St.

Paul University Surigao

St. Paul University System
Cor. San Nicolas & Rizal Street
Surigao City

THE CONTEMPORARY WORLD

MODULE 2
(TOPIC 1)

THE GLOBAL ECONOMY

submitted by:

jaaziah kish d. galling

bsa-201

submitted to:

mr. nikko ederio

 St. Paul University Surigao
St. Paul University System
Cor. San Nicolas & Rizal Street
Surigao City

JAAZIAH KISH D. GALING THE CONTEMPORARY WORLD

BSA 201 MR. NIKKO EDERIO

(Outcome 1: further explain economic globalization)

1. In what way do you experience the economic globalization in your locality? Cite a
particular scenario.

 We experience economic Globalization because here in our municipality we

have 2 mining companies that helped our municipality and because of the
pandemic the mining companies was temporary Closed due to the risk of
Covid 19 because of this a lot of people was jobless for months, no money to
sustain the needs of the family and the our LGU use the money of the
Municipality to give relief goods to the people in our municipality. In this
situation, the income or the money that the LGU receive from the tax of the
mining company stop because the operation of the mining has been stop to
secure the health of the workers.

2. In your personal understanding, how do you define and explain economic

globalization? Do you have a significant role in this particular existing aspect in the
economy? Share your insights to the entire class.

 In my understanding, economic globalization is the increasing

interdependence of world economies because of the growing scale of cross-
border trade of commodities and services, flow of international capital and
wide and rapid spread of technologies. Yes, I have significant role in the
existing aspect of economy I’m one of the consumer that buys the products
in the market that makes the market gain profit for their business.
 St. Paul University Surigao
St. Paul University System
Cor. San Nicolas & Rizal Street
Surigao City

JAAZIAH KISH D. GALING THE CONTEMPORARY WORLD

BSA 201 MR. NIKKO EDERIO

Activity 1: Buzz Session Activity

 Surpluses and Deficits

o The opposite of a trade surplus is a trade deficit. A trade deficit occurs when a
country imports more than it exports. A trade deficit typically also has the opposite
effect on currency exchange rates. When imports exceed exports, a country's
currency demand in terms of international trade is lower

 Economic Chains and Networks

o A supply chain is a network between a company and its suppliers to produce and
distribute a specific product to the final buyer. Companies develop
supply chains so they can reduce their costs and remain competitive in the
business landscape.

 Global Value Chains: China and the US, Scrap Metal, Waste Paper, T-shirts,
iPhones, Increasing Competitions for Commodities, Outsourcing.

o Global value chains Emphasis on the relative value of those economic activities
that are required to bring a good or service from conception, through the
different phases of production (involving a combination of physical
transformation and the input of various producer services), delivery to final
consumers, and final disposal after use (Kaplinsky 2000; Gereffi and Kaplinsky
2001). China uses our (the US) 'trash' as their 'treasure' by making them into
new products such as scrap metal, waste paper, t-shirts, apparel, iPhones,
'used' factories, & automobiles.

 Consumption and Consumption Processes

o Consumption, in economics, the use of goods and services by
households. Consumption is distinct from consumption expenditure, which is the
purchase of goods and services for use by households. Consumption differs
from consumption expenditure primarily because durable goods, such as
automobiles, generate an expenditure mainly in the period when they are
purchased, but they generate “consumption services” (for example, an automobile
provides transportation services) until they are replaced or scrapped.
 Consumers, Consumer Objects and Services
o Consumers are people or organizations that purchase products or services. The
term also refers to hiring goods and services. They are humans or other economic
entities that use a good or service. Furthermore, they do not sell on that item that
they bought.
o Consumer-object relations, or CORs for short, are qualitatively different from
person-person relations, or PPRs. Love by its very nature involves a relationship
between two people and not the two people individually
 St. Paul University Surigao
St. Paul University System
Cor. San Nicolas & Rizal Street
Surigao City

o Services are the non-physical, intangible parts of our economy, as opposed to

goods, which we can touch or handle. Services, such as banking, education,
medical treatment, and transportation make up most the economies of the rich
nations. They also represent most of the emerging nations’ economies.
 Consumption Sites and Global Resistance
o Consumption sites in economics, the use of goods and services by
households. Consumption is distinct from consumption expenditure, which is the
purchase of goods and services for use by households. Consumption differs
from consumption expenditure primarily because durable goods, such as
automobiles, generate an expenditure mainly in the period when they are
purchased, but they generate “consumption services” (for example, an automobile
provides transportation services) until they are replaced or scrapped. And The
movement is also commonly referred to as the global justice movement, alter-
globalization movement, anti-globalist movement, anti-corporate globalization
movement, or movement against neoliberal globalization. Participants base their
criticisms on several related ideas.
 Worldwide Division of Labor and the Development of the Modern World
System
o On the surface, world-system analysis, as eloquently formulated by the American
sociologist Immanuel Wallerstein (b. 1930) in the 1970s, appears deceptively
simple. Wallerstein's world-system analysis is a grand narrative of world historical
development from the sixteenth century to the present, with boundaries,
structures, member groups, rules of legitimation, and coherence. The world-
system is dynamic and constantly evolving, with "conflicting forces which hold it
together by tension, and tear it apart as each group seeks externally to remold it to
its advantage
 Pressure of Incorporation
o To incorporate means to form one of the dominant business structures in the
United States, and this is often because the largest advantage to incorporating is
the limited liability the structure brings to the company's owners.
Incorporation's limited liability encourages investment and in turn makes it easier
to raise equity capital, among other things. However, incorporating a business
means agreeing to more governance and regulation than other business forms, and
this makes them more expensive to operate. One of the biggest complaints about
incorporating is the double taxation of profits it brings: the corporation must
pay income taxes on its taxable income, and shareholders also must pay
income taxes on that same income if the corporation pays that income out as
dividends. Although some corporations are nonprofit entities, perhaps the most
important, prominent and sometimes controversial duty of a corporation is to
enhance shareholder value. This duty is most often executed through the
maximization of profits.
 Race to the Bottom and Upgrading
o The race to the bottom is a socio-economic phrase to describe
government deregulation of the business environment, or reduction in tax rates, in
order to attract or retain economic activity in their jurisdictions. An outcome
of globalization and free trade, it may occur when competition increases between
geographic areas over a particular sector of trade and production.[1] The effect and
intent of these actions is to lower labor rates, cost of business, or other factors
(pensions, environmental protection and other externalities), and thus the metaphor
 St. Paul University Surigao
St. Paul University System
Cor. San Nicolas & Rizal Street
Surigao City

where the bottom is the lowest wage that can be paid. The race to the bottom has been
a tactic widely used among states within the United States of America. The race to the
bottom in environmental policy involves both scaling back policies already in place and
passing new policies that encourage less environmentally friendly behavior. Some
states use this as an economic development strategy, especially in times of financial
hardship. For example, in Wisconsin, Governor Scott Walker decreased state
environmental staff's capacity to accelerate the approval time for a proposed
development. Pursuing a race to the bottom philosophy in environmental politics
allows states to foster economic growth, but has great consequences for the
environment of that state. Conversely, some states have begun to pursue a race to the
top strategy, which stresses innovative environmental policies at the state level, with
the hopes that these policies will later be adopted by other states. When a state pursues
either a race to the bottom or a race to the top strategy, it speaks to its overall
environmental agenda.
 The Myth of Economic Global.

In recent years, there has been a great deal of writing about an increasing
‘mundialization’ or ‘globalization’ of the World economy. Recent progress in
information and communication technology and the interment hype have created the
impression that geographic distance is losing significance for business. Moreover, the
relatively successful industrialization of several low wage Asiatic countries gave rise to
concern that an increasing challenge from international competition might undermine
employment and welfare in Europe. In this context, it has frequently been argued that
Europe is suffering from competitive disadvantages relating to such factors as too high
(and downwardly rigid) wages, too much regulation (‘Euro sclerosis’), a heavy social
security tax burden and a too generous protection of the people by the welfare state,
preventing an adequate working of the labor market. If correct, such arguments would
have obvious and far-reaching implications for economic and social policy in the
European Union. Arguments about economic globalization very often are based on
case studies and anecdotal evidence while little effort seems to have been taken to
examine representative economic statistics. In section II we start with a look at
standard statistical sources, arguing that patterns of foreign trade and of foreign direct
investment of EU countries are not consistent with globalization theory. We conclude
that internationalization takes place as economic integration within the EU bloc.
Furthermore, to the extent that the frontiers of the European Union are exceeded,
theolin’s share of such transactions still takes place among the rich OECD countries.
Moreover, one might question the proposition that we are currently experiencing an
historically unique new stage of internationalization. In our final section, we argue that
there are good theoretical reasons to doubt the globalization hypothesis. In doing so,
we refer to literature about the nature of technological knowledge and about
technological spill-overs. We argue that, at least for knowledge-intensive business, the
forces behind ‘regionalization’ (or even ‘localization’) may be stronger than those
promoting ‘globalization.
 St. Paul University Surigao
St. Paul University System
Cor. San Nicolas & Rizal Street
Surigao City

JAAZIAH KISH D. GALING THE CONTEMPORARY WORLD

BSA 201 MR. NIKKO EDERIO

Activity 2: The Finished Products

(Outcomes 4-5: examine the contribution of the countries involved in the production process;
and demonstrate critical, analytical and creative understanding of the contribution of the
countries involved in the production process.)
Product commonly sold in the Philippines
 Nike shoes
Ingredients/Raw materials in manufacturing the assigned product.
 Polyester
 Rubber
 Eva foam
 Cotton
 Synthetic leather
 Leather
Identify the corresponding country from which each ingredient or raw material came
from and identify the countries involved in the manufacturing of the chosen product
and indicate the corresponding service the country does for the product

COUNTRY THE CORRESPONDING SERVICE THE COUNTRY DOES FOR THE

PRODUCT
CHINA AND INDIA The solid plastic bottles are broken down into pieces and then
melted to a liquid when they are then made into polyester
strands.
THAILAND, INDONESIA, Processing of heating natural rubber mixed with sulfur to create
shoe rubber.
MALAYSIA
CHINA Designing and manufacturing of Eva foam

CHINA, INDIA, TURKEY, Planting organic cotton

AND THE UNITED STATE OF

AMERICA
CHINA AND TAIWAN Surfacing and outlining of retaining the form of synthetic
leather.
CHINA AND VIETNAM Use a leather-stretching spray or conditioning oil to soften the
fabric and stretch them out.
 St. Paul University Surigao
St. Paul University System
Cor. San Nicolas & Rizal Street
Surigao City

List down the countries in which the products made in the Philippines are being sold
and cite the kinds of technology that made the creation of the product possible
PRODUCT MADE IN THE COUNTRIES IN WHICH THE CITE KINDS OF TECHNOLOGY
PHILIPPINES PRODUCT MADE IN THE THAT MADE THE CREATION OF
PHILIPPINES ARE BEING SOLD THE PRODUCT POSSIBLE
HONGKONG, THAILAND, CHINA, BOREAS WORT STRIPPING
SAN MIGUEL BEER VIETNAM, AUSTRALIA, AND SYSTEM
MALAYSIA
CELLAR CONCEPT TWINPRO

COMBICUBE F COMPACT
FILTRATION SYSTEM

ENERGY RECOVERY IN
BREWERIES

FERMENTATION AND STORAGE

TANKS

USA, INDONESIA, PANAMA,
POTATO CORNER MALAYSIA, EGYPT, DUBAI,
OMAN, KUWAIT, LEBANON,
SAUDI, JORDAN, QATAR, SAUDI
ARABIA, ABU DABHI, BAHRAIN
AND SYRIA
HYDRONOMIC WATER
TREATMENT SYSTEM
AUTOMATIC POTATO CHIPS
PRODUCTION LINE
SEMI-AUTOMATIC POTATO
CHIPS PRODUCTION LINE

FRIED FOOD DEOILING MACHINE

CENTRIFUGAL DEWATERING
MACHINE

POTATO WASHNG AND PEELING

MACHINE

FRENCH FRIES MACHINE

TWIST POTATO MACHINE

 St. Paul University Surigao
St. Paul University System
Cor. San Nicolas & Rizal Street
Surigao City

Guide Questions to consider upon accomplishing the task:

1. What are your inferences or insights upon finishing the task? What do you think
does the activity tell us?

My insights in this activity is that by doing this activity it makes me know more
about Nike Shoes. Now, I know that the Raw Material that they used in making
the Nike Shoes is not a simple material. The materials that they used is from
the other country to make their product a good quality product and satisfying
for the customer. This means that we need to know where the materials of the
shoes we are going to buy from came from and what are the process of making
the product for us to know if it is worth to buy or not.
2. How do you think are the different countries contributory to the production
successes of each manufacturing company or nation? Can you explain?

Base on my understanding in this activity the countries that contributed to the

production of making the Nike shoes gives a big impact to the company because
without the help of the other countries to make their product a good quality
product and successful they will never be known by people and their product
will not be liked by the people.
 St. Paul University Surigao
St. Paul University System
Cor. San Nicolas & Rizal Street
Surigao City

JAAZIAH KISH D. GALING THE CONTEMPORARY WORLD

BSA 201 MR. NIKKO EDERIO

Activity 3: A New Economic Map of the World

(Outcome 3: define the modern world systems and articulate a stance on global
economic integration)

Guide Questions to consider upon accomplishing the task:

1. What are your inferences or insights upon finishing the task? What do you think
does the activity tell us?

In finishing this activity we can see that the core is the small circle, the semi-
periphery is the medium circle and the Periphery is the large circle which
means that the country in Periphery are the one that has a lowest economic
 St. Paul University Surigao
St. Paul University System
Cor. San Nicolas & Rizal Street
Surigao City

statues and achievement while the semi-periphery is countries are in the

middle economic statues and achievements and lastly the countries that belong
to the core circle is the countries that has a highest economic statues and
achievement and it dominate among all the circle that is why it is placed in the
center.

2. In the case of the Philippines, how much do you think are we involved in the
modern world-system? Why do you think are the advantages and disadvantages of
being part of such?

The Philippines exports commodities:

o It is a top exporter of Coconuts, bananas, and Nickel
The Philippines is a labour provider to the Middle East and Asia
o It exports laborers, engineers, nurses, caregivers
o It exports local services as call centers and remote back office
workers
Advantages:
o It brings in money and reduces unemployment
Disadvantages:
o It brings abuse to the overseas workers
o Employees in business process outsourcing are in dead end jobs
o There are over 5k Filipinos in jail overseas

3. How can we “upgrade” our economy given the strength of the global economy
especially the giant economies like the US and Japan?

Let us not compare ourselves to the US and Japan. They didn’t get where
they are overnight. And we may never be where they are. Look for ways to
grow middle class. Try to find ways to increase employment and boost jobs.
Middle class is your working class. They’re also our spending class. Invest
in discounts and tax breaks for middle class. These little perks boost morale
and the middle class spends more when they stress less. Listen to poor
people don’t let them struggle in silence. Find ways to try to help them get
out of poverty. When they rise, they too become middle class try energy
efficient and environmental practices. This will stop from having to pay
billions to clean up pollutants in the long run. Make good trade contracts. it
helps to have allies that you can trust.

4. How do we examine globalization in the sphere of consumption?

The entire globe is an integrated technological machine that thrives both

cooperatively and competitively per the fundamental economic laws of
supply and demand. Many countries are integral in the production of a
single product.
 St. Paul University Surigao
St. Paul University System
Cor. San Nicolas & Rizal Street
Surigao City

5. Does the ongoing global economic crisis signal the end of the hyperconsumption
and hyperdebt?

No, Due to the global economic crisis that the whole world is facing today,
simply the consumption or demands are increasing and debts are increasing
as well.
 St. Paul University Surigao
St. Paul University System
Cor. San Nicolas & Rizal Street
Surigao City

JAAZIAH KISH D. GALING THE CONTEMPORARY WORLD

BSA 201 MR. NIKKO EDERIO

Processing Questions:

1. Do you think that the Philippines is being harmed as other countries transfer
their activities to us also known as outsourcing?

No. In fact, the Philippines benefits from it. When a certain company in
other countries involves itself in an outsourcing, normally it brings harm
locally than any other countries outside. And given that the Philippines has
outsourcing companies, this means that the act of companies involving in
outsourcing opens works for the Filipinos. Hence, the Philippines benefits
to it.

2. How do you assess globalization in the sphere of production?

As a student, I can assess globalization in the sphere of production by

making may self be aware on the world situation. And think critical if it is
necessary to adheres and give dimension to illustrate the situation. We are
bound to every production of the globalization and it best to think
something from it if it is for good or not.

3. Does the position of US and China as giants in the economic chain threaten the
status of less developed countries in the global market?

Of course, Less developed countries become suppliers and consumers in the

chain. Unless they have disruptive governments, and then they fall to the
sidelines or disrupt the economic chain. Given good leadership, less
developed nations can easily elevate themselves to the top. But, all too often,
their leaders select a disruptive, bring the top down to our level, approach.
 St. Paul University Surigao
St. Paul University System
Cor. San Nicolas & Rizal Street
Surigao City

JAAZIAH KISH D. GALING THE CONTEMPORARY WORLD

BSA 201 MR. NIKKO EDERIO

Let Us Reflect

 What have I LEARNED this week that has helped me do all aspect of this better?

What I’ve learned that has helped me to do all aspect of this better is I
understand the lesson and learned that there are several countries that has
a good economic statue which is every interesting to know what countries
they are and what countries belong to a poor economic statue. I can really
say that studying Global economy is very important because without
knowledge about global economy we can’t identify or know what we must
do to help our global economy.

 What have I DONE this week that has made me better at doing all aspects of this?

To be better in this aspect I read that modules and comprehend for me to

answer all the activities and, I search on the internet about the topic so
that I can gain more knowledge and understand it easily.

 How can I IMPROVE at doing all aspects of this?

To improve myself in this aspect I must practice my patience in reading

and search more about the given topic in the module so that I can easily
comprehend the said topic and to learn more. I will not just focus on the
modules I must also search read books to be improve in this aspect.
 St. Paul University Surigao
St. Paul University System
Cor. San Nicolas & Rizal Street
Surigao City

JAAZIAH KISH D. GALING THE CONTEMPORARY WORLD

BSA 201 MR. NIKKO EDERIO

• What is global economy?

The global economy refers to the interconnected worldwide economic

activities that take place between multiple countries. These economic
activities can have either a positive or negative impact on the countries
involved. The global economy has become hotly controversial. Critics allege
that its props, free markets and free trade, take jobs away from well-paid
workers in the wealthy nations while creating sweatshops in the poor ones. Its
supporters insist that the free movement of capital stimulates investment in
poor nations and creates jobs in them. The process is also called globalization.

• How does the development of world trading system changes over a period of several
centuries.

The integration of national economies into a global economic system has

been one of the most important developments of the last century. This
process of integration, often called Globalization, has materialized in a
remarkable growth in trade between countries. Globalization a process of
integration has materialized in a remarkable growth in trade between
countries. The development in trading are having a huge impact in every
economy in the world. Thus, every year it.

• Does outsourcing in the Philippines contribute on its economic development?

Yes, outsourcing is also one of the most helpful industries that contributes
to its growth. Because of outsourcing most Filipino's can enjoy working in
the Philippines in their chosen career with a higher compensation rate. And
in fact, BPO is one of the top drivers of economic growth in the country.