STRUCTURES OF GLOBALIZATION

Global Economy
A PRODUCT OF ECONOMIC GLOBALIZATION

Presented by: Jackielyn C. Malate

LESSON OBJECTIVES

At the end of this lesson, you should be able to:

1. Define economic globalization:

2. Identify the actors that facilitate economic globalization;
3. Define the modern world system; and
4. Articulate a stance on global economic integration.
 Economic Globalization

• is the expansion of national economies, the

global market driven by modern technologies
and institutional set ups promote faster and
easier flow of goods and capital.

• the phenomenon of economic globalization

includes greater integration of economic
activities, products, and systems across the
world.
Global economic integration is not new
 the earlier explorers were crucial in
intercontinental trade and were also a
predecessor of modern economic
globalization.
 Chinese, and even earlier, trades in Asia
 Globalization Process “have been on going
ever since humans began migrating to
another parts of the World.”
 Early humans tends to focus on commodities
like spices, tea, gold or other precious metals.
What are the actors that Facilitate Economic
Globalization?
 International Economic Organizations
• International Monetary Fund (IMF)

• International Financial Institutions (IFIs)

• Organization for Economic Cooperation and Development

(OECD)

• Association of Southeast Asian Nations (ASEAN)

• The Group of 8 (G8) & G20

 Multinational Companies (MNCs)

• In 2006, there were 88,000 MNCs identified.

• Dutch and British East India

• Muscovy Company

• Royal African Company

• Hudson Bay Company

What are the actors that Facilitate Economic
Globalization?

 Central Banks - considered one of the most powerful institutions in

the world economy since they can lead economic development.
 Global Civil Society- seen as either composed of individuals or
group of individuals.
 World System

 Is based on the theory of Wallerstein (1974) that recognizes that

social and economic change is not only endogenous to a county,
but is affected by its interaction to exogenous institutions, thus the
focus on world-systems.

Wallerstein theorized that the Global Economy is divided into the core, semi-
periphery, and periphery.
The core is the center of economic activities where most of the population lives and
economic institutions and services are based. Majority of the raw materials and
productions are done or sourced out in the periphery. The semi-periphery areas
serve as distributors or add value to the raw materials by processing them for the
core areas.