MARKET

GLOBALISM

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 Learning Outcomes:
1. Recognize and assess the changes in the
world economy;
2. Understand and differentiate the
different forms of economic system;
3. Realize the best economic system for
the Philippines to exercise for its growth
and development;
4. Appreciate and accept one’s important
role and participation in the different
developmental processes of the
Philippines in the future. 2
What makes an
economy?

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 AN OVERVIEW OF THE
WORLD ECONOMY
• The world economy has changed
profoundly since WWII (Drucker,
1986).
• Perhaps, the most fundamental
change is the emergence of global
markets; responding to new
opportunities, global competitions
have steadily displaced or absorbed
local ones.
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 Organizations stand a better chance of
achieving success when plans and strategiess
are based on the new realities of the changed
world economy (Simon & Schuster, 1997).

• Capital movements
rather than trade have
become the driving force
of the world economy.
(Dollar value of the
world trade is greater
than even before)

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 Organizations stand a better
chance of achieving success when
plans and strategies are based on
the new realities of the changed
world economy (Simon &
Schuster, 1997).

• Production has become a source of

generating employment.
• (Productivity continues to grow even
if employment in manufacturing
remains steady or had declined; blue-
collar jobs in manufacturing)
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 Organizations stand a better chance of
achieving success when plans and strategiess
are based on the new realities of the changed
world economy (Simon & Schuster, 1997).

• The world economy dominates the scene.

Individual economies play a subordinating
role.
• (Success of Germany and Japan is due to
their business leaders and policy makers
who focused on the world economy and
world markets and not on their domestic
objectives and priorities only)
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How can YOU do this?

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ECONOMIC SYSTEMS
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 ECONOMIC
SYSTEMS
• There are three types of
economic systems: capitalist,
socialist, and mixed.

• This classification is based

on the dominant method of
resource allocation: market
allocation, command
allocation, and mixed
allocation respectively. 10
 • It relies on
Market Allocation households and
System firms to allocate
resources.

• Consumers decide
what goods they
desire, and firms
determine how
much is made.
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Market Allocation • The market system
System is an economic
democracy where
people have the
option to buy
according to their
choice and budget.

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 Market Allocation
System
• The role of the state is to promote
competition and ensure consumer
protection.
• Philippine Standard (PS) Quality
And/or Safety Mark And Import
Commodity Clearance (ICC)
• Examples: North America, Western
Europe, Japan
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 Command Allocation
System

• The country or nation has broad

powers to serve the public interest
on what is appropriate based on
their judgment.
• These powers include deciding
which products to make and how
to make them.
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Command
Allocation
System

• Consumers are free to spend their money on

what is available but government planners
make decisions about what is produced, and
therefore, what is available.
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 Command Allocation
System
• There is little reliance on product
differentiation, advertising, and
promotion; distribution is handled by
the government to cut out
“exploitation” by intermediaries.
• Examples: China, Former Soviet
Union, India – most populous
countries
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 • It stems on the
principle that there
is no “pure market
or command
allocation systems
among the world’s
Mixed Allocation economies.”
System
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 Mixed Allocation
System

• It means all market systems

have a command sector and
all command systems have a
market sector which means
they are mixed.
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 Mixed Allocation
System
• The function of the
government in modern market
economies varies widely.
• Example, in Sweden, 2/3 of all
expenditures are controlled by
government, the economic
system is more “command”
than “market.”
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How can you describe the economic
system of the Philippines?
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 Learning Activity
• Several years from now, you will be included in the
professional workforce of the country. In line with that,
enlist/provide ways (minimum of 3) on how you will
contribute on the growth and development of the
Philippines in the following aspects: (10 pts each)
ASPECT OF MY EXPECTED CONTRIBUTIONS
DEVELOPMENT
1. Economic
2. Social
3. Physical