GECC 5

LESSON 3 & 4
Presented by:

Aljo, Samantha Irish S.

Arceo, Javelle
Bautista, Deanna Allyssa B.
Cabales, Janine A.
 ESENTATION OUTLIN
PR E
LESSON 3 LESSON 4

ACTIVITY
 LESSON 3:
THE GLOBAL
ECONOMY
 INTRODUCTION
"Economic globalization involves the integration of functions and
processes of economic activities (Dicken, 2004)."

Who are the actors that drive economic globalization?

What is the modern world system?
 ECONOMIC ACTORS THAT
GLOBALIZATION FACILITATE
ECONOMIC
GLOBALIZATION
 ECONOMIC GLOBALIZATION
Economic globalization is driven by the “growing scale of
cross-border trade of commodities and services” (Shanghai,
2000:1)
It focuses on increasing economic trade interrelations
among countries.
It entails global industrial restructuring and readjustments
where developed countries play a dominant role.

Economic integration means that separate production

operations are functionally related to each other and form a
unified product or service.
WHO ARE THE ACTORS THAT FACILITATE
ECONOMIC GLOBALIZATION?

Globalization has opened the doors for other

non-state authority and actors in driving
economic globalization (Madsen &
Christenses, 2016; Sassen, 2006).

Non-state actors include:

International economic organizations
Private sector led by multinational
companies
Central banks
Civil society
 NON-STATE AUTHORITY
AND ACTORS
1. INTERNATIONAL ECONOMIC ORGANIZATION
These organizations are critical in developing and pushing for neoliberal
policies among different countries.
They also help facilitate trade and developmental discussions among various
states.

2. MULTINATIONAL COMPANIES (MNCS)

These are considered to be the main carriers of economic globalization
(Shangqyan, 2000:2).
MNCs started to merge during World War II when US industrial production
increased by 44 percent (Strange, 1996).
 NON-STATE AUTHORITY
AND ACTORS
3. CENTRAL BANKS
They are considered one of the most powerful institutions in the world
economy since they can lead economic development.

4. GLOBAL CIVIL SOCIETY

Is the major driver of economic globalization.
It has made its mark in the global development arena particularly during the UN
Conference on Environment and Development in 1992 (Keane, 2003).
It is seen as either composed of individuals or groups of individuals disadvantaged
by the effects of the globalization of the world economy.
INSTITUTIONS RELATED TO
GLOBAL ECONOMY
1. INTERNATIONAL MONETARY FUND (IMF)
Is an international organization of 183 member
countries to promote international monetary
cooperation and exchange stability.
2. INTERNATIONAL FINANCIAL
INSTITUTIONS (IFIs)
The generic name given to all financial
institutions operating on an international level,
ranging from development banks and monetary
authorities.
3. TRANSNATIONAL CORPORATION
"Enterprise that engages in activities which add
value (manufacturing, extraction, services,
marketing, etc.) in more than one country (UCTC,
1991)."
4. G8 & G20
Group of nations that serve as an advisory organization
that discuss current economic and political problems
and transfer the ideas and form from the forum in
national legislative (Weiss,2018)

5. GLOBAL CIVIL SOCIETY

Either composed of individuals or groups of individuals
disadvantaged by the effects of globalization of the world
economy, they protest and seek alternatives while on the
other hand, global social movements constituting a basis for
an alternative to a new world order.
WHAT IS THE MODERN
WORLD SYSTEM?
A world system constitutes a social
system composed of boundaries,
structures, member groups, rules of
legitimation and coherence
(Wallerstein, 2011)

There are significant and meaningful

movements of resources, products,
people, in different economies
facilitated by modern transport and
communication (Chase-Dunn, 2018)
 SUMMARY
Economic Globalization is the expansion of national economies, the global
market driven by modern technologies and institutional set ups that promote
faster and easier flow of goods and capital.
There are diff. actors and institutions that drive economic globalization, most of
which are non-state actors. These include international economic organizations
like IMF, WB, ADB; central banks; private sectors led by MNCs; and civil society.
The modern world system is based on the theory of Wallerstein (1974), which
posited that globe economy is divided into the core, semi-periphery, and
periphery.
 LESSON 4:
THE GLOBAL
INTERSTATE
SYSTEM
 DEFINITION OF
TERMS
GLOBAL INTERSTATE SYSTEM
It is an insitutional arrangement of governance that addresses regional
or globalized issues that go beyond the scope of a nation-state (Chase-
Dunn, 1981)

INTERNATIONALISM
puts emphasis on diversity and celebrates multiculturalism, while
gloablism focuses more on the economic aspect of the exchanges
among countries and society
EFFECTS OF GLOBALIZATION
ON GOVERNMENTS

POSITIVE EFFECTS NEGATIVE EFFECTS

Increased Loss of Sovereignty
Interconnectedness Increased Competition
Economic Growth Income Inequality
Technological Advancement Cultural Homogenization
Cultural Exchange Environmental Challenges
Access to Resources and Labor Issues
Expertise Regulatory Complexities
INSTITUTIONS THAT GOVERN
GLOBALIZATION
World Trade Organization (WTO)
Economic Commission for Africa (ECA)
Economic Commission for Europe (ECE)
Economic Commission for Latin American and the Caribbean (ESLAC)
Economic Commission for Asia and the Pacific (ESCAP)
Economic and Social Commission for Western Asia (ESCWA)
World Bank (WB)
United Nations (UN)
World Health Organization (WHO)
International Labor Organization (ILO)
INSTITUTIONS THAT GOVERN
GLOBALIZATION

Organization for Economic Cooperation and Development (OECD)

Food and Agriculture Organization of the United Nations (FAO)
UNESCO
International Civil Aviation Organization (ICAO); International Maritime
Organization (IMO); International Telecommunication Union (ITU); The
World Intellectual Property Organization (WIPO)
 GLOBALISM VS
INTERNATIONALISM
Globalism refers to the idea of a world that is interconnected and
interdependent where issues, event, and actions have global
significance and impact.
Internationalism, emphasizes cooperation and collaboration
among sovereign nations to address common challenges and
pursue shares goals.
 SUMMARY
While globalization offers benefits in addressing global challenges like climate
change and pollution, it also presents challenges by affecting local sovereignty
and self-determination.
We delved into the various institutions contributing to global governance, such
as the UN and international finance and development organizations. The
chapter emphasized the growing significance of non-state actors like civil
society groups in international affairs.
Furthermore, we touched on the distinction between globalism and
internationalism. Globalism centers on economic aspects of globalization,
whereas internationalism focuses on cultural and social interactions.
THANK YOU FOR
LISTENING!