate knowledge.
• United States, Japan, and Western
Europe account for almost half of
the world’s total consumptions.
• Triad – largest multinational
companies.
 chroma USA instead of chroma
Competitive strategies of global China)
corporation (C.D.F.)
Notable persons:
(additional references: • Henry Sy
https://www.iedunote.com/competitiv • John Gokongwei
e-strategy
https://hbr.org/1982/09/how-global- • Rice’s price increases due to
companies-win-out) transportation.
1. Cost Leadership
2. Differentiation • The government or NFA corrupts the
rice farmers as per the reason they
3. Focus are not getting rich.

Globalization drivers (M.C.E.C.): Advantages:

(additional reference: • Generate wealth on other countries.
https://www.grin.com/document/57026
Disadvantages:
http://bitly.ws/jzdx) • Small companies are getting poorer.
1. Market Factors • The more manufacturing companies,
2. Cost Factors higher chance of getting pollution.

3. Environmental Factors
4. Competitive Factors Module 5 – The United Nations and
Contemporary Global Governance

Global corporation is also known as • The Bretton Woods system was

(M.T.I.G.): created by world leaders after the
1. Multi-national corporation (MNC) First and Second World War which
left ruined and devastated
2. Transnational corporation
economies.
3. International company • They promote economic
4. Global company interdependence and prosperity.
• It was influence by British economist
New multinationals (S.M.I.C.): John Maynard Keynes (founder of
• South Korea Macroeconomics), that believe
• Mexico economic crisis occur when money
• India is not being spent/moving.
• China (china forge different • Global Keynesiasm – a system of
branches, 2008, managing spending served as the
boeing airplane, 747 anchor.
 • Keynesian economics focuses on
using active government policy to
manage aggregate demand in order
to address or prevent economic
recessions.
Two financial institutions:
• The International Bank for
Reconstruction and Development
(IBRD or the World Bank)
• International Monetary Fund (IMF)
• These two are key players in
economic globalization.
United Nations – an international
organization (1945).
• Made up of 193 member states.
• Guided by their founding Charter.
• At the Peace Palace in the Hague
(Netherlands).
• Only one not located in New York.
6. The UN Secretariat – comprises of
Secretary General (chief
administrative officer) and tens of
thousands of International UN staff
members that works every day.
• Global governance – brings
together diverse actors to
coordinate.
• Provide global public goods.
• Catastrophic risk management –
putting appropriate mechanism to
reduce the likelihood of 1 billion
people dying or equivalent damage.

Five active organs (G.S.T.E.I.U.):

1. The General Assembly (GA) – main

deliberative policymaking and
representative organ.
• Has 1 GA President with a year term.

2. The Security Council (SC) –

maintains international peace and
security.
3. The Trusteesship Council – provide
international supervision for 11
Trust Territories.
4. The Economic and Social Council
(ECOSOC) – principal body for
coordination, policy review, policy
dialogue and recommendations on
economic, social, and environmental
issues.
5. The International Court of Justice –
principal judicial organ of UN.