TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES - MANILA

College of Liberal Arts

Social Sciences Department
Second Semester A.Y. 2022-2023

GEC 03: THE CONTEMPORARY WORLD

Mr. Rolito Eser Bacalso

PRELIMINARY EXAMINATION
Name: PEÑA RAVEN SHERWIN
Date: MAY 19, 2023
Course: BET-MT-HVAC/R 1A

A. Directions: Read the questions carefully. Make sure that your answers are explained in a
brief manner but concise and in your own words. Please append/cite your citations. Submit this
EXAMINATION in typewritten format. You may write your answer after each question. Each of
your answers in this Examination will be graded based on the following criteria:

Rubrics: Organization of ideas-8 points, relevance or correctness of the answer based on

the question- 5 points, originality of the answer-5 points, citation/s is/are provided-2 points

1. To what extent is Global Poverty a harm inflicted by the Global Economy? Elaborate
you’re answer. (20 points)

Answer:
Global Poverty is a complicated problem with several root causes. While the global
economy has helped certain nations' levels of poverty decline, it has also contributed to
poverty in other nations. In article of National Bureau of Economic Research Anne Harrison
(2007) claims that the impacts of globalization on reducing poverty are conflicting.
The global economy is a major factor in determining poverty levels, but it is not the only
cause of the problem.
Poverty levels are impacted by the global economy both positively and negatively. On the
positive side, economic expansion and globalization have helped millions of people escape
poverty, especially in developing nations like China and India where economic expansion has
been especially quick.

However, on the negative side, the global economy can also exacerbate poverty in several
ways:
- Trade policies
- Unequal distribution of wealth and resources
- Exploitative practices
- Financial instability
 - Climate change

In conclusion, while the global economy does not entirely cause poverty worldwide, it does
have a considerable impact on poverty levels.

2. Why is there an increase in Poverty and Inequality? Explain. (20 points)

Answer:
The growth in poverty and inequality is a complex issue that is influenced by a wide
range of factors. Addressing these underlying factors will require a comprehensive approach
that takes into account economic, social, political, and environmental factors.

Alvaredo, F., Chancel, L., Piketty, T., Saez, E., & Zucman, G. (2022). World Inequality
Report 2022. Following are some elements that contribute to rising poverty and inequality:
- Economic policies: Economic policies that put the demands of the rich people above
those of the poor can make inequality and poverty worse.
- Globalization: Although it has helped many people escape poverty, it has also helped
inequality to widen like for example the advantages of globalization have frequently been
concentrated in the hands of a small number of wealthy individuals.
- Environmental degradation: can disproportionately harm poorer people and promote
poverty and inequality. Examples of this include climate change and deforestation.
- Political aspects: Conflict, corruption, and political instability may all worsen poverty and
inequality.
Discrimination: By restricting access to chances for work, education, and other services,
discrimination on the basis of race, gender, sexual orientation, and other characteristics can lead
to poverty and inequality.

3. Why are the Multinational and Transnational Corporations so powerful? Discuss your
answer. (20 points)

Answer:
According to MBA in Simple Words. (2021) A multinational corporation is a
particular
type of company that operates in several countries but is governed centrally at its

headquarters in the home country. Transnational firms also operate worldwide but do so
decentralized. For a variety of reasons, some of which I will explain in this paper,
why these businesses have become so powerful.

- The size and financial resources of multinational and transnational corporations are
two major determinants of their power.
 - Multinational and transnational corporations' political influence, which increases their
power, is an also element. These companies usually have a significant influence on
politics, particularly in regions with lack of rules or weak enforcement.
- And also the effect of multinational and transnational corporations on culture is
equally significant. Through their advertising and branding efforts, these companies
have the ability to shape consumer behavior and public opinion.
As a result of their size, financial resources, influence in politics, and cultural impact,
multinational and transnational firms are strong. Because they may operate in several
nations and marketplaces, multinational and transactional corporations can benefit from
economies of scale and extent, which makes them strong. As a result, there is a need for
more responsibility and oversight of these businesses to make sure they run their
operations in a sustainable and socially responsible manner.

4. What influence Did the Industrial Revolution have on the World Economy? Explain
your answer. (20 points)

Answer:
The international economy was greatly impacted by the industrial revolution,
which changed it from being dependent on agriculture to being based on industry. It
had a positive impact since a lot of new ideas were made and the economy was
eventually encouraged.
The Industrial Revolution led to the replacement of economies based on agriculture and
handicrafts with economies based on large-scale industry, automated production, and the
factory system. As a consequence of new machinery, energy sources, and organizational
strategies, existing industries become more productive and effective. Another impact is
the expansion of urban areas was another consequence of the Industrial Revolution.
People started moving from rural regions to cities in search of employment as factories
and businesses emerged. Cities grew as a result, opening up new commercial and
entrepreneur prospects.
Technology advancements in the areas of transportation and communication were also
greatly influenced by the industrial revolution. Like the invention of telephone cause to
easier way of communication and in transportation the invention of expansion of railways
makes it easy to transport goods. The ongoing expansion of international commerce and
the dominance of big businesses in the world economy are examples of how it is still
having an impact today. The modern industrial economy was established as a result,
which enhanced productivity, efficiency, and economic development.

5. What do you think are the ways to ensure Fair Competition in a Capitalist Economy?
Justify your answer. (20 points)

Answer:
In my own opinion there are several ways to ensure fair competition in a
capitalist economy, to prevent exclusive rights from forming and to encourage
competition, one method is to set policies that are enforced by the government.
And also, government can offer training and education programs to assist people in
acquiring the skills they need to thrive in job opportunities.
With this approach education can assist them gaining the knowledge and skills necessary
to compete in the market. And by applying regulations by the government, it can prevent
monopolies like a corporations that is controlled everything.

According to Kupchan, C. (2021, April 12) Another way is to provide subsidies or tax
breaks to small businesses so that they can compete with larger corporations.
By this way government may support the growth and continuation of smaller companies
by offering tax advantages or subsidies, which will ultimately boost the economy as a
whole.