GLOBAL ECONOMY

GLOBAL ECONOMY
•The global economy refers to the interconnected
worldwide economic activities that take place
between multiple countries. These economic
activities can have either positive or negative
impact on the countries involved.
 2 TYPES OF ECONOMIES

•Protectionism
•Trade Liberalization
 PROTECTIONISM

•protecting one’s economy from foreign

competition by creating trade barriers.
 TRADE LIBERALIZATION

•reducing trade barriers to make international

trade easier between the countries.
• Tariff- required fees on imports/exports
• Free trades- trading of goods or services between
two or more countries without tariffs or taxes
Is the Philippines under Protectionism
or Trade Liberalization?
 DIFFERENT TRADE AGREEMENT IN THE
PHILIPPINES

• ASEAN Trade in Goods Agreement

• Philippine-Japan Economic Partnership Agreement
• Philippines – European Free Trade Association Free
Trade Agreement
• Regional Comprehensive Economic Partnership
VARIOUS WAYS TO MAKE TRADE
EASIER
 VARIOUS WAYS TO MAKE
TRADE EASIER
FREE TRADE TRADE BLOCK OUTSOURCING
• trading of goods and • Agreement made • Manufacturing jobs
services between to between government transfer from
or more countries to reduce or developed nations to
without tariff or eliminate trade developing nation
taxes. barriers. reduce the cost of
products.
 WHY GLOBAL ECONOMY IS
IMPORTANT
• There are numerous benefits of a global economy,
which include: Free trade: Free trade is an excellent
method for countries to exchange goods and
services. Increased investment: Due to the presence
of global economy, it has become easier for
countries to attract short-term and long-term
investment.
ACTIVITY #2 FOLLOW THE PRODUCT
The products that we consume and use-FOODS,
CLOTHING, and GADGETS are parts of our way of life.
Globalization allows for a worldwide exchange of these
commodities and exposure to different cultures as well.
This activity will allow you to investigate the origin and
spread of the products and services sold in our country.
You will also be able to know the countries involved in the
production, distribution, and consumption of the products
being sold and consumed in the country.
 CHOOSE ONE OF THE FOLLOWING
PRODUCTS BEING SOLD IN THE PHILIPPINES
• Starbucks coffee
• Lamborghini sports car
• iPhone
• Laptop
• McDonald’s Big Mac Burger
• Rolex Wristwatch
• Nike Shoes
• List down the main ingredients or raw materials in manufacturing
the chosen product. Identify the corresponding country from
which each ingredients or raw materials came from.
• Identify the countries involved in the manufacturing of the chosen
product.
• Aside from Philippines, list other countries in which the product
being sold.
• Cite the kinds of technology that made the creation of the product
possible. Consider