Download as pdf or txt
Download as pdf or txt
You are on page 1of 7

Learning Centered and Outcome Based

Activity #7
“The Structure of Globalization”

Direction (s): Write a 150 word essay in the form of a position paper on the issue of “ Global
Interstate System”

Global Interstate System And It's Pros and Cons

The global interstate system is a worldwide network of roadways that connect


countries. It was designed to make it easier to transfer products and people within countries,
but it has since been used for a variety of other reasons. The interstate system is an efficient
method of transporting goods from one country to another. It's also great for business
travelers that need to travel around the country. However, there are certain drawbacks to this
system.
One of the system's most significant advantages is that it allows businesses to transfer
their goods rapidly and effectively. If a corporation has a large number of products to ship, the
system can help ensure that they arrive on time. Furthermore, if there are delays or problems
with shipments, corporations can easily discover different routes to ensure that their goods
arrive on time. This is especially true if a country has many routes that pass through distinct
regions.
However, certain drawbacks as well. Companies may find it difficult to move goods
from one city to another without using numerous routes because this system connects all
important cities in each country.
If you wanted to ship something from New York City to Los Angeles by train or boat,
for example, you'd have no alternative but to travel across America by train.

Learning Centered and Outcome Based

This study source was downloaded by 100000855149425 from CourseHero.com on 03-22-2023 09:40:51 GMT -05:00

https://www.coursehero.com/file/142448673/CONTEMPORARY-ACTIVITY-8910docx/
Activity #8
“The Structure of Globalization”
Name: Sarmiento, Alliah Mae C.
Year/Section: 1st Year 1Y-AM-G O4
Degree Program: Bachelor of Secondary Education

1. Write an assessment on the present state of global economy.

The global economy is predicted to be weaker in 2022 than originally


anticipated. Countries have redisposed mobility restrictions as the new Omicron
COVID-19 strain spreads. In the United States, as well as many other emerging market
and developing economies, rising energy prices and supply interruptions have resulted
in higher and more broad-based inflation than expected. In 2022, the global economy
is predicted to increase at a rate of 4.4 percent. Although it will most certainly be
lower than 2021's higher growth rate of 5.8%, which is partly due to the fact that
despite the sharp drop in growth in 2020, the recovery will still outpace yearly average
growth rates prior to the Covid pandemic, according to our main scenario. Trends in
Covid-19 continue to be the most significant risk factor for the global economy;
however, we believe that the virus will be suppressed as a result of good virus control.
Increase the virus's learning curve Vaccine penetration will prevent stress on medical
systems with constraints even if the infection continues to spread.Activities in the
economic and social spheres are not being sustained. In 2022, two primary causes will
exert negative pressure on the global economy: a slowdown in China's GDP and rising
inflation.
Due to the zero Covid policy, power shortages, and housing market issues,
China's economic growth rate is predicted to drop to 5% in 2022 (2021: 8%).
On the downside, if the authorities continue to be cautious in enacting steps to
counteract the economy's downward forces. The economic constraints on countries
that are heavily reliant on China's economy, as well as countries that provide natural
resources, are increasing. Pent-up demand arose in response to the dramatic drop in
demand after the first Covid-19 outbreak, resulting in a high inflation rate. Inflation is
expected to peak in the first half of 2022. By the second half of 2022, the problems of
high resource prices, supply restrictions owing to supply chain flaws, and labor
shortages due to supply/demand mismatches should be overcome, with inflationary
pressures predicted to ease.
Nonetheless, inflation in Europe and the United States is projected to exceed
the financial authorities' target inflation rate of 2% for some time. Excess savings in

This study source was downloaded by 100000855149425 from CourseHero.com on 03-22-2023 09:40:51 GMT -05:00

https://www.coursehero.com/file/142448673/CONTEMPORARY-ACTIVITY-8910docx/
industrialized countries, which amassed as a result of stimulus measures in response
to the Covid epidemic, will operate as a consumption buffer, while demand-side
inflationary pressures will stay stable.

2. Describe the outlook of the global economy in 2018


The global economy began 2018 on a positive note, supported by an increase in global
production and trade in 2017. The rise slowed as investors' confidence in the global economic
outlook waned

The imposition of tariffs by major economies, particularly the United States, and retaliatory
measures by others, like China, are one explanation for this loss of momentum. Increased
trade policy uncertainty has weighed on future investment decisions as a result of the more
protectionist discourse.

This study source was downloaded by 100000855149425 from CourseHero.com on 03-22-2023 09:40:51 GMT -05:00

https://www.coursehero.com/file/142448673/CONTEMPORARY-ACTIVITY-8910docx/
Despite these actions, the US economy grew rapidly in 2018, thanks to tax cuts and
expenditure increases that boosted demand. As a result, the US Federal Reserve has kept
raising the policy interest rate. Investors see threats to future growth and appreciate the
safety of US Treasury securities, therefore interest rates on long-term bonds have risen less.

The US dollar has strengthened against most other currencies in 2018 as GDP and interest
rates in the US have exceeded those in other major economies.

As the value of the US dollar increased and the level of risk that global financial investors
were willing to accept decreased, several fragile emerging market economies were put under

This study source was downloaded by 100000855149425 from CourseHero.com on 03-22-2023 09:40:51 GMT -05:00

https://www.coursehero.com/file/142448673/CONTEMPORARY-ACTIVITY-8910docx/
pressure. The majority of these countries saw rises in their external borrowing costs, but the
magnitude of these increases varied greatly.

Learning Centered and Outcome Based


Activity #9
“The Structure of Globalization”
(1) Discuss your concept of “ Market Integration”
When we talk about market integration, we're talking about the merging of
diverse companies around the world or inside a certain industry to form a single
market.
This fusion or merger creates a larger market with similar prices and commodities that
can be easily moved from one location to another. Investors can readily trade financial
assets with one another in a fully integrated market, allowing them to maximize their
profits given the investment alternatives accessible to them.
In other words, Market integration is a metric that assesses how well markets
in different regions interact. It refers to the extent to which pricing for identical assets
or items are shared across markets.
For example, if you buy an ounce of gold in London and sell it in New York, you would
expect to receive the same price whether you sold it today or in six months' time.

(2) Differentiate and discuss briefly the types of market integration:


2.1 Horizontal Integration- is when you buy your upstream and downstream competitors to
reduce competition and increase pricing power. A company may do this via internal expansion,
acquisition or merger. If a corporation captures the vast majority of the market for a product
or service, the process might lead to monopoly.
For example, an oil refining company may purchase additional refineries in order to reduce its
costs and increase profits.
2.2 Ownership Integration- involves owning all the pieces of a system from start to finish. It
occurs when one company owns and oversees another company. The owning firm is often not
involved in the day-to-day management of the other firms, although it does have some
influence over their decisions. An example would be a parent corporation that owns two
subsidiaries that are generally unrelated but may be related in some way (i.e., same owner,
general area of business).

This study source was downloaded by 100000855149425 from CourseHero.com on 03-22-2023 09:40:51 GMT -05:00

https://www.coursehero.com/file/142448673/CONTEMPORARY-ACTIVITY-8910docx/
2.3 Contact Integration- is when a company integrates by buying a company involved with
production inputs, distribution inputs, and customer contacts. In other words, Contact
integration is when you sell directly to your customers instead of through another company.

Learning Centered and Outcome Based


Activity #10
“The Structure of Globalization”

Direction (s): Write a 200 essay on the topic “ Global Interstate System: A Critical Analysis”
The Relevance of the Global Interstate System in the People’s Lives

The global interstate system is what we call a "positive-sum" game. The system
has existed for a long time and, on the general, it has benefited everyone: it has
produced a global economy that has lifted billions of people out of poverty. Indeed, it
has done so much to alleviate poverty that many people are resentful of the poverty
that still exists. However, as the interstate system enters its seventh decade, many of
us are beginning to question if its growing complexity may jeopardize its positive-sum
character in the coming years.
The interstate system was conceived and constructed during a period in which
the world's nations were generally getting along well with one another; and while it
has often been tested during periods of time, overall it has provided an unusually
stable environment in which global trade can flourish and grow. In recent years,
though, there have been troubling signs that this system may be becoming too
complex to sustain itself. Perhaps most notable among these is the rise of "systemic
risk," which occurs when risk associated with individual parts of the system begins to
accumulate within the system as a whole.
People have reaped numerous benefits from the global interstate system. It
allows customers to purchase things from all over the world. It allows businesses to
effortlessly transport items from one state to another. It assists policymakers in
developing plans with broad implications. In truth, the interstate system has altered
people's lives and livelihoods in ways that are difficult to conceive today.
The global interstate system has changed the way people live and work tremendously.
It enables them to move things from one location to another with ease. For example,
you can buy an item online, and then bring it back home with you. Or if you need a
service, like a mechanic or a doctor, you can find someone who will do it for you at
your local airport. Everyone's travel is made much easier as a result of this. People can
also acquire knowledge about different places around the world because to the global

This study source was downloaded by 100000855149425 from CourseHero.com on 03-22-2023 09:40:51 GMT -05:00

https://www.coursehero.com/file/142448673/CONTEMPORARY-ACTIVITY-8910docx/
interstate system. You can learn about various cultures and traditions by visiting
websites such as Wikipedia and YouTube; you can also keep up with current events by
reading newspapers or listening to radio stations around the country. The global
interstate system aids politicians in making decisions that have an impact on everyone
within their borders.

This study source was downloaded by 100000855149425 from CourseHero.com on 03-22-2023 09:40:51 GMT -05:00

https://www.coursehero.com/file/142448673/CONTEMPORARY-ACTIVITY-8910docx/
Powered by TCPDF (www.tcpdf.org)

You might also like