GLOBAL

ECONOMY
GROUP 1:
Ambongan, Mark Ryan
Bandal, April Rose G.
Cabus, Maxine Angel
Montejo, Alice Via
Potestad, Dondy
 Economic Globalization

-the spread of TRADE, TRANSPORTATION, and

COMMUNICATION systems on a global scale in the
interest of promoting international commerce.
Globalization is the word to describe the growing
inter independence of the world economies,
cultures and populations, brought about by cross-
border trade in goods and services, technology
and flows of investment, people, and information.
TWO TYPES OF ECONOMIES:

1. PROTECTIONISM- Protecting one’s economy

from foreign competition by creating trade
barriers.
2. TRADE LIBERALIZATION- Reducing trade
barriers to make international trade easier
between countries.
TRADE BARRIERS/ TARIFFS

- Required fees on imports/ exports

of goods.
 Globalization Actors

Are the ones that involved in global politics or

organization, not the people.
 Globalization Actors

• STATES • ACTIVE GROUP

• IGO’S • NATION
• MNC • GOVERNMENT
• NGO’S
STATES:
 A territory that is
inhabited by
STATES: population and
with a organizated
government.
 Two types:
• Intergovernmental
International Organization
Organization: • Non- Governmental
Organization
 Their members are part of the
states. Some organizations are
global and some are regional.
IGO’S:
Examples:
(Intergovernmental United Nation
Organizations) NATO
European Union
World Healthy Organization
World Bank
 NGO’s: People are the
(Nongovernmental member of this
organization.
Organization)
 A large commercial
MNC: organization with
(Multinational affiliates cooperating
companies in a
Corporations) number of different
countries.
 Group of people
that share a
ACTIVE GROUP: common belief and
protest.
 Political direction and
control exercised
over the action of the
members, citizens or
GOVERNMENT: inhabitants of
communities,
societies and state.
 THE MODERN
WORLD SYSTEM
The Modern World-System
Is a capitalist world-economy which is the
geohistorical system in which we live.
Although separated for pedagogic reasons, these two
structures are intimately entwined to produce the
social space-time structure that is the modern
geohistorical system.
 IMMANUEL
WALLERSTEIN He called the capitalist
MODEL world economy.

Wallerstein described high-income

nations as the “core” of the world
economy.

• Wallerstein called the “ periphery”

those low-income countries.
IMMANUEL Middle-Income countries
are considered the
WALLERSTEIN “semi-periphery.
MODEL
 CORE

Is the manufacturing base of the planet where

resources funnel in to become the technology
and wealth enjoyed by the Western world
today.
 Periphery

Whose natural resources and labor

support the wealthier countries, first as
colonies and now by working multinational
corporations under neo-colonialism.
 Semi-Periphery

Countries that have closer ties to the

global economic core.
It is not that there is lack of global wealth;
it is that we do not distribute it well.
 GLOBAL
ECONOMIC
INTEGRATION
Measuring the impact of globalization on individual economies.

People, companies, and economies are more integrated and

interconnected than ever before. This helps facilitate connections,
which leads to specialization, innovation, and economic progress.
Through these connections, economies benefit from the knowledge
and experience of others, and learn how to replicate or adapt ideas for
their own needs.
THE EUROPEAN UNION
ECONOMIC
INTEGRATION is an arrangement among nations that
typically includes the reduction or
elimination of trade barriers and the
coordination of monetary and fiscal
policies. Economic integration aims to
reduce costs for both consumers and
producers and to increase trade between
the countries involved in the agreement.
 SIX STAGES OF ECONOMIC INTEGRATION

1.PREFERENTIAL TRADE AREA

-It is a trading bloc that gives preferential access to
certain products from certain countries.
-Usually carried out by reducing, but not eliminating
tariffs.
- Example of Preferential Trade area is one between the
EU and African, Caribbean and Pacific (ACP) group states.
 SIX STAGES OF ECONOMIC INTEGRATION

2. FREE TRADE AREA

-Is an agreement made between countries, where the
countries agreed to trade freely among themselves but are
able to trade with other countries outside of the free-trade
area in whatever way they wish.
 SIX STAGES OF ECONOMIC INTEGRATION

3. CUSTOMS UNIONS-
Is an agreement made between countries, where the
countries agreed to trade freely among themselves, and also
agreed to adopt common external barriers against any
country attempting to import into the customs union.
 SIX STAGES OF ECONOMIC INTEGRATION

4. COMMON MARKETS
Is a customs union with common policies on product
regulation, and free movement of goods, services, capital,
and labor.
 SIX STAGES OF ECONOMIC INTEGRATION

5. ECONOMIC AND MONETARY UNION

Is a common market with a common currency and a common
central-bank.
 SIX STAGES OF ECONOMIC INTEGRATION

6. Complete Economic Integration

This would be the final stage of integration at which point the
individual countries involved would have no control of
economic policy, full monetary union, and complete
harmonization of fiscal policy.
Thank You!