SUMMARY

Thomas Friedman’s Phases of Globalization

     
  Globalization 1.0   Globalization 2.0 Globalization
  3.0
 
Globalization 1.0   Globalization 2.0   Globalization 3.0
  (1492 – 1800)   (1800 – 1950)  (1950 – 2000)
(1492
  – 1800)   (1800 – 1950)   (1950 – 2000)
  Period of Mercantilism   End of World War II Period
  of Technology
Period of Mercantilism End of World War II and Internet
Period of Technology and
      Internet
  Age of Industrialization   Age of Pax Brittanica Age  of Information
(rise of British
Age of Industrialization Economy)
(rise of British Age of Pax Brittanica Age of Information
Economy)      
  Inventions:   Formation of Market Intensification
  of trade
Inventions:  Steam engine Integrationofand
Formation Market worldwide and
Intensification of trade
 
Steam engine Printing press Institutionalizations
Integration and of development
worldwideof and development
 
Printing press Railway system major economic
Institutionalizations of major Multinational
of Multinational corporations
 Railway system activities
economic in global
activities in global corporations
market
market
     
  Development of Social   New  players and
Development of Social Systems
Systems and
and Institutions: New economic
prominent players and
Institutions:  Government actors:prominent economic
 Government
 Education  actors:
China
 Education Exchange of goods  
ASEAN China
 Exchange of goods within the
within the region   ASEAN
European Union
region  
Japan European Union
  Japan
South Korea
 South Korea
SUMMARY
Thomas Friedman’s Flatteners
     
Globalization 1.0 Globalization 2.0 Globalization 3.0
     
(1492 – 1800) (1800 – 1950) (1950 – 2000)
1. Collapse of the Berlin
 
Wall    
2. Creation of NETSCAPE Period – commercialEndinternet
of Mercantilism of World Warbrowser
II Period of Technology
and Internet
3. Workflows – software
  applications
Age of Industrialization
  that connected people
Age of Pax Brittanica
 
Age of Information
4. Outsourcing – shifting
(rise ofof work
British overseas
Economy)
     
5. Offshoring – transferring
Inventions: of whole factories overseasIntensification of trade
Formation of Market
 Steam engine Integration and worldwide and
6. Open Sourcing – creation
 of
Printing pressfree softwares
Institutionalizations of development of
 major economic Multinational
7. Insourcing – letting inRailway
other system
business in side
activities your company
in global corporations to take care of
market
Logistics      
Development of Social New players and
8. Supply Chaining- supplies
Systems andcome from other countries
Institutions: and sold
prominent in other
economic
 Government actors:
countries  Education  China
 Exchange of goods  yahoo
ASEAN
9. Informing – development of search engines, google,
within the region  European Union
10.Steroids – Voice over internet, WIFI 

Japan
South Korea
SUMMARY
Thomas Friedman’s Crisis
     
Globalization 1.0 Globalization 2.0 Globalization 3.0
     
(1492 – 1800) (1800 – 1950) (1950 – 2000)
     
Period of Mercantilism End of World War II Period of Technology
and Internet
1. Ambition Gap
 
Age of Industrialization
 
Age of Pax Brittanica
 
Age of Information
(rise of British Economy)
2. US not producing enough engineers and
 
Inventions:
 
Formation of Market
 
Intensification of trade
 Steam engine Integration and worldwide and
scientists
Printing press Institutionalizations of
major economic
development of
Multinational
 Railway system
activities in global corporations
3. Education Gap market
     
Development of Social New players and
Systems and Institutions: prominent economic
 Government actors:
 Education  China
 Exchange of goods  ASEAN
within the region  European Union
 Japan
 South Korea
 UNIT 2
CHAPTER 4
GLOBAL ECONOMY
 GLOBAL ECONOMY
• Refers to interconnected worldwide
economic activities that take place
between multiple countries.
• It can have either a positive or negative
impact on the countries involved.
• Economic system aims to understand the
assumptions of other economies as well
as our own contributes to the goal of
developing cultural literacy.

• It also stimulates experimentation on

how an economy could be organized.
Every society must answer Three Economic
questions:
 What goods and services should be
produced?
 How should these goods and services
be produced?
 Who consumes these goods and
services?
 WHAT IS
ECONOMIC SYSTEM?
 ECONOMIC SYSTEM
• An organized way in which a state or nation
allocates its resources and apportions goods
and services in the national community.
• Regulate factors of production, including
capital, labor, physical resources,
and entrepreneurs. 
The Global Economy of most countries is
classified into there categories:

MARKET COMMAND MIXED

ECONOMY ECONOMY ECONOMY
MARKET ECONOMY
Decision making of private individuals
Economy under the will and interest of the individuals.
Economic freedom to purchase and sell products, services,
and properties.  
MARKET

This condition is not planned by a single person or group

ECONOMY

that has the ability to manipulate or direct the economy

solely.
It promotes competition among business and firms.
 
HONGKONG NEW ZEALAND

AUSTRALIA SWITZERLAND
COMMAND ECONOMY
 A central economic planning body handles the entire decision
making.
 The quality and quantity of goods and services produced is
based on the decision of the government.
 Production quantity is dictated, consumer behavior is directed,
and market operation is controlled by a single authority.
 Its objective is to mobilize resources for the common good of
the public and for the interest of the nation.
 Private individuals have no say in the economic operation.
NORTH KOREA CUBA

RUSSIA CHINA
MIXED ECONOMY
 Market-driven economies
 Combination of market and command economies.
 Some sectors are under the directions of the private
individuals while other aspects of the economy are left
within the guidance of the government.
 State can take over the ownership and operation of a
private company for the purpose of maintaining the
interest of the nation.
PHILIPPINES UNITED STATES

UNITED KINGDOM FRANCE

 ANALYSIS OF ITS EFFECT OR IMPACT TO THE
PRESENT PARTICULARLY TO DEVELOPING
COUNTRIES AND INTERNATIONAL RELATIONS
MARKET ECONOMY: ADVANTAGES
 Large parts of the society take on a bright,
merry and colorful air as everyone busies
himself trying to sell something to someone
else.
 Most people work harder
 Foreign investment is attracted as word gets out
about new opportunities for earning profit
MARKET ECONOMY:
DISADVANTAGES
Increase in corruption in all sectors of
society.
Workers/businesses face uncertainty as a
result of competition and change: no
guarantee for job.
Growing social and economic inequality.
COMMAND ECONOMY:
ADVANTAGES
 
• Less inequality
• Common good versus profit priority
• Can prevent abuse of monopoly power
COMMAND ECONOMY:DISADVANTAGES

• Price controls
• Bureaucratic
• Threat to democracy and liberty
MIXED ECONOMY: ADVANTAGES

• Distribute goods and services to where

they are most needed.
• Encourage innovation to meet customers
need.
• Everyone is free as long as its legal.
MIXED ECONOMY: DISADVANTAGES

• Limited economic freedom

• Not practice to work out very well
• Government decides the amount of
tax on products.
CONCLUSION
• Economic system has an important factor in
people getting along in a balance of nature.

• It takes a certain number of human hours to

provide all of the healthcare services for these
millions of people.

• Focused on the dichotomies and comparisons

between market economies and planned
economies.