GLOBAL

ECONOMY
BY: DR. ROWEL ROXAS
ECONOMIC
POWER
 CONCEPT AND DEFINITION
Economic globalization refers to the increasing interdependence of world
economies as a result of the growing scale of cross-border trade of
commodities and services, flow of international capital and wide and rapid
spread of technologies.
EXPANSION AND MUTUAL INTEGRATION OF MARKET FRONTIERS
“TIME AND SPACE COMPRESSION EFFECT” - greatly reduced the cost of
international trade and investment, thus making it possible to organize and
coordinate global production.
 EFFECTS OF GLOBALIZATION
1.LESS JOB SECURITY
2.DAMAGE TO ENVIRONMENT
3.MNC’S CREATES A MONOCULTURE

PROMOTES PROGRESSIVE
THINKING BUT DESTROYS
ETHNIC CULTURE

IMPACT ON CULTURE

1.LOSS OF LANGUAGE
2.LOSS OF CULTURE
3.ADOPTION OF OTHER CULTURES
4.DISCRIMINATION
5.TRANSFER OF TECHNOLOGY
 INCREASE TRADE –
GREATER CHOICE OF GOODS

GREATER COMPETITION –
LOWER PRICES
IMPACT OF
GLOBALIZATION
STRUCTURAL UNEMPLOYMENT-
FROM SHIFTING SECTORS

TAX AVOIDANCE -
EASIER
 GLOBALIZATION AND
EMPLOYMENT ISSUES
1. Protectionist trade barriers won't work in the 21st Century. Knowledge crossing borders in
massive amounts [is the] big new disruptive thing.

2. Virtual Migration- "All you need is more computing power, more transmitting power and
cheaper robots - and all that is happening."
Technology will soon allow virtual migration, thanks to telerobotics and telepresence.“The
worldwide number of domestic household robots will rise to 31 million between 2016 and
2019, says the International Federation of Robotics (IFR), with sales of robots for cleaning
floors, mowing lawns, and cleaning swimming pools forecast to grow.

3. Political Backlash – “Cures are being sold which are not related to the problem.” There is a
need for BALANCING ACT.

BY: TIM BOWLER – BBC REPORTER

 RERUM NOVARUM – POPE LEO X111
( may 15, 1891 )

 “OF THE NEW THINGS”

 RIGHTS AND DUTIES OF CAPITAL AND
LABOR
 Power of industry is controlled by a few factory
owners who are becoming rich from the hard labor of
the working class.
 The lower class suffers from poor working conditions
and low wages, and their animosity toward the
owning class is escalating.
 QUOTES FROM RERUM NOVARUM

 Workers are not to be treated as slaves; justice

demands that the dignity of human personality be
respected in them…
 Public authority show proper concern for the worker so
that from what he contributes to the common good he
may receive what will enable him, housed, clothed, and
secure, to live his life without hardship.
 7 PRINCIPLES OF RERUM NOVARUM

1. DIGNITY OF HUMAN PERSON

2. SALUS POPULI – COMMON GOOD
3. SUBSIDIARITY
4. PARTICIPATION
5. SOLIDARITY
6. PRIVATE PROPERTY
7. UNIVERSAL DESTINATION OF GOODS
 QUOTES OF LABOR / CAPITAL
Labor is prior to, and independent of, capital. Capital is
only the fruit of labor, and could never have existed if
labor had not first existed. Labor is the superior of
capital, and deserves much the higher consideration.
Abraham Lincoln
https://www.brainyquote.com/quotes/abraham_lincoln_395631
KARL MARX VIEW
https://www.azquotes.com/quote/189356?ref=labor-and-capital
 CLARO M. RECTO
So long as our economic policies remain dependent
primarily on foreign “aid” and investments, and
our policy-makers remain habitual yes-men of
foreign advisors, this “aid,” investment and advice,
will be directed toward the retention of the
economic status quo.”

Claro M. Recto (1890-1960)

MAHATMA MOHANDAS GANDHI
 SOLUTIONS FOR UNEMPLOYMENT

 MORE IMPORTANCE SHOULD BE GIVEN

TO PROFESSIONAL, TECHNICAL AND
VOCATIONAL EDUCATION.
 CHANGE THEIR ATTITUDE TO LIFE.
 CHOOSE INDEPENDENT CAREER.
 START SMALL BUSINESS
 SELF-EMPLOYMENT IS THE POSSIBLE
SOLUTION TO THIS PROBLEM.
GLOBAL ECONOMY
GLOBALIZATION AND GLOBAL ECONOMY