THE CONTEMPORARY WORLD

Structures of Globalization

PRELIM ACTIVITY 2

NAME: TRISTAN JERALD BECHAYDA

SUBJECT: THE CONTEMPORARY WORLD
COURSE/YR/ SEC: BSA - 2A
1. In your own words, define Economic Globalization? (5pts)

Economic globalization is the process of driving worldwide movements of products,

funds, information and people. It is what some consider as a challenge to their values that
they believe as always been there, overlooking that probably most value we have ever
generated are a result of globalization. The demand for protectionism is what the phrase
conveys, the protection of something. But most certainly that something was produced
owing to globalization. It is consequently about the locking out of others that would desire
to reserve the same privilege.

2. Make a chart comparing the different political – economic systems in terms of the
following: (15pts)

Capitalism Socialism Communism

Capitalism is an Socialism, social and Communism is a

economic system in economic theory that political and economic
which private owners demands for public philosophy that puts
or corporations possess rather than private itself in contrast to
capital assets. The ownership or liberal democracy and
production of goods management of capitalism, arguing
and services is based property and natural instead for a classless
Definition on supply and demand resources. According to society in which the
in the general market— the socialist ideology, means of production
known as a market people do not live or are held communally
economy—rather than work in isolation but and private property is
via central planning— live in partnership with non-existent or
known as a planned one another. severely regulated.
economy or command
economy.
 The means of The means of The means of
production are owned production are owned production are owned
Property
privately. both by the state and publicly, or in other
Ownership
the individuals. words by the state.

Governments are In a socialist economy, Communism is an

public, not private the government plans economic system
institutions. They do and regulates all the where the
not engage voluntarily economic activities government owns
but rather use taxes, centrally at a state most of the factors of
Government regulations, police, and level. The decisions production and
Intervention on military to pursue related to production, decides the allocation
Economic objectives that are free allocation of resources, of resources and what
Activities of the considerations of employment, pricing, products and services
capitalism. and consumption, are will be provided.
completely dependent
on the government or
its central planning
authority.
In capitalism, price Resources are utilized Central planning by
determines allocation to produce socially the government
Decision and prices depend of beneficial goods determines allocation
Making in interaction between without considering of resources. Such
Allocation of supply and demand. profit margins. planning is
resources and Production is efficient predetermined, thus it
price due to avoided is less flexible and in
competition. many cases less
efficient.
The essential feature of The primary concern of Communism aims to
capitalism is the motive the socialist model of replace private
to make a profit. economics is an property and a profit-
equitable distribution based economy with
of wealth public ownership and
Motivation communal control of
Driver at least the major
means of production
(e.g., mines, mills, and
factories) and the
natural resources of a
society.