Economic globalization A glimpse of history
It is a historical process representing
economy
as defined
encompasses all of the activities related to the
production, consumption, and trade of goods and
services in an entity, whether the entity is a nation
or a small town.
the process or system by which goods and
services are produced, sold, and bought in a
country or region.
the result of human innovation and
technological progress
international cooperation
The IMF international
monetary
An international organization headquartered in
Washington, D.C, consisting of 189 countries
working to foster global monetary cooperation,
fund
secure financial stability, facilitate international
trade, promote high employment and sustainable
economic growth, and reduce poverty worldwide
while periodically depending on the World Bank
for its resources.
 international cooperation

The ITS international

trading
The Silk Road was a network of ancient trade
routes, formally established during the Han
Dynasty of China in 130 BCE, which linked the
system
regions of the ancient world in commerce
between 130 BCE-1453 CE. The Silk Road was not
a single route from east to west and so historians
favor the name 'Silk Routes', though 'Silk Road' is
commonly used.

The SILK ROAD international TRADING SYSTEM

The
The SILK ROAD international TRADING SYSTEM

The
From West to East, these goods included:
From East to West, the goods included:

Horses
Silk Silk
Silk
Saddles and Riding Tack
The grapevine and grapes Road Tea
Dyes
Road
Dogs and other animals, both exotic and
Precious Stones
domestic
China (plates, bowls, cups, vases)
Animal furs and skins
Porcelain
Honey
Spices (such as cinnamon and ginger)
Fruits
Bronze and gold artifacts
Glassware
Medicine
Woolen blankets, rugs, carpets
Perfumes
Textiles (such as curtains)
Ivory
Gold and Silver
Rice
Camels
Paper
Slaves
Gunpowder
Weapons and armor
 galleon trade
When the Spaniards came to the Philippines, our ancestors
traded A Spanish Galleon with China, Japan, Siam, India,
Cambodia, Borneo, and the Moluccas. The Spanish
government continued trade relations with these
countries, and Manila became the center of commerce in
the East.
The Spaniards closed the ports of Manila to all countries
except Mexico. Thus, the Manila-Acapulco Trade, better
known as the "Galleon Trade," was born. The Galleon
Trade was a government monopoly. Only two galleons
were used: One sailed from Acapulco to Manila with some
500,000 pesos worth of goods, spending 120 days at sea;
the other sailed from Manila to Acapulco with some
250,000 pesos worth of goods, spending 90 days at sea.
basco's reform
Filipino farmers and traders finally tasted prosperity when
Governor-General Jose Basco y Vargas instituted reforms to
free the economy from its dependence on Chinese and
Mexican trade. Basco implemented a “general economic
plan” to make the Philippines self-sufficient. He established
the “Economic Society of Friends of the Country,” which
incentivized farmers to plant cotton, spices, and sugarcane;
encouraged miners to extract gold, silver, tin, and copper; and
rewarded investors for scientific discoveries they made.
international TRADING SYSTEM
The
international TRADING SYSTEM
The
GALLEON galleon trade GALLEON
TRADE It also allowed modern, liberal ideas to TRADE
enter the country, eventually inspiring
the movement for independence from
Spain. And because the Spaniards were
so engrossed in making profits from the
Galleon Trade, they hardly had any time
to exploit our natural resources further.
international TRADING SYSTEM
economic reforms
tobacco international TRADING SYSTEM
The tobacco monopoly
in the monopoly in the philippines
The tobacco industry was placed under government control
philippines during the administration of Governor General Basco. In 1781,
a tobacco monopoly was implemented in the Cagayan Valley,
llocos Norte, Ilocos Sur, La Union, Isabela, Abra, Nueva Ecija,
and Marinduque. Each of these provinces planted nothing but
tobacco and sold their harvest only to the government at a
pre- designated price, leaving little for the farmers. No other
province was allowed to plant tobacco. The government
exported the tobacco to other countries and also part of it to
the cigarette factories in Manila.
The tobacco monopoly successfully raised revenues for the
colonial zovernment and made Philippine tobacco famous all
over Asia. Continue to Secularization of Priests During the
Governor General Jose Basco y Vargas Spanish Period.

BRETTON WOODS AGREEMENT
It was created in a 1944 conference of all
World War II Allied nations. It took place in
Bretton Woods, New Hampshire. Under the
agreement, countries promised that their
central banks would maintain fixed
exchange rates between their currencies
and the dollar.
BRETTON WOODS INSTITUTIONS
The creation of the World Bank and the IMF came at the end
of the Second World War. They were based on the ideas of a
trio of key experts - US Treasury Secretary Henry Morganthau,
his chief economic advisor Harry Dexter White, and British
economist John Maynard Keynes. They wanted to establish a
postwar economic order based on notions of consensual
decision-making and cooperation in the realm of trade and
economic relations. It was felt by leaders of the Allied
countries, particularly the US and Britain, that a multilateral
framework was needed to overcome the destabilising effects
of the previous global economic depression and trade battles.
international TRADING SYSTEM international TRADING SYSTEM
BRETTON BRETTON WOODS INSTITUTIONS BRETTON
The Bretton Woods Institutions are the World Bank and the
woods International Monetary Fund (IMF). They were set up at a
meeting of 43 countries in Bretton Woods, New Hampshire,
woods
USA, in July 1944. They aimed to help rebuild the shattered
AGREEMENT postwar economy and promote international cooperation. INSTITUTIONS
The original Bretton Woods agreement also included plans for
an International Trade Organisation (ITO), but these lay
dormant until the World Trade Organisation (WTO) was
created in the early 1990s.
international TRADING SYSTEM international TRADING SYSTEM
BRETTON neoliberalism and neoliberalism
its discontents
woods Neoliberalism would eliminate the regulatory functions of the state and
promote the denationalization and privatization of its goods and
and its
INSTITUTIONS services. Instead of the state, it favors using the market to determine
distribution and stimulation. The market's invisible hand is to take care
discontents
of the movement of resources, productivity growth, the renovation of
technology, and the reinforcement of comparative advantages.
However, once the state is reduced and weakened, the national
economy's capacity to withstand external economic pressures is
diminished because only the state can have sufficient control over
resources and regulatory mechanisms to soften the blow. To attenuate
the negative social consequences of the model, neoliberals have
designed specific instruments and escape valves, such as the
negotiation of conflict (firm or flexible, according to the case), the
growth of the informal economy, and programs of social assistance,
which are more propagandistic than adequate.

the global
financial crisis
Housing prices increased during 2000-2005,
followed by a levelling off and price decline.
Increase in the default and foreclosure rates
beginning in / the second half of 2006 due to the
Fed's manipulation of interest rates during 2002-
2006
The collapse of central investment banks in 2008.
The Collapse of stock prices in 2008.
international TRADING SYSTEM
global financial crisis
and the
challenge to neoliberalism
international TRADING SYSTEM
economic
ECONOMIC GLOBALIZATION globalization
Economic globalization refers to the increasing
interdependence of world economies due to the today
growing scale of cross-border trade of commodities
and services, the flow of international capital, and
wide and rapid spread of technologies. It reflects the
continuing expansion and mutual integration of
market frontiers and is an irreversible trend for the
economic development of the whole world at the
turn of the millennium.

international TRADING SYSTEM international TRADING SYSTEM

ECONOMIC GLOBALIZATION
The rapid growing significance of information in all
types of productive activities and marketization are
the two major driving forces for economic
globalization. In other words. the fast globalization of
the world's economies in recent years is largely based
on the rapid development of science and
technologies, has resulted from the environment in
which market economic system has been fast
spreading throughout the world, and has developed
on the basis of increasing cross-border division of
labor that has been penetrating down to the level of
production chains within enterprises of different
countries.
attributes of the
economic GLOBAL system economic
globalization National attributes in the systemic international globalization
nature followed its effects broadly explaining the
today different foreign policies.
today
Regardless of the objective to posit how a change in
these in FP direction but rather than to show how the
particular value of these variables leads to a
probability distribution over a certain type of FP
choices, national attributes, and foreign policy
typically relative while considering the power of the
state, which is including elements: natural resources,
size. geography, demography, etc.
 international TRADING SYSTEM international TRADING SYSTEM
5 reliiable factors
Increase capabilities, but negotiate rather than fight
economic internationalism
Fight rather than fail to increase capabilities
Stop fighting rather than eliminate an essential actor
globalization internationalism
Oppose any coalition or single actor that tends to
assume a position of predominance within the system
today Internationalism is a political principle that advocates
Constrain actors who subscribe to supranational greater political or economic cooperation among states
organizational principles and nations. It is associated with other political
movements and ideologies but can also reflect a doctrine,
Permit defeated essential actors to reenter the system as belief system, or movement in itself.
acceptable role partners, or act to bring previously
inessential actors within an essential actor classification,
treat all essential actors as acceptable role partners.

international TRADING SYSTEM international TRADING SYSTEM

free trade free trade

What do you know about What do you know about

free trade international

trade
 international TRADING SYSTEM international TRADING SYSTEM

free trade cosmopolitanism

What do you know about cosmopolitanism
the view that all human ethnic groups
belong to a single community based on a

import shared morality as opposed to

communitarianism, patriotism and

vs nationalism

export

international TRADING SYSTEM international TRADING SYSTEM

2 streams of cosmopolitanism 2 streams of cosmopolitanism
cosmopolitanism cosmopolitanism

Ethical cosmopolitanism advocates Political (or institutional) cosmopolitanism

global social justice but needs to has much to say about the structures and
forms of political life necessary for creating
have more to say about the more democratic governance, from the local
political or institutional structures to the global levels. Still, it tends to be less
necessary for its realization. explicit about the value or purpose of
democracy.
 The oppression of the poor must
establish the monopoly of the rich."
Profit or income in-equality are, "always
highest in the countries which are going
fastest to ruin".
-Adam Smith

In other words, greed causes poverty and

economic instability