Chapter 2: The Global Economy

Vida Narag-Banguibang
CBEA faculty
 Objectives
• To identify UN’s millennium development
goals.
• To differentiate protectionism and
liberalization.
• To accomplish the activity.
• United Nations tried to address the problems
in the world guided by the 8 Millenium
Development Goals.
MDG
• Since there are different standards of living
around the world, we can expect different
meaning attached to it.
• In the Philippines, a person is officially living in
poverty if he makes less than 100,534 pesos a
year, around 275 pesos a day.
• This is called poverty line or poverty
threshold.
• But we are going to focus on extreme poverty,
which is characterized by severe deprivation
of basic human needs including food, safe
drinking water, sanitation facilities,
health, shelter education, and information
• 2015 Un reports that 836 million people still
live in extreme poverty.
• World Bank predicted in 2030 that the number
of living in extreme poverty could drop to less
than 400 million. But we have to consider
climate change as a threat and now COVID-19.
• Income inequality is rampant and 1 out 7
people still live without electricty.
• Is poverty falling? The answer is still
complicated.
• At least efforts made by UN and other
organizations made a difference. Economic
globalization is the greatest contributor.
• World economies have become more
interconnected and free trade has driven the
growth of many developing economies.
 Economic Globalization and Global
Trade
• According to UN, 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. It reflects the continuing expansion
and mutual integration of market frontiers, and is
an irreversible trend for the economic development
in the whole world at the turn of the millennium.
 Two Types of economies associated
with economic globalization
Protectionism
A policy of systematic governemnt
intervention in foreign trade with
the objective of encouraging
domestic production. This
encouragement involves giving
preferential treatment to domestic
producers and discriminating
against foreign competitors.
Trade
Liberalization
Free trade
Free trade agreements and
technological advances in
transporation and
communication mean goods and
services move around the world
more easily than ever.
 Two Types of economies associated
with economic globalization
Protectionism Trade
Liberalization
It comes in quotas and tariffs. (tariffs Phones are the single most transformative
are required fees on imports or exports) technology when it comes to the developing
Country A pen costs P1, and in country world.
B the pen would become P6, tha tariff is
Phones give access to education and
P5. information.

Countries like China, japan and USA are Phones help farmers get information and
being accused of practicing get the best price for the crops thay are
protectionism. producing.
Two Types of economies associated
with economic globalization
Protectionism Trade
Liberalization
International trade created new
opprtunities for people to sell their products
and labor in global market.

Some countries gain more in the global

economy at the expense of other nations.
Fair trade is the concern for the social,
economic and environmental well being of
marginalized small producers.
Two Types of economies associated
with economic globalization
Protectionism Trade
Liberalization
It aims for the more moral equitable global
economic system.

It is concerned with the protection of

workers and producers, establishment of
mpore just prices, engagement in
environmentally sound practices and
sustainable production, creation of
relationships between producers and safe
working environment.
 Activity 2
The products that we consume and use- foods,
clothing, and gadgets- are part 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
students to investigate the origin and spread of
the products and services sold in the country.
You will be able to know the countries involved
in the production, distribution, and consumption
of the products being sold and consumed in the
 Activity 2

country. The following are the steps to accomplish

this activity.
1.Have a group of 10 members. Choose your group
mates. Each group will choose to one of the
following products being sold in the Philippines.
The group shall choose specific brand of the
product assigned to them.
a. Coffee c. Laptop e. wristwatch
b.Sports car d. Hamburger f. shoes
 Activity 2
2. List down the main ingredient of raw materials in
manufacturing the chosen product. Identify the
corresponding country from which each
ingredient or raw material came from.
3. Identify the countries involved in the
manufacturing of the chosen product. Indicate the
corresponding service the country does ffor the
product. (e.g. Costa Rica- planting of beans).
4. Aside from the Philippines, list other countries in
which the product is being sold.
 Activity 2
5. Cite the kinds of technology that made the
creation of the product possible. Consider
communications and transporation.
6. Write one to three statements about the
creation of the product. Share your statements
with your gropmates and indicate whether you
agree or disagree with their statements.
• Indicate names of members in this activity. This
will be considered quiz number 1 of finals. Do
not include members who did not contribute
anything.
• (note: freely choose the product you like from
number 1. Output will be discussed to class. You
can have any way of presenting your output in
class. Same 15 points for explanation and 15
points of question and answer. God bless!
• You will use class time to do the activity.
• God bless!