CvSU Vision CvSU Mission

The premier university in Cavite State University shall provide

historic Cavite recognized
Republic of the Philippines excellent, equitable and relevant
for excellence in the educational opportunities in the arts,
development of globally
CAVITE STATE UNIVERSITY science and technology through quality
competitive and morally Silang Campus instruction and relevant research and
upright individuals. Silang, Cavite development activities.
It shall produce professional, skilled,

DEPARTMENT OF ARTS AND SCIENCES

CONTEMPORARY WORLD
ACTIVITY #2

GLOBAL ECONOMY

NAME: JEFF R. AGAS COURSE/SECTION: BSBM-MM, 1B

DATE: NOVEMBER 23, 2022 SIGNATURE:

I. Direction: Answer the following questions:

1. What are the missions and roles of the following financial institutions in
Global economy: (5% each)
a. General Agreement on Tariffs and Trades (GATT)
b. World Trade Organization (WTO)
c. International Monetary Fund (IMF)
d. European Union
e. Asia-Pacific Economic Cooperation (APEC)
2. One of the form of market integration imposed by these financial
institutions is free trade agreement.
a. Define free trade agreement (5%)
b. Will free trade agreement be favorable to countries like the
Philippines? State your reason (10%)
3. Define the following: (5%)
a. Capitalism
b. Surplus value
c. Monopoly Capitalism
d. Imperialism
e. Crisis of overproduction
4. Explain: What is the importance of export capital in capitalism? (10%)
 CvSU Vision CvSU Mission
The premier university in Cavite State University shall provide
historic Cavite recognized
Republic of the Philippines excellent, equitable and relevant
for excellence in the educational opportunities in the arts,
development of globally
CAVITE STATE UNIVERSITY science and technology through quality
competitive and morally Silang Campus instruction and relevant research and
upright individuals. Silang, Cavite development activities.
It shall produce professional, skilled,

DEPARTMENT OF ARTS AND SCIENCES

Answer:

1. a. The General Agreement on Tariffs and Trade (GATT) covers

international trade in goods. The workings of the GATT agreement are the
responsibility of the Council for Trade in Goods (Goods Council) which is
made up of representatives from all WTO member countries.
b. The World Trade Organization (WTO) is the only international
organization dealing with the global rules of trade. Its main function is to
ensure that trade flows as smoothly, predictably and freely as possible.
c. The IMF is an organization of 189 member countries that works
to foster global monetary cooperation, secure financial stability, facilitate
international trade, promote high employment and sustainable economic
growth, and reduce poverty around the world.
d. The aims of the European Union within its borders are promote
peace, its values and the well-being of its citizens. offer freedom, security
and justice without internal borders, while also taking appropriate
measures at its external borders to regulate asylum and immigration and
prevent and combat crime.
e. The Asia-Pacific Economic Cooperation (APEC) forum,
established in 1989, has become the pre-eminent economic forum in the
Asia-Pacific region. Its primary purpose is to promote sustainable
economic growth, trade and investment, and prosperity in the Asia-Pacific
region.

2. a. Free Trade Agreement are treaties between two or more

countries designed to reduce or eliminate certain barriers to trade and
investment, and to facilitate stronger trade and commercial ties between
participating countries. There are two types of trade agreements: bilateral
and multilateral.
b. Yes, as the economy recovers from the impact of the Covid-19
pandemic, the Department of Trade and Industry (DTI) is optimistic that
free trade agreements (FTA) will help boost the growth of exports. It is a
pact between two or more nations to reduce barriers to imports and
exports.
 CvSU Vision CvSU Mission
The premier university in Cavite State University shall provide
historic Cavite recognized
Republic of the Philippines excellent, equitable and relevant
for excellence in the educational opportunities in the arts,
development of globally
CAVITE STATE UNIVERSITY science and technology through quality
competitive and morally Silang Campus instruction and relevant research and
upright individuals. Silang, Cavite development activities.
It shall produce professional, skilled,

DEPARTMENT OF ARTS AND SCIENCES

3. a. Capitalism is an economic system based on the private

ownership of the means of production and their operation for profit.
Central characteristics of capitalism include capital accumulation,
competitive markets, price system, private property, property rights
recognition, voluntary exchange, and wage labor.
b. The surplus produced over and above what is required to
survive, which is translated into profit in capitalism. Since the capitalist
pays a laborer for his/her labor, the capitalist claims to own the means of
production, the worker's labor-power, and even the product that is thus
produced.
c. The term “monopoly capitalism” is used to describe an aspect or
stage of capitalism in which monopoly control is widespread and explicit,
though the ideological fiction of free markets and competition is still
maintained in public discourse.
d. Imperialism is the state policy, practice, or advocacy of extending
power and dominion, especially by direct territorial acquisition or by
gaining political and economic control of other territories and peoples.
e. Too many commodities are produced than can be profitably sold,
and too much capital has been invested in industry, in the attempt to claim
a share of the available profits.

4. The export of capital influences and greatly accelerates the

development of capitalism in those countries to which it is exported. While,
therefore, the export of capital may tend to a certain extent to arrest
development in the capital-exporting countries, it can only do so by
expanding and deepening the further development of capitalism
throughout the world. The export of capital is a primary economic tool
utilized by neocolonialism. More than 60 percent of Great Britain’s direct
investments are invested within the limits of the former British Empire.
Most of France’s foreign investments are in the franc zone. The primary
sphere for export of capital from the United States remains the dollar zone
—Canada and Latin America. However, the share of this capital has been
reduced from 54 percent in 1946 to 43 percent in 1968. At the same time
the share of Australia and the countries of Asia and Africa has increased
from 11 to 24 percent.