The

11
Contemporary
World
________________________________
Comprehensive Report
 Economic
Globalization
 Breakdown
01 Global Trade

02 Sustainable Development

03 Poverty and Inequality

1 Global Trade
Globalization
It is a term often used to describe the increasing interconnectedness and
interdependence of countries, economies, cultures, and people across the
globe.

Economic and Global Trade

Economic globalization refers to the increasing interconnectedness and
interdependence of economies worldwide, driven primarily by the expansion
of international trade, investment, and technological advancements.
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1 Global Trade
Protectionism
- A policy of a systematic government intervention in foreign trade with
objective of encouraging domestic product. This encouragement involves giving
preferential treatment to domestic producers and discriminating against foreign
competitors.

- Trade protectionism usually comes in the form of;

1. Tariff-a tax or duty to be paid on a particular class of imports or exports
2. Quotas -a limited quantity of a particular product which under official
controls can be produced, exported, or imported.
3. Legislation-Legislation is the process or result of enrolling, enacting, or
promulgating laws.
4. Subsidies- a sum of money granted by the government or a public body to
assist an industry or business so that the price of a commodity or service
may remain low or competitive.
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1 Global Trade Protectionism

Advantages Disadvantages
 Protecting domestic industries ¬– by
 Higher Prices for consumers –protectionist
implementing protectionist policies such as tariff, quotas measures such as tariffs and quotas often result in higher
or subsidies countries can shield their domestic industries prices for imported goods.
 Retaliation and trade wars – protectionist policies
from foreign competition.
 Job creation – protectionism can help create or can trigger retaliatory actions from other countries.
 Inefficiency and reduce competitiveness –
preserve jobs in domestic industries.
 National security – protectionism can be used as a protectionism can lead to inefficiencies within domestic
tool to safeguard national security interests. industries.
 Reduce economic growth – protectionism can
hamper overall economic growth and development.
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1 Global Trade
Trade Liberation
- Refers to the process of reducing barriers or restrictions on international trade. This can include the removal of tariff
quotas and other protective measures that limit the flow of goods and services across borders.

Pros Cons
 Increased trade can lead to economic growth
and development.  Job losses and income inequality
 Increase efficiency productivity and  Require time and support
specialization  Loss of sovereignty
 Promotes competition within domestic market
 Foster cooperation and peaceful relation
between countries
1 Global Trade

THE ROOTS OF PROTECTIONISM (during The Great Depression)

 The Great Depression, which began in 1929, was a period of severe economic hardship marked by
widespread unemployment, business failures, and a collapse in industrial production.

 Smoot-Hawley Tariff Act(1930)

 International Consequences: The protectionist policies of the 1930s deepened the global economic
crisis.
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1 Global Trade
TRADE LIBERALIZATION (Classical Economic Theories)
The process of reducing trade barriers and promoting open international trade, has its roots in various historical, economic, and
political factors

Adam Smith's Theory of David Ricardo's Theory of

Absolute Advantage Comparative Advantage
 Building on Smith's work, David Ricardo introduced the
 In his seminal work, "The Wealth of Nations" (1776), Adam
theory of comparative advantage in the early 19th century.
Smith argued that countries possess absolute advantages in
Ricardo argued that even if one country had an absolute
producing certain goods or services due to their unique
advantage in producing all goods, trade would still be mutually
resources, skills, or technology. Smith's core idea was that
beneficial. The basis of this theory is that each nation should
nations should specialize in producing the goods they are
specialize in producing what it can produce relatively more
most efficient at, as it would result in more output at lower
efficiently compared to other goods, even if it's not the best at
costs.
producing everything.
1 Global Trade
EFFECTS OF GLOBALIZATION
ON THE PHILIPPINES

01 Trade Openness

02 Migration

03 Employment

04 Inflation

05 Influence by external policies

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2 Sustainable Development
 Sustainable development is an organizing principle that aims to meet human
development goals while also enabling natural systems to provide necessary
natural resources and ecosystem services to humans.

Why is sustainability a
must?
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2 Sustainable Development
Environmental Degregation
 Deterioration of the environment through depletion of resources
 Destruction of ecosystems and the extinction of wildlife
 Disturbance to the environment

Key reasons for environmental Degradation (economic development)

 Industrial Revolution
 Population explosion and urbanization
 Increased/Higher Demand
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2 Sustainable Development
Environmental Degregation
Impact of Economic development on Environment
 Increased Carbon emission

 Deforestation/soil erosion

 Pollution (air/land/water)

 Contributes to Global Warming

 Loss of Biodiversity

 Long-term toxins

 Health problems and damages productivity

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2 Sustainable Development
Environmental Degregation
Corporate Environmental Responsibility - refers to a company's duties to abstain
from damaging natural environments.

Ways or solutions that entities can engage in to help combat environmental degragation:
 Sustainable Practices
 Green Supply Chains
 Clean Technologies
 Environmental Policy
 Circular Economy
 Long-term Vision
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2 Sustainable Development
Food Security
GLOBAL FOOD SECURITY: delivering sufficient food to the entire world population. It occurs when
all people are able to access enough safe and nutritious food to meet their requirements for a healthy life,
in ways the planet can sustain into the future.

FOUR MAIN DIMENSIONS OF FOOD SECURITY:

 Physical availability of food
 Economic and physical access to food
 Food utilization
 Stability of the other three dimensions over time

Food Security also means the sustainability of a society such as:

 Population Growth
 Climate change
 Water Scarcity
 Agriculture
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2 Sustainable Development
Food Security
The closest aspect of human life associated with food security is the environment. The challenges to good
security can be traced to the protection of the environment .

MAJOR ENVIRONMENTAL CHALLENGES:

 Destruction of natural habitats, particularly through deforestation
 Industrial Fishing
 Biodiversity and usable farmland have also declined at a rapid pace.
 Decline in the availability of fresh water.
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2 Sustainable Development
MAJOR ENVIRONMENTAL CHALLENGES

Causes Effects
 Degradation of soil  Creation of Climate Refugees
 Desertification  Leads to Hunger
 Increases in Food Prices
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2 Sustainable Development
Supporting Facts
 About two billion people worldwide don’t have access to safe drinking water today
 Only 0.5 per cent of water on Earth is useable and available freshwater – and climate change is
dangerously affecting that supply
 Climate change, population growth and increasing water scarcity will put pressure on food supply
(IPCC)

Global Warming
- food production becomes more difficult and uncertain due to changes in weather patterns, extreme
weather events, and other environmental disruptions.

EFFECTS:
 There is a risk of malnutrition among vulnerable populations
 Has a significant financial impact on small farmers
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2 Sustainable Development
Model or agenda by different organizations is
 Sustainability – wherein the United Nations promotes the sustainable agriculture as the second of
its 17 sustainable goals.
 The World Economic Forum (2010) also addressed this issue through the New Vision of
Agriculture(NVA) wherein public-private partnerships were established.
a) The Forums’ initiatives were launched to establish cooperation and encourage exchange of
knowledge among farmers, government, private sector etc. in both regional and national levels.
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3 Poverty & inequality

The Swedish statistician Hans Rosling once said, “ The 1 to 2 billion poorest in the world who don’t
have food for the day suffer from the worst disease, global deficiency. The way globalization is occurring
could be much better, but the worst thing is not being part of it.

 Economic and trade globalization

 Winners and loser

 Economic colonialism

 Microcredit
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3 Poverty & inequality

WHAT IS GLOBAL INCOME INEQUALITY?
It is the unequal distribution of resources, opportunities, and power that shape
well-being among the individuals on our planet.

HISTORY OF GLOBAL INCOME INEQUALITY

Global inequality in real incomes (and in citizen rent) has been a persistent feature of the
world economy since, at least, the Industrial Revolution that began some 200 years ago.
Around 1820, average real incomes in the richest regions in the world were at most about
five times the levels in the poorest regions.
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3 Poverty & inequality

WHY IS THERE GLOBAL INCOME INEQUALITY?
There are global and country-specific factors that drive income
inequality. To get a clearer idea of the causes, let’s look a country for
example: South Africa

SOUTH AFRICA
Apartheid is a big reason why. For almost 50 years, this formalized
racial segregation restricted the activities and movements of Black
South Africans, who made up most of the population. When apartheid
ended in the 1990s, inequality remained baked into the country’s
foundation. Gender, race, and land ownership are three other main
causes. In South Africa, women earn 38% less than men even when
they have similar education levels. When race gets added to inequality
analyses, it contributes 41% to income inequality.
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3 Poverty & inequality

THIRD WORLD AND THE GLOBAL SOUTH
The First. Second, and Third World hierarchy by looking at their origins and their implications. The terms date back to
the Cold War, when Western policymakers began talking about the world as three distinct political and economic blocs
(Tomlinson, 2003). Western capitalist countries were labeled as the "First World." The Soviet Union and its allies were
termed the "Second World." Everyone else was grouped into "Third World." After the Cold War ended, the category of
Second World countries became null and void, but somehow the terms "First World" and "Third World'" stuck around in
the public consciousness. Third World countries, which started as just a vague catchall term for non-alliance countries,
came to be associated with impoverished states, while the First World was associated with rich, industrialized countries.

In addition to being outdated, these terns are also inaccurate. There are more than 100 countries that fit the label of "Third
World," but they have vastly different levels of economic stability. Some are relatively poor, but many are not.
Nowadays, social scientists sort countries into groups based on their specific levels of economic productivity. To do this,
they use the Gross Domestic Product (GDP), which measures the total output of a country, and the Gross National
income (GNI), which measures GDP per capita (World Bank, n.d.).
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3 Poverty & inequality

Global City
The Impact of Globalization on Rural-Urban Differentiation and Global Cities

Rural-Urban Differentiation and Globalization

 Transformation of Agricultural Production
 Economic Consequences

Global Cities and Their Role

 The Concept of Global Cities
 Inequalities Within and Between Global Cities
 Global Cities as Nodes in Global Networks

Challenges Faced by Global Cities

 Peculiar Political Problems
Thank you!
 Reporters
01 Global Trade
o NOOH,AHMED B.
o RODRIGUEZ,KHARRA CAMILLE Z.
o ARANJUEZ, NEILMARK E.
o NOCHEFRANCA, JANNA AUBREY B.
o SALIH, ABDULLAH HEESHAM A.
03 Poverty and Inequality
o CALAOR, ASHLYN F.
o INDANAN,ALQAZAR S.
o CALUMBA,JOANA MARIE D.
o LEGADOS,REAH JANE F.
o LISBOS, REYMOND M.

02 Sustainable Development
o REBLANDO,ABEER I.
o ORDENIZA, RAY ALEX JR L.
o SEBASTIAN, DAIMEE NICOLE S.
o ASANI,ALLIAH DIANE D.M.
o DELIVA, DANICA FREIA J.
 The

11
Contemporary
World
________________________________
Comprehensive Report