THE GLOBAL

ECONOMY
(Economic Globalization)
The world economy or global economy is
the economy of all human of the world,
considered as the international exchange
of goods and services that expressed in
monetary units of account.
The global economy refers to the
interconnected worldwide economic
activities that take place between
multiple countries. This economic
activities can have either a positive or
negative impact on the countries
involved.
 it is refers to the widespread
international movement of goods,
capital, services, technology and
information. It is increasing
economic integration
 The UNITED NATION, tried to
address the different problems
in the World: Their efforts
were guided by the Eight
Millennium Development
Goals, which they are Created
in the 1990.
Millennium Development Goals (MDGs):
To eradicate extreme poverty and hunger
To achieve universal primary education
To promote gender equality
To reduce child mortality
To improve maternal health
To combat HIV/AIDS, malaria, and other diseases
To ensure environmental sustainability
To develop a global partnership for development
Since there are different standards of living
around the world, we can expect different
meanings attached to it, In the Philippines,
a person is officially living in poverty if he
makes less than 100,534 pesos a year,
around 275 pesos a day. This is called the
poverty line or poverty threshold. But we
are going to focus on extreme poverty
which is according to UN.
Based on UNITED NATION, a condition
characterized by severe deprivation
of basic human needs, including food,
safe drinking water, sanitation
facilities, health, shelter, education,
and information. The UN defines
extreme or absolute poverty as living
on less than $ 1.25 a day.
Last 2015, UN reported that 836 million
people still live in extreme poverty but that
is down from 1.9 billion, so its means there
is a success or at least a lot of progress.
The WORLD BANK PREDICTED that by 2030
the number of people living in extreme
poverty could drop to less that 400 million.
Of course that assumes everything will keep
improving as it has been.
Climate change has to be considered
since it is a threat to these
improvements in global poverty.
Most people who have been lifted out of
extreme poverty are still poor and being
poor comes with serious problem, from
disease to lack of water. Income
inequality is rampant and one in seven
people still live without electricity.
 ECONOMIC
GLOBALIZATION
AND GLOBAL TRADE
ECONOMIC GLOBALIZATION- it is refers to the
widespread international movement of
goods, capital, services, technology and
information. It is increasing economic
integration.
GLOBAL TRADE- also known as international
trade, it is simply the import and export of
goods and services across international
boarders.
 The Two Types of Economies associated with the
economic globalization, the Trade Protectionism and
Trade Liberalism.
 Protectionism- the theory or practice of shielding a
country’s domestic industries from foreign competition
by taxing imports, its also a policy that protects
domestic industries from unfair competition from
foreign ones. The four primary tools are tariffs,
subsidies, quotas and currency manipulation.
 Trade Liberalism- it refer to the removal or reduction
of restrictions or barriers on free exchange of goods
between nations.
World War II heavily influenced the
shifting of the dominant economic policy
from trade protectionism to trade
liberalization or free trade. Free trade
agreements and technological advances
in transportation and communication
mean goods and services move around
the world more easily than ever.
 Jeffrey Sachs ‘Mobile phones are the single
transformative technology, when it comes to the
developing world.
 Phones give people access to banking and payment
system and better access to education and information.
 In some places, mobile phones help farmers get
information and get the best price for the crops they
are producing.
 Leapfrogging – to skip straight to be more efficient and
cost-effective technologies that were not available in
the past.
International Trade has also created
new opportunities for people to sell
their products and labor in a global
marketplace.
Globalization made some countries,
especially the developing ones, to gain
more in the global economy at the
expense of other nations.
 Fair Trade, as defined by the International Fair
Trade Association, is the “Concern for the social,
economic and environmental well-being of
marginalized small producers.
 It aims for a more moral and equitable global
economics system. Specifically, it is concerned
with protection of workers, producer,
establishment of more just prices, engagement in
environmentally sound practices and sustainable
production.