Lesson 2 – Market Globalism

Learning Objective:

1. To understand the different types of economics system.

2. To analyze the advantage and disadvantage of each economic system.

Learning Outcome:

At the end of this module, the student should be able to:

1. identify the three forms of economic system;
2 identify the economic system of countries under Asia, Europe, Russia and United States
of America; and
3. enumerate the six core claims of globalization.

Teacher: The class will start with an Opening Prayer, and will be followed with a Poll Question.
For their attendance sheet.

Overview:
This lesson will help the students look at the fundamental problem in the management of
economic resources and how resources will be best used to achieve different economic goals. The
type of economic system used will help the students understand the reason why we remain
competitive and are able to reach more market for good and services.

Economic system is a set of economic institutions that dominates a given economy.

Institution is a set of rules of conduct, established way of thinking or ways of doing things

Types of Economic System

 Capitalism - it is an economic system where the private individuals own the resources.
click https://bit.ly/2BxDIlP

 Socialism - it is an economic system where there is a shared ownership of resources

and central planning offer a more equitable distribution of goods and services. click
https://stanford.io/3fNRXSg

 Mixed Economic System - it is a combination of free market and some form of

government intervention.
 For this topic the students will be tasked to enumerate the characteristics of the types of
economic system, which they need to write on their own notes. References are given above
so readings can be done. This is good for 20 minutes.

The Philippine Economic System

The Philippines is an example of a mixture of free market system and some form of
government regulation and control. Many individuals enjoy the right to private property. It’s
economy operates on a system of voluntary exchange and cooperation among private individuals
and organizations. It places a high value on individual freedom and allows self-interest to be the
motivating force. Potential market players will be able to determine how resources can be
allocated given the rights that they can enjoy in the Philippine economy.

The World Bank made groupings for all countries and categorized as follows

Four Category System

• Low-Income Countries
• Low- Middle Income Countries
• Upper-Middle Income Countries
• 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 on Terror
Click https://bit.ly/32W8sZh

Readings: Page 11-23, Market Globalism, The Contemporary World by Abelos, Tajolosa,
Riego De Dios by Mutya Publishing

Measurement:
1. A group activity to discuss the six core claims of globalization.
2. Online recitation will be given online whenever possible to gauge the students
Affective and cognitive abilities.
 Lesson 3 – Governments And Citizens In A Globally Interconnected World of States

Learning Objective:
1. To define state, territory and sovereignty.
2. To articulate the students in realizing how the political, legal and regulatory
environment affect the behavior of the nation.

Learning outcome:

At the end of this topic the student will be able to:

1. distinguish nation from state;
2. identify the elements of the state;
3. explain the political, legal and regulatory environment of global states;
4. explain the impact of political risks on governments; and
5. explain the principles and concepts of bribery and corruption

Teacher: The class will start with an Opening Prayer, and will be followed with a Poll Question.
For their attendance sheet.

Definition of Terms:

Nation - is defined as people or aggregation of men, existing in the form of an organized society.

State - is a community of persons, more or less numerous, occupying a definite territory, possessing
an organized government, and enjoying independence from external control. It is dwelled by people
permanently occupying a fixed territory and bound by common law-habits and customs into one
body politics, exercising through the medium of an organized government, independent sovereignty
and control over all persons and thigs within its boundaries, capable of making war and peace and
entering into international relations with other communities of the globe. (Ref: The CW by Abelos,
Tajolosa and etc. 2018)
Territory - It is 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.
Government - it is the totality of authorities which rule a society.

What are the three (3) elements of State?

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

Learning Objective:

1. To define economic globalization, global corporation and Business Triad

2. To know what are the competitive strategies of global corporation.
3. To understand the different Preferential Trade Agreements Between Developing Countries

Learning Outcome:
At the end of this module the student should be able to:
1. identify the competitive strategies of global corporations;
2. explain the relevance of changing regulatory environment to the structure and
operation of global corporations
3. To be to identify the major concerns of global managers in operating a global corporation

Overview.
In this lesson we can have a picture of globalization as a business initiative based on the
belief that the world is becoming more homogenous while the distinctions between national markets
are not only fading. Some products eventually dissappear because of severe competition.
Consequently, companies need to globalize their international strategy by formulating it across
markets to take advantage of underlying market, cost, environmental and, competitive factors.
We need to understand that Economic globalization is a historical process, a result of human
innovation and technological progress. Unless a firm has made its decision to complete in the global
environment, it will subject itself to the pressures single-country firms normally operate in a relatively
homogenous market for their products and services. Consequently, product design can be fairly
standardized for each firm to achieve economies of scale and deliver a product that appeal to its
entire market.

Teacher: The class will start with an Opening Prayer, and will be followed with a Poll Question.
For their attendance sheet.

What is a Global Corporation

A global company is generally referred to as a multinational corporation (MNC). An MNC is a

company that operates in two or more countries, leveraging the global environment to approach
varying markets in attaining revenue generation. These international operations are pursued as a
result of the strategic potential provided by technological developments, making new markets a
more convenient and profitable pursuit both in sourcing production and pursuing growth.

International operations are therefore a direct result of either achieving higher levels of
revenue or a lower cost structure within the operations or value-chain. MNC operations often attain
economies of scale, through mass producing in external markets at substantially cheaper costs, or
economies of scope, through horizontal expansion into new geographic markets. If successful, these
both result in positive effects on the income statement (either larger revenues or stronger margins),
but contain the innate risk in developing these new opportunities.

“As gross domestic product (GDP) growth migrates from mature economies, such as the US and
EU member states, to developing economies, such as China and India, it becomes highly relevant to
capture growth in higher growth markets. is a particularly strong visual representation of the
advantages a global corporation stands to capture, where the darker green areas represent where
the highest GDP growth potential resides. High growth in the external environment is a strong
opportunity for most incumbents in the market.”

Challenges

However, despite the general opportunities a global market provides, there are significant
challenges MNCs face in penetrating these markets. These challenges can loosely be defined
through four factors:

1. Public Relations: Public image and branding are critical components of most businesses.
Building this public relations potential in a new geographic region is an enormous challenge,
both in effectively localizing the message and in the capital expenditures necessary to create
momentum.

2. Ethics: Arguably the most substantial of the challenges faced by MNCs, ethics have
historically played a dramatic role in the success or failure of global players. For example,
Nike had its brand image hugely damaged through utilizing ‘sweat shops’ and low wage
workers in developing countries. Maintaining the highest ethical standards while operating in
developing countries is an important consideration for all MNCs.

3. Organizational Structure: Another significant hurdle is the ability to efficiently and effectively
incorporate new regions within the value chain and corporate structure. International
expansion requires enormous capital investments in many cases, along with the
development of a specific strategic business unit (SBU) in order to manage these accounts
and operations. Finding a way to capture value despite this fixed organizational investment is
an important initiative for global corporations.

4. Leadership: The final factor worth noting is attaining effective leaders with the appropriate
knowledge base to approach a given geographic market. There are differences in strategies
and approaches in every geographic location worldwide, and attracting talented managers
with high intercultural competence is a critical step in developing an efficient global strategy.
Combining these four challenges for global corporations with the inherent opportunities presented by
a global economy, companies are encouraged to chase the opportunities while carefully controlling
the risks to capture the optimal amount of value. Through effectively maintaining ethics and a strong
public image, companies should create strategic business units with strong international leadership
in order to capture value in a constantly expanding global market.
Ref: https://bit.ly/331bc7F

How is Triad Formed?

We have to understand that the United States, Japan and Western Europe account for
almost half of the world’s total consumption. All of them share in certain economic and demographic
conditions such as high GNP values. Therefore, we can say that a firm cannot truly compete on a
global scale if it is not present in this “triad.”
Competitive Strategies of Global Corporation
1. Cost Leadership
2. Differentiation
3. Focus
Globalization Drivers
1. Market Factors
2. Cost Factors
3. Environmental Factors
4. Competitive Factors

Global Corporation
A contemporary global corporation is also known as
1. Multi-national Corporation (MNC)
2. Transnational Corporation
3. International Company
4. Global Company

Readings:
A Research Report on entitled “How are Citizen’s Affected by Corruption?”, page 16-25, Jestor
Library ( https://bit.ly/39xb3tY)

Measurement:
1. A 20 point quiz thru google forms?
 Module 5– The United Nations and
Contemporary Global Governance

Learning Objective:
1. To understand how the Bretton Wood system was formed
2. To discuss the role and function of United Nations in the World
3. To know what are the competitive strategies of global corporation.

Learning Outcome:
At the end of the topic, the student will be able to:
1. differentiate the two institutions created by the Bretton Woods system;
2. identify which countries benefited most from the Unites Nations; and
3. define Global governance.

Instructions: The faculty will check the status of connection at thirty (30) minutes before the start of
classes, followed by an opening prayer. Engagement will be done using a Poll question thru google
form. For example “1. Describe President Rodrigo Roa Duterte in one word which will be
answered in 5 minutes.”

The Bretton Woods System

The Bretton Woods system was created by world leaders after the First and Second World War
which left ruined and devastated economies. They believed that one way to ensure a longer-lasting
global peace is to set up a network of global financial institutions that would promote economic
interdependence and prosperity. In 1944. The Bretton Woods System was inaugurated during the
United Nations Monetary and Financial Conference to prevent the catastrophes of the early decades
of the century from reoccurring and affecting international ties.

The Bretton Woods system was largely influenced by the ideas of the British economist John
Maynard Keynes (founder of Macroeconomics) who believed that economic crisis occur when
money is not being spent and thereby, not moving. He emphasized that the government has to
reinvigorate markets with infusions of capital. This active role of governments is managing
spending served as the anchor for what would be called a system of “Global Keynesianism”. For
this reason, the delegates agreed to create two financial institutions namely- The International
Bank for Reconstruction and Development (IBRD or the World Bank) and International Monetary
Fund (IMF). To this day, both institutions remain key players in economic globalization. (page 16,
The Contemporary World by Claudio & Abinales, 2018; Ref: You Tube Video https://youtu.be/-
6bVeDab6UA).

Questions to Answer:
1. What are the two financial institutions created under the Bretton Woods System?
2. How did the two institutions reinvigorated the economically devastated and
poor countries? ( Click video: https://bit.ly/30MlMwF)
3. Who is John Maynard Keynes? Kindly explain Global Keynesianism?

The United Nations

The United Nations is an international organization founded in 1945.  It is currently made up of

193 Member States.  The mission and work of the United Nations are guided by the purposes and
principles contained in its founding Charter. Due to the powers vested in its Charter and its unique
international character, the United Nations can take action on the issues confronting humanity in the
21st century, such as peace and security, climate change, sustainable development, human rights,
disarmament, terrorism, humanitarian and health emergencies, gender equality, governance, food
production, and more.

The UN also provides a forum for its members to express

their views in the General Assembly, the Security Council,
the Economic and Social Council, and other bodies and
committees. By enabling dialogue between its members,
and by hosting negotiations, the Organization has become
a mechanism for governments to find areas of agreement
and solve problems together. The UN's Chief
Administrative Officer is the Secretary-General.
2020 marks the 75th anniversary of the United Nations.
(Ref: https://bit.ly/30MlMwF)

The UN is divided into five active organs. They are

1. The General Assembly (GA) it is UN’s main deliberative policymaking and representative organ.
Decisions on important questions such as those on peace and security, admission of new
member, and budgetary matters, require a two-thirds majority of the General Assembly.
Decisions on other questions are done by simple majority. Annually. The General Assembly
elects a GA President to serve a one year term of office. Currently all member states (currently
at 193) have seats in GA. The Philippines played a prominent role in the GA’s early years when
Filipino diplomat Carlos P. Romulo was elected GA president from 1949-1950. (Ref: page
42, The Contemporary World by Claudio and Abinales, 2018)

2. The Security Council (SC) – under the UN Charter, it’s primary responsibility is the maintenance
of international peace and security. It has 15 Members (5 permanent and 10 non-permanent
members) with one voting right. Under this Charter, All Member States are obligated to comply
with Council decisions. The Security Council takes the lead in determining the existence of a
threat to the peace or act of aggression. It calls upon the parties to a dispute to settle it by
peaceful means and recommends methods of adjustment or term of settlement. In some cases,
the Security Council can resort to imposing sanctions or even authorize the use of force to
maintain or restore international peace and security. (ref: https://www.un.org/securitycouncil)

3. The Trusteesship Council – it was established in 1945 by the UN Charter, under Chapter XIII, to
provide international supervision for 11 Trust Territories that had been placed under the
administration of Seven Member States, and ensure that adequate steps were taken to
prepare the Territories for self-government and independence.

4. The Economic and Social Council (ECOSOC) – it  is the principal body for coordination, policy
review, policy dialogue and recommendations on economic, social and environmental issues, as
well as implementation of internationally agreed development goals. It serves as the central
mechanism for activities of the UN system and its specialized agencies in the economic, social
and environmental fields, supervising subsidiary and expert bodies.  It has 54 Members, elected
by the General Assembly for overlapping three-year terms. It is the United Nations’ central
platform for reflection, debate, and innovative thinking on sustainable development.
5. The International Court of Justice - is the principal judicial organ of the United Nations. Its seat is
at the Peace Palace in the Hague (Netherlands). It is the only one of the six principal organs of
the United Nations not located in New York (United States of America). The Court’s role is to
settle, in accordance with international law, legal disputes submitted to it by States and to give
advisory opinions on legal questions referred to it by authorized United Nations organs and
specialized agencies.

6. The UN Secretariat - The Secretariat comprises the Secretary-General and tens of thousands of

international UN staff members who carry out the day-to-day work of the UN as mandated by the
General Assembly and the Organization's other principal organs.  The Secretary-General is chief
administrative officer of the Organization, appointed by the General Assembly on the
recommendation of the Security Council for a five-year, renewable term. UN staff members are
recruited internationally and locally, and work in duty stations and on peacekeeping missions all
around the world.  But serving the cause of peace in a violent world is a dangerous occupation. Since
the founding of the United Nations, hundreds of brave men and women have given their lives in its
service.
(Ref: https://bit.ly/30MlMwF)

What is Global Governance

Global governance brings together diverse actors to coordinate collective action at the level of
the planet. The goal of global governance, roughly defined, is to provide global public goods,
particularly peace and security, justice and mediation systems for conflict, functioning markets and
unified standards for trade and industry. One crucial global public good is catastrophic risk
management – putting appropriate mechanisms in place to maximally reduce the likelihood and
impact of any event that could cause the death of 1 billion people across the planet, or damage of
equivalent magnitude. See here for a list of global catastrophic risks.
The leading institution in charge of global governance today is the United Nations.
Pls click https://bit.ly/3jGoVqh

Measurement:

1. At the end of this lesson a ten (10) point quiz will be given to my student before the
class end.

References:

https://bit.ly/30MlMwF
https://bit.ly/30MlMwF)
https://bit.ly/3jGoVqh