URDANETA CITY UNIVERSITY

COLLEGE OF ARTS AND SCIENCES

SOCIAL SCIENCE DEPARTMENT
1ST SEMESTER A.Y.2021-2022

Economic Globalization
Market Integration
 2.2 Market Integration

LESSON OUTCOMES:
 
At the end of the lesson, the learners are expected to demonstrate the
following:
• Explain the role of international financial insitutions in the creation
of a global economy
• Narrate a short history of global market intergration in the 20th
century
• Infer the attributes of global corporations
INTERNATIONAL FINANCIAL INSTITUTIONS

PRIVAT CITIGROUP
E MERYL LYNCH

WB
IMF IGO
ADB
 DISCUSSION POINTS
Intergovernmental Organization
World Bank
Purpose: to fight poverty
Institutions:
-International Bank for Reconstruction and Development
- International Development Association
- International Financial Corporation
- Multilateral Investment Guarantee Agency
- International Center for Settlement & Investment
 DISCUSSION POINTS

International Monetary Fund

Purposes: To stabilize economies
To restore sustainable growth
To balance payment problems

Regional Development Banks

Asian Development Bank
African Development Bank
 PROCESSING QUESTION:

So what is the role then of IFIs in the global economy?

They are actors.

They lend money and provide financial grants to nation-states and

global corporations.
 DISCUSSION POINTS

Global Corporations are INSEPARABLE from the

phenomenon of globalization.
 DISCUSSION POINTS
The Three Periods of Global Corporations

American,
Colonialism Japanese,
Trade and and & European
Exchanges
Imperialism Corporation
s
DISCUSSION POINTS

Global
(TNCs and
MNCs)
Int’l Contemporary
Global
Corporations
 DISCUSSION POINTS

International
Global Companies
Companies

Importers Invested in and present in

many companies
Exporters
Market

No investment outside Products & Services to each

individual local market
home country
 DISCUSSION POINTS

MNCs TNCs

They have investment in other They are more complex organizations

countries, but do not have which have invested in foreign
coordinated product offerings in operations, have a central corporate
each country. They are more facility but give decision making,
focused on adapting their products research and development, and
and services to each individual marketing powers to each individual
local market. foreign market.
PROCESSING QUESTION:

Are the following global corporations

MNCs or TNCs?
 DISCUSSION POINTS

Attributes of global corporations

1. They are agents or actors of economic development
2. They are gain their economic prominence.
3. They set the balance resulting from greater global wealth
inequality, income inequality, lack of effective workers
protection, environmental degradation, and in some cases,
threatened national sovereignty.
4. They are so powerful that they can create a financial crisis if
they want to.
 DISCUSSION POINTS

Global corporations has brought:

1. Global inequality
2. The systematic stability and viability of the global financial
systems
3. Positive and negative contributions to the contemporary
world
 END . .. …

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