ACTIVITIES FOR LESSON 2

1. What is difference between Economic Globalization from Internationalization.

Explain your answer here using the Module and below your answer look for an
additional explanation from the internet (not Blog) like article or news indicate the
site where you got it and summarize in bulleted form the article that you read
 Economic globalization is the growth of trade systems within Corporations and
non-governmental organizations (NGOs) are examples of transnational actors.
 Economic globalization widely means the integration of national economies
worldwide, particularly through trade and financial flows. Economic globalization
includes exchange of goods and services, financial flows and trade in assets
(such as currency and stocks), the technology transfer and ideas, and
international labor or migration flows.
https://www.wita.org/ustrade/basics-of-trade/economic-globalization/
 Internationalization is the connection between and among nations, people,
cultures, organizations, and even a system, whereas globalization emphasizes
the concept of global economic, intellectual, and cultural exchange. The
distinction between the concepts of "global flow" and "relationship among
nations" is both striking and profound. As a result, these two concepts are very
similar but also very different.
https://www.aqu.cat/elButlleti/butlleti75/articles1_en.html#.YhhTDOhBzrc
2. WATCH THE VIDEO- summarize it into different stages accomplish each stage
in in bulleted form  https://youtu.be/c6F-G4oFxf8-

 The rules for facilitating international monetary trade between nations are
referred to as the international monetary trade system. The history of
International money trade consists of stages which are the Gold Standard,
Sterling-Based Gold Standard, Collapse of the Gold Standard, Bretton
Standard and lastly is the End of the Bretton Woods Era. This same United
Kingdom was the first country to adopt the Golden Standard in 1821, but Russia,
France, Germany, the United States, and Austria Hungary fell into line in the
nineteenth century. During this time, gold was accepted as a currency for goods
and services. Gold standard has different advantages and disadvantages, when
it comes to the advantages of gold, it has been a highly demanded commodity,
has a high resistance to corrosion because it can start in a longer time period,
and gold can be melted into small coins or large bars, while the disadvantages of
gold are that it is too expensive when it comes to transporting, ensuring, and
even loading fee, and gold sank into sea water when accidents occur, which is
why they provided a new way to international payments.

 In the stage of Sterling-Based Gold Standard, British Bank opened branches

and used the pound sterling for international transactions. From year 1821 to
1918, British bank sterling was a very important currency, and London became a
dominant international financial center.

 The Collapse of the Gold Standard, as a result of the sterling gold standard,
nations need to finance the effects of expenses after World War I, which is why
they print more paper currency, which can lead to repeat inflations. Inflation is
defined as a situation in which the general level of prices rises while purchasing
power falls. Following the conference, the gold standard was reintroduced in the
1920s, and the United Kingdom returned to its gold standard level. The dollar
was devalued in the United States in 1934. People lost faith in the gold standard
because it is no longer an accurate indicator in competitive devaluation countries
made their own goods cheaper, which can result in increased exports activities.
During the Great Depression of the 1930s, the gold standard was abandoned
because it was caused by an economic depression in the United States, which
resulted in inflation, political instability, and unemployment. When World War II
occurred, the gold standard was vanished.

 The Bretton Woods Era, after the World War I, breakdowns in the monetary
system and international trade have resulted in the economic conditions that led
to World War II and the Great Depression. Deployment made the decision to
 create a post-war economic environment to promote world peace and prosperity.
Representatives from 44 nations met in Britton Woods in 1944 to finalize the
agreement. The result of agreement in Britton Woods, first is an economic
environment that promotes worldwide peace and prosperity. Secondly is
international bank for reconstruction and development and international monetary
fund and lastly is the new international modified monetary system. The new
system was designed to balance the fixed exchange rate of the gold standard in
districts. The important feature of the monetary trade system is fixed exchange
rate system, built in flexibility, and funds for economic development.

 The World Bank is the International Bank for Reconstruction and Development
(IBRD), which is owned by nearly 124 countries. The World Bank employs a
weighted voting system to reflect its members' economic power and contribution.
The World Bank borrows money in its own name from international capital
markets because its goal is to help finance the reconstruction of European
economies and to build economies in developing countries around the world.
World bank has a different group
o International Development Association (IDA) World Bank to Government
o International Finance Corporation (IFC) World Bank to Private Sector
o Multicultural Guarantee Agency (MIGA) World Bank providing assurances

 World Bank has a Hard Loan Policy, which can make loan if there is a guarantee
that the loan will be repaid.
 International Development Association (IDA) was established in year 1960, IDA
was offered soft loans, long maturities and even the 10 years grace period before
repaying. In Bhutan IDA was bought $31 Million credit for construction of rural
schools and curricular development.
 International Finance Corporation (IFC) was established in year 1965, it is in
charge with promoting development of private sector, functions similar to
investment banker. IFC gave Bangladesh $1.52 Billion for transforming garments
sectors, improving access to clean electricity and contributing to food security.
 Multicultural Guarantee Agency (MIGA) set up in year 1988, to overcome the
reluctance issue in investing in developing countries and offering private sectors
insurance against non-commercial risks.
 The duty of International Monetary Funds (IMF) is to regulates the fixed
exchange rates and enforce the rules of international monetary systems. IMF has
a different objective which are the following:
o Promote International Monetary Cooperation
o Assist in Multilateral Systems of Payments
o Promote exchange stability
o Facilitate the expansion & balanced growth of International trade
o Shorten the duration & lessen the degree of Disequilibrium

 The Bretton Woods System, also known as the Dollar Gold Standard. Countries
agreed to peg the value of their currencies to gold in this system. However, the
 United States pledged to redeem its currency for gold, and the US Dollar became
the Bretton Woods system's cornerstone. And as a result of their disagreement,
each country established a par value for its currency, resulting in the Bretton
Woods agreement's fixed exchange rate system.
 The End of Bretton Woods System, supply did not expand in the short run, and
the US Dollar was the only source of liquidity, making the system unreliable. The
willingness of foreigners to increase their holdings of dollars determines the
expansion of internal liquidity in the retinoids system. As foreign holdings grew,
people began to doubt the US’s ability to fulfill the Bretton Woods obligation to
convert the dollar to gold.
 Countries began to allow currency to flow in 1971 in order to structure and
secure the international monetary system; however, by March 1973, the center of
currency had been filled, and they were unable to successfully resist free market
forces and establish a flexible exchange rate system.
 Under the Jamaica agreement, each country was free to use whatever exchange
rate system it deemed best. The United States has adopted a floating exchange
rate, whereas other countries have dropped fixed exchange rates by pegging
their currencies.
 The European Monetary System (EMS) believes that flexible exchange rates will
impede the creation of an integrated European economy.
 Approaches to resolve the International Debt Crisis is the baker plan. The baker
Plan approaches are:
o Stressed the importance of debt rescheduling
o Tight IMF imposed controls over domestics monetary and fiscal policies

o Continued lending to debtor countries

 Brady Plan approaches are:
 Reduce the debts of trouble countries by:
o Writing parts of debts
o Provide the countries with funds to buy back their loan notes.
 3. Find the conversion of the different currency into peso from 2020-2022
COUNTRY CURRENCY 2020 2021 2022 CONVERSION
TO PESO (PER
1)
AMERICA US Dollars ($) 49.6076 49.2756 PHP 51.3080 PHP 1
PHP
LONDON pound 65.6383 67.6543 PHP 68.8040 PHP 1
sterling (£/GBP) PHP
GERMANY Euro (€) 56.201 PHP 57.993 PHP 57.690 PHP 1
JAPAN Yen (JPY) 0.4643 PHP 0.4413 PHP 0.4460 PHP 1
KOREA Won (KRW) 0.0437 PHP 0.0427 PHP 0.0430 PHP 1
TAIWAN NT Dollar (TWD) 1.7096 PHP 1.8315 PHP 1.8387 PHP 1
HONGKONG Dollar (HKD) 6.1988 PHP 6.5101 PHP 6.5691 PHP 1
SINGAPORE Dollar (SGD) 36.1994 37.5547 PHP 38.0829 PHP 1
PHP
SAUDI ARABIA Saudi riyal, (SR) 13.219 PHP 13.137 PHP 13.6448 PHP 1
CANADA Dollar (CAD) 37.3733 39.8540 PHP 40.2726 PHP 1
PHP
SPAIN Euro (€) 56.201 PHP 57.993 PHP 57.690 PHP 1
ITALY Euro (€) 56.201 PHP 57.993 PHP 57.690 PHP 1
KUWAIT Kuwaiti Dinar KD) 161.7093 163.3088 169.50 PHP 1
PHP PHP.
QATAR Qatari Rial, (QR) 13.624 13.5221 14.023 PHP 1
PHP. PHP.

LOOK FOR ARTICLES THAT TALKS ABOUT THE GDP OF THE PHILIPPINES FROM
2010- 2020 CHOOSE TWO ARTICLES AND COMPARE I) for your referenc
2015 2016

ARTICLE 2015 2016

https://psa.gov.ph/content/philippine-
economy-grew-63-percent-q4-2015-
58-percent-2015

https://psa.gov.ph/content/philippine-
economy-posts-66-percent-gdp-
growth-fourth-quarter-2016-68-
percent-2016

https://psa.gov.ph/content/philippine-economy-grew-63-percent-q4-2015-58-percent-
2015

 In the year 2015, the country's Gross Domestic Product (GDP) increased by 6.3
percent in the fourth quarter of 2015, and this was the highest quarterly growth in
the year. However, the rate of growth is lower than the 6.6 percent recorded in
the same period last year. The Services sector grew at a faster rate of 7.4
percent in the fourth quarter, compared to 5.6 percent in the previous quarter,
while Industry slowed to 6.8 percent from 9.1 percent. Agriculture, on the other
hand, contracted by 0.3 percent after increasing by 4.2 percent the year before.
The economy grew 5.8% in the fourth quarter of 2015, compared to 6.1 percent
in 2014. The economy's main driver was services, which grew at a rate of 6.7
percent in comparison to 5.9 percent the year before. Both industry and
agriculture as a whole slowed down to 6.0 percent and 0.2 percent, respectively,
from 7.9 percent and 1.6 percent. The Rest of the World's Net Primary Income
(NPI) increased by 5.4 percent in the fourth quarter of 2015, compared to 1.4
 percent the previous year, resulting in a 6.2 percent increase in Gross National
Income (GNI), up from 5.7 percent the year before.

https://psa.gov.ph/content/philippine-economy-posts-66-percent-gdp-growth-fourth-
quarter-2016-68-percent-2016
 In the fourth quarter of 2016, the economy grew by 6.6 percent, bringing the
year's total growth to 6.8 percent. Despite the fact that the fourth quarter had the
slowest growth of the year, it was still higher than the 6.5 percent growth seen in
2015. The major growth drivers for the quarter were manufacturing, trade, real
estate, renting, and business activities. Industry grew at the fastest rate of all the
major sectors of the economy, at 7.6%, up from 6.5 percent the year before.
Services grew more slowly rate of 7.4 percent in the fourth quarter of 2015,
compared to 7.8 percent the previous quarter. Net Primary Income (NPI) growth
slowed to 4.1 percent in the fourth quarter of 2015, down from 11.5 percent in the
previous quarter. As a result, the Gross National Income (GNI) risen by 6.1
percent, slower than the 7.3 percent increase the previous year.